Dometic Group Ab · OMXSTO:DOM
Dometic Group Ab — Merger or Acquisition (September 2021)
13 slides from Dometic Group Ab's merger presentation, Sep 17, 2021
Slide 1: Dometic to Acquire Igloo
DOMETIC TO ACQUIRE IGLOO Presentation September 17, 2021 JUAN VARGUES PRESIDENT & CEO STEFAN FRISTEDT CFO
Slide 2: Disclaimer
DISCLAIMER SOME STATEMENTS HEREIN ARE FORWARD-LOOKING AND THE ACTUAL OUTCOME COULD BE MATERIALLY DIFFERENT. IN ADDITION TO THE FACTORS EXPLICITLY COMMENTED UPON, THE ACTUAL OUTCOME COULD BE MATERIALLY AFFECTED BY OTHER FACTORS, (A) CHANGES IN ECONOMIC, MARKET AND COMPETITIVE CONDITIONS, (B) SUCCESS
Slide 3: Transaction Highlights
TRANSACTION HIGHLIGHTS A TRANSFORMATIVE ACQUISITION POSITIONING DOMETIC AS THE LEADING VEHICLE BASED OUTDOOR COMPANY IN THE US ▪ Dometic to acquire Igloo, based in Texas, USA, and one of the world’s leading companies in the market for passive cooling boxes and drinkware ▪ Creates a foundation for co
Slide 4: Igloo Assets
IGLOO ASSETS AN ICONIC BRAND, FOUNDED IN 1947 ▪ 1,100 employees with strong experience from consumer business ▪ #1 market position and #1 brand in the US – Igloo brand will remain ▪ Products in 90,000 retail stores ▪ Growing B2C sales channel ▪ Highly efficient manufacturing plant in Texas – provide
Slide 5: An Attractive Market
AN ATTRACTIVE MARKET A PROFITABLE AND GROWING MARKET USD 8 billion ▪ The growing outdoor industry shows increasing Global market demand for mobile cooling boxes and drinkware for cooling ▪ There is a rising demand for food & beverage cold boxes and storage drinkware ▪ Introduction of innovative, des
Slide 6: The Acquisition Supports Group Strategy
THE ACQUISITION SUPPORTS GROUP STRATEGY
Slide 7: More Favorable Business Mix
MORE FAVORABLE BUSINESS MIX INCREASED SHARE OF LOW-TICKET DISCRETIONARY SPEND WHERE VOLATILITY IS LOWER Dometic 2018 Dometic 2021 Dometic 2021 Q2 LTM Q2 LTM Q2 LTM including Igloo 10% 11% 25% 44% 29% 36% 53% 61% 31% OEM Service & Aftermarket Distribution OEM Service & Aftermarket Distribution OEM Se
Slide 8: Transaction Overview
TRANSACTION OVERVIEW THE ACQUISITION IS EXPECTED TO BE ACCRETIVE TO EPS IN 2022 ▪ Dometic will acquire Igloo for USD 677 million, on a cash and debt free basis ▪ In addition, an earn-out element to a maximum of USD 223 million ▪ Expected to add 1.3x on Net debt / Leverage ratio ▪ Net sales of Igloo
Slide 9: Synergies
SYNERGIES EXPECTED TO GENERATE SIGNIFICANT SALES GROWTH GLOBALLY ▪ Continued implementation of Igloo stand-alone improvement activities Total annual ▪ Strong track record and traction of EBITDA improvements in recent years EBITDA ▪ Increased net sales of USD 150 million estimated imrovement of aroun
Slide 10: Committed to Our Financial Targets
COMMITTED TO OUR FINANCIAL TARGETS FINANCIAL TARGETS OVER A BUSINESS CYCLE NET SALES GROWTH 10% Including organic growth and M&A EBIT MARGIN1) 16%–17% EBIT margin of 16%–17% NET DEBT/EBITDA 2.5x Net Debt/EBITDA around 2.5x DIVIDEND POLICY 40% At least 40% of net profit 1) EBIT before I.A.C.
Slide 11: Summary and Strategic Rationale
SUMMARY AND STRATEGIC RATIONALE BUILDING A STRONGER AND MORE STABLE END-USER-ORIENTED COMPANY 1. The acquisition of Igloo will significantly strengthen Dometic’s offering and distribution network for the outdoor market in North America. 2. The acquisition is a major step in Dometic’s strategy to con
Slide 12: Dometic
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Slide 13: Save the Date: Dometic Capital Markets Update
SAVE THE DATE NOVEMBER 30, 2021. 14:00 – 17:30 CET DOMETIC CAPITAL MARKETS UPDATE LIVE IN STOCKHOLM, SWEDEN
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