Somero Enterprises, Inc. · LSE:SOM
Somero Enterprises — H1 2021 Earnings Presentation
23 slides from Somero Enterprises's earnings presentation, September 2021
Slide 1: 2021 Interim Results
2021 INTERIM RESULTS SEPTEMBER 2021
Slide 2: H1 2021 Highlights
H1 2021 HIGHLIGHTS • Record revenue, profits and operating cash flow • H1 ‘21 revenue grew 82% vs prior year led by unprecedented demand in US as well as solid growth in Europe & Australia and from new products • Introduced Somero SkyStrip® in June 2021 expanding portfolio to 18 products • Planning
Slide 3: 2021 H1 Results
= an a 2021 H1 RESULTS
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS US$ MILLIONS (EXCEPT PER SHARE DATA) H1 2021 H1 2020 CHANGE $ CHANGE % Revenue $ 64.4 $ 35.3 29.1 82% Adjusted EBITDA (1,2) 24.6 8.7 15.9 183% Adjusted EBITDA margin (1,2) 38% 25% - 1,300bps Profits before tax 23.5 7.5 16.0 213% Adjusted net income (1,3) 18.2 5.8 12.4 214% Dilut
Slide 5: Sales by Territory
SALES BY TERRITORY US$ MILLIONS H1 2021 H1 2020 CHANGE $ CHANGE % North America $ 50.9 $ 27.8 $ 23.1 83% Europe 6.4 4.1 2.3 56% China 1.7 1.8 (0.1) -6% Middle East 0.2 0.2 - - Latin America 0.8 0.2 0.6 300% Rest of World (1) 4.4 1.2 3.2 266% TOTAL $ 64.4 $ 35.3 $ 29.1 82% Notes: 1. ROW includes Aust
Slide 6: Sales by Product
SALES BY PRODUCT US$ MILLIONS H1 2021 H1 2020 CHANGE $ CHANGE % Boomed screeds(1) $ 32.1 $ 11.6 $ 20.5 177% Ride-on screeds(2) 9.9 6.7 3.2 48% Remanufactured machines 2.0 2.7 (0.7) -26% 3-D Profiler System® 4.6 3.5 1.1 31% Somero Line Dragon® 2.3 1.7 0.6 35% SkyScreed® 0.2 0.3 (0.1) -33% Other(3) 13
Slide 7: Operating Results
OPERATING RESULTS US$ MILLIONS H1 2021 H1 2020 Revenue $ 64.4 $ 35.3 Commentary: Gross profit 37.7 19.3 • Gross margin of 58.6% up from Operating expenses: 54.7% in H1 ‘20 due to efficiency from higher volume, price Selling, marketing & customer support 6.0 5.2 increases and favorable product mix (l
Slide 8: Financial Position
FINANCIAL POSITION JUNE 30, DECEMBER US$ MILLIONS 2021 31, 2020 Commentary: Cash $ 32.8 $ 35.4 • Cash decreased US$ 2.6m reflecting the US$ 17.4m April ‘21 Accounts receivable, net 9.4 6.4 dividend payment largely offset by strong operating cash flows Inventory 14.3 11.1 Prepaid & other 2.6 1.7 • Ac
Slide 9: Cash Flows
CASH FLOWS US$ MILLIONS H1 2021 H1 2020 Commentary : Net income $ 18.3 $ 5.8 • Operating cash flow increased Adjustments to reconcile to cash provided by US$ 9.0m due to significantly 0.4 1.1 higher profit in the period, partially operating activities offset by net working capital Working capital ch
Slide 10: Strategy Update & Outlook
STRATEGY UPDATE & OUTLOOK
Slide 11: Global Growth Opportunity
GLOBAL GROWTH OPPORTUNITY OUR VISION OUR MISSION For our innovative technology to be used wherever To deliver world-class products and services because horizontal concrete slabs are placed, a vast opportunity we’re passionate about our customers’ success and we consisting of numerous unique applicat
Slide 12: Recent New Products
RECENT NEW PRODUCTS The Somero SkyStrip®, introduced in 2021, replaces manual labor, reduces material damage and improves safety in the process to strip plywood sheets used to shore concrete slabs in structural high-rise buildings The Somero Broom+CureTM, introduced in 2020, provides an efficient
Slide 13: Products & Applications
PRODUCTS & APPLICATIONS RELEASE PRODUCT APPLICATIONS MARKETS BOOMED SCREEDS: 25,000-50,000+ ft2 2014 S-22EZ placements warehouses, SLAB ON 2012 S-15R manufacturing GRADE assembly plants, 2015 S-10A agricultural buildings 2020 SRS-4 S-22EZ S-15R SRS-4 RIDE-ON SCREEDS: 5,000-30,000 ft2 placements SLAB
Slide 14: International Growth
INTERNATIONAL GROWTH In October 2020, Somero established a Melbourne-based sales and support team to cover Australia/New Zealand The team grew H1 ‘21 sales to US$ 2.7m (H1 ‘20: US$ 0.9m) with a focus on introducing and promoting new products to the region Somero is exploring the international oppo
Slide 15: ESG – The Sustainability Journey
ESG – THE SUSTAINIBILITY JOURNEY OUR GOAL OUR APPROACH Ensuring sustainability by striking the right balance Developing a comprehensive ESG strategy that between shareholder expectations and the needs includes regular engagement with stakeholders on and concerns of our employees and customers, the m
Slide 16: 2021 Outlook
2021 OUTLOOK • Confident in active US non-residential construction market & momentum carried into H2 ‘21 • Pleased with health of European non-residential construction market supported by reported customer backlogs, and the opportunity from new products • Encouraged by traction gained in Australia w
Slide 17: Business Model
BUSINESS a | | MODEL = ——
Slide 18: Our Mission
OUR MISSION WHY? HOW? WHAT? It all starts with “Why?” For every How we pursue our mission makes us We provide equipment with unsurpassed Somero® employee the answer is clear. unique. quality and performance supported by We work hard to deliver world-class unparalleled global service, technical Somer
Slide 19: Our Model
OUR MODEL WHAT WE DO WHAT MAKES US DIFFERENT Somero’s laser-guided technology and wide-placement INNOVATIVE PRODUCT INDUSTRY EXPERTISE, methods have been specified for use in a wide range LEADERSHIP TRAINING AND SUPPORT of construction projects. • Pioneered Laser • Proven commitment to exceptional •
Slide 20: The Training & Expertise Advantage
THE TRAINING & EXPERTISE ADVANTAGE Somero does more than sell equipment – Somero provides access to world class training & expertise that helps customers build more profitable businesses. In-Person. The Somero On-demand. Somero’s Virtual. Somero’s virtual Concrete Institute in Fort Learning Manageme
Slide 21: Appendix
APPENDIX
Slide 22: Historical Results
HISTORICAL RESULTS YEARS ENDED DECEMBER 31, US$ Millions (except per share data) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Revenue 66.4 51.9 24.2 21.0 21.9 32.2 45.1 59.3 70.2 79.4 85.6 94.0 89.3 88.6 Revenue growth 19% -22% -53% -13% 4% 47% 40% 32% 18% 13% 8% 10% -5% -1%
Slide 23: Thank You
THANK YOU