Flugger Group A/s Class B · OMXCOP:FLUG_B
Flugger Group A/s Class B — Q4 2022/23 Earnings Presentation
18 slides from Flugger Group A/s Class B's earnings presentation, November 2024
Slide 1: Flügger Group Investor presentation Q4 2022/23
Flügger Group Investor presentation Q4 2022/23
Slide 2: Flügger at a glance
Investor presentation Q4 2022/23 Flügger at a glance Key figures FY 2022/23 Flügger’s business model Revenue mDKK EBIT mDKK Production Sales channels Customers Own stores 2.550 43 Franchise stores BtB E-commerce R&D BtC Full-time employees Markets DIY etc. 2.234 17 Brand examples Segment 1 No. facto
Slide 3: Q4 22/23 highlights
Investor presentation Q4 2022/23 Q4 22/23 highlights Revenue (mDKK) EBIT (mDKK) Own & franchise stores (#) -1% n.m. -6% 616 610 375 354 -6 244 244 Own stores 131 110 Franchise Q4 21/22 Q4 22/23 -111 Q4 21/22 Q4 22/23 Q4 21/22 Q4 22/23 Gross Margin (%) EBIT-margin (%) ROCE, LTM (%) -2.4pp 0.0pp +17.1
Slide 4: FY 22/23 highlights
Investor presentation Q4 2022/23 FY 22/23 highlights Revenue (mDKK) EBIT (mDKK) Own & franchise stores (#) +1% +4.9% -6% 2.520 2.550 41 43 375 354 244 244 Own stores 131 110 Franchise FY 21/22 FY 22/23 FY 21/22 FY 22/23 FY 21/22 FY 22/23 Gross Margin (%) EBIT-margin (%) ROCE, LTM (%) -3.6pp +0.1pp 0
Slide 5: Decline in raw material prices, but still at high historical level
Investor presentation Q4 2022/23 Decline in raw material prices, but still at high historical level The sharp increase beginning 2022/23 was not fully passed on in sales prices Chemicals market impacts c. 40% of Flügger raw material costs Gas/energy impacts c. 15% of raw materials costs Weighted ind
Slide 6: Good e-com traction despite tough market conditions
Investor presentation Q4 2022/23 Good e-com traction despite tough markets conditions, and in 2022/23 the commercial footprint expanded with BtC e-com across Nordics and Poland Selected achievements (among a wide range of many great ones) 10% 3.3% 2.9% 0.4% Jan-21 LTM Jan-22 LTM Apr-23 LTM Ambition
Slide 7: Focus on core business
Investor presentation Q4 2022/23 Focus on core business In-house wallpaper brand divested Flügger Lithuania integrated Adjusting Eskaro to circumstances Integration of UAB Daniški dažai (acquired Flügger distributor) Divested to Closed circuit Low activity April 2023 Product collaborations with Segm
Slide 8: Intensified focus on sustainability – 2024 goal already reached!
Investor presentation Q4 2022/23 Intensified focus on sustainability – 2024 goal already reached! of all wet goods sold by Flügger is labelled 82% with Nordic Swan or EU-Ecolabel. c. 90% of Segment 1 products are Swan- and/or Eco-labelled All liquid product categories are included in scope, i.e. in
Slide 9: Net sales increased 1% compared to last year
Investor presentation Q4 2022/23 Net sales increased 1% compared to last year driven by price increases and currency headwind in Eastern markets offset by declining volumes Group sales development Net Sales Net Sales FY revenue effects (mDKK) Revenue Revenue, LTM mDKK LTM mDKK 750 2.700 2.550 700 2.
Slide 10: Segment 1 Own Stores & Resellers: Q4 & FY 22/23
Investor presentation Q4 2022/23 Segment 1 Own Stores & Resellers: Q4 & FY 22/23 Sales development by geography in Segment 1 ▪ Q4 and YTD revenue decreased by 4% Organic Reported and 3% respectively, primarily impacted Revenue (mDKK) Q4 21/22 Currency Q4 22/23 Growth Growth of currency development a
Slide 11: Segment 2 DIY: Q4 & FY 22/23
Investor presentation Q4 2022/23 Segment 2 DIY: Q4 & FY 22/23 Sales development by geography in Segment 2 ▪ Q4 and YTD revenue decreased by 2% Organic Reported Revenue (mDKK) Q4 21/22 Currency Q4 22/23 and 5% respectively, driven by currency Growth Growth development and declining volume. Unicell No
Slide 12: Segment 3 Eskaro Group AB: Q4 & FY 22/23
Investor presentation Q4 2022/23 Segment 3 Eskaro Group AB: Q4 & FY 22/23 Sales development by geography in Segment 3 ▪ Revenue increased in Q4 and YTD by Organic Reported 18% and 28%, due to currency and Revenue (mDKK) Q4 21/22 Currency Q4 22/23 Growth Growth organic growth driven by price Russia 3
Slide 13: EBIT impacted by global economy uncertainty, unfavorable customer mix and higher costs
Investor presentation Q4 2022/23 EBIT impacted by the uncertainty in the global economy, unfavorable customer mix and higher cost levels Group EBIT development EBIT* Adj. EBIT*, quarterly EBIT, LTM EBIT LTM FY EBIT effects (mDKK) mDKK mDKK 150 250 41 43 200 100 150 50 153 100 196 50 0 0 7 -50 -50 38
Slide 14: NIBD impacted by timing effects of working capital, lower earnings and CAPEX
Investor presentation Q4 2022/23 NIBD impacted by timing effects of working capital, lower earnings and CAPEX investments Financial solidity NIBD mDKK NIBD Equity ratio Equity ratio % 1 NIBD development compared to last quarter is driven by 500 100% timing in working capital, hence inventory build-u
Slide 15: Price/earnings ratio driven mainly by write-downs related to Eskaro
Investor presentation Q4 2022/23 Price/earnings ratio driven mainly by write-downs related to Eskaro and the lower earnings Development in price/earnings Stock price incl. reinvested dividends (DKK) P/E Accumulated dividend Dividend/share proposed 78x 900 Stock price, ultimo 800 700 15 15 15 15 15 1
Slide 16: Share price development
Investor presentation Q4 2022/23 Share price development Flügger’s share price development Flügger’s relative share price development (indexed) Share price Share price (DKK) Volume (# of shares) Price indexed Flügger 800 260 Akzo Nobel 240 PPG 220 Sherwin Williams 700 200 180 600 160 140 500 120 100
Slide 17: 2023/24 Guidance: Revenue of 2,500m–2,700m and EBIT of 60–120m
Investor presentation Q4 2022/23 2023/24 Guidance: Revenue of 2,500m–2,700m and EBIT of 60–120m Financial guidance as per annual report announcement Guidance for 2023/24 Revenue 2,500m – 2,700m EBIT 60m – 120m - Company announcement 17
Slide 18: Thank you for listening
Thank you for listening Please contact IR@flugger.com for any further questions or visit flugger.com/investor 18