Somero Enterprises, Inc. · LSE:SOM
Somero Enterprises — FY2023 Earnings Presentation
24 slides from Somero Enterprises's earnings presentation, Mar 4, 2024
Slide 1: 2023 Results Presentation
INNOVATE. EXPAND. GROW. 2023 RESULTS PRESENTATION
Slide 2: 2023 Highlights
A HEALTHY NORTH AMERICAN MARKET AND SIGNIFICANT CONTRIBUTIONS FROM EUROPE AND AUSTRALIA DRIVE STRONG FINISH TO 2023 Revenue 2023 HIGHLIGHTS • Final results in line with revised market expectations US$ 120.7m • The US non-residential construction market remained 2022 133.6 consistent and resilient wi
Slide 3: Sales by Territory
SALES BY TERRITORY US$ MILLIONS 2023 2022 Commentary: North America(1) $ 88.4 $ 101.8 • North American declined 13.2% due to lower Europe 15.1 14.9 Boomed screed sales volume Australia 9.9 8.4 • Europe benefited from addition of customer facing personnel to generate growth in parts and service Rest
Slide 4: Sales by Product
SALES BY PRODUCT US$ MILLIONS 2023 2022 Commentary: Boomed screeds(1) $ 53.9 $ 67.2 • Product mix is dictated by the size and type of projects Ride-on screeds(2) 20.4 19.5 Remanufactured machines 6.8 6.9 • Sales of Boomed screeds in North America was impacted by supply chain challenges, elevated 3-D
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS US$ MILLIONS (EXCEPT PER SHARE DATA) 2023 2022 Commentary: Revenue 120.7 133.6 • Profitability decline primarily attributable to decrease in sales of Boomed screeds in Adjusted EBITDA (1,2) 36.5 46.0 North America Adjusted EBITDA margin (1,2) 30% 34% • 2023 profit margins remain
Slide 6: Operating Results
OPERATING RESULTS US$ MILLIONS 2023 2022 Commentary: Revenue $ 120.7 $ 133.6 • Healthy gross margin reflects net price Gross profit 67.4 76.2 increase and variable cost management offsetting continued inflationary pressures Operating expenses: Selling, marketing & customer support 14.8 14.3 • Operat
Slide 7: Financial Position
FINANCIAL POSITION DECEMBER DECEMBER US$ MILLIONS 31, 2023 31, 2022 Commentary: Cash $ 33.3 $ 33.7 • Cash decrease from year-end 2022 reflects US$ Accounts receivable, net 19.8m dividend payments, offset by cash flow 8.8 10.3 from operations Inventory 19.4 18.8 • Accounts receivable decreased commen
Slide 8: Cash Flows
CASH FLOWS US$ MILLIONS 2023 2022 Commentary: Net income $ 27.9 $ 31.1 • Decrease in net income mainly attributable to Adjustments to reconcile to cash the revenue decline in North America 2.4 2.0 compared to the prior year period provided by operating activities Net working capital changes (5.9) (5
Slide 9: Dividend Policy
DIVIDEND POLICY Interim dividend: $0.10 per share Ordinary Dividend: Final dividend: $0.1320 per share The dividend payout ratio is 50% of adjusted net income. $m 25.7 Less interim dividend 50% 12.9 5.6 7.3 Adjusted Annual dividend net income Supplemental Dividend: Supplemental dividend: $m $0.0740
Slide 10: Product Development
PRODUCT DEVELOPMENT 2023 was an active year setting the Culmination of on-going product New products in the portfolio target stage for future development. development efforts led to three new markets (SkyScreed® 36, Customers continue to guide the new product launches in 2024, SkyStripTM, Broom+Cure
Slide 11: New Products
NEW PRODUCTS The S-940e from the Leaders in Leveling • The first Somero® battery operated Laser Screed® Machine • No Emissions and no compromise on productivity: • Same screeding power as gas or diesel • On-board charging (120v or 240v), including generator package • 8 hours of run time, as much as
Slide 12: International Growth - Europe
INTERNATIONAL GROWTH - EUROPE ❖ US$ 15.1m in revenue in 2023 (2022: US$ 14.9m) ❖ Revenue from new customers represented 39% of the total European revenue in 2023 ❖ Parts and service revenue Kampenhout, BE increased 19% on 2022 ❖ Key sales additions in Italy, Germany and Czech Republic ❖ Adding new t
Slide 13: International Growth - Australia
INTERNATIONAL GROWTH - AUSTRALIA Melbourne, Australia ❖ US$ 9.9m in revenue in 2023, growing nearly 18% from US$ 8.4m in 2022 ❖ Revenue from new customers represented 62% of the total AUS revenue in 2023 ❖ In-country team has increased to 11 at the end of 2023 from 9 in H1 2022 ❖ Secured larger faci
Slide 14: 2024 Outlook
2024 OUTLOOK US market expected to remain consistent, Investments of resources to support extensive supported by customers reporting high levels of jobsite visits and innovation council sessions activity and healthy backlogs enable a continuous pipeline of new products Continued strong contribution
Slide 15: Questions
QUESTIONS 15
Slide 16: Appendices
APPENDICES 16
Slide 17: Our Proven Model
OUR PROVEN MODEL WHAT WE DO Somero’s laser-guided technology and wide-placement methods have been specified for use in a wide range of construction projects. Warehousing Assembly Parking WHO WE WORK WITH plants structures Somero operates in markets across the globe and has sold products in 90+ count
Slide 18: Products & Applications
PRODUCTS & APPLICATIONS RELEASE PRODUCT APPLICATION MARKET BOOMED SCREEDS: S-22EZ SRS-6s 2024 SRS-6s 2022 S-PS50 SLAB ON 25,000-50,000+ ft2 placements GRADE 2022 S-28EZ warehouses, manufacturing S-PS50 assembly plants, tilt-panel and 2014 S-22EZ (re-launch in ‘23) CAST-IN- agricultural buildings PLA
Slide 19: Training and Expertise
Training and Expertise Somero does more than sell equipment. The Company helps customers grow profitable businesses by providing access to world class training and concrete placement & finishing expertise. In 2021, because of restrictions brought on by the pandemic, Somero enhanced its on-demand and
Slide 20: Global Reach
GLOBAL REACH LEADERS IN LEVELLING OUR LOCATIONS At Somero we provide industry-leading concrete levelling equipment, North America training, education and support to customers in over 90+ countries. Fort Myers, Florida: Global headquarters and Somero Our innovative technology allows contractors to co
Slide 21: Our ESG Framework
OUR ESG FRAMEWORK Our goal is to strike the right balance between shareholder expectations and the needs and concerns of our employees and customers, the communities we live in, and the environment. In 2023, we made meaningful progress in the early stages of our long-term ESG journey Social Somero i
Slide 22: ESG in Action
ESG IN ACTION Concrete Industry Harry Chapin Food Bank Management S-485 Donation Industry Support Charitable Donations Employee Volunteering PTO Employee Training Somero Concrete Institute 31 Backpacks Customer Training 22
Slide 23: ESG in Action
ESG IN ACTION Environmental Study Phase I: 2021 Middle Tennessee State University research study identified environmental benefits from the use of Somero laser screed equipment over traditional manual methods by reducing concrete. Environmental Study Phase II: Colorado State University study complet
Slide 24: Historical Results
HISTORICAL RESULTS YEARS ENDED DECEMBER 31, US$ Millions (except per share data) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenue 24.2 21.0 21.9 32.2 45.1 59.3 70.2 79.4 85.6 94.0 89.3 88.6 133.3 133.6 120.7 Revenue growth -53% -13% 4% 47% 40% 32% 18% 13% 8% 10% -5%