Slide 1: Making Water Perform – September 2013
September 2013 MAKING WATER PERFORM FLUIDRA ® @ee-
Slide 2: Disclaimer
Disclaimer This document is for information only and does not constitute an offer to sell, exchange or buy, or an invitation to make offers to buy, securities issued by any of the companies mentioned. This financial information has been prepared in accordance with International Financial Reporting S
Slide 3: Table of Contents
Table of Contents 1. Fluidra at a glance 2. Shareholder Structure 3. Business Model 4. Financial Performance 5. Strategy and Investment Highlights 3
Slide 4: 1. Fluidra at a glance
1. Fluidra at a glance 4
Slide 5: Fluidra at a Glance
Fluidra at a Glance Strong Sales: €628.8m (+0.8%) Financial EBITDA: €72.2m (+2.9%) Performance Net Debt: €180.6m (+2.3%) International leader in distribution of solutions for Pool, Water Treatment, Irrigation and Business Fluid Handling Vertically integrated for Pool, Water Treatment and F
Slide 6: Summary Financials
Summary Financials Improving efficiency • Centralization of distribution and commercial platforms, as well as manufacturing facilities • Consolidation of manufacturing plants Improvement in top line performance and significant EBITDA uplift Sales (€m) EBITDA (€m) & EBITDA Margin 82 '09-12E CAGR: 4.6
Slide 7: 2. Shareholder Structure
2. Shareholder Structure FLUIDRA °
Slide 8: Shareholder Structure
Shareholder Structure The renewal of the shareholders’ agreement by the founding families and Banc Sabadell reflects their confidence in Fluidra’s growth strategy and in its future projects. Boyser 14.1% Free float 32.4% Edrem 13.5% Dispur 12.2% CaixaBank 8.0% Aniol Banc Sabadell 10.1% 9.7% 8
Slide 9: 3. Business Model
3. Business Model 9
Slide 10: Fluidra in the Business Value Chain: an integrated model
Fluidra in the Business Value Chain: an integrated model Manufacturing & Logistics & I+D+i Distributor / B2B Turn Key Projects Pool, Water Treatment, Irrigation and Fluid Handling Spa / Wellness and Industrial Local Large Distributors / Water Treatment Retailers & Installers (B2C; Mass Market) Build
Slide 11: Overview of Divisions and Business Units
Overview of Divisions and Business Units Divisions SOUTH EUROPE EXPANSION ASIA PROJECTS INDUSTRY AMERICA FY 2012 Revenues €628.8M €364M €153M €36M €4M €17M €54M (58%) (24%) (6%) (1%) (3%) (8%) €427M Design, production and distribution of all components for Pool – Wellness (68%) residential or comm
Slide 12: Distribution Network
Distribution Network Rest of the World 11% Spain 20% Asia & Australia 19% East Europe 5% North Europe South Europe 13% 32% Sales by geographical area 80% international sales Factories 125 branches in 41 countries: Alemania, Australia, Austria, Bélgica, Brasil, Bulgaria, Colombia, Chile, China, Chipr
Slide 13: Internationally recognized leadership on Pools
Internationally recognized leadership on Pools Country Market Share (%) on Pool activity Fluidra Other 65% 55% 57% 38% 35% 27% 31% Spain Portugal France UK Italy Middle East Australia Market Position #1 #1 #1 #1 #1 #1 #1 13
Slide 14: Fluidra's Positioning in the Water Business
Fluidra’s Positioning in the Water Business 14
Slide 15: 4. Financial Performance
4. Financial Performance 15
Slide 16: 1H2013 Results - Summary
1H2013 Results - Summary Key magnitudes Sales: adverse weather conditions and drop in June 12 June 13 consumer spending throughout Europe, which could Evol. €M YTD YTD not be offset by international growth. Turnaround in Sales 369,7 344,9 -6,7% July with the improving weather. EBITDA and Net Income:
Slide 17: 1H2013 Results – Consolidated Profit and Loss Account
1H2013 Results – Consolidated Profit and Loss Account June 2012 YTD June 2013 YTD €M % sales €M % sales Evol.13/12 Sales 369,7 100,0% 344,9 100,0% -6,7% Gross Margin 186,7 50,5% 171,6 49,7% -8,1% Opex before Dep.& Amort. 124,2 33,6% 123,9 35,9% -0,2% Provisions for bad debt 3,3 0,9% 3,3 1,0% -0,3% E
Slide 18: 1H2013 Results - Sales by Geographical Area
1H2013 2012 Results - Sales by Geographical Area Fluidra Sales by Geographical Area Evolution 2012 YTD % 2013 YTD % €M 13/12 Spain 81,8 22,1% 73,2 21,2% -10,4% South Europe - Rest 132,8 35,9% 114,9 33,3% -13,5% Central & Northern Europe 52,0 14,1% 46,8 13,6% -10,0% Eastern Europe 16,2 4,4% 17,0 4,9%
Slide 19: 1H2013 Results – Sales by Business Unit
1H2013 Results – Sales by Business Unit Sales by business units Evolution 2012 YTD % of Total 2013 YTD % of Total €M % Pool 249,8 67,6% 232,1 67,3% -7,1% - Private 208,2 56,3% 193,9 56,2% -6,9% - Commercial 41,7 11,3% 38,2 11,1% -8,2% Water Treatment 57,2 15,5% 52,5 15,2% -8,2% Irrigation 20,9 5,6%
Slide 20: 1H2013 Results – Net Working Capital
1H2013 Results – Net Working Capital Net Working Capital (€M) 245,1 June YTD 242,9 First Half 256,2 261,0 Evol. 2012 2013 €M 13/12 Inventory 159,6 156,5 -2,0% Accounts Receivable 244,7 242,4 -1,0% Accounts Payable 148,1 137,9 -6,9% Net Working Capital 256,2 261,0 1,8% 2012 2013 2012 2013 The evoluti
Slide 21: 1H2013 Results – Net Financial Debt and Free Cash Flow
1H2013 Results – Net Financial Debt and Free Cash Flow June YTD 245,1 Net Financial Debt (€M) 2012 2013 Evol. 13/12 242,9 €M First Half 238,8 Net income 23,4 10,5 -12,9 212,8 Depreciation (+) 16,3 17,5 1,3 Increase (-) / Decrease (+) NWC -64,7 -60,2 4,6 Capex (organic) -9,6 -11,5 -1,9 Free Cash Flow
Slide 22: 1H2013 Results – Highlights
1H2013 Results – Highlights FY2012 Guidance 2013 Review Guidance 2013E Revenues: €628.8m (+0.8%) Revenues: +2.5% Revenues: -4/5% €72.2m EBITDA (+2.9%) €74 - 76m EBITDA €54 - 56m EBITDA €180.6m Net Debt (+2.3%) Net Debt/ EBITDA < 2.5x Net Debt/ EBITDA ~ 3x The new 2013 Guidance is based on a sales de
Slide 23: 5. Strategy and Investments Highlights
5.Strategy and Investments Highlights 23
Slide 24: Strategy
Strategy Worldwide Water company serving our customers 2011 An international pool company with Europe as a main market 24
Slide 25: Strategy guidelines
Strategy guidelines Focus on emerging markets, both organic and through acquisitions Build global capabilities Expand product range for the park driven by sustainability criteria Increase penetration of irrigation, domestic WT and fluid handling Develop channels based on current structure Acquisitio
Slide 26: International Leadership
International Leadership • Indonesia: Fluidra has opened a new branch in Jakarta through the acquisitions of Dunian Renang, local trade mark and the second company in this market with a total market share of 20% and € 3M of annual revenues. • Jordan: Fluidra has opened a new branch in Amman. With th
Slide 27: International Leadership
International Leadership • Fluidra acquired VEICO (February 2013), company that makes accessories for pools in the Brazilian state of Santa Caterina. • Veico has a turnover of more than Euro 3M and industrial facilities of 1,500 square meters. Veico - • Veico gives us manufacturing capabilities in a
Slide 28: Product Innovation
Product Innovation • Launch of high range products "Viron" for U.S. and Australian residential markets, consisting of pumps, cartridge filters, control system with touchpad's, air conditioning, etc.. And characterized by a commitment to sustainability, energy efficiency and cutting edge technology,
Slide 29: Product Innovation
Product Innovation • AstralPool MAC is the only compact, modular device in the market that has all the components needed for the physical and chemical control of pool water in the most efficient way possible. • Its smart software enables all settings to be adjusted from a touchscreen and users thus
Slide 30: Leverage Pool Distribution Network
Leverage Pool Distribution Network Distribution: New branch format Old Model: branch with relatively large storage surface and just want point for customer attention New Model: Self service format, with different areas for training, show room and exhibits Promotes cross-selling, becoming a one-stop
Slide 31: Become a player in Industrial FH in Asia
Become a player in Industrial FH in Asia Fluidra • Fluidra closed the signature of a joint venture in China, Fluidra Youli Fluid Systems (Wenzhou), dedicated to fluid handling in the Asian market and Youli an initial focus in the Chinese market •Industrial Fluid Handling - China: fragmented market o
Slide 32: Become a player in Industrial FH in Asia
Become a player in Industrial FH in Asia •Constitution of the Joint Venture (October 2012): Fluidra contributes Euro 4,8M and Youli contributes the manufacturing facility. Fluidra •There are several earn out payments conditional on results up to a maximum limit of Euro 14,9M Youli •2012: Euro 2,1M O
Slide 33: Develop Industrial Water Treatment business model
Develop Industrial Water Treatment business model Business Model Mid-size solutions across different fields Mainly turn-key projects to install water treatment plants co-located at the customer’s facilities Focus on growth through international expansion Al Raha Garden (Abu Dabi) Commercial network
Slide 34: Improve Margins and Cash Flow Generation
Improve Margins and Cash Flow Generation Lean Management Program: Key Principles Commitment Potential to Improve Commitment from senior and middle Aggressive optimization objectives management, as well as employees “Sky is the limit” in terms of potential to Pragmatic approach: focus on “real-life”
Slide 35: Operational Excellence
Operational Excellence • Asia Division, Fluidra has created this new division to promote Asia activities in the Asian market. This new structure will bring Division together the operations on the continent. Presence of Fluidra in Asia 35
Slide 36: Investment Highlights
Investment Highlights International leadership High Quality Recurrent revenues Business Financial strength and proven flexibility Clear road map to increase Consolidator in a fragmented market shareholder’s value Attractive Industry Growth markets Attractive Lower multiples versus peers Valuation 36
Slide 37: Contact
Contact: Avda. Francesc Macià, 60, planta 20 08208 Sabadell (Barcelona) Tel: +34 937 243 900 e-mail: investor_relations@fluidra.com 37