Q EKORNES. July 15 th 2016

Transcription

1 Q EKORNES July 15 th 2016

2 Agenda Highlights Operational review Financial review Summary and outlook 2

3 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 3

4 Financial results Operating revenues Reported EBIT & margin Adjusted EBIT & margin NOK million NOK million NOK million ,2 767,4 787,5 918,5 759, ,3 % 62,4 12,4 % 95,4 7,7 % 60,6 21,5 % 197,3 9,6 % 72,6 25% 20% 15% 10% 5% ,6 % 79,7 14,7 % 112,7 9,9 % 77,9 13,9 % 14,3 % 127,3 108,8 25% 20% 15% 10% 5% 0 Q2 Q3 Q4 Q Q Q2 Q3 Q4 Q Q % 0 Q2 Q3 Q4 Q Q % 4

5 Operational review

6 Segments operating revenue NOK million ,5 749,2 767,4 787,5 759, , ,7 591,0 592,0 575,1 Stressless IMG Svane ,7 101,6 118,2 107,2 109,4 48,4 62,4 61,1 87,4 54,5 Q2 Q3 Q4 Q Q Contract 6

7 7

8 Stressless Stable revenues, year-over-year margin improvement Stable quarterly revenue supported by currency rates developments and strong market position Improvement in adjusted EBIT margin Higher product prices due to more advanced product Lower raw material costs Operating revenue and EBIT-margin (adj) NOK million , ,7 591,0 592,0 575, ,6 % ,9 % 11,1 % 10,3 % ,8 % 25% 20% 15% 10% 5% 0 Q2 Q3 Q4 Q Q % 8

9 Stressless Concentrating production to improve competitiveness Decision made in June to combine two Stressless sofa production facilities Closing down the Hareid facility and moving operation to Sykkylven Combination of facilities improves production efficiency Adjusts capacity Improve capacity utilisation Expected to yield annual cost savings exceeding NOK 10m The Sykkylven facility has capacity for current joint production and potential growth Adjusted Stressless production capacity with five days in Q2 Order situation monitored, capacity will be adjusted if necessary in Q3 9

10 Stressless Mixed market development Underlying order receipts on a par with Q2 15, while units delivered lower Explained by higher unit price and currency Norway UK/Ireland Southern Europe USA/Canada/Mexico Other Nordic Central-Europe Japan Distribution strategy evolved to increase number of sales outlets Focus on product innovation Asia sales includes: China Hong Kong Taiwan Korea Singapore Malaysia Indonesia India Mauritius Contract/Other markets Australia / NZ 10

11 11

12 IMG Stable development in revenues, increased margin NOK million Operating revenue and EBIT-margin Stable operating revenues Operating margin of 31.9% in Q2, up year-over-year and sequentially Positive effect from raw materials Increased manufacturing efficiency Change in product mix ,7 23,6 % 118,2 107,2 109,4 101,6 28.7% 31,9 % 29,7 % 29,1 % 28,7 % 40% 35% 30% 25% 20% 15% 10% 5% 0 Q2 Q3 Q4 Q Q % 12

13 IMG Stable markets Norway and Other Nordic USA/Canada/Mexico Stable development in most markets during Q2 Australia & Other 13

14 14

15 Svane Positive performance continues NOK million Operating revenue and EBIT-margin % Revnues up year-over-year H totalled NOK 141.9m, up from NOK 116m H1 Q2 is normally a weak quarter, EBIT-margin improved year-overyear ,4 62,4 61,1 18,5 % 48,4 54,5 9,1 % 0,6 % 1,7 % Q2 Q3 Q4 Q Q % 10% 0% -10% ,0 % -20% 15

16 Svane Positive market developments Norway Central-Europe Other Nordic Positive development in Norway Svane captured market share for the fourth consecutive quarter Higher revenue in almost all other markets as well 16

17 Ekornes Contract Strong development NOK million Operating revenue and EBIT-margin 22 40% Strong development mainly driven by deliveries to the shipping and offshore segments Despite difficult market conditions within the oil and offshore industry ,4 12,4 16,2 21,3 % 12,0 20,6 22,2 % 30% 20% 2 12,1 % 12,9 % 10,0 % 10% -3 Q2 Q3 Q4 Q Q % 17

18 Total order receipts and reserve NOK million Total order receipts and reserve Q2 Q3 Q4 Q Q Total order receipts Total order reserve Order receipts NOK 783m, up NOK 99m vs Q2 15 Total order reserve NOK 243m, down NOK 2m vs. Q2 15 Stressless and Svane down, IMG up Principle for order reserve currency translation changed, impacts also historical figures 18

19 Financial results (preliminary and unaudited)

20 Operating revenue NOK million ,2 767,4 787,5 918,5 759,6 Q2 revenue up NOK 10.3m from Q Growth driven by Ekornes Contract, Svane and IMG, Stressless marginally down NOK 8.2m Currency and unit prices supports Stressless revenue Underlying sales of units down 0 Q2 Q3 Q4 Q Q

21 Operating earnings and operating margin NOK million ,4 8,3 % 79,7 10,6 % 95,4 12,4 % 112,7 14,7 % 60,6 7,7 % 77,9 9,9 % 197,3 21,5 % 127,3 108,8 72,6 13,9 % 14,3 % 9,6 % Q2 Q3 Q4 Q Q Sum segments Reported EBIT margin Total adjusted EBIT Adjusted EBIT margin 40% 35% 30% 25% 20% 15% 10% 5% 0% Improved results and margins in all segments in Q2 and H Lower costs within IMG and Svane Lower raw materials prices Higher prices H adjusted operating earnings NOK 236.1m Up NOK 56.3m from H1 21

22 Operating earnings and operating margin (cont.) NOK million ,3 40% 35% ,3 112,7 108,8 95,4 21,5 % 79,7 77,9 72,6 62,4 14,7 % 60,6 13,9 % 14,3 % 10,6 % 12,4 % 9,9 % 9,6 % 8,3 % 7,7 % Q2 Q3 Q4 Q Q % 25% 20% 15% 10% 5% 0% Adjusted EBIT IMG contingent consideration NOK 17.3m Value change unrealised hedge contracts NOK 4.1m One-offs Hareid closure NOK 23m Sum segments Reported EBIT margin Total adjusted EBIT Adjusted EBIT margin 22

23 Earnings per share EPS per quarter EPS 12 months rolling NOK NOK NOK 8,00 8,00 8,00 7,00 7,00 7,00 6,00 6,00 6,79 5,96 6,00 5,00 5,00 5,00 4,79 4,91 4,99 4,00 4,00 4,00 3,00 3,00 3,00 2,00 2,94 2,00 2,00 1,00 0,00 0,77 Q2 1,42 Q3 0,83 Q4 Q ,61 Q ,00 0,00 Q2 Q3 EPS per year Improvement in Q2 EPS explained improved EBIT, better net financial items and lower tax rate Q4 Q Q ,00 0,00 7,45 6,95 6,04 4,35 5,

24 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 2016 Q2 investments low at NOK 18.2m NOK million Cash EBT Paid taxes Depr. & other operational activities 78 Change inventory, AR and AP 18 Investment activities 84 Net financing activities 127 Cash

25 Financial position Compared to YE : Short term interest bearing debt NOK 227m, down NOK 81.8m Well within covenants Undrawn facilities close to NOK 500m Total non-current liabilities decreased to NOK 23.4m. Contingent consideration regarding IMG classified as current liabilities. Equity ratio 59.1%, up from 52.3% dividend of NOK 147m paid in Q Decrease value forward contracts with NOK 194m. New value of forward contracts NOK 203.4m NOK million Non- Current assets Other current assets Equity Noncurrent liabilities Current liabilities 25

26 dividend of NOK 4 per share distributed in May Historical dividend distribution NOK per share 9,00 7,50 7,50 7,50 7,00 7,50 5,50 5,50 3,50 4,00 4,

27 Summary and outlook

28 Summary and outlook 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 28

29 Financial calendar Nov 7 th 2016 Q3 presentation CEO: Olav Holst-Dyrnes olav.holst.dyrnes@ekornes.com Mobile: CFO: Trine-Marie Hagen trine-marie.hagen@ekornes.com Mobile: