Arbonia Ag · SIX:ARBN
Arbonia — H1 2019 Earnings Presentation
29 slides from Arbonia's earnings presentation, Aug 13, 2019
Slide 1: Arbonia – H1 2019 Results – 13th August 2019
Arbonia – H1 2019 Results – 13th August 2019 Alexander von Witzleben, CEO Daniel Wüest, CFO
Slide 2: H1 2019 summary: Overview key metrics (CHF M)
H1 2019 summary Overview key metrics (CHF M) Net revenue1 EBITDA2 Net debt3 Investments Free cash flow +7% 6.3% 7.6% 1.0x 1.3x 688 EBITDA Margin Leverage Ratio 646 +25% +29% 171 +2% 137 41 52 50 51 +49% H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 -39 -75 H1 2018 H1 2019 Solid rev
Slide 3: Performance by Division (CHF M)
H1 2019 summary Performance by Division (CHF M) – reflects focus on bottom-line Sanitary HVAC Equipment Windows Doors +22% -4% +1% 274.6 -3% Net 224.5 165.7 159.3 181.1 182.8 74.2 71.7 revenues H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 +12% 24.6 +270% +9% 21.8 +11% 20.6 22.4 EB
Slide 4: Arbonia's 5-year performance: Successful transformation
Arbonia’s 5-year performance: Successful transformation Key figures 2015-2019 (CHF M) Net revenue 1 Operating cash flow CAGR CAGR 15-18 15-18 +13% +8% 1’374 70 1'246 69 941 995 54 728 32 +7% 86 2 H1 646 688 H1 vs. PY -17 2015 2016 20171 20181 20191 2015 2016 2017 2018 2019 EBITDA21 Shareholders’ equ
Slide 5: Arbonia's 5-year EBITDA performance: Divisions
Arbonia’s 5-year EBITDA performance: Divisions Key figures 2015-2019 (CHF M) HVAC1 Sanitary Equipment2 CAGR CAGR 15-18 15-18 +9% +9% 53 17 41 44 46 14 13 31 10 7 22 25 H1 6 6 H1 2015 2016 2017 2018 20195 2015 2016 2017 2018 20195 Windows3 Doors4 CAGR CAGR 15-18 15-18 +14% +35% 16 36 40 35 13 27 19 7
Slide 6: Corporate Development Strategy
Corporate Development Strategy I Plant Productivity Low-cost country production footprint | Operational flexibility and leverage Vertical integration | Cost and Price leadership | Industry 4.0 | State-of-the-art production facilities II Market Leadership Regional expansion | Domestic market developm
Slide 7: Plant productivity: New production site in Stupino (RUS)
I Plant productivity New production site in Stupino (RUS) • Building completed, technology installed • Ramp-up of new production competence center in Stupino started • Best product offering to local customer base New plant – 15.000 m² covered area First of two welding lines • Core team setup finishe
Slide 8: Plant productivity: Relocation projects
I Plant productivity Relocation projects Altstätten • After completion of PVC relocation to Slovaktual (SK) in 2016, transfer of remaining EgoKiefer Switzerland wood and wood/alu quantities to (Windows) Langenwetzendorf / Wertbau completed by end of 2019 • End of production in Altstätten (CH) presum
Slide 9: Market leadership: Balanced production footprint across Europe
II Market leadership Balanced production footprint across Europe (as of 2020) Results of 5-year restructuring and repositioning: Stupino DE PL (RU) • Consolidated and NL modernized production set-up across Europe to BE provide both proximity to key markets and low cost CZ SK structures • Strong foot
Slide 10: Arbonia brand portfolio
II Market leadership Arbonia brand portfolio Region HVAC Sanitary Equipment Windows Doors Other European countries (Benelux, Poland, Slovakia, Italy, Spain, Czech Republic, Russia, etc.) Arbonia’s footprint enables local market leadership underpinned by our brand portfolio | Arbonia H1 2019 results
Slide 11: Customer value: HVAC & Sanitary Equipment
III Customer value HVAC & Sanitary Equipment • Numerous new products and systems launched in 2019 HVAC • Complete product portfolio for HVAC and energy management System • Integrated R&D and sales activities for speed solution and synergies • Wide range of shower enclosures for the special demands o
Slide 12: Customer value: Windows & Doors
III Customer value Windows & Doors • Dobroplast launched an online window configurator covering the entire Polish market Windows • Customers benefit from lean and efficiently structured processes, short lead times, Webshop professional installation and transparent pricing • Replication and scalabili
Slide 13: Customer value: Our digitalization objectives
III Customer value Our digitalization objectives Collaborations Enabler for divisions and group … Division objectives Shared resources Divisions | Arbonia H1 2019 results | 13th August 2019 13
Slide 14: Summary repositioning and restructuring: Business transformation completed
Summary repositioning and restructuring Business transformation completed 2015: Distressed Swiss 2019: Emerging European industrial holding building components supplier 2020 onwards • Underinvested production • Highly automated, modern • Focus on profitable organic sites with limited power to and co
Slide 15: Mid-term financial roadmap from 2020 onwards
Mid-term financial roadmap from 2020 onwards Following completion of business transformation • Organic and inorganic top-line growth with focus on underlying bottom-line performance Value • Focus on (operational) free cash flow generation (before M&A and generation selected expansion capex projects)
Slide 16: P&L without one-time effects
P&L Without one-time effects In CHF M 1-6/20191 in % 1-6/20182 in % I Cost of material • Product mix improvement Net revenues 688.4 100.0 645.6 100.0 I Cost of material and goods -322.9 -46.9 -312.7 -48.4 II II Personnel exp. Personnel expenses -238.5 -34.7 -223.2 -34.6 Other operating expenses -14.
Slide 17: P&L with one-time effects
P&L With one-time effects In CHF M 1-6/20191 in % 1-6/20182 in % I Personnel exp. Net revenues 688.4 100.0 645.6 100.0 • Up due to restructuring charges at Vasco and Cost of material and goods -322.9 -46.9 -312.7 -48.4 EgoKiefer plus ramp- I Personnel expenses -243.3 -35.3 -223.2 -34.6 up Stupino pl
Slide 18: Net revenues by Division and Region
Net revenues by Division and Region Relative share of HVAC up mainly due to acquisition of Vasco Net revenues by Division1 Net revenues by Region1 18% (17%) 24% (26%) 27% (28%) 40% (35%) 6% (2%) 11% (13%) 23% (26%) 10% (11%) 41% (42%) HVAC Switzerland Sanitary Equipment Germany Windows Eastern Europ
Slide 19: Organic Growth
Organic Growth Growth based on price effects across all divisions Net Δ Currency Acqui- revenues as Organic 1-6/2019 1-6/20181 Year sition reported Effects Growth2 Total Effects in CHF M Arbonia 688.4 645.6 +6.6% -2.9% +8.1% +1.4% HVAC 274.6 224.5 +22.3% -3.5% +23.2% +2.6% Sanitary 71.7 74.2 -3.3% -
Slide 20: Financials: Balance sheet
Financials Balance sheet In CHF M 2,000 Assets 1’594 I 1’512 1,500 • Working capital increase due to seasonality 30.2% 30.3% of operations 1,000 • IFRS 16, capitalisation of right-of-use assets 69.7% (leases) of c. CHF 50 M 500 69.8% 0 12 2018 06 2019 Current assets Non-current assets In CHF M 2'000
Slide 21: Net debt as of June 2019
Net debt as of June 2019 In CHF M 250 3x I Net debt Leverage ratio (excl. IFRS 16) 225 • Net debt increased CHF 34 M to CHF 171 M compared to H1 2018 due to acquisition, IFRS 16 effect capex investments and dividend payment Net debt 200 54 • Seasonal decrease until year end expected 2x II Leverage r
Slide 22: Financials: Cash flow statement
Financials Cash flow statement I Cash flow from operating activities 80 In CHF M • Cash flow from operating activities turned 60 positive in H1 2019 40 • Excluding IFRS 16 cash flow from operating 70.0 activities is c. CHF -4 M and still c. CHF 12 M 20 1.6 ahead of H1 2018 0 • Typically lower cash f
Slide 23: Market outlook 2019 Europe (real growth)
Market outlook 2019 Europe (real growth) Non- Revenues Relevance Country Residential residential Comment 2018 H S W D Residential market suffers from increased -3.4% 2.8% vacancy in residential segment 26% Continuously high demand for residential 0.9% -0.6% 40% construction expected
Slide 24: Outlook: Guidance 2019
Outlook Guidance 2019 Guidance as of 02/2019 Sales ~ 3% organic growth Confirmation of guidance for full year 2019 EBITDA1 CHF 128-136 M 1 Including IFRS 16 | Arbonia H1 2019 results | 13th August 2019 24
Slide 25: Disclaimer
Disclaimer Arbonia AG is making great efforts to include accurate and up-to-date information in this document, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim any liability whatsoe
Slide 26: Back-up slides
ARBONIA @& Back-up slides
Slide 27: Relocation projects
II Market leadership Relocation projects Our ambitious relocation projects will be completed in 2019 From To Villeneuve Pravenec A (CH) (SK) Vlotho Tubbergen Windows Altstätten Pravenec (D) Langenwetzen- (NL) B (CH) (SK) dorf (D) Legnica Altstätten Langenwet- Zedelgem F H C (CH) zendorf (D) (BE) G (
Slide 28: Revenue breakdown other important countries
Revenue breakdown other important countries Including FX effects and effects from acquisitions and divestments Actual in % In CHF M 06 2019 of NR Poland 37.2 5.4% Italy 33.3 4.8% France 24.7 3.6% Belgium 24.6 3.6% Netherlands 17.6 2.6% Czech Republic 17.3 2.5% Slovakia 14.9 2.2% Austria 13.0 1.9% Sp
Slide 29: Arbonia Investor Relations
Arbonia Investor Relations ir@arbonia.com +41 71 447 45 54 +41 79 457 01 38