Arbonia Ag · SIX:ARBN
Arbonia — H1 2020 Earnings Presentation
27 slides from Arbonia's earnings presentation, Aug 18, 2020
Slide 1: Arbonia – H1 2020 Results – 18th August 2020
Arbonia – H1 2020 Results – 18th August 2020 Alexander von Witzleben, CEO Daniel Wüest, CFO
Slide 2: Agenda
Agenda 1. Key metrics and Arbonia's position 2. Group results H1 2020 3. Key drivers post COVID-19 – the new "normal" 4. Guidance & Outlook Questions | Arbonia H1 2020 results | 18th August 2020 2
Slide 3: Overview H1 2020 – Key metrics (CHF M)
Overview H1 2020 Key metrics (CHF M) CF from Net revenues1 EBITDA2 Net debt3 Capex op. activities -6.3% 7.6% 8.6% 1.33 1.26 688 EBITDA Margin Leverage Ratio 645 -11.7% 225 -22.7% +19.4 M +6.1% 199 52 56 51 40 21 2 Revenues decline Adjusted EBITDA and Reduction of net debt Reduction/postpone- Substan
Slide 4: Arbonia's resilience to the COVID-19 crisis and its position for the new "normal"
Arbonia's resilience to the COVID-19 crisis and its position for the new "normal" Production sites Capex in CHF M and in % of revenues 12 9.8 10 7.6 8.0 6.2 8 6 2.3 135 50 4 105 113 H1 62 2 22 40 0 2015 2016 2017 2018 2019 2020 Production footprint in best cost countries Past high capex leads to ope
Slide 5: Key markets moderately impacted 2020 – positive outlook for 2021
Arbonia's markets in a COVID-19 context Key markets moderately impacted 2020 – positive outlook for 2021 Construction Construction Markets by share of Group revenues forecast 2020 forecast 2021 CH -2.4% 1.6% DE -2.5% -1.7% PL 0.1% 1.4% RU NL PL CZ -8.6% 0.8% BE BE DE CZ SK SK -11.1% 3.5% AT FR CH BE
Slide 6: Net revenues Arbonia Group − H1 2019 vs. H1 2020
Net revenues Arbonia Group − H1 2019 vs. H1 2020 Strong performance in DE and CH – negative impact in Southern Europe Arbonia Group1 H1 2019 vs. H1 20201 +3.5% General • FX adjusted growth only slightly down (-1.7%) +1.3% compared to last year. Positive contribution of core markets Germany and Switz
Slide 7: A closer look at COVID-19 lockdown
A closer look at COVID-19 lockdown Arbonia Group Comparison to previous year Taken measures General Revenues development 2019 vs. 2020 in % • Smart working / home office • Reduction of overtime 5.6% • Reduction of temporary staff -2.0% • Selective use of state subsidies -17.3% -18.0% • Review and po
Slide 8: Agenda
Agenda 1. Key metrics and Arbonia's position 2. Group results H1 2020 3. Key drivers post COVID-19 – the new "normal" 4. Guidance & Outlook Questions | Arbonia H1 2020 results | 18th August 2020 8
Slide 9: Income Statement – Without one-time effects
Income Statement Without one-time effects In CHF M H1 2020 in % H1 2019 in % I Cost base Net revenues 644.9 100.0 688.4 100.0 • Reduced cost base in I absolute and relative Cost of material and goods -289.2 -44.8 -322.9 -46.9 terms due to cost I measures, FX, Personnel expenses -230.0 -35.7 -238.5 -
Slide 10: Income Statement – With one-time effects (as reported)
Income Statement With one-time effects (as reported) In CHF M H1 2020 in % H1 2019 in % I Personnel exp. Net revenues 644.9 100.0 688.4 100.0 • Including c. CHF 1.1 M provision for leadership Cost of material and goods -289.2 -44.8 -322.9 -46.9 changes in the Group I Management Personnel expenses -2
Slide 11: Performance by division (CHF M) – reflects focus on costs
Overview H1 2020 Performance by division (CHF M1) – reflects focus on costs Sanitary Group HVAC Equipment Windows Doors -6.3% 688 645 -10.4% -2.6% -4.3% Net -4.5% 275 246 159 152 183 178 revenues 72 68 +6.1% -13.3% +4.6% 52.3 55.5 +138.0% -5.0% 24.6 21.3 22.4 23.4 EBITDA2 6.5 6.2 4.3 10.2 12.2% 13.2
Slide 12: Net revenues by division and region
Net revenues by division and region Increase in share of Windows and Doors Divisions as well as Germany and Switzerland as regions Net revenues by division Net revenues by region 10% 5% (12%) 28% 25% (6%) (27%) 6% (24%) 38% (6%) (40%) 11% (11%) 24% 10% (23%) (10%) 43% (41%) HVAC Switzerland Sanitary
Slide 13: Organic growth
Organic growth Top-line negatively impacted by COVID-19 and FX translation effects – FX adjusted growth at -1.7% mainly supported by positive price effects across all divisions Net revenues as reported Δ FX Organic H1 2020 H1 2019 in CHF M H1 Total effects growth1 Arbonia 644.9 688.4 -6.3% -4.6% -1.
Slide 14: Balance sheet
Balance sheet In CHF M 2′000 1′594 1′535 I Assets 1′500 30.3% 30.3% • Slightly lower absolute asset base mainly 1′000 due to FX translation effect and amortisation of PPA 500 69.7% 69.7% • High liquidity (cash) of CHF 65 M 0 30.06.2019 30.06.2020 Current assets Non-current assets 2′000 1′594 II Liab
Slide 15: Net debt as of June 2020
Net debt as of June 2020 In CHF M 250 3x I Net debt 225 • Decrease of net debt by CHF 23 M to 199 CHF 148 M compared to H1 2019 200 54 181 • Usual seasonal increase of net debt by 51 CHF 20 M compared to year end 2019 2x 150 53 • Refinancing of existing CHF 350 M credit facility still planned for 20
Slide 16: Cash flow statement
Cash flow statement In CHF M I Cash flow from operating activities • Increase of cash flow from operating activities reflects better operational performance and … +19.4 M • …is additionally supported by reduction of 150 NWC 111.8 100 50 21.0 1.6 0 H1 2019 FY 2019 H1 2020 II Free cash flow1 • Improve
Slide 17: Agenda
Agenda 1. Key metrics and Arbonia's position 2. Group results H1 2020 3. Key drivers post COVID-19 – the new "normal" 4. Guidance & Outlook Questions | Arbonia H1 2020 results | 18th August 2020 17
Slide 18: Market environment and key drivers after COVID-19… still intact
Market environment and key drivers after COVID-19… … still intact Energy efficiency / Carbon neutrality CO2 efficiency and related subsidies support energy efficient products in new construction and renovation Urbanisation Market environment Urbanisation and aged Development of construction market p
Slide 19: Construction – Market segments and outlook
Construction – Market segments and outlook Arbonia generates most of its business in residential buildings 1 Segment Sub-Segment Renovation New construction Investments in renovation and Completion of started modernisation due to higher construction sites. Future Single-family focus on comfort withi
Slide 20: Key drivers – Post COVID-19 perspective
Key drivers Post COVID-19 perspective Post COVID-19 perspective • Stimulus packages will be combined Energy efficiency / with CO2 saving initiatives Carbon neutrality • Environmental awareness is gaining CO2 efficiency and related subsidies importance in society support energy efficient products in
Slide 21: Key drivers – Inside Arbonia
Key drivers Inside Arbonia How Arbonia's products respond to the key drivers Energy efficiency / • HVAC system concept Carbon neutrality • Minergie (CH) & passive house (EU) CO2 efficiency and related subsidies • Triple glazed window systems support energy efficient products in new construction and
Slide 22: Highlights
Highlights The patented "Crystall" electronic filters (or active electrostatic plate filters) are the easy-to-implement response for new and existing devices to the risk associated with the spread of both microbial pathogens (e.g. viruses) and chemicals in the environment HVAC system concept "Crysta
Slide 23: Agenda
Agenda 1. Key metrics and Arbonia's position 2. Group results H1 2020 3. Key drivers post COVID-19 – the new "normal" 4. Guidance & Outlook Questions | Arbonia H1 2020 results | 18th August 2020 23
Slide 24: New guidance 2020
New guidance 20201 Focus on profitability and cash flow generation New guidance 2020 (post COVID-19) Revenues Slightly lower to FY19 due to COVID-19 and FX EBITDA margin2 At least at previous year level (9.5%) Higher free cash flow3 than FY19 Dividend 2020 Combined dividend for 2019 and 2020 1 Assum
Slide 25: Agenda
Agenda 1. Key metrics and Arbonia's position 2. Group results H1 2020 3. Key drivers post COVID-19 – the new "normal" 4. Guidance & Outlook Questions | Arbonia H1 2020 results | 18th August 2020 25
Slide 26: Disclaimer
Disclaimer Arbonia AG is making great efforts to include accurate and up-to-date information in this document, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim any liability whatsoe
Slide 27: Arbonia Investor Relations
Arbonia Investor Relations ir@arbonia.com +41 71 447 45 54 +41 79 457 01 38