Hayward Holdings, Inc. · NYSE:HAYW
Hayward — Q2 2021 Earnings Presentation
17 slides from Hayward's earnings presentation, Aug 2, 2021
Slide 1: Second Quarter 2021 Earnings
Second Quarter 2021 Earnings August 2, 2021 © 2021 Hayward Holdings, Inc. 1
Slide 2: Second Quarter 2021 Earnings Call
Second Quarter 2021 Earnings Call Kevin Holleran President and Chief Executive Officer Eifion Jones Senior Vice President and Chief Financial Officer Stuart Baker Vice President of Business Development NYSE: HAYW © 2021 Hayward Holdings, Inc. 2
Slide 3: Cautionary Statement
Cautionary Statement SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements and information relating to the Company that are based on the beliefs of management as well as assumptions made by, and information currently available to management. These st
Slide 4: Second Quarter 2021 Highlights
Second Quarter 2021 Highlights Record Net Sales of $364 million, LTM $1.2 billion 66% YoY Net Sales growth ✓ Expanded production capacity to meet strong demand and order file ✓ Impact of new products and connected strategy +161bps YoY Gross Profit of $168 million, 46.1% of Net Sales Gross Profit Mar
Slide 5: Updated 2021 Financial Outlook
Updated 2021 Financial Outlook ✓ Net Sales growth to 54% to 58% YoY Full Year ✓ Compared to prior range of 40% to 45% ✓ Adjusted EBITDA1 of $405 to $425 million; up 75% to 84% YoY ✓ Compared to prior range of $360 to $390 million; up 55% to 68% Improved Outlook Reflects: ✓ Strong results in first ha
Slide 6: Hayward at a Glance
Hayward at a Glance ’20A Net Sales ’20A Net Sales ’20A Net Sales by Segment by End Market by Product Category White Goods Replacement Parts 5% Commercial 6% Leading Financial Performance 2% Flow Control Pumps North America Residential Pool 5% 19% ESG 81% 93% Relevance Lighting 6% Heating ~89% $1,184
Slide 7: Hayward Advantage – Driving Best in Class Financial Performance
Hayward Advantage – Driving Best in Class Financial Performance #1 Salt Chlorination, #1 Digital App, # 1 Trusted Brand1 - ~100 Yrs. of performance #1 Efficient Variable Speed Pump Rated highest for quality by builders and retailers Full line supplier of environmentally sustainable products and a le
Slide 8: Hayward is at the Center of Outdoor Living
Hayward is at the Center of Outdoor Living Strong Secular Home Building Trends Lighting HVAC Growing Focus on Smart Homes ✓ ~$23bn U.S. smart home market ✓ ~77 million smart homes by 2025 ✓ ~66% of homeowners use an app to control smart home devices ✓ ~60% penetration of smart home systems in 2025,
Slide 9: Q2 Financial Overview
Q2 Financial Overview Net Sales ($mm) Adjusted EBITDA ($mm) Margin (% of net sales) Strong Sales Growth Elevated demand across all end markets, accelerating 110 364 production to meet levels of future demand 30.3% +66% +81% YoY YoY Significant Margin Expansion Improvement of 161 bps in gross profit
Slide 10: North America Q2 Segment Overview
North America Q2 Segment Overview $294 million ✓ Robust opening order file, exited quarter at higher levels Net Sales +66% YoY ✓ Accelerated production to meet market demand 47.8% ✓ Driven by volume leverage and price realization Gross Profit Margin +128 bps YoY ✓ Strategic cost management actions m
Slide 11: Europe & ROW Q2 Segment Overview
Europe & ROW Q2 Segment Overview ✓ Sustained market demand and order file across all regions $71 million Net Sales +66% YoY ✓ Growth partially constrained by raw material availability ✓ Favorable product mix 38.9% Gross Profit Margin ✓ Price realization +315 bps YoY ✓ Production leverage ✓ Segment i
Slide 12: Core Values Drive Commitment to ESG
Core Values Drive Commitment to ESG Core Values © 2021 Hayward Holdings, Inc. 12
Slide 13: New Product Innovation Focus on ESG
New Product Innovation Focus on ESG 90% Reduction in energy use 1.1bn kWh saved from variable speed pumps 50% Reduction in chlorine use 81mm lbs Less chemical chlorine by salt/UV/ozone Pool Pad Equipment: In and Around the Pool: Variable Speed Pumps Robotic Cleaners 16% High Efficiency Gas and Heat
Slide 14: Hayward’s Value Proposition
Hayward’s Value Proposition Pure Play Market Leader in Growing Outdoor Living Sector Competitive Moat – Full Product Line, Channel Presence, Brand and Large Installed Base Leaders in the SmartPad™ Conversion – IoT-Connected and Environmentally Conscious Products Strategic Vision to Grow the Addressa
Slide 15: Appendix
Appendix Non-GAAP Reconciliations © 2021 Hayward Holdings, Inc. 15
Slide 16: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation © 2021 Hayward Holdings, Inc. 16
Slide 17: Adjusted Segment Income Reconciliation
Adjusted Segment Income Reconciliation © 2021 Hayward Holdings, Inc. 17