Slides
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Capital Markets Day 2025 Claudius Moor (CEO), Uwe Schiller (CFO)
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9.00 9.30 Arbonia – One strategy Claudius Moor, CEO Zentralheize, Erfurt 9.30 10.00 Market outlook & financial targets Uwe Schiller, CFO Zentralheize, Erfurt 10.00 10.30 Q&A session all Zentralheize, Erfurt 11.00 12.00 Tour of Arbonia Next25 Uwe Schiller, CFO Zentralheize, Erfurt 12.00 12.45 Flying lunch all Zentralheize, Erfurt 1.00 1.30 Shuttle to Garant all Erfurt – Amt Wachsenburg 1.45 3.30 Tour of Garant factory all Garant, Amt Wachsenburg 4.00 5.30 Shuttle transfer to Leipzig airport all - - - - - - - - Time Topic Speaker Place Capital Markets Day 2025 | 27 March 2025 2 Schedule
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one
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play one
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one in Europe Number
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Delivery performance Process costs Customer service Product innovation Product quality Product range Place to work Brand Sustainability Maintenance Revenues Profitability Digitalization / AI Cash Flows
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face to the customer one
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stop for the customer one
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overarching brand one
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production footprint one
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vision one
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mission one
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strategy one
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The most desired door brand. Our vision
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We transform the architecture and enhance the understanding of solutions that connect spaces. Our mission
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Our strategy Arbonia one – Market leader in continental Europe Production sites of Arbonia1 Sales development of Arbonia (in EUR M) European Footprint standard doors specialized doors glass doors x Ichtershausen (DE) 1.0 M doors / year 2 Ciasna (PL) 1.0 M doors / year 3 Dimoldura (ES / PT) 1.0 M doors / year 4 Roggwil (CH) 100k doors / year 1 Korycany (CZ) 65k doors / year 3 Renchen (DE) 10k doors / year 2 Bozouls (FR) 80k doors / year 4 x Deggendorf (DE) 15'000 m² P-area 2 Dagmersellen (CH) 2'000 m² P-area 1 Dörzbach (DE) 6'000 m² prod.-area 4 x Key markets Export markets location std.-doors location spz.-doors location glass-doors Weinsheim (DE) 1.3 M doors / year 1 Plattling (DE) 600k units / year 3 1 2 3 4 4 4 4 1 32 4 3 1 2 4 71 306 310 323 340 510 550 516 640 0 200 400 600 800 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 Unit figures represent the production capacity of the individual locations | 2 Arbonia 2024 incl. Dimoldura and Lignis on a pro forma basis.
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Brand structure Group label Product labels Production sites PRÜM- Türenwerk GmbH RWD Schlatter AG INVADO Sp. z o.o. Interwand GmbH DIMOLDURA IBÉRICA, S.L. TPO Holz-Systeme GmbH Kermi GmbH Bekon- Koralle AG Arbonia Glassysteme GmbH GARANT Türen und Zargen GmbH joro Türen GmbH LIGNIS s.r.o.
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We are an international premium brand.
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We are a leading interior brand for room solutions made of wood, glass and metal.
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Which makes life at home and in public areas comfortable, stylish and safe.
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Our doors, shower enclosures and room divider systems combine our enthusiasm for innovation and design with outstanding material and craftsmanship quality.
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As a unique provider of a complete range, we offer end and contract customers exceptional creative freedom.
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As well as customized support from our first-class service teams and partners throughout Europe, from planning to maintenance - all from a single source.
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With 140 years of experience, we develop and produce innovative masterpieces that drive the interior sector forward.
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We are rethinking doors and fittings. Only when they work together do they develop their full effect and open up a wide range of interior design options.
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We produce in state-of-the-art plants in Europe Arbonia Investments in Industry 4.0 in the last 5 years EUR > 300 M Guaranteed delivery capability in the upswing Capacity reserves of > 30 %
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Integrated, seamless, cloud-based processes Machines Industrie 4.0 MES / MOTIS Visual 3D configuration Technical configuration SAP(ERP) Production system
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We generate our own energy from waste 50-60 % self-generated electricity1 > 100 % self-generated heat1 -28 % CO2 emissions1 1 In our two largest door factories Prüm and Garant.
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Steel frames cause 12 times more greenhouse gas emissions than wooden frames and have a 10 times greater impact on the environment. Wood as a key to success
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We promote sustainable products The use of a linoleum surface means 6.4 kg less CO2 per door compared to CPL.
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Open for aspiration.
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Agenda Recap 2024 Guidance 2025 Market outlook Mid-term guidance Q&A session Capital Markets Day 2025 | 27 March 2025 34
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New Arbonia with focus on Interior Doors Business Milestones in 2024 Enabling Focus Division Climate Strengthening of Doors Business • EU Commission approved sale of the Climate division on 28 January 2025 • Sale of Climate division closed on 26 February 2025, proceeds from the sale of EUR 742 million • Distribution of proceeds to shareholders proposed to AGM on 25 April 2025 • Focus on core business: sale of Zelgstrasse-property in Arbon on 19 June 2024 • Discontinued operations: sale of AFG RUS business signed on 3 March 2025 • Reducing corporate costs, amongst others through a reduced Board of Directors and lean corporate costs • Acquisition of Dimoldura / Lignis to successfully diversify to new geographies • Winning market share due project business and entering new sales channels • Start of operation of combined heat and power plant at Prüm enabling lower energy costs and improving sustainability Capital Markets Day 2025 | 27 March 2025 35
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Capital Markets Day 2025 | 27 March 2025 36 Gaining market leadership in continental Europe Acquisition of Dimoldura/Lignis in context Market structure: Pro-forma revenues 2024 with interior wooden and glass doors2 in CHF M 1 incl. windows, steel doors and steel frames | 2 Arbonia Doors pro-forma including Dimoldura/Lignis | 3 continuous pressure laminate. source: Euroconstruct (Dec. 2024) Core markets Core markets Arbonia Doors and … … combined with Dimoldura/Lignis Platform for growth UK/Nordics Jeld-Wen Europe (US) Arbonia (CH) Competitor 1 (DE) Competitor 2 (NL) Competitor 3 (DE) Competitor 4 (PL) Competitor 5 (DE) Competitor 6 (DE) 9641 6042 ~250 ~200 ~175 ~160 ~160 ~150 • Participation in growing Spanish construction market; new-built CAGR 2024-27 of 7.2%3 • Market entry France – Europe's 2nd largest construction market; dedicated sales team with 7 sales representatives • Market entry project business Eastern Europe • Lignis can utilize Arbonia's product portfolio • Own technical doors from Lignis combined with standard doors from Arbonia • "Market entry" Middle East • Dimoldura Revenue 2024 Middle East: EUR ~3 M • Order intake Middle East Jan. 2025: EUR ~4 M (only door frames from Dimoldura) • Complete product portfolio for DIY • CPL3 from Invado • White lacquer from Dimoldura • "Healthy" revenue diversification with reduced dependency from struggling German market
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Closing of sale of Division Climate Net cash / debt development post sale of Climate (estimate) Capital Markets Day 2025 | 27 March 2025 37 Net Cash End Feb’25 ~12 Trans. Costs 2025 Net Cash post transact. costs and tax 405 Distribution to Shareholders Net Debt post distribution ~(37) Estimated Net Debt Changes Mar-Dec’25 1) Net Debt Estimate YE’25 ~(50) Non-operating Assets 2) Net Debt post non- oper. Assets Net Debt ~(250) ~(238) ~167 ~130 ~80 Transaction closed on 26 February 2025 • Cash proceeds total EUR 742 M • Transaction closed at the beginning of the year, which is normally cash intensive due to normal seasonal patterns, hence, the purchase price compensated for the higher financial needs of Climate in these two months. • Low triple-digit million book gain expected from deconsolidation of Climate Net Debt development • CHF ~250 M Net Cash, as of end of Feb '25 • After distribution to shareholders of CHF 405 M and an expected positive impact for FY '25, Net Debt is expected at CHF ~130 M (of which ~30% IFRS 16 lease liabilities) • Accounting for all non-operating assets, Net Debt should improve by CHF ~50 M to CHF ~80 M, almost 50% of which are IFRS 16 liabilities 1 Estimated net debt change due to cash generation and increases in IFRS 16 liabilities (mainly CHP Prüm and Garant) 2 Non-operating assets with gross amount of about EUR 60 M resulting, after cost and deconsolidation, in a net debt improvement of about CHF 50 M
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Closing timeline General meeting after closing to decide on the repayment of funds Closing AGM Arbonia Payment date Ex date1 31.12.2024 28.01.2025 04.03.2025 FY 2024 results 25.04.2025 Approval by EU commission 26.02.2025 Resolutions: ordinary dividend FY '23 of CHF 0.30 ordinary dividend FY '24 of CHF 0.33 nominal value repayment of CHF 4.00 extraordinary dividend of CHF 1.20 29.04.2025 05.05.2025 Notice to creditors 27.02.2025 Note: record date on 28 April 2025 1 for the FY 2023 dividend of CHF 0.30 per share, the FY 2024 dividend of CHF 0.33 per share, the nominal value repayment of CHF 4.00 per share and the extraordinary distribution of CHF 1.20 per share CMD Arbonia 27.03.2025 Capital Markets Day 2025 | 27 March 2025 38
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2024 summary CHF 604.4 M CHF 48.7 M 8.1 % net revenues (pro-forma) adj. EBITDA (pro-forma) adj. EBITDA margin (pro-forma) 1. With acquisition of Dimoldura/Lignis, Arbonia took over market leadership in continental Europe, at the same time entering attractive markets in Spain, France, Portugal and the Czech Republic 2. Raising the market share in struggling German construction market by establishing Arbonia as a relevant player in the project business, winning several top reference projects, and other distribution channels (DIY in Germany, project business in CZ/SK) 3. Finalised investment programme for Doors through delivery and installation of machinery, ramp-up under way to significantly raise productivity and capacities 4. CHP plant at Prüm in full operation, producing energy from production waste, enabling energy cost savings and sustainability Continue to win market share Finalize ramp-up of Arbonia's Optimize Net Working Capital (NWC) and extend sales highly automatized factories further and increase Operating Cash Flow Financials 20241 Key messages Priorities 2025 Continue to build the leading door supplier in Europe Capital Markets Day 2025 | 27 March 2025 39 1 pro-forma for the acquisitions of Dimoldura/Lignis (excl. discontinued operations), incl. corporate costs
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Capital Markets Day 2025 | 27 March 2025 40 Establishing the European market leader for doors frames Development of Arbonia Doors 1 adjusted for FX and acquisition effects | 2 excl. one-time effects | 3 based on technical plant capacity in the respective year (Dimoldura/Lignis) | 4 pro-forma 2024 incl. Dimoldura/Lignis, excl. corporate costs | 5 excl. Dimoldura/Lignis Growth: Looser- acquisition (Completion Dec 2016) Integration of Prüm, Garant and Invado Capacity expansion and modernization Integration of BU Glass incl. acquisition of GVG Start of ERP harmonization org. Growth:1 SAP Go Live Invado; Joro- acquisition Interwand- acquisition Number of doors (in M pcs.) Capacity utilization (in %)3 0.5% 1.4%5.1% 12.2% 13.5%11.3%3.6% 10.7% 3 2017 2018 2019 2020 20212016 3.7% 5.0%2.1% 13.8% 2022 11.3% 3.8% 0.2%8.3% 6.9% 8.3% 2023 -8.2% -9.3% 2.2 2.3 2.4 2.5 2.5 2.3 2.0 EBITDA margin calculation with increasing volumes Additional 100k doors result in around 0.75-1.0pp EBITDA margin increase1.9 (+0.9) 2024 pro-forma -5.3% 19.9% 100% 102% 104% 102% 100% 88% 71% 66%5 Dimoldura/ Lignis acquisition 9.7%4 78 340 357 359 364 395 553 502 157 552 604 Dimoldura/Lignis (pro-forma) Glass Solutions Wood Solutions Doors Division 3 36 40 44 49 76 62 41 58 Milestones Net revenue (in CHF M) EBITDA2 (in CHF M)
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Capital Markets Day 2025 | 27 March 2025 41 Competitive landscape Strong market positions and attractive competitive environment DACH No. 1 UK Nordics CEE No. 4 Southeast Europe Arbonia's market position in Europe WSE No. 2 Net revenues in CHF MAdj. EBITDA in CHF M 201 630 964 175 602 Competitor 1 Competitor 2 Arbonia1 1,067 -9.7% -12.8% -4.4% 2023 2024 74 15 6061 12 58 Competitor 1 Competitor 2 Arbonia1 -17.0% -16.3% -3.3% organic growth: -9.7% -12.8% -2.1%1 adj. EBITDA- margin: 6.9% 6.3% 7.3% 7.0% 9.6%1 9.7%1 Note: based on annual reports | 1 pro-forma: incl. Dimoldura/Lignis for 2023 and 2024; Division Doors (exkl. Coporate Costs)
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Agenda Recap 2024 Guidance 2025 Market outlook Mid-term guidance Q&A session Capital Markets Day 2025 | 27 March 2025 42
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Capital Markets Day 2025 | 27 March 2025 43 2025 Guidance By leveraging: • Geographic distribution • Product portfolio ranging from standard to special doors • Project business and new sales channels Revenues should increase in 2025 Revenue Adjusted EBITDA Capex and NWC Due to modern factories with a high degree of automation, additional revenues come with higher EBITDA margins. In 2025, low to mid single digit cost savings from corporate and energy costs are expected Capex is expected to decline due to completion of investment program with spare capacity in the factories. Net Working Capital is already a low level. Rising revenues will have a negative impact on NWC and further improvements (from an already low level) will only partially compensate the increase. 3-5% net revenue growth1, from a pro- forma revenue of CHF 604 M in 2024 ~CHF 60 M adjusted EBITDA1 Declining Capex and only slight negative NWC is driving an expected Cash Flow improvement 1 assumes stable exchange rates (CHF/EUR) and normal development of material costs
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Agenda Recap 2024 Guidance 2025 Market outlook Mid-term guidance Q&A session Capital Markets Day 2025 | 27 March 2025 44
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Revenue breakdown Arbonia Including FX effects, continuing operations (excl. Climate) Capital Markets Day 2025 | 27 March 2025 45 49% 18% 12% 7% 7% 3% DE CH ES CEE FR NL/BE 2% AT 1% PT Others 2% 24% 5% 2% 2% 2% 4% 61% DE CH CEE1 AT SWE2 NL/BE Others 2023 2024 (pro-forma3) 1 CEE: Poland, Czechia, Hungary, Slovakia | 2 SWE: Spain, France, Portugal | 3 incl. full year revenue of Dimoldura, Roziere, Lignis in 2024 (pro-forma)
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Market outlook Development of residential building market in Germany 318 327 337 311 173 184 205 2019 2020 2021 2022 220220 2023 2024e 2025e 2026e 2.9% 2.9% -7.6% -29.4% -21.3% 6.7% 11.1% -23% 261 271 265 264 263 172 170 263 2019 2020 2021 2022 2023 215 2024e 2025e 2026e 3.8% -2.3% -0.4% -0.3% -18.2% -19.9% -1.4% -23% 2021 2022 2023 2024 2025e 2026e 0.3% -0.3% -1.4% -1.0% 1.5% 1.0% Absolute 02/2025 Absolute 06/2024 Growth/Decline Capital Markets Day 2025 | 27 March 2025 46 Building permits1 Building completions1 Growth/decline in renovations2 German residential new builds not expected to recover in 2025 • It is expected that 2024 represented the trough in building permits and on that low level, increases are expected from 2025 onwards • As for building completions, it is expected, that the decline is continuing but for 2026, there is a stabilization expected, on a low level • As for renovations, smaller market recovery is already expected in 2025 Interest forecasts indicates further decline in reference interest rates, which should be supportive for the building industry 1 according to B+L, 06/2024 and 02/2025 | 2 according to 98th Euroconstruct Report – Winter 2024
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Key takeaways of the German coalition's roadmap: • Creation of a special investment fund of EUR 500 B (for the next 12 years) to fund additional investments into hospitals, educational, science and (child) care infrastructure (amongst others), as well as research & development and digitisation • Enabling further investments by allowing federal states to raise new debt to a limit of 0.35% of GDP annually (EUR ~15 B annually) • Quick implementation of type E buildings into law 1, allowing to forego some building regulations • Improving availability of housing by focussing on building social housing • Lowering energy costs by EUR 0.05 per kWh by reducing transmission costs • Stimulate the economy via both a corporate and an income tax reform • Boosting investments through the creation of funds, combining private capital and public guarantees • Reducing bureaucratic costs for corporations by 25% in the next 4 years • Creating markets for climate neutral products Market outlook German construction market expected to benefit from investment fund Capital Markets Day 2025 | 27 March 2025 47 1 Building type E (easy) is supposed to facilitate faster and cheaper construction, by skipping unnecessary building regulations Added potential on top of existing German housing shortage
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Market outlook Interest rates, mortgages and housing completions -1% 0% 1% 2% 10 15 20 25 in % in CHF B 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1 2 3 4 2018 2020 2022 2024 2026 0 2 4 6 8 10 12 2019 2021 2023 2025 in % in EUR M Interest rates (in %)1 New mortgage volume (per month)1 10-year Bund forecast (median, in %) SARON 3-month comp. (in %) Mortgage volume (cum., in CHF B) SNB Policy Rate forecast (median, in %) Country Share 20232 20243 20253 20263 20273 France 30% -3% -15% -3% 0% Germany 27% -15% -18% -15% -6% Poland 20% -8% 3% 10% 3% Spain 8% 8% 16% 9% 8% Austria 5% -15% -17% -9% -3% Switzerland 4% 0% 1% 2% 2% Czechia 3% -2% 1% 1% 4% Portugal 2% 3% 7% 4% 3% Total 100% -7% -7% -1% 1% • 2025 with muted demand expected, especially in Germany and France • Recovery of Central Eastern European (CEE) markets expected • Markets in South Western Europe (SWE) expected to continue to grow • Renovation likely to remain on slowly growing • Non-residential subsectors (hotel, health, education) should continue to grow, even in declining markets Structural demand (housing shortages) continues to grow Capital Markets Day 2025 | 27 March 2025 48 GermanySwitzerland source: Swiss National Bank (03.2025); Deutsche Bundesbank (03.2025); Refinitiv poll (03.2025); Euroconstruct 98 (12.2024) | 1 new mortgages to private households with fixed rates for 5 to 10 years 2 of total housing completions for selected markets | 3 annual change Development of European Markets (housing completions)
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Market outlook Overview core markets1 • New built: Completions & permits have slowed down – despite structural population growth • Renovation (~2/3 of volumes): Mortgage volumes significantly improving YOY; stabilizing the decrease in new built • New built: After early and heavy hit by price inflation in 22/23, demand is growing with double-digit order volume increases (YOY) • Renovation: Positive momentum in residential renovation, due to subsidies and sizable demand-overhang • New built: Demand for housing stays high, not enough supply and increased demographic pressure stay in effect • Renovation: Unlikely to be a significant factor in the residential sector as the availability of subsidies remains scarce 497 458 347 302 285 286 308 393 341 288 240 246 399 54.1 2021 400 54.5 2022 54.9 2023 55.2 2024e 55.5 2025e 55.7 2026e 55.9 2027e Building permits (in 1'000s) Housing completions (in 1'000s) Housing stock (in M units) 427 384 343 340 310 299 275 282 304 317 27.3 2021 319 27.6 2022 307 27.8 2023 28.1 2024e 28.3 2025e 368 28.6 2026e 365 28.8 2027e 111 110 111 119 136 147 158 32.6 2021 32.7 2022 32.8 2023 32.9 2024e 33.0 2025e 33.1 2026e 33.2 2027e Capital Markets Day 2025 | 27 March 2025 49 D-A-CH2 Iberian Peninsula3 Central-Eastern Europe4 1 Residential building permits and housing completions, sum of relevant markets; source: Euroconstruct 98 (December 2024) | 2 Germany, Austria, Switzerland | 3 Spain, Portugal | 4 Poland, Czechia, Slovakia, Hungary
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Greater urbanisation is one of the biggest drivers of living demand over the next couple of decades Major cities continue to attract greater populations with clear consequences for housing demand The UN has forecasted that urbanization in Europe will increase from 75% to 84% by 2050 Barcelona +8.7% growth +510k people Lisbon +2.6% growth +76k people Madrid +10.8% growth +764k people Paris +8.2% growth +180k people Dublin +14.1% growth +211k people London +5.4% growth +499k people Berlin +4.2% growth +157k people source: Cushman & Wakefield: EMEA Living Report 2024, Eurostat Capital Markets Day 2025 | 27 March 2025 50 DE CH ES PT FR PLEU-27 AT CZ +206 +632 +654 +2,257 -404 +2,299 +340 -2,639 -247 2023 2030 2040 Prague +4.9% growth +67k people Vienna +7.8% growth +152k people Munich +6.1% growth +93k people Zurich area +13.2% growth +208k people Milan +5.0% growth +166k people Market outlook Urbanisation in selected, major European cities (2024 – 2040) and overall population development European population forecast (baseline scenario, in thousands)
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Market outlook Growth potential for Arbonia 28 million Interior doors 1.3 million Fire safety doors made from wood EUR 5.2 B total market ~20% Jeld-Wen ~10% Arbonia ~70% Others 28 M doors European market for wooden doors: • Little consolidation, only two pan-European competitors: Arbonia and Jeld-Wen • Arbonia has capacity for ~15% market share • A lot of national champions in European markets Leaving a lot of room for organic and inorganic growth in: • Iberian Peninsula • Central-Eastern Europe • BeNeLux, Italy, etc. 6% 4% 69% D-A-CH ES 7% FR CEE NL/BE Others 2% 12% CHF 604 Mio. Capital Markets Day 2025 | 27 March 2025 51 source: Interconnection Consulting Market Overview Doors in Europe 2024 | 1 market share is a blend of studies and management estimates | 2 incl. full year revenue of Dimoldura, Roziere, Lignis in 2024 (pro-forma) European Doors Market 2024 Market share Arbonia1 in terms of volume (wooden doors) Revenue split Arbonia (pro-forma)2 in CHF M
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Agenda Recap 2024 Guidance 2025 Market outlook Mid-term guidance Q&A session Capital Markets Day 2025 | 27 March 2025 52
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Mid-term guidance (until 2029) Without one-time effects and M&A • Raise market share • Market normalisation and recovery in Germany • Growth stimulus from interest rate cuts • Spare capacities after completed investment programme • Market expansion: development of new geographical markets and sales channels Revenue1 Adjusted EBITDA- margin1 Capex • Significant operational leverage, due to automation of the largest door plants brings competitive advantage and cost reduction • Economies of scale • Energy efficiency through automated, modern machinery and CHP plants • Improving profitability and cash flow due to lower investment costs • Due to recent inflation, same investments would require significantly higher investments • Net revenues: CHF 820 – 850 M in 2029 • EBITDA-margin: 14 – 15% in 2029 • Depreciation & amortisation (without PPA2) expected to rise to 6.0 – 6.5% of net revenues, with positive effect on taxes • Already low NWC will only slightly increase proportionally to revenues • Reduction to and Capex normalisation below 4% • IFRS 16 lease payments3 to rise to about CHF 6.0 M in 2025 (impact CHP plants) • Rising EBITDA, decreasing Capex and low taxes due to rising depreciation lead to an increasing Free Cash Flow • Enabling a dividend policy in the range of more than 30% of Net Income and a maximum of 50% of Free Cash Flow 1 assumes stable exchange rates (CHF/EUR) a market development as described in previous slides and normal development of material costs; includes initiatives for organic growth 2 PPA amortisation expected to reach CHF ~17 M (Dimoldura/Lignis) in 2025 with a linear decline to CHF ~13 M in 2027 and remain constant until 2029 3 in 2024 CHF 3.5 M amortizations and CHF 0.7 M interest Capital Markets Day 2025 | 27 March 2025 53
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Capital Markets Day 2025 | 27 March 2025 54 M&A: extending market leadership Value creating acquisitions of Dimoldura and Lignis • Participation in growing Spanish construction market; new-built CAGR 2024-27 of 7.2%1 • Market entry France – Europe's 2nd largest construction market • Market entry project business Eastern Europe • Lignis can utilize Arbonia's product portfolio: technical doors from Lignis combined with standard doors from Arbonia • Complete product portfolio for DIY • CPL2 from Invado • White lacquer from Dimoldura • Expand cross-selling between brands Core markets Value creating M&A deals to focus on 3 pillars: Extending geographic footprint Extending product range Diversifying sales channels Core markets Arbonia Doors and … … combined with Dimoldura/Lignis Platform for growth 1 source: Euroconstruct (Dec. 2024) | 2 continuous pressure laminate
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Agenda Recap 2024 Guidance 2025 Market outlook Mid-term guidance Q&A session Capital Markets Day 2025 | 27 March 2025 55
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Appendix Capital Markets Day 2025 | 27 March 2025 56
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Capital Markets Day 2025 | 27 March 2025 57 Gaining market leadership in continental Europe Acquisition of Dimoldura/Lignis in context Market structure: Pro-forma revenues 2024 with interior wooden and glass doors2 in CHF M • Participation in growing Spanish construction market; new-built CAGR 2024-27 of 7.2%3 • Market entry France – Europe's 2nd largest construction market; dedicated sales team with 7 sales representatives • Market entry project business Eastern Europe • Lignis can utilize Arbonia's product portfolio • Own technical doors from Lignis combined with standard doors from Arbonia • "Market entry" Middle East • Dimoldura Revenue 2024 Middle East: EUR ~3 M • Order intake Middle East Jan. 2025: EUR ~4 M (only door frames from Dimoldura) • Complete product portfolio for DIY • CPL3 from Invado • White lacquer from Dimoldura • "Healthy" revenue diversification with reduced dependency from struggling German market Core markets UK/Nordics Jeld-Wen Europe (US) Arbonia (CH) Competitor 1 (DE) Competitor 2 (NL) Competitor 3 (DE) Competitor 4 (PL) Competitor 5 (DE) Competitor 6 (DE) 9641 6042 ~250 ~200 ~175 ~160 ~160 ~150 Core markets Arbonia Doors and … … combined with Dimoldura/Lignis Platform for growth 1 incl. windows, steel doors and steel frames | 2 Arbonia Doors pro-forma including Dimoldura/Lignis | 3 continuous pressure laminate. source: Euroconstruct (Dec. 2024)
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• From designs made for purpose to customized support, Arbonia covers the complete life-cycle of a door, which enables the continued growth of the project business • Raised the market share in a competitive market through successful bids for several projects, adding to a diversifying sales channel • Dedicated project business team enabling the establishment of long-term relationships with customers • Especially customers in the hotel sector appreciate custom solutions for highest demands • More and more housing companies are also increasingly interested in Arbonia's holistic approach • Additionally, volumes from project business support capacity utilization and productivity of production lines Project business delivering double-digit growth for 2nd year in a row Winning market share in the project business (Objektgeschäft) 2024 highlights Capital Markets Day 2025 | 27 March 2025 58
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2024 Arbonia Group Financial Results Revenue decline reduced – EBITDA decline almost stopped in CHF M Acquisitions One-time effects 2024 Revenues reported 2022 2023 2024 excl. Acquisitions -9.2% -5.0% Revenue decline significantly improved • Revenue excluding acquisitions YoY decline of 5.0% versus 9.2% in 2023 • Organic revenue (adjusted for acquisitions and FX) declined -5.4% in 2024 versus -8.2% in 2023 • Dimoldura/Lignis acquisitions contributed CHF 77.0 M since acquisition (mid of May for Dimoldura and beginning of July for Lignis) • Pro-forma revenues for the full year would have been CHF 604 M EBITDA decline significantly slowed down • Past investments drive operational efficiency in the factories • Costs and FTEs in our factories are under control All measures resulted in almost stopping the EBITDA decline • Pro-forma EBITDA for the full year, excluding one-time effects, would have been CHF 49 M, resulting in an EBITDA margin of 8.1% • Corporate costs are too high for the size of the continued operations, indicating cost saving potentials RevenuesEBITDA 556 505 479 77 556 50 32 31 66 10 25 2022 2023 2024 excl. Acquisitions Acquisitions One-time effects 2024 EBITDA reported -35.8% -1.5% Capital Markets Day 2025 | 27 March 2025 59
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2024 Division Doors - excluding corporate costs Revenue decline in 2024 is softening • Division Doors is a CHF 602 M business • Revenue decline softened significantly in CHF • EUR:CHF FX impacted the business negatively by 2.3% EBITDA stabilized, margin reaching almost 10% • Pro-forma EBITDA YoY declined -3.5% compared to -25.3% in 2023 • Operational efficiency in the factories, FTE and cost management almost stopped the EBITDA decline • About CHF -1.4 M (-2.3%) decline related to EUR:CHF FX impact Free Cash Flow still impacted by high Capex • 2024 still had significant investments into the factories but Capex declining by about 14% in 2024 • Going forward, Capex is expected to decline further as all major projects are expected to be finished, hence, primarily maintenance Capex will be needed • NWC was significantly improved in 2023 with continuing but smaller improvement in 2024 • Arbonia's Doors division gained market share and is operating at better margins than its competitors • In the difficult macro-economic environment, it continued its path to have highly automated factories to produce high-quality doors in a cost-efficient way • M&A extended the geographic footprint to Spain, France, Portugal and Czech Republic, reducing the dependency on the German market • Current trading update: good start into 2025 with good order intake and financial results as expected Revenues Revenues and adj. EBITDA pro-forma for the acquisition of Dimoldura/Lignis in CHF M 680 630 602 -7.4% -4.4% 81 60 58 11.9% 9.6% 9.7% -25.3% -3.5% Adj. EBITDA 23 63 69 -99 -57 -49 -76 6 19 2022 2023 2024 -107.4% +246.3% Cash Flow (no pro -forma) Op. Cash FlowCapex Capital Markets Day 2025 | 27 March 2025 60
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2 7 2024 Depr. & Amort. reported Acquisitions 2024 Arbonia Group Financial Results Depreciations and Amortization are expected to rise • PPA amortizations increased in 2024 due to the acquisitions of Dimoldura/Lignis • Activation of past investments, e.g. combined heat and power engines and SAP introduction, will be activated in 2025 and following years, hence, depreciations on plants and amortization of software will continue to rise over the next few years • Higher depreciations & amortization will continue to have a positive impact on tax payments Negative EBIT driven mainly by high depreciation and amortization • Adjusting for acquisitions and one-time effects, the EBIT decreased due to slightly lower EBITDA and slightly increased depreciations • EBIT in general will be impacted by higher depreciations & amortizations, as well as PPA amortizations in the future Depr. & Amort.EBIT EBIT impacted by past investments and acquisitions in CHF M 26 29 31 11 12 11 2022 2023 2024 excl. Acquisitions 37 41 42 +8.8% +3.7% 12 -9 -11 3 25 2022 2023 2024 excl. Acquisitions Acquisitions One-time effects 2024 17-170.2% -21.8% Depr. & Amort. PPA Amort. Depr. & Amort. Capital Markets Day 2025 | 27 March 2025 61
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NWC1 Group Level As reported, continuing operations (excl. Climate) in CHF M Operational NWC, adjusted for acquisitions improved • Operational NWC, including the acquisitions of Dimoldura/Lignis increased by 13.6%, resulting in 13.5% of net revenues • Adjusted for the acquisition of Dimoldura/Lignis , NWC decreased by 23% resulting in 11.5% of net revenues • The improvement was primarily driven by lower receivables compared to year end 2023 NWC increased due to the acquisition of Dimoldura Lignis • Dimoldura/Lignis contributed CHF 21.5 M to the NWC. Receivables and payables are contributing CHF 5.7 M and inventories CHF 20.8 M • The increase in NWC as percentage of net revenues is mainly driven by higher inventories at Dimoldura related to unfinished and finished goods Operational NWC1NWC 71 55 81 26 +13.6% -23.0% 1Op. NWC: AR + AR (project business) + inventories + contract asset (project business) - AP - prepayments from customers - contract liability (project business) NWC: Op. NWC +/- other current assets/liabilities + deferred expenses +/- current income tax receivables/liabilities accruals and deferred income - current provisions 2 as percentage of pro forma net revenue (FY net revenue of Dimoldura Lignis included) 14.2% 11.5% 13.5% 33 29 50 21 2023 2024 Acquisitions 2024 incl. Dimoldura/Lignis +55.4%-10.1% 6.5% 6.2% 8.5% Acquisitions NWC in % of NR NWC Capital Markets Day 2025 | 27 March 2025 62
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Capex in % of Net Revenue 1 excl. repurchase Corporate Center CHF 25.1m Arbonia Group Doors As reported, continuing operations (excl. Climate) in CHF M 46 26 33 58 33 17 25 Strategic Capex Corporate Center Maintenance Capex 1041 59 50 -54.3% -15.2% 41 25 32 58 33 17 Strategic Capex Maintenance Capex 99 57 49 -42.2% -13.9% 18.8% In % of NR Corporate Center 4.5% 23.3% 11.7% 9.0% 17.9% 11.4% 8.9% In % of NR Capital Markets Day 2025 | 27 March 2025 63
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Cash Flow1 and Net Debt Development 1 Op. CF: Change Op. NWC PY CY + EBITDA adj.- Capex | Free Cash Flow: Cash Flow from operating and investing activities Operational Cash Flow remained stable • Cash Flow from operations remained stable and with declining Capex, Cash Flow after Capex improved from CHF 1 M to CHF 10 M • Capex is expected to fade over the coming years Free Cash Flow impacted by acquisitions • Free Cash Flow was impacted by the acquisitions of Dimoldura/Lignis 50 100 150 200 250 300 350 400 Net Debt also impacted by acquisitions • Net Debt (and IFRS 16 leasing liabilities) are increasing mainly due to the acquisition of Dimoldura Operational Cash Flow and CapexFree Cash Flow Net Debt Development (incl. Climate) Continuing operations (excl. Climate) in CHF M 60 60 -59 -50 2023 2024 1 10 +900.0% Op. CF excl. Capex Capex -12 -101 2023 2024 -727.7% 284 321 36 1.61x 22 24 184 308 357 2022 2023 2024 162 2.85x 3.05x Capital Markets Day 2025 | 27 March 2025 64
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Income StatementAs reported, continuing operations (excl. Climate) EBITDA one-time effects (CHF 24.6 M total net) • Other operating income CHF +28.8 M sale of Zelgstrasse • Personnel expenses CHF -2.3 M various staff reduction measures • Other expenses CHF -1.9 M primarily M&A related transaction costs • EBITDA EBITDA with one-time effects positively affected by CHF 24.6 M • EBIT EBIT with one-time effects positively affected by CHF 24.6 M • Income tax positive effect of CHF 3.2 M • Group result Net Profit with one-time effects positively affected by CHF 21.4 M In CHF m 2024 in % 2023 in % Net Revenues 556.3 100.0 504.6 100.0 Cost of material and goods -216.0 -38.8 -199.7 -39.6 Personnel expenses -209.7 -37.7 -186.2 -36.9 Other operating expenses -105.3 -18.9 -96.4 -19.1 EBITDA 66.3 11.9 31.9 6.3 Depreciation, amortisation and impairments -33.3 -6.0 -29.0 -5.7 EBITA 32.9 5.9 2.9 0.6 PPA amortisation -16.0 -2.9 -11.6 -2.3 EBIT 16.9 3.0 -8.7 -1.7 Net financial result -8.8 -1.6 -15.2 -3.0 Group result before income tax 8.1 1.5 -23.9 -4.7 Income tax expense -5.4 -1.0 9.8 1.9 Group result from contin. operations 2.7 0.5 -14.1 -2.8 Group result from discont. operations 5.5 1.0 -3.1 -0.6 Group result 8.3 1.5 -17.2 -3.4 EBITDA one -time effects (CHF 24.6 M total net) Capital Markets Day 2025 | 27 March 2025 65
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Consolidated Balance Sheet, Assets Incl. discontinued operations • Recognition of the assets of the Climate division and AFG RUS under "Assets held for sale" • CHF 646.5 M of assets are offset by CHF 212.3 M of liabilities, resulting in net asset position of CHF 434.2 M • Acquisition of Dimoldura increased inventories, intangible assets and goodwill 31.12.2024 % 31.12.2023 % 23’639 17’160 46’072 50’041 11’931 8’209 75’779 55’415 11’417 7’068 4’535 4’137 6’489 8’401 646’453 619’812 826’315 48.6 770’243 52.0 432’204 393’140 18’833 8’202 4’072 5’300 163’186 106’491 189’830 146’123 14’916 6’051 27’217 24’513 23’608 22’515 873’866 51.4 712’335 48.0 1’700’181 100.0 1’482’578 100.0 in 1’000 CHF Assets Cash and cash equivalents Accounts receivable Other current assets Inventories Contract assets Deferred expenses Current income tax receivables Assets held for sale Current assets Property, plant and equipment Right-of-use assets Investment property Intangible assets Goodwill Deferred income tax assets Capitalised pension surplus Financial assets Non-current assets Total assets Assets held for sale Acquisition Dimoldura Capital Markets Day 2025 | 27 March 2025 66
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Consolidated Balance Sheet, Liabilities and shareholders' equity Incl. discontinued operations • Increase of short-term financial debts due to: Increase in syndicated loan Reclassification of promissory note from long- to short- term Bridge financing of the acquisitions of Dimoldura/Lignis Long-term debt acquired from Dimoldura • Increase in shareholder equity due to the rise in other reserves by CHF 11 M (due to hedging and FX) and the increase in retained earnings by CHF 13 M (due to positive group result and remeasurement of employee benefit obligations) • Liabilities from discontinued operations CHF 212.3 M, which are significantly lower than the assets held for sale CHF 646.5 M in 1’000 CHF 31.12.2024 Liabilities and shareholders’ equity Accounts payable 45’126 % 31.12.2023 % 33’139 Contract liabilities 5’545 7’935 Other liabilities 12’405 12’060 Financial debts 337’731 134’346 Lease liabilities 4’133 1’994 Accruals and deferred income 30’105 31’281 Current income tax liabilities 9’004 12’412 Provisions 3’042 3’626 Liabilities associated with assets held for sale 212’275 195’193 Current liabilities 659’366 38.8 431’986 29.1 Financial debts 17’447 74’926 Lease liabilities 15’182 6’317 Other liabilities 144 519 Provisions 4’947 4’633 Deferred income tax liabilities 43’725 31’526 Employee benefit obligations 12’952 11’700 Non-current liabilities 94’397 5.6 129’621 8.7 Total liabilities 753’763 44.3 561’607 37.9 Shareholders’ equity 946’418 55.7 920’971 62.1 Total liabilities and shareholders’ equity 1’700’181 100.0 1’482’578 100.0 Financial debt Liabilities related to assets held for sale Equity Capital Markets Day 2025 | 27 March 2025 67
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Consolidated Cash Flow Statement Incl. discontinued operations • Cash Flow from operating activities reduced from CHF 101.0 M to CHF 41.3 M mainly due to lower change in NWC and higher tax payments • Higher tax payments resulted partially from discontinued business and future tax payments of continuing operations are expected to be significantly lower • Investments in property, plant and equipment has been reduced as planned • Acquisitions of Dimoldura/Lignis is also reflected • Sale of investment properties (Zelgstr.) is shown as net of repayment of mortgage • Absolut NWC has been significantly reduced in 2023. On the low level, some further improvements have been achieved, mainly managing the receivables • Operationally, the NWC has been improved but this was partially compensated by higher NWC from the acquisitions of Dimoldura/Lignis • Purchase of 83'034 own shares at an average price of CHF 12.95 in 1’000 CHF 2024 Group result 8’279 Depreciation, amortisation and impairments 72’117 2023 -17’212 77’813 Profit/loss on disposal of non-current assets -28’610 -310 Changes in non-cash transactions 5’467 19’272 Net interest expense 14’856 9’680 Income tax expense 15’862 -6’262 Changes in working capital 2’912 37’468 Changes in current liabilities -15’584 -3’142 Interest paid -14’103 -8’999 Interest received 415 448 Income tax paid -20’269 -7’762 Cash flows from operating activities - net 41’342 100’994 To investment activities Purchases of property, plant and equipment -55’570 -77’578 Purchases of investment properties -13 -1’086 Purchases of intangible assets -18’805 -14’320 Acquisition of subsidiaries (net of cash acquired) -107’432 -4’374 Issuance of financial assets -585 -1’799 From divestment activities Proceeds from sale of property, plant and equipment 624 512 Proceeds from sale of intangible assets 40 0 Cash flows from investing activities - net -162’686 -98’623 From financing activities Proceeds from financial debts To financing activities Repayment of financial debts -68’167 -200’337 Lease liability payments -9’383 -8’598 Dividend and distribution from capital contribution reserves Purchase of treasury shares -1’075 -2’722 Cash flows from financing activities - net Effects of translation differences on cash and cash equivalents -297 -2’056 Change in cash and cash equivalents 8’295 1’720 208’561 233’496 0 -20’434 129’936 1’405 Proceeds from sale of investment properties 19’051 0 Repayment of financial assets 4 22 Change in Net Working Capital (NWC) Cash Flow from operating activities Cash Flow from investing activities Purchase of own shares Capital Markets Day 2025 | 27 March 2025 68
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EBITDA Bridge 12.2023 – 12.2024 1) Actual December 2023 2) SPI - Sales-Price-Increase 3) SVI - Sales-Volume-Increase 4) MCC - Material-Cost-Change 5) SI - Salary-Increase 6) PI - Productivity-Increase 7) Energy-Cost-Change 8) Residual (logistics costs, marketing, etc.) 9) FX-Effect 10) Actual December 2024 Explanations: DIV Doors1 in CHF m 41.4 40.2 51.211.0 SPI SVI EBITDA M12 2024 Dimoldura, Rozière, Lignis, Interwand ACT 12/2024 w/o. Acq. FX-EffectResidualECCPISIMCCEBITDA M12 2023 +9.8 Mio. +23.7% 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 1 excluding one-time effects Capital Markets Day 2025 | 27 March 2025 69
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Organic growth1 continuing operations 1 adjusted for FX and acquisition Net revenues as reported in CHF M 2024 2023 Δ Year Total FX effect Acq. effect Organic growth1 Arbonia Group 556.3 504.6 +10.2% -1.6% +17.2% -5.4% Wood Solutions 425.2 367.5 +15.7% -1.1% +20.9% -4.1% Glass Solutions 129.4 134.4 -3.7% -2.7% +7.3% -8.3% Capital Markets Day 2025 | 27 March 2025 70
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Arbonia AG Amriswilerstrasse 50, CH-9320 Arbon www.arbonia.com Ansprechpartner: Thank you! Investor Relations +41 71 447 45 54 ir@arbonia.com