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Elica — Investor Presentation 2022
Apr 28, 2022
4217_rns_2022-04-28_f7525dfc-c73f-47fb-8013-7a15739f3761.pdf
Investor Presentation
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Q1 Results 2022 ANALYSTS PRESENTATION
THURSDAY APRIL 28TH, 2022
AGENDA
EXECUTIVE SUMMARY & Q1 2022 HIGHLIGHTS
Q1 2022 RESULTS – FINANCIAL SOUDNESS
HIGHLIGHTS
NET SALES 144,0 M€
YoY Change +7 M€ +5,1% (organic: +5,7%)
| EBIT ADJ | YoY Change |
|---|---|
| 9,0 M€ |
+0,4 M€ |
| 6,2% | - |
NFP 31,0 M€ Leverage:~ 0,8 YoY Change +20 M€
- Net Sales Record setting Q1 2022 with very strong revenue growth, mainly in EMEA in a negative industry shipment environment
- Very strong margin largely offsetting 18 M€ commodities, utilities and logistic cost inflation
- Industrial footprint re-organization on track: delivering a sustainable long-term strategy in Europe
- Strong Operating Cash Flow despite additional inventories to manage industrial footprint transition and supply chain bottlenecks
INDUSTRY TREND
INDUSTRY TREND & MKT SHARE EVOLUTION
Q1 2022, Q1 & Q4 2021 – COOKER HOODS INDUSTRY SHIPMENTS (Units YoY Change)
Key evidence
GENERAL REMARKS
The impact of the events in Ukraine and Russia was felt worldwide with different intensity. The effects unfolded through several channels: energy prices, cost of commodities, disruption in supply chains and the impact on confidence. The geopolitical shock is weighing on a recovery dynamic that was looking positive at the very beginning of 2022 thanks to the partial easing of anti-Covid19 restrictions.
EMEA
The Russian-Ukrainian war is causing a humanitarian crisis and throwing into question EU reliance on Russian energy commodities. Among the Euro Area's economies high consumer price inflation is causing a decline in confidence. Mixed results among EU countries are also linked to different Q1 21 base effect due to uneven recovery in the first months of 2021.
AMERICAS
The US momentum waned in Q1 as the latest Covid-19 wave and elevated price pressures weight on economic sentiment. The Russian-Ukrainian conflict for now is not derailing the US recovery, but it is contributing to higher inflation. Mexico growth is slowing, in line with the U.S. economy. The LA region in general decelerates as the consumer spending shrinks due to the spiking inflation. Political and policy uncertainty further weighs on demand.
ASIA
In Japan Omicron variant effect combined with higher import and energy prices weigh on consumer spending and lead to a mild contraction in Q1'22. The Chinese economy is still hindered by COVID outbreaks and a further slowdown in property construction. The recovery of developing economies is facing further multiple challenges, including lower vaccination rates, higher debt levels and tightened financial conditions.
| Q1 '22 | Q1 '21 | Q4 '21 | |
|---|---|---|---|
| Western Europe | (1,9%) | 3,9% | (7,9%) |
| Eastern Europe (incl CIS) |
(2,7%) | 8,7% | 0,9% |
| Europe | (2,2%) | 6,0% | (4,2%) |
| EMEA | (1,7%) | 5,3% | (3,4%) |
| North America | 4,0% | 2,0% | (0,5%) |
| Latin America | (5,5%) | 1,6% | 1,4% |
| AMERICAS | 0,1% | 1,8% | 0,2% |
| ASIA | 2,1% | 30,5% | 2,8% |
| Total | +0,7% | +14,7% | +0,3% |
SALES KEY DRIVERS & REGIONAL OVERVIEW
SALES DRIVERS BUSINESS & BRANDS OVERVIEW
| Q1 2021 | 19,2 | 117,8 | 137,0 |
|---|---|---|---|
| Divestiture | +9.4 | -11,1 | -1,7 |
| & M&A | +48.8% | -9,4% | -1,3% |
| Currency | - | +0.9 | +0,9 |
| -0.1% | +0.8% | +0,7% | |
| ORGANIC | +3,2 | +4,7 | +7,8 |
| Growth | +16,4% | +3,9% | +5,7% |
| YoY | +12,5 | -5,5 | +7,0 |
| Change | +65,1% | -4,7% | +5,1% |
| Q1 2022 | 31,7 | 112,3 | 144,0 |
| Business weights | 22% | 78% |
| Q1 2021 | 57,2 | 60,6 | 117,8 |
|---|---|---|---|
| Divestiture | - | -11,1 | -11,1 |
| & M&A | -18,3% | -9,4% | |
| Currency | +1,2 | -0.2 | +0,9 |
| +2.0% | -0.4% | +0,8% | |
| ORGANIC | -6,0 | +10,6 | +4,6 |
| Growth | -10,4% | +17,5% | +3,9% |
| YoY | -4,8 | -0,7 | -5,5 |
| Change | -8,4% | -1,2% | -4,7% |
| Q4 2022 | 52,4 | 59,9 | 112,3 |
| Brand weights | 47% | 53% |
KEY PRODUCT CATEGORIES PERFORMANCE
- Persisting growth trend in all strategic product families
- NikolaTesla range @ 15% of Cooking Sales, with new NikolaTesla Fit @ 17% of total family revenues.
EUROCUCINA PREVIEW KEY PRODUCT THEMES
AIRMATIC
AUTOMATICALLY TAKES CARE OF INDOOR AIR ALL DAY LONG
NO DRIP ULTIMATELY SOLVES THE PROBLEM OF CONDENSATION DRIP
COOKING EXPERIENCE
EXPANDED POSSIBILITIES FOR AMAZING RESULTS
CONNECTIVITY
EASY INTERACTION BY VOICE CONTROL AND FROM ANYWHERE BY MOBILE APP
FOR ELICA INNOVATION MEANS DESIGNING TODAY WHAT CONSUMERS WILL DREAM TOMORROW
ECONOMICS & FINANCIALS
MARGINS & KEY RESULT DRIVERS
| Q1 | CHANGES vs. PRIOR YEAR | ||||
|---|---|---|---|---|---|
| €M | 2022 | 2021 | VAR € | % VAR | |
| NET SALES | 144,0 | 137,0 | 7,0 | 5,1% | VOLUME/ PRICE / MIX |
| ADJ EBITDA | 14,9 | 14,4 | 0,6 | 4,0% | RAW MATERIAL INFLATION |
| % NET SALES | 10,4% | 10,5% | -0,1% | -10 bps | SG&A |
| ADJ EBIT | 9,0 | 8,5 | 0,4 | 5,2% | CURRENCY |
| % NET SALES | 6,2% | 6,2% | 0,0% | -- | |
| NRI | (0,9) | (2,5) | 1,6 | -64,5% | D&A |
| EBIT | 8,1 | 6,0 | 2,1 | 34,1% | ADJ EBIT |
| % NET SALES | 5,6% | 4,4% | 1,2% | 120 bps | NRI |
| PBT | 7,7 | 5,7 | 1,9 | 34,1% | FINANCIAL COSTS |
| % NET SALES | 5,3% | 4,2% | 1,2% | 120 bps | COMBINED TAX RATE |
| NET PROFIT | 5,2 | 4,1 | 1,1 | 25,8% | NET PROFIT |
| % NET SALES | 3,6% | 3,0% | 0,6% | 60 bps | |
| MINORITIES | 0,4 | 1,7 | -1,3 | -73,8% | |
| GROUP NET PROFIT | 4,7 | 2,4 | 2,3 | 96,7% | |
| % NET SALES | 3,3% | 1,8% | 1,5% | 150 bps | |
| ADJ GROUP NET PROFIT | 5,4 | 3,9 | 1,5 | 38,9% | |
| % NET SALES | 3,8% | 2,8% | 0,9% | 100 bps |
| VOLUME/ PRICE / MIX | ++ |
|---|---|
| RAW MATERIAL INFLATION | -- |
| SG&A | + |
| CURRENCY | + |
| D&A | - |
| ADJ EBIT | 0,4 |
| NRI | + |
| FINANCIAL COSTS | + |
| COMBINED TAX RATE | - |
| NET PROFIT | 1,1 |
Record Quarter Adj. Ebit Value, Group Net Profit 2X vs 2021 15
FOCUS: NRI & MINORITIES
RESTRUCTURING COSTS & NRI MINORITIES
| €M | Q1 2022 | Q1 2021 |
|---|---|---|
| CHINA BUSINESS NEW MODEL | 0,0 | 1,6 |
| RESTRUCTURING SG&A | 0,4 | 0,9 |
| INDUSTRIAL PLAN | 0,5 | 0,0 |
| TOT NRI | 0,9 | 2,5 |
| €M | MINORTY SHARES |
Q1 2022 | Q1 2021 | VAR |
|---|---|---|---|---|
| ELICA PB INDIA | —% | — | 1,2 | (1,2) |
| ARIAFINA | 49,0% | 0,4 | 0,4 | 0,0 |
| AIRFORCE | 40,0% | 0,0 | 0,1 | (0,1) |
| TOT MINORITIES | 0,4 | 1,7 | (1,3) |
- FOCUSED ONE-OFFS TO DELIVER INCREASING MARGINS & ELIMINATE LIABILITIES:
- Corporate SG&A Re-sizing
-
Industrial Plan: Execution of New Manufacturing Emea Footprint
-
MINORITIES impact reduced due to INDIA deconsolidation
- ARIAFINA (Japan) and AIRFORCE (Italy) performance in line with 2021
Q1 2022 – NET FINANCIAL POSITION
| €М | Q 1 2022 |
Q1 2021 |
VAR |
|---|---|---|---|
| OPENING NFP | 35,1 | 60,3 | 25,2 |
| IFRS16 EFFECT | 12,4 | 8,9 | 3,5 |
| OPENING NFP NET of IFR16 | 22,7 | 51,4 | 28,7 |
| OPERATING CASH FLOW | 4,5 | 5,3 | (0, 8) |
| $(*)$ CAPEX | (2,2) | (3,4) | 1,2 |
| TAXES | (1,4) | (1,8) | 0,4 |
| OPERATING CF | 9, | ,1 | ,8 |
| % SALES | 0,6% | 0,1% | $-0.6%$ |
| DIVIDENDS & FINANCIAL ITEMS | (3,6) | (1,0) | (2,6) |
| FX EFFECT | (0,2) | 0,3 | (0,5) |
| NRI | (0,4) | 1,0 | (1,4) |
| M&A | (5,0) | (5,0) | |
| CLOSING NFP | 31,0 | 51,3 | 20,3 |
| LEVERAGE | 0,8 | 1,2 | 0,4 |
COMMENTS
- Strong Operating Cash Flow despite additional inventories (13M€) to manage industrial footprint transition and supply chain bottlenecks
- Neutral effect of FX impact, negative impact of Divided & Financial Items
- 5M€ of M&A Cash-out related to Motor Division acquisition (second tranche of 6,6M€ will be paid in July)
CLOSING REMARKS & 2021 GUIDANCE
CLOSING REMARKS
- Agile Execution offsetting cost inflation without impacting Growth: Delivered a Record Sales Quarter @2021 Very Strong Margins.
- All «mid-term» strategic projects running in line with our expectations
- « An even More Challenging 2022 »
despite a worsening scenario we confirm our previous guidance:
- Organic growth (~5-6%)
- Maintaining our commitment in improving value creation, despite Raw Material Scenario remains critical both in terms of Availability and Inflation.
- Further Net Financial Position Improvement to sustain investments in production capacity, innovation and M&A initiatives.
Q1 2020 HIGHLIGHTS ANNEX: FINANCIAL HIGHLIGHTS
Q1 CONSOLIDATED INCOME STATEMENT
| €M | 1Q 22 | 1Q 21 | % |
|---|---|---|---|
| Net Sales | 144.0 | 137.0 | 5.1% |
| EBITDA Adj | 14.9 | 14.4 | 4.0% |
| $\%$ | 10.4% | 10.5% | $-11$ bps |
| EBITDA | 14.1 | 13.5 | 4.2% |
| $\%$ | 9.8% | 9.8% | -8 bps |
| EBIT | 8.1 | 6.0 | 34.1% |
| % | 5.6% | 4.4% | 121 bps |
| Net Result | 5.2 | 4.1 | 25.8% |
| % | 3.6% | 3.0% | 59 bps |
| $EPS^*$ – Euro cents | 7.49 | 3.81 | 96.8% |
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
| €M | 2022 | 2021 | Δ |
|---|---|---|---|
| Trade receivables | 92.3 | 97.4 | (5.1) |
| % on annualized sales | 16.0% | 17.8% | (180) bps |
| Inventories | 97.8 | 80.0 | 17.9 |
| % on annualized sales | 17.0% | 14.6% | 240 bps |
| Trade payables | (157.8) | (133.0) | (24.9) |
| % on annualized sales | $(27.4)\%$ | $(24.3)\%$ | (310) bps |
| Managerial Working Capital | 32.3 | 44.4 | (12.1) |
| % on annualized sales | 5.6% | 8.1% | $(250)$ bps |
| Short term assets & liabilities | (31.0) | (10.4) | (20.6) |
| % on annualized sales | $(5.4)\%$ | $(1.9)\%$ | (350) bps |
| Net Working Capital | 1.3 | 34.0 | (32.7) |
| % on annualized sales | 0.2% | 6.2% | $(600)$ bps |
CONSOLIDATED CASH FLOW
| €M | 2022 | 2021 |
|---|---|---|
| Operating Cash Flow | 2.7 | 4.5 |
| Capex $(*)$ | (2.2) | (3.4) |
| Cash Flow from Financial Activities | (8.5) | (1.4) |
| $\triangle$ Net Financial Position | (8.1) | (0.3) |
CONSOLIDATED B/S
| 2022 | 2021 | 2022 | 2021 | ||
|---|---|---|---|---|---|
| Net Operating Fixed Assets |
172.2 | 149.0 | Net Financial Position $(*)$ |
44.5 | 60.2 |
| Net Working Capital | 1.3 | 34.0 | Group Equity | 125.5 | 107.0 |
| Minorities | 6.1 | 18.8 | |||
| Net Financial Assets | 2.6 | 3.0 | Total Shareholders' Equity |
131.5 | 125.8 |
| Net Capital Employed | 176.1 | 186.0 | Total Sources | 176.1 | 186.0 |
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.