Investor Presentation • Jan 18, 2022
Investor Presentation
Open in ViewerOpens in native device viewer
www.sabafgroup.com
19th - 20th January 2022
Total Group employees at 30 November 2021 1,458
SABAF S.P.A. Valves and thermostats Standard burners Special burners 596 employees
A.R.C. S.R.L.
Professional burners 22 employees
Oven hinges 74 employees
FDishwasher hinges 1ARINGOSI-HINGES S.R.L. Oven hinges Dishwasher hinges 60 employees
Electronics for household appliances
SABAF APPLIANCE COMPONENTS (KUNSHAN) Wok burners 8 employees
ARC HANDAN JV Professional wok burners
SOP - H1 2022
Global leader in the segment of components for domestic appliances with 400 customers in 64 different countries:
Weight of top 10 customers on total Group sales is 48%
No customer represents more than 11% of total Group sales
Long -term agreements and strong relationships with all the main players in the household appliances business, based on mutual trust, technical cooperation, co -engineering and tailor made products
Intellectual capital: highly specialized and qualified staff (70+ R&D engineers)
Strong operational leverage: great flexibility in production volumes growth, ready to satisfy customers requests
Pietro Iotti, CEO of Sabaf, owns 1.5%
| Sabaf performance | |
|---|---|
| Change Jan 21 |
|
| 1-month (%) | + 3.49% |
| 3-month (%) | + 2.60% |
| 6-month (%) | - 10.57% |
| 12-month (%) | + 53.90% |
| Consensus Overview | Source Bloomberg Consensus Jan.11th, 2022 |
||
|---|---|---|---|
| FY 2022E | FY 2023E | ||
| Price/EPS | 9.52 | 8.84 | |
| EV/EBITDA | 6.11 | 5.86 | |
| EV/EBIT | 8.78 | 8.47 |
| E-MARKET SDIR |
|---|
| CERTIFIED |
| € x 000 | 9 MONTHS 2021 | 9 MONTHS 2020 | Δ % 21 - 20 |
12 MONTHS 2020 | |||
|---|---|---|---|---|---|---|---|
| Revenue | 200,772 | 100.0% | 125,445 | 100.0% | +60.0% | 184,906 | 100.0% |
| Other income | 5,979 | 3.0% | 3,036 | 2.4% | 7,194 | 3.9% | |
| Total operatig revenue and income | 206,751 | 103.0% 128,481 | 102.4% | 192,100 | |||
| Materials | (109,187) | (54.4%) | (56,438) | (45.0%) | (82,966) | (44.9%) | |
| Personnel costs | (40,922) | (20.4%) | (30,485) | (24.3%) | (43,700) | (23.6%) | |
| Change in inventories | 25,128 | 12.5% | 3,694 | 2.9% | 6,406 | 3.5% | |
| Other operating costs | (37,601) | (18.7%) | (22,380) | (17.8%) | (34,743) | (18.8%) | |
| EBITDA | 44,169 | 22.0% | 22,872 | 18.2% | +93.1% | 37,097 | 20.1% |
| Depreciation | (12,718) | (6.3%) | (12,705) | (10.1%) | (16,968) | (9.2%) | |
| Gains/ losses on fixed assets |
126 | 0.1% | 60 | 0.0% | 105 | 0.1% | |
| Write-downs/ write-backs of non-current assets |
- | 0.0% | - | 0.0% | (141) | (0.1%) | |
| EBIT | 31,577 | 15.7% | 10,227 | 8.2% | +208.8% | 20,093 | 10.9% |
| Net financial expense | (89) | (0.0%) | 459 | 0.4% | (780) | (0.4%) | |
| Exchange rate gains and losses | (1,267) | (0.6%) | (4,841) | (3.9%) | (4,812) | (2.6%) | |
| Profits and losses from equity investments | (38) | (0.0%) | (31) | (0.0%) | 8 | 0.0% | |
| EBT | 30,183 | 15.0% | 5,814 | 4.6% | +419.1% | 14,509 | 7.8% |
| Income taxes | (6,126) | (3.1%) | (1,349) | (1.1%) | (149) | (0.1%) | |
| PROFIT FOR THE YEAR | 24,057 | 12.0% | 4,465 | 3.6% | +438.8% | 14,360 | 7.8% |
| Minority interests | 794 | 0.4% | 220 | 0.2% | (399) | (0.2%) | |
| PROFIT ATTRIBUTABLE TO THE GROUP | 23,263 | 11.6% | 4,245 | 3.4% | +448.0% | 13,961 | 7.6% |
| 9 MONTHS | 9 MONTHS | Δ % 21 | |
|---|---|---|---|
| € x 000 | 2021 | 2020 | vs. 20 |
| Europe (excluding Turkey) | 71,215 | 46,901 | +51.8% |
| Turkey | 49,329 | 30,896 | +59.7% |
| North America | 23,134 | 15,942 | +45.1% |
| South America | 30,452 | 18,170 | +67.6% |
| Africa and Middle East | 15,106 | 8,628 | +75.1% |
| Asia and Oceania | 11,536 | 4,908 | +135.0% |
| Total | 200,772 | 125,445 | +60.0% |
| € x 000 | 9 MONTHS 2021 |
9 MONTHS 2020 |
Δ % 21 vs. 2 0 |
|---|---|---|---|
| Gas | 141,014 | 87,521 | +61.1% |
| Hinges | 43,002 | 28,737 | +49.6% |
| Electronics | 16,756 | 9,188 | +82.4% |
| Total | 200,772 | 125,446 | +60.0% |
| E-MARKET SDIR |
|---|
| CERTIFIED |
| € x 000 | 30/ 09/ 2021 |
31/ 12/ 2020 |
30/ 09/ 2020 |
|---|---|---|---|
| Fixed assets | 136,489 | 131,543 | 129,441 |
| Inventories | 63,404 | 39,224 | 36,585 |
| Trade receivables | 75,688 | 63,436 | 54,431 |
| Tax receivables | 3,821 | 2,419 | 2,095 |
| Other current receivables | 2,530 | 3,167 | 2,258 |
| Trade payables | (49,104) | (41,773) | (29,900) |
| Tax payables | (5,504) | (3,287) | (2,053) |
| Other payables | (12,478) | (10,957) | (10,874) |
| Net working capital | 78,357 | 52,229 | 52,542 |
| Provisions for risks and severance indemnity |
(8,733) | (9,643) | (10,764) |
| Capital Employed | 206,113 | 174,129 | 171,219 |
| Equity Net debt |
132,572 73,541 |
117,807 56,322 |
107,618 63,601 |
| Sources of finance | 206,113 | 174,129 | 171,219 |
| € x 000 | 30.09.2021 | 31.12.2020 | 30.09.2020 |
|---|---|---|---|
| Cash at the beginning of the period | 13,318 | 18,687 | 18,687 |
| Net profit Depreciation Other income statement adjustments |
24,057 12,718 6,011 |
14,360 16,968 1,873 |
4,465 12,705 581 |
| Change in net working capital - Change in inventories - Change in receivables - Change in payables |
(24,180) (12,252) 7,331 (29,101) |
- (3,881) (16,507) 14,213 (6,175) - |
(1,242) (7,502) 2,340 (6,404) |
| Other changes in operating items Operating cash flow |
(3,898) 9,787 |
(1,959) 25,067 |
(344) 11,003 |
| Investments, net of disposals Free Cash Flow |
(19,501) (9,714) |
(17,296) 7,771 |
(12,354) (1,351) |
| Cash flow from financial activity Own shares buyback Dividends CMI Acquisition Forex |
18,138 - (6,172) - (257) |
(2,136) (2,073) (3,924) (3,063) (1,944) - |
(1,914) (1,737) - (3,063) (1,478) - |
| Net financial flow | 1,995 | (5,369) | (9,543) |
| Cash at the end of the period | 15,313 | 13,318 | (144) |
The high levels of activity led the Group to anticipate to 2021 some investments originally planned for 2022, where growth is structural, in order to be able to guarantee continuity in supplies to customers and full production efficiency
| 9 MONTHS 2021 | 9 MONTHS 2020 | 12 MONTHS 2020 | |
|---|---|---|---|
| Change in turnover (vs. previous year) |
+60.0% | +8.8% | +18.6% |
| Change in turnover - Organic (vs. previous year) |
+60.0% | -4.9% | +8.4% |
| ROCE (return on capital employed) | 20.4% | 8.0% | 11.5% |
| Net debt/ EBITDA |
1.25 | 2.09 | 1.52 |
| Net w orking capital/ Turnover |
29.3% | 31.4% | 28.2% |
| Net debt/ equity |
55.5% | 59.1% | 47.8% |
| Days of Sales Outstanding | 102 | 111 | 111 |
| Days of Payables Outstanding | 9 0 |
9 4 |
9 8 |
| Days of Inventory Outstanding | 105 | 100 | 9 7 |
| MARKET | 2020 | 2021 | 2022 | 2023 | Var % 2023 vs. 2020 |
CAGR |
|---|---|---|---|---|---|---|
| EUROPE (excl. Turkey) | 69.6 | 76.3 | 80.3 | 86.6 | +24.5% | 7.6% |
| TURKEY | 44.8 | 51.6 | 55.6 | 56.6 | +26.3% | 8.1% |
| NORTH AMERICA | 22.7 | 27.5 | 32.2 | 37.2 | +63.6% | 17.8% |
| SOUTH AMERICA | 27.6 | 29.0 | 30.4 | 32.9 | +18.9% | 5.9% |
| AFRICA AND MIDDLE EAST | 12.2 | 14.1 | 14.1 | 16.1 | +32.5% | 9.8% |
| CHINA AND FAR EAST | 6.8 | 10.3 | 11.5 | 14.2 | +101.1% | 28.1% |
| INDIA | 1.2 | 1.7 | 4.3 | 6.9 | +468.0% | 78.4% |
| TOTAL | 184.9 | 210.5 | 228.4 | 250.5 | +35.5% | 10.6% |
| Growth vs. previous year | +13.9% | +8.5% | +9.7% |
| New Projects | ||
|---|---|---|
| Electronics | 5.3 | |
| Other Projects | 6.0 | |
| Hinges | 5.0 | |
| Gas | 13.8 | |
| Tot new projects | 30.1 | |
New Manisa Electronic Plant unvealed in May 2021
Sabaf's strategy and governance model are aimed towards ensuring long-term sustainable growth. For Sabaf, sustainability is primarily based on sharing values with its stakeholders; compliance with common values increases mutual trust and encourages knowledge development. " "
1 Area KPI 2023 TARGETS (VS.2020) Development of resources and skills Hours of training per capita +40% Health and safety Accident frequency rate -44% Accident severity rate Eco-efficiency and Emissions into the atmosphere tCO2eq emissions on sales -14% SDGs 2 3
BUSINESS PLAN KPI
«We believe in a world in which all people's basic needs, such as home, food and reliable energy, are fulfilled in an environmentally sustainable way.
We promote a company that improves the quality of the environment and the communities where we live and work»
30
M&A as a tool for achieving long-term targets through:
Growth of the competitive advantage by differentiating the Sabaf value proposition from competitors
Preservation of the identity of acquired companies, which maintain their brand,
local supply chain and workforce
Retention of talents and soft skills
Achievement of significant commercial and industrial synergies
From an entrepreneurial to an industrial approach
Joint effort for growth and positives influence on margins
Preferably seller is taken onboard as a director and/or minority shareholder
| TURNOVER | € 5 - 70 mn sales |
|---|---|
| EBITDA | Steady positive results over past years No turnarounds |
| SHAREHOLDING | Preference for entrepreneurial ownership |
| EBITDA MULTIPLES | Non-dilutive |
| M&A TEAM | Dedicated to scouting and development of business contacts, creation of an internal Data Base, analysis and evaluation of opportunities, management of negotiations |
Total growth: 62% by 2023 vs. 2020 (Organic and by acquisitions growth) (CAGR 17.5%)
Investments and dividends, for a total amount of € 150 mn financed with:
HIGH PROFITABILITY (EBITDA AT LEAST 19%)
COMPARED TO 11.5% IN 2020
Certain information included in this document is forward looking and is subject to important risks and uncertainties that could cause actual results to differ materially.
The Company's business is in the domestic appliance industry, with special reference to the gas cooking sector, and its outlook is predominantly based on its interpretation of what it considers to be the key economic factors affecting this business. Forward-looking statements with regard to the Group's business involve a number of important factors that are subject to change, including: the many interrelated factors that affect consumer confidence and worldwide demand for durable goods; general economic conditions in the Group's markets; actions of competitors; commodity prices; interest rates and currency exchange rates; political and civil unrest; and other risks and uncertainties.
Pursuant to Article 154/2, paragraph 2 of the Italian Consolidated Finance Act (Testo Unico della Finanza), the company's Financial Reporting Officer Gianluca Beschi declares that the financial disclosure contained in this financial presentation corresponds to the company's records, books and accounting entries.
For further information, please contact Gianluca Beschi - +39.030.6843236 [email protected]
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.