Hayward Holdings, Inc. · NYSE:HAYW
Hayward — Q1 2022 Earnings Presentation
20 slides from Hayward's earnings presentation, Apr 28, 2022
Slide 1: First Quarter 2022 Earnings
First Quarter 2022 Earnings April 28, 2022 © 2022 Hayward Holdings, Inc. 1
Slide 2: First Quarter 2022 Earnings Call
First Quarter 2022 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: Q1 Financial Overview
Q1 Financial Overview Net Sales ($mm) Adjusted EBITDA ($mm) Margin (% of net sales) Record Sales and Adjusted EBITDA Demand for products across segments, increased output and strategic pricing drive higher sales growth $410 $126 30.8% +23% +18% YoY YoY Increased Product Adoption New product technolo
Slide 5: Hayward Drivers of Growth
Hayward 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 >45% roles 100% focus new dealer acquisition ✓ Acquire
Slide 6: Omni Controls – Winning Technology at Heart of SmartPad
Omni Controls – Winning Technology at Heart of SmartPad™ Controls Pumps #3 XE VS Pumps #2 Omni PL Omni Creates the UV/O3 Filters PULL Cleaners Salt Cl #5 AquaRite S3 Heaters #4 Small Footprint Omni – at the Safety Universal Gas Heat Center of the Connected #1 New ColorLogic In-floor Lights Backyard
Slide 7: 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 8: US Pool Market SmartPad New Construction & Remodel Opportunity
US Pool Market SmartPad™ New Construction & Remodel Opportunity New Construction/Aftermarket Remodel Lifetime Value Technology, feature-rich pools increase TAM in Year 1 at Construction, then create an Aftermarket opportunity over ~30-year life of the Pool Non-SmartPad Pool SmartPad Pool OEM equipme
Slide 9: 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 desi
Slide 10: First Quarter 2022 Highlights
First Quarter 2022 Highlights Net Sales of $410 million +23% YoY ✓ Strategic pricing to combat continued inflation Net Sales growth ✓ Higher sales driven by new product adoption & SmartPad conversion ✓ Accelerated production capacity despite constrained supply chains Gross Profit of $190 million, 46
Slide 11: North America Q1 Segment Overview
North America Q1 Segment Overview $346 million ✓ Higher demand for environmentally sustainable, automated products Net Sales +27.6% YoY ✓ Improving mix and market adoption of recently launched platforms 47.1% ✓ Pricing actions combatting inflation pressure Gross Profit Margin -252 bps YoY ✓ Elevated
Slide 12: Europe & ROW Q1 Segment Overview
Europe & ROW Q1 Segment Overview ✓ Growth on top of stellar prior year and rising regional uncertainty $64 million Net Sales +2.0% YoY ✓ Foreign currency effects negatively impacting sales ✓ Favorable customer and product mix and price realization 42.6% Gross Profit Margin +246 bps YoY ✓ Partially o
Slide 13: Our ESG Strategic Pillars
Our ESG Strategic Pillars PRODUCTS PLANET PEOPLE PRINCIPLES ▪ Environmentally ▪ Environmental ▪ Diversity, Equity, & ▪ Business Ethics Sustainable Products Management (Green Inclusion House Gas, Energy, ▪ Board Diversity & ▪ Product Safety Water, Waste) ▪ Employee Health, Independence Wellbeing, & ▪
Slide 14: Sustainability of Growth
Sustainability of Growth Macroeconomics 2021 Aftermarket Growth to ~80% Sales ✓ Strong long-term secular trends continue ✓ Average age of Pools record • Deurbanization, Migration to sunbelt, Millennial buyers, WFH >23 years old ✓ Key economic indicators remain positive ✓ Low technology Pool stock a
Slide 15: 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 consumer demand trends and expected conversion of 2022 order file ✓ Price realization to
Slide 16: 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 17: Appendix
Appendix Non-GAAP Reconciliations © 2022 Hayward Holdings, Inc. 17
Slide 18: Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliation © 2022 Hayward Holdings, Inc. 18
Slide 19: Adjusted Segment Income Reconciliation
Adjusted Segment Income Reconciliation © 2022 Hayward Holdings, Inc. 19
Slide 20: Last Twelve Months Adjusted EBITDA Reconciliation
Last Twelve Months Adjusted EBITDA Reconciliation © 2022 Hayward Holdings, Inc. 20