Flugger Group A/s Class B · OMXCOP:FLUG_B
Flugger Group A/s Class B — H1 2020/21 Earnings Presentation
19 slides from Flugger Group A/s Class B's earnings presentation, Dec 21, 2020
Slide 1: Investor Relation presentation 2020/21 H1
Financials Investor Relation presentation 2020/21 H1 - December 2020 Page 1 I IR presentation
Slide 2: Vice chairman becomes CEO
Vice chairman becomes CEO switch roles Sune Schnack New Vice Chairman April 2021 New CEO April 2021 CFO CDO Jimmi Mortensen Sune Schnack Poul Erik Stockfleth Ulf Schnack CEO Vice chairman Finance, IT, Legal and HR DNA, Flügger House Page 2 I IR presentation
Slide 3: Flügger is a leading Nordic player within decorative paint products
Flügger is a leading Nordic player within decorative paint products for both professionals and consumers In-house knowledge controlling entire value chain Leading position supported by strong fundamentals and diversified revenue stream Product development Production and logistics Segment 1 Own store
Slide 4: Leading position in markets supported by strong fundamentals
Leading position in markets supported by strong fundamentals Overview of market dynamics Flügger Paint Market Key stats Real GDP development (%)* position (#) consumption*** 6.5% 59.8 6.0% 0.9% 1.6% 2.3% 3.2% 2.0% 2.4% 2.4% [1] 14 -6.5% 10.1% 51.6 4.4% 2.4% 2.4% 2.2% 5.2% 1.1% 2.7% 1.2% [2] 13 -6.8%
Slide 5: The update of the strategy towards 2023/24 aims at +200 mDKK EBIT
The update of the strategy towards 2023/24 aims at +200 mDKK EBIT by intensifying current strategic initiatives Overview of strategic focus towards 2023/24 Targets • Optimization of pricing across product and segments as 1 Value based pricing well as focusing on margin enhancing initiatives Revenue
Slide 6: Flügger raises guidance and expects historic top result
Flügger raises guidance and expects historic top result. Business acquisitions as catalyst for future growth Guidance Annual Adjusted guidance Ambition – 23/24 Report – 20/21 August 6th 2020 October 7th 2020 November 12th 2020 2.050- ~2 +2 +2 ~2.5 Revenue 2.080 bnDKK bnDKK bnDKK bnDKK mDKK ~ 120 130
Slide 7: Acquisition: investment in Eskaro group gaining 70% of shares
Acquisition: Flügger group A/S entered into an agreement to invest in Eskaro group gaining 70% of the shares in Eskaro Group AB Acquisition in Eskaro Group Consolidated view after acquisition of Eskaro ▪ Shares: 70% of shares/votes in Eskaro Group AB ▪ Purchase price: EUR 30.4m, of which o EUR 22.0m
Slide 8: Q2 20/21 Highlights
Q2 20/21 Highlights Revenue (mDKK) EBIT (mDKK) Own stores (#) 16% 100% -13% 549 76 266 475 232 38 Q2 19/20 Q2 20/21 Q2 19/20 Q2 20/21 Q2 19/20 Q2 20/21 Gross Margin (%) EBIT-margin (%) Franchise stores (#) +2.2pp +5.7pp 0% 54.3 56.5 13.8 148 148 8.1 Q2 19/20 Q2 20/21 Q2 19/20 Q2 20/21 Q2 19/20 Q2 20
Slide 9: H1 20/21 Highlights
H1 20/21 Highlights Revenue (mDKK) EBIT (mDKK) Own stores (#) 19% 91% -13% 1,178 200 266 988 232 105 H1 19/20 H1 20/21 H1 19/20 H1 20/21 H1 19/20 H1 20/21 Gross Margin (%) EBIT-margin (%) Franchise stores (#) +1.2pp +6.4pp 0% 55.8 57.0 17.0 148 148 10.6 H1 19/20 H1 20/21 H1 19/20 H1 20/21 H1 19/20 H
Slide 10: Q2 20/21 Highlights
Q2 20/21 Highlights Flügger Group Results mDKK Q2 20/21 Q2 19/20 Change Momentum from first quarter continued with strong sales in Q2 Net sales 549 475 16% • COVID-19 driving up organic sales growth primarily from consumers Organic growth 8% 1% 7pp in Denmark and Sweden M&A 10% 0% 10pp • Especially
Slide 11: H1 20/21 Highlights
H1 20/21 Highlights Flügger Group Results mDKK H1 20/21 H1 19/20 Change Strong sales performance in first half year Net sales 1,178 988 19% • COVID-19 driving up organic sales growth primarily from consumers Organic growth 10% -2% 12pp in Denmark and Sweden M&A 11% 0% 11pp • Especially the DIY segme
Slide 12: Net sales increase driven by acquisition of Unicell
Net sales increase driven by acquisition of Unicell. Positive impact from COVID-19, but currency headwind in Poland and Norway Group sales development Net Sales Net Sales LTM Net sales mDKK mDKK mDKK 1.178 700 2.100 101 988 105 600 1.800 17 500 1.500 400 1.200 300 900 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 13: EBIT almost doubled compared to LY, driven by Unicell
EBIT almost doubled compared to LY, driven by Unicell, increased sales and full impact from the efficiency program TITAN Group EBIT development EBIT EBIT mDKK mDKK 150 200 23 200 2 4 150 100 120 100 50 50 105 0 0 -50 -50 -100 -100 Q1 Q2 Q3Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 H1 1
Slide 14: Segment Own Stores & Resellers: Q2 sales growth of +7%
Segment 1 Own Stores & Resellers: Q2 sales growth of +7% driven by increased activities in the consumer segment Sales development per geographical segment Organic Reported • Strong sales in Denmark driven Revenue (mDKK) Q2 19/20 Currency M&A Q2 20/21 Growth Growth by consumers in particular, due to
Slide 15: Segment DIY: Q2 sales increase driven by Unicell International
Segment 2 DIY: Q2 sales increase solely driven by acquisition of Unicell International, while Unicell Nordic was flat Sales development per geographical segment • Q2 affected by delays in Organic Reported delivery of tools and Revenue (mDKK) Q2 19/20 Currency M&A Q2 20/21 Growth Growth accessories p
Slide 16: Segment Own Stores & Resellers: H1 sales growth of +8%
Segment 1 Own Stores & Resellers: H1 sales growth of +8% primarily driven by positive impact from COVID-19 in Denmark and Sweden Sales development per geographical segment Organic Reported • Solid sales in both Denmark and Revenue (mDKK) H1 19/20 Currency M&A H1 20/21 Growth Growth Sweden driven by
Slide 17: Segment DIY: H1 sales more than doubled
Segment 2 DIY: H1 sales more than doubled primarily driven by acquisition of Unicell Sales development per geographical segment • Solid sales in Unicell Nordic Organic Reported Revenue (mDKK) H1 19/20 Currency M&A H1 20/21 driven by increased Growth Growth consumer focus on DIY due Unicell Nordic 10
Slide 18: Increased earnings and stable stock price driving P/E-ratio down
Increased earnings and stable stock price driving P/E-ratio down Development in P/E and stock price P/E Stock price incl. reinvested dividends DKK DKK 100 600 500 80 400 60 300 40 200 20 100 0 0 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 Q1 Q2 11/12 12/13 13/14 14/15 15/16 16/17 17/
Slide 19: Stock prices
Stock prices Facts about Flügger Group A/S (FLUG B) Development - Flügger & Competitors Flügger PPG Akzo Nobel Tikkurila Source:Dec 9 2020 - https://tools.morningstar.dk/dk/stockreport/default.aspx?tab=7&SecurityToken=0P0000A5R1%5D3%5D0%5DE0WWE%24%24ALL&Id=0P0000A5R1&ClientFund=0&CurrencyId=DKK Page