Slide 1: Your perfect pool experience
Your perfect pool experience Strategic Plan – Investor Relations May 2019
Slide 2: Disclaimer
2 Disclaimer This document is for information purposes only and does not constitute an offer to sell, exchange or buy, or an invitation to make offers to buy, securities issued by any of the companies mentioned. This financial information has been prepared by Fluidra, S.A. ("Fluidra", and with all
Slide 3: The new Fluidra: merger of two successful companies
3 The new Fluidra: merger of two successful companies Overview Highly profitable and cash generating business (In €m) • Global leader in pool equipment and wellness solutions 10% PF SALES CAGR • Innovative, user-focused provider of highly engineered 15% PF EBITDA CAGR products and solutions 1,127 1,
Slide 4: Key investment highlights
4 Key investment highlights 1 Structurally attractive industry that grows ~2x GDP • New pool construction below historical average feeds ever growing installed base • Large installed base drives annuity-like aftermarket • Double engine model: growth & resilience 2 Global leader in the pool and welln
Slide 5: Structurally attractive industry
Structurally attractive industry
Slide 6: Global pool market opportunity of € 7.1 bn
6 Global pool market opportunity of € 7.1 bn North America and Europe represent 79% Fluidra leads market with 18% share and room to grow Rest of World Fluidra Europe South America 18% Other Global 16% Equipment 30% Players 5% 22% Global Pool Global Pool Market Market € 7.1 bn 36% € 7.1 bn Top 10 12%
Slide 7: Highly attractive market with two growth drivers
1,500 Thousands 1,400 7 1,300 Highly attractive market with two growth drivers 1,200 1,100 1,000 900 Life of pool & renewal cycle New 800 build growing but still well below pre-crisis levels (Varies depending on use and construction type) 700 New Pools 600 Thousands 500 1,500 400 Thousands Year 1 1,
Slide 8: Growing & resilient market with strong fundamentals
8 Growing & resilient market with strong fundamentals Growing market Estimated market growth range Market size (€, bn) CAGR: c. 5% Average Ticket ~1.5–2.5% Growth ~ 7% 7.1 Installed Annual 6.2 Pool Base Growth ~1.5–2% = ~ 4 – 6% = Range of Growth Long Term Average New Build ~1–1.5% ~ 3% Growth 2014
Slide 9: Global leader in the pool and wellness industry
Global leader in the pool and wellness industry
Slide 10: Global leadership leveraging a unique and powerful platform
10 Global leadership leveraging a unique and powerful platform Broadest geographic footprint with business model adapted to each market Expansive product offering drives growth and expands addressable market Globally recognized brands allow for market segmentation and channel optimization Core compe
Slide 11: Broadest geographic footprint adapted to local market
11 Broadest geographic footprint adapted to local market • Global market leader with access to all major pool markets • Customer & commercial approach by market • Large growth opportunity in the US, the world’s largest market Sales by geography (PF FY2017A) LatAm 1% Rest of World 20% Europe 49% #1 T
Slide 12: Expansive product offering drives growth
12 Expansive product offering drives growth Pool Ladders and Cleaning Efficient Lighting Pool Cleaners Internet of Things Fire Features Filters Valves Showers Accessories Energy Efficient Energy Efficient Pool Covers Pumps Water Care Efficient Heaters White Goods Disinfection 75.000+ items from entr
Slide 13: Globally recognized, iconic brands allow for channel optimization
13 Globally recognized, iconic brands allow for channel optimization Pool Pro Omni-channel Product Specific Mass Market / Internet Platform 6 out of 10 most iconic industry brands
Slide 14: Core competency in product development drives future growth
14 Core competency in product development drives future growth Excellence in innovation Cleaners R&D capability with >200 engineers Pumps & and >1,100 patents Filters Robust product road map Heating New – Improving quality and user experience products Water Care – Technology focused on increasin
Slide 15: Proven track record and best practices to deliver Sales and Operational Excellence
15 Proven track record and best practices to deliver Sales and Operational Excellence Operations Sales • Quality as a differentiator • Strong customer relationships through customer • Improve service level via planning best practices and collaboration and adaptation improved manufacturing footprint
Slide 16: World class team of industry and functional experts
16 World class team of industry and functional experts Over 30 years of experience in global consumer and industrial Over 25 years of experience in the sector products industries Fluidra’s CEO since 2006 and Executive Chairman since 2016 Previously spent over 20 years at Stanley Black & Decker in va
Slide 17: Four strategic objectives that deliver value through 2022
17 Four strategic objectives that deliver value through 2022 Great operating Product category expansion and financial performance Accelerate growth After market penetration in North America New product pipeline and connected pools Sales Growth 5 – 8% EBITDA Margin ~21% Leverage platform in C
Slide 18: Accelerate growth in North America
Accelerate growth in North America
Slide 19: North America: Market & competitors
19 North America: Market & competitors Fluidra has 10% share of €3.5bn Highlights Fluidra 10% • Aging installed base Other Large Equipment 41% North America Players • Higher prices and better technology on pool pads Pool Market 32% € 3.5 bn Others • Traditional fragmented dealer base 17% Large Chemi
Slide 20: North America is a growing and resilient market
20 North America is a growing and resilient market Leading player in key residential pool categories Strong market growth Others Fluidra Chemicals Residential Pool CAGR: c. 5% 21% 37% 20% Pool Where Pool Market 53% we Market € 3.5 bn Compete € 1.8bn Commercial Pool 10% 59% Other Large 2014 2017 Equi
Slide 21: North America: Residential channel structure
21 North America: Residential channel structure Customers / Manufacturers Distribution Prescribers Users Pool builders Maintenance, and servicers Remodelers Homeowner Other distributors Retailers Niche OEMs LC suppliers Parts suppliers Homebuilders Dealer loyalty On time in full delivery Ease of use
Slide 22: North America: Strategies to accelerate growth
22 North America: Strategies to accelerate growth Prescriber loyalty Aftermarket share growth Product expansion Connected pools (IoT)
Slide 23: Leverage platform for Europe and Southern Hemisphere
Leverage platform for Europe and Southern Hemisphere
Slide 24: Europe & Southern Hemisphere: Developed market & competition
24 Europe & Southern Hemisphere: Developed market & competition Fluidra has 28% share of €2.9bn market Highlights Fluidra • Mainly residential pools and a huge New Build at 2009 volumes base of professional customers 28% 17% • Commercial market well developed ESA Developed Pool Market by existing cu
Slide 25: Developed markets: Vertically integrated & omni-channel approach
25 Developed markets: Vertically integrated & omni-channel approach Customers / Manufacturers Distribution Prescribers Users Pool builders Own distribution Maintenance, and servicers Homeowner Other Manufacturers Other Remodelers distributors Niche OEMs Retailers Homebuilders Modern channel Capillar
Slide 26: Developed markets: Strategies for profitable growth
26 Developed markets: Strategies for profitable growth Gain Capillarity: Cash & Carry expansion Gain penetration: Sales and customer management Improve customer engagement: Brand and channel management Capture synergies: Integration
Slide 27: Increase penetration of commercial pools in emerging markets
Increase penetration of commercial pools in emerging markets
Slide 28: Emerging: Market & competition
28 Emerging: Market & competition Fluidra has a 15% share on a €0.7bn Highlights Fluidra • Market based on commercial pools 15% Other Large Equipment • Focus on new construction ESA Emerging 12% Players Pool Market € 0.7 bn • Highly fragmented markets Others 73% • Tourism is the major driver: HMAC C
Slide 29: Emerging markets: Push and pull combined strategy
29 Emerging markets: Push and pull combined strategy Customers Final Engineering Manufacturers Distribution Prescribers customers Prescribers Pool builders Developer Own distribution Maintenance, and servicers Contractor PULL Other Other Remodelers Other Manufacturers distributors Engineering Operat
Slide 30: Emerging markets: Strategies for profitable growth
30 Emerging markets: Strategies for profitable growth Broaden commercial pool product range Expand projects globally
Slide 31: Compelling equity story with strong value creation
Compelling equity story with strong value creation
Slide 32: Compelling equity story with strong value creation
32 Compelling equity story with strong value creation 1 Strong sales growth and a resilient business model 2 Significant cost synergies 3 Compelling margin improvement 4 Strong cash flow generation 5 Solid balance sheet with currency hedge 6 Improving Return On Capital Employed
Slide 33: Strong sales growth and a resilient business model
33 1 Strong sales growth and a resilient business model Strong growth outlook… …that is highly resilient… 5–8% 1–2% 8% New Build sales over all-time low 1–1.5% 26% New Build 1.5 –2.5% sales at all-time low Combined Business is 1.5 –2% 92% Resilient Sales Installed Base Growth Average Ticket New buil
Slide 34: Significant cost synergies to be fully implemented by 2021
34 2 Significant cost synergies to be fully implemented by 2021 Significant operations cost synergies … Synergies to be fully implemented by 2021 (€mn) Manufacturing consolidation Procurement opportunities Over 50% of Cost 35.0 €23 Synergies Realized by End 33.9 1.1 Optimization of logistics o
Slide 35: Significant margin improvement
35 3 Significant margin improvement EBITDA margin evolution Delivers strong net income growth (€mn) 60 bps 21% 140 bps 200 bps 160 17% 400bps of total improvement 2017 PF Cost Synergies Lean & Value Initiatives Operating Leverage 2022E EBITDA evolution (€mn) 351 199 2017 PF 2018E 2019E 2020E 2
Slide 36: Strong cash flow generation to fund value accretive initiatives
36 4 Strong cash flow generation to fund value accretive initiatives … will result in strong deleveraging and Significant free cash flow(1) generation… dividend distribution (€mn) NFD / EBITDA 247 3.5x 3.3x 152 2.8x 2.5x <2x 2017 PF 2018E 2019E 2020E 2021E 2022E 2017 PF 2018 Target 2019 Target 2020
Slide 37: Solid balance sheet with currency hedge
37 5 Solid balance sheet with currency hedge Balance sheet Debt Structure Net debt breakdown by currency (€bn) (%) Long dated maturities AUD (~8 years) 1.1B 5% Goodwill Equity 1.5B Low costs EUR (margins of 275 bps, 225 bps and 375 bps for EUR, USD and AUD term loan tranches respectively) 45% Intang
Slide 38: Improving Return on Capital Employed
38 6 Improving Return on Capital Employed ROCE(1) Return on Sales >18% 14% >20% 2018E 2019E 2020E 2021E 2022E Return on Assets 12% >120% 82% 2018E 2019E 2020E 2021E 2022E 2018E 2019E 2020E 2021E 2022E Significant improvements in ROCE driven by margin improvements and more efficient capital usage Not
Slide 39: Summary
Summary
Slide 40: Solid and balanced plan
40 Solid and balanced plan 1 Structurally attractive industry that grows ~2xGDP 2 Global leader in the Pool & Wellness industry with clear strategic objectives 3 Compelling equity story with strong value creation
Slide 41: Fluidra Q1 Results 2019
Fluidra Q1 RESULTS 2019 May 8th 2019
Slide 42: Highlights of Q1
Q1 RESULTS 2019 HIGHLIGHTS OF Q1 08/05/2019 1. Disappointing quarter in the US due to temporary events, partially offset by our global footprint. 2. Fundamentals of the business remain solid. 3. Integration proceeding as planned with good visibility of synergies for the year. 4. Reconfirming 2019 gu
Slide 43: Summary
SUMMARY Q1 RESULTS 2019 08/05/2019 January-March PF PF IFRS 16 Main figures 2018 2019 PF 2019 Evol. €M €M 19/18 €M • Sales decreased by 1.1% after weak start in the Sales 316.6 313.1 (1.1%) 313.1 US (weather, distribution ordering pattern and EBITDA 46.7 44.3 (5.3%) 50.0 Tijuana plant move issues),
Slide 44: Integration highlights
Q1 RESULTS 2019 08/05/2019 INTEGRATION HIGHLIGHTS Focus on balancing integration, synergies and continued growth of the PROGRESS OF INTEGRATION PLAN ACTIVITIES combined business. INTEGRATION Successful legal, systems and operations merger of Spain, Italy and Portugal that allows us to better serve
Slide 45: Sales by geography
SALES BY GEOGRAPHY Q1 RESULTS 2019 08/05/2019 January- PF 2019 • Southern Europe grew by 9.7% when adjusted March 2018 for currency and perimeter (Aquatron Evol. Constant divestiture), with a very solid start in France and €M % sales €M % sales 19/18 FX Italy. Southern Europe 109.0 34.4% 112.9 36.0%
Slide 46: Sales by business unit
Q1 RESULTS 2019 SALES BY BUSINESS UNIT 08/05/2019 January- PF 2019 March 2018 Evol. • Residential Pool impacted by US performance €M % sales €M % sales 19/18 and Aquatron’s divestiture. Adjusting for change Pool & Wellness 304.5 96.2% 301.5 96.3% (1.0%) in perimeter growth would be 1.1%. Residential
Slide 47: Pro forma profit & loss
Q1 RESULTS 2019 PRO FORMA PROFIT & LOSS 08/05/2019 January- PF PF IFRS 16 March 2018 2019 PF 2019 Evol. €M % sales €M % sales 19/18 €M Sales 316.6 100% 313.1 100% (1.1%) 313.1 • Sales performance impacted by unfavorable weather in the US. Solid performance in Europe and Rest of the Gross Margin 165.
Slide 48: Net working capital
RESULTADOS 1S Q1 RESULTS 2019 NET WORKING CAPITAL 08/05/2019 IFRS 16 Net Working Capital March PF 2018 2019 2019 Evol. €M €M 19/18 €M Inventory 300.4 327.7 9.1% 327.7 PF 2018 Accounts Receivable 421.5 443.6 5.2% 443.6 437.6 446.1 Accounts Payable 284.4 325.3 14.4% 321.0 2019 Net Working Capital 437.
Slide 49: Net debt and free cash flow
RESULTADOS 1S Q1 RESULTS 2019 NET DEBT AND FREE CASH FLOW 08/05/2019 102.4 Net Debt IFRS 16 102.4 impact January-March PF 2018 2019 €M €M Evol. 19/18 PF 2018 EBITDA 46.7 44.3 (5.3%) 959.5 857.1 799.8 2019 Increase (-) / Decrease (+) NWC (126.1) (135.1) 7.1% Capex (-) 10.4 12.9 23.8% Free Cash Flow (
Slide 50: Conclusions
Q1 RESULTS 2019 CONCLUSIONS 08/05/2019 1. Fluidra’s global footprint partly compensates weak Q1 in the US due to temporary impacts. 2. The fundamentals of the business remain solid. April evidences the start of recovery in the US with double digit growth, while Europe maintains positive trend. 3. Ve
Slide 51: Appendix (I): Reported profit and loss account
APPENDIX (I): REPORTED PROFIT AND LOSS Q1 RESULTS 2019 08/05/2019 ACCOUNT % of IFRS 16 % of Evol. €M 2018 sales 2019 sales 19/18 Sales 179.1 100.0% 313.1 100.0% 74.8% Fluidra’s reported P&L for 2018 is standalone Gross Margin 92.5 51.6% 168.1 53.7% 81.8% Fluidra. OPEX 77.4 43.2% 126.9 40.5% 63.9% Fo
Slide 52: Appendix (II): Reconciliation of pro forma to reported sales
Q1 RESULTS 2019 APPENDIX (II): RECONCILIATION OF PRO FORMA 08/05/2019 TO REPORTED SALES €M 2018 2019 January to March 2018 Zodiac Sales are excluded Pro forma Sales 316.6 313.1 to reconcile Pro forma to Reported Sales. January to March Zodiac 139.6 - In addition, due to Zodiac’s fiscal year starting
Slide 53: Appendix (III): Reconciliation of pro forma to reported EBITDA and net income
Q1 RESULTS 2019 APPENDIX (III): RECONCILIATION OF PRO FORMA TO REPORTED 08/05/2019 EBITDA AND NET INCOME IFRS 16 €M 2018 2019 Key reconciliation items for 2018 are: Adjusted EBITDA 46.7 44.3 • January to March 2018 Zodiac EBITDA January to March Zodiac results 32.4 - IFRS 15 (4.1) - • In addition, d
Slide 54: Appendix (IV): Reported balance sheet
RESULTADOS 1S Q1 RESULTS 2019 APPENDIX (IV): REPORTED BALANCE SHEET 08/05/2019 IFRS 16 IFRS 16 ASSETS LIABILITIES 03/2018 03/2019 03/2018 03/2019 PPE & rights of use 101.7 219.7 Share capital 112.6 195.6 Goodwill 195.5 1,094.2 Share premium 92.8 1,148.6 Other intangible assets 32.6 784.8 Retained ea
Slide 55: Contact
CONTACT +34 93 724 39 00 Investor_relations@fluidra.com Avda. Francesc Macià 60, planta 20 - 08208 Sabadell (Barcelona) www.fluidra.com