Hayward Holdings, Inc. · NYSE:HAYW
Hayward — Q4 2021 Earnings Presentation
23 slides from Hayward's earnings presentation, Mar 2, 2022
Slide 1: Fourth Quarter 2021 Earnings
Fourth Quarter 2021 Earnings March 2, 2022 © 2022 Hayward Holdings, Inc. 1
Slide 2: Fourth Quarter 2021 Earnings Call
Fourth 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 © 2022 Hayward Holdings, Inc. 2
Slide 3: Special Note Regarding Forward-Looking Statements
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements and within the meaning of the Private Litigation Securities Reform Act of 1995 that are based on the beliefs of management as well as assumptions made by, and information currently available to ma
Slide 4: Q4 Financial Overview
Q4 Financial Overview Net Sales ($mm) Adjusted EBITDA ($mm) Margin (% of net sales) Strong Sales Growth Ongoing demand for products across segments, increased $352 output and strategic pricing drive higher sales growth $106 +35% +43% YoY 30.0% YoY $261 Continued Margin Expansion $74 169 bps in AEBIT
Slide 5: FY 2021 Financial Overview
FY 2021 Financial Overview Net Sales ($mm) Adjusted EBITDA ($mm) Margin (% of net sales) Record Sales Growth Higher volumes driven by robust demand for equipment and $422 $1,402 increased market adoption of products 30.1% +60% YoY +82% YoY Robust Margin Expansion $875 363 bps in AEBITDA margin drive
Slide 6: Hayward 2021 Drivers of Growth
Hayward 2021 Drivers of Growth IoT Digital Leadership Dealer Conversions New Product Technologies ✓ Launch of new Omni Control derivatives ✓ Established field-base Business Development ✓ Launched 6 new platform products ✓ YoY Omni user base increased >47% roles 100% focus new dealer acquisition ✓ Ac
Slide 7: Omni Controls – Winning Technology at Heart of SmartPad
Omni Controls – Winning Technology at Heart of SmartPad Controls Pumps #3 #2 Omni Creates the UV/O3 Filters PULL Cleaners Salt Cl #5 Heaters Omni – at the Safety #4 Center of the Connected In-floor Lights #1 Backyard Ease of Integrating Acquisitions #1 to #5 represent US Industry YoY Unit Growth (#1
Slide 8: US Pool Market SmartPad Aftermarket Conversion Upgrades
US Pool Market SmartPad™ Aftermarket Conversion Upgrades Key Sustainable Aftermarket Conversion Opportunities Increase TAM Aftermarket New Construction 37% of 5.3mm Pools Digital ~28 ~65 Conversion @ $1,500 OEM Price = $3.0bn % % Controls No Controls 25% of 5.3mm Pools Chemical ~35% ~60% Conversion
Slide 9: US Pool Market SmartPad New Construction & Remodel Annuity
US Pool Market SmartPad™ New Construction & Remodel Annuity New Construction/Aftermarket Remodel Lifetime Annuity Value Technology, feature-rich pools increase TAM in Year 1 at Construction then create an Aftermarket annuity over ~30 year life of the Pool Non-SmartPad Pool SmartPad Pool OEM equipmen
Slide 10: M&A Adding Value to Omni & the Hayward SmartPad
M&A Adding Value to Omni & the Hayward SmartPad Closed on 3 IoT enabled technology businesses focused on ambiance and enjoyment of the pool/outdoor living space ✓ Omni ready - LED Light Controls ✓ Omni ready - Hydraulic Valve design for dynamic Water Feature Control ✓ Innovative and attractive desig
Slide 11: Fourth Quarter 2021 Highlights
Fourth Quarter 2021 Highlights Net Sales of $352 million +35% YoY ✓ Higher volumes driven by new product adoption & SmartPad conversion Net Sales growth ✓ Accelerated production capacity despite constrained supply chains ✓ Achieved record daily shipment rates of $5.9 million Gross Profit of $165 mil
Slide 12: Full Year 2021 Highlights
Full Year 2021 Highlights Net Sales of $1,402 million +60% YoY ✓ Secular trends in outdoor living and conversion drove robust demand ✓ Increased market adoption of new products and technologies Net Sales growth ✓ Investments in capacity and distribution increased output levels Gross Profit of $656 m
Slide 13: North America Q4 Segment Overview
North America Q4 Segment Overview $298 million ✓ Higher demand for environmentally sustainable, automated products Net Sales +39.9% YoY ✓ Increased production levels to meet sustained demand 47.8% ✓ Inflationary environment and supply chain disruptions lead to higher costs Gross Profit Margin +73 bp
Slide 14: North America FY 2021 Segment Overview
North America FY 2021 Segment Overview $1,161 million ✓ Higher volumes in residential pool equipment sales Net Sales +64.3% YoY ✓ Favorable pricing and foreign currency 48.2% ✓ Benefiting from net sales growth, manufacturing leverage and cost savings Gross Profit Margin +79 bps YoY ✓ Offsetting infl
Slide 15: Europe & ROW Q4 Segment Overview
Europe & ROW Q4 Segment Overview ✓ Sustained market demand in Europe and strong recovery in Asia $55 million Net Sales +14.3% YoY ✓ Significant volume growth on top of strong prior year growth ✓ Favorable product mix and accelerated price realization 42.5% Gross Profit Margin +630 bps YoY ✓ Partiall
Slide 16: Europe & ROW FY 2021 Segment Overview
Europe & ROW FY 2021 Segment Overview ✓ Sustained market demand and reopening of economies $241 million Net Sales +42.7% YoY ✓ Strong volume growth, favorable pricing and foreign currency ✓ Favorable product mix and volume leverage 40.2% Gross Profit Margin +323 bps YoY ✓ Partially offset by higher
Slide 17: Core Values Drive Commitment to ESG
Core Values Drive Commitment to ESG Recent Developments ✓ Completed Global Employee Engagement Review ✓ Platinum Sponsorship of “Step Into Swim” ▪ Charity providing swimming lessons to underprivileged Core Values ✓ Inaugural ESG report to be published in 2022 © 2022 Hayward Holdings, Inc. 17
Slide 18: Sustainability of Growth
Sustainability of Growth Macroeconomics USA In-Ground New Pool Construction ✓ Strong long-term secular trends continue • Deurbanization, Migration to sunbelt, Millennial buyers, WFH 1995 to 2008 Median ~153k ✓ Key economic indicators remain positive • Employment, Residential Investment, Home Prices
Slide 19: 2022 Financial Outlook
2022 Financial Outlook ✓ Net Sales growth of 9% to 12% YoY (with de minimis acquisition contribution) Full Year ✓ Adjusted EBITDA1 of $460 to $475 million; up 9% to 13% YoY Outlook Reflects: ✓ Strong carry over demand trends and expected conversion of 2022 order file ✓ Price realization to offset in
Slide 20: Hayward’s Value Proposition
Hayward’s Value Proposition Pure Play Market Leading Brand in Growing Outdoor Living Sector Competitive Moat – Full Product Line, Omni Channel Presence, Operational Excellence and Large Installed Base Leaders in the SmartPad™ Conversion – IoT-Connected and Environmentally Conscious Products Strategi
Slide 21: Appendix: Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations © 2022 Hayward Holdings, Inc. 21
Slide 22: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation © 2022 Hayward Holdings, Inc. 22
Slide 23: Adjusted Segment Income Reconciliation
Adjusted Segment Income Reconciliation © 2022 Hayward Holdings, Inc. 23