Ariston Holding Nv · MIL:ARIS
Ariston Holding Nv — H1 2022 Earnings Presentation
23 slides from Ariston Holding Nv's earnings presentation, Aug 3, 2022
Slide 1: First Half 2022 Results Analyst Presentation
2022 FIRST HALF RESULTS ANALYST August 3rd, 2022 PRESENTATION 1
Slide 2: Agenda
AGENDA H1 2022 Results History and Strategy 2021 Sustainability update Disclaimer This document contains forward-looking statements that relate to future events and future operating, economic and financial results of Ariston Group. By their nature, forward-looking statements involve risk and uncerta
Slide 3: Our key investment thesis and how it played out in H1 2022
OUR KEY INVESTMENT THESIS … AND HOW IT PLAYED OUT IN H1 2022 1 2 3 4 5 CHAMPION OF UNIQUELY BALANCED GLOBAL FOOTPRINT OF PROFITABLE GROWTH SOLID FINANCIAL SUSTAINABLE COMMITMENT TO 40+ MARKETS COMBINING STEADY PERFORMANCE AT TOP- COMFORT ACROSS ALL BOTH HOT WATER SUPPORTED BY AN ORGANIC EXPANSION AN
Slide 4: New in H1 2022
NEW IN H1 2022 NIMBUS HEAT PUMPS • Launch of new platform of heat pumps (4th generation) in main European markets, February-June 2022 • Complete range for all residential and light commercial applications (3.5 to 15 kW) • Modular architecture with wide range of options: split or monobloc, with or wi
Slide 5: Q2 2022 & H1 2022 Net Revenue by Division
Q2 2022 & H1 2022 NET REVENUE BY DIVISION 4 KEY COMMENTS €M Q2 2022 Q2 2021 Change o/w M&A Thermal Comfort 534.7 423.9 +26.1% 34.1 • Thermal comfort benefitting the most from the acceleration of energy transition Burners 21.9 22.7 -3.3% • Burners effect from China lockdowns Components 25.8 22.0 +17.
Slide 6: Q2 2022 & H1 2022 Net Revenue by Area
Q2 2022 & H1 2022 NET REVENUE BY AREA 4 KEY COMMENTS €M Q2 2022 Q2 2021 Change o/w M&A Europe 383.3 324.2 +18.2% 1.5 • All areas showing a % growth in the teens (net of M&A) Americas 70.4 59.8 +17.7% 0.5 • Addition of Chromagen a quantum leap for Asia/Pacific & MEA Asia/Pacific & MEA 128.8 84.
Slide 7: H1 2022 Financials
H1 2022 FINANCIALS €M M&A EBIT ADJUSTED & NET WORKING NET REVENUE P R O F I T B E F O R E TA X EBITDA ADJUSTED C A P I TA L +8.1% +16.7% +24.1% 135 1,135 125 11.9% 66 13.7% +89.6% 914 86 1,069 +5.9% 74 7.6% 323 14.2% 8.1% 89 95 9.8% 8.3% 170 9.1% H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 30/06
Slide 8: H1 2022 Condensed Income Statement
H1 2022 CONDENSED INCOME STATEMENT 4 KEY COMMENTS €M H1 2022 H1 2021 Change Net revenue 1,134.5 914.5 +24.1% • Net Revenue increase mainly driven by Thermal Comfort in Europe EBITDA adjusted 135.5 125.3 +8.1% % on net revenue 11.9% 13.7% • Earnings 11.9% higher than H1 2021 adjusting for the one-off
Slide 9: H1 2022 Cash Flow
H1 2022 CASH FLOW 4 KEY COMMENTS €M H1 2022 H1 2021 Change EBITDA 132.7 117.8 +12.7% • Net working capital: • Capital absorption consistent with Provisions and write-downs 7.6 9.3 -18.8% seasonality • Persisting high inventories due to Changes in working capital1 (134.3) (41.8) n.s. inflation and st
Slide 10: Business with a clear seasonality path and one odd year
BUSINESS WITH A CLEAR SEASONALITY PATH … AND ONE ODD YEAR NET REVENUE EBIT ADJUSTED C U M U L AT E D F C F 4 Quarterly weight on FY Quarterly weight on FY Quarterly trend – FY=100% 35% 50% 100% 30% 40% 25% 50% 20% 30% 0% 15% 20% 10% -50% 10% 5% 0% 0% -100% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017-20
Slide 11: Total Net Financial Indebtedness
TOTAL NET FINANCIAL INDEBTEDNESS REFERENCE: ESMA 32-382-1138 GUIDELINES 4 KEY COMMENTS €M 30/06/2022 31/12/2021 30/06/2021 At 30 June 2022: Liquidity 524.9 694.2 376.3 • €500+M additional committed unused credit lines to fuel organic & inorganic growth minus: Current financial indebtedness (89.8) (9
Slide 12: Outlook for the rest of 2022
OUTLOOK FOR THE REST OF 2022 MID-TERM GUIDANCE TOP LINE OVER THE CYCLE: • Double-digit FY organic growth (including FX), above mid-term guidance • MID-SINGLE-DIGIT ORGANIC GROWTH • Signals of demand slowdown, in Americas and some other non-EU markets, do not put 2022 expectations at risk • EBIT-ADJU
Slide 13: Agenda
AGENDA H1 2022 Results History and Strategy 2021 Sustainability update 13
Slide 14: 90+ years of history bringing sustainable comfort to the world
90+ YEARS OF HISTORY BRINGING SUSTAINABLE COMFORT TO THE WORLD “ OUR VISION SUSTAINAB LE COMFORT FOR EVERYONE “ OUR PHILOSOPHY “THERE IS NO VALUE IN THE ECONOMIC SUCCESS OF ANY INDUSTRIAL INITIATIVE UNLESS IT IS ACCOMPANIED BY A COMMITMENT TO SOCIAL PROGRESS” “ OUR MISSION TO BE THE WORLD’S PREFERRE
Slide 15: A global leading player in sustainable comfort
A GLOBAL LEADING PLAYER IN SUSTAINABLE COMFORT €1.99bn €203M 43 REVENUES IN 2021 ADJ. EBIT IN 20211 COUNTRIES OF DIRECT PRESENCE AND 10.2% MARGIN AND 150+ COUNTRIES SERVED1 74% #25 #17 FROM RENEWABLE AND HIGH PRODUCTION SITES AND LARGE M&A AND BOLT ON EFFICIENCY PRODUCTS2 #26 R&D CENTERS1 ACQUISITIO
Slide 16: Champion of sustainable comfort across all stages of the energy transition
1 CHAMPION OF SUSTAINABLE COMFORT ACROSS ALL STAGES OF THE ENERGY TRANSITION SUSTAINABILITY URGENCY H O T WAT E R H E AT I N G HEAT PUMPS AND HYBRID HEAT PUMPS AND 36% SYSTEMS, SOLAR THERMAL HYBRID SYSTEMS RENEWABLE E UROPEAN ENERGY 1 74%2 EMISSIONS COMING FROM SMART WATER HEATERS vs. BUILDINGS 51%3
Slide 17: Uniquely balanced commitment to both heating and hot water
2 UNIQUELY BALANCED COMMITMENT TO BOTH HEATING AND HOT WATER REVENUE SPLIT H O T W AT E R 91% H E AT I N G DIRECT SERVICES & PARTS ELECTRIC ELECTRIC HEAT GAS GAS SOLAR CYLINDERS €2.0 BN REVENUE HYBRID SYSTEMS HEAT PUMP CONDENSING & STANDARD WALL HUNG BOILER INSTANT STORAGE PUMPS STORAGE INSTANT FY 2
Slide 18: Global footprint of 40+ markets supported by an integrated and agile industrial back-end
3 GLOBAL FOOTPRINT OF 40+ MARKETS SUPPORTED BY AN INTEGRATED AND AGILE INDUSTRIAL BACK-END 2021 Revenue 67% 43 DIRECTLY SERVED COUNTRIES Europe 14% Americas ~150 COUNTRIES REACHED 25 PRODUCTION SITES 26 R&D CENTERS 19% Asia/Pacific & MEA Legal seat Headquarters Commercial office Production site R&D
Slide 19: Profitable growth combining steady organic expansion with proven M&A track record
4 PROFITABLE GROWTH COMBINING STEADY ORGANIC EXPANSION WITH PROVEN M&A TRACK RECORD ORGANIC GROWTH INORGANIC GROWTH LOCAL MARKET PROXIMITY #17 LARGE M&A AND BOLT ON ACQUISITIONS SINCE 2014 1 GLOBAL AND AGILE SUPPLY CHAIN + IMPROVED PROFITABILITY OF ACQUIRED COMPANIES AFTER INTEGRATION INNOVATIVE AND
Slide 20: Agenda
AGENDA H1 2022 Results History and Strategy 2021 Sustainability update 20
Slide 21: Sustainability – 2021 update on our ongoing plan
SUSTAINABILITY – 2021 UPDATE ON OUR ONGOING PLAN B ELIEVE IN I NSPIRE THROUGH S TART FROM P EOPLE C OME P ROCEED F ROM S USTAINABILITY E XCELLENCE C USTOMERS F IRST I NTEGRITY % OF REVENUES FROM % OF PRODUCTS THAT % OF MANAGERS COMING DEFINITION OF A STRUCTURED RENEWABLE AND HIGHLY CONNECTIVITY READ
Slide 22: Sustainability – 2021 Taxonomy
SUSTAINABILITY – 2021 TAXONOMY SUSTAINABILITY REPORT EU TAXONOMY GROSS REVENUE FROM HIGH NET REVENUE OPEX CAPEX EFFICIENT AND RENEWABLE PRODUCTS* 36% 34% 74% 49% 51% 64% 66% 26% Renewable & Eligible Activities Eligible OpEx Eligible CapEx High Efficiency Non-Eligible or Non-Eligible or Non-Eligible
Slide 23: Sustainability – our renewed ambition toward 2030: Road to 100
SUSTAINABILITY – OUR RENEWED AMBITION TOWARD 2030: “ROAD TO 100” 9 CORE ENGAGEMENTS 23