Dometic Group Ab · OMXSTO:DOM
Dometic Group Ab — Q3 2017 Earnings Presentation
38 slides from Dometic Group Ab's earnings presentation, Oct 24, 2017
Slide 1: Interim Presentation Q3 2017
INTERIM PRESENTATION Q3 2017 OCTOBER 24, 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: Q3 2017 Highlights
Q3 2017 HIGHLIGHTS • Sales growth of 11% in constant currency, with double-digit growth in all regions. OEM, 60% • EBIT growth 18% YoY in constant currency AM, 40% • Improved EBIT margins in 7 out of 8 businesses. • Americas: 30% RVOEM sales growth. Improved profitability. • EMEA: Strong OEM/AM mix
Slide 5: Q3 2017 Sales, EBIT and Operating Cash Flow
Q3 2017 Sales (MSEK) EBIT bef i.a.c (MSEK) Operating Cash Flow (MSEK) 8% (11% comparable currency) Actual: 13% (18% comparable currency) 3,399 482 3,142 667 426 535 Q3 2016 Q3 2017 Q3 2016 Q3 2017 Q3 2016 Q3 2017 5
Slide 6: US RV Market – OEM Shipments
US RV MARKET – OEM SHIPMENTS ROLLING TWELVE MONTHS (000S UNITS) 500 • Rolling three months 450 August 2017: 125,400 units (104,400) +20% 400 • YTD August: 350 334,400 units (290,600) +15% 300 • LTM August: 250 474,500 units (407,700) +16% 200 150 100 Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec J
Slide 7: Europe RV Market Registrations
EUROPE RV MARKET REGISTRATIONS ROLLING TWELVE MONTHS (000S UNITS) • Rolling three months 70 September 2017: 25,400 units (21,700) +17%* 60 • LTM September 2017: 50 114,300 units (103,400) +10%* 40 +14% 60 30 50 40 +6% 20 30 20 +11% +9% +15% 10 10 0 0 DE FR SE NL IT Jun Dec Jun Dec Jun Dec Jun Dec Ju
Slide 8: Europe Trucks (Above 16 Tons) Registrations
EUROPE TRUCKS (ABOVE 16 TONS) REGISTRATIONS ROLLING THREE MONTHS (000S UNITS) 70 • Rolling three months 65 August 2017: 60 56,100 units (56,100) +0% 55 50 • YTD August 2017: 45 159,700 units (155,400) +3% 40 • LTM August 2017: 35 242,200 units (234,100) +3% 30 25 20 15 10 Jun Dec Jun Dec Jun Dec Jun
Slide 9: US Power Boat Sales
US POWER BOAT SALES ROLLING TWELVE MONTHS (000S UNITS) LTM September 2017: 3.5% Power boat category (%) 15 29 10 17 5 5 6 0 -6 -5 -10 -9 -13 -11 -10 -24 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 Sep 10 10 11 11
Slide 10: Americas
AMERICAS Breakdown of sales Q3 Highlights By sales channel ▪ Organic sales growth 15%. ▪ EBIT margin increase to 16.5% (14.6). Excl. class action legal costs EBIT margin of 17.2%. ▪ Strong RVOEM sales of 30% organic growth. Improved market position. ▪ Continued efficiencies in logistics and distribu
Slide 11: Dometic Mobile Cooling in US
DOMETIC MOBILE COOLING IN US US mobile cooling sales per Q (kSEK) ▪ Strong organic growth in our 20 000 compressor fridge / freezer sales. 18 000 ▪ New product launches, expanding the 16 000 14 000 CFX range. 12 000 ▪ CFX75DZW 10 000 ▪ CFX100W 8 000 6 000 ▪ Strengthening of our regional team to 4 00
Slide 12: EMEA
EMEA Breakdown of sales Q3 Highlights By sales channel ▪ Organic sales growth of 4%. ▪ EBIT margin of 10.4% (10.8), negatively affected by mix, commodities and weather. ▪ Strong growth in all OEM businesses. ▪ Soft aftermarket mainly due to lower sales of ACS and unfavorable weather. ▪ Profitability
Slide 13: Dometic Control Panel
DOMETIC CONTROL PANEL ▪ Launched at the Düsseldorf trade fair. ▪ Smart control system that turns motorhomes and caravans into mobile smart homes. ▪ Air conditioning, heating, lights and many other comfort functions can be controlled and monitored via a single device. ▪ Remote access by smart phone o
Slide 14: APAC
APAC Breakdown of sales Q3 Highlights By sales channel ▪ Organic sales growth 15%. ▪ EBIT margin of 17.3% (18.5). Dilutive effect from product mix and currency. ▪ Outgrowing the Australian RV market. ▪ Strong sales development in Japan (+21%) and China (+33%). ▪ Aftermarket growth of 14%, driven by
Slide 15: Dometic Slide-Out Kitchen
DOMETIC SLIDE-OUT KITCHEN ▪ The Dometic Slide Out Kitchen offers a number of different functions for those living mobile; it functions as a 3-burner cooktop, BBQ, sink, and bench top for serving. ▪ Designed to slide out of the side of RVs, the Dometic Slide Out Kitchen saves valuable space whilst ma
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) 14,000 1,800 13,500 1,700 13,000 1,600 12,500 12,000 1,500 11,500 1,400 0 0 Sep Dec Mar Jun Sep Dec Mar Jun Sep Sep Dec Mar Jun Sep Dec Mar Jun Sep 2015 2016 2017 2015 2016 2017 EBIT bef. i.a.c (%) Operating cash flow (SEKm) 13.5 2,000 1,500 1
Slide 18: Business Area Development
BUSINESS AREA DEVELOPMENT RV +14% CPV +2% (11% CC) (+0% CC) 9,000 2,000 8,500 1,900 8,000 7,500 1,800 0 1,700 Sep Dec Mar Jun Sep Dec Mar Jun Sep Sep Dec Mar Jun Sep Dec Mar Jun Sep 2015 2016 2017 2015 2016 2017 Marine +22% Other +21% 1,350 (19% CC) 1,500 (18% CC) 1,400 1,200 1,300 1,050 1,200 900 0
Slide 19: Key Ratios
KEY RATIOS Q3 Q3 YTD YTD LTM FY SEKm 2017 2016 2017 2016 2017 2016 Sales Net sales 3,399 3,142 10,791 9,602 13,577 12,388 Growth, % 8.2 8.9 12.4 7.1 12.0 7.9 Organic growth, % 10.7 7.6 10.2 7.2 9.2 6.9 Profitability EBIT before i.a.c. % 14.2 13.6 14.4 14.7 13.0 13.1 EBITDA before i.a.c. % 16.5 15.9
Slide 20: Dometic Group Net Sales Bridge Q3
DOMETIC GROUP NET SALES BRIDGE Q3 (SEKm) +8% Translation FX details Share of 3,399 Net Sales impact 0% USD -73 82% EUR -2 3% 3,142 AUD -2 2% HKD -3 3% -3% 11% GBP -6 7% CNY -1 1% Other -3 3% Total -89 Q3 2016 Translation FX Organic growth Net acq. Q3 2017 20 and divest.
Slide 21: Regional Results
REGIONAL RESULTS Q3 Q3 Change (%) YTD YTD Change (%) LTM FY SEK million 2017 2016 Rep. Adj.⁽¹⁾ 2017 2016 Rep. Adj.⁽¹⁾ 2017 2016 Americas 1,620 1,526 6% 11% 4,817 4,493 7% 5% 6,073 5,749 EMEA 1,353 1,237 9% 10% 4,714 4,011 18% 16% 5,796 5,093 Asia Pacific 426 379 12% 15% 1,260 1,098 15% 11% 1,708 1,5
Slide 22: Group P&L Q3
GROUP P&L Q3 Q3 Q3 SEK million 2017 2016 Net sales 3,399 3,142 Cost of goods sold -2,302 -2,099 Gross Profit 1,097 1,043 GP% 32.3% 33.2% Sales expenses -421 -440 Administrative expenses -163 -151 Total SG&A -584 -591 SG&A% -17.2% -18.8% Other operating income and expenses -14 -9 Items affecting comp
Slide 23: Earnings per Share
EARNINGS PER SHARE Q3 2017 Q3 2016 SEKm, SEK Q3 2017 Q3 2016 EPS EPS Net sales 3,399 3,142 Operating profit (before i.a.c) 482 426 1.63 1.44 Finance net -56 -37 -0.19 -0.13 Tax -144 -78 -0.49 -0.26 Result for the period 448 311 1.51 1.05 No. of shares, million 295.8 295.8 Earnings per share, SEK 1.5
Slide 24: CAPEX & PMI
CAPEX & PMI (SEKm, % OF NET SALES) CAPEX (SEKm, % of net sales) • Q3 2017 CAPEX: 100 4% 2.4% of net sales. 2.4% 2.4% 80 2.1% 1.8% (1.9% in 2016) 2.0% 1.8% 1.9% 1.8% 3% 60 1.3% 2% 40 71 83 58 60 68 63 20 52 53 44 1% 0 0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2015 2015 2016 2016 2016 2016 2017 2017 2017 (SEKm, %
Slide 25: Working Capital Development
WORKING CAPITAL DEVELOPMENT 24.5% 24.5% 24.3% 24.3% 23.2% 22.8% 22.7% 22.6% 22.3% 22.0% 21.9% 22.5% 21.3% 21.5% 21.8% 430 253 219 200 183 126 -24 -117 -141 -183 -225 -299 -293 -524 -546 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 2016 2017 25 Average core WC / LTM sales Change in core WC
Slide 26: Working Capital
WORKING CAPITAL (SEKm) 3,239 3,304 3,057 2,879 2,655 2,697 2,785 2,704 2,488 2,637 1,699 1,915 1,411 1,541 1,041 -1,020 -1,024 -1,244 -1,187 -1,308 September December March June September 2016 2016 2017 2017 2017 26 Inventory Accounts Receivables Accounts Payables
Slide 27: Cash Flow
CASH FLOW (SEKm) % 229% 700 120% 250 78% 600 136% 147% 107% 123% 200 78% 500 89% 150 73% 61% 400 373 100 667 300 623 50 535 570 511 200 416 388 0 337 342 352 287 8% 100 -50 -18% -22% -9% 0 37 -100 -53 -44 -102 -100 -150 -200 -200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 2016 2017 27 Ca
Slide 28: 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 1.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2016 2016 2016 2017 2017 2017 28
Slide 29: Items Affecting Fourth Quarter 2017
ITEMS AFFECTING FOURTH QUARTER 2017 ▪ Q4: Class action legal fees: Approximately SEK 15 million (in administrative expenses, affects EBIT before i.a.c). Depending on level of activity. ▪ Q4: Cost for profit improvement program in EMEA of 5-6 MEUR (affects EBIT after i.a.c). 29
Slide 30: Update Regarding US Class Action Complaints
UPDATE REGARDING US CLASS ACTION COMPLAINTS ▪ The proceedings regarding the class action complaints are pending. ▪ We are negotiating with our insurance company the coverage for incurred and future defense costs related thereto. ▪ We remain firm in our position that the allegations in the cases are
Slide 31: Financial Targets
FINANCIAL TARGETS Mid/long term FY 2014 FY 2015 FY 2016 YTD 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 1.3x 2.0x Dividend Policy - No dividend 40% - 40 % 1Organic sales growth 2EBIT before I.A.C. 31
Slide 32: Summary Q3
SUMMARY Q3 ▪ Strong sales growth, primarily driven by high demand in RVOEM. ▪ Improved profitability. ▪ Strong cash generation. ▪ Good market share gains in the US. ▪ Profitability program launched in EMEA. ▪ Continued focus on product development, cost control and sales initiatives. Bild på kamera
Slide 33: Mobile living made easy
33 Mobile living made easy. “> DOMETIC
Slide 34: Appendix
APPENDIX 34 Mobile living made easy. “> DOMETIC
Slide 35: Appendix A: Quarterly Summary Key Financials
APPENDIX A Quarterly Summary Key Financials Q3 Q3 YTD YTD LTM FY SEK million 2017 2016 2017 2016 2017 2016 Net sales 3,399 3,142 10,791 9,602 13,577 12,388 EBITDA 724 501 1,948 1,620 2,199 1,871 % of net sales 21.3% 16.0% 18.1% 16.9% 16.2% 15.1% Operating profit (EBIT) 648 426 1,715 1,400 1,888 1,57
Slide 36: Appendix B: Group P&L
APPENDIX B Group P&L Q3 Q3 YTD YTD FY SEK million 2017 2016 2017 2016 2016 Net sales 3,399 3,142 10,791 9,602 12,388 Cost of goods sold -2,302 -2,099 -7,298 -6,496 -8,463 Gross Profit 1,097 1,043 3,493 3,106 3,925 Sales expenses -421 -440 -1,330 -1,230 -1,651 Administrative expenses -163 -151 -522 -
Slide 37: 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 38: Mobile living made easy
Mobile living made easy. “> DOMETIC