Slide 1: Your perfect pool experience
Your perfect pool experience IR PRESENTATION March, 2021
Slide 2: Disclaimer
2 Disclaimer • This document is for information purposes 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 by Fluidra, S.A. ("Fluidra", and with all
Slide 3: Fluidra at a glance
3 Fluidra at a glance Overview Global & balanced presence • Innovative, user-focused provider of highly engineered (Sales by geography FY2020A) LatAm products and solutions Rest of World Europe • Listed on the Spanish stock exchange, with a market capitalization of >4.0B • Global headquarters in Bar
Slide 4: Highlights, Mission and Values
4 Highlights, Mission and Values Customer collaboration 1 Structurally attractive industry Passion for Excellence success and innovation Global leader in the Pool & Wellness 2 industry with clear strategic objectives Honesty Teamwork and trust Compelling equity story with strong 3 value creation Lea
Slide 5: Highly attractive market with two growth drivers
5 1 Highly attractive market with two growth drivers Life of pool & renewal cycle New build growing but still well below pre-crisis levels (Varies depending on use and construction type) New pools, thousands 600 450 Year 1 Year 10 Year 20 300 150 Construction Consumable Maintenance & Remodel of Pool
Slide 6: Growing & resilient market with strong fundamentals
6 1 Growing & resilient market with strong fundamentals Growing market Estimated market growth range Market size (€, bn) CAGR: c. 5% Average Ticket ~1.5–2.5% Growth ~ 7% 7.9 Installed Annual 6.2 Pool Base Growth ~1.5–2% = ~ 4 – 6% = Range of Growth Long Term Average New Build ~1–1.5% ~ 3% Growth 201
Slide 7: Global leadership leveraging a unique and powerful platform
7 2 Global leadership leveraging a unique and powerful platform Broadest geographic footprint with business model adapted to each market Expansive product offering drives growth and expands addressable market Globally recognized brands allow for market segmentation and channel optimization Core comp
Slide 8: Four strategic objectives that deliver value through 2022
8 2 Four strategic objectives that deliver value through 2022 Great operating • Product category expansion and financial performance Accelerate growth • After market penetration in North America • New product pipeline and connected pools Sales Growth 5 – 8% EBITDA Margin ~22.4% Leverage platform in
Slide 9: Strong sales growth and a resilient business model
9 3 Strong sales growth and a resilient business model Strong growth outlook (excludes revenue synergies)… …that is highly resilient… 5–8% 1–2% 8% New Build sales over all-time low 1–1.5% 26% New Build 1.5 –2.5% sales at all-time low Combined Business is 1.5 –2% 92% Resilient Sales Installed Base Gr
Slide 10: Key margin improvement initiatives
10 2022 PLAN 3 Key margin improvement initiatives Value initiatives and lean update Cost synergies update (€ m) (€ m) 2018A 2019A 2020E 2021E 2022E • Value initiatives and lean target revised upwards by €5m to • Ahead in cost synergies, well positioned for 2021 target €30m – now ongoing process targ
Slide 11: Significant margin improvement and cash generation
11 3 Significant margin improvement and cash generation EBITDA margin evolution Delivers strong deleveraging for cash allocation ND / EBITDA 60 bps 22.4% 140 bps 200 bps 18.4% ˃3.5x 400bps of total improvement 2.8x 1.8x ~2.0x 2017 PF Cost Synergies Lean & Value Initiatives Operating Leverage 2
Slide 12: Summary
12 Summary 1 Structurally attractive industry showcasing resilience and growth 2 Global leader in the Pool & Wellness industry with clear strategic objectives 3 Compelling equity story with strong value creation
Slide 13: Appendix
APPENDIX
Slide 14: Ownership structure and shareholders' agreement
14 2022 PLAN Ownership structure and shareholders’ agreement Ownership structure Shareholders’ agreement Rhône Capital: • Prohibition to sell to a single acquirer (i) more than 20% or (ii) any Free float number of shares if this would legally oblige the acquirer to launch a 50.2% tender offer - Once
Slide 15: FY Results 2020
FY RESULTS 2020 February 26th 2021
Slide 16: Key Messages
Key Messages 1. Excellent 2020 results. Early trading trends point to a strong 2021. 2. Superb cash generation underpinning strength of our business model. 3. Ongoing M&A activity within the accretive capital allocation policy. 4. Approved new ESG Plan which will be shared during the next CMD. 5. Fu
Slide 17: FY Financial Highlights
FY Financial Highlights Outstanding Operating Leverage & Cash Generation in 2020 Evol. Const. FX & €M 2019 2020 20/19 Perimeter • Double digit Sales increase in Q4, boosted by continued demand Sales 1,367.6 1,488.1 8.8% 11.0% momentum in Residential Pool. EBITDA 268.8 320.8 19.3% 19.4% • EBITDA and
Slide 18: Highlights for the Quarter
Highlights for the Quarter People and Customers ● Operating with agility in the “new normal” working environment. Measures and processes in place make us better prepared for pandemic’s resurgences. ● Approved the new ESG Plan. Rated for the first time on ESG by S&P with a 69/100 rating. This is a so
Slide 19: Sales by Geography
Sales by Geography Solid Growth in All Geographies Driven by the Residential Pool Activity in Q4 % % Evol. Const. FX & Q4 €M 2019 Sales 2020 Sales 20/19 Perimeter Southern Europe 52 17% 64 19% 23.1% 23.2% • Southern Europe, excellent performance in the quarter driven Rest of Europe 36 12% 45 13% 26.
Slide 20: Sales by Business Unit
Sales by Business Unit Residential Aftermarket and New-Builds Activities Drive Growth % % Evol. Q4 €M 2019 2020 Sales Sales 20/19 • Residential Pool had a strong Pool & Wellness 296 97% 337 98% 13.8% growth in the quarter favored by Residential 217 71% 250 72% 15.1% the “cocooning effect” driven by
Slide 21: FY Results
FY Results Increasing Operating Leverage Leads to Higher Profitability Evol. €M 2019 % Sales 2020 % Sales 20/19 • Great Sales growth in 2020 led by Sales 1,367.6 100% 1,488.1 100% 8.8% Northern Hemisphere. Gross Margin 708.1 51.8% 787.2 52.9% 11.2% • Strong Gross Margin expansion, driven Opex before
Slide 22: Net Working Capital
Net Working Capital Improving NWC Throughout the Year in an Inventory Supply Challenged Environment December €M 2019 2020 Evol. 20/19 • Operating Net Working Capital performed superbly, improving ratio to LTM Sales by 627 bps. Inventory 259.5 281.8 8.6% • Inventory increased slightly to Accounts Rec
Slide 23: Cash Flow and Net Debt FY
Cash Flow and Net Debt FY Excellent Cash Flow Allows for Further Deleverage Including Acquisitions and Dividends €M 2019 2020 € Evol. 20/19 Reported EBITDA 205.3 302.1 96.8 • Superb Operating Cash Flow Net Interest Expense Paid (46.6) (34.2) 12.5 performance in 2020, driven by: Corporate Income Tax
Slide 24: Outlook and 2021 Guidance
Outlook and 2021 Guidance 1. January held the strong trend and early data for February points to maintained double digit Sales growth. 2. COVID-19 drove unusual quarters in 2020, causing difficult quarterly comparables for 2021, especially in H2. 3. Management is confident on achieving the following
Slide 25: Conclusions
Conclusions 1. Excellent 2020 results. 2. 2021 off to a great start. The fundamentals of the sector remain strong. Macro stay at home trends point to industry growing off increased Aftermarket base and accelerated New Construction. 3. Our strategy and investment thesis remains unchanged: • Resilient
Slide 26: Appendix
Appendix FY RESULTS 2020 FLUIDRA
Slide 27: (I) Sales by Geography
(I) Sales by Geography Constant Q4 Evol. 20/19 Const. FX Perimeter Const. FX & Perimeter Southern Europe 23.1% 23.1% 23.2% 23.2% Rest of Europe 26.1% 31.2% 18.7% 23.7% North America 12.2% 19.7% 12.2% 19.7% Rest of the World 3.5% 9.4% 1.6% 7.4% Total 13.3% 18.8% 11.8% 17.3% Constant FY Evol. 20/19 Co
Slide 28: (II) Reported Profit & Loss Account FY
(II) Reported Profit & Loss Account FY €M 2019 % Sales 2020 % Sales Evol. 20/19 Sales 1,367.6 100% 1,488.1 100% 8.8% Gross Margin 701.5 51.3% 786.1 52.8% 12.0% Opex before Dep. & Amort. 492.1 36.0% 480.3 32.3% (2.4%) Provisions for Bad Debt 4.1 0.3% 3.7 0.2% (9.3%) Reported EBITDA 205.3 15.0% 302.1
Slide 29: (III) Reconciliation to Reported EBITDA FY
(III) Reconciliation to Reported EBITDA FY €M 2019 2020 Evol. 20/19 EBITDA 268.8 320.8 19.3% Integration Related Non-Recurring Expense (23.5) (5.1) (78.3%) Other & FX impact on Non-Recurring Expense (4.0) (0.5) (87.9%) EBITDA Discontinued Operations (Aquatron) 0.1 - (100.0%) Profit/Loss from sales o
Slide 30: (IV) Reconciliation of Reported to Cash Net Profit and Cash EPS FY
(IV) Reconciliation of Reported to Cash Net Profit and Cash EPS FY €M 2019 2020 Evol. 20/19 Reported Net Profit from Continued Operations 8.4 96.4 1,043% Integration Related & Other Non-Recurring Expense 27.5 5.6 (79.7%) Stock Based Compensation 12.2 9.1 (25.3%) Run Rate Synergies 10.1 3.3 (67.2%) P
Slide 31: (V) Reported Balance Sheet
(V) Reported Balance Sheet Assets 12/2019 12/2020 Liabilities 12/2019 12/2020 PPE & Rights of Use 235.8 222.6 Share Capital 195.6 195.6 Goodwill 1,103.9 1,075.5 Share Premium 1,148.6 1,148.6 Other Intangible Assets 736.2 641.7 Retained Earnings 113.2 227.6 Other Non-Current Assets 94.8 98.5 Interim
Slide 32: Thank you for your attention!
THANK YOU FOR YOUR ATTENTION! Luis Boada IR, Corporate Communications & Business Development Director lboada@fluidra.com T: +34 93 724 39 00 M: +34 600 930 505 www.fluidra.com/shareholders Bloomberg ticker: FDR:SM Reuters ticker: FLUI.MC