Slide 1: Year End Report 2018
MAGNUS ALLA BILDER! Year End Report 2018 February 13, 2019 Magnus Welander, CEO Lennart Mauritzson, CFO
Slide 2: 2018/Q4 – Continued strong sales in smallest quarter for the year
2018/Q4 – Continued strong sales in smallest quarter for the year ▪ Net sales of SEK 1,157m (1,006) ▪ +15.0% (+8.0% excluding currency effects) ▪ Region Europe&ROW +13.0% ▪ Region Americas +0.2% ▪ Underlying EBIT of SEK 64m (65) and Underlying EBIT margin of 5.5% (6.5) ▪ Net income, continuing opera
Slide 3: Q4 & FY 2018 – Net Sales and Underlying EBIT development
Q4 & FY 2018 – Net Sales and Underlying EBIT development Reported Net Sales Underlying EBIT and Margin SEKm SEKm 6.5% 5.5% 1 006 1 157 Q4 65 64 Q4 2017 Q4 2018 Q4 2017 Q4 2018 SEKm SEKm 18.2% 18.0% 5 872 6 484 1 069 1 164 YTD YTD 2017 YTD 2018 YTD 2017 YTD 2018 Note: EBIT adjusted for non-recurring
Slide 4: 2018/Q4 – Key Events
2018/Q4 – Key Events ▪ Overlanding category entry for Thule Group via acquisition of Tepui outdoors Inc. for 9.5 MUSD ▪ Overlanding is a growing trend and Roof Top Tents offer a great way to utilize standard cars for Overlanding and Thule Roof Racks are often used ▪ Tepui with USD 6.1 Mio in sales a
Slide 5: 2018/Q4 and Full Year - Sales by Region
2018/Q4 and Full Year - Sales by Region Oct-Dec Change Jan-Dec Change SEKm 2018 2017 Rep. Adjust. 1 2018 2017 Rep. Adjust. 1 Net sales 1 157 1 006 15.0% 8.0% 6 484 5 872 10.4% 6.0% - Region Europe & ROW 741 628 18.1% 13.0% 4 632 3 983 16.3% 10.3% - Region Americas 415 378 9.8% 0.2% 1 852 1 889 -1.9%
Slide 6: 2018 Full Year – Sales Development by Product Category
2018 Full Year – Sales Development by Product Category Sport&Cargo Carriers Packs, Bags & Luggage Active with Kids RV Products BILD Share of Thule Group 64% 12% 10% 14% Sales 2018 (2017) (65%) (14%) (8%) (13%) Share of Europe&ROW Americas Europe&ROW Americas Europe&ROW Americas Europe&ROW Americas R
Slide 7: Sport&Cargo Carriers – Continued strong growth as market leader
Sport&Cargo Carriers – Continued strong growth as market leader ▪ Growth of +5% in 2018 in constant currency (growth excl. phased out low-margin OE-contracts +6%) ▪ We continue to grow market leading position, driven by: ▪ Successful product launches ▪ Strong delivery performance ▪ Improved retail s
Slide 8: Packs, Bags & Luggage – Growth in categories where focus for the future is
Packs, Bags & Luggage – Growth in categories where focus for the future is ▪ Decline of -7% in 2018 in constant currency (decline excl. phased out low-margin OE-contracts -4%) ▪ The category performance differs by sub-category ▪ Legacy&OE - continued double-digit decline as expected ▪ Everyday backp
Slide 9: Active with Kids – Very strong growth driven by successful launches
Active with Kids – Very strong growth driven by successful launches ▪ Growth of +22% in 2018 in constant currency ▪ Great performance in all three sub-categories ▪ Bike / Multisport Trailers – Fast growth with Thule Chariot collection ▪ Child Bike Seats – Updated portfolio continues to grow ▪ Stroll
Slide 10: RV Products – Big market share gains in hot market
RV Products – Big market share gains in hot market ▪ Growth of +14% in 2018 in constant currency (RV market in Europe estimated growth of +9%) ▪ Great performance in the niches where we are No.1 ▪ Successful product launches ▪ Strong delivery performance in booming market ▪ Key product launches duri
Slide 11: 2018/Q4 and Full Year – Reported Income Statement
2018/Q4 and Full Year – Reported Income Statement ▪ Gross Margin slightly down for the Q4 Q4 YTD YTD year, fx adjusted down 0.4 percentage SEKm 2018 2017 2018 2017 points Net sales 1 157 1 006 6 484 5 872 ▪ Continued negative raw material prices Cost of goods sold -720 -608 -3 858 -3 455 and ramp up
Slide 12: 2018/Q4 – Operating Working Capital and Operational Cash Flow
2018/Q4 – Operating Working Capital and Operational Cash Flow Operating Working Capital Operating Working Capital ▪ Operating working capital, 31 Dec. 2018: SEKm ▪ Inventory: SEK 1 078m (819) 2000 18,0% 20% whereof currency SEK 31m 16,7% 15,0% ▪ Accounts receivables: SEK 655m (580) 1500 whereof curr
Slide 13: 2018 Full Year – Performance vs. Financial Targets
2018 Full Year – Performance vs. Financial Targets Constant Currency Net Sales Growth (excl. Acquisitions) Organic Growth ≥ 5% +6.0% Underlying EBIT Margin ≥ 20% 18.0% 2017 at 18.2% Net Debt / EBITDA 1.5-2.5x 1.6x 1.5x (2017/Q4) Dividend Policy ≥ 50% 86%* * Ordinary dividend of SEK 7.00 per share (6
Slide 14: 2019 – Continued strong growth with enhanced product portfolio
2019 – Continued strong growth with enhanced product portfolio ▪ Strategy has worked and remains unchanged ▪ Drive profitable organic sales growth via great products ▪ Strengthen the Thule brand by using the motto Bring your life ▪ Become a serious contender in Strollers & Luggage ▪ Utilize strong b
Slide 15: Q&A
Q&A
Slide 16: Disclaimer
Disclaimer ▪ This presentation has been prepared by Thule Group AB (publ) (the “Company”) solely for use at this presentation and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. The presentation does not constitute
Slide 17: Thule Group – Active Life, Simplified
Thule Group») ACTIVE LIFE, SIMPLIFIED