Carel Industries Spa · MIL:CRL
Carel Industries Spa — H1 2022 Earnings Presentation
38 slides from Carel Industries Spa's earnings presentation, Aug 4, 2022
Slide 1: 2022 – H1 Results
CAREL INDUSTRIES S.p.A. 2022 – H1 Results 4th August 2022 This document and all of its contents are property of CAREL. All unauthorised use, reproduction or distribution of this document or the information contained in it, by anyone other than CAREL, is severely forbidden.
Slide 2: H1 2022 – Highlights
H1 2022 – Highlights Q2 2022 is the sixth consecutive quarter in which CAREL reported a double digit organic revenues growth. These very solid results, characterized by a demand that remains strong both in HVAC and in Refrigeretion were achieved in spite of a persistent challenging scenario in the s
Slide 3: M&A – 2022 – Sauber
M&A – 2022 – Sauber • Key Data: Equity value (70%) = 3.6m€ 2021 Revenues = 7.6m€ EBITDA = 0.8m€ Employees = ~55 • Industrial fitting: Bolt-on acquisition Strong know-how in on-field services and energy savings • Company profile: Sauber is based in Porto Mantovano (Mantua) and is active
Slide 4: M&A – 2022 – Arion
M&A – 2022 – Arion • Key Data: Equity value (30%) = 1.2m€ 2021 Revenues = 2.7m€ 2020 EBITDA = 0.5m€ Employees = 6 • Industrial fitting: Bolt-on acquisition Enabler of digital services Focus on those applications presenting higher growth trends Secure supply-chain in critical • Compan
Slide 5: H1 2022 – Results
H1 2022 – Results KPIs H1 2022 Revenues bridge m€ H1 2021 H1 2022 Δ% (1) 261.3 Revenue 202.6 261.3 29.0% 6.1 36.8 15.8 Revenue FX Adj. 202.6 255.3 26.0% 202.6 Revenue (no M&A) 202.6 245.5 21.2% EBITDA 44.1 56.1(2) 27.2% EBITDA /Revenue 21.8% 21.5% Net Profit 26.8 34.8 29.7% m€ Capex 6.9 8.9 29.0% (1
Slide 6: H1 2022 – Revenue breakdowns
H1 2022 – Revenue breakdowns Breakdown by region Breakdown by sector Other 1% South America 2% North America 12% HVAC 65% EMEA 72% 261.3 261.3 APAC Refrig. M€ 14% M€ 34% m€ m€ m€ m€ Area H12021 H12022 Δ% Δ% fx Sector H1 2021 H1 2022 Δ% Δ% fx EMEA 147.0 187.1 27.3% 27.3% HVAC 129.7 171.4 32.1% 28.9%
Slide 7: From EBITDA to Net Profit
From EBITDA to Net Profit K€ H1 '21 H1 '22 Δ% • Higher D&A mainly due to the purchase EBITDA 44,123 56,106 27.2% price allocation amortisation D&A -9,669 -11,168 EBIT 34,454 44,938 30.4% • Financial charges slightly higher compared to H1 ’21 impacted mainly by the financial Financial (charges)/incom
Slide 8: H1 2022 – NFP Bridge
H1 2022 – NFP Bridge 16.6 74.8 (1.4) 57.8 8.9 27.6€ from 37.4 IFRS 16 27.6m€ from IFRS 16 (35.8) 2.5 30.2 (11.2) 47.2 m€ NFP Net Profit D&A Leasing/ NWC CAPEX Dividends M&A/ Others NFP FY 2021 rent fees H1 2022 • Robust cash generation was offset by a strategic increase in NWC along with the payment
Slide 9: Closing Remarks
Closing Remarks • Solid growth across the board and in all the regions with a demand level that remains high and healthy. Some applications continue to stand out such as heat pumps, data centers, Indoor Air Quality in HVAC and Q2/H1 2022 Food Retail in Refrigeration. Results • The strong effort that
Slide 10: Annexes
Annexes
Slide 11: Shareholding structure (>5% voting rights)
Shareholding structure (>5% voting rights) CAREL Industries S.p.A. CAREL Industries S.p.A. Number of shares Voting rights Other Luigi Rossi Luciani Other Shareholders; Luigi Rossi Luciani Shareholders; S.a.p.a; 36.17% S.a.p.a; 45.05% 38.90% 24.23% 7 Industries B.V.; 5.81% 7 Industries B.V.; 4.93% Lu
Slide 12: Income statement and Balance Sheet
Income statement and Balance Sheet Income statement Balance sheet K€ H1 2022 H1 2021 Delta % K€ H1 2022 FY 2021 Delta % Revenues 261,346 202,601 29.0% Fixed Capital 237,814 230,338 3.2% Other revenues 2,023 2,761 (26.7%) Working Capital 93,044 55,591 67.4% Operating costs 207,262 161,239 28.5% Emplo
Slide 13: Company Profile
Company Profile
Slide 14: Leading provider of advanced control solutions for HVAC/R
Leading provider of advanced control solutions for HVAC/R Key financials – 2021A • HVAC: Industrial, Residential, Growing key Commercial markets • Refrigeration: Food Retail and Revenue EBITDA EBITDA margin Net income Food Service €420m €85m ~20.3% €49m Leadership in • Control solutions premium +13%
Slide 15: We operate in attractive niches across a wide range of end-markets
We operate in attractive niches across a wide range of end-markets… HVAC Refrigeration Industrial Residential Commercial Food Retail Food Service Data Centers Residential Shopping Centers Convenience Stores Restaurant Chains Industry and Process Office Space Hypermarkets Refrigerated Merchandisers P
Slide 16: One-stop-shop portfolio of components and platforms
…through a one-stop-shop portfolio of components and platforms Adiabatic humidifiers and Programmable controls HMI and unit terminals Parametric controls Isothermal humidifiers evaporative coolers Electronic controls easily programmable and customizable User interfaces for units and systems Entry le
Slide 17: Long track record of profitable growth
Long track record of profitable growth Revenue (€m) 420 327 332 280 231 255 203 1990s 2000A 2001A 2002A 2003A 2004A 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A Adj. EBITDA (€m) 85 63 65 55 51 38 43 1990s 2000A 2001A 2002A 2003A 2004A 2005A 20
Slide 18: Well-articulated strategies to continue the growth track record
Well-articulated strategies to continue the growth track record • Consolidation of HVAC market leadership • Growth in Refrigeration driven by technology leadership • Upselling and cross-selling HVAC Refrigeration • Global penetration to consolidate to represent the its market leadership engine of gr
Slide 19: Leading provider of advanced energy efficient control solutions
Leading provider of advanced energy efficient control solutions 1 High-tech leader in attractive niches of the HVAC/R industry 2 Attractive above market growth supported by secular trends Positioning and technological innovation capability hard to 3 replicate Highly efficient global operations servi
Slide 20: High-tech leader in attractive niches of the HVAC/R industry
1 High-tech leader in attractive niches of the HVAC/R industry Focus on attractive niches… …resulting in leadership positioning …CONSOLIDATED …INNOVATION-ORIENTED High value applications IN HVAC PREMIUM NICHES IN REFRIGERATION Deep knowledge of final applications is 33%1 #1 SIGNIFICANT ROOM FOR key
Slide 21: Attractive market growth supported by secular trends
2 Attractive market growth supported by secular trends Secular trends… …supporting attractive market growth Reference HVAC and refrigeration Market GROWING • Improvement in LIVING STANDARDS POPULATION increasing demand for HVAC/R • Focus on WASTE REDUCTION in CHANGE IN food sector CONSUMER • Increas
Slide 22: Growth is driven by market trends and focused strategic actions
2 Growth is driven by market trends and focused strategic actions… Growth drivers SECULAR TRENDS Market Increasing the market of the applications addressed by CAREL trends NICHES EXPANSION Secular Leverage of deep knowledge of final trends applications to expand to adjacent niches Expansion to Incre
Slide 23: …and favoured by up-selling and cross-selling
2 …and favoured by up-selling and cross-selling FROM PRODUCT PLATFORMS TO INTEGRATED ELECTRONIC SOLUTIONS… PRODUCT PLATFORMS SYSTEMS From a COMBINATION OF PRODUCTS FROM DIFFERENT PLATFORMS To an ECOSYSTEM TO QUICKLY ADOPT NEW TECHNOLOGIES …IN THE HVAC AND REFRIGERATION MARKETS HVAC Refrigeration Exa
Slide 24: Positioning and innovation capability hard to replicate
3 Positioning and innovation capability hard to replicate ~6% OF REVENUE1 ~12% OF TOTAL WORKFORCE Invested annually in R&D dedicated to R&D 5 R&D CENTRES PROPRIETARY SOFTWARE COMBINING 5 DOMAINS Vast library of proprietary software modules UNIQUE 01100 • Hardware & Firmware developed over the past 1
Slide 25: Leadership position in HVAC OEM premium niches
3 Leadership position in HVAC OEM premium niches… Leadership positioning in premium …with no perfect comparable niches… Chiller European Market Share1 OEM Large 33% proprietary diversified EM / Low cost 26% solutions competitors competitors 14% 8% 6% Vertical niche approach Innovation p
Slide 26: …and leading in innovation in the refrigeration market
3 …and leading in innovation in the refrigeration market Leveraging on HVAC experience… …CAREL is a leader in innovation Large diversified EM / Low cost competitors competitors 2014 HEOS SISTEMA Waterloop system with DC tech for refrigeration Vertical niche approach Innovation pace & 2015
Slide 27: Highly efficient global operations serving locally diversified customers
4 Highly efficient global operations serving locally… NORTH AMERICA WESTERN EUROPE NORTH APAC GLOBAL PRODUCTION FOOTPRINT 1 7 Plant Plants 136 989 Employees Employees DIRECT AND HIGHLY SKILLED SALES NETWORK 65 190 Sales force Sales force 1 81 x3 Plant Sales force 1 3 BEST POSITIONED TO CAPTURE R&D C
Slide 28: …diversified blue-chip customers
4 …diversified blue-chip customers HVAC REFRIGERATION GLOBAL BLUE-CHIP APAC 15% EMEA >10,000 <4% South America 72% Customers 2% BROAD & HIGHLY from first customer1 DIVERSIFIED In c. 100 <20% North America 11 countries worldwide from top-15 customers2 2020A revenue LONG-TERM ~80% ~70% BUSINESS of Top
Slide 29: Track record of profitable organic growth
5 Track record of profitable organic growth Double-digit growth Strong profitability High conversion to net income Cash generative business Revenue1 (€m) EBITDA1 (€m) Net Income1 (€m) Operating cash2 (€m) 420.4 52.9 85.3 49.1 50.4 45.0 39.8 327.4 331.6 65.2 63.1 35.0 35.1 280.2 31.2 30.7 255.4 50.9
Slide 30: Global expansion, innovation and services
6 A Global expansion, innovation and services Pursuing additional Consolidation of opportunities leadership positions improving services in HVAC offer with IoT and Growth in advanced Refrigeration monitoring solutions Geographical Cross-selling and up- expansion through selling exploiting the introd
Slide 31: Pursuing external growth through disciplined bolt-on M&A
6 Pursuing external growth through disciplined bolt-on C M&A CAREL has performed detailed analyses and scouting of potential targets, thus promoting an opportunistic approach with a focus on 3 MAIN EXPANSION AREAS: A B C COMPLEMENTING GEOGRAPHICAL Potential selected CORE-BUSINESS EXPANSION acquisiti
Slide 32: M&A
M&A
Slide 33: M&A – 2021 – CFM
M&A – 2021 – CFM • Key Data: Enterprise value (51%) = 23.1m€ 2020 Revenues = 14.5m€ EBITDA = 5.0m€ Employees = ~34 • Industrial fitting: Bolt-on acquisition Footprint expansion outside Western Europe Strong know-how in digital and on- field services • Company profile: a long-standing d
Slide 34: M&A – 2021 – Enginia
M&A – 2021 – Enginia • Key Data: Enterprise value* = 12.4m€ 2020 Revenues = 12.3m€ 2020 EBITDA = 1.5m€ Employees = 46 • Industrial fitting: Bolt-on acquisition Completing CAREL’s product range for AHU Significant synergies with CAREL/Recuperator • Company profile: Enginia has been oper
Slide 35: M&A – 2018 – Recuperator
M&A – 2018 – Recuperator • Key Data: Cash-out for equity = 25.7m€ Company positive net-cash = 6.9m€ 2017 Revenues = 16.4m€ EBITDA = 1.7m€ Employees = ~60 • Industrial fitting: Small-size Company Complementary products Carel’s commercial strength Cross-selling • Financial fitting:
Slide 36: M&A – 2018 – HygroMatik
M&A – 2018 – HygroMatik • Key Data: Cash-out for equity = 56.1m€ Enterprise Value = 59.0m€ 2017 Revenues = 15.0m€ EBITDA = 4.7m€ Employees = ~60 • Industrial fitting: Small-size Company Interesting geographic positioning Strong in after-sale services Cross-selling • Financial fitti
Slide 37: Disclaimer
Disclaimer This document has been prepared by CAREL Industries S.p.A for use during meetings with investors and financial analysts and is solely for information purposes. The information set out here in has not been verified by an independent audit company. Neither the Company nor any of its subsidi
Slide 38: This document and all of its contents are property of CAREL. All unauthorised use,
38 This document and all of its contents are property of CAREL. All unauthorised use, reproduction or distribution of this document or the information contained in it, by anyone other than CAREL, is severely forbidden.