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Elica Investor Presentation 2021
4217_rns_2021-05-05_bdfe81e7-5153-4488-bff9-364cba528a6f.pdf
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Q1 Results 2021 ANALYSTS PRESENTATION
WEDNESDAY MAY 5TH, 2021
AGENDA
EXECUTIVE SUMMARY Q1 2021 HIGHLIGHTS
EXECUTIVE SUMMARY Q1 2021 HIGHLIGHTS
▪
- Industry : Strong Q1 in EMEA, driven by European dynamics. (*)
- Revenues growing above Market: +23,7% vs Q1 2020 (+27,3% Organic)
- Products: NikolaTesla, with the new fit range, driving sales boost in high-end segment (~ +60% YoY in Q1)
- Margins: Revenues growth and cost containment delivering:
- 14,4 M€ Adj. EBITDA (10,5% on NS) vs. 10,9 M€ 2020 (9,9% on NS) and
- 8,5 M€ Adj. EBIT (6,2% on NS), vs. 4,3 M€ 2020 (3,9% on NS)
- NFP: Positive Operating Cash Flow as a result of strong earning and Capex stabilization.
INDUSTRY TREND
5
Q1|Q4 2020 & Q1 2021 – COOKER HOODS INDUSTRY UNIT SHIPMENTS
Volume Data _ Change % vs . Y-1
| Q1'20 | H1 '20 Q1'21 |
H1 '20 Q4'20 |
Key evidence | |
|---|---|---|---|---|
| Western Europe | (5.0%) | 3.9% | 4.0% | GENERAL REMARKS |
| Eastern Europe (incl. CIS) | (0.5%) | 8.7% | 6.6% | |
| Europe | (2.7%) | 6.0% | 5.0% | EMEA |
| EMEA | (2.5%) | 5.3% | 4.2% | |
| North America | (1.5%) | 2.0% | (0.5%) | recorded a strong quarter as a whole. |
| Latin America | 1.6% | 1.6% | (1.8%) | AMERICAS |
| AMERICAS | (0.2%) | 1.8% | (1.0%) | lockdown measures and slowing down the expected rebound. |
| ASIA | (28.3) | 30.5% | 1.8% | ASIA |
| WORLD | (14.4%) | 14.7% | 2.1% |
GENERAL REMARKS
Many economies especially in Europe are still subject to significant social distancing and economic activity restrictions in Q1 2021, however the global economic situation has improved although the recoveries are diverging across countries and sectors suggesting a K-shaped recovery. The general situation is improving as vaccine distribution accelerates.
EMEA
The second wave of the COVID—19 has had a significant impact on the economies of Germany and UK that register negative results due to local lockdowns and restrictions especially in the first two month of 2021. The positive Europe result is triggered mostly by the Eastern Europe robust growth. Markets across Europe, the Middle East and Africa recorded a strong quarter as a whole.
AMERICAS
U.S. market surged higher in Q1 2021 on the back of two overriding themes – greater than expected stimulus and vaccine progress. The resurgence of new daily COVID-19 cases at the beginning of 2021 led to every major Latin American economy reimposing lockdown measures and slowing down the expected rebound.
ASIA
China's economy expand notably in the first quarter, a growth figure inflated by the coronavirus-related crash in the year-ago period. Japan's economy shrinks due to a second state of emergency. Although Indian economic activity has rebounded, highfrequency indicators suggest that the recovery has been uneven so far.
SALES DYNAMICS
SALES KEY DRIVERS
- Q1 Confirmed robust growth (+27,3% organic) driven by Volume/Price-Mix. Positive also vs 2019 (+17%)
- Currencies (USD,INR,JPY) negatively affecting Revenues (-3,6%) but fully balanced @ Margins level
| Q1 | ||||
|---|---|---|---|---|
| Change vs Y-1 | €M €M |
% | ||
| Vol/Price-Mix | 30,3 | 27,3% | ||
| Currency | (4,0) | (3,6)% | ||
| Reported NS | 137 | 23,7% |
Q1 SALES DISTRIBUTION & DYNAMICS
- Q1: All geographies growing supported by positive demand, EMEA above the market in all channels.
- AMERICAS & ASIA: Strong operational performance partially offset by negative FX effect.
- COOKING: Double digit growth in both OWN Brands and OEM.
- MOTOR: Q1 persistent growth driven by positive market demand powered by Eco-bonus & New Projects.
OUR DESIGN, OUR DNA, our PASSION
KEY PRODUCT CATEGORIES PERFORMANCE
- NikolaTesla range reaching 11.5% of Cooking Sales, thanks to range expansion boost: Nikola Tesla Fit (60cm)
- Acceleration & Fast Growth in all Categories improving mix-up and margins.
€M
2021 ECONOMICS & FINANCIALS
14
MARGINS & KEY RESULT DRIVERS VS LY
| €M | Q1 | VAR | CHANGES vs. PRIOR YEAR | ||||
|---|---|---|---|---|---|---|---|
| 2021 | 2020 | € | % | ||||
| CHANGES vs. PRIOR YEAR | 01 |
|---|---|
| VOLUME | +++ |
| PRICE / MIX | + |
| RAW MATERIAL INFLATION | |
| SG&A | + |
| CURRENCY | |
| D&A | + |
| ADJ EBIT | 4,2 |
| NRI | |
| FINANCIAL COSTS | + |
| COMBINED TAX RATE | + |
| NET PROFIT | 2,1 |
FOCUS: NRI & MINORITIES
RESTRUCTURING COSTS & NRI MINORITIES
| €M | Q1 2021 | Q1 2020 |
|---|---|---|
| €M | MINORTY SHARES |
Q1 2021 |
Q1 2020 |
VAR |
|---|---|---|---|---|
| ELICA | 5% | 2 | 0 | 0 |
| PB | 74 | 1 | 7 | 5 |
| INDIA | , | , | , | , |
| ARIAFINA | 49 | 0 | 0 | (0 |
| 0% | 4 | 5 | 1) | |
| , | , | , | , | |
| AIRFORCE | 40 | 0 | 0 | 0 |
| 0% | 1 | 0 | 1 | |
| , | , | , | , | |
| TOT MINORITIES |
1 7 , |
1 1 , |
0 6 , |
▪ FOCUSED ONE-OFFS TO DELIVER INCREASING MARGINS & ELIMINATE LIABILITIES:
- China assets write-off with no financial effect
- Corporate SG&A Re-sizing
- Former CEO No Competition Agreement
- ELICA PB INDIA: Delivering Record Result driven by Sales Growth (+46%) and Flexible Business Model.
- ARIAFINA (Japan) and AIRFORCE (Italy) performance in line with 2020.
NET FINANCIAL POSITION
| €M | I Q 2021 | I Q 2020 | VAR | COMMENTS |
|---|---|---|---|---|
| OPENING NFP |
(60 3) , |
(56 8) , |
(3 4) , |
|
| IFRS16 EFFECT |
8 9 , |
9 7 , |
||
| OPENING NFP of NET IFR16 |
(51 4) , |
(47 2) , |
(4 2) , |
target. |
| CASH OPERATING FLOW |
5 3 , |
1 1 , |
4 1 , |
|
| (*) CAPEX |
(3 4) , |
(3 3) , |
( 1) , |
|
| TAXES | (1 8) , |
(1 8) , |
( 0) , |
|
| CF OPERATING |
1 , |
(4 0) , |
4 1 , |
|
| SALES % |
0 0% , |
-0 8% , |
0 9% , |
|
| DIVIDENDS & FINANCIAL ITEMS |
(1 4) , |
(3 1) , |
1 8 , |
|
| FX EFFECT |
3 , |
(1 0) , |
1 4 , |
|
| RESTRUCTURING COSTS |
0 , |
0 , |
0 , |
|
| OTHER NRI |
1 0 , |
0 , |
1 0 , |
|
| CLOSING NFP |
(51 3) , |
(55 3) , |
4 0 , |
|
| LEVERAGE | 1 2 , |
1 3 , |
- Positive OPERATING CF result mainly driven by EBITDA Growth and CAPEX stabilization in line with target.
- Positive impact in cash out vs LY from Dividend (Ariafina) and Financial items (Putian).
- Positive impact vs LY for FX conversion of the Foreign Entities NFP (mainly MXP, INR and JPN ).
- Other NRI: 1st settlement of China Land Transfer.
- Closure Q1 aligned with Q4 2020 despite negative seasonality that historically affects the first quarter.
INCREASING OCF IN Q1: NFP BETTER THAN LY, LEVERAGE LARGELY BELOW NEW 100 M€ LOAN COVENANTS
CLOSING REMARKS & TAKE-AWAYS
18
CLOSING REMARKS
- Sales & Margins: Q1 Results continues to report a robust growth above the market trend.
- Price Mix: Strong Focus to carry on the Cost based Price Increase to mitigate the Component and Raw Materials inflationary.
- Maintaining strong focus on New Product and Strategic initiatives, with a strict control of CAPEX spending.
- Increasing Operating Cash generation driven by Margin growth.
- All «mid-term» strategic projects running in line with our expectations to deliver incremental growth, margins and cash generation.
Q1 2020 HIGHLIGHTS ANNEX: FINANCIAL HIGHLIGHTS
Q1 CONSOLIDATED INCOME STATEMENT
| €M | Q1 21 | Q1 '20 | % | |
|---|---|---|---|---|
| Net Sales | 137.0 | 110.8 | 23.7% | |
| EBITDA Adj | 14.4 | 10.9 | 31.4% | |
| % | 10.5% | 9.9% | 60 bps | |
| EBITDA | 13.5 | 10.9 | 23.2% | |
| % | 9.8% | 9.9% | 0 bps | |
| EBIT | 6.0 | 4.3 | 40.2% | |
| % | 4.4% | 3.9% | 50 bps | |
| Net Result | 4.1 | 2.0 | 103.9% | |
| % | 3.0% | 1.8% | 120 bps | |
| EPS* - Euro cents | 3.81 | 1.41 | 170.2% |
21 (*) EPS is calculated by dividing the Net Result pertaining to the Group by the number of ordinary shares outstanding, excluding treasury shares at the same data.
NET WORKING CAPITAL
| EM | Q1 '21 | Q1 20 | △ |
|---|---|---|---|
| Trade receivables | 97 4 | 62.1 | 35.3 |
| % on annualized sales | 17.8% | 14.0% | 380 bps |
| Inventories | 80.0 | 72.3 | 7.7 |
| % on annualized sales | 14.6% | 16.3% | (170 bps) |
| Trade payables | (133.0) | (108 1) | (24.9) |
| % on annualized sales | (24.3)% | (24.4)% | 100 bps |
| Managerial Working Capital | 44.4 | 26.3 | 18.1 |
| % on annualized sales | 8.1% | 5.9% | 220 bps |
| Short term assets & liabilities | (10.4) | (11.9) | 1.5 |
| % on annualized sales | (1.9)% | (2.7)% | 80 bps |
| Net Working Capital | 34.0 | 14.4 | 19.6 |
| % on annualized sales | 6.2% | 3.2% | 300 bps |
CONSOLIDATED CASH FLOW
| EM | Q1 '21 | Q1 '20 |
|---|---|---|
| Operating Cash Flow | 4.5 | (0.6) |
| Capex (*) | (3.4) | (3.3) |
| Cash Flow from Financing Activities | (1.4) | (3.1) |
| A Net Financial Position | (0.3) | (7.1) |
CONSOLIDATED B/S
| 2021 | 2020 | 2021 | 2020 | ||
|---|---|---|---|---|---|
| Net Operating Fixed Assets |
149.0 | 167.6 | Net Financial Position (*) |
60.2 | 66.0 |
| Net Working Capital | 34.0 | 14.4 | Group Equity Minorities |
107.0 18.8 |
101.3 13.5 |
| Net Financial Assets | 3.0 | (1.2) | Total Shareholders' Equity |
125.8 | 114.8 |
| Net Capital Employed | 186.0 | 180.8 | Total Sources | 186.0 | 180.8 |
DISCLAIMER
Investor Relations
Francesca Cocco – Lerxi Consulting – Investor Relations Tel: +39 (0)732 6104205 E-mail: [email protected]
This presentation may contain forwards-looking information and statements about Elica S.p.A. and its Group.
Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance.
Although the management of Elica S.p.A. believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of Elica are cautioned that forward-looking information and statements are subject to various risk and uncertainties, many of which are difficult to predict and generally beyond the control of Elica S.p.A.; that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking statements.
These risks and uncertainties include, but are not limited to, those contained in this presentation. Except as required by applicable law, Elica S.p.A. does not undertake any obligation to update any forward-looking information or statements.