Zumtobel Group AG · VIE:ZAG
Zumtobel — Q1-Q3 2023/24 Earnings Presentation
23 slides from Zumtobel's earnings presentation, Mar 7, 2024
Slide 1: Q1-Q3 2023/24 Management Presentation
Q1-Q3 2023/24 MANAGEMENT PRESENTATION 7 March 2024 1
Slide 2: Disclaimer
DISCLAIMER The facts and information contained herein constitute forward-looking statements as of the date they were made and based upon assumptions as to future events or circumstances that may not prove to be complete or accurate. By their nature, these statements involve risk and uncertainty beca
Slide 3: CIELUMA – Our new product brand Partnership
CIELUMA Our new product brand Partnership 3
Slide 4: Q1-Q3 2023/24 Financial Overview
Q1-Q3 2023/24 FINANCIAL OVERVIEW • Group revenues decline by 7.9% to EUR 840.0 mn (PY: EUR 912.2 mn) − Lighting Segment revenues at EUR 663.4 mn (–2.1%) − Components Segment at EUR 222.6 mn (–20.4%) − Good revenue contributions especially from Switzerland • Adj. EBIT at EUR 45.9 mn (PY: EUR 68.0 mn)
Slide 5: Lighting Segment: Revenue slightly declined, adjusted EBIT lower
LIGHTING SEGMENT REVENUE SLIGHTLY DECLINED, WHILE ADJUSTED EBIT LOWER DUE TO HIGHER PERSONNEL COSTS REVENUES IN EUR MN ADJUSTED EBIT IN EUR MN fx-adj. fx-adj. fx-adj. 11.7% –0.3% –0.8% –3.3% 7.7% 10.6% 7.0% –1.0% –2.0% –3.2% 7.4% 7.2% 5.5% 226.5 224.1 235.0 230.3 26.9 215.8 208.9 225.8 24.9 16.7 17.
Slide 6: Components Segment: Q3 revenue still impacted by high customer inventory
COMPONENTS SEGMENT Q3 REVENUE STILL IMPACTED BY HIGH CUSTOMERS' INVENTORY LEVELS AND A LACK OF ECONOMIC MOMENTUM REVENUES IN EUR MN ADJUSTED EBIT IN EUR MN fx-adj. fx-adj. fx-adj. 9.4% 8.7% –23.0% –16.5% –12.5% 7.4% 6.0% –25.4% –20.0% –14.8% 4.3% 2.9% 103.2 -1.9% 93.9 82.8 87.4 77.0 75.1 8.9 70.5 7.
Slide 7: Zumtobel Group: Decline in sales eased in Q3, adjusted EBIT negatively impacted
ZUMTOBEL GROUP DECLINE IN SALES FURTHER EASED IN Q3, WHILE ADJUSTED EBIT WAS NEGATIVELY IMPACTED REVENUES IN EUR MN ADJUSTED EBIT IN EUR MN fx-adj. fx-adj. fx-adj. 10.1% –7.6% –6.1% –6.0% 6.1% 6.0% 8.8% –9.0% –8.0% –6.6% 5.1% 5.5% 313.7 314.1 31.7 2.2% 285.6 288.9 284.4 297.0 265.5 25.5 19.0 17.2 16
Slide 8: Adjusted EBIT bridge
ZUMTOBEL GROUP REVENUE DECLINE, INFLATION-BASED INCREASE IN PERSONNEL COSTS, ONLY PARTLY OFFSET BY HIGHER GROSS PROFIT MARGIN ADJUSTED EBIT BRIDGE IN EUR MN / AS % OF SALES 7.5% –2.0pp 5.5% Mainly due to country mix as well as lower raw material 68.0 costs 23.8 45.9 -5.2 Mainly higher personnel -40.
Slide 9: Income statement
ADJUSTED GROSS PROFIT MARGIN INCREASED TO 35.5% WHILE ADJUSTED EBIT MARGIN WAS NEGATIVELY IMPACTED ZUMTOBEL GROUP – INCOME STATEMENT IN EUR MN Q1-Q3 2023/24 Q1-Q3 2022/23 CHANGE IN % Special effects of EUR –9.1 mn recorded in Revenues 840.0 912.2 –7.9 Q1-Q3 2023/24, thereof: Adjusted cost of goods s
Slide 10: Cash flow statement
CASH FLOW IN Q1-Q3 2023/24 WAS NEGATIVELY IMPACTED BY REVENUE DECLINE ZUMTOBEL GROUP – CASH FLOW STATEMENT IN EUR MN Q1-Q3 2023/24 Q1-Q3 2022/23 Cash flow from operating results 78.5 109.5 Change in working capital 8.7 -3.4 Change in other operating items –22.3 –15.5 Taxes paid/received –6.3 –6.1 Ca
Slide 11: Solid balance sheet: strong equity ratio and debt coverage ratio
SOLID BALANCE SHEET: STRONG EQUITY RATIO AND DEBT COVERAGE RATIO ZUMTOBEL GROUP – KEY BALANCE SHEET DATA IN EUR MN 31 January 2024 30 April 2023 Solid liquidity position backed by: Total assets 984.2 1,002.4 • Consortium credit agreement with a term ending in December 2028 and a volume of EUR 125 mn
Slide 12: Sales development year-on-year negative in a difficult market environment
SALES DEVELOPMENT YEAR-ON-YEAR NEGATIVE IN A DIFFICULT MARKET ENVIRONMENT ZUMTOBEL GROUP – SALES DEVELOPMENT BY QUARTER VS PY PERIOD IN % 15.4 14.6 13.0 9.6 3.4 8.4 1.1 1.8 1.9 5.1 5.8 -0.5 -1.6 -7.6 -1.7 -6.6 -9.0 -8.0 -5.3 -8.8 -12.7 -13.9 -15.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 13: Group revenues down by 7.9% in Q1-Q3 2023/24
GROUP REVENUES DOWN BY 7.9% IN Q1-Q3 2023/24 ZUMTOBEL GROUP – REGIONAL REVENUE DISTRIBUTION CHANGE IN % IN EUR MN Q3 2023/24 CHANGE IN % Q1-Q3 2023/24 NOMINAL FX ADJUSTED D/A/CH 93.2 –3.8 304.2 –0.3 –1.7 Northern and Western Europe 58.6 –13.9 194.2 –12.2 –11.3 Southern and Eastern Europe 71.3 –7.8 2
Slide 14: FY 2023/24 Outlook
FY 2023/24 OUTLOOK Adjusted Revenue CAPEX excl. IFRS 16 EBIT margin decline ~EUR 50 mn of 4 – 6% mid-single digit (prior: ~EUR 60mn) Q1-Q3 2023/24 results Photographer: Jürgen Eheim 14
Slide 15: Back Up
BACK UP Q1-Q3 2023/24 results 15
Slide 16: Financial Calendar
FINANCIAL CALENDAR DATE SUBJECT PERIOD 3 July 2024 Annual Results 2023/24 1 May 2023 – 30 April 2024 23 July 2024 Record Date for the Annual General Meeting 2 August 2024 48th Annual General Meeting 6 August 2024 Ex-Dividend Day 7 August 2024 Record Date Dividend 9 August 2024 Dividend Payout Day 5
Slide 17: Efficiency measures to tackle the difficult market environment
EFFICIENCY MEASURES TO TACKLE THE DIFFICULT MARKET ENVIRONMENT Operational efficiency • Review staffing in all functional areas • Reduce costs through digitalization and strict management of overhead costs Management of manufacturing costs • Increase automation in our manufacturing processes Cost re
Slide 18: Order situation requires reorientation
ORDER SITUATION REQUIRES REORIENTATION Measurements Impact Components plant, Dornbirn (AT) • Partial transfer of production to the plant in Niš (Serbia) Restructuring costs • Conversion of the plant in Dornbirn • Restructuring costs of EUR –9.1 mn were into a “Centre of Production Innovation” booked
Slide 19: Current market outlook for the financial year 2023/24
CURRENT MARKET OUTLOOK FOR THE FINANCIAL YEAR 2023/24 Growth in non-residential construction Development of non-residential construction in 2024 until 2026 • Non-residential construction prospects are weak in total – sideways movement 2.5 1.6 1.8 1.3 is expected for this and next year • 8 out of 19
Slide 20: Working capital development
WORKING CAPITAL DEVELOPMENT ZUMTOBEL GROUP – WORKING CAPITAL 21.0 19.7 19.7 19.8 19.2 18.4 18.4 17.1 17.4 16.2 16.2 • Working capital at EUR 224.7 mn as of 31 January 2024 (30 April 2023: EUR 231.7 mn) • In % of rolling 12-month revenues, working capital at 19.8% (PY: 17.4%) Q1 Q2 Q3 Q4 FY 2021/22 F
Slide 21: Supplementary data for segment reporting
SUPPLEMENTARY DATA FOR SEGMENT REPORTING ZUMTOBEL GROUP Lighting Segment Components Segment Reconciliation Group Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 IN EUR MN 2023/24 2022/23 2023/24 2022/23 2023/24 2022/23 2023/24 2022/23 Net revenues 663.4 677.3 222.6 279.8 –46.0 –45.0 840.0 912.2 Exte
Slide 22: Five-year overview
FIVE-YEAR OVERVIEW ZUMTOBEL GROUP IN EUR MN 2022/23 2021/22 2020/21 2019/20 2018/19 Revenues 1,209.2 1,148.3 1,044.5 1,131.3 1,162.0 EBIT 84.3 60.8 43.4 35.1 2.7 as a % of revenues 7.0 5.3 4.2 3.1 0.2 Net profit/loss for the period 60.0 45.8 45.6 14.5 –15.2 as a % of revenues 5.0 4.0 4.4 1.3 –1.3 To
Slide 23: Zumtobel Group AG Investor Relations
ZUMTOBEL GROUP AG Investor Relations [email protected] www.zumtobelgroup.com Q1-Q3 2023/24 results 23