Elica S.p.a. · MIL:ELC
Elica — FY2023 Earnings Presentation
34 slides from Elica's earnings presentation, Feb 13, 2024
Slide 1: Q4 & FY 2023 Preliminary Results
Q4 & FY 2023 Preliminary Results ANALYSTS PRESENTATION TUESDAY FEBRUARY 13TH, 2024
Slide 2: Agenda
AGENDA 1 Q4 & FY PRELIMINARY RESULTS HIGHLIGHTS 2 INDUSTRY TREND 3 SALES DYNAMICS ECONOMICS 4 & FINANCIALS 5 CLOSING REMARKS 2
Slide 3: FY 2023 Results Highlights
FY 2023 RESULTS HIGHLIGHTS ▪ Cooking: Negative industry demand for the second year in a NET SALES YoY Change row, combined with high promotional activity, a slowdown in 473,2 M€ -75,4 M€ -13,7% the real estate sector and reduced consumer purchasing (organic: -12,8%) power, resulted in a negative pro
Slide 4: Q4 2023 Results Highlights
Q4 2023 RESULTS HIGHLIGHTS NET SALES YoY Change ▪ Q4 results improved on a sequential basis (+7%) compared to 113,0 M€ -16,5 M€ -12,7% Q3 2023. Growth in the North American region in both OEM (organic: -11,0%) and Own Brand cooking compared to LY, the latter driven by the new distribution strategy i
Slide 5: Industry Trend
INDUSTRY TREND 5
Slide 6: EMEA - Cooker Hoods Industry Unit Shipments
EMEA - COOKER HOODS INDUSTRY UNIT SHIPMENTS Volume Data Change % vs LY Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2022 FY 2023 0,0% 0,0% -2,0% -2,0% -4,0% -3% -4,0% -6,0% -6,0% -8,0% -7% -7% -8,0% EMEA* -8% -10,0% -10,0% -9% -10% -10% -12,0% -12,0% -12% -12% -12% -14,0% -14,0
Slide 7: FY 2015-2023 Hoods Sell Out Volumes Trend
FY 2015 - 2023 HOODS SELL OUT VOLUMES TREND HOODS MARKET EU19 (excl. Russia) Units 6,71 15% 9% 10% 4% 5% 2% 2% 5% 6,16 6,10 -3% 0% 6,03 6,05 5,93 -5% 5,81 -8% -10% 5,60 -10% 5,56 2023 Europe Hoods -15% volume at lower level than 2015 -20% -25% FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Slide 8: Higher promotional activity and reduced purchasing power driving negative price/mix
Industry’s higher promotional activity and reduced consumer purchasing power….……driving negative price/mix 2022- 2023 AVERAGE PRICE TREND IN EUROPE (Excl. Russia) HOODS ASPIRATION HOBS +9,2% -1,1% -3,8% +8,3% +4,3% -0,9% +8,9% +6,4% -2,6% -3,5% -0,7% -5,3% -3,2% -4,4% Delta vs LY -7,2% -4,8% Delta v
Slide 9: North America - Ventilation Industry Unit Shipments
NORTH AMERICA – VENTILATION INDUSTRY UNIT SHIPMENTS Volume Data Change % vs LY FY 2023 40,0% 30,0% 20,0% Q1 2023 Q2 2023 Q3 2023 Q4 2023 10,0% 0,0% 0,0% -5,0% -10,0% -20,0% -10,0% -30,0% -21% -15,0% -12% -40,0% NAR* -20,0% -19% -19% -25,0% -30,0% -35,0% -34% -40,0% 9 * SOURCE AHAM and INTERNAL ESTIM
Slide 10: Heating Sector Market Trend - Boilers
HEATING SECTOR MARKET TREND - BOILERS Germany Italy Netherlands UK France Spain Thousand pieces 1400 1200 1000 800 600 400 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 '20 '20 '20 '20 '21 '21 '21 '21 '22 '22 '22 '22 '23 '23 '23 '23 Estimation *Source: EHI – European Heating Industry 10
Slide 11: Sales Dynamic
SALES DYNAMIC 11
Slide 12: Sales Key Drivers
SALES KEY DRIVERS Q4 FY -16,5 M€ -12,7% -75,4 M€ -13,7% 129,5 -14,2 548,6 -70,1 -5,3 -2,3 473,2 113,0 -12,8% -1,0% -11,0% -1,8% M€ M€ Q4 2022 Organic Currency Q4 2023 Organic Currency FY 2023 FY 2022 Net Sales Net Sales Net Sales Net Sales ▪ Cooking: despite persistent weakness in market demand comp
Slide 13: Sales Drivers & Regional Overview
SALES DRIVERS & REGIONAL OVERVIEW Q4 FY -12,7% -13,7% +1,0 -15,3 548,6 -11,7 129,5 -55,8 -2,3 113,0 -7,9 473,2 M€ M€ Q4 2022 Americas Emea Asia Q4 2023 FY 2022 Americas Emea Asia FY 2023 Net Sales Net Sales Net Sales Net Sales Q4 2022 17,3 102,2 10,0 129,5 FY 2022 80,3 429,9 38,4 548,6 Currency -0,6
Slide 14: Sales by Business
SALES BY BUSINESS Q4 FY -12,7% -13,7% 129,5 -6,8 548,6 -18,2 -57,1 -9,7 113,0 473,2 M€ M€ Q4 2022 Motors Cooking Q4 2023 FY 2022 Motors Cooking FY 2023 Net Sales Net Sales Net Sales Net Sales Q4 2022 30,5 99,1 129,5 FY 2022 125,7 422,8 548,6 Currency +0,1 -2,4 -2,3 Currency +0,2 -5,5 -5,3 +0,3% -2,4
Slide 15: Cooking Sales by Brand
COOKING SALES BY BRAND Q4 FY -9,8% -13,5% +0,8 -10,5 99,1 422,8 -34,1 -23,1 89,3 365,7 M€ M€ Q4 2022 OEM OWN BRAND Q4 2023 FY 2022 OEM OWN BRAND FY 2023 Net Sales Net Sales Net Sales Net Sales Q4 2022 35,3 63,8 99,1 FY 2022 177,4 245,4 422,8 Currency -0,2 -2,2 -2,4 Currency -0,3 -5,1 -5,5 -0,7% -3,4
Slide 16: Economics & Financial
16 ECONOMICS & FINANCIAL 16
Slide 17: Margins & Key Result Drivers
MARGINS & KEY RESULT DRIVERS Q4 FY CHANGES vs. PRIOR YEAR €M 2023 2022 % VAR 2023 2022 % VAR Q4 FY NET SALES 113,0 129,5 (12,8)% 473,2 548,6 (13,7)% VOLUME - -- ADJ EBITDA 10,6 13,3 (20,2)% 48,1 56,6 (15,0)% PRICE / MIX -- - % NET SALES 9,4% 10,3% -90 bps 10,2% 10,3% -20 bps RAW MATERIAL INFLATION +
Slide 18: Proactive actions maximizing cash conversion
We Have Taken Proactive actions maximizing cash conversion 5,8% 5,9% 4,4% 4,4% 4,2% 3,0% 3,4% 109 109 107 28 28 101 24 23 21 16 91 13 Dec ' 22 Mar '23 Jun '23 Sept '23 Dec ' 23 2017 2018 2019 2020 2021 2022 2023 Capex M€ % on Net Sales Reduced Inventory value by 10% vs. Last year Optimized investmen
Slide 19: FY 2023 - Net Financial Position
FY 2023 – NET FINANCIAL POSITION €M FY 2023 FY 2022 VAR COMMENTS OPENING NFP 43,9 35,1 (8,8) IFRS16 EFFECT 14,0 12,4 1,6 OPENING NFP NET of IFRS 16 29,9 22,7 (7,2) ▪ Leverage under control despite Sales drop, OPERATING CASH FLOW 37,6 63,8 (26,2) Margin reduction and Cash-out for 16M€: (*) CAPEX (16,
Slide 20: Closing Remarks
CLOSING REMARKS
Slide 21: 3 Years of Turnaround in a Difficult Scenario
3 YEARS OF TURNAROUND IN A DIFFICULT SCENARIO … Saturated Cost of Living Market Crisis Geopolitical Tensions Restrictive Monetary Policies Back to Inventory Normal post Covid-19 2021-2023: execution of a 3 years plan focused … in a dramatic market disruption scenario since on competitiveness & margi
Slide 22: Delivered a Stronger Company
… DELIVERED A STRONGER COMPANY ~91 M€ OPERATING PROFIT Delivering in 3 years the highest performance in Elica history ~40 M€ NET PROFIT (EXCL. MINORITIES) ~8 M€ DIVIDENDS PAID TO SHAREHOLDERS €M FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Numbers Talks: NET SALES 472,4 480,0 452,6 541,3 548,6 47
Slide 23: With a New Set of Weapons
… WITH A NEW SET OF WEAPONS Maintaining focus in defending margins in a worsening market scenario, generating resources to invest in our future: COOKING MOTORS ENLARGED PRODUCT OFFER & SEGMENTS NEW DISTRIBUTORS IN CANADA AND U.S.A. EMC ACQUISTION WIDER DISTRIBUTION NETWORK AND M&A COMMUNICATION AND
Slide 24: Elica runs together with Ducati Corse
ELICA RUNS TOGETHER WITH DUCATI CORSE: SPONSORSHIP SIGNED FOR 2024 MOTOGP CHAMPIONSHIP 24
Slide 25: 2024 Expectations
2024 EXPECTATIONS H1 H2 COMMENTS DEMAND Negative Neutral ▪ Still difficult market environment especially in the heating sector PRICE/MIX Negative Negative ▪ High promotional activity and product mix headwinds INFLATION Positive Positive ▪ Slightly positive net cost saving: negative labour inflation
Slide 26: Priorities 2024 & Beyond
PRIORITIES 2024 & BEYOND ▪ Focus on REVENUE GROWTH: ▪ COOKING Priorities: Defend/Grow Market Shares, phase-in Elica new complete product range, new Elica brand strategy ready to be deployed, phase-in new OEM Customers ▪ MOTOR Priorities: Growth market share, Heat-Pumps, Hydrogen ▪ FOCUS ON COST EFFI
Slide 27: Annex: Financial Highlights
ANNEX: FINANCIAL HIGHLIGHTS 27
Slide 28: Q4 Consolidated Income Statement
Q4 CONSOLIDATED INCOME STATEMENT (*) EPS is calculated by dividing the Net Result pertaining to the Group by the number of ordinary shares outstanding, excluding treasury shares at the same data. 28
Slide 29: FY Consolidated Income Statement
FY CONSOLIDATED INCOME STATEMENT €M FY 23 FY 22 % Net Sales 473.2 548.6 -13.7% EBITDA Adj 48.1 56.6 -15.0% % 10.2% 10.3% -15 bps EBITDA 45.4 50.8 -10.7% % 9.6% 9.3% 33 bps EBIT 21.5 27.3 -21.2% % 4.6% 5.0% -43 bps Net Result 11.3 18.2 -37.9% % 2.4% 3.3% -93 bps EPS* – Euro cents 15.74 26.47 -40.5% (
Slide 30: Net Working Capital
NET WORKING CAPITAL 2 elica a Trade receivables 26.7 48.5 (21.8) % on annualized sales 5.6% 8.8% (320) bps Inventories 90.9 101.5 (10.6) % on annualized sales 19.2% 18.5% 70 bps Trade payables (107.1) (139.6) 32.5 % on annualized sales (22.6)% (25.4)% 280 bps Managerial Working Capital 10.5 10.4 0.2
Slide 31: Consolidated Cash Flow
CONSOLIDATED CASH FLOW €M FY 23 FY 22 Operating Cash Flow 29.5 42.7 Capex (*) (16.1) (23.3) Cash Flow from Financial Activities (24.3) (26.4) A Net Financial Position (10.9) (6.9) 2 elica 31
Slide 32: Consolidated B/S
CONSOLIDATED B/S (*) Including IFRS 16 effect 32
Slide 33: Focus: NRI & Minorities
FOCUS: NRI & MINORITIES RESTRUCTURING COSTS & NRI MINORITIES €M 2023 2022 €M 2023 2022 MINORTY MINORTY Q4 FY Q4 FY SHARES Q4 FY SHARES Q4 FY PATENTS AGREEMENT --- --- --- -3,2 ARIAFINA 49,0% 0,4 1,5 49,0% 0,4 1,6 RESTRUCTURING SG&A 0,6 1,5 1,2 2,2 TOT MINORITIES 0,4 1,5 0,4 1,6 INDUSTRIAL PLAN 0,1 0
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