Fgi Industries Ltd. · NASDAQ:FGI
Fgi Industries — Investor Presentation (January 2022)
26 slides from Fgi Industries's investor presentation, January 2022
Slide 1: Investor Presentation January 2022
Investor Presentation January 2022
Slide 2: Disclaimer
DISCLAIMER FGI Industries Ltd. (the “Company” or the “Issuer”) has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Issue
Slide 3: Disclaimer: Market, Industry and Other Data
DISCLAIMER MARKET, INDUSTRY AND OTHER DATA This presentation includes market and industry data and forecasts that the Company has developed from independent research reports, publicly available information, various industry publications, other published industry sources or the Company’s internal dat
Slide 4: About Us
ABOUT US FGI is a leading “B-to-B” global supplier of Kitchen & Bath products with an industry-leading reputation for Innovation, Quality & Service developed over 30 years in conjunction with our parent company, Foremost Groups Ltd. SANITARYWARE - 64% R E P A I R / R E M O D E L - 83% (T OI L ETS &
Slide 5: Executive Management Team
EXECUTIVE MANAGEMENT TEAM JOHN S. CHEN John Chen is the Executive Chairman of FGI Industries. Prior to his election, Mr. Chen spent the past 2 years serving as Executive Vice EXECUTIVE CHAIRMAN President of Corporate Development for Foremost Groups, Ltd. Prior to that he spent 11 years in the invest
Slide 6: Financial Milestones
FINANCIAL MILESTONES FGI has a demonstrated history of organic growth, profitability and financial strength despite facing significant macro-economic challenges (tariff wars, COVID-19) | $170MM+ ANNUAL REVENUE BUSINESS | $5.6MM ADJUSTED NET INCOME $173.8MM-$177.8MM in revenue expected In the first n
Slide 7: Global Business Footprint
GLOBAL BUSINESS FOOTPRINT UNITED STATES & CANADA | EAST HANOVER, NEW JERSEY US Operations & Warehouse | HOBART, INDIANA Showerdoor Production Center Warehouse & Distribution | WOODLAND, CALIFOR NI A Warehouse | TORONTO, CANADA Canada Operations & Warehouse EUROPE | DUSSELDORF, GERMANY GLOBAL MANUFAC
Slide 8: Large & Global Customer Base
LARGE & GLOBAL CUSTOMER BASE USA & CANADA EU E-COMME RCE 8
Slide 9: Diversified Product and Market Segments
DIVERSIFIED PRODUCT AND MARKET SEGMENTS FGI BRANDS COMPETITORS BEST BETTER By By By GOOD By 9
Slide 10: Well-Positioned in the $100B+ Global Kitchen & Bath Market
WELL-POSITIONED IN THE $ 100B+ GLOBAL KITCHEN & BATH MARKET HIGH HIGHER QUALITY MID-TO-HIGHER PRICE POINTS BET TER SUPPLY CHAIN BET TER OPERATIONS FRAGMENTED SUPPLIERS 60%+ OF INDUSTRY LOW HIGH MORE POTENTIAL PRODUCT -CATEGORY OFFERINGS HIGHER GROWTH POTENTIAL 10
Slide 11: Durable Competitive Advantages
DURABLE COMPETITIVE ADVANTAGES | A DIVERSIFIED MIX OF PRODUCTS, MARKET SEGMENTS AND SALES CHANNELS • Wide range of price points with a focus on “mid plus” segment • Numerous selling channels, 000’s of different SKU sets | TRADITION OF STRONG INNOVATION • Leading ‘on-trend’ products developed through
Slide 12: Large Addressable Market with GDP+ Growth
LARGE ADDRESSABLE MARKET WITH GDP+ GROWTH SUMMARY EST. 2021 RETAIL MARKET VALUE FOR THE KITCHEN AND BATH MARKETS | The addressable market of FGI’s current product portfolio represents less than 50% of the global Kitchen & Bath product market TOTAL KITCHEN & BATH (with over $150 billion of TAM) $158.
Slide 13: Repair and Remodel Markets Provide Stable Growth
REPAIR AND REMODEL MARKETS PROVIDE STABLE GROWTH CONSISTENT YEAR-OVER-YEAR GROWTH IN R&R THE KITCHEN AND BATHROOM RANK MORE IMPORTANT THAN OTHER AREAS OF OUTSIDE OF EXTREME RECESSIONS YEARS THE HOME – THE PANDEMIC HAS REINFORCED THIS 70% 70% SHARE OF HOMEOWNERS INDICATING AREA OF HOME HISTORICAL R&R
Slide 14: Current Global Supply Chain Pressures
CURRENT GLOBAL SUPPLY CHAIN PRESSURES SHIPPING TIMES LCL CHINA TO US 75 70 | Global transit times have faced unprecedented pressures in 2021 65 (COVID-19 in factories, shipping delays, etc) 60 55 | Container shipping prices along with raw materials have 50 skyrocketed over the past year 45 | Discuss
Slide 15: Key Drivers of Long-Term Shareholder Value
KEY DRIVERS OF LONG-TERM SHAREHOLDER VALUE Grow brands, product categories Re-invest in core businesses with and sales channels evergreen expansion opportunities Focus on higher incremental Selective bolt-on acquisitions margin sales opportunities Excess free cashflow for VALUE CREATION dividends or
Slide 16: BPC Strategy: Brands
BPC STRATEGY: BRANDS BATH KITCHEN OWNED BRANDS HAVE GONE FROM 0% TO OVER 39% OF SALES IN 11 YEARS BETTER GROSS | Brands have higher gross margins (better pricing) MARGIN | Improving the quality, not just volume of brands | Multi-year brand development plan across multiple product segments STRONG PRO
Slide 17: BPC Strategy: New Product Categories
BPC STRATEGY: NEW PRODUCT CATEGORIES 2020 REVENUE INTELLIGENT TOILETS FREE-STANDING TUBS AVENUE: MADISON EXISTING P RO D U C TS - 75% NEW P RO D U C TS - 25% JETCOAT: SHOWER WALL FOREMOST: BRANTLEY CONTRAC: HYGIENIC SINK 17
Slide 18: BPC Strategy: E-Commerce Sales & Analytics Strategy
BPC STRATEGY: E-COMMERCE SALES & ANALYTICS STRATEGY | 21% of group sales in 2020, we expect to continue increasing organically the share of e-commerce as a percentage of total sales in future fiscal years. HOME PRODUCT CATEGORY | Establishing “key vendor” reputation with leading ONLINE - PENETRATION
Slide 19: BPC Strategy: Commercial & Geographic Sales Channels
BPC STRATEGY: COMMERCIAL & GEOGRAPHIC SALES CHANNELS COMMERCIAL GEOGRAPHY | Traditionally a mass-retail B-to-B business, FGI started to invest in growing local | Look for trusted international partners commercial channel partners in 2005 (catering to hospitality, builders, | Combine core competencie
Slide 20: Enhanced Financial Performance
ENHANCED FINANCIAL PERFORMANCE | LOW-CAPEX NEEDS FGI operates as a relatively capital-lite business model | EFFICIENT WORKING CAPITAL PLANNING We have a lean inventory management system that has seen through recent challenges (tariffs, COVID-19) | CONSERVATIVE BALANCE SHEET We focus on liquidity and
Slide 21: "Bolt-On" Strategy
“BOLT-ON” STRATEGY 1. MARKET EXAMPLE: SHOWER BUSINESSES | Thousands of small suppliers | Hired shower-door team from competitor | Evergreen product lines, categories and geographies | Grew the business to a $3.4mm Gross Profit business in short time | Look for good teams and product lines, not turna
Slide 22: Financial Summary
FINANCIAL SUMMARY (USD) 2019 2020 9mos 2020 9mos 2021 REVENUES 126,282,212 134,827,701 99,319,193 129,752,437 GROSS PROFIT 25,439,069 28,404,640 21,300,641 24,634,970 GROSS MARGINS 20.1% 21.2% 21.4% 19.0% SELLING AND DISTRIBUTION 14,917.601 15,487,306 11,352,436 12,635,857 GENERAL AND ADMINISTRATIVE
Slide 23: Financial Summary (continued)
FINANCIAL SUMMARY (continued) USE OF NON-GAAP FINANCIAL MEASURES In assessing the performance of our business, management utilizes a variety of financial and performance measures to assess our business performance, including to evaluate our ability to convert earnings from our operational performanc
Slide 24: Recent Developments
RECENT DEVELOPMENTS Total revenue for 2021 is expected to be between $173.8 million and (USD MM) 2019 2020 2021 $177.8 million, up from $134.8 million in 2020. REVENUES $126.3 $134.8 $173.8-177.8 For the quarter ending December 31, 2021, FGI expects the following based on currently available informa
Slide 25: Key Investment Characteristics
KEY INVESTMENT CHARACTERISTICS TRUSTED GLOBAL STRONG ORGANIC ENHANCED “SPIN-OFF” VALUE-ACCRETIVE STRONG SUPPLIER GROWTH PROFITABILITY BOLT-ONS SHAREHOLDER ALIGNMENT We are global, diversified, and We pursue a “BPC” strategy: focus As a carve-out division from a We will engage in selective High insid
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