Somero Enterprises, Inc. · LSE:SOM
Somero Enterprises — H1 2020 Earnings Presentation
24 slides from Somero Enterprises's earnings presentation, September 2020
Slide 1: 2020 Interim Results
2020 INTERIM RESULTS September 2020
Slide 2: COVID-19
COVID-19 • The pandemic created significant uncertainty and led to shelter-in-place restrictions, slowing the pace of construction projects and in turn, slowing the pace of our trading • We quickly implemented a plan and successfully delivered against its four main objectives: - To protect the healt
Slide 3: H1 2020 Highlights
H1 2020 HIGHLIGHTS • US$ 35.3m in H1 2020 revenues (H1 2019: US$ 39.0m) despite disruption from COVID- 19 pandemic • Cost reductions & cash management drove healthy profits and cash flows in H1 • Investments for long-term growth continue made possible by good cash flow & a strong balance sheet • Res
Slide 4: 2020 H1 Results
2020 H1 RESULTS 3 2020 Interim Results
Slide 5: Sales by Territory
SALES BY TERRITORY US$ MILLIONS H1 2020 H1 2019 CHANGE $ CHANGE % North America $ 27.8 $ 27.2 $ 0.6 2% Europe 4.1 5.5 (1.4) -25% China 1.8 2.5 (0.7) -28% Middle East 0.2 0.2 - - Latin America 0.2 0.7 (0.5) -71% Rest of World (1) 1.2 2.9 (1.7) -59% TOTAL $ 35.3 $ 39.0 $ (3.7) -9% Notes: 1. ROW includ
Slide 6: Sales by Product
SALES BY PRODUCT US$ MILLIONS H1 2020 H1 2019 CHANGE $ CHANGE % Boomed screeds(1) $ 11.6 $ 16.2 $ (4.6) -28% Ride-on screeds(2) 6.7 7.8 (1.1) -14% Remanufactured machines 2.7 1.9 0.8 42% 3-D Profiler System® 3.5 2.4 1.1 46% Somero Line Dragon® 1.7 1.1 0.6 55% SkyScreed® 0.3 0.2 0.1 50% Other(3) 8.8
Slide 7: Financial Summary
FINANCIAL SUMMARY US$ MILLIONS (EXCEPT PER SHARE DATA) H1 2020 H1 2019 CHANGE $ CHANGE % Revenue $ 35.3 $ 39.0 $ (3.7) -9% Adjusted EBITDA (1,2) 8.7 11.2 (2.5) -22% Adjusted EBITDA margin (1,2) 25% 29% - -400bps Profits before tax 7.5 10.5 (3.0) -29% Adjusted net income (1,3) 5.8 8.0 (2.2) -28% Dilu
Slide 8: Operating Results
OPERATING RESULTS US$ MILLIONS H1 2020 H1 2019 Highlights: Revenue $ 35.3 $ 39.0 • Gross margin of 54.7% modestly Gross profit 19.3 21.9 down from 56.0% in H1 2019 due in part to the operational impact of Operating expenses: lower volume and unfavorable mix from the higher % of Selling, marketing &
Slide 9: Financial Position
FINANCIAL POSITION JUNE 30, DECEMBER 31, US$ MILLIONS 2020 2019 Highlights: Cash $ 28.9 $ 23.8 Accounts receivable, net 8.8 11.9 • Cash increased by US$ 5.1m from year-end 2019 due to solid Inventory 13.8 12.3 operating cash flows Prepaid & other 1.5 1.3 • Accounts receivable decreased 53.0 49.3 US$
Slide 10: Cash Flows
CASH FLOWS US$ MILLIONS H1 2020 H1 2019 $ 5.8 $ 8.1 Highlights: Net income Adjustments to reconcile to cash provided by 1.1 0.7 • Cash flow from operations operating activities increased by US$ 2.6m from H1 Working capital changes 0.1 (4.4) 2019 due to net positive working capital impact driven by s
Slide 11: October Dividend Payment
OCTOBER DIVIDEND PAYMENT $2.3 million $4.4 million 2019 Final Ordinary: $0.130 per share 2019 Supplemental: $0.077 per share $14.0 2020 Interim Ordinary: $0.040 per share million Total October Payment: $0.247 per share $7.3 million 10.5 2019 2019 2020 Ordinary Total October Final Ordinary Supplement
Slide 12: Strategy Update & Outlook
STRATEGY UPDATE & OUTLOOK 11 2020 Interim Results
Slide 13: Growth Strategy
GROWTH STRATEGY Product innovation Somero’s vision is for our innovative technology to be used wherever a ready- mix truck is discharging concrete for a horizontal concrete slab. This represents a vast opportunity. Our current core products are sold into the “slab-on-grade” segment of the horizontal
Slide 14: SkyScreed 36
SKYSCREED® 36 Somero took the next step in the journey to penetrate the structural high-rise market by introducing the SkyScreed® 36. The SkyScreed® 36 allows the operator to screed an additional 1,000 square feet per placement, reducing by almost half the pick placements required compared to SkyS
Slide 15: SRS-4, Somero Broom + Cure
SRS-4, SOMERO BROOM + CURETM The SRS-4 is the lightest weight, easiest to transport compact boomed laser screed machine Somero has ever offered. At just 4,440 lbs. with a compact head design, the machine is easily transported on a trailer making this an attractive option for hard to reach job-site
Slide 16: Outlook
OUTLOOK • In the US, we are confident in the health of the non-residential construction market supported by extended project backlogs reported by our customers, and in demand for our new products • In Europe, we are encouraged by signs of improvement, hopeful market activity continues to normalize,
Slide 17: Business Model
BUSINESS MODEL 16 2020 Interim Results
Slide 18: Our world-class products and services allow contractors to complete every installation faster, flatter and with fewer people
Our world-class products and services allow contractors to complete every installation faster, flatter and with fewer people. 17 Presentation Title
Slide 19: Our Mission
OUR MISSION Why? How? What? For every Somero employee the How we pursue our mission makes We provide equipment with answer is clear. We work hard to us unique. unsurpassed quality and deliver world-class products and Somero’s business is far more than performance supported by services because we’re
Slide 20: Multi-Faceted Value Proposition
OUR MODEL What makes us different? The use of Somero equipment delivers MULTI-FACETED VALUE PROPOSITION significant benefits to customers and building owners and end-users, a true win-win proposition. Somero Customers: Concrete contractors and self- Innovative product leadership performing general c
Slide 21: Our Products and Services
OUR PRODUCTS AND SERVICES MACHINE APPLICATIONS STATIONARY SCREEDS: SkyScreed® 25 Allows screeding on structural high-rise and slab-on grade applications SkyScreed® 36 SkyScreed® 25 SkyScreed® 36 BOOMED MACHINES: S-22EZ S-15R (25,000-50,000+ sq. ft. placements) warehouses, S-10A manufacturing assembl
Slide 22: Appendix
APPENDIX 21 2020 Interim Results
Slide 23: Historical Results
HISTORICAL RESULTS YEARS ENDED DECEMBER 31, US$ Millions (except per share data) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Revenue 66.4 51.9 24.2 21.0 21.9 32.2 45.1 59.3 70.2 79.4 85.6 94.0 89.3 Revenue growth 19% -22% -53% -13% 4% 47% 40% 32% 18% 13% 8% 10% -5% Cost of sales
Slide 24: Thank You
ENTERPRISES, INC THANK YOU