Harvia Oyj · OMXHEX:HARVIA
Harvia Oyj — Q3 2018 Earnings Presentation
20 slides from Harvia Oyj's earnings presentation, Nov 14, 2018
Slide 1: Harvia Plc Interim report January-September 2018
Harvia Plc Interim report January-September 2018 14 November 2018 | Tapio Pajuharju, CEO | Ari Vesterinen, CFO
Slide 2: Content
Content 1. January–September 2018 in brief 2. Harvia’s strategy 3. Financials Tapio Pajuharju Ari Vesterinen CEO CFO 2
Slide 3: Harvia's Q3 2018 – steady development continued in the third quarter
Harvia’s Q3 2018 – steady development continued in the third quarter • Revenue grew by 6.1% from the corresponding period and was EUR 14.0 million (EUR 13.2 million). At comparable exchange rates, revenue grew by 7.9% to EUR 14.2 million. • Adjusted operating profit was EUR 2.3 million (EUR 2.3 mill
Slide 4: Harvia's January-September 2018 – revenue grew by 4%
Harvia’s January-September 2018 – revenue grew by 4% • Revenue grew by 4.0% from the corresponding period and was EUR 45.7 million (EUR 44.0 million). At comparable exchange rates, revenue grew by 5.5% to EUR 46.4 million. • Adjusted operating profit was EUR 8.0 million, making up 17.5% of the reven
Slide 5: Strategic cornerstones
Strategic cornerstones • Geographical expansion progressed as planned during the review period ⎯ In the EU countries, distribution has been strengthened as planned ⎯ In Russia, the expansion of distribution in regional cities continued as well as the improvement of product range ⎯ In Sweden, distrib
Slide 6: Revenue increased, adjusted operating profit at the previous year's level
Revenue increased, adjusted operating profit at the previous year’s level Revenue Adjusted operating profit EUR million EUR million 18 3,5 16.4 16.5 16.1 3.2 3.2 16 15.3 14.4 14.0 3 2.8 14 13.2 2.4 2,5 2.3 2.3 2.3 12 10 2 8 1,5 6 1 4 0,5 2 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2017 2018 2017 2018 • Revenue in
Slide 7: Jan–Sep: geographical split almost the same
Jan–Sep: geographical split almost the same Revenue by market area, %* Revenue by product group, EUR million* 6% 6% 15% (6%) (6%) (14%) 8% (7%) 5% 39% 9% (39%) (5%) (9%) 9% (10%) 59% (60%) 10% (11%) 12% (11%) 23% (22%) Finland Other EU countries Germany Russia Sauna heaters Sauna rooms Other countri
Slide 8: Geographical split almost the same, sales of sauna heaters and sauna rooms developed well in Q3
Geographical split almost the same, sales of sauna heaters and sauna rooms developed well in Q3 Revenue by market area, %* Revenue by product group, EUR million* 6% 14% 6% (6%) (7%) (15%) 8% 4% (7%) 38% (4%) (38%) 9% 9% (10%) (7%) 59% (59%) 12% 14% (13%) (13%) 22% (22%) Finland Other EU countries Sa
Slide 9: Harvia's diverse product offering covers all three sauna types
Harvia’s diverse product offering covers all three sauna types and meets the needs of both private and professional customers 9
Slide 10: Increasing the value of the average purchase
Increasing the value of the average purchase Harvia aims to be the leading player in the Geographical expansion sauna and spa market Productivity improvement 10
Slide 11: Increasing the value of the average purchase continued in Q3
Increasing the value of the average purchase continued in Q3 • The implementation of Harvia’s “one-stop shop” strategy in the sauna and spa business continued as planned • The favourable sales development of sauna rooms, sauna heaters and spare parts increased the value of the average purchase • The
Slide 12: Financials
Financials Ari Vesterinen, CFO 12
Slide 13: Key figures
Key figures EUR million 7-9/18 7-9/17 Change, 1-9/18 1-9/17 Change, 2017 % % Revenue 14.0 13.2 6.1% 45.7 44.0 4.0% 60.1 Adjusted EBITDA* 2.9 2.8 2.4% 9.6 9.3 3.2% 12.6 % of revenue 20.7% 21.4% 21.0% 21.1% 21.0 % Adjusted operating profit** 2.3 2.3 0,0% 8.0 7.9 1.8% 10.7 % of revenue 16.7% 17.8% 17.5
Slide 14: Net finance costs decreased significantly
Net finance costs decreased significantly Net debt (EUR million) and leverage (%) Net finance costs, EUR million EUR million % EUR million Restructuring costs from bank loans and interest rate swaps 2,5 80 7 (EUR -0.8 million) 70 6 2 60 5 50 1,5 4 40 3 1 30 2 20 0,5 10 1 0 0 0 1Q17 2Q17 3Q17 4Q17 1Q
Slide 15: Investments
Investments Investments in tangible and intangible assets, EUR million EUR million 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 • At the Muurame factory, a new layout for warehousing and shipping was carried out and machine purchases were made •
Slide 16: Harvia's ten largest shareholders, September 2018
Harvia’s ten largest shareholders, 30 September 2018 Number of shares % of shares 1. CAPMAN BUYOUT X FUND A L.P. 3,247,590 17.37 2. CAPMAN BUYOUT X FUND B KY 1,358,089 7.27 3. OP-FINLAND SMALL FIRMS FUND 575,000 3.08 4. ODIN FINLAND 475,000 2.54 5. TIIPETI OY – PERTTI HARVIA 429,290 2.30 6. ILMARINE
Slide 17: The distribution of Harvia's shareholders by segment, September 2018
The distribution of Harvia’s shareholders by segment, 30 September 2018 11 % 11 % 38 % 15 % 25 % Nominee registered and outside Finland CapMan funds Banks and insurance companies Private corporations Households 17
Slide 18: Dividend policy
Dividend policy Harvia targets a regularly increasing dividend with a bi-annual dividend payout of at least 60 percent of net income, in total The shareholders of the company unanimously resolved on 2 March 2018 to authorise the Board of Directors of the company to decide on distribution of dividend
Slide 19: Financial targets and outlook
Financial targets and outlook Growth: Annual revenue growth above five per cent on average Profitability: Adjusted operating profit margin of 20 per cent(1 Leverage ratio: Net debt per adjusted EBITDA in the range of 1.5x–2.5x(2 Harvia does not publish short-term outlook. 1) Operating profit before
Slide 20: Thank you!
Thank you! 20