Slide 1: Half-Year Financial Report January–June 2023
HALF-YEAR FINANCIAL REPORT January – June 2023 24 August 2023 Alexander Rosenlew, CEO Saara Mäkelä, CFO Hanna Kukkonen, CMO
Slide 2: Content
Content 1. Introduction to Orthex 2. January–June 2023 in brief 3. Strategy 4. Sustainability 5. Financials 6. Q&A HALF-YEAR FINANCIAL REPORT | JANUARY–JUNE 2023 | 24 AUGUST 2023
Slide 3: A leading Nordic houseware company with strong brands and sustainable products
A leading Nordic houseware company with strong brands and sustainable products 7 sales offices >40 customer countries 3 factories (incl. warehouses) >90% own brands ~ 300 employees (FTE) Sustainability focus
Slide 4: Mission to make everyday life easier
Mission to make everyday life easier HOME & YARD (7% of sales1)) STORAGE KITCHEN (64% of sales1)) (21% of sales1)) PLANT CARE (8% of sales1)) Functional and award-winning design Long-lasting high-quality products Forerunner in sustainability2) ~ 10% of sales from new launches Note: 1) YTD Invoiced s
Slide 5: January-June 2023 in brief
JANUARY-JUNE 2023 IN BRIEF Half-year financial report January-June 2023
Slide 6: January-June 2023
January-June 2023 Net sales Orthex’s net sales decreased by 2.3%. In constant currency, net sales grew by 1.2%. Continued growth in Europe outside the Nordics Careful consumer behaviour in the Nordics Profitability Significant profitability improvement The positive development is affected
Slide 7: Q2 2023: Net sales decreased by 4.1% and adjusted EBITA increased to EUR 2.1 million
Q2 2023: Net sales decreased by 4.1% and adjusted EBITA increased to EUR 2.1 million Net Sales and Invoiced Sales Net sales decreased by 4.1% to EUR 20.1 million (21.0) In constant currency, overall net sales development was flat Invoiced sales decreased by 4.3% and totalled EUR 20.6 million (
Slide 8: H1 2023: Net sales decreased by 2.3% and adjusted EBITA was EUR 4.5 million
H1 2023: Net sales decreased by 2.3% and adjusted EBITA was EUR 4.5 million Net Sales Net sales decreased by 2.3% to EUR 40.6 million (41.6) Invoiced sales decreased by 2.8% and totalled EUR 41.8 million (43.0) Adjusted EBITA Adjusted EBITA was EUR 4.5 million (1.6) Adjusted EBITA margin was
Slide 9: Invoiced sales by Geography
Invoiced sales by Geography Invoiced sales by geography quarterly, EUR million Invoiced sales by geography, EUR million 20 40 17.5 35.3 16.3 35 32.5 15 30 25 10 20 15 3.9 8.8 5 3.5 10 7.0 0.5 0.3 5 0.8 0.5 0 0 Nordics Rest of Europe Rest of the world Nordics Rest of Europe Rest of the world 4-6/2022
Slide 10: Invoiced sales by Product category
Invoiced sales by Product category Invoiced sales by product category quarterly, EUR million Invoiced sales by product category, EUR million 14 12.8 30 12.4 27.0 25.6 12 25 10 20 8 15 6 5.3 4.4 10.2 10 8.8 4 1.9 1.8 1.9 1.6 4.1 3.4 3.1 2 5 2.7 0 0 Storage Kitchen Plant Care Home & Yard Storage Kitch
Slide 11: Strategy
STRATEGY Half-year financial report January–June 2023
Slide 12: Orthex's key growth strategy objectives
Orthex’s key growth strategy objectives are: • To become the number one brand in the storage product category in Europe • Strengthen its position as a leading houseware company in the Nordics HALF-YEAR FINANCIAL REPORT | JANUARY–JUNE 2023 | 24 AUGUST 2023
Slide 13: Clear growth strategy to deliver objectives
Clear growth strategy to deliver objectives 4 Market 3 consolidation #1 storage brand in 2 Europe 1 Accelerating Accelerating growth in the the online retail export markets distribution through key channel ~€89m Solid actions to account approach ~€84m keep winning and new customer ~€76m acquisitions
Slide 14: Sustainability
SUSTAINABILITY Half-year financial report January–June 2023
Slide 15: Forerunner in sustainability in our industry
Forerunner in sustainability in our industry ENVIRONMENTAL SOCIAL GOVERNANCE CO2 Neutral Long-lasting Local Increased usage of Target: towards products production renewable and recycled carbon neutrality materials in our production by 2030 Active support of the UN Sustainable Development Goals
Slide 16: Sustainability
Sustainability Ecovadis ESG assessment Orthex participated in the Ecovadis ESG assessment for the first time and was awarded with a silver medal on its sustainability performance The assessment results places Orthex among the top 18 percent of companies globally assessed by EcoVadis, the world’s
Slide 17: Financials
FINANCIALS Half-year financial report January– June 2023
Slide 18: Net sales & profitability
Net sales & profitability Net sales quarterly, EUR million Adjusted EBITA quarterly, EUR million 24 3,0 22.1 22 21.0 2,5 2.4 20.6 20.5 20.4 2.2 20.1 2.1 20 2,0 1.8 18 1.6 2022 1,5 2022 16 2023 2023 1,0 14 12 0,5 -0.2 10 0,0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -0,5 • In Q2 2023, the Group’s Net sales decreased b
Slide 19: Development of raw material price indexes
0€ 500 € 1 000 € 1 500 € 2 000 € 2 500 € Jan Feb March April May June 2016 July August September October November December Jan Feb March April May June 2017 July August September October November December Jan Feb March April May June 2018 July August September October Propylene (C3) Contract EUR/t N
Slide 20: Investments & net debt
Investments & net debt Investments in tangible and intangible assets, EUR million Net debt, EUR million & Leverage 2,0 1,8 45 3,0 1,8 2.8 40 2.6 1,6 2.5 2.4 2,5 35 2.3 1,4 30 2.0 2,0 1,2 1.8 25 1.7 1,0 1.5 1.5 1.6 1,5 0.8 0.8 20 0,8 0,6 0.5 0.5 0.5 15 1,0 0,4 10 0,5 0,2 5 - - - Q1 Q2 Q3 Q4 Q4 2020 Q
Slide 21: Long-term financial targets
Long-term financial targets Target Description Latest reported SALES Total growth of >5% “An over time annual organic net sales growth -2.8% total to exceed 5 per cent on a Group level, and 10 GROWTH Outside Nordics >10% per cent outside the Nordic region” 20.0% outside Nordics “Improving EBITA marg
Slide 22: Summary
SUMMARY SIGNIFICANTLY IMPROVED CONTINUED SALES GROWTH WEAK DEMAND IN THE PROFITABILITY IN EUROPE NORDICS
Slide 23: Q&A
Slide 24: Key Figures
Key Figures EUR million 4-6/2023 4-6/2022 Change 1–6/2023 1–6/2022 Change 2022 Invoiced sales 20.6 21.5 -4.3% 41.8 43.0 -2.8% 85.8 Net sales 20.1 21.0 -4.1% 40.6 41.6 -2.3% 84.0 Gross margin 5.2 3.1 66.3% 10.6 8.0 32.1% 17.9 Gross margin, % 25.6% 14.7% 26.0% 19.2% 21.3% EBITDA 3.1 0.6 386.1% 6.5 3.4
Slide 25: Financial releases in 2023
Financial releases in 2023 Orthex will publish its financial reports in 2023 as follows: 7 November 2023, Interim report January–September 2023 INTERIM REPORT | JANUARY–JUNE 2023 | 24 AUGUST 2023
Slide 26: Orthex
orthex’ Practical is Beautiful