Slide 1: Nilfisk Q2 2020 Interim Report
Nilfisk Q2 2020 Interim Report Webcast presentation
Slide 2: On the call today
On the call today Hans Henrik Lund Prisca Havranek-Kosicek CEO CFO Page 2 Nilfisk Q2 Interim Report 2020
Slide 3: Forward looking statements
Forward looking statements This presentation contains forward-looking statements, including statements regarding Nilfisk’s future operating profit, financial position, inventory, cash flows, strategic priorities as well as plans for the future. Forward-looking statements include, without limitation,
Slide 4: Agenda
Agenda 1 2 3 4 Takeaways for Q2 2020 Outlook Q&A Q2 2020 financials 4 Nilfisk Q2 Interim Report 2020
Slide 5: Key takeaways for Q2 2020
Key takeaways for Q2 2020 Organic • COVID-19 continued to impact demand growth – Pick-up in demand month-over-month in most markets -24.9% (April: -32%, May: -28%, June: -15%) – Significant variations between markets and segments Gross • Swift action on measures within our control margin – Adjusting
Slide 6: Demand patterns across markets
Demand patterns across markets Market variations largely follow scope and timing of lockdowns and reopenings Americas EMEA APAC US North China • Least impact on demand • Pick-up in demand during Q2 • Continued low demand and slow • Pick-up in demand month-over- pick-up month Central • Least negative
Slide 7: Demand patterns across customer segments
Demand patterns across customer segments Variations between customer segments correlating to their exposure to the crisis Low impact on demand Some impact on demand Severe impact on demand • Low impact on demand in critical • Drop in demand from contract cleaners • Steep decline in demand from hospi
Slide 8: Business update
Business update Execution of restructuring according to plan • Restructuring to mitigate crisis impact executed according to plan • Cost reductions in line with strategic objectives: – Marketing: Harvesting efficiencies and combining competences to improve portfolio management – Sales: Digital sales
Slide 9: Agenda
Agenda 1 2 3 4 Takeaways for Q2 2020 Outlook Q&A Q2 2020 financials 9 Nilfisk Q2 Interim Report 2020
Slide 10: Income statement
Income statement EUR million Q2 2020 Q2 2019 Change H1 2020 H1 2019 Change Comments Net sales 191.1 258.6 -67.5 410.2 505.2 -95.0 Reported growth -26.1% -9.1% -17.0% -18.8% -6.8% -12.0% • Total reported revenue down by 67.5 mEUR corresponding to reported growth of -26.1% Organic growth -24.9% -4.4%
Slide 11: EMEA
EMEA Comments • Large variations in demand between EMEA regions – Least impact but less steep pick-up in North and Central regions – South heavily impacted but with steep pick-up in demand during Q2 • Gross margin negatively impacted by lower capacity utilization • Strict cost control, lower personn
Slide 12: Americas
Americas Comments • Impact on demand correlated to degree and length of lockdown – US least impacted and most notable pick-up – Canada significantly impacted by low demand with modest pick-up – Mixed picture in LatAm with slower pick-up than US • Gross margin negatively impacted by lower capacity ut
Slide 13: APAC
APAC Comments Significant demand variation between APAC markets and regions: – Continued low demand in China despite eased lockdown restrictions – Least impact and strongest pick-up in Pacific region • Gross margin negatively impacted by lower capacity utilization and inventory revaluation • Costs d
Slide 14: Other business units
Other business units Consumer Private label and other • Very strong performance in Q2 as a result of high • Revenue down by 2.5 mEUR in line with expectations demand and new customer wins • Gross margin negatively affected by product and • Exit from Pacific region in Q4 2019 negatively impacting cus
Slide 15: Balance sheet and cash flow
Balance sheet and cash flow EUR million Q2 2020 Q2 2019 Change Comments Inventories 153.0 184.1 -31.1 Trade receivables 155.9 211.4 -55.5 • WC reduced by 53.4 mEUR due to lower inventory and trade receivables Trade payables 81.9 127.6 -45.7 • LTM WC ratio up by 1.3 pp compared to last year Reported
Slide 16: Agenda
Agenda 1 2 3 4 Takeaways for Q2 2020 Outlook Q&A Q2 2020 financials 16 Nilfisk Q2 Interim Report 2020
Slide 17: Outlook for 2020 remains suspended
Outlook for 2020 remains suspended • On March 19, our financial outlook for 2020 was suspended due to the global uncertainty caused by the COVID-19 pandemic, and the rapid development in the pandemic had a significant impact on demand in Q2. We have seen significant variations in demand patterns acr
Slide 18: Agenda
Agenda 1 2 3 4 Takeaways for Q2 2020 Outlook Q&A Q2 2020 financials 18 Nilfisk Q2 Interim Report 2020
Slide 19: Q&A
Q&A 19 Nilfisk Q2 Interim Report 2020
Slide 20: Forward-looking statements
Forward-looking statements This presentation and related comments contain forward-looking statements. Such statements are subject to many uncertainties and risks, as various factors, of which several are beyond Nilfisk Holding’s control, may cause that the actual development and results differ mater