Fluidra, S.a. · BME:FDR
Fluidra — Investor Day (October 2019)
36 slides from Fluidra's investor day presentation, Oct 16, 2019
Slide 1: Your perfect pool experience
Your perfect pool experience 2019 Investor’s Day 16 October 2019
Slide 2: Disclaimer
2 2022 PLAN Disclaimer This document is for information purposes only and does not constitute an offer to sell, exchange or buy, or an invitation to make offers to buy, securities issued by any of the companies mentioned. This financial information has been prepared by Fluidra, S.A. ("Fluidra", an
Slide 3: Today's presenters
3 2022 PLAN Today’s presenters Eloi Planes Bruce Brooks Xavier Tintoré Executive Chairman CEO CFO
Slide 4: Today's agenda
4 2022 PLAN Today’s agenda Highlights one year into our 2022 Strategic Plan Eloi Planes Key investment highlights and reasons to believe Bruce Brooks Compelling equity story with strong value creation Xavier Tintoré Summary Bruce Brooks Q&A All
Slide 5: Highlights one year into our 2022 Strategic Plan
5 2022 PLAN Highlights one year into our 2022 Strategic Plan • WE ARE ONE FLUIDRA – The integration is mostly complete with the vast majority of tasks behind us and highly satisfactory performance – Cultural integration is proceeding well • SUCCESSFUL PERFORMANCE ON COST SYNERGIES – Synergy realizat
Slide 6: Key investment highlights
6 2022 PLAN Key investment highlights 1 Structurally attractive industry that grows ~2x GDP • New pool construction below historical average feeds ever growing installed base • Large installed base drives annuity-like aftermarket • Double engine model: growth & resilience 2 Global leader in the pool
Slide 7: Key investment highlights: reasons to believe
7 2022 PLAN Key investment highlights: reasons to believe 1 Structurally attractive industry that grows ~2x GDP • New pool construction below historical average feeds ever growing installed base • Large installed base drives annuity-like aftermarket • Double engine model: growth & resilience 2 Globa
Slide 8: Broadest geographic footprint reduces risk
8 2022 PLAN Broadest geographic footprint reduces risk Sales EBITDA (€ m) (€ m) • Global sales balance provides growth ahead of peers • North America growth of c. -5% in sales ‒ Results impacted by Tijuana plant, Amazon distribution change and weather impact • Europe c. 6% sales growth Note: Sales a
Slide 9: Key investment highlights: reasons to believe
9 2022 PLAN Key investment highlights: reasons to believe 1 Structurally attractive industry that grows ~2x GDP • New pool construction below historical average feeds ever growing installed base • Large installed base drives annuity-like aftermarket • Double engine model: growth & resilience 2 Globa
Slide 10: Iconic brands provide opportunity to segment offering and gain penetration
10 2022 PLAN Iconic brands provide opportunity to segment offering and gain penetration • Jandy gained first-mover advantage by taking all equipment off-line in North America – Brand dedicated to professionally installed pool equipment – This move increases pool professionals’ loyalty to our company
Slide 11: Key investment highlights: reasons to believe
11 2022 PLAN Key investment highlights: reasons to believe 1 Structurally attractive industry that grows ~2x GDP • New pool construction below historical average feeds ever growing installed base • Large installed base drives annuity-like aftermarket • Double engine model: growth & resilience 2 Glob
Slide 12: Core competency in innovation: Quattro
12 2022 PLAN Core competency in innovation: Quattro • 2019 launch of a revolutionary automatic pressure cleaner: Quattro • Pressure cleaners have been in the market for years – stable market vs. high growth for robotic cleaners • Fluidra was able to think outside the box and bring a winning product
Slide 13: Key investment highlights: reasons to believe
13 2022 PLAN Key investment highlights: reasons to believe 1 Structurally attractive industry that grows ~2x GDP • New pool construction below historical average feeds ever growing installed base • Large installed base drives annuity-like aftermarket • Double engine model: growth & resilience 2 Glob
Slide 14: Value initiatives and lean update
14 2022 PLAN Value initiatives and lean update (€ m) • Value initiatives and lean target revised upwards by €5m to €30m – Active projects for €18m as of 2019 – Ongoing process, provides future opportunities • US tariff is an offset to visualizing 2019 incremental value initiatives and lean impact on
Slide 15: Key investment highlights: reasons to believe
15 2022 PLAN Key investment highlights: reasons to believe 1 Structurally attractive industry that grows ~2x GDP • New pool construction below historical average feeds ever growing installed base • Large installed base drives annuity-like aftermarket • Double engine model: growth & resilience 2 Glob
Slide 16: Cost synergies update
16 2022 PLAN Cost synergies update (€ m) • Commercial integration cost synergies provide upside – Updated target by €5m from €12m to €17m. After first year of integration, additional synergies have been identified and executed: • North America: €2m • Europe and SoHem: €2m • HQ: €1m – Executed faster
Slide 17: Key investment highlights: reasons to believe
17 2022 PLAN Key investment highlights: reasons to believe 1 Structurally attractive industry that grows ~2x GDP • New pool construction below historical average feeds ever growing installed base • Large installed base drives annuity-like aftermarket • Double engine model: growth & resilience 2 Glob
Slide 18: Impacts from the merger: revenue dis-synergies
18 2022 PLAN Impacts from the merger: revenue dis-synergies 1 Additional impacts of Aquatron divestiture – Acquirer desire to develop US presence faster than anticipated impacting Aqua Products – Incremental impact on our revenue due to the remedy implementation and the resulting agreement to distri
Slide 19: Revenue synergies
19 2022 PLAN Revenue synergies Ambition of €59m in revenue synergies to be reached by 2022 Initiatives Revenue synergies evolution (€ m) 59 • North America – Expand residential pool offering – Develop a new commercial pool business unit leveraging existing legacy Fluidra factories and knowledge • Eu
Slide 20: Revenue synergies
20 2022 PLAN Revenue synergies North America: expand residential pool offering Expansion opportunities Market and business drivers Residential 37% pool Chemicals 53% N. America pool market Where we compete U.V. Systems Fluid handling € 3.5 bn (20% market share) 10% Commercial pool Identified Revenue
Slide 21: Revenue synergies
21 2022 PLAN Revenue synergies North America commercial pool Market overview Competitive landscape Fluidra Larger Waterparks 1% Commercial 33% 8% Other large 19% equipment players Municipal Lodging Commercial Parks 22% pool excl. Commercial pool excl. chemicals Health/ 12% chemicals €0.4bn Luxury Cl
Slide 22: Revenue synergies
22 2022 PLAN Revenue synergies North America commercial pool Expansion opportunities Business plan drivers • Launch new commercial offering leveraging Fluidra’s existing factories • Attack the HMAC channel with a dedicated new sales Pumps organization • Target a mix of existing North American custom
Slide 23: Revenue synergies
23 2022 PLAN Revenue synergies Europe and Southern Hemisphere Expansion opportunities Business drivers • Differentiated go-to-market strategies depending on geographies: - Cross-selling products: for overlapping geographies, leveraging existing platforms to Robots Heating Suction cleaners maximize s
Slide 24: Summary: revenue synergies and dis-synergies
24 2022 PLAN Summary: revenue synergies and dis-synergies Net revenue €42m synergies opportunity Revenue Revenue Revenue Revenue Revenue Revenue Revenue dis-synergies synergies dis-synergies synergies dis-synergies synergies synergies 2019 2020 2021 2022 Bolt-on acquisitions can provide additional a
Slide 25: Key investment highlights: compelling equity story
25 2022 PLAN Key investment highlights: compelling equity story 1 Structurally attractive industry that grows ~2x GDP • New pool construction below historical average feeds ever growing installed base • Large installed base drives annuity-like aftermarket • Double engine model: growth & resilience 2
Slide 26: Strong sales growth with resilient business model (1/2)
26 2022 PLAN Strong sales growth with resilient business model (1/2) Strategic Plan sales evolution (€ m) 1,660 CAGR: c. 6% from guidance midpoint to 2022 target • Our sales outlook remains unchanged for the 2022 Plan c. 6% to • Revenue dis-synergies are higher guidance midpoint than expected due to
Slide 27: Strong sales growth with resilient business model (2/2)
27 2022 PLAN Strong sales growth with resilient business model (2/2) Perspectives vs. 2007 Legacy Fluidra 2007 sales Fluidra 2018 PF sales 8% New build sales over all-time low 50% Aftermarket sales 26% New build sales at all-time low Combined business is 92% resilient New build sales 50% 66% Afterma
Slide 28: Key investment highlights: compelling equity story
28 2022 PLAN Key investment highlights: compelling equity story 1 Structurally attractive industry that grows ~2x GDP • New pool construction below historical average feeds ever growing installed base • Large installed base drives annuity-like aftermarket • Double engine model: growth & resilience 2
Slide 29: Compelling equity story with strong value creation
29 2022 PLAN Compelling equity story with strong value creation EBITDA outlook (€ m) 351 • Our EBITDA outlook for the 2022 Strategic Plan remains unchanged CAGR: c. 12% from guidance midpoint to 2022 target • Good cost synergies, value initiatives c. 15% to and lean results offset by tariff guidance
Slide 30: Key investment highlights: compelling equity story
30 2022 PLAN Key investment highlights: compelling equity story 1 Structurally attractive industry that grows ~2x GDP • New pool construction below historical average feeds ever growing installed base • Large installed base drives annuity-like aftermarket • Double engine model: growth & resilience 2
Slide 31: Excellent cash generation to fund value accretive initiatives
31 2022 PLAN Excellent cash generation to fund value accretive initiatives Financial policy is to operate company at ≈ 2x NFD / EBITDA leverage Ample liquidity and flexible long-term financing in-place Expected leverage approximately 1x NFD / EBITDA ’22E excluding dividends and potential M&A
Slide 32: Summary: solid and balanced business plan
32 2022 PLAN Summary: solid and balanced business plan On track for 2022 Great operating and financial performance Sales growth 5 – 8% 1 Structurally attractive industry that grows ~2x GDP EBITDA margin ~21% Net Income CAGR ~30% 2 Global leader in the pool and wellness industry Strong Cash Flow gene
Slide 33: APPENDIX
APPENDIX
Slide 34: Ownership structure and shareholders' agreement
34 2022 PLAN Ownership structure and shareholders’ agreement Ownership structure Shareholders’ agreement Rhône Capital: • Lock-up period until July 2020 • After lock-up period: Founding Families - Prohibition to sell to a single acquirer (i) more than 20% or (ii) Free float any number of shares if t
Slide 35: Analyst consensus
35 2022 PLAN Analyst consensus IFRS 16 adjusted Analyst consensus (in € m) FY 2019 FY 2020 Contributors FY 2019 FY 2020 Contributors Sales 1,369 1,445 6 1,369 1,440 4 Adjusted EBITDA 247 279 6 264 298 5 Adjusted EBITA 215 na 1 211 242 3 Net Working Capital 339 359 5 340 357 3 Net Financial Debt 642
Slide 36: Thank you for your attention!
THANK YOU FOR YOUR ATTENTION!