Ekornes ASA. Investor presentation. September 2016

Transcription

1 Ekornes ASA Investor presentation September

2 Ekornes in brief Owner and manager of world famous and Nordic furniture brands Highly specialized and automated production-facilities in Norway and Asia Global network of regional sales companies Around employees Annual revenues of NOK 3.1 billion () dividend of NOK 4.0 per share Share price NOK 101, market cap ~3.7 billion (Sept-21) Sales companies Factories 2

3 Overview of business segments FY Stressless IMG Svane Ekornes Contract Gross operating revenues in NOK mill Gross operating revenues in NOK mill Gross operating revenues in NOK mill Gross operating revenues in NOK mill EBIT in NOK mill EBIT in NOK mill EBIT in NOK mill EBIT in NOK mill. 8.0 No. of employees No. of employees No. of employees No. of employees

4 Business update

5 Q2 : Highlights Stable year-over-year second quarter revenues of NOK 759.5m Improved margins in all segments driven mainly by lower costs Focus on operational improvements within Stressless, concentrating production IMG, Svane and Ekornes Contract with continued positive development Stable, but low order reserve, mainly explained by Stressless dividend of NOK 4 per share distributed in May 5

6 Q2 : Financial performance Operating revenues Reported EBIT & margin Adjusted EBIT & margin 1, % % % % % % 20% 15% 10% 5% % % % % 14.3 % % 20% 15% 10% 5% 0 Q2 Q3 Q4 Q1 Q2 0 Q2 Q3 Q4 Q1 Q2 0% 0 Q2 Q3 Q4 Q1 Q2 0% 6

7 Q2 : Total order receipts and reserve 1, Order receipts NOK 783m, up NOK 99m vs Q2 15 Total order reserve NOK 243m, down NOK 2m vs. Q2 15 IMG up, Stressless and Svane down Principle for order reserve currency translation changed, impacts also historical figures 0 Q2 Q3 Q4 Q1 Q2 Total order receipts Total order reserve 7

8 Q2 : Cash flow dividend payment of NOK 147.3m in Q2 Inventory increased NOK 39m in Q2 NOK 63m increase in short term debt in Q2 Down NOK 81.7m in Q2 investments low at NOK 18.2m Cash EBT Paid taxes Depr. & other Change inventory, Investment activities operational AR and AP activities Net financing activities 127 Cash

9 Q2 : Financial position Compared to YE : 3,000 Short term interest bearing debt NOK 227m, down NOK 81.8m 2,500 Well within covenants Undrawn facilities close to NOK 500m 2,000 Total non-current liabilities decreased to NOK 23.4m. Contingent consideration regarding 1,500 IMG classified as current liabilities. Equity ratio 59.1%, up from 52.3% 1,000 dividend of NOK 147m paid in Q2 500 Decrease value forward contracts with NOK 194m. New value of forward contracts NOK 203.4m 0 Noncurrent assets Other current assets Cash Assets Equity Non-current liabilities Current liabilities Equity and Liabilities 9

10 Dividend over time Historical dividend distribution NOK per share

11 Quarterly revenue distribution , Stressless IMG Svane Q2 Q3 Q4 Q1 Q2 Contract 11

12 Stressless Stable revenues, y-o-y margin improvement Operating revenue and EBIT-margin (adj) % % 15% Norway UK/ Ireland Southern Europe USA/Canada/Mexico Other Nordic Central- Europe Japan % 13.6 % 11.1 % 11.9 % 10% Asia sales includes: China Hong Kong Taiwan Korea Singapore Malaysia Contract/ Other markets Indonesia % 5% India Mauritius Australia / NZ 0 Q2 Q3 Q4 Q1 Q2 0% 12

13 IMG Stable revenues, increased margin Operating revenue and EBIT-margin % 29.7 % 29.1 % 28.7 % 40% 35% 30% 25% Norway and Other Nordic USA/Canada/Mexico % 20% 15% 10% 5% Australia and Other 0 Q2 Q3 Q4 Q1 Q2 0% 13

14 Svane Positive performance continues Operating revenue and EBIT-margin % Norway % Other Nordic % % Central-Europe % % 1.7 % Q2 Q3 Q4 Q1 Q % 0% -10% -20% 14

15 Ekornes Contract Strong development Operating revenue and EBIT-margin 22 40% % % % 20% % 12.9 % 10.0 % 10% -3 Q2 Q3 Q4 Q1 Q2 0% 15

16 Strategy update

17 Financial development NOK % % % % % % % 5% % 15.0 % % % 500-5% % % % Operating revenue Annual growth (%) EPS Return on Assets

18 Financial targets Ekornes shall be one of the most profitable and sound enterprises within our line of business Annual return on total assets > 25% Net profit ratio > 15% Equity-to-asset ratio > 50% Annual turnover growth > 5% 18

19 Efforts to improve performance NOK 150 million cost reduction programme Reduce cost base by NOK 150 million run-rate by end of All parts of Ekornes are included Main focus on Stressless - and Svane -segment Maintain ability for innovation and growth Initiated August Concentrating production June : Combining Stressless sofa production facilities Combination of facilities improves production efficiency Adjusts capacity Improve capacity utilisation Expected to yield annual cost savings exceeding NOK 10m New facility with capacity to handle current production and future growth 19

20 EPS development EPS per quarter EPS per year NOK NOK NOK Q Q Q4 Q Q EPS 12 months rolling Q2 Q3 Q Q Q2 20

21 Summary and outlook September Stable year-over-year second quarter revenues of NOK 759.5m Improved margins in all segments Concentrating production IMG, Svane and Ekornes Contract with continued positive development Stable, but low order reserve, mainly explained by Stressless Focus on operational improvements within Stressless 21