Fluidra, S.a. · BME:FDR
Fluidra — Non-Deal Roadshow (March 2012)
39 slides from Fluidra's roadshow presentation, March 2012
Slide 1: March 2012
FLUIDRA @eece March 2012
Slide 2: Disclaimer
Disclaimer This document is for information only and does not constitute an offer to sell, exchange or buy, or an invitation to make offers to buy, securities issued by any of the companies mentioned. This financial information has been prepared in accordance with International Financial Reporting S
Slide 3: Table of Contents
Table of Contents 1. Fluidra at a glance 2. Shareholder Structure 3. Business Model 4. 2011 Financial Performance 5. Strategy / Investment Highlights 3
Slide 4: Fluidra at a glance
1 Fluidra at a glance BORRADOR 4
Slide 5: Fluidra at a Glance
Fluidra at a Glance FY2010 FY2011 Guidance 2012E €636 m Rev. (+2%) Strong €581.2m Rev.(+5.6%) €624.0m Rev. (+7.4%) €76m EBITDA (+8%) Financial €64.9m EBITDA (+30.0%) €70.2m EBITDA (+8.1%) €180 -190 m Net Debt (2.4x-2.5 Performance €147.6m Net Debt (-12.9%) €174.2m Net Debt (+18.0%) EBITDA) Interna
Slide 6: Summary Financials
Summary Financials Significant efforts to improve efficiency Centralisation of distribution and commercial platforms, as well as manufacturing facilities Consolidation of manufacturing plants Improvement in top line performance in 2011 and significant EBITDA uplift Sales (€m) EBITDA (€m) & EBITDA Ma
Slide 7: Organizational Structure
Organizational Structure CEO COO CFO NEEMEA SWE P&A Industrial North/East Europe South West ASIA Pacific & Production Middle East Europe America Facilities Africa Pool – Wellness Business Units Water Treatment Marketing Irrigation Fluid Handling 7
Slide 8: Internationalisation and Business Diversification
Internationalisation and Business Diversification Pool and Wellness 1969 70’s 80’s 90’s 2001 -2011 Sales out of Spain 15% 26% 43% 77% with presence in 35 countries ACQUISITIONS - United Kingdom - Salt chlorinators - Austria - Above ground pools - Australia - Electronic cleaners Fluidra is - China (A
Slide 9: Shareholder Structure
2 Shareholder Structure BORRADOR 9 20
Slide 10: Shareholder Structure
Shareholder Structure The renewal of the shareholders’ agreement by the founding families and Banc Sabadell reflects their confidence in Fluidra’s growth strategy and in its future projects Boyser 14.1% Free float 32.5% Edrem 13.5% Founding Families 49.8% Dispur 12.2% Banca Cívica 8.0% Aniol Banc Sa
Slide 11: Corporate Governance
Corporate Governance Mr. Eloi Planes Executive Director Juan Ignacio Deep knowledge of the Equity markets, and the Mr. Oscar Serra Acha – Orbea impact of strategic and corporate decisions on stock Director; Boyser Independent price / markets Director: Europe Former experience includes BBVA Mr. Carle
Slide 12: Business Model
3) Business Model @eece @@ece FLUIDRA 12
Slide 13: Fluidra in the Business Value Chain: an integrated model
Fluidra in the Business Value Chain: an integrated model Manufacturing & Logistics & I+D+I Distributor Pool, Water Treatment, Irrigation and Fluid Handling Local Turn Key Projects Large Spa / Wellness and Distributors/Retailers Industrial Water & Installers Treatment Builders Retailers Installers Re
Slide 14: Overview of Divisions and Business Units
Overview of Divisions and Business Units Divisions NEEMEA SWE AAP Industrial North/East Europe South West America Fluidra Production Middle East Europe Asia Pacific Facilities Africa FY 2011 Revenues €306M €103M €97M €118M €624M (49%) (16%) (16%) (19%) €430M Design, production and distribution of
Slide 15: Distribution Network
Distribution Network 124 branches in 37 countries 2 1 4 1 1 1 11 16 1 1 1 1 11 5 27 10 1 2 1 1 1 7 1 2 6 6 1 1 1 1 1 1 7 1 2 Sant Boi (Spain) China France Russia Australia 15 17
Slide 16: Manufacturing Facilities
Manufacturing Facilities Facilities located mainly in Europe and some in US, China and Australia US Europe China Pool Facility US - New Jersey Water Facility Irrigation Fluid Handling Latam Spain - Metalast Australia Spain - Poltank France Israel China Australia 16 16
Slide 17: Internationally recognized leadership
Internationally recognized leadership Country Market Share (%) Fluidra Other 55% 57% 38% 27% 26% 24% Spain Portugal France UK Italy Australia Market Position #1 #1 #1 #1 #1 #2 17 19
Slide 18: Fluidra's Positioning in the Water Business
Fluidra’s Positioning in the Water Business Zenon Municipality ITT Suez Siemens Pentair Agbar FlowServe Industrial PALL EBARA -GF+ Grunfos Netafim Cuno Toro Aliaxis Commercial Pentair Fluidra’s target markets BWT RainBird Zodiac Culligan Residential Hayward Pool Corp. Components & Distribution & Sys
Slide 19: Financial Performance
4 Financial Performance BORRADOR 19 20
Slide 20: Profit and Loss Account
Profit and Loss Account December FY2010 December 2FY2011 €M % sales €M % sales Evol.11/10 Sales 581,2 100,0% 624,0 100,0% 7,4% Gross Margin 287,6 49,5% 312,4 50,1% 8,6% Opex before Dep.& Amort. 216,9 37,3% 237,2 38,0% 9,3% Provisions for bad debt 5,8 1,0% 5,1 0,8% -12,5% EBITDA 64,9 11,2% 70,2 11,3%
Slide 21: Sales Evolution by Geographical Area
Sales Evolution by Geographical Area Fluidra Sales by Geographical Area Evolution 2010 YTD % 2011 YTD % €M 11/10 Spain 150,0 25,8% 141,2 22,6% -5,9% South Europe - Rest 202,1 34,8% 211,5 33,9% 4,7% Western & Northern Europe 80,1 13,8% 87,2 14,0% 8,9% Eastern Europe 23,9 4,1% 29,4 4,7% 22,9% Asia & A
Slide 22: Sales Evolution by Business Unit
Sales Evolution by Business Unit 2010 YTD % of Total 2011 YTD % of Total Evolution % €M Pool 396,7 68,3% 430,1 68,9% 8,4% - Private 330,9 56,9% 363,7 58,3% 9,9% - Commercial 65,8 11,3% 66,4 10,6% 0,9% Water Treatment 103,8 17,9% 105,2 16,9% 1,4% Irrigation 32,5 5,6% 36,5 5,5% 12,6% Fluid Handling 48
Slide 23: Net Working Capital
Net Working Capital December YTD Net Working Capital (€M) Evolución 2010 2011 €M 11/10 202,4 10,4% 183,4 0,8% Stocks 127,7 141,7 11,0% Organic 185,0 Accounts Receivable 144,4 147,0 1,8% Accounts Payable 88,7 86,3 -2,7% Net Working Capital 183,4 202,4 10,4% 2010 2011 Excellent balance of customer man
Slide 24: Net Financial Debt and Free Cash Flow
Net Financial Debt and Free Cash Flow December YTD Net Financial Debt (€M) Evol. 2010 2011 174,2 €M 11/10 18,0% Net income 15,9 15,1 -0,8 Depreciation (+) 33,4 33,3 -0,1 -10.0% organic Increase (-) / Decrease (+) NWC -3,4 -6,0 -2,6 Capex (organic) -17,6 -21,4 -3,8 147,6 132.9 Free Cash Flow 28,3 21,
Slide 25: Strategy / Investment Highlights
5 Strategy / Investment Highlights BORRADOR 25 29
Slide 26: Strategy
Strategy Worldwide Water company An International pool company with Europe as a main Market 26 26
Slide 27: Strategy guidelines
Strategy guidelines • Focus on emerging markets, both organic and through acquisitions • Build global capabilities • Expand product range for the park driven by sustainability criteria • Increase penetration of irrigation, domestic WT and fluid handling • Develop channels based on current structure
Slide 28: Pool international leadership
Pool international leadership Continued track record of opening 2/3 new branches per annum Organic Focus on LatAm, Asia and Africa Growth Maturity of the market is key Focus on emerging markets with reasonable size Acquisitions Technology “tucks-in” Expand distribution platform Acquisition Acquisiti
Slide 29: Pool international leadership – Aqua Group acquisition
Pool international leadership – Aqua Group acquisition Description Sales by Region • Privately held companies Aquatron (Israel/US) and Aqua Spain Products (US) were set up in the early 1980s RoW 4% 5% • The Group develops, manufactures and sells automatic cleaners for public and private pools US • H
Slide 30: Pool international leadership – Aqua Group rationale
Pool international leadership – Aqua Group rationale Strengthen pool leadership position Leadership in innovative technology Focus on value added product in US • Become market leader with over 40% share • Leadership position in high-value niche reinforcing Aqua’s position with Fluidra’s market. dist
Slide 31: Pool international leadership – Aqua Group rationale
Pool international leadership – Aqua Group rationale Strong value generation Growth in high margin market Solid and reliable synergies • High growth potential due to low product • Introduction of Fluidra value added products penetration of 8% of global park. in the US through Aquatron and Aqua • Rec
Slide 32: Turn Key Projects
Turn Key Projects Business Model Projects worldwide Project size demands Fluidra to be in front of the project together with the installer Distribution network identifies tenders Asphalt Green Ileo Aquatic Parc Shark Village Spa (Qatar) (France) (US) Execution through specialized company Wayfit Mouv
Slide 33: Leverage Distribution Network for Product Diversification
Leverage Distribution Network for Product Diversification Distribution: New branch format Old Model: branch with relatively large storage surface and just want point for customer attention New Model: Self service format, with different areas for training, show room and exhibits • Promotes cross-sell
Slide 34: Fluid Handling in Asia
Fluid Handling in Asia Top Players in the Chinese Market High growth market with attractive dynamics Revenues 2010 (€m) Highly fragmented competitive environment, with local players in valves and control #1 80 segments #2 39 Identified targets lack technologies and are #3 33 focused on basic tube an
Slide 35: Develop Industrial Water Treatment business model
Develop Industrial Water Treatment business model Business Model Mid-size solutions across different fields Mainly turn-key projects to install water treatment plants co-located at the customer’s facilities Focus on growth through international expansion Al Raha Garden (Abu Dabi) Commercial network
Slide 36: Improve Margins and Cash Flow Generation
Improve Margins and Cash Flow Generation Lean Management Program: Key Principles Commitment Potential to Improve Commitment froM senior and middle Aggressive optimization objectives management, as well as employees “Sky is the limit” in terms of potential to Pragmatic approach: focus on “real-life”
Slide 37: Operational Excellence
Operational Excellence Operational Excellence Initiatives Develop regional on-site management structures with local resources Develop Global Organization Increase diversity at all levels of the organization Reinforce training and people management programs Integration of Increase integration and coo
Slide 38: Investment Highlights
Investment Highlights International leadership High Quality Recurrent revenues Business Financial strength and proven flexibility Clear road map to increase shareholder’s value Consolidator in a fragmented market Attractive Industry Growth markets Attractive Lower multiples versus peers Valuation 38
Slide 39: Contact
Contact: Avda. Francesc Macià, 60, planta 20 08208 Sabadell (Barcelona) Tel: +34 902 026 039 / +34 937 243 900 e-mail: investor_relations@fluidra.com BORRADOR 39 20