Slide 1: Dometic Q2 2024 Report
DOMETIC Q2 2024 REPORT
Slide 2: Juan Vargues, President and CEO
JUAN VARGUES PRESIDENT AND CEO
Slide 3: Q2 2024 Highlights
Q2 2024 HIGHLIGHTS Market development • Persistently sluggish market conditions with high interest rates and low consumer spend • Retailer inventories are coming down, however customers are cautious on inventory levels • Demand in OEM remains weak Performance • -8% organic sales growth • Service & A
Slide 4: Q2 2024 Financial Summary
Q2 2024 FINANCIAL SUMMARY -8% Net sales of SEK 7,662 m, -8% total growth 8,329 • -8% Organic Net Sales • 0% FX EBITA before i.a.c • 0% M&A -9% EBITA before i.a.c. of SEK 1,069 m, -9% 7,662 • EBITA margin of 14.0% (14.1%) 1,177 1,069 • Underlying improvement from 13.7% last year EPS SEK 1.39 (1.67),
Slide 5: YTD June 2024 Financial Summary
YTD JUNE 2024 FINANCIAL SUMMARY -9% Net sales of SEK 14,188 m, -9% total growth 15,618 • -10% Organic Net Sales • 1% FX EBITA before i.a.c • 0% M&A EBITA before i.a.c. of SEK 1,838 m, -9% -9% 14,188 • EBITA margin of 13.0% (13.0%) 2,024 • Underlying improvement from 12.7% last year 1,838 EPS SEK 2.2
Slide 6: Net Sales Development
NET SALES DEVELOPMENT LTM MSEK Q2 2024 45,000 Net Sales SEK 7,662 m Organic growth -8% 36,000 By segment • Land Vehicles Americas -13% • Land Vehicles EMEA -6% 27,000 • Land Vehicles APAC -11% • Marine -17% 18,000 • Mobile Cooling Solutions 0% • Global Ventures -5% 9,000 0 -8% Q2 2022 Q3 2022 Q4 202
Slide 7: Net Sales by Sales Channel
NET SALES BY SALES CHANNEL SEK B 35 • RV OEM 22% Group sales 30 • 49% in 2017 25 29% 29% 30% 20 15% 9% 11% 27% 10% 28% 15 35% 28% 30% 32% 36% 6% 10 14% 44% 61% 50% 43% 42% 5 57% 54% CPV OEM 22% Marine OEM RV OEM 0 2018 2019 2020 2021 2022 2023 2024 Q2 LTM OEM 2024 Q2 LTM OEM Service & Aftermarket Di
Slide 8: Service & Aftermarket Net Sales
SERVICE & AFTERMARKET NET SALES Proforma Net sales in constant currency 2022 2019 2023 • Retailer destocking after high consumer demand and large purchases in 2021 and Q1 2022 2024 • Q2 2024 organic growth -1%, recovered as expected • Recovery driven by Land Vehicles Americas and Land Vehicles EMEA
Slide 9: EBITA Margin Before I.A.C.
EBITA MARGIN BEFORE I.A.C. EBITA before i.a.c last 12 months 12.4% (12.0%) EBITA Q2 2024 MSEK margin LTM 1.350 15% EBITA before i.a.c margin 14.0% 14% • Compared with 13.7% in Q2 20231) 1.200 13% • Fourth consecutive quarter with increased 1.050 12% margin 11% • Supported by efficiency improvements
Slide 10: LV Americas Q2 2024
LV AMERICAS Q2 2024 Net sales SEK 1,035 m, -13% • Organic growth -13% • Growth in Service & Aftermarket • Decline in OEM Net sales and EBITA margin before i.a.c. 1,800 8% • RV volumes remain low on a competitive market 6% 1,600 • Prioritizing margin before volume 1,400 4% 2% 1,200 0% 1,000 EBITA bef
Slide 11: LV EMEA Q2 2024
LV EMEA Q2 2024 Net sales SEK 1,810 m, -6% • Organic growth -6% • Growth in Service & Aftermarket • Decline in OEM Net sales and EBITA margin before i.a.c. 2,000 14% • Negative trend in RV industry production 12% • RV registrations up 6% June YTD 1,500 10% 8% 6% EBITA before i.a.c. SEK 248 m (226) 1
Slide 12: LV APAC Q2 2024
LV APAC Q2 2024 Net sales SEK 329 m, -12% • Organic growth -11% • Service & Aftermarket below last year • Growth in Distribution Net sales and EBITA margin before i.a.c. 400 35% • Decline in OEM 350 30% • Reduced RV industry production in Australia after a 300 25% strong 2023 250 20% 200 15% EBITA b
Slide 13: Marine Q2 2024
MARINE Q2 2024 Net sales SEK 1,536 m, -18% • Organic growth -17% • 1H 2023 a tough comparison • Single-digit decline in Service & Aftermarket Net sales and EBITA margin before i.a.c. 2,000 30% • OEM remain lower than last year 25% 1,500 20% EBITA before i.a.c. SEK 359 m (487) • EBITA Margin 23.4% (2
Slide 14: Mobile Cooling Solutions Q2 2024
MOBILE COOLING SOLUTIONS Q2 2024 Net sales SEK 2,256 m, +1% • Organic growth 0% • Recovery continued as expected • Retailer inventories in the US have come down Net sales and EBITA margin before i.a.c. 2,500 12% • Retailer sell through of hard side coolers in the US 10% +2.4% YTD. Igloo +4.3% 2,000
Slide 15: Global Ventures Q2 2024
GLOBAL VENTURES Q2 2024 Net sales SEK 695 m, -5% • Organic growth -5% • Decline driven by Residential Net sales and EBITA margin before i.a.c. 900 18% EBITA before i.a.c. SEK 105 m (114) 800 16% • EBITA Margin 15.1% (15.6%) 700 14% 600 12% • Impacted by lower net sales 500 10% • R&D investments in n
Slide 16: Mobile Cooling Solutions: New Dometic Active Cooler CFX2
MOBILE COOLING SOLUTIONS NEW DOMETIC ACTIVE COOLER - CFX2 • Range expansion to our highly successful Dometic CFX3 series • Introduced in the US first – global availability in Q3 • Available in new color in four different sizes from 28 to 58 liters • Retail prices from $ 600
Slide 17: Vehicle Based Activities: Launch Turbo Cooker and Camp Shelter
VEHICLE BASED Dometic Go Camp Shelter ACTIVITIES LAUNCH - TURBO COOKER AND CAMP SHELTER Cadac Dometic 2 Cook 3 Turbo camping stove • Lightweight stove with turbo burners for strong performance • Reduces gas consumption & boiling time by up to 40% • Available in EMEA and APAC with retail price of €19
Slide 18: Mobile Power Solutions: New Portable Battery PLB15
MOBILE POWER SOLUTIONS NEW PORTABLE BATTERY - PLB15 • Durable but lightweight, powerful 12V output in 180W • A reliable source of power for portable electronic devices such as active coolers, laptops etc • Available in EMEA. Introduction in Americas & APAC in Q3 • Retail price: 279€
Slide 19: Sustainability and Innovation
SUSTAINABILITY AND INNOVATION LTIFR 1) better than target KPI Focus area Actual Actual Target • Efforts focusing on injury prevention continue throughout last year the organization LTIFR1) People 1.9 1.9 <2.0 Share of female managers People 29% 27% 27% Female representation in management 29% CO2 ton
Slide 20: Stefan Fristedt, CFO
STEFAN FRISTEDT CFO
Slide 21: Q2 2024 EBITA Development
Q2 2024 EBITA DEVELOPMENT Underlying margin improved to 14.0% (13.7%) • One-time positive gain in Q2 2023 of SEK 33 m related to Mobile Cooling Solutions Organic + FX EBITA before i.a.c. SEK m (% of net sales) • Organic sales decline SEK 1,177 m SEK 1,069 m • Gross margin improved to 28.3% (28.0%) (
Slide 22: Cash Flow
CASH FLOW Q2 2024 Q2 Q2 • Operating cash flow SEK 1,963 m (2,299) SEK m 2024 2023 • Strong performance supported by reduced inventories and focused activities on working capital EBIT 903 985 management Adjustments for non-cash items 345 573 • Income tax paid SEK -167 m (-209) Changes in Working Capi
Slide 23: Strong Operating Cash Flow
STRONG OPERATING CASH FLOW SEK m 2,299 2,125 1,963 1,417 1,301 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 2019 2020 2021 2022 2023 2024
Slide 24: Working Capital
WORKING CAPITAL • Working capital last 12 months 30% (34%) of net sales • Inventory balance SEK 6.7 b (8.4) • Number of days 141 (153), gradually decreasing • Continuous actions to optimize Working capital towards target 20% of net sales
Slide 25: Capex and Research & Development
CAPEX AND RESEARCH & DEVELOPMENT Q2 2024 CAPEX 0.9% (1.4%) of net sales • Last 12 months: 1.9% of net sales Q2 2024 R&D 2.1% (2.0%) of net sales • Includes capitalized development expenses of SEK 11 m • Investments in structural growth areas • Last 12 months: 2.4% of net sales
Slide 26: Net Debt to EBITDA Leverage Ratio
NET DEBT TO EBITDA LEVERAGE RATIO Net debt leverage ratio 2.9x (3.2x) and compared to 3.0x in Q1 2024 • YoY and sequential improvement driven by strong 3.0 2.8 2.8 3.1 2.9 3.0 3.0 3.2 3.2 2.9 3.0 2.9 operating cash flow 2.7 2.8 2.6 2.7 2.7 2.4 2.3 2.0 • High focus across the organization on protecti
Slide 27: Debt Maturity Profile
DEBT MATURITY PROFILE SEK B June 30, 2024. Average maturity rate 2.2 years • Refinanced the second part of the credit facilities 1.0 agreement with the bank group in March 2024: 1.0 3.4 • The term loan of USD 333 m previously maturing in 2025, was extended until 2027 with option to extend 1+1 year 3
Slide 28: Q2 2024 Summary
Q2 2024 SUMMARY Business highlights • Continued performance improvements • Improved margin, strong operating cash flow and leverage trending down • Net sales recovered in Distribution and Service & Aftermarket • Remains difficult to predict how macroeconomic situation and changed purchasing patterns
Slide 29: Dometic
“> DOMETIC
Slide 30: 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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