Slide 1: Nilfisk Q2 Interim Report 2018 Webcast presentation
Nilfisk Q2 Interim Report 2018 Webcast presentation – August 14
Slide 2: Agenda
Agenda 1 Highlights 2 Business unit update 3 Financials 4 Outlook 2018 5 Q&A 2 Nilfisk Q2 Interim Report 2018
Slide 3: Strong financial performance in Q2
Strong financial performance in Q2 Financial highlights • Strong financial performance with organic growth of 5.8%, driven by positive sentiment in four out of five operating segments • Strong gross margin of 42.8%, demonstrating consistent improvement • Strong operating performance*) of 12.5% • Cos
Slide 4: Simplification of the business: Execution on plan
Simplification of the business: Execution on plan Actions • Strategic review of Outdoor expected to be concluded in Q3 • Strategic review of restoration business initiated and expected to be concluded in Q3 • Implementation of product pruning leading to a reduction of +40% of our product platforms p
Slide 5: Agenda
Agenda 1 Highlights 2 Business unit update 3 Financials 4 Outlook 2018 5 Q&A 5 Nilfisk Q2 Interim Report 2018
Slide 6: EMEA: Strong organic growth
EMEA: Strong organic growth Comments • Strong organic growth in Q2 of 4.8% • Strong recovery in Germany with double-digit organic growth in Q2 • Overall strong development in the private label business, Eastern Europe, Spain, and France • Benelux behind expectations due to lower service activity • U
Slide 7: AMERICAS: Unsatisfactory growth
AMERICAS: Unsatisfactory growth Comments • Flat organic growth in Q2 in Americas • US improved over Q2, but had flat growth. Below expectations due to: – a strategy change from a large dealer – a shift in business activity towards industrial floorcare equipment – timing of strategic account wins – l
Slide 8: APAC: Reasonable momentum given ongoing changes
APAC: Reasonable momentum given ongoing changes Comments • Organic growth in Q2 of 2.2% • China continued to post double-digit growth and Japan also showed double-digit growth • Growth partly off-set by Australia • Gross margin in Q2 of 42.9%, up 0.7 percentage point compared to Q1 2018 • Several le
Slide 9: Specialty Professional: Exceptional growth
Specialty Professional: Exceptional growth Comments • Strong organic growth in Q2 of 18.7% • Continued growth in Industrial Vacuum Solutions driven by high demand in the food and pharma industry • Strong growth in the Nilfisk Food business due to a significant order. New partnership agreement signed
Slide 10: Specialty Consumer: Strong growth and stabilization of business
Specialty Consumer: Strong growth and stabilization of business Comments • Strong organic growth in Q2 of 14.3% (H1: 1.5%) • Successful high pressure washer season with strong Q2 sales driven by the DIY segment in Germany • Focus on EBITDA improvements paid off with increase in H1 EBITDA from 7.4% i
Slide 11: Agenda
Agenda 1 Highlights 2 Business unit update 3 Financials 4 Outlook 2018 5 Q&A 11 Nilfisk Q2 Interim Report 2018
Slide 12: Strong continued gross margin journey
Strong continued gross margin journey Comments 42.8% • Strong gross margin of 42.8% demonstrating 42.2% 42.4% 41.9% consistent improvement 40.9% 41.0% 40.8% • Positive impact from: – capacity utilization in factories – product mix in the professional business – cost saving program • Partly off-set b
Slide 13: Strong EBITDA margin in Q2
Strong EBITDA margin in Q2 Comments +2.2 +0.4 12.5 11.9 12.3 • Strong operating performance of 12.5% 10.3 • Gross margin improvement of 0.4 percentage point and overhead cost ratio, excluding depreciation/amortization, improvement of 1.8 percentage points • Overhead cost in control: – overhead cost
Slide 14: Cost saving program on track
Cost saving program on track Full potential Comments 2017 2018 2018 2019 2020 EUR million Realized H1 Expected Expected Expected end 2020 • In Q2 2018, a further 5mEUR of the program is executed. In total 28 mEUR attained: Annual accumulated impact on EBITDA before special items related – Overhead r
Slide 15: Working capital and RoCE
Working capital and RoCE 20.0% 19.2% 17.6% 17.0% 17.5% Comments 16.2% Working Capital ratio LTM • Working capital ratio 17.5%, slightly above expected normalized level – increased local inventories – increased accounts receivables FY 2014 FY 2015 FY 2016 FY 2017 Q1 2018 Q2 2018 • RoCE of 14.7% below
Slide 16: Agenda
Agenda 1 Highlights 2 Business unit update 3 Financials 4 Outlook 2018 5 Q&A 16 Nilfisk Q2 Interim Report 2018
Slide 17: Outlook 2018 – unchanged
Outlook 2018 – unchanged Organic EBITDA margin revenue growth before special items 3.0%-4.0% 11.5%-12.0% 2018 guidance 2018 guidance 17 Nilfisk Q2 Interim Report 2018
Slide 18: Agenda
Agenda 1 Highlights 2 Business unit update 3 Financials 4 Outlook 2018 5 Q&A 18 Nilfisk Q2 Interim Report 2018
Slide 19: Q&A
Q&A Page 19 Nilfisk Q2 Interim Report 2018
Slide 20: Forward-looking statements
Forward-looking statements This presentation and related comments contain forward-looking statements. Such statements are subject to many uncertainties and risks, as various factors, of which several are beyond Nilfisk Holding’s control, may cause that the actual development and results differ mater