Harvia Oyj · OMXHEX:HARVIA
Harvia Oyj — Q3 2024 Earnings Presentation
31 slides from Harvia Oyj's earnings presentation, Nov 7, 2024
Slide 1: Harvia Q3 2024: Growing both organically and through M&A, strong profitability
Harvia Plc Interim report | January−September 2024 HARVIA Q3 2024: Harvia PLC Interim Report | January-June 2024 GROWING BOTH ORGANICALLY Strong profitability ― AND THROUGH M&A, Good growth outside Europe STRONG PROFITABILITY Matias Järnefelt, CEO | Ari Vesterinen, CFO | 8 August 2024 Matias Järnefe
Slide 2: Welcome! Agenda for today
Welcome! Agenda for today Matias Järnefelt, CEO • Highlights of Q3/2024 business and financial performance • Strategy implementation Ari Vesterinen, CFO • Financial performance details in Q3/2024 2 Copyright © 2024 Harvia Plc
Slide 3: Q3 2024 highlights
Q3 2024 highlights Both organic and inorganic growth • Revenue increased by 14.0% to EUR 38.7 million, organic revenue growth was 7.9% • Strong growth in North America and APAC & MEA, also Continental Europe gradually improving, but market in Northern Europe remained challenging • Acquisition of U.S
Slide 4: In July, Harvia acquired ThermaSol, a manufacturer of high-end steam solutions in the U.S.
In July, Harvia acquired ThermaSol, a manufacturer of high-end steam solutions in the U.S. • Harvia signed an agreement to acquire ThermaSol on 22 Examples of ThermaSol’s offering July 2024. The deal was closed on 31 July. • The acquisition complements Harvia’s offering in the steam segment and supp
Slide 5: Q3 2024 key figures
Q3 2024 key figures Revenue Adjusted operating profit Operating free cash flow 38.7 (34.0) 8.9(6.9) 3.4(8.3) EUR million EUR million EUR million +14.0% YoY growth 22.9% (20.3%) 31.7% (98.7%) of net sales cash conversion Organic revenue growth: 7.9% Growth at comparable exchange rates: 14.9% Adjusted
Slide 6: January–September 2024 key figures
January–September 2024 key figures Revenue Adjusted operating profit Operating free cash flow 124.3 (111.1) 28.4 (24.1) 20.0 (29.1) EUR million EUR million EUR million +11.8% YoY growth 22.8% (21.7%) 60.0% (101.2%) of net sales cash conversion Organic revenue growth: 9.6% Growth at comparable exchan
Slide 7: Q3 2024: Revenue growth in most sales regions
Q3 2024: Revenue growth in most sales regions Harvia has adjusted its revenue reporting. Starting from the first quarter of 2024, Harvia reports its revenue as presented below. Revenue by sales region 7–9/2023 vs 7–9/2024 • Total revenue in Q3/2024 grew by EUR million 14.0% to EUR 38.7 million 40 •
Slide 8: Northern Europe: Market share maintained in a challenging market
Northern Europe: Market share maintained in a challenging market Q3 revenue in Northern Europe, 2021−2024 • Revenue in Q3 decreased by 6.8% to EUR 9.6 million • Market has taken long to recover especially in Finland, but EUR million Harvia has defended well its market share 18.0 • Active measures ta
Slide 9: Continental Europe: Gradual market recovery continuing
Continental Europe: Gradual market recovery continuing Q3 revenue in Continental Europe, 2021−2024 • Revenue in Q3 grew by 7.9% to EUR 11.5 million • Gradual recovery of the market continued during the EUR million quarter, but sales still significantly below 2022 and COVID- boosted 2021 22.0 • Growt
Slide 10: North America: Strong growth with further boost from ThermaSol acquisition
North America: Strong growth with further boost from ThermaSol acquisition Q3 revenue in North America, 2021−2024 • Revenue in Q3 grew by 39.2% to EUR 13.4 million, growth boosted by acquisition of ThermaSol in July EUR • All product groups performing well, but growth particularly million strong in
Slide 11: APAC & MEA: Strong growth continued during Q3
APAC & MEA: Strong growth continued during Q3 Q3 revenue in APAC & MEA, 2021−2024 • Revenue in Q3 grew by 24.7% to EUR 4.2 million • Strong demand and favorable market conditions continued in EUR million several countries 6.0 • Harvia works systematically to drive growth in strategically important m
Slide 12: Products and solutions for all sauna types and cultures
Harvia offers products and solutions for all sauna types and cultures, for both private and professional customers Traditional sauna Infrared Steam 12 Copyright © 2024 Harvia Plc
Slide 13: Heating equipment and Saunas and Scandinavian hot tubs are largest product groups
Heating equipment and Saunas and Scandinavian hot tubs are Harvia’s largest reported product groups Harvia has adjusted its revenue reporting. Starting from the first quarter of 2024, Harvia reports its revenue as presented below. Share of Group’s total revenue in Q3 2024 Heating Saunas and Steam Ac
Slide 14: Q3 2024: Growth in several product groups, ThermaSol driving steam growth
Q3 2024: Growth in several product groups, ThermaSol acquisition driving steam product growth Revenue by product group 7–9/2023 vs 7–9/2024 • Growth in several product categories EUR million during Q3. 40 • The high growth in steam products was +0.6 -0.1 driven by the acquisition of ThermaSol. 39 (+
Slide 15: Harvia's strategic role: Shaping the global sauna market
Harvia’s strategic role: Shaping the global sauna market so that everyone has a reason to experience sauna Four strategic focus areas Delivering Winning Leading in strategically important the full sauna experience in key channels markets Best-in-class operations & great people 15 Copyright © 2024 Ha
Slide 16: Executing strategic focus areas in Q3 2024
Executing strategic focus areas in Q3 2024 Delivering Winning Leading the full sauna experience in strategically important markets in key channels • Capabilities in steam and digital • Strong growth outside Europe • Good progress in sharpening our strengthened with ThermaSol continued, position in N
Slide 17: Financials
Financials Ari Vesterinen, CFO 17 Copyright © 2024 Harvia Plc
Slide 18: Revenue has grown year-on-year since Q4/2023 – adjusted operating profit strong
Since Q4/2023, Harvia’s revenue has grown year-on-year – adjusted operating profit has remained strong Revenue and adjusted operating profit EUR million 50 • During 2024, Harvia has had good 45 42.4 43.2 organic growth – in Q3, also 41.4 39.4 significant inorganic growth. 40 38.1 38.7 35.8 • Harvia
Slide 19: Harvia's key figures in the review period
Harvia’s key figures in the review period EUR million 7-9/2024 7-9/2023 Change 1-9/2024 1-9/2023 Change 1-12/2023 Revenue 38.7 34.0 14.0% 124.3 111.1 11.8% 150.5 Adjusted EBITDA* 10.7 8.4 26.3% 33.4 28.8 16.0% 39.9 % of revenue 27.5% 24.8% 26.9% 25.9% 26.5% Adjusted operating profit* 8.9 6.9 28.8% 2
Slide 20: Operating free cash flow and cash conversion affected by inventories and investments
Operating free cash flow and cash conversion affected by increasing inventories and investments Operating free cash flow and cash conversion* EUR million 16 15.1 15.5 160% • In the review period, the company’s operating free cash flow was EUR 3.4 million 14 140% (8.3) and cash conversion 31.7% (98.7
Slide 21: Net debt increased due to ThermaSol acquisition – leverage below target
Net debt increased significantly due to ThermaSol acquisition – leverage still clearly below long-term financial target of 2.5 Net debt and leverage EUR million 70 • At the end of September 2024, the 61.8 company’s net debt amounted to EUR 60 3 61.8 million (40.6). Loans from credit 54.5 institution
Slide 22: Acquisition of ThermaSol increased the net financial items
Acquisition of ThermaSol increased the net financial items Net financial items EUR million 2.0 • The net financial items increased due to the new loan of EUR 20 million that 1.8 was raised to finance the acquisition of 1.6 1.52 ThermaSol. 1.4 • Harvia has an interest rate swap 1.2 contract. A large
Slide 23: Add-on investments during Q3 2024
Add-on investments during Q3 2024 – substantial investments in North America visible in Q1 2024 Investments in tangible and intangible assets EUR million 2.5 • During the review period, Harvia 2.2 made several add-on investments in its production facilities, for example, 2.0 in Muurame and China. 1.
Slide 24: Harvia's long-term financial targets
Harvia’s long-term financial targets GROW TH P R O F I TA B I L I T Y LEVERAGE 10% >20% <2.5x Average annual Adjusted operating Net debt/adjusted revenue growth profit margin1 EBITDA2 Harvia does not publish a short-term outlook. Harvia’s dividend policy is to pay a regularly increasing dividend wit
Slide 25: Copyright © 2024 Harvia Plc
25 Copyright © 2024 Harvia Plc
Slide 26: Disclaimer
Disclaimer This material contains, or may be deemed to contain, “forward-looking statements”. These statements relate to future events or Harvia Plc’s future financial performance, for example, market growth and developments, Harvia Plc’s strategic plans, potential growth, planned operational develo
Slide 27: Appendix
Appendix 27 Copyright © 2024 Harvia Plc
Slide 28: January–September 2024: Revenue growth driven especially by North America
January–September 2024: Revenue growth driven especially by North America Harvia has adjusted its revenue reporting. Starting from the first quarter of 2024, Harvia reports its revenue as presented below. Revenue by sales region 1–9/2023 vs 1–9/2024 • Total revenue grew by 11.8% to EUR EUR million 1
Slide 29: January–September 2024: Growth in most product groups
January–September 2024: Growth in most product groups Harvia has adjusted its revenue reporting. Starting from the first quarter of 2024, Harvia reports its revenue as presented below. Revenue by product group 1–9/2023 vs 1–9/2024 • During the first three quarters, revenue EUR million grew in all pr
Slide 30: Harvia's shareholders (30 September 2024)
Harvia’s shareholders (30 September 2024) Distribution by segment Number of shareholders 10.2% (6.9%) 0.02% (0.03%) 50,000 46,011 43,945 42,883 45,000 41,328 40,000 37,830 33,879 34,808 35,000 32,934 18.6% (20.8%) 30,000 25,000 49.6% (42.8%) 20,000 15,000 13,551 10,000 5,249 5,000 3,248 0 21.6% 31 D
Slide 31: Copyright © 2024 Harvia Plc
31 Copyright © 2024 Harvia Plc