Slide 1: Half-Year Financial Report January–June 2022
HALF-YEAR FINANCIAL REPORT January–June 2022 25 August 2022 Alexander Rosenlew, CEO Saara Mäkelä, CFO Hanna Kukkonen, CMO
Slide 2: Content
Content 1. Introduction to Orthex 2. January–June 2022 in brief 3. Strategy 4. Sustainability 5. Financials 6. Q&A HALF-YEAR FINANCIAL REPORT | JANUARY–JUNE 2022 | 25 AUGUST 2022
Slide 3: A leading Nordic producer of everyday household goods
A leading Nordic producer of everyday household goods 7 sales offices 40 customer countries 3 factories (incl. warehouses) 90% own brands 300+ FTEs Sustainability focus
Slide 4: Mission to make everyday life easier
Mission to make everyday life easier HOME & YARD (6% of sales1)) STORAGE KITCHEN (64% of sales1)) (23% of sales1)) PLANT CARE (6% of sales1)) Functional and award-winning design Long-lasting high-quality products Forerunner in sustainability2) ~ 10% of sales from new launches Note: 1) Invoiced sales
Slide 5: January–June 2022 in brief
JANUARY–JUNE 2022 IN BRIEF Half-year financial report January–June 2022
Slide 6: January–June 2022: Cost inflation impacted profitability
January–June 2022 Cost inflation impacted profitability Second quarter of 2022 was impacted by customer uncertainty and very rapid cost inflation Cost inflation in raw materials, purchased goods, transportation and energy accelerated to record levels Continued rising costs and balancing betwee
Slide 7: Q2 2022: Net sales decreased by 5.3% and adjusted EBITA was EUR -0.2 million
Q2 2022: Net sales decreased by 5.3% and adjusted EBITA was EUR -0.2 million Net Sales Net sales decreased by 5.3% to EUR 21.0 million (22.2) Invoiced sales decreased by 4.5% and totalled EUR 21.5 million (22.5) Adjusted EBITA Adjusted EBITA was EUR -0.2 million (2.6) Adjusted EBITA margin w
Slide 8: H1 2022: Net sales decreased by 5.1% and adjusted EBITA was EUR 1.6 million
H1 2022: Net sales decreased by 5.1% and adjusted EBITA was EUR 1.6 million Net Sales Net sales decreased by 5.1% to EUR 41.6 million (43.8) Invoiced sales decreased by 4.4% and totalled EUR 43.0 million (45.0) Adjusted EBITA Adjusted EBITA was EUR 1.6 million (5.9) Adjusted EBITA margin was
Slide 9: Invoiced sales by Geography
Invoiced sales by Geography Invoiced sales by geography quarterly, EUR million Invoiced sales by geography YTD, EUR million 20 18.5 40 36.4 17.5 35.3 18 35 16 30 14 12 25 10 20 8 15 6 3.4 3.5 10 7.2 7.0 4 2 0.6 5 1.4 0.5 0.8 0 0 Nordics Rest of Europe Rest of the world Nordics Rest of Europe Rest of
Slide 10: Invoiced sales by Product category
Invoiced sales by Product category Invoiced sales by product category quarterly, EUR million Invoiced sales by product category YTD, EUR million 16 30 28.4 13.6 25.6 14 12.4 25 12 20 10 8 15 6 5.0 5.3 9.5 10.2 10 4 2.2 1.9 1.9 4.0 4.1 1.7 5 3.1 3.1 2 0 0 Storage Kitchen Plant Care Home & Yard Storag
Slide 11: Strategy
STRATEGY Half-year financial report January–June 2022
Slide 12: Key objectives in growth strategy: number one storage brand in Europe
Orthex’s key objectives in its growth strategy are to become the number one brand in the Storage product category in Europe, and strengthen its position as a leading household company in the Nordics HALF-YEAR FINANCIAL REPORT | JANUARY–JUNE 2022 | 25 AUGUST 2022
Slide 13: Clear growth strategy to deliver objectives
Clear growth strategy to deliver objectives 4 3 Market #1 storage consolidation brand in 2 Europe 1 Accelerating Accelerating the online retail growth in the distribution export markets channel through key ~€89m Solid actions to account approach ~€76m keep winning and new customer Leading acquisitio
Slide 14: Welcome Alex Nielsen
Welcome Alex Nielsen Sales Director, Europe and International Markets, and management team member as of 1 September 2022 Born 1972 Danish citizen Business diploma in Marketing, HD(A) Work experience • Chief Commercial Officer at A. Espersen A/S between 2020 • Director at Copenhagen Airport between 2
Slide 15: Sustainability
SUSTAINABILITY Half-year financial report January–June 2022
Slide 16: Sustainability
Sustainability Materiality assessment Orthex conducted a sustainability materiality assessment to align sustainability work with stakeholders’ expectations More than 500 replies from customers, employees, investors, suppliers and consumers Orthex’s sustainability efforts rated very high (4.35/
Slide 17: Environment
Orthex is focusing on the right sustainability issues – all aspects were rated high Average on scale of 1-5 Orthex promotes recycling of plastic 4.75 Environment Orthex uses sustainable raw materials (bio-based and recycled plastic) 4.53 Orthex reduces production scrap 4.52 Orthex reduces carbon emi
Slide 18: Financials
FINANCIALS Half-year financial report January–June 2022
Slide 19: Net Sales & Profitability
Net Sales & Profitability Net sales quarterly, EUR million Adjusted EBITA quarterly, EUR million 25 4.5 23.1 4.0 23 22.2 21.8 4.0 3.8 21.6 21.6 20.6 21.0 21 20.3 3.3 3.3 3.5 3.2 19 17.7 3.0 2.6 17 16.3 2020 2.5 2020 15 1.9 2021 2.0 1.8 1.8 2021 13 2022 1.5 2022 11 1.0 9 0.5 7 0.0 5 Q1 Q2 Q3 Q4 Q1 Q2
Slide 20: Development of raw material price indexes
Development of raw material price indexes Raw material index prices 2,500€ Plastic raw material index EUR/t Propylene (C3) Contract EUR/t Crude oil Opec EUR/t • Currently no availability issues 2,000€ • Energy prices in Europe at record high levels due to sanctions on Russian oil and reduced gas del
Slide 21: Investments & Net Debt
Investments & Net Debt Investments in tangible and intangible assets, EUR million Net debt, EUR million & Leverage 1.8 1.7 45 3.0 1.6 40 2.6 2.5 1.4 35 2.3 1.1 1.1 1.2 30 2.0 1.8 1.0 25 1.7 0.9 1.5 1.6 Net debt 0.8 1.5 1.5 0.8 20 Leverage 0.6 0.5 15 1.0 0.4 10 0.5 0.2 5 - - - Q1 2021 Q2 2021 Q3 2021
Slide 22: Long-term financial targets
Long-term financial targets Target Description Latest reported SALES Total growth of >5% “An over time annual organic net sales growth -5.1% total to exceed 5 per cent on a Group level, and 10 GROWTH Outside Nordics >10% per cent outside the Nordic region” -9.4% outside Nordics “Improving EBITA marg
Slide 23: Summary
SUMMARY EXCEPTIONALLY HIGH CUSTOMER PURCHASING COST INFLATION RAW MATERIAL PRICES BEHAVIOUR
Slide 24: Q&A
Q&A www.investors.orthexgroup.com
Slide 25: Key Figures
Key Figures EUR million 4–6/2022 4–6/2021 Change 1–6/2022 1–6/2021 Change 1–12/2021 Invoiced sales 21.5 22.5 -4.5% 43.0 45.0 -4.4% 90.6 Net sales 21.0 22.2 -5.3% 41.6 43.8 -5.1% 88.7 Gross margin 3.1 5.6 -44.4% 8.0 12.3 -35.1% 23.2 Gross margin, % 14.7% 25.1% 19.2% 28.1% 26.2% EBITDA 0.6 3.3 -80.7%
Slide 26: Orthex – Practical is Beautiful
orthex’ Practical is Beautiful