Fluidra, S.a. · BME:FDR
Fluidra — Non-Deal Roadshow (May 2017)
53 slides from Fluidra's roadshow presentation, May 2017
Slide 1: Fluidra Road Map to 2020
FLUIDRA ROAD MAP TO 2020 May 2017 STRATEGIC PLAN 2018 ROAD MAP TO 2020
Slide 2: Index
Index 1. Introduction 2. Trends & Market and how we compete & win 3. Opportunities for profitable growth 4. Appendix STRATEGIC PLAN 2018 ROAD MAP TO 2020 2
Slide 3: 1. Introduction
1.Introduction STRATEGIC PLAN 2018 ROAD MAP TO 2020
Slide 4: Fluidra in a snapshot
Fluidra in a snapshot Fluidra Sales by Business Unit – 2016 (€M) 21,6 Shareholders structure 39,8 Residencial Pool & 53,0 Wellness Commercial 713.3M Pool Water Treatment 109,9 407,2 Fluid Handling Irrigation & Domestic WT 81,7 Industrial & others Fluidra Sales by Geographical Area 2016 (€M) 114,3 Sp
Slide 5: Fluidra today is a stronger company
Fluidra today is a stronger company …more balanced and with great potential Attractive Unbeatable Proven & Efficient Growing Markets Product Portfolio Best Practices STRATEGIC PLAN 2018 ROAD MAP TO 2020 5
Slide 6: Why Fluidra?
Why Fluidra? Attractive International Clear roadmap for Experienced & Growing Markets Leadership profitable growth Passionate team STRATEGIC PLAN 2018 ROAD MAP TO 2020 6
Slide 7: Fluidra Evolution Vs. Market Evolution
Fluidra Evolution Vs. Market Evolution 1200 +1.5% +2.0% +5.9% G.D.P. 1m€ Forecast Profitable growth 1000 800 600 400 200 0 1969… Source: IMF-WEO Note: GDP forecasts reflects GDP CAGR for the 2016-2020 period STRATEGIC PLAN 2018 ROAD MAP TO 2020 7
Slide 8: 2. Trends & Market and how we compete & win
2. Trends & Market and how we compete & win STRATEGIC PLAN 2018 ROAD MAP TO 2020
Slide 9: Evolution of the Pool Market
Evolution of the Pool Market Total Pool Base Construction of New Pools 18.000.000 600.000 15.000.000 500.000 12.000.000 400.000 9.000.000 300.000 6.000.000 200.000 3.000.000 100.000 0 0 2007 2009 2011 2013 2015 2016E 2007 2009 2011 2013 2015 2016E Europe Australia N. America Asia LATAM Africa & RoW
Slide 10: Evolution of the Pool Market
Evolution of the Pool Market Europe-Evolution of New Pools N. America-Evolution of New Pools 180.000 200.000 150.000 160.000 120.000 120.000 90.000 80.000 60.000 40.000 30.000 0 0 2007 2009 2011 2013 2015 2016E 2007 2009 2011 2013 2015 2016E Europe Spain Europe Spain New pool builds is showing growt
Slide 11: Fluidra is now stronger in a healthier market
Fluidra is now stronger …in a healthier market European Pool Market Model (2008) European Pool Market Model (2016) New Construction New 31% Existing Construction Base Existing 48% 52% Base 69% Fluidra benefits from recurring revenues coming from the pool base as well as from a recovery of new constr
Slide 12: The opportunity is significant
The opportunity is significant… In terms of product and geographies 18% Basic-Filter, Pump… 41% Maintenance 16% Added Value - Robots, 22% Chlorinators 2014 Commercial equipment Pool Market 19% (ex US) 3.2B€ 8% Europe 84% 17% Africa Australia 56% Fluidra 14% LatAm Others 5% Asia & ME Source: Company
Slide 13: ...to continue building our international leadership
…to continue building our international leadership Clear #1 in most relevant markets… % of No. of Global Countries Pool Base Market Leader 31 40% Export Leader 12 1% Key Player 13 21% Export Player 4 5% Source: Company elaboration based on country pool associations data and other public company data
Slide 14: ...to continue building our international leadership
…to continue building our international leadership Competing with different players in every geography Global leader Others Fluidra 16% 46% Pool Market (ex US) Local/Regional 3.2B€ Players Chemoform, 23% Other Global Waterco,FIJA Players Group, Neptune, Nextpool, Procopi, 15% Zodiac, Pool Corp, Myrt
Slide 15: Residential Pool
Residential Pool 17% 2.6B€ ex US 83% STRATEGIC PLAN 2018 ROAD MAP TO 2020 15
Slide 16: Unbeatable Product Portfolio
Unbeatable Product Portfolio Residential-Split by Group and Application NEW EXISTING GROUP SALES POSITION (2016) CONSTRUCTION POOLS BASIC € 268M 1 48% 52% 47% 21% MAINTENANCE € 121M 2 0% 100% 32% ADDED VALUE € 181M 1 13% 87% Broad product portfolio that meets the needs of every step of the pool buil
Slide 17: Business model: how we compete
Business model: how we compete Integrated value chain with own distribution Own distribution Pool Owners Installers Retailers Manufacturing R+D+I Builders Other distributors B2B PRIVATE LABEL Mass Market B2C PRIVATE LABEL KEYS OF • Allows multichannel • Integrated margin INTEGRATED approach with • H
Slide 18: A model that meets our customer needs
A model that meets our customer needs Excellent match of our model with industry success factors PUSH STRATEGY • One stop shop: pool, irrigation, fluid handling, water treatment. KEY SUCCESS • Technical support & training FACTORS • Availability in branch/on time delivery • After sales service STRATE
Slide 19: Commercial Pool
Commercial Pool 11% 0.6B€ ex US 89% STRATEGIC PLAN 2018 ROAD MAP TO 2020 19
Slide 20: Commercial Pool covers a wide range of installations
Commercial Pool covers a wide range of installations STRATEGIC PLAN 2018 ROAD MAP TO 2020 20
Slide 21: Understanding decision making for commercial
Understanding decision making for commercial …owners play a key role on choosing the solution DEVELOPERS DESIGN & IDEA PRE DESIGN EXECUTION OWNERS ENGINEERING Preliminary design Design to build Project management Initial engineering Final engineering Cost management Initial cost estimates Project co
Slide 22: A model that delivers to our customer needs
A model that delivers to our customer needs Complete match of industry success factor and our model Owners PUSH PULL KEY Technical support & training Design & Engineering SUCCESS On time delivery Integrated solutions FACTORS After sales service Project management STRATEGIC PLAN 2018 ROAD MAP TO 2020
Slide 23: 3. Opportunities for profitable growth
3. Opportunities for profitable growth STRATEGIC PLAN 2018 ROAD MAP TO 2020
Slide 24: Strategic approach by geographical market
Strategic approach by geographical market Core for pool: Mainly business of residential pool and a huge base of • Market size 2.5B€ • c.80% of our sales professional customers Emerging for pool: Mainly commercial pool • Market size 684 M€ business through projects • c.15% of our sales USA: Robotic c
Slide 25: Core Pool Markets: Penetration
Core Pool Markets: Penetration 8.5M 2.5B€ 16% Total pools € Market trends: Market size • Capillarity • Focus on installed base pools: Added value • Perfect service level Market share • Commercial market already developed by actual customers • Few global players & major competitors are locals Our opp
Slide 26: Core Pool Markets: Share by category
Core Pool Markets: Share by category EUROPE AUSTRALIA S. AFRICA BRAZIL Category 1 Category 2 Category 3 Category 4 Category 5 Category 6 Category 7 Increase penetration in all categories to minimum 20% is 210M€ STRATEGIC PLAN 2018 ROAD MAP TO 2020 26
Slide 27: Core Pool Markets: Best practices at full speed
Core Pool Markets: Best practices at full speed Sales & Customer Mng • Gain capillarity by opening new cash & carry branches. Consolidation Cash & Carry Branches • Perfect delivery to our customers. • Customer management to optimize share. • Introduce new product in added value categories. Manufactu
Slide 28: Spain: Pool Market today
Spain: Pool Market today Fluidra Comercial España The Spanish pool market is valued at € 300M 101M€ • On average, Spain has 1 pool for every 37 people. 219 Employees • New Pools: 18.500 built in 2015 / 21.500 in 2016. • Market trend is back to growth (+6%). 22 Branches • Business remains on renovati
Slide 29: New logistic model
New logistic model 2011 2016 Branches (From Old Branches to C&C) 30 19 Inventory level 17 M€ 3,5 M€ Logistic FTEs (Average per Branch) 5.8 3.5 Transport Cost (% of Net Sales) 5.1% 3.0% Service Level (% Perfect & Full Order delivery) 80% 90% “Closer to market”, better service and more efficiently STR
Slide 30: New customer approach
New customer approach 2011 2016 Company Consolidation (From Companies to Business Units) 3 1 Sales Network (Number of Reps) 79 67 Sales Activity Model GENERALIST SPECIALIST (Commercial Tools) 3 COMPANIES Trade Efficiency Capillarity and Efficiency (Average num. Customers per Rep) 200-250 140 Inside
Slide 31: Results 2008 - 2016
Results 2008 - 2016 23.6% 8,9 46.9% 126 6.8 6.3 48.5% 8.0% -7.4% 9.6% 98 4.9 95 2.5% 175.0% 88 -8.0% 91 81 83 3.3 2.8 -57.1% 1.2 2008 2011 2012 2013 2014 2015 E2016 2008 2011 2012 2013 2014 2015 E2016 SALES EBITDA Proven best practices deliver excellent operating leverage STRATEGIC PLAN 2018 ROAD MA
Slide 32: Emerging Pool Markets: Focus on Commercial Pool
Emerging Pool Markets: Focus on Commercial Pool • Market based on Commercial Pool • Residential market is not relevant • Highly fragmented markets • Market size: 684 M€ • Fluidra share: 15% • Fluidra Coverage from 73% to 90% Market trends: • Tourism is the major driver • Prescription in Developers/E
Slide 33: Emerging Pool Markets: Our strategy
Emerging Pool Markets: Our strategy Develop Engineering solutions concept: From product prescription to project management. Further development of regional centres of engineering (existing in Dubai and Singapore). Global leader in Commercial Pool STRATEGIC PLAN 2018 ROAD MAP TO 2020 33
Slide 34: Focus on profitable growth
Focus on profitable growth Pool Sector Best Practices Gain penetration STRATEGIC PLAN 2018 ROAD MAP TO 2020 34
Slide 35: Accelerated growth & operating leverage
Accelerated growth & operating leverage ANNUAL IMPACT Market Growth 2-4% Market share gains 2-3% Operating leverage will drive EBITDA growth x 2 Organic Growth 4-7% Acquisitions 2-4% Financial leverage & tax will drive Net Income growth even further Total Growth 6-11% STRATEGIC PLAN 2018 ROAD MAP TO
Slide 36: Organic growth expected in all continents
Organic growth expected in all continents 440 +3% 420 432 400 95 M€ +6% 380 384 +5% 50 360 85 M€ 86 48 340 75 M€ 320 M€ 40 71 300 65 38 M€ M€ 30 55 +6% 25 25 +9% 20 20 24 M€ 80 +8% 21 60 71 M€ 19 15 M€ M€ 15 15 40 52 M€ 10 M€ 20 Note: Net sales for 2014 adjusted for divestitures. Expected organic CA
Slide 37: Outlook of increasing returns for shareholders
Outlook of increasing returns for shareholders 2014(*) TARGET 2018 CAGR’14- 18 Profitable Sales 579 750 7% Growth EBITDA 56 100 15% Net Income 0 30 100% ROCE 3% 10% More value Generating NWC/Sales 31% 28% Capex/Sales 4% 4% NFD/EBITDA 2.7X ≤2.2X (*) Adjusted for divestitures and extraordinary expense
Slide 38: Self funded strategic plan
Self funded strategic plan Financial debt finances Clear uses of Cash liquid assets POLICY TARGET TARGET 2018 2014 2018 Net Dividends 50% payout 15M€ Working 176M€ 210M€ Capital Target ≤4X Net Acquisitions EBITDA in 10-20M€/year Financial 151M€ 220M€ 3 years Debt STRATEGIC PLAN 2018 ROAD MAP TO 2020
Slide 39: Cash generation & uses of cash
Cash generation & uses of cash ACCUMULATED ACCUMULATED 2018 2018 Free Cash Flow 123M€ Dividends 52M€ Change in NFD 68M€ Acquisitions 80M€ 191M€ Minority interest 15M€ Earn out 31M€ Other cash items 13M€ 191M€ Note 1: Minority interest reflects cash used to purchase shares from minority owners in sub
Slide 40: Are we on the right track for 2018?
Are we on the right track for 2018? CAGR’14 CAGR’14 15% 7% 100 11% 10% 750 18% 713 85 29% 642 37% 72 579 56 2014 2015 2016 Guidance Target 2018 2014 2015 2016 Guidance Target 2018 2017E 2017 SALES EBITDA The evolution of 2015 and for 2016 show that we are on the path to achieving targets in 2017 Not
Slide 41: In summary: Why Fluidra?
In summary: Why Fluidra? Attractive International Clear roadmap for Experienced & Growing Markets Leadership profitable growth Passionate team …with an attractive valuation STRATEGIC PLAN 2018 ROAD MAP TO 2020 41
Slide 42: Thank you
THANK YOU STRATEGIC STRATEGIC PLAN PLAN 2018 ROAD 2018 ROAD MAP MAP TOTO 2020 2020
Slide 43: 4. Appendix
4. Appendix STRATEGIC PLAN 2018 ROAD MAP TO 2020
Slide 44: Fluidra – Q1 2017 Results
Fluidra – Q1 2017 Results STRATEGIC PLAN 2018 ROAD MAP TO 2020
Slide 45: Summary
Summary 45 Q1 2017 RESULTS Main figures Excellent Sales performance, with 15.9% growth on a like-for- like basis, with a noteworthy growth in Europe, Australia and the US. €M 2016 2017 Evol. Extraordinary EBITDA performance on the back of increased Sales 156.5 183.2 17.1% volume and operating levera
Slide 46: Highlights
Highlights 46 Q1 2017 RESULTS FOCUS ON POOL & WELLNESS INVESTING IN GROWTH COMMERCIAL POOL Following the strategy of Cash&Carry: opening of 4 new Marina Bay Resort, divesting non-strategic cash & carry in La Puglia Philippines: contract for the activities, Fluidra has (Italy), Aix le Milles (France)
Slide 47: Profit & Loss Account
47 Profit & Loss 2016 | 2017 | Account Sales €M 156.5 % sales 100.0% €M 183.2 % sales 100.0% Evol. 17/16 17.1% Q1 2017 RESULTS Gross margin 83.2 53.2% 94.6 51.7% 13.7% Opex before Dep.& Amort. 68.1 43.5% 74.1 40.4% 8.9% Provisions for bad debt 2.0 1.3% 1.0 0.5% -51.4% EBITDA 13.1 8.4% 19.6 10.7% 48.
Slide 48: Evolution of sales by geographical area
48 Evolution of 2016 | 2017 | sales by €M % sales €M % sales Evol. 17/16 geographical Spain 33.8 21.6% 36.6 20.0% 8.6% South Europe - Rest 39.1 25,0% 44.0 24.0% 12.5% area Central & Northern Europe Eastern Europe 23,7 6.2 15.2% 4.0% 27.0 7.4 14.7% 4.0% 13.6% 19.5% Asia and Australia 30.1 19.2% 35.3
Slide 49: Evolution of sales by business unit
49 Evolution of 2016 | 2017 | sales by €M % sales €M % sales Evol. 17/16 141,3 90,3% 168,3 91,9% 19,1% business Pool & Wellness Residential 87,3 55,8% 104,1 56,8% 19,2% unit Commercial 17,6 11,3% 20,2 11,0% 14,7% Pool Water Treatment 23,2 14,8% 28,2 15,4% 21,4% Fluid Handling 13,1 8,4% 15,8 8,6% 20,
Slide 50: Net working capital
50 Net Working Capital (€m) Net January - March 251, 224, 7 working Evol. 9 €M 2016 2017 17/16 capital Inventory 182.7 200.5 9.8% Accounts receivable 190.5 215.8 13.2% Accounts payable 148.3 164.6 11.0% RESULTS Q1 2017 Net working capital 224.9 251.7 11.9% Adjusted net working 241.0 256,2 6,3% capit
Slide 51: Net financial debt and free cash flow
51 Net Net financial debt (€m) January - March financial 220, 9 €M 2016 2017 Evol. 17/16 debt and Net profit 0.4 4.5 4.1 Depreciation (+) 9.2 9.6 0.4 free cash 212, 6 Increase (-) / Decrease (+) adjusted NWC -54.9 -61,5 -6,6 flow Capex (organic) -7.4 -6.2 1.2 Free Cash Flow pre- -52.7 -53.6 -0,9 acq
Slide 52: Conclusions
Conclusions 52 Q1 2017 RESULTS Excellent performance in the first quarter of 2017, exceeding our expectations for this period: • Strong sales growth in virtually all markets, based on the preparation of the campaign in the northern hemisphere. • Very good results thanks to good operating leverage in
Slide 53: Thank you
53 THANK YOU (+34) (0)93 724 39 00 Investors_relations@fluidra.com www.fluidra.com Av. Francesc Macià 60, 20th floor - 08208 Sabadell (Barcelona) 28 April 2017 www.fluidra.com