Elica S.p.a. · MIL:ELC
Elica — Q3 2023 Earnings Presentation
34 slides from Elica's earnings presentation, Oct 26, 2023
Slide 1: Q3 2023 Results
Q3 2023 Results ANALYSTS PRESENTATION THURSDAY OCTOBER 26TH, 2023
Slide 2: Agenda
AGENDA 1 Q3 HIGHLIGHTS 2 INDUSTRY TREND 3 SALES DYNAMICS ECONOMICS 4 & FINANCIALS 5 CLOSING REMARKS 2
Slide 3: Q3 2023 Results Highlights
Q3 2023 RESULTS HIGHLIGHTS ▪ Persisting weak market demand in Cooking business. NET SALES YoY Change Significant Heating industry slowdown since June, 105,6 M€ -23,2 M€ -18,0% negatively impacting Motor division. (organic: -15,8%) ▪ Margin fully protected despite significant volume EBIT ADJ YoY Chan
Slide 4: 9M 2023 Results Highlights
9M 2023 RESULTS HIGHLIGHTS 144 146 129 130 129 160 126 140 120 106 100 80 NET SALES YoY Change 60 40 20 360,0 M€ -58,9 M€ -14,0% 0 (organic: -13,3%) Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 6,2% 6,5% 20 5,5% 5,7% 5,2% 6,0% 7,0% 5,0% 6,0% EBIT ADJ YoY Change 10 9,0 9,6 7,1 7,4 6,7 7,5 5,2 5,0
Slide 5: Industry Trend
INDUSTRY ELICA TREND PROCESS TURNAROUND 5
Slide 6: EMEA - Cooker Hoods Industry Unit Shipments
EMEA - COOKER HOODS INDUSTRY UNIT SHIPMENTS Volume Data Change % vs LY Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 0,0% -2,0% -4,0% -3% -6,0% -8,0% -7% EMEA* -10,0% -10% -10% -12,0% -12% -12% -12% -14,0% * Excluding Russia: SOURCE: ELICA GROUP ESTIMATES 6
Slide 7: North America - Cooker Hoods Industry Unit Shipments
NORTH AMERICA - COOKER HOODS INDUSTRY UNIT SHIPMENTS Volume Data Change % vs LY Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 6,0% 4% 4,0% 2,0% 0,0% COOKING PRODUCTS* -2,0% -1% -4,0% -3% -6,0% -8,0% -7% -10,0% -8% -8% -12,0% -11% 0,0% VENTILATION -20,0% PRODUCTS** -19% -19% -40,0% -34% * S
Slide 8: Heating Sector Market Trend - Boilers
HEATING SECTOR MARKET TREND - BOILERS Germany Italy Netherlands UK France Spain -30% Thousand pieces 1400 1200 1000 800 600 400 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 '20 '20 '20 '20 '21 '21 '21 '21 '22 '22 '22 '22 '23 '23 Visibility in the Heating segment remains limited due to the change in inc
Slide 9: Sales Dynamic
SALES DYNAMIC 9
Slide 10: Sales Key Drivers
SALES KEY DRIVERS Q3 9M -23,2 M€ -18,0% -58,9 M€ -14,0% 128,8 -20,3 419,0 -55,9 -3,0 -2,9 360,2 105,6 -0,7% -15,8% -2,2% -13,3% M€ M€ Q3 2022 Organic Currency Q3 2023 Organic Currency 9M 2023 9M 2022 Net Sales Net Sales Net Sales Net Sales ▪ Cooking trend still affected by volumes decline, as a resu
Slide 11: Sales Drivers & Regional Overview
SALES DRIVERS & REGIONAL OVERVIEW Q3 9M -18,0% -14,0% 419,0 -12,4 128,8 -5,6 -15,6 -40,9 -2,0 105,6 -5,7 360,2 M€ M€ Q3 2022 Americas Emea Asia Q3 2023 9M 2022 Americas Emea Asia 9M 2023 Net Sales Net Sales Net Sales Net Sales Q3 2022 21,4 98,6 8,9 128,8 9M 2022 63,0 327,7 28,3 419,0 Currency -0,9 -
Slide 12: Sales by Business
SALES BY BUSINESS Q3 9M -18,0% -14,0% 128,8 -9,7 419,0 -11,5 -47,4 -13,5 105,6 360,2 M€ M€ Q3 2022 Motors Cooking Q3 2023 9M 2022 Motors Cooking 9M 2023 Net Sales Net Sales Net Sales Net Sales Q3 2022 31,5 97,3 128,8 9M 2022 95,2 323,8 419,0 Currency +0,1 -2,9 -2,9 Currency +0,1 -3,1 -3,0 +0,2% -3,0
Slide 13: Cooking Sales by Brand
COOKING SALES BY BRAND Q3 9M -13,9% -14,6% 97,3 -7,6 323,8 -34,5 -12,9 -5,9 83,8 276,4 M€ M€ Q3 2022 OEM OWN BRAND Q3 2023 9M 2022 OEM OWN BRAND 9M 2023 Net Sales Net Sales Net Sales Net Sales Q3 2022 41,4 55,9 97,3 9M 2022 142,1 181,6 323,8 Currency -0,6 -2,3 -2,9 Currency -0,1 -3,0 -3,1 -1,4% -4,2
Slide 14: Economics & Financials
ECONOMICS & FINANCIALS INDUSTRY TREND & MKT SHARE EVOLUTION 14
Slide 15: Margins & Key Result Drivers
MARGINS & KEY RESULT DRIVERS Q3 9M CHANGES vs. PRIOR YEAR €M 2023 2022 % VAR 2023 2022 % VAR Q3 9M NET SALES 105,5 128,8 (18,0)% 360,2 419,0 (14,0)% VOLUME --- --- ADJ EBITDA 11,4 12,8 (11,3)% 37,5 43,3 (13,4)% PRICE / MIX - - % NET SALES 10,8% 10,0% 80 bps 10,4% 10,3% 10 bps RAW MATERIAL INFLATION
Slide 16: 9M 2023 – Net Financial Position
9M 2023 – NET FINANCIAL POSITION €M 9M 2023 9M 2022 VAR COMMENTS OPENING NFP 43,9 35,1 (8,8) IFRS16 EFFECT 14,0 12,4 1,6 ▪ Leverage in line with LY despite: OPENING NFP NET of IFR16 29,9 22,7 (7,2) ▪ EU Manufacturing footprint relocation ~2,7M€ OPERATING CASH FLOW 22,8 30,6 (7,8) ▪ M&A (Last tranche
Slide 17: Well Positioned to Achieve Our Mid Term Targets
WELL POSITIONED TO ACHIEVE OUR MID TERM TARGETS LHOV Design Fabrizio Crisà DESIGN for LOVE
Slide 18: Motor Division: Heat Pumps Growth Opportunity
MOTOR DIVISION: HEAT PUMPS GROWTH OPPORTUNITY ▪ HISTORICAL DATA AND FUTURE PROJECTIONS CONFIRMING THE HUGE POTENTIAL 2014 - 2050 MARKET PROJECTIONS* ▪ WE’RE READY TO PRODUCE FROM DECEMBER ‘23 OUR FANS FOR HEAT PUMPS RADIAL SOLUTIONS AXIAL SOUTIONS High performances and efficiency Fluid dynamics opti
Slide 19: Cooking: From Core Business to a Complete Range Offer
COOKING: FROM CORE BUSINESS TO A COMPLETE RANGE OFFER CORE BUSINESS NEW BUSINESS OPPORTUNITIES Cooker hoods Aspiration Hobs HOVs Built-in complements Keep the leadership and the Growth in market share A breakthrough innovation Enlarging the offer in built-in unique selling proposition thanks to a Wi
Slide 20: Induction Growth Opportunities
INDUCTION GROWTH OPPORTUNITIES COOKTOPS UNITS TREND 34,6% 29,8% 36,2% 34,0% 30,1% 33,2% 57,2% 58,1% 58,5% 57,8% 59,6% 57,2% NORTH AMERICA 12,7% 6,6% 7,2% 8,3% 8,2% 10,6% 2017 2018 2019 2020 2021 2022 *Source AHAM Induction Gas Electric HOBS UNITS TREND 36,2% 34,6% 33,2% 34,0% 29,8% 27,9% 33,4% 32,9%
Slide 21: Boots on Ground
“BOOTS ON GROUND” NEW DISTRIBUTOR IN NORTH AMERICA in PARTNERSHIP WITH ILVE Introducing SEA, Southeast Appliance - Your Trusted Appliances Distributor! We are thrilled to announce the launch of SEA, Southeast Appliance. We are on a mission to bring quality, innovation, and reliability to every house
Slide 22: Closing Remarks
CLOSING REMARKS 22
Slide 23: Elica Keeps Boosting on Its Brand Awareness and Uniqueness
ELICA KEEPS BOOSTING ON ITS BRAND AWARENESS AND UNIQUENESS READY FOR THE SECOND WAVE OF THE NIKOLATESLA UNPLUGGED CAMPAIGN 23
Slide 24: The Cross-Channel Campaign Will Be on Air for Two Months
THE CROSS-CHANNEL CAMPAIGN WILL BE ON AIR FOR TWO MONTHS OCTOBER NOVEMBER DECEMBER TV 15/10 - 4/11 12 - 25/11 200+ SPOT PRESS 15/10 – 17/12 40+ PRESS RELEASES DIGITAL 16/10 – 11/12 + 60Mio USERS REACHED 24
Slide 25: 25
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Slide 26: Closing Remarks
CLOSING REMARKS 2023 YTD Takeaways : ▪ Persisting weak market demand in Cooking business and significant Heating industry slowdown in Motor division, negatively impacting revenues. ▪ Margins fully protected thanks to industrial footprint flexibility and strong cost control. Solid fundamentals, low c
Slide 27: Annex: Financial Highlights
ANNEX: FINANCIAL HIGHLIGHTS 27
Slide 28: Q3 Consolidated Income Statement
Q3 CONSOLIDATED INCOME STATEMENT (*) EPS is calculated by dividing the Net Result pertaining to the Group by the number of ordinary shares outstanding, excluding treasury shares at the same data. 28
Slide 29: 9M Consolidated Income Statement
9M CONSOLIDATED INCOME STATEMENT (*) EPS is calculated by dividing the Net Result pertaining to the Group by the number of ordinary shares outstanding, excluding treasury shares at the same data. 29
Slide 30: Net Working Capital
NET WORKING CAPITAL 2 elica 0 EEE GES a Trade receivables 30.8 48.5 (17.7) % on annualized sales 6.4% 8.8% (240) bps Inventories 109.1 101.5 7.6 % on annualized sales 22.7% 18.5% 420 bps Trade payables (121.2) (139.6) 18.3 % on annualized sales (25.2)% (25.4)% 20 bps Managerial Working Capital 18.6
Slide 31: Consolidated Cash Flow
CONSOLIDATED CASH FLOW €M 9M 23 9M 22 Operating Cash Flow 15.7 14.4 Capex (*) (11.5) (12.2) Cash Flow from Financial Activities (20.8) (19.2) A Net Financial Position (16.5) (17.0) 2 elica 31
Slide 32: Consolidated B/S
CONSOLIDATED B/S (*) Including IFRS 16 effect 32
Slide 33: Focus: NRI & Minorities
FOCUS: NRI & MINORITIES RESTRUCTURING COSTS & NRI MINORITIES €M 2023 2022 €M 2023 2022 MINORTY MINORTY Q3 9M Q3 9M SHARES Q3 9M SHARES Q3 9M PATENTS AGREEMENT --- --- --- -3,2 ARIAFINA 49,0% 0,4 1,1 49,0% 0,6 1,2 RESTRUCTURING SG&A 0,3 0,9 0,1 1,0 TOT MINORITIES 0,4 1,1 0,6 1,2 INDUSTRIAL PLAN 0,0 0
Slide 34: XN
XN