Dometic Group Ab · OMXSTO:DOM
Dometic Group Ab — Q3 2020 Earnings Presentation
29 slides from Dometic Group Ab's earnings presentation, Oct 23, 2020
Slide 1: Interim Presentation Q3 2020
INTERIM PRESENTATION Q3 2020 OCTOBER 23, 2020
Slide 2: Juan Vargues, President & CEO
JUAN VARGUES PRESIDENT & CEO Mobile living made easy. “A> DOMETIC
Slide 3: Q3 2020 Highlights
Q3 2020 HIGHLIGHTS Market development ▪ Fast recovery after the unprecedented second quarter ▪ Retail inventory levels are low ▪ Increased end user appetite for outdoor activities ▪ 2nd lock down in parts of Australia Performance ▪ Record high backlog ▪ Organic growth 3%, driven by Aftermarket ▪ EBI
Slide 4: Q3 2020 Financial Summary
Q3 2020 FINANCIAL SUMMARY NET SALES AND EBIT BEFORE I.A.C. Net sales of SEK 4,466 m, -3% total growth ▪ +3% organic ▪ -6% FX ▪ 0% M&A EBIT before i.a.c. of SEK 690 m, +11% ▪ EBIT margin of 15.5% (13.5%) + Aftermarket sales growth + Cost saving activities + Less negative impact from US trade tariffs
Slide 5: YTD 2020 Financial Summary
YTD 2020 FINANCIAL SUMMARY NET SALES AND EBIT BEFORE I.A.C. Net sales of SEK 11,993 m, -18% total growth ▪ -17% organic ▪ 0% FX ▪ 0% M&A EBIT before i.a.c. of SEK 1,473 m, -31% ▪ EBIT margin of 12.3% (14.7%) + Pro-actively managing cost base in the light of COVID-19 + Efficiency improvements and pri
Slide 6: Application Areas
APPLICATION AREAS Actual currency rolling 12 months *Q split
Slide 7: Sales Growth
SALES GROWTH Quarter 3 2020 SEK 4,466 m, +3% organic growth ▪ Americas +5% ▪ EMEA +4% ▪ Asia Pacific -15% ▪ Whereof Aftermarket +13%
Slide 8: EBIT and EBIT Margin before i.a.c.
EBIT AND EBIT MARGIN BEFORE I.A.C
Slide 9: Americas
AMERICAS Net sales of SEK 2,400 m, +5% organic = Growth in Food & Beverage, Power & Control and in Other Applications = Record high order backlog = Double digit sales growth in Aftermarket = Started deliveries on automotive OEM contracts EBIT before i.a.c. of SEK 383 m, +30% = EBIT Margin of 16.0% (
Slide 10: EMEA
Net sales of SEK 1,739 m, +4% organic = Growth in Food & Beverage, Power & Control and in Other Applications = New organizational structure to drive efficiency and growth initiatives Ml OEM, 43% = Double digit sales growth in Aftermarket business AM, 57% = Lower demand in European Marine OEM EBIT be
Slide 11: APAC
Net sales of SEK 326 m, -15% organic = Negative growth in all application areas = August — September negatively impacted by 2™ wave of lock-downs in parts of Australia = Organic growth in Asia EBIT before i.a.c. of SEK 53 m, -36% = EBIT Margin of 16.4% (20.9%) + Efficiency improvements — Volume decl
Slide 12: Restructuring Program
RESTRUCTURING PROGRAM Locations ▪ 4 locations affected in the quarter, 21 so far Employees ▪ 18 employees affected in the quarter, approximately 740 so far Costs ▪ SEK 14 m in the quarter, SEK 214 m so far
Slide 13: Products Introduced in Q3
PRODUCTS INTRODUCED IN Q3 DOMETIC ELECTRIC POWER ASSIST COMPRESSOR VERSION 10-SERIES NEW WINE REFRIGERATOR RANGE UPGRADE OF DOMETIC INTERACT ▪ Groundbreaking innovation ▪ Iconic double hinge door RV fridge ▪ Purpose-built and categorized for ▪ Offers seamless connectivity across in compressor coolin
Slide 14: Q3 Strategy Execution
Q3 STRATEGY EXECUTION 1 Profitable expansion ▪ Increased focus on Aftermarket growth ▪ Implementing global e-commerce B2C solution ▪ Organizational investments into new growth areas 2 Product leadership ▪ Continuous improvement of Innovation Index ▪ Secure position in existing areas while developing
Slide 15: Clear Acceleration of Outdoor Lifestyle Trend
CLEAR ACCELERATION OF OUTDOOR LIFESTYLE TREND VACATION More than 3 days STAYCATION 1-3 days ACTIVITY Over the day
Slide 16: +70% More Global Visits to Dometic.com YTD vs 2019
+70% MORE GLOBAL VISITS TO DOMETIC.COM YTD VS 2019 ALMOST TWO MILLION MORE VISITS DURING Q3 20 VS Q3 19 Traffic to Dometic.com continues to show significant traffic increase with changed demographics • Largest visitor group ages 25-34 (previously 45-54) • 2nd largest group ages 35-44 • Increase in t
Slide 17: The Leading Vehicle-Based Outdoor Brand
THE LEADING VEHICLE-BASED OUTDOOR BRAND RECREATIONAL VEHICLES BOATS VANS PASSENGER CARS We We are expanding our We are are a a leading leading playerplayer within We We areare a leading a leading player player within leisure We are a leading player We are expanding our offering to the within Recreat
Slide 18: Market Size 2019 – RV Market vs SUV Market
MARKET SIZE 2019 – RV MARKET VS SUV MARKET 29 M SUV’s registered every year 250 M SUV’s registered globally 0.8 M RV’s registered every year 15 M RV’s registered globally RV´s SUV´s Registered globally Registered yearly
Slide 19: Stefan Fristedt, CFO
STEFAN FRISTEDT CFO Mobile living made easy. “A> DOMETIC
Slide 20: COVID-19 Impact
COVID-19 IMPACT SIGNIFICANTLY LESS IMPACT IN THE THIRD QUARTER Estimated P&L impact SEK m. Q3 2020 YTD 2020 ▪ As anticipated less negative impact compared to 1H 2020 Net Sales -130 -2,400 EBIT -30 -800 Government grants SEK m. Q3 2020 YTD 2020 ▪ Received governmental support recorded in the income s
Slide 21: Cash Flow
CASH FLOW Q3 a4 a Q2 “aa fell Q2 Q3 2018 2018 2019 2019 2019 2019 2020 2020 2020 ) Operating cash flow = Cash conversion Mobile living made easy. “@> DOMETIC
Slide 22: Working Capital
WORKING CAPITAL DAYS, NORMAL CURRENCY
Slide 23: Capex & Product Development
CAPEX & PRODUCT DEVELOPMENT (SEKm, % OF NET SALES) CAPEX 2.2% Q3 Q4 Qi Q2 Q3 Q4 Qi Q2 Q3 2018 2018 2019 2019 2019 2019 2020 2020 2020 PD 120 5 6% 100 2.1% 5% Q3 Q4 Qi Q2 Q3 Q4 Qi Q2 Q3 2018 2018 2019 2019 2019 2019 2020 2020 2020 Mobile living made easy. = Q3 2020 CAPEX: 1.1% of net sales. (1.5% in
Slide 24: Net Debt Leverage and Net Debt Details
NET DEBT LEVERAGE AND NET DEBT DETAILS
Slide 25: Debt Maturity Profile September 2020
DEBT MATURITY PROFILE SEPTEMBER 2020 *Extended in June with one year from 2024 to 2025
Slide 26: Q3 2020 Financial Items and Taxes
Q3 2020 FINANCIAL ITEMS AND TAXES EPS reduced to SEK 0.95 (1.26) due to taxes and financial items Financial items SEK -153 m (-82) ▪ Other FX revaluations SEK -52 m (+26) due to weakened USD in the quarter ▪ Interest on external bank loans SEK -101 m (-110) Taxes SEK -242 m (-129) ▪ Corresponding to
Slide 27: Q3 2020 Summary
Q3 2020 SUMMARY Business highlights ▪ Rapid increase in market demand ▪ Increased end user appetite for staycation and outdoor activities. ▪ Organic sales growth 3% ▪ Record high order backlog ▪ Foresee coming quarters to be strong ▪ Strong EBIT margin improvement to 15.5% (13.5%) Strategic highligh
Slide 28: Slide 28
Slide 29: Disclaimer
DISCLAIMER SOME STATEMENTS HEREIN ARE FORWARD-LOOKING AND THE ACTUAL OUTCOME COULD BE MATERIALLY DIFFERENT. IN ADDITION TO THE FACTORS EXPLICITLY COMMENTED UPON, THE ACTUAL OUTCOME COULD BE MATERIALLY AFFECTED BY OTHER FACTORS, (A) CHANGES IN ECONOMIC, MARKET AND COMPETITIVE CONDITIONS, (B) SUCCESS