Harvia Oyj · OMXHEX:HARVIA
Harvia Oyj — FY2018 Earnings Presentation
24 slides from Harvia Oyj's earnings presentation, Feb 14, 2019
Slide 1: Harvia Plc Financial Statements Bulletin 2018
Harvia Plc Financial Statements Bulletin 2018 14 February 2019 | Tapio Pajuharju, CEO | Ari Vesterinen, CFO
Slide 2: Content
Content 1. Q4 and January–December 2018 in brief 2. Harvia’s strategy 3. Financials Tapio Pajuharju Ari Vesterinen CEO CFO 2
Slide 3: 2018: Steady profitability and investing in growth
2018: Steady profitability and investing in growth • Revenue grew by 3.1% to EUR 61.9 million (60.1). At comparable exchange rates, revenue grew by 4.6%, to EUR 62.9 million. • Adjusted operating profit was EUR 10.9 million (10.7), making up 17.5% (17.8) of the revenue. At comparable exchange rates,
Slide 4: January–December 2018
January–December 2018 • Revenue grew by 3.1% to EUR 61.9 million (60.1). At comparable exchange rates, revenue grew by 4.6%, to EUR 62.9 million. • Adjusted operating profit was EUR 10.9 million (10.7), making up 17.5% (17.8) of the revenue. At comparable exchange rates, the adjusted operating profi
Slide 5: Q4 2018: revenue at the comparable quarter's level
Q4 2018: revenue at the comparable quarter’s level • Revenue grew by 0.5% to EUR 16.2 million (16.1). At comparable exchange rates, revenue grew by 2.1%, to EUR 16.5 million. • Adjusted operating profit was EUR 2.9 million (2.8), making up 17.6% (17.6) of the revenue. At comparable exchange rates, t
Slide 6: Strategic cornerstones
Strategic cornerstones • Geographical expansion progressed as planned during the review period ⎯ In North America, acquisition of the American Almost Heaven Saunas LLC’s business operations at the end of 2018 ⎯ In the EU countries, distribution has been strengthened as planned ⎯ In Russia, continued
Slide 7: Almost Heaven Saunas – one of the leading US companies specialized in sauna and spa
Almost Heaven Saunas – one of the leading US companies specialized in sauna and spa • Revenue USD 8.7 million, EBIT USD -0.3 million in 2017 • Significant step in developing our business in North America • Base to build a better and faster service and a more extensive offering for other Key Customer
Slide 8: Q4: Revenue and adjusted operating profit grew slightly
Q4: Revenue and adjusted operating profit grew slightly Revenue Adjusted operating profit EUR million EUR million 18 3.5 16.416.5 16.116.2 3.2 3.2 16 15,3 14.4 14.0 3 2.8 2.9 14 13.2 2,4 2.5 2.3 2.3 2.3 12 10 2 8 1.5 6 1 4 0.5 2 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2017 2018 2017 2018 • Revenue grew in Finla
Slide 9: 2018: Revenue and adjusted operating profit increased from the previous year
2018: Revenue and adjusted operating profit increased from the previous year Revenue Adjusted operating profit EUR million EUR million 70 60.1 61.9 14 60 50.1 12 10.9 10.7 50 10.1 10 40 8 30 6 20 4 10 2 0 0 2016 2017 2018 2016 2017 2018 • Revenue increased particularly in Finland and in other EU- •
Slide 10: 2018: Geographical split almost the same
2018: Geographical split almost the same Revenue by market area, % Revenue by product group, % 5% 6% 16% 8% 5% 37% 9% 9% 58% 11% 12% 24% Sauna heaters Sauna rooms Finland Other EU countries Germany Control panels Steam generators Russia Other countries North America Spare parts, services and other O
Slide 11: 2018: Revenue grew by 3.1%
2018: Revenue grew by 3.1% Revenue by market area 2017–2018 EUR million 64 24.1% 61.9 62 4.0% 3.8% -5.7% 5.6% -9.1% 2.2% 60.1 60 58 56 54 52 50 2017 Finland Other Germany Other EU Russia North America Other countries * 2018 Scandinavia countries • Revenue increased particularly in Finland, in • The
Slide 12: 2018: Growth in most product groups
2018: Growth in most product groups Revenue by product group 2017–2018 EUR. million 64 11.6% 61.9 62 9.0% -7.8% 7.6% 60.1 1.3% 60 58 56 54 52 50 2017 Sauna heaters Sauna rooms Control panels Steam generators Spare parts, 2018 services and others • Growth in all product groups, when taking into • Esp
Slide 13: Harvia's diverse product offering covers all three sauna types
Harvia’s diverse product offering covers all three sauna types and meets the needs of both private and professional customers 13
Slide 14: Increasing the value of the average purchase
Increasing the value of the average purchase Harvia aims to be the leading player in the Geographical expansion sauna and spa market Productivity improvement 14
Slide 15: Increasing the value of the average purchase continued in Q4
Increasing the value of the average purchase continued in Q4 • The implementation of Harvia’s “one-stop shop” strategy in the sauna and spa business continued as planned • The positive development in sales of infrared saunas, steam generators and spare parts are increasing the value of the average p
Slide 16: Financials
Financials Ari Vesterinen, CFO 16
Slide 17: Key figures
Key figures EUR million 10−12/18 10−12/17 Change,% 2018 2017 Change,% Revenue 16.2 16.1 0.5% 61.9 60.1 3.1% Adjusted EBITDA* 3.4 3.3 2.7% 13.0 12.6 3.1% % of revenue 21.1% 20.6% 21.0% 21.0% Adjusted operating profit** 2.9 2.8 0.4% 10.9 10.7 1.5% % of revenue 17.6% 17.6% 17.5% 17.8% Basic EPS (EUR) 0
Slide 18: Net finance costs decreased significantly during 2018
Net finance costs decreased significantly during 2018 Net debt (EUR million) and leverage (%) Net finance costs, EUR million EUR million % EUR million 2.5 Restructuring costs from bank loans 80 7 and interest rate swaps (EUR -0.8 million) 70 6 2 60 5 50 1.5 4 40 3 1 30 2 20 0.5 10 1 0 0 0 1Q17 2Q17
Slide 19: Investments
Investments Investments in tangible and intangible assets, EUR million EUR. million 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 • The Group’s investments in January–December amounted to EUR 1.6 million (1.2) • A new layout for warehou
Slide 20: Harvia's ten largest shareholders (31 December 2018)
Harvia’s ten largest shareholders (31 December 2018)* Number of shares % of shares 1. CAPMAN BUYOUT X FUND A L.P. 3,247,590 17.37 2. CAPMAN BUYOUT X FUND B Ky 1,358,089 7.27 3. OP-FINLAND SMALL FIRMS FUND 552,031 2.95 4. ODIN FINLAND 474,460 2.54 5. TIIPETI OY – PERTTI HARVIA 429,290 2.30 6. SIJOITU
Slide 21: The distribution of Harvia's shareholders by segment
The distribution of Harvia’s shareholders by segment, 31 December 2018 13% • In the IPO, Harvia gained approximately 2,000 new shareholders. 11% • At the end of 2018, the 41% number of shareholders totaled in 3,248 (including nominee registered) 11% 25% Nominee registered and outside Finland CapMan
Slide 22: Profit distribution EUR 0.37 per share
Profit distribution EUR 0.37 per share Harvia targets a regularly increasing dividend with a bi-annual dividend payout of at least 60 percent of net income, in total. The Board of Directors of Harvia Plc proposes to the Annual General Meeting that a dividend of EUR 0.18 per share be distributed afte
Slide 23: Financial targets and outlook
Financial targets and outlook Growth: Annual revenue growth above five per cent on average Profitability: Adjusted operating profit margin of 20 per cent(1 Leverage ratio: Net debt per adjusted EBITDA in the range of 1.5x–2.5x(2 Harvia does not publish short-term outlook. 1) Operating profit before
Slide 24: Thank you!
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