Dometic Group Ab · OMXSTO:DOM
Dometic Group Ab — Q1 2018 Earnings Presentation
37 slides from Dometic Group Ab's earnings presentation, Apr 26, 2018
Slide 1: Interim Presentation Q1 2018
INTERIM PRESENTATION Q1 2018 26 April 2018
Slide 2: Juan Vargues, President & CEO
JUAN VARGUES, PRESIDENT & CEO
Slide 3: Q1 2018 Highlights
Q1 2018 HIGHLIGTHS Good organic growth in all regions ▪ Strong growth in APAC ▪ Good growth in Americas and EMEA. ▪ Integration of SeaStar Solutions runs according to plan EBIT improvement ▪ Execution on EMEA profitability improvement program ▪ Stronger focus on pricing ▪ Raw material impact Operati
Slide 4: Q1 2018 Financial Summary
Q1 2018 FINANCIAL SUMMARY Net sales of SEK 4,442 m, +29% total growth NET SALES AND EBIT BEFORE I.A.C ▪ +10% organic SEKm SEKm 4,500 900 ▪ -2% FX Net sales 800 ▪ +21% M&A 4,000 +29% 3,500 700 EBIT before i.a.c. of SEK 638 m, +53% 3,000 600 ▪ EBIT Margin of 14.4% (12.1%) EBIT 2,500 +53% 500 + Efficie
Slide 5: Sales Growth in Constant Currency
SALES GROWTH IN CONSTANT CURRENCY • Strong sales trend SEKm 32% 16,000 • 13% CAGR sales growth 28% • 9% average quarterly organic 24% 14,000 growth 20% 16% 12,000 12% 8% 10,000 4% 0% -4% 8,000 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Organic Net Sales, rolling 12 months M&A net
Slide 6: EBIT and EBIT Margin before i.a.c
EBIT AND EBIT MARGIN BEFORE I.A.C • Underlying improvements EBIT RUN RATE 13.8% (12.8%) SEKm • 1%-point EBIT improvement 900 18% YoY rolling 12 months 750 15% • 26% CAGR EBIT growth 600 12% • Continued focus on reaching 450 9% 15% target 300 6% 150 3% 0 0% Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q
Slide 7: RV - Global Market
RV - GLOBAL MARKET Americas EMEA - ROLLING TWELVE MONTHS REGISTRATIONS (000S UNITS) Rolling three months: 121,706 units, +15%, 130 Rolling twelve months: 516,791 units, +18% 120 EMEA 110 Rolling three months: 30,722 units, +16% Rolling twelve months: 120,955 units, +15% 100 90 Australia Rolling thre
Slide 8: CPV - Heavy Trucks
CPV - HEAVY TRUCKS EUROPE – ROLLING THREE MONTHS REGISTRATIONS (000S UNITS) Europe – above 16 tons 70 Rolling three months 60 December 2017 – February 2018: +3% 50 40 30 20 10 Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Feb 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 18 AMERICAS – R
Slide 9: Marine - US Power Boat Sales
MARINE - US POWER BOAT SALES ROLLING TWELVE MONTHS (Y-O-Y % CHANGE) POWER BOAT CATEGORY (%) 16 15 13 10 5 3 12 March 2018: 0 1 0 2.9% -5 8 -10 -8 -7 -15 4 -15 -15 -15 -20 -25 0 -25 -30 -35 -4 -40 -45 OB (11 IB IB IB IB -8 - 40ft) (14-30 (31-40 (41-62 (63-99 ft) ft) ft) ft) -12 March 2018 YTD -16 Jun
Slide 10: Market Highlights
MARKET HIGHLIGHTS E-MAGAZINE IN AUSTRALIA GREAT TRADESHOW ATTENDANCE ▪ Outdoor lifestyle magazine for mobile ▪ Victorian Caravan, Camping and Touring Supershow living enthusiasts ▪ Florida RV Supershow ▪ First issue released at industry tradeshow in February ▪ Miami Boat Show ▪ Unlimited Off-Road Ex
Slide 11: Product Highlights
PRODUCT HIGHLIGHTS AMERICAS EMEA APAC PowerChannel Hardware Rail Palm Beach Navireceiver RV Refrigerator ▪ Awnings rail for smart accessories ▪ Integrated control for RV & CPV ▪ New narrow design and adjustable shelves Mojave Small Furnace ▪ New design and functionality ▪ Market leading performance
Slide 12: Americas
AMERICAS Net sales of SEK 2,287 m, +12% organic NET SALES AND EBIT MARGIN BEFORE I.A.C. ▪ Strong RV market continues 3,000 20.0% ▪ SeaStar performing according to plan 2,500 ▪ Good traction for cooling boxes 15.0% OEM, 76% 2,000 AM, 24% EBIT before i.a.c. of SEK 334 m, +104% 1,500 10.0% ▪ EBIT Margi
Slide 13: EMEA
EMEA Net sales of SEK 1,696 m, +6% organic NET SALES AND EBIT MARGIN BEFORE I.A.C. ▪ Strong growth in Germany 2,000 20.0% ▪ Growth in South Europe ▪ Easter effect with 1 less working day 1,500 15.0% OEM, 54% AM, 46% EBIT before i.a.c. of SEK 209 m, +29% 1,000 10.0% ▪ EBIT Margin of 12.3% (10.6%) + P
Slide 14: APAC
APAC Net sales of SEK 459 m, +16% organic NET SALES AND EBIT MARGIN BEFORE I.A.C. ▪ Strong RV and Retail in Pacific 600 25.0% ▪ Good Marine in Taiwan and Retail & Lodging 500 in Korea 20.0% OEM, 47% ▪ Good growth in China 400 AM, 53% 15.0% ▪ Growth in Southeast Asia 300 10.0% EBIT before i.a.c. of S
Slide 15: Q1 Strategy Execution
Q1 STRATEGY EXECUTION Growth 1 ▪ Solid growth outside our RV business ▪ Strong Aftermarket development, +22% in constant currencies ▪ Increased and more dedicated focus on CPV, Retail and Lodging Innovation 2 ▪ New CTO to improve process ownership and speed in innovation ▪ Global Products and Shared
Slide 16: Per-Arne Blomquist, CFO
PER-ARNE BLOMQUIST, CFO Mobile living made easy. “> DOMETIC
Slide 17: Dometic Group Trends
DOMETIC GROUP TRENDS SALES (SEKm) EBIT BEF. I.A.C (SEKm) 16,000 2,100 15,000 1,950 14,000 1,800 13,000 1,650 12,000 1,500 10,000 1,350 Mar Jun Sep Dec Mar Jun Sep Dec Mar Mar Jun Sep Dec Mar Jun Sep Dec Mar 2016 2017 2018 2016 2017 2018 EBIT BEF. I.A.C (%) OPERATING CASH FLOW (SEKm) 14.0 1,950 13.5
Slide 18: Business Area Development
BUSINESS AREA DEVELOPMENT CPV SALES SPLIT, RV +13% +2% (14% CC) (1% CC) BUSINESS AREA 9,500 2,000 9,000 1,950 8,500 1,900 8,000 1,850 0 0 Mar Jun Sep Dec Mar Jun Sep Dec Mar Mar Jun Sep Dec Mar Jun Sep Dec Mar 2016 2017 2018 2016 2017 2018 MARINE +82% RETAIL & LODGING +23% RV, 55% Marine, 24% 2,400
Slide 19: 5 Years Sales and EBIT Development
5 YEARS SALES AND EBIT DEVELOPMENT NET SALES +92.7% 15,043 14,044 12,388 11,486 8,806 7,808 2013 2014 2015 2016 2017 2018 LTM EBIT BEFORE I.A.C +118.6% 2,081 1,860 1,621 1,412 952 1,018 2013 2014 2015 2016 2017 2018 LTM
Slide 20: Key Ratios
KEY RATIOS Q1 Q1 LTM FY SEKm 2018 2017 2018 2017 Sales Net sales 4,442 3,443 15,043 14,044 Growth 29.0% 14.8% 17.2% 13.4% Organic growth, % 9.7% 11.3% 10.9% 11.5% Profitabitlity EBIT before i.a.c 638 418 2,081 1,860 EBIT before i.a.c., % 14.4% 12.1% 13.8% 13.2% EBITDA before i.a.c 761 495 2,447 2,18
Slide 21: Net Sales Bridge Q1
DOMETIC GROUP NET SALES BRIDGE Q1 SEKm TRANSLATION FX DETAILS +29% Share of Net sales impact 4,442 USD -100 170% EUR 58 -99% AUD -12 20% 3,443 21% HKD -3 6% GBP 1 -1% -2% 10% CNY 0 0% Other -3 5% Total -59 Q1 2017 Translation FX Organic growth M&A Q1 2018
Slide 22: Regional Results
REGIONAL RESULTS Change (%) HIGHLIGHTS SEK million Q1 2018 Q1 2017 Rep. Adj.1) LTM 2018 FY 2017 Americas3) 2,287 1,506 52% 63% 7,110 6,329 ▪ Organic growth in all regions EMEA 1,696 1,527 11% 7% 6,131 5,962 ‒ Americas +12% organic Asia Pacific 459 410 12% 17% 1,802 1,753 Net sales 4,442 3,443 29% 31
Slide 23: Earnings per Share - Q1
EARNINGS PER SHARE - Q1 SEKm Total Group 2018 EPS 2017 EPS Net Sales 4,442 3,443 • Q1 2018: Total tax rate: 27% (24%) EBIT (before e.o items) 638 2.16 418 1.41 Tax paid: 19% (-1%) Finance net -127 -0.43 -31 -0.10 Tax -136 -0.46 -91 -0.31 Result for the period 375 1.27 296 1.00 No. of share 296 296 E
Slide 24: Capex & Product Development
CAPEX & PRODUCT DEVELOPMENT (SEKm, % OF NET SALES) CAPEX 100 5% 1.8% 80 4% 1.8% 60 1.8% 3% ▪ Q1 2018 CAPEX: 84 88 1.8% of net sales. 40 71 78 2% 53 60 68 63 (1.8% in 2017) 20 44 1% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2016 2017 2017 2017 2017 2018 PD 100 5% 1.8% 2.2% 80 2.2% 4% 60 3% ▪ Q1
Slide 25: Working Capital Development
WORKING CAPITAL DEVELOPMENT SEKm 800 22.8% 23.3%* 25% 21.5% 600 20% ▪ Average CWC/LTM net sales: 400 21.6% excluding SeaStar 15% 23.3% including SeaStar 200 219 286 126 183 0 10% -225 -141 -200 5% -524 -546 -400 -825 0% -600 -5% -800 -1 000 -10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2016 2017 20
Slide 26: Working Capital
WORKING CAPITAL SEKm Y-o-Y delta, mainly due to: 4,298 Seastar Solutions: 3,376 +SEK 442 m 3,239 3,304 3,057 3,701 Goods in transit: +SEK 116 m 2,697 3,350 2,785 2,704 Seastar Solutions: 1,915 2,159 SEK +410 m 1,699 1,541 1,485 Seastar Solutions: -1,244 -1,308 -1,187 -1,459 -1,562 SEK –193 m March J
Slide 27: Cash Flow
CASH FLOW SEKm 700 250% 600 200% 500 150% 373 400 100% 667 300 570 50% 511 535 536 200 0% 352 -9% -4% 100 -22% -50% 0 -27 -100% -44 -102 -100 -150% -200 -200% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2016 2017 2017 2017 2017 2018 Operating cash flow Cash conversion
Slide 28: Net Debt Leverage and Net Debt Details
NET DEBT LEVERAGE AND NET DEBT DETAILS ACTUAL NET DEBT 3.5 3.3 3.4 3.0 2.5 2.4 2.1 2.0 1.8 1.8 2.3 1.7 1.7 1.5 1.3 1.0 0.5 1.0 0.0 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Actual Actual Actual Actual Actual Actual Actual Actual Actual SEKm Q1 2016 Q2 2016 Q3 2016 Q4 20
Slide 29: Financial Targets
FINANCIAL TARGETS Mid/long term FY 2015 FY 2016 FY 2017 Q1 2018 Financial target Net Sales Growth1 8% 7% 12% 10% 5% EBIT Margin2 12.3% 13.1% 13.2% 14.4% 15% Net Debt / EBITDA 2.4x 1.7x 3.3x 3.4x 2.0x Dividend Policy No dividend 40% 40% - 40% 1 Organic sales growth 2 EBIT before I.A.C.
Slide 30: Summary Q1 2018
SUMMARY Q1 2018 ▪ Strong organic sales growth of 10% ▪ Strong growth outside RV market ▪ Improved profitability due to good operational execution ▪ Integration of SeaStar proceeds according to plan ▪ Appointment of CTO to increase focus on innovation ▪ Working on additional plans to increase operati
Slide 31: Outlook 2018
OUTLOOK 2018 Organic growth in line with the financial target of 5% ▪ Global lifestyle trends ▪ Consumer confidence ▪ Product development ▪ Expansion in businesses outside of RV Aiming at 15% EBIT-margin during 2018 ▪ Continued focus on cost and efficiency improvements ▪ Grow Aftermarket and Marine
Slide 32: Q&A
Q&A Mobile living made easy. “> DOMETIC
Slide 33: Appendix
APPENDIX Mobile living made easy. “> DOMETIC
Slide 34: Appendix A: Quarterly Summary Key Financials
APPENDIX A QUARTERLY SUMMARY KEY FINANCIALS SEK million Q1 2017 Q1 2016 LTM 2018 FY 2017 Net sales 4,442 3,443 15,043 14,044 EBITDA 761 495 2,494 2,228 % of net sales 17.1% 14.4% 16.6% 15.9% Operating profit (EBIT) 638 418 2,127 1,907 % of net sales 14.4% 12.1% 14.1% 13.6% Operating profit (EBIT) be
Slide 35: Appendix B: Group P&L
APPENDIX B GROUP P&L SEK million Q1 2018 Q1 2017 FY 2017 Net sales 4,442 3,443 14,044 Cost of goods sold -3,064 -2,359 -9,599 Gross profit 1,378 1,084 4,445 Sales expenses -527 -451 -1,791 Administrative expenses -191 -188 -667 Other operating income and expenses 30 -9 -52 Items affecting comparabil
Slide 36: Disclaimer
DISCLAIMER This document contains statements that constitute forward looking statements. These statements appear in a number of places in this document and include statements regarding the intent, belief or current expectations of the customer base, estimates regarding future growth in the different
Slide 37: Mobile living made easy. “> DOMETIC
Mobile living made easy. “> DOMETIC