Thermador Groupe

Business and Financial Review • Oct 15, 2024

October 15, 2024

Dear Shareholder,

Here are the main indicators on the current situation of our Group.

TURNOVER AT SEPTEMBER 30, 2024: -14.0%

In thousands of euros		2024	2024 Constant scope*	2023	Variation 2024/2023	Variation 2024/2023 Constant scope*
Total at 30 September (according to IFRS 15)		390,551	390,117	454,185	-14.0%	-14.1%
1st quarter		141,190	141,190	170,513	-17.2%	-17.2%
2nd quarter		130,344	130,344	153,152	-14.9%	-14.9%
3rd quarter		119,017	118,583	130,520	-8.8%	-9.1%
Breakdown by business:
Mecafer and Domac: air compressors, generators, power packs, solar panels, welding stations and high-pressure cleaners		21,537	21,537	25,311	-14.9%	-14.9%
Odrea, pumps, technical plumbing accessories and taps		47,385	47,385	55,817	-15.1%	-15.1%
Isocel, supply of components to OEM		5,098	5,098	7,950	-35.9%	-35.9%
Aello, equipment for swimming pools		15,809	15,809	16,955	-6.8%	-6.8%
DPI, plastic piping for wet and dry networks		26,040	26,040	33,010	-21.1%	-21.1%
Jetly, pumps, tanks and lifting stations		47,110	47,110	49,526	-4.9%	-4.9%
Thermador, central heating, solar and domestic water accessories		50,034	50,034	75,605	-33.8%	-33.8%
PBtub	Heating - cooling surfaces and piping systems	16,028	16,028	21,149	-24.2%	-24.2%
Thermacome		11,836	11,836	15,620	-24.2%	-24.2%
Axelair, ventilation equipment and accessories		5,773	5,773	5,628	2.6%	2.6%
Alto Metering* (Compteur-energie.com, OTMetric and MyMeterInfo), design and sale of remote reading systems (IoT) and electricity, water, gas, fuel and energy meters		399
Sferaco, valves, meters and connectors		58,849	58,849	61,496	-4.3%	-4.3%
Sectoriel, motorised valves and air compressors		22,532	22,532	22,208	1.5%	1.5%
Distrilabo, measure and control		5,488	5,488	5,184	5.9%	5.9%
FGinox, stainless steel connectors, flanges, valves and accessories		12,140	12,140	12,762	-4.9%	-4.9%
Syveco, international		27,803	27,803	27,169	2.3%	2.3%
Sodeco Valves*, industrial valves		16,400	16,365	18,486	-11.3%	-11.3%
Other structures		290	290	309	-6.1%	-6.1%

* Turnover 2024: further to Thermador Groupe's acquisition of Alto Metering on July 31, 2024, its turnover has been consolidated from August 1, 2024, and further to Sodeco Valves' acquisition of Vena Contracta's business on August 9, 2024, its turnover has been consolidated from August 10, 2024.

BUSINESS

Despite the changes proposed by the authorities in May 2024 regarding the conditions for granting MaPrimeRénov' subsidies, our subsidiary Thermador did not see a turnaround in September. This is due to the withdrawal of energy renovation professionals, burned by the government's procrastination and delays in payments from the national housing improvement agency, ANAH. This trend is likely to continue until the rules for the allocation of state aid for 2025 are set in stone and stabilised. Recent announcements from the finance ministry on the budget set the tone: "The 2025 budget for MaPrimeRénov' will be maintained at the level of consumption observed in 2024." More encouragingly, it was also stated: "Maintaining strong momentum for energy renovation will be a priority for the ministry, pushing visibility and stability to avoid counterproductive rule changes."

So, we are ready to adapt to the new situation, knowing full well that the euphoric period of 2021, 2022 and 2023 is definitely over.

In the Group's other business areas (construction, industry, public works, water cycle, consumer and international), there has been no significant change since the end of June (see our previous letter to shareholders).

The succession of quarterly declines in turnover (-17.2% in Q1, -14.9% in Q2, -9.1% in Q3) seems to confirm that we are approaching the point at which sales will begin to rise again, albeit much more slowly than envisaged at the end of March 2024.

The estimated price impact over the first 9 months has stabilised at -2.6%. This will not change much over 2024 as a whole. In 2025, we expect prices to stabilise or even rise slightly. A return to normality, so to speak.

LATEST NEWS

On August 1, we confirmed the acquisition of the companies compteur-energie.com, OTMetric and MyMeterinfo. To keep things simple, they will be merged into a new legal entity called Alto Metering.

On August 9, our subsidiary Sodeco acquired the business of Vena Contracta (cf: press release on our website).

On August 28, we announced that we had completed a share buy-back programme for 30,000 shares in Thermador Groupe at an average price of €77.7942. The shares could be used to fund long-term reward packages or as a means of payment in the event of an acquisition.

On October 2, 2024, a Dutreil pact was signed for 25.14% of the capital (cf: press release on our website). The signatories to this agreement have undertaken not to sell their shares for the next two years, while retaining their voting rights.

STOCK AND CASH POSITION

Our stock levels decreased to 190 days of purchase (€174.9m), compared to 195 days at the end of September 2023 (€193m).

Our net cash position remained stable at €46.8m, and bank debt at €32.6m.

PROSPECTS

Aware of the sluggishness in some of our markets, but determined to do everything we can to maintain a reasonable pace of growth over the long term, we are carefully considering proposals from distribution companies that could join us. We are currently in discussions with three of them, who report turnover between €12m and €30m. They are based in Europe, including one in France.

In the first few days of October, there are still no signs of a recovery. We'll have to be patient.

COMMUNICATIONS

We are organising a web conference (in French and English) on October 16, 2024 at 6pm to comment on these results and answer any questions you may have. You can register for the live webcast or the replay on our website: https://www.thermador-groupe.fr/en/videos-en/

On 26 November, we look forward to seeing you in Paris (Carrousel du Louvre) at the Investir Day fair. You can already register on the event's website:https://event.investirday.fr/

Yours faithfully,

The Chairman Guillaume Robin