Slide 1: Nilfisk full-year results 2023
Nilfisk full-year results 2023 CONFERENCE CALL PRESENTATION February 15, 2024
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements. Any such statements are subject to risks and uncertainties, and several different factors, of which many are beyond the Group’s control, can mean that the actual development and the actual result will differ significan
Slide 3: Key highlights Q4 2023 and FY2023, Business Plan 2026 update
Key highlights Q4 2023 and FY2023 Business Plan 2026 update 3 Full-year results 2023
Slide 4: Q4 2023: Muted demand
Q4 2023: Muted demand • Service and Specialty grew, strong recovery in Consumer • Challenging climate impacted Professional in North America • Organic growth in APAC, EMEA flattish, Americas declined • EBITDA benefitted from continued gross profit margin expansion • EBITDA margin bsi impacted by mut
Slide 5: FY 2023: Steady progress
FY 2023: Steady progress • Steady progress executing on Business Plan 2026 • We delivered an acceptable set of results for the year, pursuing pockets of growth in a market impacted by a muted demand • Organic revenue growth and an EBITDA margin bsi in line with outlook • 2026 financial targets are c
Slide 6: Steady progress with Business Plan 2026
Steady progress with Business Plan 2026 We invested and built the foundation for long-term sustainable growth in 2022-23 to accelerate from 2024 Develop Grow in Lead with service-as-a-business large-scale markets sustainable products • Growth continued, but tracking behind plans • US organic growth
Slide 7: Product launches in 2023 and new VP300 R coming today
Product launches in 2023 and new VP300 R coming today Strengthened product roadmap during 2022 and 2023 showing first results Lead with sustainable products 2023 launches New VP300 R in Q1 2024 Floorcare Meeting our customers' increased focus on • SC50 1.5 (relaunch) sustainability with an updated V
Slide 8: Accelerating our sustainability efforts
: 2022 and 2023 results Accelerating our sustainability efforts : Target in 2026 Sustainability results for 2023, targets for 2026 and towards 2030 : Target towards 2030 E S G Scope 1 & 2 absolute emission reductions Women in top management EcoVadis rating 2022 2023 30% 26% 35% 34% Equal GOLD 10% 16
Slide 9: Financials
Financials 9 Full-year results 2023
Slide 10: Organic growth flattish, revenue decline primarily driven by FX effects
Organic growth flattish, revenue decline primarily driven by FX effects Revenue (mEUR), organic revenue growth (%) x = Organic growth (%) 1,033.6 1,069.5 mEUR -24.3 -0.3 8.0 1,033.6 Revenue 2023 -8.8 -7.7 -3.1 % -3.4% revenue growth -0.4% -17.3% Organic growth 1,069.5 Branded part of Private Profess
Slide 11: Organic growth impacted by soft EMEA and headwinds in Americas
Organic growth impacted by soft EMEA and headwinds in Americas Revenue (mEUR), organic revenue growth (%) x = Organic growth Branded Professional (%) -0.3% Organic revenue growth 2023 1,070 1,034 967 995 833 1.4% -2.5% 8.3% 2019 2020 2021 2022 2023 366 mEUR 586 mEUR 82 mEUR Americas region EMEA regi
Slide 12: Gross margin improvement continued driven by pricing and freight
Gross margin improvement continued driven by pricing and freight Gross profit (mEUR), gross margin (%) 1.8%-points 40.9% 4.7%-points 40.9% 39.5% -5.1%-points Gross margin 2023 407 403 422 423 347 2019 2020 2021 2022 2023 2022 Pricing & mix Freight & Volume, labor & 2023 42.1% 41.6% 40.5% 39.5% 40.9%
Slide 13: Overhead costs increased driven by merit pay and inflation
Overhead costs increased driven by merit pay and inflation Overhead cost (mEUR), overhead cost ratio (%) 34.0% Sales and distribution Up 8.2 mEUR from 2022, driven 34.0% primarily by merit increases across the salesforce and increased facility expenses Overhead costs ratio 2023 Administration 32.0%
Slide 14: Overhead cost run rate lowered from structural efficiencies
Overhead cost run rate lowered from structural efficiencies Overhead cost (mEUR), overhead cost ratio (%) Overhead cost FY run rate 10.1 mEUR Overhead cost efficiencies realized in 2023 -10 89.9 88.7 86.5 86.3 360 84.7 351 345 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 2023 Inflation, Continued R&D Cost 2023
Slide 15: EBITDA margin bsi supported by pricing offsetting volume and inflation
EBITDA margin bsi supported by pricing offsetting volume and inflation EBITDA bsi (mEUR), EBITDA margin bsi (%) 12.8% EBITDA margin bsi 2023 13.2% 12.8% 144 141 132 118 101 2019 2020 2021 2022 2023 2022 Pricing Freight & Volume & Overhead 2023 12.2% 12.1% 14.5% 13.2% 12.8% distribution raw materials
Slide 16: Significant free cash flow driving solid NIBD and gearing reduction
Significant free cash flow driving solid NIBD and gearing reduction Working capital, CAPEX, cash flow, NIBD (mEUR) and gearing ratio Working capital CAPEX ratio 115.2 -62.5 +0.5pp mEUR Free cash flow 2023 202 4.5 158 176 132 140 3.0 2.5 1.9 2.0 1.8 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 x
Slide 17: Outlook for 2024
Outlook for 2024 17 Full-year results 2023
Slide 18: Outlook for 2024
Outlook for 2024 We expect that both demand and output will 3% to 6% pick up in 2024, leading to volume growth across products and services. The muted demand in North America affecting the second half of 2023 leads to some uncertainty. Organic revenue growth The range for organic revenue growth is e
Slide 19: Q&A
Q&A 19 Full-year results 2023