Arbonia Ag · SIX:ARBN
Arbonia — H1 2018 Earnings Presentation
33 slides from Arbonia's earnings presentation, Aug 14, 2018
Slide 1: First semester results 2018 – 14 August 2018
First semester results 2018 – 14 August 2018 Alexander von Witzleben, Chairman of the Board of Directors, CEO Felix Bodmer, CFO 1
Slide 2: Products and solutions for buildings
Products and solutions for buildings Arbonia as of June 30th 2018 Heating, Ventilation & Sanitary Equipment Windows Doors Air Conditioning Arbonia – First semester results 2018 – 14 August 2018 2
Slide 3: Highlights 2017 – Key achievements
Highlights 2017 Key achievements Disposal of five non core entities1 and non operational real estate Successful portfolio realignment Focus on core divisions (HVAC, Sanitary Equipment, Windows, Doors) Full integration of Successful integration of former Looser Group2 Looser and Koralle Gro
Slide 4: Highlights in the first half of 2018
Highlights in the first half of 2018 Key achievements Successful acquisition of Vasco Group, the market leader for radiators for Benelux, on 16 May 2018 Expansion of Arbonia’s geographical footprint in Benelux Acquisition of Vasco Group and strengthening of the product range in the HVAC division
Slide 5: H1 2018 summary – Overview key metrics
H1 2018 summary Overview key metrics All figures in CHF M Net revenue EBITDA2 Net debt +16%1 6.2% 6.8% 0.3x 1.0x 645.6 558.6 34.5 44.2 2017 H1 2018 H1 2017 H1 2018 H1 2017 H1 2018 -43 -137 EBITDA-margin Leverage ratio Solid revenue performance EBITDA driven by rigorous cost Acquisition of Vasco Grou
Slide 6: H1 2018 summary – Performance by Division
H1 2018 summary Performance by Division All figures in CHF M Sanitary HVAC Equipment Windows Doors +20% +17% +15% 224.5 186.9 +3% 165.7 157.3 181.1 142.2 Net 72.2 74.2 revenues H1 2017 H1 2018 H1 2017 H1 2018 H1 2017 H1 2018 H1 2017 H1 2018 +23% +20% 21.8 -23% 20.6 17.7 17.2 7.5 5.8 EBITDA1 H1 2017
Slide 7: Agenda
Agenda 1. H1 2018 Overview of key financial parameters 2. Transformation of Arbonia Update on key measures 3. Outlook Short- and long-term guidance Questions Arbonia – First semester results 2018 – 14 August 2018 7
Slide 8: Income Statement
Income Statement Including one-time effects In CHF M 1-6/2018 in % 1-6/2017 in % Net revenues 645.6 100.0 558.6 100.0 Cost of material and goods -312.7 -48.4 -267.4 -47.9 Personnel expenses -223.2 -34.6 -200.0 -35.8 Other operating expenses -95.7 -14.8 -86.5 -15.5 EBITDA 44.2 6.8 34.5 6.2 Depreciati
Slide 9: Reconciliation to adjusted numbers
Reconciliation to adjusted numbers 1-6/2018 without Actual one-time In CHF M 1-6/2018 Windows Doors Others effects Net revenues 645.6 645.6 EBITDA 44.2 -4.2 0.4 40.5 EBIT 12.1 8.4 Group result from continuing operations 6.7 0.8 -0.1 -0.7 2.9 Presentation of the respective one-time effects on the imm
Slide 10: Adjusted Income Statement
Adjusted Income Statement Without one-time effects In CHF M 1-6/2018 in % 1-6/20171 in % Net revenues 645.6 100.0 558.6 100.0 Cost of material and goods -312.7 -48.4 -268.0 -48.0 Personnel expenses -223.2 -34.6 -198.3 -35.5 Other operating expenses -95.1 -14.7 -86.9 -15.6 EBITDA 40.5 6.3 35.7 6.4 De
Slide 11: Net Revenues by Division
Net Revenues by Division Balanced portfolio with HVAC being the biggest division Net revenues by Division Net revenues by Division 30/06/2018 31/12/2017 28% 27% 35% 33% 26% 11% 28% 12% HVAC HVAC Sanitary Equipment Sanitary Equipment Windows Windows Doors Doors Arbonia – First semester results 2018 –
Slide 12: Net Revenues by Region
Net Revenues by Region Germany most important market Net revenues by Region Net revenues by Region 30/06/2018 31/12/2017 26% 28% 32% 31% 42% 41% Switzerland Switzerland Germany Germany RoW RoW Arbonia – First semester results 2018 – 14 August 2018 12
Slide 13: Development of Net Revenues by Division
Development of Net Revenues by Division Strong organic growth Net revenues Δ Currency Acqui- 1-6/20181 1-6/20172 Organic as reported sition Year Total Effects Growth3 in CHF M Effects Arbonia 645.6 558.6 +15.6% +6.6% +1.5% +7.5% HVAC 224.5 186.9 +20.2% +7.8% +4.4% +8.1% Sanitary 74.2 72.2 +2.7% +6.4
Slide 14: Organic Growth by Division
Organic Growth by Division Driven by IFRS 15 and price increases Organic Price Volume IFRS 15 Growth1 Effect Effect Effect2 Arbonia +7.5% +3.4% +0.4% +3.7% HVAC +8.1% +2.3% +5.8% Sanitary Equipment -3.7% +1.7% -5.4% Windows +12.3% +5.7% -3.4% +10.0% Doors +7.7% +3.4% +0.2% +4.2% 1 Adjusted for curre
Slide 15: EBITDA- / EBIT-margins per Division
EBITDA- / EBIT-margins per Division1 Material price increases and stronger EUR impact margins 15% 10.4% 10.9% 11.4% 9.5% 9.7% 10% 7.9% EBITDA 5% margin, 0% adjusted -0.3% -1.5% 6/2017 -5% 6/2018 HVAC Sanitary Windows Doors Equipment 15% 10% 7.6% 5.7% 5.4% 5.0% 5.6% 5% 3.8% EBIT margin, 0% 6/2017 adj
Slide 16: Windows Division – Comparable results
Windows Division Comparable results In CHF M H1 2018 H1 2017 Net revenues 165.7 142.2 IFRS 15 -14.31 − Net Revenues adj. 151.4 142.2 EBITDA -2.5 -0.4 IFRS 15 -1.61 − IAS 19 − -2.7 Currency Effect 2.3 − EBITDA adj. -1.8 -3.1 1 Ego Kiefer AG Arbonia – First semester results 2018 – 14 August 2018 16
Slide 17: Balance Sheet
Balance Sheet Increase due to acquisition of Vasco In CHF M 1'600 1'400 Current Current Current liabilities assets assets 22.0% Current 1'200 32.6% 32.9% liabilities 27.3% Non-current 1'000 liabilities 21.0% Non-current liabilities 11.8% 800 600 400 Shareholders' Non-current Non-current equity Share
Slide 18: Free Cash Flow, adjusted
Free Cash Flow, adjusted1 Driven by capital expenditures In CHF M 0 -10 -6 -20 -30 -24 -55 -40 -40 -50 -60 -752 -70 -70 -80 06/2014 06/2015 06/2016 06/2017 06/2018 1 Free cash flow without acquisition / disposal of subsidiaries, adjusted 2 Free cash flow including acquisition / disposal activities A
Slide 19: Net Debt / Leverage Ratio
Net Debt / Leverage Ratio1 Higher due to capex, acquisitions and seasonal effects In CHF M 0 0.0x -22 -50 0.5x -43 -100 1.0x -150 -137 1.5x -175 -200 2.0x -222 -225 -250 2.5x -300 3.0x 2014 2015 2016 06/2017 2017 06/2018 Leverage Ratio Net Debt 1 Leverage ratio = Net debt / EBITDA Arbonia – First se
Slide 20: Agenda
Agenda 1. H1 2018 Overview of key financial parameters 2. Transformation of Arbonia Update on key measures 3. Outlook Short- and long-term guidance Questions Arbonia – First semester results 2018 – 14 August 2018 20
Slide 21: Restructuring and repositioning of Arbonia
Restructuring and repositioning of Arbonia As shown in 2015 Key strategic measures 2015-2018 Objective: Long-term competitiveness in Europe Focus of Arbonia Building supplier Relocation of Focus on Lean production divisional industrial Europe footprint strategies holding Energy efficiency
Slide 22: Corporate development 2018-19
Corporate development 2018-19 Divisional strategies Arbonia Objective: Consolidate position as leading European building supplier 1 State of the art 2 Strong product 3 Growth and production centres and market platforms innovation Best cost country footprint Product platforms New categories Vertical
Slide 23: Divisional strategies – HVAC
Divisional strategies HVAC All figures in CHF M Operational performance H1 2018 Priorities and Outlook 1 State of the art production centres 9.5 9.7 Ramp up new steel panel radiator production in 224.5 186.9 Russia (Stupino) as planned in H1 2019 Revenue EBITDA adj.1 Accomplish productivity impr
Slide 24: Divisional strategies – Sanitary Equipment
Divisional strategies Sanitary Equipment All figures in CHF M Operational performance H1 2018 Priorities and outlook 1 State of the art production centres 10.4 7.9 Establish steady state mode at production site in 72.2 74.2 Plattling (D) (Koralle relocation completion) Revenue EBITDA adj.1 Revie
Slide 25: Divisional strategies – Windows
Divisional strategies Windows All figures in CHF M Operational performance H1 2018 Priorities H2 2018 and outlook 1 State of the art production centres -0.3 -1.5 165.7 Fully ramp-up specialised wood/aluminium 142.2 production competence centre (PCC) in Revenue Thuringia (D) from 5’000m² in 2017 to
Slide 26: Divisional strategies – Doors
Divisional strategies Doors All figures in CHF M Operational performance H1 2018 Priorities and outlook 1 State of the art production centres 10.9 11.4 New equipment needed for premium products 181.1 157.3 being installed at both German plants Revenue Construction of new production line at Polis
Slide 27: Agenda
Agenda 1. H1 2018 Overview of key financial parameters 2. Transformation of Arbonia Update on key measures 3. Outlook Short- and long-term guidance Questions Arbonia – First semester results 2018 – 14 August 2018 27
Slide 28: Outlook for the second half of 2018
Outlook for the second half of 2018 Ambiguous perspectives Upsides: Market position, brand Downsides: Currency, economic awareness, regional coverage underlying, complex internal projects Generally positive economic outlook for Delay in the production ramp-up of Europe for next three years (Germ
Slide 29: Guidance of Arbonia Group
Guidance of Arbonia Group1 Transformation on track, guidance adjusted Guidance 2018 Outlook 2019 Revenue Revenue + 3% organic growth + 3-5% organic growth EBITDA2 EBITDA2 at least CHF 110 M CHF ~125 M Sustainable positive free cash flow and dividend capacity from 2019 1 Assuming a stable to positive
Slide 30: What's next? Arbonia 2020+ strategy
What’s next ? Arbonia 2020+ strategy – in preparation Objective: Consolidate position as leading European building supplier Productivity leadership + speed + digital services + strategic + group to market and tools partnership collaboration new client needs • Urbanisation • Connectivity • Security •
Slide 31: Questions?
Questions? Arbonia – First semester results 2018 – 14 August 2018 31
Slide 32: Disclaimer
Disclaimer Arbonia AG is making great efforts to include accurate and up-to-date information in this document, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim any liability whatsoe
Slide 33: Thank you
ARBONIA @& Thank you 33