Thule Group Ab · OMXSTO:THULE
Thule Group Ab — Investor Day (May 2022)
48 slides from Thule Group Ab's investor day presentation, May 11, 2022
Slide 1: Thule Group Capital Markets Day 2022
Thule Group Capital Markets Day 2022 May 11, 2022 in Hillerstorp, Sweden
Slide 2: Capital Markets Day 2022
CAPITAL MARKETS DAY 2022
Slide 3: Important notice
Important notice This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performances, plans, strategies, expectations, prospects, competitive environment, regulation and supply & demand. Thule Group has based these
Slide 4: Capital Markets Day 2022
Thule Group» CAPITAL MARKETS DAY 2022
Slide 5: Agenda
AGENDA 11.00 Program starts 11.00 - 12.30 Group Strategy and Q&A CAPITAL MARKETS DAY 2022 12.30 - 13.30 Guided Tour 13.30 Lunch + Product Expo
Slide 6: 80 Years of Product Driven Growth
INTRODUCTION 80 Years of Product Driven Growth
Slide 7: A lifestyle company focused on sustainable profitable growth
Thule Group: A lifestyle company focused on sustainable profitable growth CULTURE & LEADERSHIP SUSTAINABILITY APPROACH POSSIBILITY PRODUCT DRIVEN GROWTH GROWTH WITH FOR SHAREHOLDER STRONG CASH + STRATEGIC RETURNS EFFICIENT & FLEXIBLE SUPPLY CHAIN GENERATION M&A GLOBAL LIFESTYLE BRAND RETAIL SUPPORT
Slide 8: Our heritage still creates the cultural foundation we stand on
Our heritage still creates the cultural foundation we stand on ▪ Gnosjöandan – entrepreneurial spirit ▪ Product is King ▪ Yes, we can – grit mentality ▪ Own and live our brand ▪ Safe ▪ Quality ▪ Easy to use ▪ Sustainable ▪ Trustworthy ▪ Flexible and constantly evolving 8 2022-05-11 Thule Group - Cap
Slide 9: Sales: Historical growth trend boosted by pandemic induced staycations
Sales: Historical growth trend boosted by pandemic induced ”staycations” Reported Net Sales and Fx adjusted Sales Growth (2014-2021) Bio SEK +11% CAGR (Fx adj.) +25% CAGR (Fx adj.) 12,0 10,4 10,0 +6% CAGR (Fx adj.) 7,8 8,0 7,0 6,5 5,9 6,0 5,0 5,3 4,3 4,0 2,0 0,0 2014 2015 2016 2017 2018 2019 2020 20
Slide 10: Profit: Strong EBIT and EBIT-Margin improvement
Profit: Strong EBIT and EBIT-Margin improvement Reported EBIT-Margin targetEBIT (2014-2021) raised 2 times after IPO EBIT-Margin (2014 – 2021) 25% +19% CAGR Bio SEK +38% CAGR 20% 2,5 2,3 2,0 15% +11% CAGR 1,6 1,5 1,2 1,2 10% 1,1 1,0 0,8 0,9 0,6 5% 0,5 0,0 0% 2014 2015 2016 2017 2018 2019 2020 2021 2
Slide 11: Product is King approach: 5% of sales in Product Development
Product is King approach: 5% of sales in Product Development ▪ Expansion of the Global R&D center and Thule Test Center™ (Hillerstorp, Sweden) ▪ 4 niche-focused in-house R&D satellites ▪ Seymour (CT) and Longmont (CO), USA ▪ Menen, Belgium ▪ Malmö, Sweden ▪ >300 in-house product development staff ▪
Slide 12: A flexible Supply Chain with strong in-house manufacturing competence
A flexible Supply Chain with strong in-house manufacturing competence ▪ Deliver safe products with high quality ▪ Consider sustainability in all aspects ▪ Retail customers and consumers offered flexibility and high service levels ▪ Efficiencies with diverse portfolio – focus on automation for high-r
Slide 13: Our ambition is to be sustainable at every step of the way
SUSTAINABILITY Our ambition is to be sustainable at every step of the way
Slide 14: Sustainability has always been an integral part of what we do
Sustainability has always been an integral part of what we do Caring about nature Caring about Engaging with people and society the community 14 2022-05-11 Thule Group - Capital Markets Day 2022
Slide 15: Sustainability – Caring about nature
Sustainability – Caring about nature We are rooted in the outdoors, founded deep in the forests of Sweden more than 80 years ago. We make products that either bring your gear into nature or help you pursue your passions outdoors. If there were no rivers to paddle, no trails to mountain bike on, or n
Slide 16: Sustainability – Caring about people and society
Sustainability – Caring about people and society It is part of our company DNA to care about people, society, and the community we are a part of. We believe in the power of people to move the world forward and in the responsibility for companies to invest in people. Therefore, our work is focused on
Slide 17: Sustainability – Engaging with the community
Sustainability – Engaging with the community We engage with and help build community through our shared love of an active life. For us, strengthening our communities begins with the next generation. Children is as close to our hearts as nature. Engaging children in an active life, preferrable in com
Slide 18: Strong global positions in four Product Categories
CURRENT BUSINESS Strong global positions in four Product Categories
Slide 19: Share of sales 2021 - Region and Product Category
Share of sales 2021 - Region and Product Category SPORT & CARGO PACKS, BAGS 14%& RV PRODUCTS ACTIVE WITH KIDS CARRIERS LUGGAGE 67% 14% 12% 7% REGION EUROPE & RoW 72% REGION AMERICAS 28% 19 2022-05-11 Thule Group - Capital Markets Day 2022
Slide 20: Regional differences in share of sales
Regional differences in share of sales Region Europe&RoW Region Americas 4% 12% 14% 9% Sport&Cargo Carriers RV Products 3% 19% Active with Kids 63% Packs, Bags & Luggage 76% ▪ Sport&Cargo Carriers – Market leader ▪ Sport&Cargo Carriers – Market leader ▪ RV Products – Market leader in our niches ▪ RV
Slide 21: Sport&Cargo Carriers: Global market leader in growing category
Sport&Cargo Carriers: Global market leader in growing category SHARE OF NET SALES (2021) 67% THULE ▪ Global market leader GROUP MARKET #1 ▪ Strong local smaller POSITION geography / sub-category (2021) niche players ▪ Staycation momentum GLOBAL solidifies long-term trends MARKET +3-5% ▪ Customer pre
Slide 22: RV Products: Outpacing the European market and growth in niches in US
RV Products: Outpacing the European market and growth in niches in US SHARE OF NET SALES (2021) 14% THULE ▪ Market leader in our niches in Europe GROUP MARKET #1 in ▪ Limited premium niche POSITION Europe offer in N. America and (2021) Asia/Pacific ▪ Short-term constraints for chassis in Europe GLOB
Slide 23: Active with Kids: Bike commuting boom lifted category
Active with Kids: Bike commuting boom lifted category SHARE OF NET SALES (2021) 12% ▪ Leader in Bike Trailers THULE #1 Bike GROUP ▪ Top 3 in Bike Seats MARKET POSITION Growing ▪ Growing player in (2021) in stroller Strollers assortment with broader ▪ Sustainability focus GLOBAL ▪ Huge infrastructure
Slide 24: Packs, Bags & Luggage: Post-pandemic growth as travel picks up
Packs, Bags & Luggage: Post-pandemic growth as travel pick up SHARE OF NET SALES (2021) 7% ▪ Small player overall THULE GROUP Small ▪ Strong niche player in MARKET niche certain geographies POSITION (2021) player ▪ Strong niche player in certain sub-categories ▪ Post pandemic recovery expected as tr
Slide 25: Logical steps into exciting new categories for future growth
NEW PRODUCT CATEGORIES Logical steps into exciting new categories for future growth
Slide 26: Parameters for ideal type of category for Thule
New Product Categories – Parameters for ”ideal” type of category for Thule BIG MARKET GLOBAL MARKET POSITIVE MARKET TREND THULE GROUP POSSIBILITY SHAREHOLDER + BRAND & COMPETENCE + FOR STRATEGIC M&A RETURNS HIGH GROSS MARGIN FIT SIZEABLE SHARE IN PREMIUM FUNCTION & DESIGN 26 2022-05-11 Thule Group -
Slide 27: Dog Transport products: Growing dog ownership and family inclusion
Dog Transport products: Growing dog ownership and ”family inclusion” Number of Dogs (Mio) and Households owning minimum 1 dog (%) (Mio) 90 (Share) 30 60% 25 50% 20 40% 15 30% 10 20% 5 10% 0 0% Mio % Sources: American Veterinary Medical Association, American Pet Products Association, Canadian Animal
Slide 28: Dog Transport products: Focus on Car and Bike travel
Dog Transport products: Focus on Car and Bike travel Estimated* Global ▪ Many ways to transport dogs in car Market Size ▪ Wide price point positions in market (mid to premium segment) CAR TRANSPORT ▪ Niche brands in premium segment ▪ Stricter safety standards and laws are being implemented ~1.5 Bio
Slide 29: Car Seats: A safety focused, technical category with high demands
Car Seats: A safety foused, technical category with high demands Many use modes to consider Strict regulations (that differ) Common Key Points EUROPE i-Size (UN R129) N. AMERICA FMVSS/CMVSS 213 29 2022-05-11 Thule Group - Capital Markets Day 2022
Slide 30: Car Seats: Category entry in steps 2023-2025
Car Seats: Category entry in steps 2023-2025 ▪ 2023/Q4 Europe ▪ Base ▪ Infant ▪ Toddler ▪ 2024/H2 N. America ▪ Base + Infant ▪ Base + Toddler ▪ 2024/H2 Global ▪ Booster ▪ 2025 Other regions (to be defined) 30 2022-05-11 Thule Group - Capital Markets Day 2022
Slide 31: Car Seats: Focus first on European and N. American portfolios
Car Seats: Focus first on European and N. American portfolios ▪ Same base used both for Infant & Toddler ▪ Newborn: Common Base + Infant Seat Estimated* European ▪ Toddler: Common Base + Toddler Seat Market Size ▪ Larger children: Booster Seat (premium segment) EUROPE ▪ i-Size (UN-R129) regulatory d
Slide 32: New Product Categories – Good fit for Thule
New Product Categories – Good fit for Thule DOG TRANSPORT CAR SEATS BIG MARKET GLOBAL MARKET POSITIVE MARKET TREND HIGH GROSS MARGIN SIZEABLE SHARE IN PREMIUM FUNCTION & DESIGN BRAND & COMPETENCE FIT POSSIBILITY FOR M&A 32 2022-05-11 Thule Group - Capital Markets Day 2022
Slide 33: Reporting – Active with Kids renamed Juvenile & Pet Products
Reporting – ”Active with Kids” renamed ”Juvenile & Pet Products” TODAY: Active with Kids NEW TOMORROW Child Bike Trailers Strollers Dog Transport Products JUVENILE Child Bike Seats Child Carriers + Car Seats & PET PRODUCTS 33 2022-05-11 Thule Group - Capital Markets Day 2022
Slide 34: Building on our globally recognized lifestyle brand - Thule
BRAND Building on our globally recognized lifestyle brand - Thule
Slide 35: Thule – A lifestyle brand built on genuine and solid pillars
Thule – A lifestyle brand built on genuine and solid pillars INSPIRING GENUINE REAL BRAND POSITIONING BRAND PROMISE BRAND CONNECTION CONSISTENCY 35 2022-05-11 Thule Group - Capital Markets Day 2022
Slide 36: Great products that deliver on the user experience
Thule – Great products that deliver on the user experience 36 2022-05-11 Thule Group - Capital Markets Day 2022
Slide 37: Great ambassadors are true users
Thule – Great ambassadors are true users Elliot Jackson (Mountainbiker) Emelie Forsberg (Sky- and Ultra-runner) 37 2022-05-11 Thule Group - Capital Markets Day 2022
Slide 38: True users become great ambassadors
Thule – True users become great ambassadors @aktivtfamiljeliv @nakamoto.ke 38 2022-05-11 Thule Group - Capital Markets Day 2022
Slide 39: Continued sales growth at high profit margins
SUMMARY Continued sales growth at high profit margins
Slide 40: Building on 80 years of product driven growth
Building on 80 years of product driven growth 40 2022-05-11 Thule Group - Capital Markets Day 2022
Slide 41: A lifestyle company focused on sustainable profitable growth
Thule Group: A lifestyle company focused on sustainable profitable growth CULTURE & LEADERSHIP SUSTAINABILITY APPROACH POSSIBILITY PRODUCT DRIVEN GROWTH GROWTH WITH FOR SHAREHOLDER STRONG CASH + STRATEGIC RETURNS EFFICIENT & FLEXIBLE SUPPLY CHAIN GENERATION M&A GLOBAL LIFESTYLE BRAND RETAIL SUPPORT
Slide 42: Growth oriented mindset supported by macro trends
Growth oriented mindset supported by macro trends Bike commuting Active ”Staycations” 1 3 5 Lifestyle brands with quality and sustainability postioning Smaller cars trigger transport needs Healthier & more active 55+ generation 2 4 42 2022-05-11 Thule Group - Capital Markets Day 2022
Slide 43: Trends strong pre-pandemic expected to continue to grow
Trends that were strong pre-pandemic expected to continue to grow 43 2022-05-11 Thule Group - Capital Markets Day 2022
Slide 44: Active life pursuits will grow – Outdoor & Urban
Active life pursuits will grow – Outdoor & Urban 44 2022-05-11 Thule Group - Capital Markets Day 2022
Slide 45: Global brands with quality & sustainability stamp will continue to thrive
Global brands with quality & sustainability stamp will continue to thrive 45 2022-05-11 Thule Group - Capital Markets Day 2022
Slide 46: Long-term Targets 2030 – 20 Bio SEK by 2030
Long-term Targets 2030 – Updated with more ambitious Revenue Target SUSTAINABILITY 20 Bio SEK by 2030 REVENUE Previous: Double 2020 revenue by 2030 2 x (7.8 Bio SEK in 2020), i.e. 15.6 Bio SEK 2030 Meet ambitious PROFIT Maintain >20% EBIT-Margin Science Based Targets for reduction of greenhouse gas
Slide 47: Q&A Session
Q&A Q&A Session 47 2022-05-11 Thule Group - Capital Markets Day 2022
Slide 48: Thank you for your attention!
Thank you for your attention!