Fagerhult Group Ab · OMXSTO:FAG
Fagerhult Group Ab — Q4 2024 Earnings Presentation
27 slides from Fagerhult Group Ab's earnings presentation, Feb 19, 2025
Slide 1: We light up your world
We light up your world Q4 2024 presentation February 19, 2025
Slide 2: CEO comments
CEO comments ─ Market conditions remain volatile and unpredictable ─ We increase and accelerate our cost reduction actions – confident that 2025 will benefit as a result ─ New-build market not yet beginning to recover ─ Smart lighting growth and very high innovation rate across many brands 2
Slide 3: Q4 2024 in figures
Q4 2024 in figures Order intake: 2 008 MSEK (2 123) -6.2% organic Net sales: 2 040 MSEK (2 111) -4.1% organic Operating profit before IAC : 143 MSEK (216) Operating margin before IAC: 7.0% (10.2%) Earnings per share before IAC: 0.32 SEK (0.61) 3
Slide 4: 2024 in figures
2024 in figures Order intake: 8 114 MSEK (8 435) -3.4% organic Net sales: 8 305 MSEK (8 560) -2.6% organic Operating profit before IAC : 741 MSEK (901) Operating margin before IAC: 8.9% (10.5%) Earnings per share before IAC: 2.31 SEK (3.09) 4
Slide 5: Our operating model
Our operating model Business Collection Premium Professional Infrastructure areas Smart lighting Strategic People & Innovation Sustainability focus areas Culture 5
Slide 6: Our operating model
Our operating model Business Collection Premium Professional Infrastructure areas Smart lighting Strategic People & Innovation Sustainability focus areas Culture 6
Slide 7: Collection
Collection Exceptional lighting solutions for architectural applications on a global scale Collection revenue ─ Global footprint ~ 45% ─ Impressive collection of prestigious projects ─ Working with global community of architects & lighting designers ─ Wide product range for indoor and outdoor 7
Slide 8: Collection top brand profile
Arctic Bath, Harads, Sweden Top 3 Brand • Founded 1934 in Skåne, Sweden • Joined Fagerhult Group 1974 Focus • Bespoke one-off luminaires for prestigious projects • Collaborations with world famous lighting designers Example applications • Offices, Education, Hospitality & Residentials, Urban spaces,
Slide 9: Collection top brand profile
The OWO, London, UK Top 3 Brand • Founded 1959 in Recanati, Italy • Joined Fagerhult Group in 2019 Focus • Global and renowned in high-end architectural lighting • Leading in design and sustainability Example applications • Hospitality & Residential, Culture, Education and Offices 9
Slide 10: Collection top brand profile
Puma Flagship store, New York, Top 3 USA Brand • Founded in 2006 in Duisburg, Germany • Joined Fagerhult Group 2016 Focus • Cutting-edge and unique LED technology • Tailor-made linear LED solutions Example applications • Urban spaces, Retail and Outdoor areas 10
Slide 11: Premium top brand profile
Porta Westfalica Bridge, Dortmund-hörde, Germany Top 3 Brand • Founded 1950 in Bispingen, Germany • Joined Fagerhult Group 2017 Focus • Professional high-performance exterior lighting • Leading lens technologies and optical systems Example applications • Urban spaces, Street & Pathways 11
Slide 12: Industry-aligned emission calculations
Industry-aligned emission calculations What has changed Example: Emission factor1 change (UK) ─ Before: For a luminaire operating for 20 years, a projected 20 years average emission factor had been used ─ After: Actual emission factor for the year of sale of the luminaire is used for all 196 electri
Slide 13: Fagerhult Group's total carbon footprint has decreased by ~34% from 2021
Fagerhult Group’s total carbon footprint has decreased by ~34% from 2021 Total CO2 footprint1 -34% Net zero goals2 3 467 3 284 Near-term - 2030 2 745 ─ Reduce Scope 1 & 2 emissions by 70% and 2 154 Scope 3 emissions by 30% Long-term - 2045 ─ Net zero 2021 2022 2023 2024 1. Includes Scope 1, Scope 2
Slide 14: Financial summary
Fagerhult Group Financial summary MSEK Q4 2024 Q4 2023 Net sales 2040 21 -3,4% -Organic growth -88 -41% -FX-differences 7 Operating profit before IAC 143 216 -33,7% Operating profit before IAC, % 7,0% 10,2% -3,2p.p. Earnings per share before IAC, SEK 0,32 0,61 Operating cash flow 356 365 4
Slide 15: Financial summary
Fagerhult Group Financial summary MSEK Q4 2024 Q4 2023 YTD 2024 YTD 2023 Net sales 2040 211 -3,4% 8305 8560 -3,0% -Organic growth -88 -41% -227 -2,6% -FX-differences 7 -29 Operating profit before IAC 143 216 -33,7% 741 901 -17,8% Operating profit before IAC, % 7,0% 10,2% -3,2p.p. 8,9% 10,5% ~1,6 p.p
Slide 16: Sales development
Sales development Net sales R12 Net sales R12, MSEK 16
Slide 17: Margin development
Margin development Operating margin before IAC by quarter and R12 Operating margin before IAC,% Rolling 12 months 17
Slide 18: Collection
Collection Financials Q4 ─ Order intake 955 (989) MSEK, organic -4.1% ─ Net sales 965 (1 036) MSEK, organic -7.5% ─ Operating margin before IAC 7.3% (11.0%) Business update ─ Business activity was higher than Q3, but still with project delays ─ Consistent FY operating margin before IAC of 9.4 (9.5)%
Slide 19: Premium
Premium Financials Q4 ─ Order intake 631 (707) MSEK, organic -11.4% ─ Net sales 666 (690) MSEK, organic -4.2% ─ Operating margin before IAC 11.8% (15.4%) Business update ─ Flat year on year order intake is reasonable – new build ─ Re-structuring at LTS to reduce the forward cost base and cost reduct
Slide 20: Professional
Professional Financials Q4 ─ Order intake 246 (198) MSEK, organic +21.7% ─ Net sales 272 (241) MSEK, organic +11.8% ─ Operating margin before IAC 7.7% (8.7%) Business update ─ Continued year-on-year improvement in Whitecroft and Eagle – overall positive 3 year trend ─ Re-structuring at Arlight conti
Slide 21: Infrastructure
Infrastructure Financials Q4 ─ Order intake 172 (229) MSEK, organic -25.9% ─ Net sales 205 (212) MSEK, organic -5.0% ─ Operating margin before IAC 9.3% (11.4%) Business update ─ An improved order backlog at the start of the year ─ Veko restructuring will enhance margins in 2025 and provide a more fo
Slide 22: Cash flow
Cash flow Operating cash flow by quarter and R12 Cash flow by quarter, MSEK Rolling 12 months 22
Slide 23: Net debt development
Net debt development Net debt and Net debt/EBITDA ratio Net debt, MSEK Net debt/EBITDA* *EBITDA adjusted for acquisitions/divestments on a proforma basis and excluding items affecting comparability 23
Slide 24: Earnings per share
Earnings per share Earnings per share by quarter and R12 Earnings per share before IAC by quarter, SEK Rolling 12 months 24
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Slide 26: Conclusions and recap
Conclusions and recap ─ The slower market conditions with uncertainties from economic and political conditions remain ─ We are assessing the potential impacts from US tariffs ─ New build and renovation growth is yet to return ─ Meanwhile we increase and accelerate our focus on cost reductions in som
Slide 27: Slide 27