Ariston Holding Nv · MIL:ARIS
Ariston Holding Nv — FY2024 Earnings Presentation
39 slides from Ariston Holding Nv's earnings presentation, Mar 5, 2025
Slide 1: Fourth Quarter and Full Year 2024 Results
FOURTH QUARTER AND FULL YEAR 2024 RESULTS 5TH MARCH 2025
Slide 2: Agenda
AGENDA Highlights Financials Management Actions and Outlook Appendix: Company Profile Appendix: Deep Dive into 2024 Financials 2
Slide 3: FY 2024 Results in Line with Guidance, Strong Cash Generation
FY 2024 RESULTS IN LINE WITH GUIDANCE, STRONG CASH GENERATION Net Revenues Adj. EBIT Free Cash Flow Q4 727 €M 63 €M 139 €M -6.8% YoY organic1 8.7% margin vs. 136 €M in 2023 Net Revenues Adj. EBIT Free Cash Flow FY 2,633 €M 160 €M 152 €M -12.7% YoY organic1 6.1% margin vs. 112 €M in 2023 1. Like-for-
Slide 4: FY 2024 Key Achievements
FY 2024 KEY ACHIEVEMENTS 1 2 3 4 5 PROFITABLE GROWTH CHAMPION OF THERMAL UNIQUELY BALANCED ACROSS GLOBAL FOOTPRINT OF 40 COMBINING SOLID FINANCIAL COMFORT ACROSS ALL STAGES CLIMATE COMFORT AND COUNTRIES, INTEGRATED ORGANIC EXPANSION PERFORMANCE, LEAN OF THE ENERGY TRANSITION WATER HEATING AND AGILE
Slide 5: Agenda
AGENDA Highlights Financials Management Actions and Outlook Appendix: Company Profile Appendix: Deep Dive into 2024 Financials 5
Slide 6: Balanced Exposure to Both Climate Comfort and Water Heating Markets
BALANCED EXPOSURE TO BOTH CLIMATE COMFORT AND WATER HEATING MARKETS FY 2024 THERMAL COMFORT DIVISION Climate comfo rt Water Heating 94% Heating Heating Heating Heat Air ~2.6€BN REVENUES Boilers Hybrid systems Pumps Conditioning FY 2024 Electric Heat Pumps Gas Solar storage & instant storage & instan
Slide 7: 2024 European Heating Markets Normalizing After Exceptional Peak
2024 EUROPEAN HEATING MARKETS NORMALIZING AFTER EXCEPTIONAL PEAK ‘000 PCS Germany1 example: Heating generators markets (volume)2 Comments Gas & Oil, solid fuel Heat Pump • Historically (2013-22): +4% volume growth, replacement market, shift to higher efficiency solutions +34% -46% • 2023: exceptiona
Slide 8: Improved Trend in Q4, Also Thanks to Inventories Cleaned Up
IMPROVED TREND IN Q4, ALSO THANKS TO INVENTORIES CLEANED UP NET REVENUES1, €M -7.3% 784 Q4 comments 727 Q4 -6.8% -0.4% • Heating – weak markets, mainly in Heat Pumps in Europe; inventories cleaned up; stable pricing dynamics Q4 2023 Organic FX Q4 2024 • Water heating – stable, with growing electric
Slide 9: European Markets Still Negative, Mainly in Heating
EUROPEAN MARKETS STILL NEGATIVE, MAINLY IN HEATING NET REVENUES1, €M Share of net revenues, %, FY 2024 Europe Asia Pacific & MEA Americas 71% 19% 10% -16.4% 2,224 1,859 -4.9% -10.1% 530 504 561 504 -1.8% +3.9% 275 270 -6.3% 138 143 85 79 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 Q4
Slide 10: Q4 Adj. EBIT Enhanced by Efficiency Initiatives
Q4 ADJ. EBIT ENHANCED BY EFFICIENCY INITIATIVES €M, % OF NET REVENUES Adj. EBIT1 Q4 comments -4.1 p.p. • Margin improved 240bps versus Q3, also thanks to efficiency 308 1.0 initiatives 10.2% 0.9 • Weak markets still leading to negative operating leverage, enhanced 0.8 by destocking, country mix and
Slide 11: Outstanding FCF Generation
OUTSTANDING FCF GENERATION €M Free Cash Flow1 Q4 comments +36.5% • Main levers for FCF improvement: +2.2% 152 160 – Inventories reduction 136 139 – CapEx optimization, as part of our efficiency initiatives 140 • NWC well managed despite volume decreased 112 120 • 116 €M Capex in FY 2024, mainly on d
Slide 12: Stable Net Debt Thanks to Strong FCF Generation
STABLE NET DEBT THANKS TO STRONG FCF GENERATION €M Non-cash items include: MtM, IFRS16 variation and exchange rate effect on the Net Financial Indebtedness -30 152 -63 -12 -29 -22 -575 -579 Adj. net cash/(Debt) FCF Cash outflow Dividends Buyback3 Financial, Non-cash items Adj. net cash/(Debt) 2 31 D
Slide 13: Solid Net Financial Position
SOLID NET FINANCIAL POSITION €M 4 Q4 comments • Non-current bank debt duration at c.4 years: ‒ c.90% of maturities in 2027-2031 Liquidity 461 357 • Low sensitivity to inflation: ~65% of long-term debt at fixed-rate or hedged -960 • Additional 0.9 €BN committed unused credit lines to fuel organic & D
Slide 14: 2025 Distribution Proposal, 33% on 2024 Adjusted Net Profit
2025 DISTRIBUTION PROPOSAL, 33% ON 2024 ADJUSTED NET PROFIT 4 Distribution proposal for approval by the Annual General Meeting on June 3, 2025 Group Net Profit 3 €M Group Net Profit adjusted 89 €M Payout ratio 33% (on adjusted Net Profit) Distribution proposal 29 €M Per Share 8 € cents Payment date
Slide 15: Agenda
AGENDA Highlights Financials Management Actions and Outlook Appendix: Company Profile Appendix: Deep Dive into 2024 Financials 15
Slide 16: Stepping Up Efforts on Efficiency Initiatives
STEPPING UP EFFORTS ON EFFICIENCY INITIATIVES 70-80 €M efficiency initiatives in FY 2024 2025-2027 “Fit-2-Win” program OpEx Immediate impact: • Labor costs: org. optimization, hiring freeze • Indirect costs: travel, rental, services • Technology: developments re-prioritization Goal Simplify operatin
Slide 17: Market Trends: Expected Gradual Improvement
MARKET TRENDS: EXPECTED GRADUAL IMPROVEMENT Geografical exposure % FY 2024 Product exposure 2025 Mid-term net revenues • Heating: gradually improving, with pricing dynamics in line with recent • Market back to historical growth rates Climate comfort: past • Product mix opportunities to drive Europe1
Slide 18: 2025 and Mid-Term Guidance
2025 AND MID-TERM GUIDANCE 2025: reversing the trend, drive internal efficiencies 2025 guidance Mid-term guidance Top line • Mid-single-digit organic • FY: organic revenues between 0% and +3% YoY like-for-like1 growth (assuming neutral FX) Profitability • Adj. EBIT margin improvement to 7+%, thanks
Slide 19: Agenda
AGENDA Highlights Financials Management Actions and Outlook Appendix: Company Profile Appendix: Deep Dive into 2024 Financials 19
Slide 20: Our Equity Story
OUR EQUITY STORY Champion of Thermal Comfort, with solid growth ➢ Balanced presence in Water Heating and Climate Comfort1 ➢ Leading market position in 40 countries worldwide ➢ Focused on residential market – demand driven by replacement in Europe/Americas and penetration in Asia Pacific & MEA ➢ Key
Slide 21: Our Global Presence
OUR GLOBAL PRESENCE FY 2024 AT HOME AROUND THE WORLD FY 2024 NET REVENUES >10k employees 19% ASIA/PACIFIC & MEA 71%1 EUROPE 40 COUNTRIES 160+ MARKETS 10% AMERICAS 28 PRODUCTION SITES 28 R&D CENTERS HEADQUARTERS LEGAL SEAT COMMERCIAL OPERATIONS PRODUCTION SITE PRODUCTION SITE + R&D 1. Main countries:
Slide 22: Story of Solid and Continuous Growth, Organic and Inorganic
STORY OF SOLID AND CONTINUOUS GROWTH, ORGANIC AND INORGANIC Net revenues €M CAGR 2001-24: c.8% 3,092 2,633 2,379 1,987 497 2001 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Note: figures adjusted for non recurring events or transactions, restructuring or employment
Slide 23: Current Regulation in the European Heating Market
CURRENT REGULATION IN THE EUROPEAN HEATING MARKET: SUMMARY OF OUR MAIN COUNTRIES EU: Energy Performance of Buildings Directive (EPBD): Stop incentives for «stand-alone boilers powered by fossil fuels» from 2025. Push towards decarbonisation technologies, reduction of energy consumption of existing b
Slide 24: Serving All Our Customers' Needs with an Extensive Portfolio of Brands
SERVING ALL OUR CUSTOMERS' NEEDS GLOBALLY WITH AN EXTENSIVE PORTFOLIO OF BRANDS STRATEGIC GLOBAL BRANDS The global expert in heating and water The European high end heating solutions The German indoor climate expert which heating, offering a wide range of provider that covers the most advanced offer
Slide 25: Distribution Channels: Mainly B2B2C
DISTRIBUTION CHANNELS: MAINLY B2B2C Sanitary Installers Wholesaler Installers priorities Distributor Re-sellers/Installers • Quality of the relationship • Ease of installation and maintenance Installers End-User • Training • Pre-sales and after-sales support Modern Trade • High efficiency of the pro
Slide 26: Our Relentless Commitment to Sustainability
OUR RELENTLESS COMMITTMENT TO SUSTAINABILITY ENCRYPTED IN OUR DNA… …SHAPING OUR FUTURE .1967 .2023 “There is no value in the economic success of any industrial initiative, unless Releases Road to 100, its ESG roadmap to 2030; it is accompanied by a commitment to social progress”. ARISTIDE MERLONI, F
Slide 27: ESG Achievements in 2024
ESG ACHIEVEMENTS IN 2024 2023 2024 Bronze Medal1 Silver Medal1 Score: 57/100 Score: 68/100 Global CSA Global CSA Ratings Score2 27/100 Score2 39/100 improvement Household Durable CSA Score avg.: 19/100 Building Products CSA Score avg.: 30/100 B3 BBB3 (Household Durable sector) (Building Products sec
Slide 28: Products and Solutions Launched in 2024
PRODUCTS AND SOLUTIONS LAUNCHED IN 2024 NET PRO FOR PROFESSIONALS: NEW FUNCTIONS POWERED BY ARTIFICIAL INTELLIGENCE • Remote assistance platform enriched with new predictive maintenance functionalities for HHP to extend products lifetime, improve customers’ comfort and optimize service schedule • En
Slide 29: Shareholders and Voting Rights
SHAREHOLDERS AND VOTING RIGHTS AS OF 31 DECEMBER 20241 % stake mln shares Merloni Holding Spa Ordinary listed shares 125.5 17.0% Amaranta Srl 2.1% Share capital: 225.0 372.6mln shares 15.4% Centrotec SE 22.1 61.8% Market * Ordinary non-listed shares 3.6% • Centrotec SE: 22.1mln Treasury shares Multi
Slide 30: Agenda
AGENDA Highlights Financials Management Actions and Outlook Appendix: Company Profile Appendix: Deep Dive into 2024 Financials 30
Slide 31: Net Revenues by Division
NET REVENUES BY DIVISION €M1 Share of net revenues, %, FY 2024 Thermal Comfort Burners Components 94% 3% 3% -13.5% 2,848 2,464 -7.4% -3.7% -10.6% 738 683 -3.7% 93 89 -6.8% 88 79 26 25 20 18 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 Q4 FY Q4 FY Q4 FY Q4 comments: Weak demand, mainly
Slide 32: Historical Quarterly Growth by Region
HISTORICAL QUARTERLY GROWTH BY REGION NET REVENUES, YOY 2021 2022 20232 20241 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Europe +6.6% +18.1% +17.5% +18.2% +15.3% +14.1% +16.2% +59.6% +50.8% +46.7% +38.5% +48.5% -18.2% -20.3% -17.1% -10.1% -16.4% Asia Pacific & +5.6% +20.3% +54.0% +52.3% +48.
Slide 33: Historical Seasonality
HISTORICAL SEASONALITY Net revenues Adj. EBIT Cumulated FCF Quarterly weight on FY Quarterly weight on FY Quarterly trend Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1H 9M FY Average 2017-24 Average 2017-24 Average 2017-24 Demand for heating-related products Operating leverage gives margins an The last quarter of th
Slide 34: Q4 Reclassified Income Statement
Q4 RECLASSIFIED INCOME STATEMENT €M 4 Q4 2024 Q4 2023 % change Net revenue 726.7 783.6 (7.3%) EBITDA 71.1 107.2 (33.6%) % margin 9.8% 13.7% Adjusted EBITDA 94.8 113.7 (16.6%) % margin 13.0% 14.5% EBIT 33.7 60.1 (44.0%) % margin 4.6% 7.7% Adjusted EBIT 63.4 85.7 (26.0%) % margin 8.7% 10.9% Note: Aris
Slide 35: FY Income Statement
FY INCOME STATEMENT €M 4 Income statement FY 20241 FY 2023 % change Comments Net revenue 2,632.7 3,091.8 -14.8% EBITDA 203.0 417.1 -51.3% • Reported figures: Ariston Thermo Rus LLC % margin 7.7% 13.5% deconsolidated from end-April in 2024; still in the perimeter in FY 2023 Adjusted EBITDA 276.3 422.
Slide 36: Reclassified FY Cash Flow Statement
RECLASSIFIED FY CASH FLOW STATEMENT €M FY 20241 FY 2023 Change Comments EBITDA 203.0 417.1 (214.1) • Strong NWC reduction cleaned up inventories level, despite sales volume Tax paid (51.2) (74.0) 22.8 decreased • Positive NWC performance (cash Provisions and other changes from operating activities 5
Slide 37: Net Financial Indebtedness
NET FINANCIAL INDEBTEDNESS €M 4 Comments 31/12/2024 1 31/12/2023 • Capital allocation Liquidity 357.1 461.3 ‒ Optimised debt position ‒ 63 €M dividends minus: Current financial indebtedness (148.2) (122.5) ‒ 12 €M buyback • Non-current bank debt duration at 4 years: ‒ c.90% of maturities in 2027-203
Slide 38: Disclaimer
DISCLAIMER The complete 2024 Annual Report, including the CSRD report, will be submitted for approval to the Board at the meeting to be held on April 9th 2025. The auditor’s report is planned for issuance April 9th 2025 upon completion of the audit procedures (CSRD report included). This document co
Slide 39: Thank You
THANK YOU Investor Relations contacts Claudia Introvigne, Martino Bartolucci +39 02 8567 2317 investor.relations@ariston.com We kindly ask you to refrain from printing in order to minimize our impact on the environment. Thank you for your understanding and dedication to our sustainable future.