Dometic Group Ab · OMXSTO:DOM
Dometic Group Ab — Q4 2020 Earnings Presentation
36 slides from Dometic Group Ab's earnings presentation, Feb 3, 2021
Slide 1: Interim Presentation Q4 2020
INTERIM PRESENTATION Q4 2020 February 3, 2021
Slide 2: Juan Vargues, President & CEO
JUAN VARGUES PRESIDENT & CEO “> DOMETIC
Slide 3: Q4 2020 Highlights
Q4 2020 HIGHLIGHTS Market development ▪ Continued strong market conditions and low inventory levels ▪ Strong development in Americas ▪ Growing market demand in EMEA ▪ Recovery in Asia Pacific ▪ Access to key components and freight capacity challenging Performance ▪ Organic sales growth 15% - of whic
Slide 4: Full Year 2020 Highlights
FULL YEAR 2020 HIGHLIGHTS Market development ▪ A challenging year impacted by the COVID-19 outbreak ▪ Lock-downs in the first half ▪ Strong recovery in the second half ▪ Increased end user appetite for outdoor activities ▪ Retail inventory levels low Performance ▪ Organic sales growth -10% ▪ First h
Slide 5: Q4 2020 Financial Summary
Q4 2020 FINANCIAL SUMMARY Net sales of SEK 4,213 m, +8% total growth ▪ +15% organic ▪ -7% FX ▪ 0% M&A EBIT before i.a.c. of SEK 466 m, +56% ▪ EBIT margin of 11.1% (7.6%) ▪ Improvements in all regions EBITDA before i.a.c. of SEK 607 m, +33% Operating cash flow of SEK 724 m, -21% Leverage 2.0x (2.4x),
Slide 6: Sales Growth
SALES GROWTH Quarter 4 2020 SEK 4,213 m, +15% organic growth ▪ Americas +22% ▪ EMEA +7% ▪ Asia Pacific +9% ▪ Whereof Aftermarket +22%
Slide 7: EBIT and EBIT Margin before i.a.c.
EBIT AND EBIT MARGIN BEFORE I.A.C Quarter 4 2020 EBIT margin 11.1% (7.6%) + Sales growth, strong Aftermarket + Less negative impact from US trade tariffs + Cost saving activities ‒ Negative FX evolution ‒ Freight costs
Slide 8: Full Year 2020 Financial Summary
FULL YEAR 2020 FINANCIAL SUMMARY Net sales of SEK 16,207 m, -12% total growth ▪ -10% organic ▪ -2% FX ▪ 0% M&A EBIT before i.a.c. of SEK 1,939 m, -20% ▪ EBIT margin of 12.0% (13.2%) + Pro-actively managing cost base in the light of COVID-19 + Efficiency improvements and pricing + Mix Aftermarket / O
Slide 9: Application Areas
APPLICATION AREAS *Quarter split
Slide 10: Americas
AMERICAS Net sales of SEK 2,246 m, +22% organic ▪ Growth in all application areas ▪ Order backlog remain high ▪ Continued strong development in Aftermarket ▪ Strong growth in automotive OEM contracts EBIT before i.a.c. SEK 255 m, +78% ▪ EBIT margin of 11.4% (7.1%) + Sales growth and mix Aftermarket
Slide 11: EMEA
EMEA Net sales of SEK 1,487 m, +7% organic ▪ Strong growth in Food & Beverage and good growth in Climate and Power & Control ▪ Increased order backlog ▪ Strong OEM development in RV and CPV ▪ Marine: Low demand in OEM, Aftermarket strong EBIT before i.a.c. of SEK 85 m, +43% ▪ EBIT margin of 5.7% (4.
Slide 12: APAC
APAC Net sales of SEK 481 m, +9% organic ▪ Growth in Climate, Food & Beverage and Power & Control ▪ Double digit growth in Asia and good growth in Pacific after lock-downs in the third quarter ▪ Strong OEM development EBIT before i.a.c. of SEK 125 m, +31% ▪ EBIT margin of 25.9% (20.7%) + Sales growt
Slide 13: 2020 Strategy Execution
2020 STRATEGY EXECUTION 1 ▪ Profitable expansion ▪ Strong Aftermarket growth in second half 2020 ▪ Positive market contitions and strong order backlog ▪ Implementing global e-commerce B2C solution 2 ▪ Product leadership ▪ Continuous improvement of Innovation Index, 22% in Q4 ▪ Several new products l
Slide 14: Continued Growth in Online Traffic
CONTINUED GROWTH IN ONLINE TRAFFIC ▪ From 4 to 13 million yearly visits 2016-2020 14 000 000 +50% 12 000 000 13 M 10 000 000 8 000 000 6 000 000 8.6 M 6.5 M 4 000 000 4M 4.5 M 2 000 000 0 Launch of new Dometic.com 2016 2017 2018 2019 2020 Traffic 02/02/2021 14
Slide 15: Steady Growth in Social Media Channels
STEADY GROWTH IN SOCIAL MEDIA CHANNELS 680 Audience 660 640 525k (+6%) 620 600 115k (+61%) 580 560 25k (+123%) Audience Combined social media followers ▪ 02/02/2021 1 5
Slide 16: Outdoor Distribution Channels
OUTDOOR DISTRIBUTION CHANNELS In ~3,500 stores worldwide ~40 pure e-tailer partners dometic.com e-commerce ▪ Presence +15% in one year ▪ Covering our web B2C ▪ Number of visitors +50% in offering 2020 ▪ ~3,000 independent dealers ▪ Presence in all regions ▪ Strong sales growth from ▪ 30 National and
Slide 17: Product Leadership
PRODUCT LEADERSHIP ▪ Accelerated pace of new products to the market ▪ Creates business opportunities and reduces cost ▪ Enabler for Dometic’s ambition to reduce environmental impact and improve resource efficiency throughout the value chain ▪ Both traditional markets and new vertical markets ▪ Produ
Slide 18: New Generation RV Air Conditioners
NEW GENERATION RV AIR CONDITIONERS THE DOMETIC FRESHJET FJX3000 ▪ Rooftop A/C for the RV industry ▪ Modularized and global A/C-product family ▪ Lower noise, better airflow and significantly increased cooling capacity over similar products in the market ▪ Significantly reduced weight ▪ Saves fuel and
Slide 19: Dometic Food Delivery Box
DOMETIC FOOD DELIVERY BOX SUPPORTING THE FAST GROWING FOOD DELIVERY INDUSTRY ▪ To be installed on mopeds and motorcycles ▪ Heating and cooling elements ▪ Air purification ▪ Preserve quality and temperature of restaurant food until it reaches customer ▪ First collaboration with CAKE, a leading off-ro
Slide 20: New Patrol Ice Boxes
NEW PATROL ICE BOXES ANSWERING THE CALL OF OUTDOOR LOVERS ▪ Complements our range of popular passive and active coolers ▪ Designed for a long life of usage under extreme outdoor conditions and travelling ▪ Outstanding insulation ▪ Comes in three sizes and five colors ▪ Available on the market from D
Slide 21: Acquisition of Twin Eagles
ACQUISITION OF TWIN EAGLES BROADENS OFFERING TO THE FAST GROWING RESIDENTIAL OUTDOOR MARKET ▪ US-based manufacturer and distributor of freestanding and built-in grills and outdoor kitchen solutions for the residential outdoor market ▪ Headquarter in Cerritos, California ▪ Main brands Twin Eagles and
Slide 22: Restructuring Program
RESTRUCTURING PROGRAM ▪ Locations ▪ No locations affected in the quarter, 21 so far ▪ Employees ▪ 38 employees affected in the quarter, 778 so far ▪ Costs ▪ SEK 18 m in the quarter, SEK 232 m so far ▪ COVID-19 related travel restrictions combined with strong market demand are slowing down some proje
Slide 23: Stefan Fristedt, CFO
STEFAN FRISTEDT CFO “> DOMETIC
Slide 24: COVID Impact
COVID 19 IMPACT Estimated P&L impact SEK b. Full year 2020 Net Sales Significant impact mainly in the first half of the year Key activities first half 2020 ▪ Closed factories and sales offices EBIT Noticeable impact on profit Mainly due to lower sales in the first half of the year ▪ Ended contracts
Slide 25: Items Affecting Comparability and Taxes
ITEMS AFFECTING COMPARABILITY AND TAXES Items affecting comparability SEK 48 m (-60) Q4 taxes SEK -525 m (-30) ▪ Gain of SEK 66 m related to sale of fixed assets ▪ Impacted by provision for an ongoing foreign tax dispute ▪ Sell and lease back related to previous years ▪ Q4 cash impact SEK 536 m. ▪ P
Slide 26: Cash Flow
CASH FLOW Quarter 4 2020 Operating cash flow SEK 724 m (918) + Improved profit ‒ Increased working capital driven by market demand Cash flow for the period SEK 1,017 m (679) + Sale of certain fixed assets of SEK 536 m + Lower Capex
Slide 27: Working Capital
WORKING CAPITAL DAYS, NORMAL CURRENCY
Slide 28: Capex & Product Development
CAPEX & PRODUCT DEVELOPMENT (SEKm, % OF NET SALES) ▪ Q4 2020 CAPEX: 1.7% of net sales. (2.9% in 2019) ▪ Q4 2020 PD: 2.4% of net sales. (2.5% in 2019) ▪ Includes capitalized development expenses
Slide 29: Net Debt Leverage and Net Debt Details
NET DEBT LEVERAGE AND NET DEBT DETAILS 3,0 3,0 3,2 2,8 2,9 2,7 2,8 2,8 2,4 2,0 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 SEKm Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 RCF 0 0 0 0 0 0 0 0 0 0 EMTN Bonds 3,089 3,077 4,120 7,3
Slide 30: Debt Maturity Profile December 2020
DEBT MATURITY PROFILE DECEMBER 2020
Slide 31: New Financial Reporting from Q1 2021
NEW FINANCIAL REPORTING FROM Q1 2021 From three regions to four sectors ▪ Aligned with organizational change announced in February 2020 and implemented from 2021 From two to three sales channels ▪ OEM remains (Equipment sales through OEM manufacturers) ▪ Aftermarket sales will be split in two: ▪ Dis
Slide 32: 2020 Dividend Proposal
2020 DIVIDEND PROPOSAL ▪ SEK 2.30 per share proposed by Board of Directors Dividend SEK ▪ 38% of 2019 and 2020 combined net profit 2.30 2.05 2.15 ▪ Takes into consideration current market conditions and a 1.85 prioritization of a continued solid balance sheet to support growth 151% 38% of ambitions
Slide 33: Q4 Summary
Q4 SUMMARY Business highlights ▪ Continued strong market demand ▪ End user appetite for staycation and outdoor activities ▪ Organic sales growth 15% and strong order backlog ▪ Foresee coming quarters to be strong ▪ EBIT margin improvement to 11.1% (7.6%) driven by Aftermarket sales growth and effici
Slide 34: Dometic
“> DOMETIC
Slide 35: 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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