Slide 1: Q2 2023 Results
Q2 2023 RESULTS July 28th 2023
Slide 2: Disclaimer
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 in accordance with international financial
Slide 3: Today's speakers
Today’s speakers Eloi Planes Bruce Brooks Xavier Tintoré Executive Chairman CEO CFTO 3
Slide 4: Key messages
Key messages 1. Delivering within the range of expectations for the year, in a normalizing and challenging market Lower new build demand and unfavorable weather driving a shorter pool season Correction of inventory in the channel progressing well – expected to mostly clear by end of the pool sea
Slide 5: Delivering within our range of expectations
Delivering within our range of expectations Const. FX & • Sales YTD within our range of YTD financial highlights €M 2022 2023 Evol. 23/22 expectations, with lower volumes more Perimeter than offsetting good price read-through Sales 1,445 1,186 (18.0%) (18.0%) • EBITDA and EBITA reflect higher gross
Slide 6: Simplification Program to enhance margins on track
Simplification Program to enhance margins on track Simplification tracker Initiatives implemented / c.350 being implemented Annual run rate of initiatives c.57 being implemented (€M) % of full program’s target 57% Gross margin improvement Fixed cost savings 2023 impact of initiatives c.29 Redesignin
Slide 7: World-class Commercial Pool partner
World-class Commercial Pool partner +9% Competition pools Fountains 2022 European Aquatics Championships: two Pont de París (Andorra): new fountain on the well- temporary pools in Rome’s Foro Italico known bridge, for >€1M, featuring symmetrical effects 2023 Pan American Games: c.€3M project,
Slide 8: Volumes reflect channel de-stocking, softer demand and a shorter season
Volumes reflect channel de-stocking, softer demand and a shorter season Const. FX & YTD Sales €M 2023 Perimeter Southern Europe 386 (14.1%) Rest of Europe 158 (33.3%) North America 480 (20.1%) Rest of the World 162 (0.3%) Total 1,186 (18.0%) (1%) 1% 5% (23%) (18%) Good price read-though partly offse
Slide 9: Top line decline affecting EBITDA
Top line decline affecting EBITDA YTD results €M 2022 % Sales 2023 % Sales Evol. • Sales driven by lower volumes in 23/22 residential pool, on the back of channel inventory correction, lower new build Sales 1,445 100% 1,186 100% (18.0%) demand and shorter season (weather). H1 Gross margin 739 51.1%
Slide 10: Good cash flow generation
Good cash flow generation Cash flow and net debt YTD €M 2022 2023 € Evol. 23/22 • Operating cash flow improved year- Reported EBITDA 350 260 (90) on-year on the back of lower Net interest expense paid (23) (35) (12) investment in working capital, which Corporate income tax paid (47) (22) 25 more tha
Slide 11: Narrowing 2023 Guidance to lower half of initial range
Narrowing 2023 Guidance to lower half of initial range 1. Unfavorable weather shortening pool season in H1 and generally weaker macro going into H2 Narrowing guidance for FY 2023: 2. Decline in new build demand for the year at the lower end of our expectations Sales (€bn) 2.0 - 2.1 3. Aftermarket mo
Slide 12: Summary
Summary 1. H1 delivery within the range of expectations for the year in a normalizing market 2. Channel de-stocking progressing well, expected to finish by the end of the pool season 3. Simplification Program on track to bring 2023 and future margin enhancement 4. Focused on cash generation and norm
Slide 13: Appendix
Appendix 13
Slide 14: (I) Sales by geography
(I) Sales by geography Evol. Constant Const. FX & Q2 €M 2022 % Sales 2023 % Sales Const. FX 23/22 perimeter Perimeter Southern Europe 259 33% 221 35% (14.8%) (14.8%) (14.6%) (14.6%) Rest of Europe 119 15% 94 15% (21.0%) (20.3%) (28.2%) (27.5%) North America 313 40% 242 38% (22.8%) (20.8%) (22.8%) (2
Slide 15: (II) Sales by business unit
(II) Sales by business unit 2022 % Evol. Const. FX & Q2 €M % Sales 2023 (restated) Sales 23/22 Perimeter Pool & Wellness 764 98% 620 98% (18.8%) (18.0%) Residential 571 73% 446 71% (21.8%) (21.0%) Commercial 54 7% 56 9% 4.8% 7.9% Residential Pool Water Treatment 104 13% 90 14% (13.8%) (14.1%) Fluid
Slide 16: (III) Reported profit & loss account YTD
(III) Reported profit & loss account YTD €M 2022 % Sales 2023 % Sales Evol. 23/22 Sales 1,445 100% 1,186 100% (18.0%) Gross margin 737 51.0% 622 52.5% (15.6%) Opex before dep. & amort. 387 26.8% 362 30.5% (6.5%) Reported EBITDA 350 24.2% 260 21.9% (25.6%) D&A 75 5.2% 78 6.6% 3.3% Net financial resul
Slide 17: (IV) Reconciliation of PBT to EBITDA YTD
(IV) Reconciliation of PBT to EBITDA YTD €M 2022 2023 Evol. 23/22 PBT 229 147 (36.0%) Net financial result 45 36 (21.2%) D&A 75 78 3.3% Reported EBITDA 350 260 (25.6%) Stock based compensation 6 6 (7.5%) Integration & Other related non-recurring expense 5 22 352.1% EBITDA 361 288 (20.2%) 17
Slide 18: (V) Reconciliation of reported to cash net profit and cash EPS YTD
(V) Reconciliation of reported to cash net profit and cash EPS YTD €M 2022 2023 Evol. 23/22 Reported net profit from continued operations 166 104 (37.5%) Integration related & other non-recurring expense 5 22 352.1% Stock based compensation 6 6 (7.5%) P&L financial result 45 36 (21.2%) Cash interest
Slide 19: (VI) Net working capital
(VI) Net working capital % LTM % LTM June €M 2022 2023 Evol. 23/22 sales sales Inventory 685 28.0% 547 25.7% (20.1%) Accounts receivable 511 20.9% 468 22.0% (8.4%) Accounts payable 495 20.2% 365 17.1% (26.2%) Operating net working capital 701 28.7% 651 30.6% (7.2%) Dividends, earn-outs & others 166
Slide 20: (VII) Reported balance sheet
(VII) Reported balance sheet Assets 06/2022 06/2023 Liabilities 06/2022 06/2023 PPE & rights of use 346 355 Share capital 196 192 Goodwill 1,320 1,297 Share premium 1,149 1,149 Other intangible assets 996 901 Retained earnings 432 198 Non-current financial assets 27 60 Interim dividends - - Other no
Slide 21: Thanks for your attention
Thanks for your attention +34 93 724 39 00 Investor_relations@fluidra.com Avda. Alcalde Barnils 69 - 08174 Sant Cugat (Barcelona) www.fluidra.com