Slide 1: Dometic Q3 2024 Report
DOMETIC Q3 2024 REPORT
Slide 2: Juan Vargues, President and CEO
JUAN VARGUES PRESIDENT AND CEO
Slide 3: Q3 2024 Highlights
Q3 2024 HIGHLIGHTS Market development • Continued challenging macroeconomic situation and market conditions, including high interest rates and lower consumer spend • Retail inventories are lower than last year; however customers are cautious building inventories ahead of the low season • OEM remain
Slide 4: Q3 2024 Financial Summary
Q3 2024 FINANCIAL SUMMARY -17% Net sales of SEK 5,647 m, -17% total growth 6,830 • -14% Organic Net Sales • -3% FX EBITA before i.a.c • 0% M&A EBITA before i.a.c. of SEK 483 m, -50% • EBITA margin of 8.6% (14.3%) -50% 5,647 EPS of SEK -6.01 (1.29) 973 • Includes non-cash impairment of SEK 2.0 b Adju
Slide 5: YTD September 2024 Financial Summary
YTD SEPTEMBER 2024 FINANCIAL SUMMARY -12% Net sales of SEK 19,835 m, -12% total growth 22,448 • -11% Organic Net Sales • 0% FX EBITA before i.a.c • 0% M&A EBITA before i.a.c. of SEK 2,321 m, -23% -23% • EBITA margin of 11.7% (13.4%) 19,835 2,997 EPS of SEK -3.77 (4.01) • Includes non-cash impairment
Slide 6: Net Sales Development
NET SALES DEVELOPMENT LTM MSEK Q3 2024 45,000 Net Sales SEK 5,647 m Organic growth -14% 36,000 • LV Americas -23% • LV EMEA -12% • LV APAC -19% 27,000 • Marine -13% • Mobile Cooling Solutions -9% 18,000 • Global Ventures -19% 9,000 0 -14% 0% -3% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 202
Slide 7: Net Sales by Sales Channel
NET SALES BY SALES CHANNEL SEK B 35 30 25 29% 29% 30% • RV OEM 21% Group sales 20 15% • 49% in 2017 9% 11% 27% 10% 28% 15 35% 30% 32% 29% 36% 10 6% 14% 44% 61% 50% 43% 5 57% 41% 54% CPV OEM 21% Marine OEM RV OEM 0 2018 2019 2020 2021 2022 2023 2024 Q3 LTM OEM 2024 Q3 OEM Service & Aftermarket Distri
Slide 8: Service & Aftermarket Net Sales
SERVICE & AFTERMARKET NET SALES Proforma Net sales in constant currency • Year to date organic growth -7% • Q3 organic growth -11% • Decline in all segments but Land Vehicles EMEA • Dealers continue to be cautious building inventories ahead of the low season 10% YoY organic growth 5% • Usage of RVs
Slide 9: EBITA and EBITA Margin before i.a.c
EBITA AND EBITA MARGIN BEFORE I.A.C EBITA before i.a.c last 12 months 11.1% (12.0%) EBITA MSEK margin LTM Q3 2024 1.200 15% 14% EBITA before i.a.c margin 8.6% (14.3%) 1.050 13% • Gross margin negatively impacted by lower 12% net sales and corresponding inefficiencies in 900 11% the supply chain 750
Slide 10: LV Americas Q3 2024
LV AMERICAS Q3 2024 • Net sales SEK 886 m, -26% • Organic growth -23% • Significant decline in Service & Aftermarket compared to a strong Q3 2023 Net sales and EBITA margin before i.a.c. 1,500 6% • Continued challenging situation in OEM 4% 2% • EBITA before i.a.c. SEK -73m (20) 1,000 0% -2% • EBITA
Slide 11: LV EMEA Q3 2024
LV EMEA Q3 2024 • Net sales SEK 1,421 m, -13% • Organic growth -12% • Service & Aftermarket stable • Accelerated decline in OEM Net sales and EBITA margin before i.a.c. 2,000 15% • EBITA before i.a.c. SEK 93 m (207) 1,500 10% • EBITA Margin 6.5% (12.6%) • Inefficiencies in supply chain following sig
Slide 12: LV APAC Q3 2024
LV APAC Q3 2024 • Net sales SEK 298 m, -21% • Organic growth -19% • Significant decline in Service & Aftermarket • Accelerated slowdown in OEM business Net sales and EBITA margin before i.a.c. 400 35% • Reduced RV production in Australia 350 30% 300 25% • EBITA before i.a.c. SEK 77 m (121) 250 20% •
Slide 13: Marine Q3 2024
MARINE Q3 2024 • Net sales SEK 1,277 m, -16% • Organic growth -13% • Single digit decline in Service & Aftermarket • OEM remain significantly below last year despite easier comps Net sales and EBITA margin before i.a.c. 2,000 30% 25% • EBITA before i.a.c. SEK 247 m (367) 1,500 20% • EBITA Margin 19.
Slide 14: Mobile Cooling Solutions Q3 2024
MOBILE COOLING SOLUTIONS Q3 2024 • Net sales SEK 1,242 m, -13% • Organic growth -9% • Temporarily lower sell through combined with retailers focus on managing inventories. Net sales and EBITA margin before i.a.c. 2,500 12% • Igloo continues to gain market shares 10% 2,000 8% • EBITA before i.a.c. SE
Slide 15: Global Ventures Q3 2024
GLOBAL VENTURES Q3 2024 • Net sales SEK 522 m, -22% • Organic growth -19% • Decline in the Residential business • Mobile Power Solutions negatively impacted by lower Net sales and EBITA margin before i.a.c. 800 18% RV and boat production 700 16% 14% 600 • EBITA before i.a.c. SEK 48 m (113) 12% 500 1
Slide 16: Premium Active Cooler – CFX5
MOBILE COOLING SOLUTIONS PREMIUM ACTIVE COOLER – CFX5 • Our best performing electric cooler to date • Combines cutting-edge insulation technology and most powerful compressor • Light-weight and energy efficient • Launched initially in the US and Australia with global availability in Q1 2025
Slide 17: Dometic Soft Cooler – PSC Series
MOBILE COOLING SOLUTIONS DOMETIC SOFT COOLER – PSC SERIES • First soft cooler of new generation with Dometic brand • High-performance insulation, leakproof and airtight seal, with a modern, spacious design • Available in various models, from carry bags to backpacks • Already available globally
Slide 18: Partnership with Volkswagen
VEHICLE BASED ACTIVITIES PARTNERSHIP WITH VOLKSWAGEN • Partner with Volkswagen Commercial Vehicles (VWCV) for their new California World concept. • Dometic camping gear in the California App and its website. • Dometic gear will also available via participating VWCV dealers and online.
Slide 19: Sustainability and Innovation Q3 2024
SUSTAINABILITY AND INNOVATION Q3 2024 LTIFR 1) better than target KPI Focus area Actual Actual Target • Efforts focusing on injury prevention continue last year throughout the organization LTIFR1) People 1.9 1.9 <2.0 Share of female managers People 30% 28% 27% Female representation in management 30%
Slide 20: Stefan Fristedt, CFO
STEFAN FRISTEDT CFO
Slide 21: Q3 2024 Income Statement
Q3 2024 INCOME STATEMENT • Gross profit margin 27.4% (30.5%) Q3 Q3 • Lower volumes leading to supply chain inefficiencies including increased SEK m 2024 2023 factory cost variances and logistic costs Net sales 5,647 6,830 • Operating expenses SEK -1,065 m (-1,110) Gross Profit 1,547 2,083 • Increase
Slide 22: Cash Flow
CASH FLOW Q3 Q3 SEK m 2024 2023 • Operating cash flow SEK 1,269 m (2,125) • Robust performance supported by working capital improvements EBIT -1,673 788 • Income tax paid SEK -237 m (-176) Adjustments for non-cash items 2,179 337 • Timing of payments. Year to date below last year Changes in Working
Slide 23: Robust Operating Cash Flow Compared to a Strong Q3 2023
ROBUST OPERATING CASH FLOW COMPARED TO A STRONG Q3 2023 SEK m 2,299 2,125 1,963 1,417 1,301 1,269 1,117 1,043 917 875 812 724 738 546 488 311 346 294 181 212 84 -20 -398 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2023 2024
Slide 24: Working Capital Days
WORKING CAPITAL DAYS • Working capital last 12 months 30% (32%) of net sales • Inventory balance SEK 6.3 b (7.8) • Number of days 139 (146), gradually decreasing • Continuous actions to optimize Working capital towards target 20% of net sales
Slide 25: Capex and Research & Development
CAPEX AND RESEARCH & DEVELOPMENT Q3 2024 CAPEX 1.7% (1.6%) of net sales • Last 12 months: 2.0% of net sales Q3 2024 R&D 2.7% (2.3%) of net sales • Includes capitalized development expenses of SEK 13 m • Investments in structural growth areas • Last 12 months: 2.5% of net sales
Slide 26: Net Debt to EBITDA Leverage Ratio
NET DEBT TO EBITDA LEVERAGE RATIO Net debt leverage ratio 3.0x (2.9x) and compared to 2.9x in Q2 2024 • Reduced EBITDA partly offset by robust cash flow 3.1 3.2 3.2 3.0 2.8 2.7 2.8 2.8 2.6 2.7 2.9 3.0 3.0 2.9 2.7 3.0 2.9 3.0 • High focus across the organization on protecting 2.4 2.3 2.0 margin and r
Slide 27: Debt Maturity Profile
DEBT MATURITY PROFILE 3.4 4.6 • Amortized USD 100 m on July 1, 2024 1.0 3.4 • Average maturity rate 2.3 years (2.8). 2.7 years 0.8 including extension options 1.0 0.4 0.4 • Average interest rate 4.9% 2024 2025 2026 2027 2028 Commercial papers USD Loans EKN-backed Loan SEK Bonds EUR Bonds
Slide 28: Accelerating Strategy Implementation
ACCELERATING STRATEGY IMPLEMENTATION WILL SUPPORT MARGIN EXPANSION AND RELEASE RESOURCES FOR CONTINUED INVESTMENTS IN STRATEGIC GROWTH AREAS Committed to our strategic agenda - taken significant steps on our transformation journey • Significantly changed sales mix • Growing Product innovation Index
Slide 29: Q3 2024 Summary
Q3 2024 SUMMARY Business highlights • Market remains challenging • Expected to remain tough throughout the year • Retailer inventories are coming down and consumer usage of boats and RVs remains high • Unsatisfied with current profitability levels Strategic highlights • Investing in structural growt
Slide 30: Dometic
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Slide 31: 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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