Slide 1: Nilfisk Q3 Interim Report 2019
Nilfisk Q3 Interim Report 2019 Webcast presentation
Slide 2: Agenda
Agenda 1 2 3 4 5 Highlights Business Financials Outlook for Q&A unit update 2019 2 Nilfisk Q3 Interim report 2019
Slide 3: Q3 2019: Negatively impacted by weakening conditions in EMEA
Q3 2019: Negatively impacted by weakening conditions in EMEA Financial highlights • Weakening of economic conditions in EMEA and slower than expected realization of results in the US led to an adjustment of the full-year guidance on October 16, 2019 • Organic growth of -4.7% in the branded professio
Slide 4: Execution of the Nilfisk Next strategy under changed market conditions
Execution of the Nilfisk Next strategy under changed market conditions Simplifications to lower investments and costs • Continued roll-out of global blueprint including support systems and process alignment • Global Service function established • Global Operations taking over local logistics and war
Slide 5: Agenda
Agenda 1 2 3 4 5 Highlights Business Financials Outlook for Q&A unit update 2019 5 Nilfisk Q3 Interim Report 2019
Slide 6: Branded professional business
Branded professional business EMEA Americas APAC • Weakening economic conditions impacting • Negative organic growth in US business driven • Negative organic growth driven mainly by Central region and Germany in particular by the HPW business due to headwind in Australia, Singapore and Malaysia • We
Slide 7: Other business units
Other business units Consumer Private label • Competitive market conditions. Organic • Organic growth negatively affected by growth in line with expectations significantly more cautious behavior from customers • Gross margin positively impacted by hedging gain in Q3 up by 3.8 • Gross margin up by 2.
Slide 8: Agenda
Agenda 1 2 3 4 5 Highlights Business Financials Outlook for Q&A unit update 2019 8 Nilfisk Q3 Interim Report 2019
Slide 9: Revenue and organic growth development
Revenue and organic growth development Revenue, mEUR Comments -10.3% • Total reported revenue down by 10.3% vs. Q3 2018 +1.8% -13.5 4.0 – Divestment impact of -5.3% -16.6 -5.3% – Positive impact from FX of 1.8% due to USD 253.6 227.5 -6.8% – Organic growth of -6.8% Q3 2018 Divestments FX Organic Gro
Slide 10: Development of EBITDA
Development of EBITDA Before special items and IFRS 16 Contribution to EBITDA*, mEUR Comments -10.5 26.8 10.7 • Lower revenue in Q3 significantly impacting EBITDA before special items and IFRS 1.4 1.2 16.3 • Slight improvement in gross margin not enough to compensate for higher cost ratio Q3 2018 Re
Slide 11: Gross margin development
Gross margin development Gross margin Comments • Gross margin improvement of 0.6 percentage points driven by: – Simplification initiatives: divestments, production +0.6 consolidation and pruning of product platforms 41.5% – Procurement benefits – Pricing 40.9% Partly off-set by: – Lower capacity uti
Slide 12: Overhead cost development
Overhead cost development Comments • Adjusted Q3 2018 cost base of 80.4 mEUR, net of: 2.3 86.7 – Positive effect from divestments of 4.5 mEUR 85.6 – Phantom share adjustment of 0.7 mEUR 0.7 1.5 • Negative impact from underlying cost inflation and FX 1.4 impact (mainly USD) 4.5 1.0 0.8 2.7 • Savings
Slide 13: Balance sheet and cash flow
Balance sheet and cash flow EUR million Q3 2019 Q3 2018 Change Comments Inventories 182.5 196.4 -13.9 • NWC reduced by 17.5 mEUR mainly driven by Receivables 209.5 217.3 -7.8 divestments and consolidation of production footprint Payables 219.0 216.4 2.6 • LTM NWC ratio up by 1.9 percentage points Re
Slide 14: Agenda
Agenda 1 2 3 4 5 Highlights Business Financials Outlook for Q&A unit update 2019 14 Nilfisk Q3 Interim Report 2019
Slide 15: Outlook for 2019
Outlook for 2019 Organic growth EBITDA margin Approx. -3.0% Approx. 9.5% In the Nilfisk branded professional business EBITDA margin before special items Excl. the expected positive impact from IFRS 16 of 2.9 percentage points -10% to -15% Organic growth in the consumer business -10% to -15% Organic
Slide 16: Agenda
Agenda 1 2 3 4 5 Highlights Business Financials Outlook for Q&A unit update 2019 16 Nilfisk Q3 Interim Report 2019
Slide 17: Q&A
Q&A 17 Nilfisk Q3 Interim Report 2019
Slide 18: Forward-looking statements
Forward-looking statements This presentation and related comments contain forward-looking statements. Such statements are subject to many uncertainties and risks, as various factors, of which several are beyond Nilfisk Holding’s control, may cause that the actual development and results differ mater