Elica S.p.a. · MIL:ELC
Elica — H1 2023 Earnings Presentation
25 slides from Elica's earnings presentation, Jul 27, 2023
Slide 1: H1 2023 Results
H1 2023 Results ANALYSTS PRESENTATION THURSDAY JULY 27TH, 2023
Slide 2: Agenda
AGENDA 1 H1 HIGHLIGHTS 2 INDUSTRY TREND 3 SALES DYNAMICS ECONOMICS 4 & FINANCIALS 5 CLOSING REMARKS 2
Slide 3: Q2 2023 Results Highlights
Q2 2023 RESULTS HIGHLIGHTS NET SALES YoY Change ▪ Still challenging market scenario with a persisting soft 125,5 M€ -20,7 M€ -14,1% demand in Cooking business. Sudden industry (organic: -13,6%) slowdown in Motors Heating products from May ▪ Sequential ongoing margins expansion (+80 bps QoQ) EBIT ADJ
Slide 4: H1 2023 Results Highlights
H1 2023 RESULTS HIGHLIGHTS 150 145 140 144 146 135 129 130 129 126 NET SALES YoY Change 130 125 120 254,5 M€ -35,7 M€ -12,3% 115 (organic: -12,2%) Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 6.2% 6.5% 20 5.5% 5.7% 5.2% 6.0% 7.0% 6.0% EBIT ADJ YoY Change 10 9.0 9.6 7.1 7.4 6.7 7.5 5.0% 4.0% 14,2 M€ -4,
Slide 5: Industry Trend
INDUSTRY ELICA TREND PROCESS TURNAROUND 5
Slide 6: Cooker Hoods Industry Unit Shipments
Q1-Q4 ’22 & Q1-Q2 ’23 – COOKER HOODS INDUSTRY UNIT SHIPMENTS Volume Data _ Change % vs Y-1 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 0.0% -5.0% -3% -10.0% -7% EMEA* -10% -15.0% -12% -12% -12% 10.0% 4% 0.0% NORTH -10.0% -3% -8% -8% -7% AMERICA** -20.0% -11% 0.0% -10.0% -6% -5% -4% LATIN -7% -7%
Slide 7: Sales Dynamic
SALES DYNAMIC 7
Slide 8: Sales Key Drivers
SALES KEY DRIVERS Q2 H1 -20,7 M€ -14,1% -35,7 M€ -12,3% 146,2 -19,8 290,2 -35,5 -0,1 -0,6 254,6 125,5 -12,2% -0,0% -0,8% -13,6% M€ M€ Q2 2022 Organic Currency Q2 2023 Organic Currency H1 2023 H1 2022 Net Sales Net Sales Net Sales Net Sales ▪ Sales affected by volumes decline, as a result of the weak
Slide 9: Sales Drivers & Regional Overview
SALES DRIVERS & REGIONAL OVERVIEW Q2 H1 -14,1% -12,3% 290,2 -6,8 146,2 -2,7 -16,3 -25,2 -1,6 125,5 -3,7 254,5 M€ M€ Q2 2022 Americas Emea Asia Q2 2023 H1 2022 Americas Emea Asia H1 2023 Net Sales Net Sales Net Sales Net Sales Q2 2022 20,6 115,9 9,7 146,2 H1 2022 41,6 229,2 19,5 290,2 Currency -0,1 -
Slide 10: Sales by Business
SALES BY BUSINESS Q2 H1 -14,1% -12,3% 146,2 -2,7 290,2 -1,8 -33,9 -18,0 125,5 254,5 M€ M€ Q2 2022 Motors Cooking Q2 2023 H1 2022 Motors Cooking H1 2023 Net Sales Net Sales Net Sales Net Sales Q2 2022 32,0 114,2 146,2 H1 2022 63,7 226,5 290,2 Currency - -0,9 -0,8 Currency - -0,1 -0,1 +0,1% -0,8% -0,6
Slide 11: Cooking Sales by Brand
COOKING SALES BY BRAND Q2 H1 -15,7% -15,0% 114,2 -11,2 226,5 -26,8 -7,1 -6,8 96,2 192,6 M€ M€ Q2 2022 OEM OWN BRAND Q2 2023 H1 2022 OEM OWN BRAND H1 2023 Net Sales Net Sales Net Sales Net Sales Q2 2022 48,3 65,9 114,2 H1 2022 100,7 125,8 226,5 Currency - -0,8 -0,9 Currency +0,5 -0,7 -0,1 -0,1% -1,3%
Slide 12: Economics & Financials
ECONOMICS & FINANCIALS INDUSTRY TREND & MKT SHARE EVOLUTION 12
Slide 13: Margins & Key Result Drivers
MARGINS & KEY RESULT DRIVERS EBIT* MARGIN TREND BY QUARTER 2023 €M Q1 Q2 H1 *Excluding non recurring item 6.2% 6.5% NET SALES 129,0 125,5 254,5 15 5.7% 6.0% 7.0% 5.5% 5.2% 6.5% 6.0% ADJ EBITDA 12,6 13,5 26,1 10 9.0 9.6 5.5% 7.4 7.5 5.0% % NET SALES 9,7% 10,8% 10,2% 7.1 6.7 4.5% 4.0% 5 3.5% ADJ EBIT
Slide 14: Margins & Key Result Drivers: Changes vs Prior Year
MARGINS & KEY RESULT DRIVERS Q2 1H CHANGES vs. PRIOR YEAR €M 2023 2022 % VAR 2023 2022 % VAR Q2 1H NET SALES 125,5 146,2 (14,1)% 254,5 290,2 (12,3)% VOLUME -- -- ADJ EBITDA 13,5 15,5 (12,7)% 26,1 30,4 (14,3)% PRICE / MIX - + % NET SALES 10,8% 10,6% 18 bps 10,2% 10,5% -24 bps RAW MATERIAL INFLATION -
Slide 15: 1H 2023 Net Financial Position
1H 2023 – NET FINANCIAL POSITION €M H1 2023 H2 2022 VAR COMMENTS OPENING NFP 43,9 35,1 (8,8) ▪ Strong management of operational FCF despite a IFRS16 EFFECT 14,0 12,4 1,6 critic market scenario: OPENING NFP NET of IFR16 29,9 22,7 (7,2) OPERATING CASH FLOW 16,7 21,6 (4,9) ▪ Stable Working Capital abso
Slide 16: Closing Remarks
CLOSING REMARKS H1 2023 Takeaways : ▪ Persisting negative market demand and strong promotional environment ▪ Margin increase QoQ: solid fundamentals, low contribution from decreasing raw materials costs ▪ Cash generation/Leverage under control Full Year Guidance: ▪ Revenues: ~ -8% ▪ Cooking market d
Slide 17: Solid Fundamentals Towards Our Midterm Strategy
SOLID FUNDAMENTALS TOWARDS OUR MIDTERM STRATEGY In the last 2 years, while we achieved record margins in a volatile and inflationary market environment, we have built our future EMC Acquisition and New Motor Legal Flexibility of new EMEA footprint Entity established COOKING MOTORS Operational Synerg
Slide 18: Annex: Financial Highlights
ANNEX: FINANCIAL HIGHLIGHTS 18
Slide 19: Q2 Consolidated Income Statement
Q2 CONSOLIDATED INCOME STATEMENT (*) EPS is calculated by dividing the Net Result pertaining to the Group by the number of ordinary shares outstanding, excluding treasury shares at the same data. 19
Slide 20: H1 Consolidated Income Statement
H1 CONSOLIDATED INCOME STATEMENT (*) EPS is calculated by dividing the Net Result pertaining to the Group by the number of ordinary shares outstanding, excluding treasury shares at the same data. 20
Slide 21: Net Working Capital
NET WORKING CAPITAL €M Trade receivables % on annualized sales Inventories % on annualized sales Trade payables % on annualized sales Managerial Working Capital % on annualized sales Short term assets & liabilities % on annualized sales Net Working Capital % on annualized sales CE Ze ar 46.9 48.5 (1
Slide 22: Consolidated Cash Flow
CONSOLIDATED CASH FLOW €M H1 23 H1 22 Operating Cash Flow 13.1 10.6 Capex (*) (6.8) (8.4) Cash Flow from Financial Activities (12.9) (10.9) A Net Financial Position (6.5) (8.7) 2 elica 22
Slide 23: Consolidated B/S
CONSOLIDATED B/S (*) Including IFRS 16 effect 23
Slide 24: Focus: NRI & Minorities
FOCUS: NRI & MINORITIES RESTRUCTURING COSTS & NRI MINORITIES €M 2023 2023 €M 2023 2022 MINORTY MINORTY Q2 H1 Q2 H1 SHARES Q2 H1 SHARES Q2 H1 PATENTS AGREEMENT --- --- -3,2 -3,2 ARIAFINA 49,0% 0,3 0,7 49,0% 0,2 0,6 RESTRUCTURING SG&A 0,3 0,6 0,5 0,9 AIRFORCE --% -- -- 40% (0,1) 0,0 INDUSTRIAL PLAN 0,
Slide 25: XN
XN