Dometic Group Ab · OMXSTO:DOM
Dometic Group Ab — Q4 2021 Earnings Presentation
41 slides from Dometic Group Ab's earnings presentation, Jan 27, 2022
Slide 1: Interim Presentation Q4 2021
INTERIM PRESENTATION Q4 2021 January 27, 2022
Slide 2: Juan Vargues, President & CEO
JUAN VARGUES PRESIDENT & CEO
Slide 3: Q4 2021 Highlights
Q4 2021 HIGHLIGHTS Market development ▪ Continued strong demand ▪ Record high backlog ▪ Retail inventory levels are low across all verticals ▪ Supply chain constraints remain challenging ▪ Improvements in some areas driven by mitigating actions Performance ▪ 32% sales growth ▪ EBITA margin bef i.a.c
Slide 4: Q4 2021 Financial Summary
Q4 2021 FINANCIAL SUMMARY Net sales of SEK 5,542 m, +32% total growth ▪ +2% organic SEKm 6,500 ▪ +2% FX 6,000 ▪ +27% M&A 5,500 EBITA dev. +18% 632 5,000 EBITDA SEK 771m, +10% 4,500 536 ▪ EBITDA margin of 13.9% (16.6%) 4,000 NS dev. +32% 3,500 3,000 EBITA bef i.a.c. SEK 632 m, +18% 5,542 2,500 ▪ EBIT
Slide 5: Full Year 2021 Highlights
FULL YEAR 2021 HIGHLIGHTS ACCELERATING THE TRANSFORMATION JOURNEY Market development ▪ Strong market demand with low retail inventories ▪ End user appetite for outdoor activities - accelerated market trends towards sustainable and flexible solutions ▪ Challenges from pandemic breakouts, supply chain
Slide 6: 2021 Full Year Financial Summary
2021 FULL YEAR FINANCIAL SUMMARY Net sales of SEK 21,516 m, +33% total growth ▪ +23% organic SEKm 25,000 ▪ -3% FX 3,348 ▪ +13% M&A EBITA dev. +50% 20,000 EBITDA SEK 3,775 m, +41% 2,235 ▪ EBITDA margin of 17.5% (16.5%) 15,000 NS dev. +33% EBITA before i.a.c. of SEK 3,348 m, +50% 10,000 21,516 ▪ EBITA
Slide 7: Sales Growth Q4 2021
SALES GROWTH Q4 2021 Total growth SEKm Q4 2021 80% 22,000 21,500 SEK 5,542 m 21,000 ▪ Total Growth SEK 1,329 m (+32%) 60% 20,500 ▪ Americas +23% 20,000 40% ▪ EMEA +19% 19,000 ▪ APAC +26% 20% ▪ Global +55% 18,000 0% 17,000 Total Growth +41% compared to Q4 2019 -20% 16,000 ▪ Organic +17% 15,000 ▪ FX -
Slide 8: Application Areas Q4 2021
APPLICATION AREAS Q4 2021 Climate Q4 +9% Food & Beverage SALES SPLIT FY 2021, Q4 +54% APPLICATION AREA 8,000 2,500 6,500 1,810 2,000 1,851 2,000 6,000 13% 7,500 1,500 1,500 5,500 7,000 1,000 37% 1,000 5,000 21% 6,500 500 500 4,500 6,000 0 4,000 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 9: Sales Channels Q4 2021
SALES CHANNELS Q4 2021 SERVICE AND AFTERMARKET Q4 +21% SALES SPLIT FY 2021, SALES CHANNEL 8,000 2,500 7,500 2,000 15% 7,000 1,654 6,500 1,500 6,000 1,000 5,500 50% 500 5,000 35% 4,500 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 OEM Q4 +11% DISTRIBUTION Q4 +216% OEM (54%) 11,000 2,758 3,000 3,200 1,1
Slide 10: Sales Channel Development
SALES CHANNEL DEVELOPMENT DISTRIBUTION + SERVICE AND AFTERMARKET FROM 39% TO 50% 2017 Full year 2021 Full year Total sales SEK 14.0 b Total sales SEK 21.5 b Distribution Distribution 11% 15% ▪ In line with strategy of having >50% of sales outside OEM Service and ▪ Drives margin expansion Aftermarket
Slide 11: EBITA and EBITA Margin before i.a.c
EBITA AND EBITA MARGIN BEFORE I.A.C EBITA Run rate 15,6% (13,8%) SEKm EBITA-margin Q4 2021 1,050 17% EBITA margin 11.4% (12.7%) 900 16% EBITA margin excl Igloo 12.8% (12.7%) + Sales growth 750 15% + Pricing 600 14% + Cost saving activities + Currency effects 450 13% ‒ Supply constraints 300 12% ‒ Fr
Slide 12: Americas Q4 2021
AMERICAS Q4 2021 Net sales SEK 1,516 m, +23% (organic -6%) NET SALES AND EBIT MARGIN BEFORE I.A.C. 20% ▪ Growth driven by Power & Control and Other 42% applications 14% ▪ Growth driven by OEM and Service & Aftermarket 24% 1,800 8% ▪ 2021 acquisitions drive improved business mix 1,600 6% Climate 1,40
Slide 13: EMEA Q4 2021
EMEA Q4 2021 Net sales SEK 1,520 m, +19% (organic +8%) 6% NET SALES AND EBIT MARGIN BEFORE I.A.C. 10% ▪ Growth driven by application area Climate ▪ All time high backlog 52% 32% ▪ 2021 acquisitions drive improved business mix 2,200 18% 2,000 16% Climate 1,800 EBIT before i.a.c. of SEK 77 m (76) 1,60
Slide 14: APAC Q4 2021
APAC Q4 2021 Net sales SEK 546 m, +26% (organic +1%) NET SALES AND EBIT MARGIN BEFORE I.A.C. 5% ▪ Growth in all application areas 19% 32% ▪ Strong growth in all sales channels ▪ Backlog significantly higher than a year ago 44% 550 30% ▪ Enerdrive acquisition drives improved business mix 500 Climate
Slide 15: Global Q4 2021
GLOBAL Q4 2021 Net sales SEK 1,960 m, +55% (organic +5%) NET SALES AND EBIT MARGIN BEFORE I.A.C. 14% 12% ▪ Growth driven by application area Food & Beverage ▪ Igloo transaction completed October 26 37% 38% ▪ Solid growth in Marine, backlog all time high 2,000 25% ▪ Strong development in Hospitality
Slide 16: Igloo
IGLOO Market shares US by vendor ACQUISITION COMPLETED OCTOBER 26 (USD) 40% Twice the 30% ▪ Iconic brand with a clear number one position in the US size of #2 20% ▪ Twice the size of #2 10% 0% ▪ Market share 31% (28%) Igloo #2 #3 #4 #5 #6 ▪ Product innovation drives increased average selling price ▪
Slide 17: 2021 Strategy Execution
2021 STRATEGY EXECUTION 1 ▪ Profitable expansion ▪ Strong growth in Distribution and Service and Aftermarket, 2021 sales share 50% (39% in 2017) ▪ Nine acquisitions announced ▪ B2C organic sales growth 93% in 2021 2 ▪ Product leadership ▪ Innovation Index 26% (22%) ▪ Strong pipeline of new products
Slide 18: Social Media Followers
SOCIAL MEDIA FOLLOWERS 11% GROWTH INCREASE YOY 745 741k CHANNELS 735 725 169K (+43%) Thousand 715 705 38K (+50%) 695 685 675 533K (+2%) 665 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Combined social media followers across Facebook, Instagram and LinkedIn (%) vs 2020
Slide 19: Growth in Outdoor Distribution Channels
GROWTH IN OUTDOOR DISTRIBUTION CHANNELS FROM 3,500 TO 95,000 STORES IN ONE YEAR IN 95,000 STORES WORLDWIDE >50 PURE E-TAILER PARTNERS DOMETIC.COM E-COMMERCE ▪ Igloo acquisition added 90,000 stores, ▪ Q4 organic sales growth 89% ▪ Q4 organic sales growth 52% including ▪ Drives sales growth and reach
Slide 20: Accelerated Acquisitive Journey
ACCELERATED ACQUISITIVE JOURNEY NINE ACQUISITIONS IN 2021 TARGETING THE OUTDOOR MARKET RESIDENTIAL OUTDOOR VEHICLE BASED OUTDOOR SERVICE AND OUTDOOR MOBILE ACTIVITIES AFTERMARKET EXPANSION POWER SOLUTIONS
Slide 21: Acquisition of NDS Energy
ACQUISITION OF NDS ENERGY MARKET LEADER IN MOBILE POWER SOLUTIONS IN THE SOUTH EUROPEAN OUTDOOR MARKET ▪ Part in agenda of establishing a leading global platform within Mobile Power Solutions ▪ 75% of sales within Service and Aftermarket ▪ Complement Büttner Elektronik geographically ▪ Closing expec
Slide 22: New Front Runner – Dometic Products
NEW FRONT RUNNER – DOMETIC PRODUCTS OFFERING FOR THE VEHICLE BASED OUTDOOR ACTIVITIES ▪ Wolf Pack pro storage box ▪ Unique impact-resistant material ▪ Water and dust free ▪ Pro water tank ▪ Made of food-grade polyethylene. BPA-free ▪ Can be mounted to the roof rack or used separately ▪ Barbecue gril
Slide 23: New Products for the Marine Business
NEW PRODUCTS FOR THE MARINE BUSINESS OFFERING FOR THE MARINE SERVICE & AFTERMARKET ▪ Xtreme Power Assist Steering System ▪ Expanding to European market ▪ Dometic SeaStar standard Trim Tab System ▪ Expanding into standard product for mass market
Slide 24: Restructuring Program
RESTRUCTURING PROGRAM ▪ Locations ▪ No location affected in the quarter, 22 so far ▪ Employees ▪ No employees affected in the quarter, 804 so far ▪ Costs ▪ SEK 36 m in the quarter, SEK 319 m so far ▪ COVID-19 related travel restrictions combined with strong market demand are slowing down some projec
Slide 25: Sustainability
SUSTAINABILITY POSITIVE DEVELOPMENT DESPITE COVID-19 IMPACTING DEPLOYMENT ▪ LTIFR1 reduced by 26% KPI Focus area Actual Same period 2021 Target ▪ Implementation of Health & Safety guidelines prev. year continues LTIFR People 2.4 3.2 2.0 % female managers People 25% 24% 26% ▪ Share of female managers
Slide 26: Stefan Fristedt, CFO
STEFAN FRISTEDT CFO
Slide 27: Net Sales and EBITA Bridge, SEK m (Q4)
NET SALES AND EBITA BRIDGE, SEK M Q4 2020 TO Q4 2021. EBITA BEFORE I.A.C. ▪ Currency translation and transaction effects ▪ Acquisitions ▪ Dilutive impact from Igloo – a transformational acquisition Volume, price, ▪ Other acquisitions accretive to margins mix, cost, Q4 2020 Currency M&A other Q4 2021
Slide 28: Net Sales and EBITA Bridge, SEK m (Full Year)
NET SALES AND EBITA BRIDGE, SEK M FULL YEAR 2020 TO FULL YEAR 2021. EBITA BEFORE I.A.C. ▪ Negative impact from FX ▪ Acquisitions ▪ Dilutive impact from Igloo – a transformational acquisition Volume, price, ▪ Other acquisitions accretive to margins mix, cost, FY 2020 Currency M&A other FY 2021 ▪ Volu
Slide 29: 2021 Acquisitions
2021 ACQUISITIONS ▪ Included in Dometic 2021 full year financial 2021 proforma sales by Q SEK 6.630 m results 31% ▪ Net sales SEK 2,134 m 25% 23% 21% ▪ EBITA before i.a.c. SEK 298 m (14.0%) ▪ Total pro forma full year 2021 Q1 Q2 Q3 Q4 ▪ Net sales SEK 6,630 m ▪ EBITA bef i.a.c. SEK 661 m (10.0%) Anno
Slide 30: Operating Cash Flow
OPERATING CASH FLOW SEKm 1,600 210% 182 % 1,400 180% 1,200 150% 1,000 103 % 373 120% 800 1,417 1,301 68% 90% 600 1,043 917 875 60% 400 724 546 30% 200 311 346 181 0 84 -20 0% -200 -30% -400 -60% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 Operating
Slide 31: Working Capital
WORKING CAPITAL DAYS, NORMAL CURRENCY DPO DSO 80 76 60 55 70 50 45 60 62 45 50 45 40 40 35 30 30 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2019 2020 2021 DPO quarter DPO LTM DSO quarter DSO LTM SEKm DIO Days 10,000 120 200 105 166 8,000 87 100 150 6,000 121 80 4,000 100 2,
Slide 32: Capex & Research & Development
CAPEX & RESEARCH & DEVELOPMENT (SEKm, % OF NET SALES) CAPEX 200 8 ▪ Q4 2021 CAPEX: 2.8% 2.8% of net sales 150 6% 2.9% (1.7% same period 2020) 100 1.7% 4% 152 114 2% 50 72 77 77 95 68 48 38 0 0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2019 2020 2020 2020 2020 2021 2021 2021 R&D 120 2.5% 2.4% 2.0% 6 ▪ Q4 2021
Slide 33: Cash Flow for the Period
CASH FLOW FOR THE PERIOD SEK m Q4 2021 Q4 2020 ▪ Operating cash flow SEK 546 m (724) EBIT 470 514 ▪ Impacted by supply lead-times, strong demand Adjustments for non-cash items 195 49 and seasonal inventory build-up in Igloo Changes in Working Capital 37 237 Investments in fixed assets -155 -76 ▪ Inv
Slide 34: Debt Maturity Profile and Leverage
DEBT MATURITY PROFILE AND LEVERAGE Debt maturity profile, SEK m USD loans EUR bonds EKN loan ▪ Average maturity 3,8 years (3,3) 2.000 ▪ Undrawn revolving credit facility of EUR 200 m 3,078 3,022 3,078 3,077 1,905 2022 2023 2024 2025 2026 2027 2028 2029 Net debt leverage ▪ Q4 Net debt leverage 2.6x (
Slide 35: New Financial Reporting from Q1 2022
NEW FINANCIAL REPORTING FROM Q1 2022 FROM TO ▪ Marine as a separate segment SEGMENT BUSINESSES SEGMENT BUSINESSES ▪ Igloo and Other global verticals will remain in segment INCLUDED INCLUDED Global Americas - RV ▪ Segments Americas, Asia Pacific and EMEA remain as is Americas - CPV - RV - Outdoor ▪ W
Slide 36: 2021 Dividend Proposal
2021 DIVIDEND PROPOSAL ▪ SEK 2.45 per share proposed by Board of Directors Dividend SEK ▪ 44% of 2021 net profit 38% of 2.45 ▪ Takes into consideration current market conditions and a 2.15 2019 2.30 2.05 prioritization of a continued solid balance sheet to support growth 1.85 and 2020 ambitions comb
Slide 37: Financial Overview
FINANCIAL OVERVIEW DRIVING STRATEGIC AGENDA TO DELIVER OUR FINANCIAL TARGETS Net sales, SEK b EBITA, SEK b Net debt leverage Target 10% growth Target 18-19% Target around 2.5x 25.0 4.0 18% 4.0 15.9% 15.6% 14.8% 16% 20.0 13.8% 13.8% 21.5 14% 3.0 3.3 3.0 3.3 18.3 18.5 2.9 12% 15.0 16.2 2.7 2.8 10% 2.6
Slide 38: Q4 and Full Year Summary
Q4 AND FULL YEAR SUMMARY Business highlights ▪ High market demand – low inventory retail levels ▪ All-time high backlog and 32% sales growth in Q4 and 33% in FY 2021 ▪ Good start for the acquired Igloo business ▪ Supply constraints remain an uncertainty – improvements in several areas Strategic high
Slide 39: Dometic
“> DOMETIC
Slide 40: Disclaimer
DISCLAIMER SOME STATEMENTS HEREIN ARE FORWARD-LOOKING AND THE ACTUAL OUTCOME COULD BE MATERIALLY DIFFERENT. IN ADDITION TO THE FACTORS EXPLICITLY COMMENTED UPON, THE ACTUAL OUTCOME COULD BE MATERIALLY AFFECTED BY OTHER FACTORS, (A) CHANGES IN ECONOMIC, MARKET AND COMPETITIVE CONDITIONS, (B) SUCCESS
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