Dometic Group Ab · OMXSTO:DOM
Dometic Group Ab — Q1 2019 Earnings Presentation
37 slides from Dometic Group Ab's earnings presentation, Apr 26, 2019
Slide 1: Interim Presentation Q1 2019
INTERIM PRESENTATION Q1 2019 26 April 2019
Slide 2: Juan Vargues, President & CEO
JUAN VARGUES, PRESIDENT & CEO
Slide 3: Q1 2019 Highlights
Q1 2019 HIGHLIGHTS Growth ▪ +7% growth excluding RV OEM in comparable currency ▪ +1% organic growth excluding RV OEM and M&A ▪ Continued strong development in Marine ▪ Good organic growth in EMEA and strong growth in Kampa ▪ -14% growth in RV OEM in comparable currency ▪ Strengthening Aftermarket or
Slide 4: Q1 2019 Financial Summary
Q1 2019 FINANCIAL SUMMARY Net sales of SEK 4,650 m, +5% total growth NET SALES AND EBIT BEFORE I.A.C ▪ -6% organic SEKm SEKm ▪ +7% FX Net sales 5,000 +5% ▪ +4% M&A 900 4,500 800 4,000 EBIT EBIT before i.a.c. of SEK 618 m, -3% -3% 700 ▪ EBIT margin of 13.3% (14.4%) 3,500 600 + Efficiency improvements
Slide 5: Sales Growth in Constant Currency
SALES GROWTH IN CONSTANT CURRENCY • Average quarterly organic growth Total growth SEKm of 8% Q1 17 – Q1 19. 40% 19,000 36% 18,000 32% 17,000 28% 16,000 24% 15,000 20% 14,000 16% 13,000 12% 12,000 8% 4% 11,000 0% 10,000 -4% 9,000 -8% 8,000 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 20
Slide 6: Sales Growth in Constant Currency
SALES GROWTH IN CONSTANT CURRENCY Total growth Q1 2018 to Q1 2019: Organic growth SEKm • Non RV OEM: +7% 24% 5,500 • RV OEM: -14% 20% 5,000 16% Organic growth Q1 2018 to Q1 2019: 4,500 12% • Non RV OEM: +1% 8% 4,000 • RV OEM: -14% 4% 3,500 0% 3,000 -4% 2,500 -8% 2,000 -12% -16% 1,500 Q1 2018 Q2 2018
Slide 7: Sales Growth in Constant Currency LTM
SALES GROWTH IN CONSTANT CURRENCY LTM Total growth 2014 to 2019 LTM: Organic growth SEKm • Non RV OEM: +113% 24% 19,000 • RV OEM: +64% 18,000 20% 17,000 Average organic growth 2014 to 2019 LTM: 16% 16,000 • Non RV OEM: +7% 12% 15,000 • RV OEM: +5% 14,000 8% 13,000 4% 12,000 0% 11,000 10,000 -4% 9,00
Slide 8: Building Up a More Balanced Dometic
BUILDING UP A MORE BALANCED DOMETIC NON RV OEM GROWING FROM 57% OF SALES IN Q1 2018 TO 62% IN Q1 2019 Q1 2018: SEK 4,442m Q1 2019: SEK 4,650m -6% organic growth 38% -14%* 43% 57% 62% +7%* * In constant currency Non RV OEM RVOEM
Slide 9: EBIT and EBIT Margin Before I.A.C
EBIT AND EBIT MARGIN BEFORE I.A.C • 0.6% point EBIT margin EBIT RUN RATE 14.4% (13.8%) improvement rolling 12 months SEKm EBIT-margin 1,050 15% 900 14% 750 600 13% 450 300 12% 150 0 11% Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 EBIT EBIT margin, rolling 12 months
Slide 10: Product Highlights
PRODUCT HIGHLIGHTS Dometic CoolFun Cooling Box • World’s first bio-material thermoelectric cooling box • Made by fully recyclable bio-composite • USB port in the lid for charging of electronic devises • Can be operated by either 12 V or 230 V. • Cools down to 18°C below the ambient temperature and h
Slide 11: Americas
AMERICAS Net sales of SEK 2,241 m, -11% organic NET SALES AND EBIT MARGIN BEFORE I.A.C. ▪ Growth excluding RV of 5% 2,800 21.0% ▪ Strong Marine (+6%), Retail (+19%) and Lodging 2,400 18.0% (+12%) OEM, 74% 2,000 15.0% ▪ Soft RV OEM AM, 26% 1,600 12.0% EBIT before i.a.c. of SEK 259 m, -22% 1,200 9.0%
Slide 12: EMEA
EMEA Net sales of SEK 1,979 m, +3% organic NET SALES AND EBIT MARGIN BEFORE I.A.C. ▪ Aftermarket growth of 23% including Kampa 2,100 21.0% ▪ OEM growth of 3% 1,800 18.0% ▪ Strong growth in RV AM of 4%, CPV AM +2% and OEM, 50% 1,500 15.0% Marine AM +8% AM, 50% ▪ Strengthening Aftermarket organization
Slide 13: APAC
APAC Net sales of SEK 430 m, -10% organic NET SALES AND EBIT MARGIN BEFORE I.A.C. ▪ Sales negatively affected by softer demand in RV 600 24.0% OEM and Retail in Pacific 500 20.0% ▪ RV in Asia develops well +45% OEM, 45% ▪ Strong growth in Aftermarket in Asia +14% 400 16.0% AM, 55% 300 12.0% EBIT bef
Slide 14: Q1 Strategy Execution
Q1 STRATEGY EXECUTION Profitable expansion ▪ Continued strong growth in Marine 1 ▪ Positive evolution of Kampa ▪ Increased focus on Aftermarket growth Product leadership ▪ Making progress on global product platforms 2 ▪ SKU reduction accelerating Cost reductions ▪ Adapting capacity to new market dem
Slide 15: Per-Arne Blomquist, CFO
PER-ARNE BLOMQUIST, CFO Mobile living made easy. “> DOMETIC
Slide 16: 5 Years Sales, EBIT and Development
5 YEARS SALES, EBIT AND DEVELOPMENT NET SALES 110% ▪ Sales growth +110% 18 274 18 482 14 044 12 388 11 486 8 806 2014 2015 2016 2017 2018 2019 LTM EBIT BEFORE I.A.C 161% ▪ EBIT before i.a.c +161% 2 679 2 659 1 621 1 860 1 412 1 018 2014 2015 2016 2017 2018 2019 LTM
Slide 17: 5 Years EBITDA and Operating Cash Flow Development
5 YEARS EBITDA AND OPERATING CASH FLOW DEVELOPMENT EBITDA BEFORE I.A.C 167% ▪ EBITDA before i.a.c +167% 3 205 3 262 2 181 1 703 1 919 1 223 2014 2015 2016 2017 2018 2019 LTM OPERATING CASH FLOW 190% ▪ Operating cash flow +190% 2 616 2 727 1 727 1 390 1 296 940 2014 2015 2016 2017 2018 2019 LTM
Slide 18: Dometic Group Trends
DOMETIC GROUP TRENDS SALES (SEKm) EBIT BEF. I.A.C (SEKm) 19,000 2,700 18,000 2,550 2,400 17,000 2,250 16,000 2,100 15,000 1,950 1,800 14,000 1,650 13,000 1,500 10,000 1,350 Mar Jun Sep Dec Mar Jun Sep Dec Mar Mar Jun Sep Dec Mar Jun Sep Dec Mar 2017 2018 2019 2017 2018 2019 EBIT BEF. I.A.C (%) OPERA
Slide 19: Business Area Development
BUSINESS AREA DEVELOPMENT CPV SALES SPLIT, RV +5% +10% (-1% CC) (5% CC) BUSINESS AREA* 10,000 2,200 9,500 2,150 2,100 9,000 2,050 8,500 2,000 8,000 1,950 1,900 7,500 1,850 7,000 1,800 Mar Jun Sep Dec Mar Jun Sep Dec Mar Mar Jun Sep Dec Mar Jun Sep Dec Mar 2017 2018 2019 2017 2018 2019 MARINE +121% R
Slide 20: Key Ratios
KEY RATIOS Q1 Q1 FY SEKm 2019 2018 2018 Sales Net sales 4,650 4,442 18,274 Growth 4.7% 29.0% 30.1% Organic growth, % -5.7% 9.7% 4.7% Profitabitlity Gross profit 1,462 1,379 5,951 Gross profit, % 31.4% 31.1% 32.6% EBIT before i.a.c 618 638 2,679 EBIT before i.a.c., % 13.3% 14.4% 14.7% EBITDA before i
Slide 21: Net Sales Bridge Q1
DOMETIC GROUP NET SALES BRIDGE Q1 SEKm TRANSLATION FX DETAILS Share of +5% Net Sales impact 4,650 USD 195 65% EUR 60 20% AUD 6 2% 4,442 -6% 4% HKD 5 2% 7% GBP 5 2% CNY 2 1% Other 24 8% Total 298 Q1 2018 Translation FX Organic growth M&A Q1 2019
Slide 22: Earnings per Share – Q1
EARNINGS PER SHARE – Q1 SEKm Total Group 2019 EPS 2018 EPS • Q1 2019: Net Sales 4,650 4,442 Total tax rate: 30% (27%) EBIT (before i.a.c) 618 2.09 638 2.16 Tax paid: 28% (19%) Finance net -127 -0.43 -127 -0.43 Tax -147 -0.50 -136 -0.46 Result for the period 344 1.16 375 1.27 No. of shares 296 296 Ea
Slide 23: Regional Results
REGIONAL RESULTS Change (%) SEK million Q1 2019 Q1 2018 Rep. Adj.1) LTM 2019 FY 2018 Americas3) 2,241 2,287 -2% -10% 9,712 9,758 EMEA 1,979 1,696 17% 12% 6,988 6,706 Asia Pacific 430 459 -6% -9% 1,782 1,810 Net sales 4,650 4,442 5% -2% 18,482 18,274 Americas 259 334 -22% -28% 1,396 1,470 EMEA 267 20
Slide 24: Capex & Product Development
CAPEX & PRODUCT DEVELOPMENT (SEKm, % OF NET SALES) CAPEX 140 5% 1,8% 120 1,8% 4% 100 1.8% 80 3% ▪ Q1 2019 CAPEX: 60 127 117 1.8% of net sales. 100 2% 40 71 84 88 78 86 (1.8% in 2018) 63 1% 20 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2017 2017 2017 2018 2018 2018 2018 2019 PD 2,1% 100 1,8% 5% 2,2% 80 4%
Slide 25: Working Capital Development
WORKING CAPITAL DEVELOPMENT SEKm 600 23.3% 23.9% 25% 22.8% 400 20% ▪ Average CWC/LTM net sales: 200 23,9 % (23,4% Excl. Kampa) 253 311 15% 183 148 0 -141 -149 10% -200 -546 -556 5% -400 -825 0% -600 -800 -5% -1,000 -10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2017 2017 2017 2018 2018 2018 2018 2019 Average
Slide 26: Working Capital
WORKING CAPITAL SEKm 4,716 Comment: 4,633 4,298 4,317 Kampa: 3,986 +SEK 221 m 3 707 3 873 Inventory include 66 MSEK 3 701 3 628 tariffs 3 772 Kampa: 2 520 2 459 +SEK 124 m 2 159 2 045 1 705 Kampa: -1 562 -1 595 -1 356 -1 491 -1 616 -SEK 52 m March June September December March 2018 2018 2018 2018 20
Slide 27: Cash Flow
CASH FLOW SEKm 1,000 250% 900 200% 800 150% 700 373 600 100% 500 10% 943 50% -4% 844 859 400 -9% 667 0% 300 570 536 200 -50% 100 84 -100% 0 -44 -27 -150% -100 -200 -200% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2017 2017 2017 2018 2018 2018 2018 2019 Operating cash flow Cash conversion
Slide 28: Net Debt Leverage and Net Debt Details
NET DEBT LEVERAGE AND NET DEBT DETAILS NET DEBT ▪ Leverage 2.72x at constant 3.5 3.3 3.34 3.34 currency and excluding Kampa 3,00 2,95 3.0 2.83 2.5 2.0 1.8 2,28 1.7 1.5 1.3 1.0 0.5 1,00 0.0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 SEKm Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1
Slide 29: Financial Targets
FINANCIAL TARGETS Mid/long term FY 2016 FY 2017 FY 2018 LTM 2019 Financial target Net Sales Growth1 7% 12% 5% -2% 5% EBIT Margin2 13.1% 13.2% 14.7% 14.4% 15% Net Debt / EBITDA 1.7x 3.3x 2.8x 2.95x 2.0x Dividend Policy 40% 40% 40% - 40% 1 Organic sales growth 2 EBIT before I.A.C.
Slide 30: Summary Q1 2019
SUMMARY Q1 2019 Organic sales growth of 1%, excluding RV OEM ▪ 7% growth outside RV OEM, in comparable currency ▪ Positive underlying market demand, but slow RV OEM in Americas and Pacific. ▪ Continued to strengthen the Aftermarket organization ▪ Increased pace in product innovation Good EBIT perfor
Slide 31: Outlook 2019
OUTLOOK 2019 Organic growth to be slightly positive ▪ Global life style trends ▪ New product launches ▪ Further expansion in businesses outside of RV ▪ Uncertain RV OEM in Americas and APAC EBIT margin close to 15 percent ▪ Grow Aftermarket, CPV and Marine ▪ Uncertainties about evolution of the RV O
Slide 32: Q&A
Q&A Mobile living made easy. “> DOMETIC
Slide 33: Appendix
APPENDIX Mobile living made easy. “> DOMETIC
Slide 34: Appendix A: Quarterly Summary Key Financials
APPENDIX A QUARTERLY SUMMARY KEY FINANCIALS SEK million Q1 2019 Q1 2018 FY 2018 Net sales 4,650 4,442 18,274 EBITDA 818 761 3,113 % of net sales 17.6% 17.1% 17.0% Operating profit (EBIT) 618 638 2,587 % of net sales 13.3% 14.4% 14.2% Operating profit (EBIT) before items affecting comparability 618 6
Slide 35: Appendix B: Group P&L
APPENDIX B GROUP P&L SEK million Q1 2019 Q1 2018 FY 2018 Net sales 4,650 4,442 18,274 Cost of goods sold -3,188 -3,064 -12,323 Gross profit 1,462 1,378 5,951 Sales expenses -563 -527 -2,259 Administrative expenses -221 -191 -855 Other operating income and expenses 15 30 61 Items affecting comparabil
Slide 36: Disclaimer
DISCLAIMER This document contains statements that constitute forward looking statements. These statements appear in a number of places in this document and include statements regarding the intent, belief or current expectations of the customer base, estimates regarding future growth in the different
Slide 37: Mobile living made easy. Dometic
Mobile living made easy. “> DOMETIC