Hayward Holdings, Inc. · NYSE:HAYW
Hayward — Q1 2021 Earnings Presentation
17 slides from Hayward's earnings presentation, May 5, 2021
Slide 1: First Quarter 2021 Earnings
First Quarter 2021 Earnings May 5, 2021 © 2021 Hayward Holdings, Inc. 1
Slide 2: First Quarter 2021 Earnings Call
First Quarter 2021 Earnings Call Kevin Holleran President and Chief Executive Officer Eifion Jones Senior Vice President and Chief Financial Officer NYSE: HAYW © 2021 Hayward Holdings, Inc. 2
Slide 3: Cautionary Statement
Cautionary Statement SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements and information relating to the Company that are based on the beliefs of management as well as assumptions made by, and information currently available to management. These st
Slide 4: First Quarter 2021 Highlights
First Quarter 2021 Highlights 96% YoY1 Record Net Sales of $334 million, LTM2 >$1 billion Net Sales growth +340bps YoY Gross Profit of $159.9 million, 47.8% of Net Sales Gross Profit Margin expansion +200% YoY Adjusted EBITDA of $107 million, 32.1% of Net Sales Adjusted EBITDA growth 3.3x Net Debt /
Slide 5: 2021 Financial Outlook
2021 Financial Outlook ✓ Net Sales growth 40% to 45% YoY Full Year ✓ Adjusted EBITDA1 of $360 to $390 million; up 55% to 68% YoY Outlook Reflects: ✓ Strong Q1 results and increased visibility into 2021 with robust backlog ✓ Continued broad based strength across products ✓ Market demand to remain hea
Slide 6: What Makes Us Different?
What Makes Us Different? Operational Excellence ✓ Increased Q1 production >75% YoY Innovative, ESG Product Focus ✓ Attractive new solutions – grows the AquaRite Salt Chlorine Generators market and Hayward share OmniLogic Automation Variable Speed Pumps Channel Presence ✓ Broad, longstanding relation
Slide 7: Hayward at a Glance
Hayward at a Glance Net Sales by Net Sales by End Segment Market North America Residential Pool 81% 93% ✓ Market leader in rapidly growing outdoor living space Commercial Pool Europe & Rest ✓ Pure-play pool equipment provider 3% of World Industrial 19% Flow Control 4% Net Sales by Net Sales by Type
Slide 8: Acceleration of Strong Secular Trends Support Long-Term Growth
Acceleration of Strong Secular Trends Support Long-Term Growth Market Drivers Repair & Replace Upgrades New Construction & Remodel Inflation Trend for outdoor living is accelerating historical market growth drivers of +6% to +8% to new long-term levels © 2021 Hayward Holdings, Inc. 8
Slide 9: Q1 Financial Overview
Q1 Financial Overview Net Sales ($mm) Adjusted EBITDA ($mm) Margin (% of net sales) Strong Sales Growth Demand increased across all end markets, expanded 107 334 production capacity 32% +200% +96% YoY YoY Significant Margin Expansion Improvement of 340 bps in gross profit margin & 1,110 bps in AEBIT
Slide 10: North America Segment Q1 Overview
North America Segment Q1 Overview $272 million ✓ Robust opening order file with continued in-quarter demand Net Sales +105% YoY ✓ Increased production capacity to support demand 49.6% ✓ Driven by volume leverage and price realization Gross Profit Margin +350bps YoY ✓ Strategic buying actions mitigat
Slide 11: Europe & ROW Q1 Segment Overview
Europe & ROW Q1 Segment Overview ✓ Sales driven by strong demand and favorable FX impact $63 million Net Sales +66% YoY ✓ Focused go-to-market model driving European growth ✓ Favorable product mix from sanitization and heat pumps 40.1% Gross Profit Margin ✓ Price realization +200bps YoY ✓ Production
Slide 12: Core Values Drive Commitment to ESG
Core Values Drive Commitment to ESG © 2021 Hayward Holdings, Inc. 12
Slide 13: New Product Innovation Focus on ESG
New Product Innovation Focus on ESG 90% Reduction in energy use 1.1bn kWh saved from variable speed pumps 50% Reduction in chlorine use 81m lbs Less chemical chlorine by salt/UV/ozone Pool Pad Equipment: In and Around the Pool: 16% Variable Speed Pumps Robotic Cleaners Reduction in water use Omni Co
Slide 14: Hayward's Value Proposition
Hayward’s Value Proposition Pure Play Market Leader in Growing Outdoor Living Sector IoT Enabled and Environmentally Conscious Product Innovation Competitive Moat - Scale, Brand, and Large Installed Base Recurring Sales Model Provides Stable Growth Growth Initiatives Creating Incremental Value © 202
Slide 15: Appendix
Appendix Non-GAAP Reconciliations © 2021 Hayward Holdings, Inc. 15
Slide 16: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation © 2021 Hayward Holdings, Inc. 16
Slide 17: Adjusted Segment Income Reconciliation
Adjusted Segment Income Reconciliation © 2021 Hayward Holdings, Inc. 17