Flugger Group A/s Class B · OMXCOP:FLUG_B
Flugger Group A/s Class B — Q1 2021/22 Earnings Presentation
17 slides from Flugger Group A/s Class B's earnings presentation, Sep 14, 2021
Slide 1: Financials Q1 21/22 IR presentation
Financials Q1 21/22 IR presentation Q1 August 2021
Slide 2: Flügger Management team
Flügger Management team The management team of Flügger Sune Schnack, CEO Poul Erik Stockfleth, CFO Ulf Schnack, CDO Previous experience Previous experience Previous experience 2
Slide 3: Flügger at a glance
Flügger at a glance Key figures 2020/21 Flügger’s Business model Revenue mDKK EBIT mDKK Production Sales channels Customers 2,162 228 Own stores BtB (2,552*) (258*) Franchise stores E-commerce R&D BtC Full-time employees Markets DIY etc. 1,527 17 Brand examples (2,627*) Segment 1 No. factories No. s
Slide 4: Flügger is an international player within decorative coatings
Flügger is an international player within decorative coatings Largest west markets (revenue DKKm) Largest east markets (revenue DKKm) Denmark = share of Russia Flügger revenue 795 171 #1 #2 #3 #1 #2 #3 Sweden Estonia 604 50 #1 #2 #3 #1 #2 #3 Norway Ukraine 239 117 #1 #2 #3 #1 #2 #4-5 Poland Belarus
Slide 5: Intensifying strategic initiatives will drive profitable growth & efficiency
Intensifying strategic initiatives will drive profitable growth & efficiency Key strategic initiatives towards an EBIT of 350 mDKK in 2023/24 Key strategic targets towards 2023/24 1 VALUE BASED Optimization of pricing across product and segments as Revenue EBIT PRICING well as focusing on margin enh
Slide 6: Q1 21/22 Highlights
Q1 21/22 Highlights Revenue (mDKK) EBIT (mDKK) Own & franchise stores (#) 17% 0% -2% 736 124 124 390 383 629 236 240 Own stores 154 143 Franchise Q1 20/21 Q1 21/22 Q1 20/21 Q1 21/22 Q1 20/21 Q1 21/22 Gross Margin (%) EBIT-margin (%) RoCE (%) -0.9pp +5.5pp -2.8pp 57.1 56.2 19.7 18.9 16.9 13.4 Q1 20/2
Slide 7: Q1 21/22 highlights – confirmation of the strategic direction
Q1 21/22 highlights – confirmation of the strategic direction Flügger Group Results Acquisition of Eskaro & normalization of sales mDKK Q1 21/22 Q1 20/21 Change • Sales is driven by the acquisition of Eskaro & Malgodt.dk Net sales 736 629 17% • Normalization of sales, especially for the consumer seg
Slide 8: Net sales increase mainly driven by acquisition of Eskaro
Net sales increase mainly driven by acquisition of Eskaro Group sales development Net Sales Net Sales LTM Net sales mDKK mDKK mDKK 750 2.400 25 736 700 2.100 126 600 1.800 500 629 6 1.500 400 1.200 300 900 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 20/21 Currency M&A Organic Q
Slide 9: EBIT development is in line with 20/21 level due to normalization of sales
EBIT development is in line with 20/21 level due to normalization of sales after Covid-19 impact LY, price increases in raw materials and costs related to the acquisition of Eskaro Group EBIT development EBIT EBIT mDKK mDKK 150 250 200 6 100 124 124 150 11 50 100 6 50 0 1 0 -50 -50 -100 -100 Q1 Q2 Q
Slide 10: Segment 1 Own Stores & Resellers: Q1 organic growth impacted by normalization
Segment 1 Own Stores & Resellers: Q1 organic growth is mainly impacted by the normalization of sales due to the COVID-19 effect during 21/22 Sales development per geographical segment • Sales to consumers in the Nordics was back at a normalized level compared to Organic Reported Revenue (mDKK) Q1 20
Slide 11: Segment 2 DIY: Q1 21/22 mainly impacted by normalization in sales to consumers
Segment 2 DIY: Q1 21/22 mainly impacted by normalization in sales to consumers. Sales development per geographical segment Organic Reported Revenue (mDKK) Q1 20/21 Currency M&A Q1 21/22 Growth Growth • Sales to private label in DIY stores in the Nordics was back at normalized Unicell Nordic 70 1% 0%
Slide 12: Segment 3 Eskaro Group AB: The acquisition of Eskaro generated 121mDKK
Segment 3 Eskaro Group AB: The acquisition of Eskaro generated 121mDKK in revenue in Q1 21/22 Sales development per geographical segment Organic Reported • Revenue in segment 3 is solely Revenue (mDKK) Q1 20/21 Currency M&A Q1 21/22 Growth Growth generated by the acquisition of Eskaro Eskaro 0 0% 10
Slide 13: Flügger share price development
Flügger share price development Flügger’s share price development Benchmarking to other industry players (indexed) Share price Price indexed 800 Share price (DKK) 764 160 Flügger Volume (# of shares) 140 Akzo Nobel 700 PPG Avg. daily trading volume 1,852 120 % of total B-shares 0.08% Sherwin William
Slide 14: NIBD impacted by the acquisition of Eskaro, but balance sheet remains solid
NIBD impacted by the aquisition of Eskaro, but balance sheet remain as a solid foundation for further possible acquisitions. Financial solidity NIBD* Equity ratio mDKK % 100 80% Balance sheet remain very solid with equity ratio 1 above 45% since 19/20 despite large acquisition 50 60% 40% 20% 0 0% -2
Slide 15: Earnings increase with stock price keeping the P/E stable around 13
Earnings increase with stock price keeping the P/E stable around 13 Development in P/E and stock price Accumulated dividend P/E Stock price incl. reinvested dividends DKK Stock price, ultimo DKK 100 900 800 80 78 700 600 60 500 400 40 37 30 300 27 19 21 200 20 14 13 13 13 100 0 0 12/13 13/14 14/15 1
Slide 16: Return on Capital Employed remain close to 20%
Return on Capital Employed remain close to 20% due to strong profitability and capital efficiency Financial solidity RoCE, EBIT Margin, % % 25% 20% Q1 21/22 EBIT Margin (%) remain solid as 1 expected after normalization of sales and increase in raw materials 20% 15% 10% RoCE is positive impacted by
Slide 17: Guidance for 2021/22
Guidance for 2021/22 Selected financial metrics (DKK) for 2021/22 Key drivers and success factors ▪ Ability to push price increases from raw materials to the costumers Revenue 2,500m – 2,700m ▪ Integration of Eskaro and Malgodt.dk ▪ Successful upgrade of factories in Kolding and Sweden ▪ Keep the sa