Zumtobel Group Ag · VIE:ZAG

Zumtobel — H1 2023/24 Earnings Presentation

23 slides from Zumtobel's earnings presentation, Dec 7, 2023

  1. Slide 1: H1 2023/24 Management Presentation

    H1 2023/24 MANAGEMENT PRESENTATION | 7 DECEMBER 2023 © David Sundberg/Esto 1

  2. Slide 2: Disclaimer

    DISCLAIMER The facts and information contained herein constitute forward-looking statements as of the date they were made and based upon assumptions as to future events or circumstances that may not prove to be complete or accurate. By their nature, these statements involve risk and uncertainty beca

  3. Slide 3: Project reference photos

    Stadium Chongqing Longxing, China Office New York Times, USA 3 SPAR, Lustenau, Austria Asset Deal | SiteWorx Hospital, Milan, Italy

  4. Slide 4: H1 2023/24 Financial Overview

    H1 2023/24 FINANCIAL OVERVIEW • Group revenues decline by 8.5% to EUR 574.4 mn (PY: EUR 627.8 mn) − Lighting Segment revenues at EUR 454.4 mn (–1.5%) − Components Segment at EUR 152.1 mn (–22.8%) − Good revenue contributions especially from Switzerland • Adj. EBIT at EUR 40.0 mn (PY: EUR 50.8 mn) −

  5. Slide 5: Order Situation Requires Reorientation

    ORDER SITUATION REQUIRES REORIENTATION Measurements Impact Components plant, Dornbirn (AT) • Partial transfer of production to the plant in Niš (Serbia) Restructuring costs • Conversion of the plant in Dornbirn • Restructuring costs of EUR –9.1 mn were into a “Centre of Production Innovation” booked

  6. Slide 6: Lighting Segment: Improvement in Adjusted EBIT Margin, Revenues Flat

    LIGHTING SEGMENT IMPROVEMENT IN ADJUSTED EBIT MARGIN, WHILE REVENUES REMAIN FLAT REVENUES IN EUR MN ADJUSTED EBIT IN EUR MN fx-adj. fx-adj. 11.7% –0.3% –0.8% 7.7% 10.6% –1.0% –2.0% 7.4% 7.0% 7.2% 226.5 224.1 235.0 230.3 26.9 215.8 225.8 24.9 16.7 17.3 16.2 15.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022/23 as a %

  7. Slide 7: Components Segment: Q2 Revenue Impacted by High Customer Inventory

    COMPONENTS SEGMENT Q2 REVENUE STILL IMPACTED BY HIGH CUSTOMERS' INVENTORY LEVELS REVENUES IN EUR MN ADJUSTED EBIT IN EUR MN fx-adj. fx-adj. 9.4% 8.7% –23.0% –16.5% 7.4% 6.0% –25.4% –20.0% 4.3% 2.9% 103.2 93.9 82.8 87.4 77.0 75.1 8.9 7.6 7.6 4.9 3.2 2.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022/23 as a % of reven

  8. Slide 8: Zumtobel Group: Revenue Decline, Adjusted EBIT Margin Remains Solid

    ZUMTOBEL GROUP REVENUE DECLINE IN A DIFFICULT MARKET ENVIRONMENT, ADJUSTED EBIT MARGIN REMAINS SOLID REVENUES IN EUR MN ADJUSTED EBIT IN EUR MN fx-adj. fx-adj. 10.1% –7.6% –6.1% 6.1% 6.0% 8.8% –9.0% –8.0% 5.1% 5.5% 313.7 314.1 31.7 285.6 288.9 284.4 297.0 25.5 19.0 17.2 16.3 14.5 Q1 Q2 Q3 Q4 Q1 Q2 Q

  9. Slide 9: Adjusted EBIT Bridge

    ZUMTOBEL GROUP REVENUE DECLINE, INFLATION-BASED INCREASE IN PERSONNEL COSTS, ONLY PARTLY OFFSET BY HIGHER GROSS PROFIT MARGIN ADJUSTED EBIT BRIDGE IN EUR MN / AS % OF SALES 8.1% –1.1pp 7.0% Mainly due to country mix as well as lower raw material and 50.8 transportation costs 19.2 40.0 -0.7 Higher pe

  10. Slide 10: Income Statement

    SOLID ADJUSTED EBIT MARGIN IN H1 2023/34 DUE TO SOLID BUSINESS IN THE LIGHTING SEGMENT ZUMTOBEL GROUP – INCOME STATEMENT IN EUR MN H1 2023/24 H1 2022/23 CHANGE IN % Special effects of EUR -9.1 mn recorded in Revenues 574.4 627.8 –8.5 Q2 2023/24, thereof: • EUR 6.3 million for personnel expenses, Adj

  11. Slide 11: Cash Flow Improvement in H1 2023/24

    CASH FLOW IMPROVEMENT IN H1 2023/24 ZUMTOBEL GROUP – CASH FLOW STATEMENT IN EUR MN H1 2023/24 H1 2022/23 Cash flow from operating results 60.4 78.3 Change in working capital 4.0 –11.7 Change in other operating items –16.0 –18.0 Taxes paid/received –3.1 –4.3 Cash flow from operating activities 45.4 4

  12. Slide 12: Solid Balance Sheet: Strong Equity Ratio and Debt Coverage Ratio

    SOLID BALANCE SHEET: STRONG EQUITY RATIO AND DEBT COVERAGE RATIO ZUMTOBEL GROUP – KEY BALANCE SHEET DATA IN EUR MN 31 October 2023 30 April 2023 Solid liquidity position backed by: Total assets 1,012.9 1,002.4 • Consortium credit agreement with a term ending in December 2027 and a volume of EUR 125

  13. Slide 13: Sales Development Year-on-Year Negative in Difficult Market

    SALES DEVELOPMENT YEAR-ON-YEAR NEGATIVE IN A DIFFICULT MARKET ENVIRONMENT ZUMTOBEL GROUP – SALES DEVELOPMENT BY QUARTER VS PY PERIOD IN % 15.4 14.6 13.0 9.6 3.4 8.4 1.1 1.8 1.9 5.1 5.8 -0.5 -1.6 -7.6 -1.7 -8.0 -9.0 -5.3 -8.8 -12.7 -13.9 -15.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

  14. Slide 14: Group Revenues Down by 8.5% in H1 2023/24

    GROUP REVENUES DOWN BY 8.5% IN H1 2023/24 ZUMTOBEL GROUP – REGIONAL REVENUE DISTRIBUTION CHANGE IN % IN EUR MN Q2 2023/24 CHANGE IN % H1 2023/24 NOMINAL FX ADJUSTED D/A/CH 106.1 –2.4 211.0 1.3 0.0 Northern and Western Europe 67.0 –12.0 135.6 –11.5 –10.2 Southern and Eastern Europe 76.6 –4.5 152.7 –8

  15. Slide 15: Current Market Outlook for Financial Year 2023/24

    CURRENT MARKET OUTLOOK FOR THE FINANCIAL YEAR 2023/24 Growth in non-residential construction Development of non-residential construction in 2024 until 2026 • Non-residential construction prospects are weak in total – sideways movement 2.5 1.6 1.8 1.3 is expected for this and next year • 8 out of 19

  16. Slide 16: FY 2023/24 Outlook

    FY 2023/24 OUTLOOK Adjusted Revenue CAPEX excl. IFRS 16 EBIT margin decline ~EUR 60 mn of 4 – 6% mid-single digit H1 2023/24 results Photographer: Jürgen Eheim 16

  17. Slide 17: Back Up

    BACK UP H1 2023/24 results ZUMTOBEL Group

  18. Slide 18: Financial Calendar

    FINANCIAL CALENDAR DATE SUBJECT PERIOD 7 March 2024 Interim Report Q1 – Q3 2023/24 1 May 2023 – 31 January 2024 H1 2023/24 results 18

  19. Slide 19: Efficiency Measures to Tackle the Difficult Market Environment

    EFFICIENCY MEASURES TO TACKLE THE DIFFICULT MARKET ENVIRONMENT Operational efficiency • Review staffing in all functional areas • Reduce costs through digitalization and strict management of overhead costs Management of manufacturing costs • Increase automation in our manufacturing processes Cost re

  20. Slide 20: Working Capital Development

    WORKING CAPITAL DEVELOPMENT ZUMTOBEL GROUP – WORKING CAPITAL 21.0 19.7 19.7 19.2 18.4 18.4 17.1 17.4 16.2 16.2 • Working capital at EUR 228.2 mn as of 31 October 2023 (30 April 2023: EUR 231.7 mn) • In % of rolling 12-month revenues, working capital at 19.7% (PY: 18.4%) Q1 Q2 Q3 Q4 FY 2021/22 FY2022

  21. Slide 21: Supplementary Data for Segment Reporting

    SUPPLEMENTARY DATA FOR SEGMENT REPORTING ZUMTOBEL GROUP Lighting Segment Components Segment Reconciliation Group IN EUR MN H1 2023/24 H1 2022/23 H1 2023/24 H1 2022/23 H1 2023/24 H1 2022/23 H1 2023/24 H1 2022/23 Net revenues 454.5 461.5 152.1 197.1 –32.1 –30.8 574.4 627.8 External revenues 454.1 461.

  22. Slide 22: Five-Year Overview

    FIVE-YEAR OVERVIEW ZUMTOBEL GROUP IN EUR MN 2022/23 2021/22 2020/21 2019/20 2018/19 Revenues 1,209.2 1,148.3 1,044.5 1,131.3 1,162.0 EBIT 84.3 60.8 43.4 35.1 2.7 as a % of revenues 7.0 5.3 4.2 3.1 0.2 Net profit/loss for the period 60.0 45.8 45.6 14.5 –15.2 as a % of revenues 5.0 4.0 4.4 1.3 –1.3 To

  23. Slide 23: Zumtobel Group AG Investor Relations

    ZUMTOBEL GROUP AG Investor Relations investorrelations@zumtobelgroup.com www.zumtobelgroup.com H1 2023/24 results 23

Zumtobel Group — H1 2023/24 Earnings Presentation on 6ix