Harvia Oyj · OMXHEX:HARVIA

Harvia Oyj — Q1 2024 Earnings Presentation

21 slides from Harvia Oyj's earnings presentation, May 3, 2024

  1. Slide 1: Harvia Plc Interim Report January−March 2024

    HARVIA PLC INTERIM REPORT JANUARY−MARCH 2024 STRONG PROFITABILITY ― GOOD GROWTH OUTSIDE EUROPE Matias Järnefelt, CEO Ari Vesterinen, CFO 3 MAY 2024 Copyright © 2023 Harvia Oyj

  2. Slide 2: Highlights

    HIGHLIGHTS Good revenue growth outside Europe • Revenue increased by 2.3% to EUR 42.4 million, organic growth was 1.4%. Some impact from the political strikes in Finland • Strong sales development in both North America and APAC-MEA • Challenging market conditions in Northern Europe. Market stabiliza

  3. Slide 3: Q1 2024: Strong profitability continued

    Q1 2024: STRONG PROFITABILITY JK 24.loka.23: CONTINUED JK 01.helmi.24: look for a better picture More cheerful available? NA? • Revenue increased by 2.3% to EUR 42.4 million (41.4) compared to the first quarter of 2023. At comparable exchange rates, revenue increased by 2.7% to EUR 42.5 million. Org

  4. Slide 4: Systematic execution of strategy

    SYSTEMATIC EXECUTION OF STRATEGY Increasing the value of Geographical Productivity the average purchase expansion improvement • North America’s strong performance • Markets outside Europe key drivers for • Excellent operative performance from continued to support overall sauna Harvia’s sales perform

  5. Slide 5: Growth in North America and decline in Northern Europe reflected in revenue split

    Q1 2024: GROWTH IN NORTH AMERICA AND DECLINE IN NORTHERN EUROPE REFLECTED IN THE REVENUE SPLIT OF SALES REGIONS Harvia has adjusted its revenue reporting. Starting from the first quarter of 2024, Harvia reports its revenue as presented below. Revenue by sales region, % Revenue by product group, % 8%

  6. Slide 6: Strong growth North America and APAC & MEA, Continental Europe flat

    Q1 2024: STRONG GROWTH NORTH AMERICA AND APAC & MEA, CONTINENTAL EUROPE FLAT, DECLINE IN NORTHERN EUROPE Harvia has adjusted its revenue reporting. Starting from the first quarter of 2024, Harvia reports its revenue as presented below. Revenue by sales region 1–3/2023 vs 1–3/2024 EUR million 44 +0.6

  7. Slide 7: Growth in saunas and Scandinavian hot tubs as well as accessories and heater stones

    Q1 2024: GROWTH IN SAUNAS AND SCANDINAVIAN HOT TUBS AS WELL AS IN ACCESSORIES AND HEATER STONES Harvia has adjusted its revenue reporting. Starting from the first quarter of 2024, Harvia reports its revenue as presented below. Revenue by product group 1–3/2023 vs 1–3/2024 EUR million 43.0 -0.1 +0.8

  8. Slide 8: Revenue and adjusted operating profit

    REVENUE AND ADJUSTED OPERATING PROFIT Revenue Adjusted operating profit EUR million EUR million 55 50.8 14 13.2 50 46.8 46.0 46.2 46.5 12.1 11.8 42.4 12 11.1 11.1 45 41.4 39.6 39.4 10.1 40 37.4 38.1 10 9.3 9.5 35.8 8.8 34 35 8.0 7.9 8 7.6 30 6.9 25 6 20 15 4 10 2 5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2

  9. Slide 9: Products for all three sauna types and all cultures

    PRODUCTS FOR ALL THREE SAUNA TYPES AND ALL CULTURES Traditional sauna Steam Infrared Harvia’s diverse product offering covers all three sauna types and meets the needs of both private and professional customers Copyright © 2024 Harvia Oyj

  10. Slide 10: Harvia aims to be the leading player in the sauna and spa market

    HARVIA AIMS TO BE THE LEADING PLAYER IN THE SAUNA AND SPA MARKET Increasing the average Geographical expansion Productivity improvement purchase value Copyright © 2024 Harvia Oyj

  11. Slide 11: Financials

    FINANCIALS ARI VESTERINEN, CFO Copyright © 2024 Harvia Oyj

  12. Slide 12: Harvia's key figures in the reporting period

    HARVIA’S KEY FIGURES IN THE REPORTING PERIOD Million EUR 1-3/2024 1-3/2023 Change 1-12/2023 Revenue 42.4 41.4 2.3% 150.5 Adjusted EBITDA* 11.7 10.8 8.0% 39.9 % of revenue 27.6% 26.2% 26.5% Adjusted operating profit* 10.1 9.3 8.7% 33.7 % of revenue 23.8% 22.4% 22.4% Basic EPS (EUR) 0.40 0.34 19.4% 1.

  13. Slide 13: Operating free cash flow and cash conversion on a strong level

    OPERATING FREE CASH FLOW AND CASH CONVERSION ON A STRONG LEVEL Operating free cash flow and cash conversion* EUR million 16 15.1 15.5 160% 14 140% 11.6 11.1 12 120% 9.8 10 9.1 100% 8.3 8 80% 6 60% 4 40% 2.1 2 20% 0 0% 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 Operating free cash flow Cash conversion •

  14. Slide 14: Harvia's net debt continued to decline

    HARVIA’S NET DEBT CONTINUED TO DECLINE Net debt and leverage Net financial items EUR million EUR million 70 1.2 60.1 1.00 0.91 0.87 60 54.5 3 0.77 0.70 0.64 0.7 50 47.2 45.8 45.8 40.6 40 37.6 2 0.2 30 26.5 -0.3 20 1 -0.8 10 0 0 -1.05 -1.10 -1.3 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 22Q2 22Q3 22Q4

  15. Slide 15: Investments

    INVESTMENTS Investments in tangible and intangible assets EUR million 2.5 2.2 2.0 1.5 1.4 1.2 0.9 0.9 1.0 0.8 0.7 0.5 0.5 0.3 0.0 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 • During the review period, Harvia purchased 8.7 hectares of land around the production facility in West Virginia to secure s

  16. Slide 16: Harvia's shareholders (31 March 2024)

    HARVIA’S SHAREHOLDERS (31 MARCH 2024) Distribution by Segment Number of Shareholders 11.6% 0.03% (0.03%) 50,000 (10.0%) 46,011 45,036 43,945 42,883 45,000 41,328 40,000 37,830 33,879 35,000 16.2% (16.7%) 30,000 44.1% (39.5%) 25,000 20,000 15,000 13,551 10,000 5,249 5,000 3,248 0 31 Dec 31 Dec 31 Dec

  17. Slide 17: Harvia's long-term financial targets

    HARVIA’S LONG-TERM FINANCIAL TARGETS GROWTH PROFITABILITY LEVERAGE >5% >20% 1.5x–2.5x Average annual revenue Adjusted operating profit Net debt/adjusted EBITDA** growth margin* Harvia does not publish a short-term outlook. HARVIA’S  Regularly increasing dividend DIVIDEND POLICY  Bi-annual payout *

  18. Slide 18: Organizational and management changes

    ORGANIZATIONAL AND MANAGEMENT CHANGES • Harvia implemented the new organizational structure, effective from 1 January 2024. The new organization structure consists of four geographical sales regions, five Group functions and EOS Brands and Products. • Harvia announced on 26 January 2024 a key recrui

  19. Slide 19: Distribution of dividend EUR 0.68 per share

    DISTRIBUTION OF DIVIDEND EUR 0.68 PER SHARE • The Annual General Meeting held on 26 April 2024 approved the Board of Directors’ proposal that EUR 0.68 per share be paid as dividend and that the remainder of the distributable funds be transferred to shareholders’ equity. • The dividend is paid in two

  20. Slide 20: Q&A

    Q&A Copyright © 2024 Harvia Oyj

  21. Slide 21: Copyright © 2024 Harvia Oyj

    Copyright © 2024 Harvia Oyj

Harvia — Q1 2024 Earnings Presentation on 6ix