Thermador Groupe

Earnings Release • Feb 19, 2021

February 22, 2021

Dear Shareholder,

Our Board of Directors met on February 18 for final closing of the 2020 accounts, which present as follows:

2020 TURNOVER: +7.2% AND AT CONSTANT SCOPE: +2.6%

In thousands of euros		2020	2020 constant scope*	2019	Variation 2020/2019	Variation 2020 constant scope* /2019
Total at 31 December – according to IFRS 15		395,500	378,543	368,836	+7.2%	+2.6%
1st quarter		94,952	93,601	93,048	+2.0%	+0.6%
2d quarter		92,917	88,947	97,651	-4.8%	-8.9%
3rd quarter		108,206	102,303	91,764	+17.9%	+11.5%
4th quarter		99,425	93,692	86,373	+15.1%	+8.5%
Breakdown by business:
Mecafer and Domac, equipment tools		34,211	34,211	31,114	+10.0%	+10.0%
Dipra / Rousseau, pumps, technical plumbing accessories and taps		62,316	62,316	54,997	+13.3%	+13.3%
Isocel, supply of components to OEM		6,230	6,230	6,453	-3.5%	-3.5%
Aello, equipment for swimming pools		12,519	12,519	8,873	+41.1%	+41.1%
Jetly, pumps		49,996	49,996	49,189	+1.6%	+1.6%
Thermador, central heating and domestic water accessories		49,003	49,003	47,201	+3.8%	+3.8%
PBtub	Heating - cooling surfaces	22,158	22,158	24,538	-9.7%	-9.7%
Thermacome**	and piping systems	11,905	-	-	-	-
Axelair, ventilation equipment and accessories		5,978	5,978	5,742	+4.1%	+4.1%
Sferaco, valves, meters and connectors		53,431	53,431	56,320	-5.1%	-5.1%
Sectoriel, motorised valves and air compressors		21,924	21,924	21,629	+1.4%	+1.4%
Distrilabo, measure and control*		5,052	-	-	-	-
FGinox, stainless steel connectors, flanges, valves and accessories		14,491	14,491	16,036	-9.6%	-9.6%
Syveco, international		25,378	25,378	26,831	-5.4%	-5.4%
Sodeco Valves, industrial valves		20,607	20,607	19,600	+5.1%	+5.1%
Other structures		301	301	313	-3.8%	-3.8%

* Distrilabo was acquired by Thermador Groupe on December 31, 2019. Its turnover has been consolidated since January 1, 2020.

** Thermacome was acquired by Thermador Groupe on April 30, 2020. Its turnover has been consolidated since May 1, 2020. … / …

BUSINESS ACTIVITY, EXTERNAL GROWTH AND RESULTS

Never in the course has our multi-channel, multi-market strategy felt so right. It was clearly a strong pillar of our resilience during the 2020 crisis, which was as brutal as it was unexpected. Indeed, the performance of our consumer, swimming pool, e-commerce and renewable energy businesses offset our declines in the new housing, industrial and international sectors.

Our teams have been the second and most important pillar of our resilience. They have been exemplary, courageous, responsive, committed, supportive and forward-looking when the indicators have been in a fall-and-rise frenzy.

A vital support in such circumstances, our IT specialists implemented across-the-board home-working in record time, enabling us to maintain service to our customers during lockdowns.

Finally, the quality of our stocks and the reliability of our industrial partners undoubtedly made the difference in periods of very high demand.

As a result, and despite a particularly chaotic context, we managed to increase our sales (+2.6%) and net profit (+10.1 %) on a like-for-like basis.

With Distrilabo and Thermacome, which joined the group on January 1 and May 1, 2020, respectively, our turnover increased by 7.2% and our net profit by 11.8%. The onboarding of these two fine companies is under way, in line with our forecasts. In this respect, we would like to thank Laurence and Denis Straub for their cooperation in the handover to Anne-Sophie Bultey at the head of Distrilabo, as well as our new partner Acome for its loyal support to Thermacome, whose Managing Director, Florent Kieffer, remains in place.

In accordance with commitments made at the beginning of 2020, we do not plan any external growth operations in excess of €5 million in 2021, preferring to concentrate our resources on our many and varied onboarding operations.

OPERATING PROFIT: UP 7.5% AND PORTION OF NET PROFIT ALLOCATED OF THE GROUP UP 11.8%

In thousands of euros	2020	2020 constant scope	2019	2019 constant scope	Variation 2020/2019	Variation 2020/2019 constant scope
Operating profit	51,411	50,638	47,821	46,946	+7.5%	+5.9%
Portion of net profit allocated of the group	36,180	35,636	32,373	31,786	+11.8%	+10.1%

FINANCIAL SITUATION AND PROSPECTS

Our stock level fell from 190 to 173 days of purchases consumed, a decrease that needs to be put into perspective given the unexpected increases in turnover during the second half of the year. This indicator once again underlines the prowess of our teams in an extremely volatile situation.

At December 31, 2020, our net cash position was €39.9 million, our bank debt at €39.4 million and our shareholders' equity after allocation of profits, at €224.8 million. These figures show our excellent financial solidity.

This means that 2021 can get under way with a degree of serenity, and we are ready to manage the inevitable vagaries of the markets. The context remains broadly the same as in the fourth quarter of 2020, assuming a slowdown in sales to the general public, which cannot continue to rise indefinitely. The recovery of our export sales depends largely on how the pandemic evolves in Europe. In France, we can count on the government's household energy subsidy MaPrimeRénov' to compensate for the erosion of sales of accessories linked to fossil fuels and our accessory ranges, used notably with renewable energies in buildings. Our 10-year strategic plan, laid out on pages 10 and 11 of our annual report, has been slightly modified to show our willingness to take long-term action to protect the environment.

DIVIDEND AND ANNUAL GENERAL MEETING

2020 was marked by a very sharp increase in trading volumes on our share. Also, the influx of new small investors onto the stock market, and our good results, have encouraged the arrival of new ones, whom we warmly welcome. 7,116 of you now have a stake in our capital, which is also a guarantee of our resilience. In December 2020, institutional investors held 46% of the capital, individual shareholders 40% and our employees 9%, getting close to the 10% target we set ourselves, thanks in particular to the 1% capital increase you approved at the 2020 AGM. In line with our distribution policy and aware of the very uncertain nature of the year ahead, we are proposing a dividend of €1.82, up 1.1% on last year.

Unless the pandemic forces us to repeat the digital version of this event, our AGM will be held in Lyon on April 6 at 5 p.m. at Hôtel Dieu. We are counting on your presence or your votes to exceed a 70% attendance rate, a symbolic threshold that would demonstrate the vitality of this democratic body. As far as possible, we will also organise an information meeting in Paris on April 8 at 4 p.m. at Salons Hoche.

Yours faithfully,