Slide 1: FY 2023 Results
FY 2023 RESULTS February 29th 2024
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 re
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. FY 2023 performance within our expectations in a challenging trading environment • Inventory correction in the channel behind us • Resilient aftermarket demand 2. Gross and EBITDA margin expansion despite volume decline • Price increases to recover ongoing inflation and diligent exec
Slide 5: A structurally stronger business today
A structurally stronger business today EBITDA (€M) Cash EPS Sales (€M) and margin (%) (€/share) ROCE (%) +50% 500 +66% 24.0% +103% +32% 450 23.0% 400 350 22.0% 300 21.7% 21.0% 250 20.0% 200 150 19.7% 19.0% 100 18.0% 50 1,368 2,051 269 445 0.54 1.10 12% 16% 0 17.0% 2019 2023 2019 2023 2019 2023 2019
Slide 6: Good performance in a challenging trading environment
Good performance in a challenging trading environment Const. FX & • Sales within expectations, with lower FY financial highlights €M 2022 2023 Evol. 23/22 volumes and unfavorable FX more than Perimeter offsetting higher prices. Correction of Sales 2,389 2,051 (14.2%) (12.7%) inventory in the channel
Slide 7: Strengthening our global platform
Strengthening our global platform Customer focus • Improved intel exchange with customers to better manage our supply chain • Awarded “Vendor of the Year” by the third year in a row by US top distributors • Broad, high-quality, innovative product portfolio in constant development • Reinforcing our s
Slide 8: Simplification Program on track and delivering
Simplification Program on track and delivering Dec 2022 Dec 2023 Dec 2024 Dec 2025 Reducing structure overlaps 1/3 Fixed cost Global procurement savings Design to Value (DtV) 2/3 Variable cost SKUs rationalization Total gross savings from the Simplification Program €100M €31M savings >€30M additiona
Slide 9: Customer-centered innovation
Customer-centered innovation Product development journey o Customer surveys USER WORK and feedback 3X Launched “Fluidra Ventures”, o Trending analysis # of patents vs nearest R&D a Corporate Venture Capital competitor fund of €20m o Field research LAB & FIELD o Test pools TESTING IN-MARKET 90+ 51% P
Slide 10: Cutting-edge solutions to deliver the perfect pool experience
Cutting-edge solutions to deliver the perfect pool experience USER Pool owner/user Pool Pro Pool owner/user More sustainable propane Easy to install long-lasting, real- Saves water by reducing loss technology heat pump delivering time water quality monitoring through evaporation by DESCRIPTION energ
Slide 11: Higher prices partly offsetting lower volumes and FX
Higher prices partly offsetting lower volumes and FX YoY growth (%) Const. FX & Perimeter Sales by geography Q4 2023 H2 2023 FY 2023 Southern Europe (3.3%) (5.0%) (11.4%) Rest of Europe (9.0%) (10.1%) (25.9%) North America 9.9% (5.2%) (14.0%) Rest of the World 3.6% 1.8% 0.8% Total 4.2% (4.2%) (12.7%
Slide 12: Margins expansion despite top line decline
Margins expansion despite top line decline Evol. • Sales driven by lower volumes due to FY results €M 2022 % Sales 2023 % Sales channel inventory correction and softer new 23/22 build demand, coupled with unfavorable FX, Sales 2,389 100% 2,051 100% (14.2%) particularly in H2 Gross margin 1,225 51.3%
Slide 13: Strong cash flow generation
Strong cash flow generation • CF from operating activities Cash flow (abridged) and net debt FY €M 2022 2023 Evol. 23/22 improved YoY driven by reduction EBITDA 512 445 (67) of operating working capital Net interest expense paid (52) (68) (16) • CF from investing activities stable Corporate income t
Slide 14: Outlook 2024
Outlook 2024 Stable sales outlook, with channel inventory correction behind but uncertain macro environment: Guidance for FY 2024 • Some weakness in residential new pools and remodel Sales (€M) 2,000 - 2,150 • Aftermarket resilience (maintenance and repair) • Commercial pool growth Moderate price in
Slide 15: Summary
Summary 1. Good performance for the year, within our expectations, in a normalizing and challenging trading environment 2. Outstanding margin resilience 3. Excellent cash generation, reducing both operating net working capital and net debt levels. Solid balance sheet 4. Ready for 2024, encouraged to
Slide 16: Appendix
FLUIDRA Appendix
Slide 17: Disciplined capital allocation framework remains unchanged
Disciplined capital allocation framework remains unchanged Reinvest in the business • CapEx around 3% of annual sales, including R&D investment of to drive organic revenue around 1% sales growth and margin • Upgrade capabilities, improve efficiency and productivity improvement • Maintain disciplined
Slide 18: Solid balance sheet providing flexibility
Solid balance sheet providing flexibility Net debt (€M) Refinanced debt in January 2022 1,400 3.3x 3.5x • TLB of €1,100M (60% USD / 40% EUR), with Merger 1,200 with 2.6x Zodiac 2.8x 3.0x maturities up to 2029 and no covenants 2.6x 1,000 2.5x _ c.80% of exposure to interest rates evolution 800 1.8x 1
Slide 19: Sales by geography
Sales by geography Evol. Constant Const. FX & Q4 €M 2022 % Sales 2023 % Sales Const. FX 23/22 perimeter Perimeter Southern Europe 68 16% 66 15% (3.3%) (3.3%) (3.3%) (3.3%) Rest of Europe 41 10% 44 10% 6.2% 8.7% (11.1%) (9.0%) North America 204 48% 212 50% 3.8% 9.9% 3.8% 9.9% Rest of the World 109 26
Slide 20: Sales by business unit
Sales by business unit 2022 Evol. Const. FX & Q4 €M % Sales 2023 % Sales (restated) 23/22 Perimeter Pool & Wellness 415 98% 422 99% 1.8% 4.9% Residential 295 70% 302 71% 2.3% 5.3% Commercial 37 9% 41 10% 10.8% 15.0% Residential Pool Water Treatment 62 15% 58 14% (6.9%) (3.8%) Fluid Handling 20 5% 21
Slide 21: Reconciliation of PBT to EBITDA
Reconciliation of PBT to EBITDA FY €M 2022 2023 Evol. 23/22 Profit/loss before tax 225 158 (29.7%) Financial result 79 78 (1.7%) D&A 165 158 (4.6%) Restructuring, M&A and integration expenses 27 42 54.1% Stock based compensation 15 9 (36.5%) EBITDA 512 445 (13.0%) 21
Slide 22: Reconciliation of Profit attributable to the parent to Cash EPS
Reconciliation of Profit attributable to the parent to Cash EPS FY €M 2022 2023 Evol. 23/22 Profit/loss attributable to the parent 160 114 (28.8%) Restructuring, M&A and integration expenses 27 42 54.1% Stock based compensation 15 9 (36.5%) Financial result 79 78 (1.7%) Net interest expense paid (52
Slide 23: Net working capital
Net working capital December €M 2022 % LTM sales 2023 % LTM sales Evol. 23/22 Inventories 599 25.1% 427 20.8% (28.7%) Trade and other receivables 285 11.9% 273 13.3% (4.0%) Trade payables 314 13.2% 327 15.9% 3.9% Operating net working capital 569 23.8% 374 18.2% (34.4%) Dividends, earn-outs & others
Slide 24: Interim financial position (abridged)
Interim financial position (abridged) Assets 12/2022 12/2023 Liabilities 12/2022 12/2023 PPE & rights of use 360 368 Share capital 192 192 Goodwill 1,307 1,297 Share premium 1,149 1,149 Other intangible assets 946 877 Retained earnings and other reserves 337 220 Non-current financial assets 59 37 In
Slide 25: Alternative Performance Measures
Alternative Performance Measures Fluidra’s financial statements are prepared according to IFRS and other applicable regulation. The financial information presented in this document also includes Alternative Performance Measures (‘APMs’) prepared according to the group’s reporting model. For further
Slide 26: 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 26