Dometic Group Ab · OMXSTO:DOM
Dometic Group Ab — Q2 2020 Earnings Presentation
29 slides from Dometic Group Ab's earnings presentation, Jul 16, 2020
Slide 1: Interim Presentation Q2 2020
INTERIM PRESENTATION Q2 2020 July 16, 2020
Slide 2: Juan Vargues, President & CEO
JUAN VARGUES, PRESIDENT & CEO
Slide 3: Q2 2020 Highlights
Q2 2020 HIGHLIGHTS Market development ▪ Unprecedent trading environment in all main markets due to the spread of COVID-19 in April and May. ▪ Faster recovery than expected. ▪ June at the same level as last year with strong Aftermarket sales. Performance ▪ Strong focus on cost reductions and cash flo
Slide 4: Q2 2020 Financial Summary
Q2 2020 FINANCIAL SUMMARY Net sales of SEK 3,329 m, -38% total growth ▪ -38% organic NET SALES AND EBIT BEFORE I.A.C. ▪ 0% FX SEKm SEKm ▪ 0% M&A Net sales ▪ COVID-19 impact of around SEK -1.9 billion 5,500 -38% 1,500 5,000 1,250 EBIT before i.a.c. of SEK 361 m, -60% 4,500 ▪ EBIT margin of 10.9% (16.
Slide 5: YTD 2020 Financial Summary
YTD 2020 FINANCIAL SUMMARY Net sales of SEK 7,527 m, -25% total growth ▪ -27% organic NET SALES AND EBIT BEFORE I.A.C. ▪ +2% FX SEKm SEKm ▪ 0% M&A Net sales ▪ COVID-19 impact of around SEK -2.3 billion 11,000 -25% 3,000 10,000 EBIT before i.a.c. of SEK 783 m, -48% 9,000 2,500 ▪ EBIT margin of 10.4%
Slide 6: Application Areas
APPLICATION AREAS FOOD & BEVERAGE -19% CLIMATE -14% SALES SPLIT, (-22% CC) (-17% CC) APPLICATION AREA* 6,000 8,500 5,500 8,000 7,500 5,000 7,000 4,500 6,500 4,000 6,000 Jun Sep Dec Mar Jun Sep Dec Mar Jun Jun Sep Dec Mar Jun Sep Dec Mar Jun 2018 2019 2020 2018 2019 2020 POWER & CONTROL -12% OTHER AP
Slide 7: Sales Growth
SALES GROWTH Total growth SEKm 40% 20,000 36% 32% 19,000 28% 18,000 24% 20% 17,000 16% 12% 16,000 8% 15,000 4% 0% 14,000 -4% -8% 13,000 -12% 12,000 -16% -20% 11,000 -24% -28% 10,000 -32% 9,000 -36% -40% 8,000 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Organic M&A net Net
Slide 8: EBIT and EBIT Margin before i.a.c.
EBIT AND EBIT MARGIN BEFORE I.A.C. EBIT RUN RATE 10.6% (14.2%) SEKm EBIT-margin 1,200 18% 1,050 17% 900 16% 750 15% 600 14% 450 13% 300 12% 150 11% 0 10% Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 EBIT EBIT margin, rolling 12 months
Slide 9: Americas
AMERICAS Net sales of SEK 1,553 m, -41% organic NET SALES AND EBIT MARGIN BEFORE I.A.C. ▪ Food & Beverage, Climate and Power & 2,800 21.0% Control reported negative growth as a result 2,400 18.0% of the spread of COVID-19. ▪ Growth for mobile cooling. OEM, 51% 2,000 15.0% AM, 49% ▪ Launched new Outd
Slide 10: EMEA
EMEA Net sales of SEK 1,445 m, -37% organic NET SALES AND EBIT MARGIN BEFORE I.A.C. ▪ Food & Beverage, Climate and Power & Control 2,400 24.0% reported negative growth as a result of the 2,100 21.0% spread of COVID-19. 1,800 18.0% ▪ Launched new B2C e-commerce platform in 9 OEM, 37% countries. AM, 6
Slide 11: APAC
APAC Net sales of SEK 321 m, -21% organic NET SALES AND EBIT MARGIN BEFORE I.A.C. ▪ Food & Beverage, Climate and Power & Control 600 36.0% reported negative growth as a result of the spread of COVID-19. 500 30.0% ▪ Changed geographical mix OEM, 49% 400 24.0% AM, 51% ▪ Launched new Outdoor program. 3
Slide 12: The Staycation Trend Yields Significant Growth Opportunities
THE STAYCATION TREND YIELDS SIGNIFICANT GROWTH OPPORTUNITIES ▪ Increasing trend in USA for many years: ▪ 64% increase (2014-2017) in number of Americans going camping (>three times/year)* ▪ Significant growth in younger consumer groups (millennials stand for 40% of campers in US)* ▪ A new global rea
Slide 13: Dometic Well Positioned for Growth in the Outdoor Market
DOMETIC WELL POSITIONED FOR GROWTH IN THE OUTDOOR MARKET ▪ Leading global position within the RV and Marine-related outdoor market ▪ We have the knowledge, heritage, and trust of providing solutions that solve the consumers´ essential needs when spending time outdoors ▪ Now also addressing the total
Slide 14: The Leading Vehicle Based Outdoor Brand
THE LEADING VEHICLE BASED OUTDOOR BRAND VACATION More than 3 days STAYCATION 1-3 days 4 MAJOR PRODUCT CATEGORIES DRIVE THE OUTDOOR EXPANSION TILL NOW All launched during last R12 ACTIVITY ▪ Pow ered coolers Over the day ▪ Inflatable camping tents ▪ Rooftop tents ▪ Outdoor cooking
Slide 15: A Growing VBA Outdoor Assortment
A GROWING VBA* OUTDOOR ASSORTMENT OTHERS CLIMATE OUTDOOR OUTDOOR VBA VBA FOOD & POWER & BEVERAGE CONTROL 600+ We have expanded the already broad outdoor portfolio w ith 600+ new outdoor products the last 12 m onths (inflatable tents, roof top tents, sleeping accessories, *VBA – Vehicle Based Activit
Slide 16: Dometic Present in Leading Outdoor Retail Chains Globally
DOMETIC PRESENT IN LEADING OUTDOOR RETAIL CHAINS GLOBALLY ▪ 36 new stores in progress to be opened in REI and a 300% revenue growth in REI ▪ +205% growth YTD in own B2C US e-commerce channels ▪ Steady increase in amount of stores in Australian and NZ Outdoor Retail (+200 new stores as target) ▪ Laun
Slide 17: Strong Growth in Online Traffic
STRONG GROWTH IN ONLINE TRAFFIC TARGET TO REACH 10 MILLIONS GLOBAL VISITORS 2020 Visitors to Visitors to Dometic.com Dometic.com 12,000,000 1,400,000 10,000,000 1,200,000 1,000,000 8,000,000 800,000 6,000,000 600,000 4,000,000 400,000 2,000,000 Traffic 200,000 2020 0 Forecast 0 2019 2016 2020 Jan Fe
Slide 18: Restructuring Program
RESTRUCTURING PROGRAM Locations ▪ 3 locations affected in the quarter ▪ 17 locations affected in total so far Employees ▪ Approximately 230 employees affected in the quarter ▪ Approximately 730 employees affected in total so far Costs ▪ SEK 61 m in the quarter ▪ SEK 261 m so far
Slide 19: Q2 Strategy Execution
Q2 STRATEGY EXECUTION 1 Profitable expansion ▪ Increased overall focus on Aftermarket growth ▪ Launched Outdoor program in Australia and US ▪ Launched new B2C online stores in EMEA and strong growth in US from low base 2 Product leadership ▪ Improvement of Innovation Index ▪ 600 new Outdoor products
Slide 20: Stefan Fristedt, CFO
STEFAN FRISTEDT, CFO Mobile living made easy. “> DOMETIC
Slide 21: COVID-19 Impact
COVID-19 IMPACT Implemented activities to reduce the impact from Government grants COVID-19 pandemic on the financial result: Received governmental support which has been recorded in the income statement. • Closed factories and sales offices. • Short term work/ furlough, kurzarbeit or forced vacatio
Slide 22: Working Capital Development
WORKING CAPITAL DEVELOPMENT SEKm 1,000 23.5% 23.5% 23.3% 25% 800 ▪ Average CWC/LTM net sales: 20% 23.3 % 600 400 15% 716 587 491 200 355 253 10% 0 -149 -90 -200 -443 -556 5% -400 -600 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2019 2019 2019 2019 2020 2020 Average core WC / LTM sales Impact on CF
Slide 23: Working Capital
WORKING CAPITAL DAYS, NORMAL CURRENCY DPO DSO 60 60 50 50 56 51 52 50 48 47 40 40 30 30 20 20 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020 2018 2019 2020 DPO quarter DPO LTM DSO quarter DSO LTM DIO 160 140 120 120 112 101 100 80 60 40 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2020
Slide 24: Capex & Product Development
CAPEX & PRODUCT DEVELOPMENT (SEKm, % OF NET SALES) CAPEX 140 2.4% 7% 120 6% 100 1.7% 5% 80 4% ▪ Q2 2020 CAPEX: 60 127 117 114 3% 1.3% of net sales. 100 1.3% 40 86 90 71 74 2% (1.7% in 2019) 20 43 1% 0 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2019 2019 2019 2019 2020 2020 PD 120 6% 2.0% 100 1.7%
Slide 25: Cash Flow
CASH FLOW SEKm 1,600 250% 1,400 200% 1,200 129% 150% 373 90% 1,000 100% 61% 800 50% 1,417 1,301 600 0% 943 859 918 400 844 -50% 200 -100% 311 181 0 84 -150% -200 -200% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2019 2019 2019 2019 2020 2020 Operating cash flow Cash conversion
Slide 26: Net Debt Leverage and Net Debt Details
NET DEBT LEVERAGE AND NET DEBT DETAILS NET DEBT 4.00 3.34 3.15 Signed a new EKN-backed 3.00 2.83 2.95 2.85 3.00 2.68 2.82 credit facility of SEK 2 billion 2.40 with a maturity of three years. 2.00 1.00 0.00 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2019 2019 2019 2019 2020 2020 SEKm Q2 2018 Q3 2018
Slide 27: Debt Maturity Profile March 2020
DEBT MATURITY PROFILE MARCH 2020 3,500 3,155 3,130* 3,155 USD Loans 3,000 New EKN Loan 2,500 1,972 2000 EUR Bonds 2,000 SEK Bond 1,500 1,000 1,000 500 0 0 0 2020 2021 2022 2023 2024 2025 2026 SEKm Maturities 2020 2021 2022 2023 2024 2025 2026 Total USD Loans 0 0 0 0 1,972 3,130 0 5,102 EUR Bonds 0 0
Slide 28: Q2 2020 Summary
Q2 2020 SUMMARY Business highlights ▪ Unprecedent challenging situation due to the spread of the COVID-19 in April and May but fast recovery in June. ▪ Rapid capacity adaptation to market demand. ▪ Working to reduce trade tariff exposure. ▪ Solid results despite challenging market situation. ▪ Expec
Slide 29: Mobile living made easy. Dometic
Mobile living made easy. “> DOMETIC