Zumtobel Group AG · VIE:ZAG
Zumtobel — Q1 2023/24 Earnings Presentation
22 slides from Zumtobel's earnings presentation, Sep 6, 2023
Slide 1: Q1 2023/24 Results Management Presentation
Q1 2023/24 Q1 2023/24 results MANAGEMENT PRESENTATION | 6 SEPTEMBER 2023 Kunsthaus Bregenz | Creator: Jens Ellensohn 1
Slide 2: Disclaimer
DISCLAIMER The facts and information contained herein constitute forward-looking statements as of the date they were made and based upon assumptions as to future events or circumstances that may not prove to be complete or accurate. By their nature, these statements involve risk and uncertainty beca
Slide 3: Q1 2023/24 Financial Overview
Q1 2023/24 FINANCIAL OVERVIEW • Group revenues decline by 9.0% to EUR 285.6 mn (PY: EUR 313.7 mn) − Lighting Segment revenues at EUR 224.1 mn (–1.0%) − Components Segment at EUR 77.0 mn (–25.4%) − Good revenue contributions especially from Switzerland and the Benelux countries • EBIT at EUR 14.5 mn
Slide 4: Q1 2023/24 project highlights
Q1 2023/24 Volkschule Meiningen & Weißkirche, Austria Lee Valley Velopark, UK project highlights Cathedral of St. Peter the Apostle, Italy Capital Market Story, January 2023 Photographer: Nationalmuseum © Matthias Rhomberg Volvo Trucks Ghent, Belgium 4
Slide 5: Lighting Segment: Improvement in EBIT margin, revenues remain flat
LIGHTING SEGMENT IMPROVEMENT IN EBIT MARGIN, REVENUES REMAIN FLAT REVENUES IN EUR MN EBIT IN EUR MN fx-adj. –0.3% 10.6% 7.7% –1.0% 7.4% 7.0% 7.2% 226.5 224.1 235.0 225.8 215.8 24.9 16.7 17.3 16.2 15.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022/23 as a % of revenues 2022/23 2022/23 2023/24 2023/24 as a % of revenu
Slide 6: Components Segment: Q1 revenue impacted by high customer inventory levels
COMPONENTS SEGMENT Q1 REVENUE NEGATIVELY IMPACTED BY HIGH CUSTOMERS' INVENTORY LEVELS REVENUES IN EUR MN EBIT IN EUR MN fx-adj. 8.7% –23.0% 7.4% 6.0% 9.4% –25.4% 2.9% 103.2 93.9 82.8 87.4 77.0 8.9 7.6 7.6 4.9 2.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022/23 as a % of revenues 2022/23 2022/23 2023/24 2023/24 as a
Slide 7: Zumtobel Group: Revenue decline in difficult market, EBIT margin solid
ZUMTOBEL GROUP REVENUE DECLINE IN A DIFFICULT MARKET ENVIRONMENT, EBIT MARGIN REMAINS SOLID REVENUES IN EUR MN EBIT IN EUR MN fx-adj. 10.1% –7.6% 6.1% 6.0% –9.0% 5.1% 5.5% 313.7 314.1 31.7 285.6 284.4 297.0 19.0 17.2 16.3 14.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022/23 as a % of revenues 2022/23 2022/23 2023/2
Slide 8: Zumtobel Group EBIT Development Q1 2023/24
ZUMTOBEL GROUP EBIT DEVELOPMENT Q1 2023/24 REVENUE DECLINE AND PERSONNEL COST INCREASES DUE TO INFLATION ONLY PARTIALLY OFFSET EBIT BRIDGE IN EUR MN / AS % OF SALES 6.1% –1.0pp 5.1% Mainly due to lower raw material and transportation 19.0 costs 11.5 14.5 -2.0 Mainly due to higher personnel expenses
Slide 9: Zumtobel Group Income Statement
SOLID EBIT MARGIN IN Q1 2023/34 DESPITE THE DIFFICULT MARKET ENVIRONMENT IN THE COMPONENTS SEGMENT ZUMTOBEL GROUP – INCOME STATEMENT IN EUR MN Q1 2023/24 Q1 2022/23 CHANGE IN % Revenues 285.6 313.7 –9.0 Cost of goods sold –183.0 –208.6 –12.3 Gross profit (incl. development) 102.5 105.0 –2.4 as a % o
Slide 10: Cash Flow Improvement in Q1 2023/24
CASH FLOW IMPROVEMENT IN Q1 2023/24 ZUMTOBEL GROUP – CASH FLOW STATEMENT IN EUR MN Q1 2023/24 Q1 2022/23 Cash flow from operating results 29.2 32.8 Change in working capital –15.3 –18.7 Change in other operating items –13.1 –14.2 Taxes paid/received –1.2 –1.3 Cash flow from operating activities –0.5
Slide 11: Solid Balance Sheet: Strong equity ratio and debt coverage ratio
SOLID BALANCE SHEET: STRONG EQUITY RATIO AND DEBT COVERAGE RATIO ZUMTOBEL GROUP – KEY BALANCE SHEET DATA IN EUR MN 31 July 2023 30 April 2023 Solid liquidity position backed by: Total assets 995.0 1,002.4 • Consortium credit agreement with a term ending in December 2027 and a volume of EUR 125 mn Ne
Slide 12: Sales development turns negative in a difficult market environment
SALES DEVELOPMENT TURNS NEGATIVE IN A DIFFICULT MARKET ENVIRONMENT ZUMTOBEL GROUP – SALES DEVELOPMENT BY QUARTER VS PY PERIOD IN % 15.4 14.6 13.0 9.6 3.4 8.4 1.1 1.8 1.9 5.1 5.8 -0.5 -1.6 -7.6 -1.7 -9.0 -5.3 -8.8 -12.7 -13.9 -15.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018/1
Slide 13: Group revenues down by 9.0% in Q1 2023/24
GROUP REVENUES DOWN BY 9.0% IN Q1 2023/24 ZUMTOBEL GROUP – REGIONAL REVENUE DISTRIBUTION CHANGE IN % IN EUR MN Q1 2023/24 NOMINAL FX ADJUSTED D/A/CH 105.0 5.2 3.3 Northern and Western Europe 68.6 –11.0 –9.5 Southern and Eastern Europe 76.0 –12.2 –8.9 Asia & Pacific 22.2 –37.9 –33.1 Americas & MEA 13
Slide 14: Current market outlook for the financial year 2023/24
CURRENT MARKET OUTLOOK FOR THE FINANCIAL YEAR 2023/24 Growth in non-residential construction Development of non-residential construction in 2023 until 2025 • Non-residential construction prospects 3.1 1.8 2.0 1.7 are weak in total – but there is still growth 0.4 0.9 • 13 out of 19 countries expect g
Slide 15: Efficiency measures to tackle the difficult market environment
EFFICIENCY MEASURES TO TACKLE THE DIFFICULT MARKET ENVIRONMENT Operational efficiency • Review staffing in all functional areas • Reduce costs through digitalization and strict management of overhead costs Management of manufacturing costs • Increase automation in our manufacturing processes Cost re
Slide 16: FY 2023/24 Outlook
FY 2023/24 OUTLOOK Revenue EBIT margin decline CAPEX excl. IFRS 16 of 3 – 6% mid-single digit ~EUR 60 mn (prior: revenue increase by 1 – 4%) Q1 2023/24 results Photographer: Jürgen Eheim 16
Slide 17: Back Up
BACK UP Q1 2023/24 results ZUMTOBEL Group
Slide 18: Financial Calendar
FINANCIAL CALENDAR DATE SUBJECT PERIOD 7 December 2023 Half-Year Financial Report 2023/24 1 May 2023 – 31 October 2023 7 March 2024 Interim Report Q1 – Q3 2023/24 1 May 2023 – 31 January 2024 Q1 2023/24 results 18
Slide 19: Working Capital Development
WORKING CAPITAL DEVELOPMENT ZUMTOBEL GROUP – WORKING CAPITAL 21.0 19.7 19.2 18.4 18.4 17.1 17.4 16.2 16.2 • Working capital at EUR 247.7 mn as of 31 July 2023 (30 April 2023: EUR 231.7 mn) • In % of rolling 12-month revenues, working capital at 21.0% (PY: 19.7%) Q1 Q2 Q3 Q4 FY 2021/22 FY2022/23 FY20
Slide 20: Supplementary Data for Segment Reporting
SUPPLEMENTARY DATA FOR SEGMENT REPORTING ZUMTOBEL GROUP Lighting Segment Components Segment Reconciliation Group IN EUR MN Q1 2023/24 Q1 2022/23 Q1 2023/24 Q1 2022/23 Q1 2023/24 Q1 2022/23 Q1 2023/24 Q1 2022/23 Net revenues 224.1 226.5 77.0 103.2 –15.5 –16.0 285.6 313.7 External revenues 224.0 226.2
Slide 21: Five-Year Overview
FIVE-YEAR OVERVIEW ZUMTOBEL GROUP IN EUR MN 2022/23 2021/22 2020/21 2019/20 2018/19 Revenues 1,209.2 1,148.3 1,044.5 1,131.3 1,162.0 EBIT 84.3 60.8 43.4 35.1 2.7 as a % of revenues 7.0 5.3 4.2 3.1 0.2 Net profit/loss for the period 60.0 45.8 45.6 14.5 –15.2 as a % of revenues 5.0 4.0 4.4 1.3 –1.3 To
Slide 22: Zumtobel Group AG
ZUMTOBEL GROUP AG Investor Relations investorrelations@zumtobelgroup.com www.zumtobelgroup.com Q1 2023/24 results 22