Flugger Group A/s Class B · OMXCOP:FLUG_B
Flugger Group A/s Class B — Q3 2022/23 Earnings Presentation
16 slides from Flugger Group A/s Class B's earnings presentation, March 2023
Slide 1: Flügger Group Investor presentation Q3 2022/23
Q4 2021/22 Flügger Group Investor presentation Q3 2022/23
Slide 2: Flügger at a glance
Investor presentation Q3 2022/23 Flügger at a glance Key LTM figures Q3 2022/23 Flügger’s business model Revenue mDKK EBIT* mDKK Production Sales channels Customers Own stores 2,556 66 Franchise stores BtB E-commerce R&D BtC Full-time employees Markets DIY etc. 2,336 17 Brand examples Segment 1 No.
Slide 3: Q3 22/23 highlights
Investor presentation Q3 2022/23 Q3 22/23 highlights Revenue (mDKK) EBIT (mDKK) Own & franchise stores (#) -1% -4% +77% 511 507 371 358 241 244 Own stores -39 130 114 Franchise Q3 21/22 Q3 22/23 -69 Q3 21/22 Q3 22/23 Q3 21/22 Q3 22/23 Gross Margin (%) EBIT-margin (%) ROCE, LTM (%) -2.1pp -16.1pp -5.
Slide 4: YTD 22/23 highlights
Investor presentation Q3 2022/23 YTD 22/23 highlights Revenue (mDKK) EBIT (mDKK) Own & franchise stores (#) +2% -68% -4% 1,904 1,940 152 371 358 49 241 244 Own stores 130 114 Franchise YTD Q3 21/22 YTD Q3 22/23 YTD Q3 21/22 YTD Q3 22/23 YTD Q3 21/22 YTD Q3 22/23 Gross Margin (%) EBIT-margin (%) ROCE
Slide 5: Decline in raw material prices, but gas and energy prices still at a high level
Investor presentation Q3 2022/23 Decline in raw material prices, but gas and energy prices still at a high level in historical context Chemicals market impact c. 42% of Flügger raw material cost base Gas/energy impact c. 15% of raw materials cost base Weighted chemical Price of natural gas +1% 200 i
Slide 6: Demonstrated robustness during the financial crisis, current conditions suggest the bottom has been reached
Investor presentation Q3 2022/23 Demonstrated robustness during the financial crisis with 1.5 years’ recovery time – current conditions suggest ‘the bottom’ has already been reached It took approx. 1.5 years to hit financial bottom in the 2008 financial crisis (effect from Q2’08/09), and 1.5 years t
Slide 7: Net sales increased 2% driven by price increases, offset by declining volumes
Investor presentation Q3 2022/23 Net sales increased 2% compared to last year driven by price increases, however largely offset by declining volumes, and growth in Eastern markets Group sales development Net Sales Net Sales YTD January revenue effects (mDKK) Revenue Revenue, LTM mDKK LTM mDKK 750 2.
Slide 8: Segment 1 Own Stores & Resellers: Q3 & YTD January 22/23
Investor presentation Q3 2022/23 Segment 1 Own Stores & Resellers: Q3 & YTD January 22/23 Sales development by geography in Segment 1 ▪ Q3 and YTD revenue decreased by 3% and 2% respectively, primarily impacted Organic Reported Revenue (mDKK) Q3 21/22 Currency Q3 22/23 of currency development and de
Slide 9: Segment 2 DIY: Q3 & YTD January 22/23
Investor presentation Q3 2022/23 Segment 2 DIY: Q3 & YTD January 22/23 Sales development by geography in Segment 2 ▪ Q3 and YTD revenue decreased by 8% and 7% respectively, driven by currency development and declining volume. Organic Reported Revenue (mDKK) Q3 21/22 Currency Q3 22/23 ▪ The reduction
Slide 10: Segment 3 Eskaro Group AB: Q3 & YTD January 22/23
Investor presentation Q3 2022/23 Segment 3 Eskaro Group AB: Q3 & YTD January 22/23 Sales development by geography in Segment 3 ▪ Revenue increased in Q3 and YTD by 18% and 28%, due to currency and Organic Reported Revenue (mDKK) Q3 21/22 Currency Q3 22/23 organic growth driven by price Growth Growth
Slide 11: EBIT impacted by global economic uncertainty, unfavorable customer mix and higher costs
Investor presentation Q3 2022/23 EBIT impacted by the uncertainty in the global economy, unfavorable customer mix and higher cost levels Group EBIT development EBIT* EBIT, quarterly Adj. EBIT, LTM EBIT LTM YTD January EBIT effects (mDKK) mDKK mDKK 150 250 152 200 100 150 111 50 100 50 0 49 2 0 -50 3
Slide 12: NIBD impacted by working capital timing, lower earnings and CAPEX investments
Investor presentation Q3 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 13: Price/earnings ratio driven mainly by write-downs related to Eskaro and lower earnings
Investor presentation Q3 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 78x 900 Accumulated dividend Dividend/share proposed Stock price, ultimo 800 700 15 15 15 15 15 1
Slide 14: Share price development
Investor presentation Q3 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 15: 2022/23 Guidance: Revenue of 2.500m-2.700m and EBIT of 50-80m
Investor presentation Q3 2022/23 2022/23 Guidance: Revenue of 2.500m-2.700m and EBIT of 50-80m Financial guidance confirmed as of Q3-22/23 announcement Guidance unchanged from update 11 November 2022 Revenue 2,500m – 2,700m EBIT 50m – 80m Previous range 100m-150m - Company announcement 15
Slide 16: Thank you for listening
Thank you for listening Please contact IR@flugger.com for any further questions or visit flugger.com/investor 16