Flugger Group A/s Class B · OMXCOP:FLUG_B
Flugger Group A/s Class B — Q4 2021/22 Earnings Presentation
24 slides from Flugger Group A/s Class B's earnings presentation, Jun 28, 2022
Slide 1: Investor presentation Q4 2021/22
Investor presentation Q4 2021/22
Slide 2: Flügger management team
Investor presentation Q4 2021/22 Flügger management team The management team of Flügger Sune Schnack, CEO Poul Erik Stockfleth, CFO Ulf Schnack, CDO Previous experience Previous experience Previous experience 2
Slide 3: Flügger at a glance
Investor presentation Q4 2021/22 Flügger at a glance Key figures 2021/22 – continuing operations Flügger’s business model Revenue mDKK EBIT* mDKK Production Sales channels Customers Own stores 2,322 173 Franchise stores BtB E-commerce R&D BtC Full-time employees Markets DIY etc. 1,804 15 Brand examp
Slide 4: EBIT affected by significant price increases in raw materials, energy and logistics
Investor presentation Q4 2021/22 EBIT affected by significant price increases in raw materials, energy and logistics, as well as write-downs due to war in Eskaro’s core markets EBIT development (mDKK) 228 Estimated Continuing operations Covid effect 173 74 99 83 Activities held for sale (Russia and
Slide 5: Intensifying strategic initiatives will drive profitable growth & efficiency
Investor presentation Q4 2021/22 Intensifying strategic initiatives will drive profitable growth & efficiency Key strategic initiatives towards 2023/24 CSR targets towards 2023/24 1 VALUE BASED PRICING Optimization of pricing across product and segments as well as focusing on margin enhancing initia
Slide 6: Positive traction on key CSR focus areas
Investor presentation Q4 2021/22 Positive traction on key CSR focus areas Key strategic targets – download our CSR report: here 76% 11% 41% buckets with reduction in Eco-labeled CO2 paint (wet recycled per produced goods) plastic liters wet goods 100% Eco-labelled 75% packaging based on CO2 neutral
Slide 7: Acquisitions with strategic rationales
Investor presentation Q4 2021/22 Acquisitions with strategic rationales Year of acquisition 2019 2020 2021 2021 2022 UAB Daniški dažai Figures at time of acquisition Revenue c. 8 mDKK c. 145 mDKK c. 390 mDKK c. 30 mDKK c. 32 mDKK Geography Full-time employees 4 c. 190 c. 1,100 22 14 Sales channel On
Slide 8: Launch of Notes®
Investor presentation Q4 2021/22 Launch of Notes® Notes® is a pure online concept – target group is the fashion-conscious consumer with an interest in interior design Digitalization of Flügger (group figures) 10% is the 3% ambition of current 1% revenue is of revenue online was online one year ago 1
Slide 9: Delayed effect on margins from changes in raw material prices
Investor presentation Q4 2021/22 Delayed effect on margins from changes in raw material prices Usually when raw materials increase there is a period with sales price increase behind the curve, followed by a period ahead Raw material price index* Apr-22 assumptions LTM GM (Segment 1) Illustrative Del
Slide 10: Q4 21/22 highlights – Continuing operations
Investor presentation Q4 2021/22 Q4 21/22 highlights – Continuing operations Revenue (mDKK) EBIT* (mDKK) Own & franchise stores (#) +3% -38.2% +1% 550 567 28 372 374 17 232 243 Own stores 140 131 Franchise Q4 20/21 Q4 21/22 Q4 20/21 Q4 21/22 Q4 20/21 Q4 21/22 Gross Margin (%) EBIT-margin* (%) ROCE (
Slide 11: Full-year 21/22 highlights – Continuing operations
Investor presentation Q4 2021/22 Full-year 21/22 highlights – Continuing operations Revenue (mDKK) EBIT* (mDKK) Own & franchise stores (#) +7% -24.0% +1% 2,162 2,322 228 372 374 173 232 243 Own stores 140 131 Franchise FY 20/21 FY 21/22 FY 20/21 FY 21/22 FY 20/21 FY 21/22 Gross Margin (%) EBIT-margi
Slide 12: Q4 21/22 highlights – Overall result impacted by the war in Ukraine
Investor presentation Q4 2021/22 Q4 21/22 highlights – Overall result impacted by the war in Ukraine. Earnings impacted prices on raw materials, energy & distribution Flügger Group Results Sales impacted by the war in Ukraine mDKK Q4 21/22 Q4 20/21 Change ▪ The Q4 financial result was impacted by th
Slide 13: Full-year 21/22 highlights – Overall sales growth driven by acquired activities
Investor presentation Q4 2021/22 Full-year 21/22 highlights – Overall sales growth driven by acquired activities. Earnings reflect the accelerated cost increases & supply challenges Flügger Group Results Overall sales growth impacted by the lower Consumer & DIY sales mDKK 2021/22 2020/21 Change ▪ Or
Slide 14: Net sales increased 7% driven by acquired activities
Investor presentation Q4 2021/22 Net sales increased 7% compared to last year driven by the acquired activities. Organic growth impacted by the lower demand in Consumer & DIY Group sales development Revenue Revenue, LTM Full-year revenue effects (mDKK) Net Sales Net Sales mDKK LTM mDKK 700 2.400 650
Slide 15: Segment 1 Own Stores & Resellers: Q4 & FY
Investor presentation Q4 2021/22 Segment 1 Own Stores & Resellers: Q4 & FY Sales development by geographical segment Organic Reported Revenue (mDKK) FY 20/21 Currency M&A FY 21/22 ▪ Flat organic growth positively influenced Growth Growth by professional painters and negatively Denmark* 673 1% 3% -8%
Slide 16: Segment 2 DIY: Q4 & FY
Investor presentation Q4 2021/22 Segment 2 DIY: Q4 & FY Sales development by geographical segment ▪ The segment realized negative organic Organic Reported Revenue (mDKK) FY 20/21 Currency M&A FY 21/22 growth of -7%, driven by a normalization Growth Growth FY Unicell Nordic compared to very high dema
Slide 17: Segment 3 Eskaro Group AB: Q4 & FY
Investor presentation Q4 2021/22 Segment 3 Eskaro Group AB: Q4 & FY Sales development by geographical segment ▪ Revenue in segment 3 is generated soly Organic Reported Revenue (mDKK) FY 20/21 Currency M&A FY 21/22 by Eskaro. The activities in Russia and Growth Growth Belarus are held for sale and no
Slide 18: EBIT impacted significantly by increased raw material prices
Investor presentation Q4 2021/22 EBIT impacted significantly by increased raw material prices, in addition to higher costs related to distribution and energy Group EBIT* development Full-year EBIT* effects (mDKK) EBIT mDKK EBIT, quarterly EBIT, LTM 228 150 300 250 37 100 200 150 50 100 173 39 0 50 1
Slide 19: Development in NIBD impacted by acquired activities and CAPEX
Investor presentation Q4 2021/22 Development in NIBD impacted by the acquired activities and CAPEX related to the factory footprint Financial solidity NIBD* mDKK NIBD* Equity ratio Equity ratio % 1 NIBD driven by acquisitions and CAPEX executed in 21/22 400 300 100% 80% 2 NIBD impacted by increased
Slide 20: Return on Capital Employed
Investor presentation Q4 2021/22 Return on Capital Employed Financial solidity ROCE, % RoCE EBIT-Margin (%) EBIT Margin,% 1 ROCE impacted negatively by 4.7%-point due to the impairment of Eskaro 30% 12% 2 ROCE diluted by the acquisition of Eskaro and Malgodt.dk, 25% 10% where synergies are yet to ki
Slide 21: Price/earnings ratio up impacted by write-downs related to Eskaro
Investor presentation Q4 2021/22 Price/earnings ratio up impacted by the write-downs related to Eskaro and the lower earnings following the higher cost levels Development in price/earnings and stock price (DKK) Stock price incl. reinvested dividends (DKK) Accumulated dividend Dividend/share proposed
Slide 22: Share price development
Investor presentation Q4 2021/22 Share price development Flügger’s share price development Flügger’s relative share price development (indexed) Share price Share price (DKK) Volume (# of shares) Price indexed 800 250 Flügger Akzo Nobel 700 200 PPG Sherwin Williams 600 150 471 500 100 400 50 300 Avg.
Slide 23: 2022/23 Guidance
Investor presentation Q4 2021/22 2022/23 Guidance: Segment 1 and 2 Revenue of 2.200m-2.400m and EBIT of 80-130m. Segment 3 EBIT of +/- 10m 2022/23 guidance (DKK) Key drivers for guidance Segment 1 & 2 Starting March 2022, Flügger has experienced a significant decline in sales to consumers, which has
Slide 24: Thank you for listening
Thank you for listening Please contact IR@flugger.com for any further questions or visit flugger.com/investor 24