Flugger Group A/s Class B · OMXCOP:FLUG_B
Flugger Group A/s Class B — Q1 2022/23 Earnings Presentation
16 slides from Flugger Group A/s Class B's earnings presentation, August 2022
Slide 1: Flügger Group Investor presentation Q1 2022/23
Q4 2021/22 Flügger Group Investor presentation Q1 2022/23
Slide 2: Flügger at a glance
Investor presentation Q1 2022/23 Flügger at a glance Key LTM figures Q1 22/23 Flügger’s business model Revenue mDKK EBIT* mDKK Production Sales channels Customers Own stores 2,514 115 Franchise stores BtB E-commerce R&D BtC Full-time employees Markets DIY etc. 2,246 17 Brand examples Segment 1 No. f
Slide 3: Delayed effect on margins from changes in raw material prices
Investor presentation Q1 2022/23 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 4: Q1 22/23 highlights
Investor presentation Q1 2022/23 Q1 22/23 highlights Revenue (mDKK) EBIT* (mDKK) Own & franchise stores (#) -1% -47% -3% 736 730 124 383 370 66 240 243 Own stores 143 127 Franchise Q1 21/22 Q1 22/23 Q1 21/22 Q1 22/23 Q1 21/22 Q1 22/23 Gross Margin (%) EBIT-margin* (%) ROCE* (%) -5.3pp -7.9pp -11.9pp
Slide 5: Satisfactory sales performance. Earnings impacted by high prices on raw materials, energy & logistics
Investor presentation Q1 2022/23 Q1 22/23 highlights – Satisfactory sales performance. Earnings impacted by high prices on raw materials, energy & logistics Flügger Group Results Sales overall at a satisfactory level mDKK Q1 22/23 Q1 21/23 Change ▪ In the Q1 financial result, activities in Russia an
Slide 6: Organic growth driven by lower demand in consumer & DIY offset by currency
Investor presentation Q1 2022/23 Organic growth driven by lower demand in consumer & DIY offset by positive development from currency Group sales development Net Sales Revenue Revenue, LTM Net Sales Q1 revenue effects (mDKK) mDKK LTM mDKK 750 2.700 0 700 2.400 650 22 600 2.100 29 550 736 1.800 500 7
Slide 7: Segment 1 Own Stores & Resellers: Q1 22/23
Investor presentation Q1 2022/23 Segment 1 Own Stores & Resellers: Q1 22/23 Sales development by geography in Segment 1 ▪ Negative organic growth driven by lower Organic Reported Revenue (mDKK) Q1 21/22 Currency M&A Q1 22/23 sales to consumers – a trend impacting Growth Growth the industry in genera
Slide 8: Segment 2 DIY: Q1 22/23
Investor presentation Q1 2022/23 Segment 2 DIY: Q1 22/23 Sales development by geography in Segment 2 ▪ The segment realised negative organic Organic Reported Revenue (mDKK) Q1 21/22 Currency M&A Q1 22/23 growth of -8%, driven by a normalisation Growth Growth compared to very high demand in 20/21 Q1
Slide 9: Segment 3 Eskaro Group AB: Q1 22/23
Investor presentation Q1 2022/23 Segment 3 Eskaro Group AB: Q1 22/23 Sales development by geography in Segment 3 ▪ Revenue in segment 3 is generated Organic Reported Revenue (mDKK) Q1 21/22 Currency M&A Q1 22/23 solely by Eskaro Growth Growth Russia 40 59% 0% 33% 77 92% ▪ In the 2021/22 annual repor
Slide 10: EBIT impacted by lower margins and higher cost levels
Investor presentation Q1 2022/23 EBIT impacted by lower margins and higher cost levels on raw materials, energy & logistics Group EBIT development (mDKK)* EBIT, quarterly EBIT, LTM Q1 EBIT effects (mDKK) Quarterly LTM 150 300 124 250 100 200 55 150 50 100 66 4 50 14 35 6 0 0 15 -50 -100 Q1 GP PROD S
Slide 11: Positive development in NIBD compared to year-end
Investor presentation Q1 2022/23 Positive development in NIBD compared to year-end, driven mainly by timing effects of working capital and sale of own shares Financial solidity NIBD mDKK NIBD Equity ratio Equity ratio % 1 NIBD development compared to last quarter is driven by 400 100% timing in work
Slide 12: Price/earnings ratio driven mainly by write-downs related to Eskaro
Investor presentation Q1 2022/23 Price/earnings ratio driven mainly by 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) 900 Accumulated dividend Dividend/share propos
Slide 13: Share price development
Investor presentation Q1 2022/23 Share price development Flügger’s share price development Flügger’s relative share price development (indexed) Share price Price indexed 800 260 Share price (DKK) Flügger 240 Volume (# of shares) Akzo Nobel 700 220 PPG 200 Sherwin Williams 180 600 160 140 500 120 100
Slide 14: Development in Return on Capital Employed
Investor presentation Q1 2022/23 Development in Return on Capital Employed mainly driven by the impairment of Eskaro and the lower earnings last 12 months Financial solidity ROCE, % RoCE EBIT-Margin* (%) EBIT Margin* % 1 ROCE impacted negatively by 6.2%-point due to the impairment of Eskaro 30% 12%
Slide 15: 2022/23 Guidance: Revenue of 2,500m-2,700m and EBIT of 100-150m
Investor presentation Q1 2022/23 2022/23 Guidance: Revenue of 2,500m-2,700m and EBIT of 100-150m Selected financial metrics (DKK) for 2022/23 Key drivers for guidance Updated guidance as of 9 August 2022, including reclassification of the, ▪ Revenue expectation 22/23 is driven by positive impact fro
Slide 16: Thank you for listening
Thank you for listening Please contact IR@flugger.com for any further questions or visit flugger.com/investor 16