Dometic Group Ab · OMXSTO:DOM
Dometic Group Ab — Q2 2017 Earnings Presentation
36 slides from Dometic Group Ab's earnings presentation, Jul 18, 2017
Slide 1: Interim Presentation Q2 2017
INTERIM PRESENTATION Q2 2017 JULY 18, 2017
Slide 2: Presenters
PRESENTERS ROGER JOHANSSON PER-ARNE BLOMQUIST PRESIDENT & CEO CFO 2
Slide 3: Roger Johansson, President & CEO
ROGER JOHANSSON, PRESIDENT & CEO 3
Slide 4: Q2 2017 Highlights
Q2 2017 HIGHLIGHTS • Sales growth of 14%, whereof 9% organic with contribution from all regions. OEM, 55% • Sales growth in 6 out of 8 businesses and profit improvement in 7 out of 8. AM, 45% • Stable gross profit of 33.2%. • EBIT +11% incl. SEK 29 million related to class action legal costs. • Amer
Slide 5: Q2 2017 Sales, EBIT and Operating Cash Flow
Q2 2017 Sales (MSEK) EBIT bef i.a.c (MSEK) Operating Cash Flow (MSEK) 14% (10% comparable currency) Actual: 11% (7% comparable currency) Adjusted*: 16% (11% comparable currency) 3,949 679* 29 570 3,461 584 511 650 Q2 2016 Q2 2017 Q2 2016 Q2 2017 Q2 2016 Q2 2017 5 * EBIT adjusted for class action leg
Slide 6: US RV Market – OEM Shipments
US RV MARKET – OEM SHIPMENTS ROLLING TWELVE MONTHS (000S UNITS) 500 • Rolling three months 450 May 2017: 135,700 units (118,800) +14% 400 • YTD May: 350 209,000 units (186,200) +12% 300 • LTM May: 250 453,500 units (391,600) +16% 200 150 100 Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Ma
Slide 7: Europe RV Market Registrations
EUROPE RV MARKET REGISTRATIONS ROLLING TWELVE MONTHS (000S UNITS) • Rolling three months 60 June 2017: 55 49,600 units (44,300) +12%* 50 45 • LTM June 2017: 40 110,400 units (100,200) +10%* 35 +13% 50 30 25 40 20 30 +3% 15 20 +11% +6% +11% 10 10 5 0 DE FR SE NL IT 0 Jun Dec Jun Dec Jun Dec Jun Dec J
Slide 8: Europe Trucks (Above 16 Tons) Registrations
EUROPE TRUCKS (ABOVE 16 TONS) REGISTRATIONS ROLLING THREE MONTHS (000S UNITS) 70 • Rolling three months 65 May 2017: 60 66,800 units (63,600) +5% 55 50 • YTD May 2017: 45 103,600 units (99,200) +4% 40 • LTM May 2017: 35 242,300 units (228,400) +6% 30 25 20 15 10 Jun Dec Jun Dec Jun Dec Jun Dec Jun D
Slide 9: US Power Boat Sales
US POWER BOAT SALES ROLLING TWELVE MONTHS (000S UNITS) LTM May 2017: 5.0% Power boat category (%) 15 122 10 5 0 35 20 10 7 7 -5 -2 -9 -7 -10 -17 OB (11 - 40ft) IB (14-30 ft) IB (31-40 ft) IB (41-62 ft) IB (63-99 ft) -15 Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec May May 17 YTD 2017 10 1
Slide 10: Americas
AMERICAS Breakdown of sales Q2 Highlights By sales channel Organic sales growth 11%. EBIT margin increase from 16.0% to 16.2%, incl. SEK 29 million in class action legal costs. Strong RVOEM sales +12%. Closing the gap to the market growth. Improved efficiencies in logistics. +50% growth fo
Slide 11: EMEA
EMEA Breakdown of sales Q2 Highlights By sales channel Organic sales growth of 8%. EBIT margin of 15.1% (15.9). Strong RVOEM sales growth of +15%. Initiatives initiated addressing profitability within RVOEM, including pricing. Aftermarket growth in all businesses, particularly in RV, Lodgi
Slide 12: APAC
APAC Breakdown of sales Q2 Highlights By sales channel Organic sales growth 6%. Continued high EBIT margin of 23.3% (24.5). Increased market share in a soft Australian RV market. Strong sales development in Japan (+25%) and China (+32%). Aftermarket growth driven by strong RV, CPV and Lodg
Slide 13: Dometic Group Trends
DOMETIC GROUP TRENDS Sales (SEKm) EBIT bef. i.a.c (SEKm) 13,500 1,800 13,000 1,700 12,500 1,600 12,000 1,500 11,500 1,400 11,000 1,300 0 0 Jun Sep Dec Mar Jun Sep Dec Mar Jun Jun Sep Dec Mar Jun Sep Dec Mar Jun 2015 2016 2017 2015 2016 2017 EBIT bef. i.a.c (%) Operating cash flow (SEKm) 13.5 2,000 1
Slide 14: Business Area Development
BUSINESS AREA DEVELOPMENT RV +12% CPV +4% (8% CC) (+1% CC) 8,600 1,950 8,400 1,900 8,200 1,850 8,000 1,800 0 1,750 Jun Sep Dec Mar Jun Sep Dec Mar Jun Jun Sep Dec Mar Jun Sep Dec Mar Jun 2015 2016 2017 2015 2016 2017 Marine +21% Other +21% 1,300 (18% CC) 1,500 (16% CC) 1,450 1,250 1,400 1,200 1,350
Slide 15: Per-Arne Blomquist, CFO
PER-ARNE BLOMQUIST, CFO Mobile living made easy. “> DOMETIC
Slide 16: Key Ratios
KEY RATIOS Q2 Q2 H1 H1 LTM FY SEKm 2017 2016 2017 2016 2017 2016 Sales Net sales 3,949 3,461 7,393 6,460 13,321 12,388 Growth, % 14.1 8.1 14.4 6.3 12.2 7.9 Organic growth, % 8.9 8.7 10.0 7.0 8.2 6.9 Profitability EBIT before i.a.c. % 16.5 16.9 14.4 15.2 12.8 13.1 EBITDA before i.a.c. % 18.5 19.0 16.
Slide 17: Dometic Group Net Sales Bridge Q2
DOMETIC GROUP NET SALES BRIDGE Q2 (SEKm) +14% Translation FX details Share of 3,949 Net Sales impact 1% USD 70 49% EUR 51 35% AUD 16 11% 3,461 9% HKD 2 2% 4% GBP -5 -3% CNY 0 0% Other 9 6% Total 144 Q2 2016 Translation FX Organic growth Net acq. Q2 2017 17 and divest.
Slide 18: Regional Results
REGIONAL RESULTS Q2 Q2 Change (%) H1 H1 Change (%) LTM FY SEK million 2017 2016 Rep. Adj.⁽¹⁾ 2017 2016 Rep. Adj.⁽¹⁾ 2017 2016 Americas 1,692 1,527 11% 6% 3,198 2,967 8% 3% 5,980 5,749 EMEA 1,833 1,552 18% 14% 3,360 2,774 21% 18% 5,679 5,093 Asia Pacific 424 382 11% 5% 835 719 16% 9% 1,662 1,546 Tota
Slide 19: Group P&L Q2
GROUP P&L Q2 Q2 Q2 SEK million 2017 2016 Net sales 3,949 3,461 Cost of goods sold -2,637 -2,309 Gross Profit 1,312 1,152 GP% 33.2% 33.3% Comments Q2 2017 Sales expenses -458 -420 Administrative expenses -170 -133 Class action and acquired Total SG&A -628 -553 SG&A = 53 SEKm. SG&A% -15.9% -16.0% SG&A
Slide 20: Margin Development in the Regions
MARGIN DEVELOPMENT IN THE REGIONS AMERICAS EMEA 17.7 17.6 17.5 16.5 16.0 16.2 15.9 15.1 1,692 1,833 1,527 1,526 1,506 1,552 1,527 1,256 1,237 1,082 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2016 2016 2016 2017 2017 2016 2016 2016 2017 2017 APAC 26.1 24.6 24.5 EBIT% 23.3 EBIT% w/o central cost 382 379 448 410 42
Slide 21: Earnings per Share
EARNINGS PER SHARE Q2 2017 Q2 2016 SEKm, SEK Q2 2017 Q2 2016 EPS EPS Net sales 3,949 3,461 Operating profit (before i.a.c) 650 584 2.20 1.97 Finance net -32 -39 -0.11 -0.13 Tax -144 -81 -0.49 -0.27 Result for the period 474 453 1.60 1.53 No. of shares, million 295.8 295.8 Earnings per share, SEK 1.6
Slide 22: CAPEX & PMI
CAPEX & PMI (SEKm, % OF NET SALES) CAPEX (SEKm, % of net sales) • Q2 2017 CAPEX: 80 2.4% 4% 1.8% of net sales. 60 2.1% 3% (1.3% in 2016) 2.3% 1.3% 1.8% 1.8% 2.0% 1.8% 1.9% 40 74 71 2% 60 68 63 58 52 53 20 44 1% 0 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2015 2015 2016 2016 2016 2016 2017 2017 (SEKm, % of
Slide 23: Working Capital Development
WORKING CAPITAL DEVELOPMENT 24.5% 24.5% 24.3% 24.3% 23.2% 22.8% 22.7% 22.3% 22.0% 21.9% 22.5% 21.3% 21.5% 21.8% 430 253 219 200 126 -24 -117 -141 -183 -225 -299 -293 -524 -546 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2016 2017 23 Average core WC / LTM sales Change in core WC
Slide 24: Working Capital
WORKING CAPITAL (SEKm) 3,239 3,304 2,953 2,879 2,655 2,697 2,785 2,452 2,488 2,637 1,699 1,915 1,632 1,411 1,041 -1,131 -1,020 -1,024 -1,244 -1,308 June September December March June 2016 2016 2016 2017 2017 24 Inventory Accounts Receivables Accounts Payables
Slide 25: Cash Flow
CASH FLOW (SEKm) % 700 229% 250 600 200 107% 500 136% 147% 150 123% 400 78% 373 78% 100 73% 61% 89% 623 300 570 50 511 535 200 416 388 0 337 8% 342 352 287 -9% 100 -18% -22% -50 0 37 -100 -53 -44 -102 -100 -150 -200 -200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2016 2017 25 Cash conversio
Slide 26: Net Debt Leverage and Net Debt Details
NET DEBT LEVERAGE AND NET DEBT DETAILS ACTUAL 2.4 2.1 1.8 1.8 1.7 1.7 Q1 Q2 Q3 Q4 Q1 Q2 2016 2016 2016 2016 2017 2017 26
Slide 27: Items Affecting Third Quarter and Second Half 2017
ITEMS AFFECTING THIRD QUARTER AND SECOND HALF 2017 Q3: Class action legal fees: SEK 15-30 million (in administrative expenses, affects EBIT before i.a.c) Depending on level of activity. Q3: Consolidation China operations: CNY 80-100 million (affects items affecting comparability). Second half,
Slide 28: Financial Targets
FINANCIAL TARGETS Mid/long term FY 2014 FY 2015 FY 2016 H1 2017 Financial target Net Sales Growth1 5% 8% 7% 10 % 5% EBIT Margin2 11.6 % 12.3 % 13.1 % 14.4 % 15 % Net Debt / EBITDA 7.5x 2.4x 1.7x 1.7x 2.0x Dividend Policy - No dividend 40% - 40 % 1Organic sales growth 2EBIT before I.A.C. 28
Slide 29: US Class Action Complaint Update
US CLASS ACTION COMPLAINT UPDATE California: No major development since the Q1 presentation; the parties are engaging in document discovery awaiting the court’s ruling on the motion to dismiss. Florida: Fact and expert discovery are closed. A motion against class certification and a motion for s
Slide 30: Summary Q2
SUMMARY Q2 Strong sales and favorable market dynamics in most businesses. Underlying profitability improvements, excluding class action. Strong cash generation. Continued focus on product development, cost control and sales initiatives. The outlook remains positive in most of our businesse
Slide 31: Mobile living made easy. “> DOMETIC
a1 Mobile living made easy. “> DOMETIC
Slide 32: Appendix
APPENDIX 32 Mobile living made easy. “> DOMETIC
Slide 33: Appendix A: Quarterly Summary Key Financials
APPENDIX A Quarterly Summary Key Financials Q2 Q2 H1 H1 LTM FY SEK million 2017 2016 2017 2016 2017 2016 Net sales 3,949 3,461 7,393 6,460 13,321 12,388 EBITDA 729 646 1,224 1,119 1,976 1,871 % of net sales 18.5% 18.7% 16.6% 17.3% 14.8% 15.1% Operating profit (EBIT) 650 573 1,067 973 1,667 1,573 % o
Slide 34: Appendix B: Group P&L
APPENDIX B Group P&L Q2 Q2 H1 H1 FY SEK million 2017 2016 2017 2016 2016 Net sales 3,949 3,461 7,393 6,460 12,388 Cost of goods sold -2,637 -2,309 -4,996 -4,397 -8,463 Gross Profit 1,312 1,152 2,397 2,063 3,925 Sales expenses -458 -420 -909 -790 -1,651 Administrative expenses -170 -133 -359 -271 -60
Slide 35: 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 36: Mobile living made easy. “> DOMETIC
Mobile living made easy. “> DOMETIC