Fluidra, S.a. · BME:FDR
Fluidra — Non-Deal Roadshow (November 2014)
41 slides from Fluidra's roadshow presentation, November 2014
Slide 1: Making Water Perform
November 2014 MAKING WATER PERFORM FLUIDRA ® @ee-
Slide 2: Disclaimer
Disclaimer This document is for information only and does not constitute an offer to sell, exchange or buy, or an invitation to make offers to buy, securities issued by any of the companies mentioned. This financial information has been prepared in accordance with International Financial Reporting S
Slide 3: Table of Contents
Table of Contents 1. Fluidra at a glance 2. Shareholder Structure 3. Business Model 4. Financial Performance 5. Strategy and Investment Highlights 6. Annex 3
Slide 4: 1. Fluidra at a glance
1. Fluidra at a glance 4
Slide 5: Fluidra at a Glance
Fluidra at a Glance Strong 2013 Sales: €592.7M (-5.7%) Financial 2013 EBITDA: €47.7M (-33.9%; normalized Ebitda: €61.3M) Performance 2013 Net Debt: €186.8m (+3.4%) International leader in distribution of solutions for Pool, Fluid Handling, Water Treatment Business and Irrigation Vertically
Slide 6: Summary Financials
Summary Financials Improving efficiency • Centralization of distribution and commercial platforms, as well as manufacturing facilities • Consolidation of manufacturing plants Improvement in top line performance and EBITDA uplift Sales (€m) EBITDA (€m) & EBITDA Margin 82 70 72 653 624 628,8 65 581 59
Slide 7: Fluidra's evolution – Geographical overview
Fluidra’s evolution – Geographical overview 350 300 250 200 2008 150 2013 100 50 0 Spain España Rest of Europe Resto de Europa Asia & Asia y Australia North Norte America Africa, ME Africa, ME & Resto Australia America & mundo del RoW In 5 years time, €140M less volume in Europe, partially compensat
Slide 8: Fluidra's evolution – Product overview
Fluidra’s evolution – Product overview 50% 45% 40% 35% 30% 25% 2008 2013 20% 15% 10% 5% 0% Minor Repair & Service Retail Replacement & Refurb Pool Construction Source: Internal Analysis Significant evolution in product categories: from product addressed to construction business to value added produc
Slide 9: 2. Shareholder Structure
2. Shareholder Structure FLUIDRA °
Slide 10: Shareholder Structure
Shareholder Structure The shareholders’ agreement by the founding families and Banc Sabadell reflects their confidence in Fluidra’s growth strategy and in its future projects. Boyser 14.1% Free float 45.1% Edrem 13.5% Dispur 12.2% Banc Sabadell Aniol 5.0% 10.1% 10
Slide 11: 3. Business Model
3. Business Model 11
Slide 12: Fluidra in the Business Value Chain: an integrated model
Fluidra in the Business Value Chain: an integrated model Manufacturing & Logistics & R+D+i Distributor / B2B Pool, Water Treatment, Irrigation and Fluid Handling Local Large Distributors / Retailers & Installers (B2C; Mass Market) Builders Retailers Installers Residential / Private End-User Commerci
Slide 13: Overview of Divisions and Business Units
Overview of Divisions and Business Units Divisions NORTH ASIA & EUROPE AMERICA & AUSTRALIA RoW FY 2013 Revenues €592.7M €410M €114M €69M (69%) (19%) (12%) €411M Design, production and distribution of all components for Pool – Wellness (69%) residential or commercial pools and wellness centers €60M
Slide 14: Distribution Network & Manufacturing Hubs
Distribution Network & Manufacturing Hubs Rest of the World 12% Spain 20% Asia & Australia 19% East Europe 5% North Europe South Europe 13% 31% Sales by geographical area 80% international sales Factories 125 branches in 41 countries: Alemania, Australia, Austria, Bélgica, Brasil, Bulgaria, Colombia
Slide 15: Internationally recognized leadership on Pools
Internationally recognized leadership on Pools Some examples on Country Market Share (%) on Pool activity Fluidra Other 57% 58% 60% 55% 31% 35% 29% Spain Portugal France UK Austria Middle East Australia Market Position #1 #1 #1 #1 #1 #1 #1 15
Slide 16: Fluidra's Positioning in the Water Business
Fluidra’s Positioning in the Water Business 16
Slide 17: 4. Financial Performance
4. Financial Performance FLUIDRA @ee-
Slide 18: 3Q2014 Results – Summary
3Q2014 Results – Summary Sales: Good third quarter performance, Main Magnitudes growing 1.3%. Year to date performance has been marked by the impact of Sept 13 Sept 14 Evol. currencies and discontinued operations €M YTD YTD (projects and divestitures). Adjusted for Sales 485,4 477,9 -1,6% this effec
Slide 19: 3Q2014 Results – Profit and Loss Account
3Q2014 Results – Profit and Loss Account Sept 2013 YTD Sept 2014 YTD €M % sales €M % sales Evol.14/13 Sales 485,4 100,0% 477,9 100,0% -1,6% Gross Margin 239,5 49,3% 242,8 50,8% 1,4% Opex before Dep.& Amort. 179,8 37,0% 172,1 36,0% -4,3% Provisions for bad debt 5,4 1,1% 7,4 1,5% 37,4% EBITDA 54,3 11,
Slide 20: 3Q2014 Results – Sales by Geographical Area
3Q2014 Results –Sales by Geographical Area Fluidra Sales by Geographical Area Evolution 2013 YTD % 2014 YTD % €M 14/13 Spain 104,7 21,6% 107,5 22,5% 2,8% South Europe - Rest 153,9 31,7% 134,6 28,2% -12,5% Central & Northern Europe 67,8 14,0% 76,2 15,9% 12,4% Eastern Europe 25,0 5,1% 25,3 5,3% 1,2% A
Slide 21: 3Q2014 Results – Sales by Business Unit
3Q2014 Results –Sales by Business Unit Sales by business units Evolution 2013 YTD % of Total 2014 YTD % of Total €M % Pool 323,8 66,7% 325,9 68,2% 0,6% - Private 269,6 55,5% 276,5 57,9% 2,6% - Commercial 54,2 11,2% 49,4 10,3% -8,9% Water Treatment 76,9 15,9% 76,4 16,0% -0,7% Irrigation 28,4 5,8% 24,
Slide 22: 3Q2014 Results – Net Working Capital
3Q2014 Results – Net Working Capital September YTD Net Working Capital (M€) Evol. 2013 2014 €M 14/13 226,6 Inventory 141,8 143,6 1,2% 216,5 Accounts Receivable 193,8 176,3 -9,0% Accounts Payable 109,0 103,4 -5,1% Net Working Capital 226,6 216,5 -4,5% 2013 2014 Good Net Working Capital performance. T
Slide 23: 3Q2014 Results – Net Financial Debt and FCF
3Q2014 Results – Net Financial Debt and FCF September YTD 2013 2014 Evol. 14/13 Net Financial Debt (M€) €M Net income 8,3 14,4 6,0 209,8 Depreciation (+) 26,3 27,5 1,2 181,0 Increase (-) / Decrease (+) NWC -25,8 -34,8 -9,1 Capex (organic) -15,8 -12,2 3,8 Free Cash Flow pre-acquisitions -7,0 -5,2 1,8
Slide 24: 3Q2014 Results – Highlights
3Q2014 Results – Highlights Argelia: Fluidra was awarded a contract worth € 600,000 for the design and supply of components for the pool and wellness area of the Ben Lahbib resort in Oran (Algeria). Fluidra Accelera: is a new initiative launched to give support and boost innovation in the world of w
Slide 25: 3Q2014 Results – Conclusions
3Q2014 Results – Conclusions Year to date performance is in line with our forecast: Divestiture Plan for non-strategic assets successfully completed. Implementation of the Restructuring Plan. Recovery of business in Spain. The company is focused on: Growth through increasing market share in Europe,
Slide 26: 5. Strategy and Investments Highlights
5.Strategy and Investments Highlights 26
Slide 27: Strategy
Strategy TOMORROW Worldwide Water company serving our customers TODAY An international pool company with Europe as a main market 27
Slide 28: Strategy guidelines
Strategy guidelines Internationalization • USA, CSA & Africa • Channels and focus on internet channel Residential evolution Pool • Strategic product categories & bundling Market Penetration offers (beyond crosselling) • Product & Service Innovation • Pricing Strategy • Technical Support & Service St
Slide 29: Strategy guidelines
Strategy guidelines Leverage distribution network and improve competitive position in cost Other BU and branding Build Fluidra of the XXI century: 1. Lean manufacturing strategy: value, cost, quality 2. Global logistics & warehousing strategy 3. Knowledge strategy: training, technical support & afte
Slide 30: Contact
Contact: Avda. Francesc Macià, 60, planta 20 08208 Sabadell (Barcelona) Tel: +34 937 243 900 e-mail: investor_relations@fluidra.com 30
Slide 31: 6. Annex
FLUIDRA @ee-
Slide 32: International Leadership
International Leadership • Fluidra acquired VEICO (February 2013), company that makes accessories for pools in the Brazilian state of Santa Caterina. • Veico has a turnover of more than Euro 3M and industrial facilities of 1,500 square meters. Veico - • Veico gives us manufacturing capabilities in a
Slide 33: International Leadership
International Leadership Presence of Fluidra in Latam Mexico • Latam Division, Fluidra has decided to extend his presence in this area, Colombia with the aim to promote Latam activities in the Latin Brazil Division America market. This new market will bring capability of growth and development on th
Slide 34: Product Innovation
Product Innovation • AstralPool MAC is the only compact, modular device in the market that has all the components needed for the physical and chemical control of pool water in the most efficient way possible. • Its smart software enables all settings to be adjusted from a touchscreen and users thus
Slide 35: Product Innovation
Product Innovation • Launch of high range products "Viron" for U.S. and Australian residential markets, consisting of pumps, cartridge filters, control system with touchpad's, air conditioning, etc.. And characterized by a commitment to sustainability, energy efficiency and cutting edge technology,
Slide 36: Leverage Pool Distribution Network
Leverage Pool Distribution Network Distribution: New branch format Old Model: branch with relatively large storage surface and just want point for customer attention New Model: Self service format, with different areas for training, show room and exhibits Promotes cross-selling, becoming a one-stop
Slide 37: Become a player in Industrial FH in Asia
Become a player in Industrial FH in Asia Fluidra • Fluidra closed the signature of a joint venture in China, Fluidra Youli Fluid Systems (Wenzhou), dedicated to fluid handling in the Asian market and Youli an initial focus in the Chinese market •Industrial Fluid Handling - China: fragmented market o
Slide 38: Become a player in Industrial FH in Asia
Become a player in Industrial FH in Asia •Constitution of the Joint Venture (October 2012): Fluidra contributes Euro 4,8M and Youli contributes the manufacturing facility. Fluidra •There are several earn out payments conditional on results up to a maximum limit of Euro 14,9M Youli •2012: Euro 2,1M O
Slide 39: Operational Excellence
Operational Excellence • Asia Division, Fluidra has created this new division to promote Asia activities in the Asian market. This new structure will bring Division together the operations on the continent. Presence of Fluidra in Asia 39
Slide 40: Improve Margins and Cash Flow Generation
Improve Margins and Cash Flow Generation Lean Management Program: Key Principles Commitment Potential to Improve Commitment from senior and middle Aggressive optimization objectives management, as well as employees “Sky is the limit” in terms of potential to Pragmatic approach: focus on “real-life”
Slide 41: Investment Highlights
Investment Highlights International leadership High Quality Recurrent revenues Business Clear road map Financial strength and proven flexibility to increase shareholder’s value Consolidator in a fragmented market Attractive Industry Growth markets 41