Slides
Page 1
8 APRIL 2025 CAPITAL MARKETS DAY
Page 2
2 | This document is for information purposes only and does not constitute an offer to sell, exchange or buy, or an invitation to make offers to buy, securities issued by any of the companies mentioned. This financial information has been prepared in accordance with international financial reporting standards (IFRS). However, as it has not been audited, the information is not definitive and may be modified in the future. The assumptions, information and forecasts contained herein do not guarantee future results and are exposed to risks and uncertainties; actual results may differ significantly from those used in the assumptions and forecasts for various reasons. The information in this document may contain statements regarding future intentions, expectations or projections. All statements, other than those based on historical facts, are forward-looking statements, including, without limitation, those regarding our financial position, business strategy, management plans and objectives for future operations. Such forward-looking statements are affected, as such, by risks and uncertainties, which could mean that what actually happens does not correspond to them. These risks include, amongst others, seasonal fluctuations that may change demand, industry competition, economic and legal conditions, tariffs or restrictions on free trade and/or political instability in the markets where the Fluidra group operates or in those countries where the group's products are manufactured or distributed. Fluidra makes no commitment to issue updates or revisions concerning the forward-looking statements included in this financial information or concerning the expectations, events, conditions or circumstances on which these forward-looking statements are based. In any event, Fluidra provides information on these and other factors that may affect the company's forward-looking statements, business and financial results in documents filed with the Spanish national securities market commission. We invite all interested persons or entities to consult these documents. Alternative Performance Measures (APMs) This document and any related conference call or webcast (including a Q&A session) contain, in addition to the financial information prepared in accordance with IFRS, alternative performance measures (‘APMs’) as defined in the Guidelines issued by the European Securities and Markets Authority (‘ESMA’) on October 5, 2015. APMs are used by Fluidra’s management to evaluate the group’s financial performance, cash flows or financial position in making operational and strategic decisions for the group and therefore are useful information for investors and other stakeholders. Certain key APMs form part of executive directors, management and employees’ remuneration targets. APMs are prepared on a consistent basis for the periods presented in this document. They should be considered in addition to IFRS measurements, may differ to definitions given by regulatory bodies relevant to the group and to similarly titled measures presented by other companies. They have not been audited, reviewed or verified by the external auditor of Fluidra. For further details on the definition, explanation on the use, and reconciliation of APMs, please see the appendix as well as the “Alternative performance measures” document from our website here (link). DISCLAIMER DISCLAIMER
Page 3
3 | Eloi Planes | Executive ChairmanWELCOME AND UPDATE ON CURRENT TRADING Clara Valera | Strategy, Investor Relations and FP&A Senior Director
Page 4
4 | TODAY’S PRESENTERS Eloi Planes Executive Chairman Jaime Ramírez CEO Clara Valera Strategy, Investor Relations and FP&A Senior Director Jon Viner President of North America Carlos Franquesa President of Southern Europe, Australia and New Zealand David Méndez President of Central-Northern Europe and Emerging Markets Orlando Gadea VP Global Digital Marketing & Customer Service Jorge Maytorena Chief Operations Officer Carla Coloma Global Sustainability Director Xavier Tintoré CF&SO Note: Presenters in order of appearance Keith McQueen Chief Product Officer
Page 5
5 | AGENDA 15:00 h – 15:10 h Welcome and update on current trading Clara Valera | Eloi Planes | Xavier Tintoré 15:10 h – 15:20 h Introduction and purpose Eloi Planes 15:20 h – 15:30 h Why Fluidra wins Jaime Ramírez 15:30 h – 15:45 h Market post-pandemic and Fluidra positioning Clara Valera | Jaime Ramírez 15:45 h – 16:15 h Accelerate growth Jon Viner | Carlos Franquesa | David Méndez 16:15 h – 16:35 h Foster competitive differentiation Keith McQueen | Orlando Gadea 16:35 h – 16:55 h Break 16:55 h – 17:10 h Enhance operational excellence Jorge Maytorena 17:10 h – 17:15 h Sustainability strategy Carla Coloma 17:15 h – 17:30 h Investment priorities and capital allocation Xavier Tintoré 17:30 h – 17:35 h Closing remarks Jaime Ramírez 17:35 h – 18:05 h Q&A All In addition to financial information prepared in accordance with EU-IFRS, this presentation includes Alternative Performance Measures (APMs). For further details, please see the Appendix.
Page 6
6 | UPDATE ON CURRENT TRADING While short term macro-uncertainty remains, we keep our focus on strengthening the business for the long term and believe in the strong fundamentals of the industry and Fluidra • Good start to the year, with Q1 2025 preliminary sales up 7% YoY (5% organically) • Positive volume and price contribution • Sales growth across all regions • Taking action to offset impact of tariffs • Recently implemented price increases in North America (+3.5%) and further increases planned • Worked with suppliers to realign supply chain • Expect to offset impact of tariffs on P&L
Page 7
7 | INTRODUCTION AND PURPOSE Eloi Planes | Executive Chairman
Page 8
8 |
Page 9
9 | WE TURN WATER INTO A BETTER WORLD
Page 10
10 | WE HAVE DELIVERED EXCEPTIONAL GROWTH AND RETURNS SINCE IPO… 657 2,102 2007 2024 +220% CAGR c.7% Sales (€M) 95 477 2007 2024 +405% CAGR c.10% 14.4% 22.7% Adj. EBITDA (€M) and margin (%) 297% 331% 51% 20% Fluidra S&P 500 STOXX 600 IBEX 35 Fluidra CAGR c.7% Total shareholder return 2007-2024 (%)
Page 11
11 | …WITH EVEN FURTHER INCREASED STRENGTH IN THE LAST FIVE YEARS …Now the team will present how we will deliver further value our next phase of development 269 477 2019 2024 +78% CAGR c.12% 19.7% 22.7% Adj. EBITDA (€M) and margin (%) 1,368 2,102 2019 2024 +54% CAGR c.9% Sales (€M) 12% 17% 2019 2024 >460 bps ROCE % 168% 150% 74% 60% Fluidra S&P 500 STOXX 600 IBEX 35 Fluidra CAGR c.9% Total shareholder return 2019-2024 (%)
Page 12
12 | Jaime Ramírez | CEOWHY FLUIDRA WINS
Page 13
13 | WHY FLUIDRA WINS Leaders in customer-centric innovation, connectivity and sustainable pools – creating competitive differentiation Outstanding financial performance – growth and shareholder value creation enables optimal access to capital 1 #1 player with unique footprint and broadest product offering. Focus on operational excellence Excellent M&A track record and consistent capital allocation 2 3 5 Global leader in a structurally attractive industry, with long-term growth underpinned by resilient aftermarket Experienced and talented team4
Page 14
14 | READY FOR OUR NEXT PHASE OF DEVELOPMENT • #1 player worldwide, with diversified presence • Broadest product portfolio in the industry • Gained share to become #2 player in the US 2007-2017 POST IPO – PRE-MERGER 2018-2024 POST MERGER – TODAY Future NEXT PHASE OF GROWTH From €650M to €780M c.2% Sales CAGR 12.7% Adj. EBITDA margin 2017 c.11% average ROCE From €1.3bn to €2.1bn c.8% Sales CAGR 22.7% Adj. EBITDA margin 2024 From 11% to 17% ROCE • Reinforcing leadership and growing in high potential products and regions • Boosting innovation, digital, and product development • Maximizing productivity and efficiency along the value chain +6% to +8% annual sales growth >25% Adj. EBITDA margin >17% ROCE • Mostly European focused, with marginal presence in the US and more exposed to new construction • Restructuring and divesting non-pool businesses • #1 player in Europe and APAC
Page 15
15 | MEDIUM-TERM FINANCIAL OBJECTIVES Installed base growth Avg. Ticket on Equipment New Build growth Weather Market share gains Inorganic growth Market growth +4% to +6% +2% Additional Fluidra growth +/-1% Medium-term targets Annual sales growth Adjusted EBITDA margin ROCE >25% >17% +6% to+8%
Page 16
16 | STRATEGY AND ENABLERS TO DELIVER MEDIUM-TERM OBJECTIVES Culture, talent and organization Finance discipline Technology, data and Digital Ongoing transformation Sustainability roadmap Accelerate growth Enhance operational excellence Foster competitive differentiation
Page 17
17 | A NEW ORGANIZATION TO DELIVER ON STRATEGY New regional focus Global functional leaders CEO SE & ANZ(1) North America COO CPO CIO CHROCNE & EM(2) 1. SE & ANZ: Southern Europe, Australia & New Zealand 2. CNE & EM: Central-Northern Europe & Emerging Markets Leveraging scale and global capabilities with adapted go-to-market approach Strategy, IR and FP&A Senior Director CF&SO
Page 18
18 | LEADING GLOBAL FOOTPRINT WITH CLEAR REGIONAL FOCUS North America Market size: €9.0bn Market share: 10%, #2 Average cost of a pool: c.€100k Central-Northern Europe & Emerging Markets Market size: €4.2 Market share: 12%, #1 Average cost of a pool: Premium pool: c.€50k Basic pool: c.€5k Southern Europe, Australia & New Zealand Market size: €3.8bn Market share: 18%, #1 Average cost of a pool SE: c.€30k Providing growth potential and diversification Local presence Export markets
Page 19
19 | • Broadest product offering to meet customer needs: • Resi Pro, Consumer • Commercial Pro, Solutions • Innovation as a core competency and lever for differentiation • Technology and digital to offer connectivity, productivity and experience to our pros and consumers • Central operations team to drive operational excellence with global capabilities and regional execution to better serve our markets • Transformation office to connect organization with strategic priorities and deliver change SCALE AND GLOBAL CAPABILITIES TO ACCELERATE GROWTH AND DRIVE TRANSFORMATION
Page 20
20 | Jaime Ramírez | CEOMARKET POST PANDEMIC AND FLUIDRA’S POSITIONING Clara Valera | Strategy, Investor Relations and FP&A Senior Director
Page 21
21 | FLUIDRA LEADS IN AN ATTRACTIVE AND FRAGMENTED INDUSTRY Residential New Build 21% Residential Aftermarket 56% Commercial New build 9% Commercial Aftermarket 14% End demand breakdown 2024 MarketFluidra 12% Player #2 8% Player #3 5% Next 4 players 12% Others 63% Global Pool Market c.€17bn Global competitive landscape 2024 • Aftermarket provides resiliency and visibility • Well positioned in residential pool market with opportunity to grow • Significant expansion potential in commercial pool • Fluidra is #1 or #2 in countries representing 80% of the pool base where it is present – currently #2 in the US (vs #3 in 2019) • Highly fragmented market outside the US • Opportunity for consolidation >1,000 players 60% 30% 10% Fluidra Global Pool Market c.€17bn Source: management estimates
Page 22
22 | …provides a great space for relaxation and social gatherings …promotes physical activity and a healthy lifestyle …helps cool down the surrounding area, especially in summer …is ideal for family activities, especially with children …increases the property value Desire for pool as anchor to backyard experience drives demand A HOUSE WITH A POOL…
Page 23
23 | 13.6 19.6 2007 2024 United States Europe Latam ANZ RoW Residential in-ground global pool base (million units) New build feeds the installed pool base every year underpinning market growth CAGR: c.2% THE INSTALLED BASE GROWS ANNUALLY 1. ANZ: Australia & New Zealand
Page 24
24 | POOL MAINTENANCE UNDERPINS RESILIENT AFTERMARKET DEMAND Consumables, maintenance & repair Start Year 1 New build Year 17 onwards Remodel c.30%(1) (discretionary) (1) % of total market Aftermarket c.70%(1) (resilient) Once a new pool is built, it creates a reliable and predictable aftermarket spending Lifecycle of a pool Pool equipment is 10- 15% of the total pool’s budget More content per pool and connected bundle New pool costs more than doubled vs 10 years ago Aging, low-tech installed base = big opportunity for remodel/upgrade
Page 25
25 | …NEW POOLS CURRENTLY AT HISTORICAL LOW LEVELS Will drive growth as they return to normalized levels in the mid-term 128 203 321 143 249 174 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 United States France Spain Germany Australia Residential new pools: top 5 countries (thousand units) 1980-2024 avg: 215k units Correction from the overbuilding in the prior decade 2014-2024 avg: 206k units Top 5 countries: Around 55% of global installed base >70% Fluidra’s sales
Page 26
26 | SIGNIFICANT GROWTH OPPORTUNITY Global Commercial Pool market • Rising demand from hospitality, wellness, and recreation sectors fuels expansion • Aftermarket services offer long-term revenue stability and customer retention • Innovation and energy-efficient solutions drive competitive advantage Fluidra’s strategic positioning enables scalable growth Commercial New Build 40% Commercial Aftermarket 60% c.€4bn
Page 27
27 | A PROJECT WITH WATER FEATURES… … enhances visitor experience HMAC …attracts families …encourages fitness and well-being …creates inclusive spaces …enhances environmental profile …boosts business value Enjoying water drives Commercial Pool demand Leisure clubs & competition events Lagoons & Fountains Wellness FLUIDRA COVERS THE FULL RANGE 1. HMAC: Hotels, Motels, Apartments and Condominiums
Page 28
28 | OUR CUSTOMERS ARE AT THE CENTER OF WHAT WE DO Residential Pro Commercial ProConsumer We provide high-quality and reliable products and service helping improve productivity We provide specialized products, quality and service to help pros do their job faster and efficiently We make their pool easier and more enjoyable. We provide a hassle-free pool experience Residential Pool Commercial Pool Solutions We provide end-to-end solutions with deep know-how, expertise and project skills How Fluidra wins
Page 29
29 | ACCELERATE GROWTH Jon Viner| President of North America Carlos Franquesa| President of SE & ANZ David Méndez| President of CNE & EM
Page 30
30 | NORTH AMERICA
Page 31
31 | LARGEST, MOST PROFITABLE AND HIGHEST VALUE MARKET c.$100k AVG VALUE PER POOL 4.0M ABOVE-GROUND POOLS 6.0M INSTALLED BASE OF RESIDENTIAL POOLS 70k NEW IG RESIDENTIAL POOLS (2024) 360k COMMERCIAL POOLS
Page 32
32 | SECOND PLAYER IN MARKET WITH LARGEST OPPORTUNITY IN SIZE AND VALUE 1st player 13% Fluidra 10% 3rd player 9% Next 4 players 16% Others 52% Market size €9.0bn Residential new build 18% Residential aftermarket 58% Commercial 24% Demand breakdownCompetitors overview Relatively concentrated market Largest installed pool base. Favorable structural growth trends Higher value-added content per pool Opportunity for remodel and upgrade. Aged installed pool base
Page 33
33 | WHY FLUIDRA WINS Customer-centric approach delivering consistent market share gains Sales evolution vs other pool players 16% 8% 10% 11% CAGR (%) 2019 to 2024 Fluidra North America Player A Player B Player C Dealers network CAGR (%) 2019 to 2024 What sets us apart? • Customer centricity o Attentive, extensive and committed technical sales support • Loyal expanding dealer network o Long-lasting relationship coupled with exclusive marketing benefits • Fluidra bundle experience o Complete system with leading automation and smart system • Innovative products and systems creating best-in-class energy efficient pools & water conservation11% 10% 14% 16% Aftermarket New Builds $ # Accts
Page 34
34 | STRATEGIES FOR PROFITABLE GROWTH Accelerating growth • Boosting Residential Pro market share • Growing new build share – partner of choice with focused field sales & service support investment • Increasing share in the aftermarket – "drops right in" campaign • Enabling Pool Professionals – leveraging new digital tools • Commercial Pool – Increase share with HMAC focus & dedicated customer technical support center for institutional pools. • Connecting with Consumer - Fluidra Pool App, a catalyst to connect, communicate & generate demand with pool consumers #1 new build player, well positioned to deliver aftermarket growth
Page 35
35 | SOUTHERN EUROPE, AUSTRALIA AND NEW ZEALAND
Page 36
36 | OPPORTUNITY TO GAIN SHARE IN A MATURE AND RESILIENT MARKET 7 COUNTRIES 70 PRO CENTERS 4.8M INSTALLED BASE OF RESIDENTIAL POOLS 120k NEW IG RESIDENTIAL POOLS (2024) 25k CUSTOMERS
Page 37
37 | Fluidra 18% Next 4 regional players 14% Others 68% Market size €3.8bn UNDISPUTABLE LEADER INCREASING CAPILLARITY Strong relevance of aftermarket and existing park renewal Opportunity for consolidation Slow adoption of IoT to date proves opportunity to accelerate Existing technologies provide a solution for sustainability challenge Residential new build 26% Residential aftermarket 54% Commercial 19% Demand breakdownCompetitors overview
Page 38
38 | Fluidra Distribution SE & ANZ Sales €0.7bn 35% 55% 10% FLUIDRA MANUFACTURED PRODUCTS 75% 3rd PARTY SUPPLIERS 25% INTEGRATED VALUE CHAIN SERVING BROAD CUSTOMER BASE END USER Differentiated model to continue leading the market RESIPRO Wholesaler Installer Builder Services Maintenance CONSUMER E-commerce B&M retailers COMMERCIAL Contractor Distributor Builder Property owner Operator Specialist
Page 39
39 | WHY FLUIDRA WINS What sets us apart? • Capillarity – Strong sales network to provide the best customers’ support • Vertically integrated – One-stop shop from manufacturing to distribution • Reliability – Consistent high quality and great service • Product offering – New products and driving innovation • “One Fluidra” – A culture that’s all about fast, agile decision-making and getting things done #1 player in the region with further opportunity to gain share
Page 40
40 | STRATEGIES TO ACCELERATE PROFITABLE GROWTH Accelerating growth • Resi-Pro – Expand Pro-Center network, leverage online portal and strengthen the sales team • Consumer – Specialized sales teams, tailored brands and easy-to-install products to respond to growing demand • Commercial pool – Growing in prescription and new product • IoT bundle – Bringing both consumers and pros together on one connected app for a better experience • Opportunity to consolidate market Clear path to continue leading the region
Page 41
41 | CENTRAL-NORTHERN EUROPE AND EMERGING MARKETS
Page 42
42 | OVERVIEW OF THE REGION 300k NEW IG RESIDENTIAL POOLS (2024) 38 COUNTRIES LOCAL PRESENCE >1,800 EMPLOYEES 72 COMMERCIAL DELEGATIONS Local presence Export markets 8.8M INSTALLED BASE OF RESIDENTIAL POOLS
Page 43
43 | LEADING IN A DIVERSE MARKET BASIC POOL • Large residential installed base with fast growth • Low average value per pool (€5k) • Key to have local presence. Highly protected markets • Very fragmented market Fluidra has global and local teams focused on each market PREMIUM POOL • High average value per pool (€50k) • Top-tier quality, service & availability required • Market recognition of sustainable and connected solutions COMMERCIAL POOL • Markets predominantly driven by tourism • Low accessories penetration due to affordable household service • Increasing public investment supported by new urban developments
Page 44
44 | HIGH GROWTH POTENTIAL Residential Pool - 75% (New build 22%, Aftermarket 53%) Commercial Pool - 25% Only global player leading the market Fragmented market, with consolidation opportunities 8 countries representing >50% market size Competitors overview Pool market size €4.2bn Size by country Country 1 15% Country 2 14% Countries 3 to 8 23% Other countries 48%
Page 45
45 | WHY FLUIDRA WINS What makes us stronger • “Glocal”: only global player with local presence within the region • Vertically integrated with adapted/tailored product portfolio and go-to-market per region • Winning team in Commercial Pool with strong market recognition and end-to-end capabilities • Scale and financial capacity providing edge vs local players Unique platform for expansion in a region with high growth potential
Page 46
46 | STRATEGIES TO ACCELERATE GROWTH • Providing best-in-class service, availability and broad product offering • Expanding novelties and new products • Enhancing commercial excellence strategies • Increasing penetration in new and currently served markets • Growing Commercial Pool with strengthened product offer and turnkey solutions • Consolidating a fragmented market Accelerating growth 20 years ahead of any other global player – TIME TO ACCELERATE GROWTH
Page 47
47 | Orlando Gadea| VP Global Digital Marketing & Customer Service FOSTER COMPETITIVE DIFFERENTIATION Keith McQueen| CPO
Page 48
48 | BROADEST PRODUCT OFFERING IN THE INDUSTRY – UNIQUE PLATFORM Fully fledged product portfolio unique in the industry Connected bundle via Fluidra pool app All equipment and accessories needed to build a pool Adapted to local market needs High and consistent product quality and leading innovative product portfolio Residential equipment 64% Automatic cleaners 12% Chemicals & testing 11% Commercial Pool 9% Non-pool categories 4% FY 2024 sales breakdown by product category 1. ‘Residential equipment’ include hydraulics, heating/cooling, water treatment, lighting, automation, poolside deck equipment & water features, covers, specialty & other, fluid handling, pool basin & white goods 2. ‘APC’ includes suction and pressure cleaners, corded and cordless robots FY 2024 sales €2.1bn
Page 49
49 | Sustainability Connectivity Customer & user experience A connected ecosystem to enhance experience provides insights to run pool and business Making life easier for pool pros and end users Entire system connected and managed from an App Energy efficiency, water savings, reduced chemicals Can we create the positive pool of the future? PRODUCT INNOVATION TO CONTINUE TO CREATE DIFFERENTIATION Focus areas Customer and user-centric innovation Winning products Emerging technologies Time to market New business models How we win:
Page 50
50 | AN OPPORTUNITY TO LEVERAGE GLOBAL PLATFORM 56% sustainable product (as % of FY 2024 sales) 300 engineers(1) 6 R&D centers €55M R&D investment(2) (c.3% of FY 2024 sales) >1,700 patents worldwide >1 million connected pools c.20% vitality ratio 1. R&D and IoT 2. Capex and opex €20M VC fund to invest in emerging companies with unique technologies to reinforce our leadership R&D CENTERS MELBOURNE BARCELONA ATLANTA CARLSBAD TOULOUSE PUNE
Page 51
51 | UNLOCKING VALUE - FROM REGIONAL TO GLOBAL R&D …to global specialized product development From regional multiproduct engineering… • 5 design centers & 1 software center • Each center with broad scope of development • Custom product variations increasing cost / complexity • Fragmented talent • Duplicated efforts Faster time to market Optimised resource allocation Platform strategy - opportunity to simplify portfolio Operational efficiency - lower asset intensity, higher productivity Enhanced product quality • Engineering category teams • Global centers of excellence • Shared services • Common product platforms and standarised components • Strategic co-location and outsourcing Leveraging global capabilities for more efficient product development - enabling supply chain and manufacturing simplification Benefits
Page 52
52 | CASE STUDY: CUTTING-EDGE INNOVATION FOR PERFECT WATER TREATMENT Easy and convenient “all-in-one” installation Maximum efficiency Increased margin: up to 50% cost saving on cell material No maintenance needed Connectivity with Fluidra Pool app Continuing to lead this product category
Page 53
53 | OUR VISION FOR THE FUTURE: POSITIVE POOL Variable speed pump Uses up to 80% less energy Cartridge filter Reduces backwash water consumption by 90% Pool cover Prevents water evaporation by up to 90%, reduced energy and chemical needs Current technologies for a sustainable pool Tomorrow- ambition for a positive pool Wellness and entertainment Social connection and cohesion Health and safety Inclusive access and use Positive social impact Positive environmental impact Water-saving management Efficient chemical management Energy efficiency management Sanitizer Significantly reduces need for chemicals - better swimming experience
Page 54
54 | LEADING CHANGE FROM ANALOG TO DIGITAL CONTROL FROM ANALOG SYSTEMS…. TO A FULL INTEGRATED DIGITAL ECOSYSTEM Equipment self-adjusts for efficiency Diagnostics to aid repairs Personalized messaging to pool owner Command & control Fluidra first- mover advantage with leading pool control app Predictive maintenance & alerts Auto-balancing water THROUGH MULTIPLE CONNECTED DEVICES… Next generation of automation
Page 55
55 | CREATING COMPETITIVE DIFFERENTIATION BY BUILDING A DISRUPTIVE ECOSYSTEM Value creationDemand generation Data | Tech & system platforms | IOT END USERS POOL PROS DIGITAL TRANSFORMATION Help me run my business more efficiently Make my pool experience easy and entertaining SALES ENABLEMENT 1M Connected pools 3M 150K Pool pros 30K Pool prosConnected pools High-quality products for superior results that help professionals grow Effortless pool care solutions for crystal-clear water every time …that seamlessly connects pool professionals and owners continuously leading the industry
Page 56
56 | FLUIDRA POOL – EFFORTLESS POOL CARE SOLUTIONS FOR CRYSTAL WATER… END-TO-END JOURNEY SEAMLESS MANAGEMENTSEAMLESS ENJOYMENT ENGAGING USERS EVERYWHERE INTEGRATED POOLPOOL AUTOMATION …and continuous enjoyment More Less
Page 57
57 | Payments | Service logs Invoicing|Scheduling|M onitoring Sales|Subscriptions Pool owner Pool pro Retail stores INTEGRATED FLUIDRA POOLS - ENABLE RESI PROS TO SCALE… Today IOT enabled routes End-to-end connected experience …and build a moat around our business 1 company 8 technicians +400 pools 1 company 8 technicians +700 pools
Page 58
58 | FLUIDRA PRO – ACCELERATING VALUE CREATION …to drive growth and foster competitive differentiation Integrated pool Customer end-to-end Digital sales Drive scale Improve engagement Drive growth FLUIDRA PRO PRO Media center PRO academy Product configurator Pool monitoring Purchase PRO Area Customer journey Loyalty PRO club PRO Ecosystem +70 stores +150k stores
Page 59
59 | BRINGING A NEW STANDARD FOR INTEGRATED POOL EXPERIENCES …that will create deeper connections between professionals and pool owners
Page 60
60 | ENHANCE OPERATIONAL EXCELLENCE Jorge Maytorena| COO
Page 61
61 | Driving operational excellence with global capabilities and regional execution OPERATIONAL FOOTPRINT TO BE CLOSE TO CUSTOMER BASE BRINGING COMPETITIVE ADVANTAGE | 35 Manufacturing hubs +150 Distribution points +100,000 Products +10,000 Suppliers
Page 62
62 | UNLOCKING VALUE THROUGH OUR OPERATIONS STRATEGY | Best-in-class operations Agile, cost-effective, and customer-centric global integrated supply chain that drives operational excellence and enables growth Resilient, agile & sustainable supply chain Operations vision Strengthen process foundations Enablers and foundations Digital end-to-end Organization, capabilities and operating model High performance culture Employee experience and safety
Page 63
63 | BUILDING ON OUR SIMPLIFICATION PROGRAM, WHICH IS ON TRACK AND DELIVERING Reducing structure overlaps Global procurement negotiations Design to value SKU’s rationalization Accumulated savings to date Variable cost Fixed cost €31M €68M €100M Expected total gross savings FY 2023 FY 2024 FY 2025
Page 64
64 | TECHNOLOGY AN ENABLER TO DELIVER ON STRATEGY AND TRANSFORMATION | Investing for growth – c.€85M in the next 7 years Strategic enabler to business transformation New S&OP tool SAP pilot and rollout 2021 2022 2023 2024 2025 2026 2027-2031 c.€10M annuallyc.€15Mc.€20Mc.€10Mc.€10MAnnual investment Simplified processes Higher scalability & flexibility Business process standarization Cost reduction and operational efficiency
Page 65
65 | UNLOCKING UNTAPPED VALUE ALIGNED WITH OUR OPERATIONS STRATEGY | STRATEGIC THEME TODAY - SIMPLIFICATION NEXT OPPORTUNITY Strategic supplier management Global sourcing strategy focused on top 60+ suppliers to drive savings and efficiency Data-driven procurement & supplier collaboration to reduce costs and inefficiencies Design to Value DtV Lab with teardown & clean sheet toolkits, driving improvements across 8 product categories Expanding DtV from cost focus to full portfolio optimization with platforms and modularization Flexible and scalable footprint Footprint optimization within each region Future-proof footprint design based on core processes to maximize efficiency Focus on DtV and procurement savings Optimizing a global operating model and end-to-end strategy Opportunity to deliver additional €120M productivity and cost savings 2026-2030
Page 66
66 | SUSTAINABILITY STRATEGY Carla Coloma | Global Sustainability Director
Page 67
67 | RESPONSIBILITY BLUEPRINT: OUR ROADMAP (2020-2026) GOVERNANCE: Be at the forefront of the best corporate governance practices ENVIRONMENT: Contribute to sustainable development through our products and our activities SOCIAL: Enhance the wellbeing of our employees, our value chain and society Sustainable products Natural resources Climate action Diversity, equity and inclusion Commitment to community Quality employment Transparency Ethics Alliances We turn water into a better world
Page 68
68 | CLIMATE ACTION Carbon neutral in our operations by 2027 -55% Carbon emissions +21% Energy efficiency +10k Solar panels installed +40k Trees planted
Page 69
69 | WATER CARE Water positive in our operations by 2030 -4% m3/uds Produced in operations for 2025 9% Water replenished in 2025 16% Sales associated with water-saving solutions +100% Water replenished in 2030
Page 70
70 | Ratings serve as a benchmark for continuous improvement, guiding Fluidra toward excellence through transparency, performance measurement, and accountability RATINGS AS A CATALYST FOR EXCELLENCE 72/100 Included in the Sustainability Yearbook for 3rd time B Sustainability A- in 2023 AA Climate Change & Water A in 2023 Sustainability 0.9%89% Employee Engagement (2023) Adjusted gender Wage Gap Sustainable Products 60% in 2026 72% Critical suppliers audited Global NPS Employee turnover -27% VS LY 56% 13%7.33/10
Page 71
71 | Xavier Tintoré | CF&SO INVESTMENT PRIORITIES AND CAPITAL ALLOCATION
Page 72
72 | STRONG TRACK RECORD OF PROFITABLE GROWTH 168% 150% 74% 60% Total shareholder return 2019-2024 (%) Fluidra S&P 500 STOXX 600 IBEX 35 Fluidra CAGR c.9% +78% CAGR c.12% 1.4 0.5 2019 Sales Organic 0.2 Inorganic 2024 Sales 2.1 CAGR c.6% c.3% c.9% Sales bridge (€bn) +54% 2019 2024 19.7% 22.7% 269 477 Adj. EBITDA (€M) and margin (%)
Page 73
73 | M&A - A KEY LEVER TO CREATE VALUE IN A FRAGMENTED INDUSTRY Strategic focus areas • Strengthening product offering, aligning with core strategy – grow in Commercial Pool & focus on connected and sustainable pools • Expand distribution network – smaller regional players • Opportunity to grow geographically in areas with less market share Financially disciplined approach • ROCE as a key guiding metric, ensuring consistent capital allocation • Compelling valuation – c.7x EV/EBITDA multiple target • Synergy-driven acquisitions - focus on targets that deliver operational synergies and/or cross- selling opportunities across Fluidra’s ecosystem 2020 2023 2017 2021 2022 2024 2025
Page 74
74 | AIPER – TECHNOLOGY, GROWTH & INNOVATION IN POOL CLEANING Impressive Sales Performance ($M) 98 112 195 2022 2023 2024 41% CAGR Product roadmap & marketing strategy >80% Online Sales ~470 Professionals ~270 R&D engineers $20 million Investment in R&D Strategic supplier footprint in China and Vietnam Well-known consumer brands 50% 35% 15% North America Europe RoW R&D to offer cutting edge products with mid to high-end positioning $195M FY24 OPP Basic Features MPP Leading Features HPP Disruptive Features 2024 Scuba E1 Scuba S1 Scuba S1 Pro Scuba N1 Ultra Scuba SE Surfer S2 Scuba X1 Scuba X1 Pro Scuba X1 Pro Max Scuba S1 (2025) 2026-Beyond Next Generation 3rd Generation 2nd Generation Scuba N1600 20252023 Seagull SE Seagull Plus Seagull Pro 1st Generation AI-Powered Robotics Source: Company information
Page 75
75 | AIPER - COMPLEMENTARY STRENGHTS TO WIN IN A GROWING MARKET Fast-growing, technology driven and innovative cordless robotic pool cleaning player. Cleaner market remains largely underpenetrated, with adoption rates still below 25% Attractive consumer brand, direct to consumer go-to-market approach in category with substantial growth opportunity Structured in two steps with initial interest of 27% and product development collaboration. Phase II increasing interest to > 51% Partnership unlocking value by bringing together Fluidra’s global expertise, scale and capabilities with Aiper’s advanced technology. Aiper to focus on B2C while Fluidra continues to focus on B2B distribution Partnering with a talented team, with strong international experience and extensive track record in consumer electronics + 1 2 3 4 5
Page 76
76 | CONSISTENT CAPITAL ALLOCATION TO GENERATE VALUE – UNCHANGED FRAMEWORK Resilient balance sheet: Target to run the business at approximately 2x leverage in the medium term Value-accretive acquisitions • Acquisitions (>1% of sales CAGR) • Investment criteria focused on growth and returns above cost of capital by year 3 Dividends and others • Dividend payout ratio around 50% of Adjusted EPS • Additional returns if surplus cash (buy-backs or specials) Group RoCE target >17% Organic growth • Invest for growth and innovation • Capex inc. R&D (c.3% of net sales) Accumulated cash deployment since 2019 (c.€1.5bn) 25% 35% 40% 1 2 3
Page 77
77 | Strong cash generation and solid balance sheet provide flexibility SOLID BALANCE SHEET WITH LONG-DATED MATURITIES • TLB of €1,100M (60% USD / 40% EUR), with maturities up to 2029 and no covenants o c.80% of exposure to interest rates evolution is covered with swaps until 2026 • RCF of €450M, with maturities up to 2027 o Covenant: <4.5x leverage ratio only if >40% of RCF is drawn (currently <20% used) • Robust balance sheet recognized by rating agencies: o S&P: BB+ o Moody’s: Ba2 Net debt (€M) Refinanced debt in January 2022 757 582 1,069 1,319 1,172 1,1322.8x 1.8x 1.9x 2.6x 2.6x 2.4x 2019 2020 2021 2022 2023 2024 Leverage ratio (x)
Page 78
78 | Team focused on long-term value creation while taking action today to navigate uncertainty MEDIUM-TERM GUIDANCE Accelerate growth Enhance operational excellence Foster competitive differentiation Annual sales growth Adjusted EBITDA margin ROCE >25% >17% +6% to+8%
Page 79
79 | Jaime Ramírez | CEOCLOSING REMARKS
Page 80
80 | Well positioned to consistently generate value into the future Global leader in an industry driven by long-term structural growth dynamics • High and improving resilience – even in challenging macro-economic and geopolitical environment • Attractive industry with opportunities for growth and consolidation Positioned the business for growth and transformation • Accelerate growth and drive differentiation • Improve process and efficiency • Allocate capital with discipline CLOSING REMARKS
Page 81
81 | Q&A
Page 82
82 | APPENDIX
Page 83
83 | SHAREHOLDER RETURN 30 32 34 36 38 40 42 44 46 48 50 52 54 2020 2021 2022 2023 50% 2024 0.40 0.85 0.70 0.55 0.60 Payout ratio (%) Annual Gross amount (€/Share)(1) Consistent value creation for shareholders >160% of TSR since 2019 1. Proposed dividend for each fiscal year, which is paid in the following year
Page 84
84 | RESPONSIBILITY BLUEPRINT PERFORMANCE • Alliances • Transparency • Responsible Management • Quality Employment • Commitment to Community • DEI • Environmental management • Sustainable Products • Water • Climate Change Performance Targets Target KPI 2021 2022 2023 2024 2025 Final Carbon neutrality in operations t CO2 (sc 1+2) 20.980 15.653 12.046 9.392 6.262 2027 0 Carbon neutrality in our value chain t CO2 (sc 3) 9.215.449 7.228.948 9.688.774 13.621.475 - 2050 0 Use only renewable electricity % renewable electricity 71% 83% 86% 89% 92% 2027 100% Increase sustainable products sales % sustainable sales 41% 53% 51% 56% 58% 2035 80% Water positive in our operations m3/k€ sales 64 70 63 64 -4% 2030 -1 Performance Targets Target KPI 2021 2022 2023 2024 2025 Final Zero adj. gender net wage gap Wage gap 6,0% 3,3% 1,7% 0,9% ±3% 2024 ±3% Reduce incident rates LTIR 0,92 0,62 0,6 0,71 0,5 2030 0,25 Mantain the engagement level Engagement rate 89% 90% 89% - - 2025 >80% Benefit people from social action Nr. Beneficiaries (accu.) 22.701 28.902 48.055 106.322 170.206 2030 415.725 Performance Targets Target KPI 2021 2022 2023 2024 2025 Final Lead the S&P rating Score 60 66 66 72 72 2030 80 Improve NPS globally Global NPS 44 40 46 46 47 2025 47 Evaluate/audit all priority suppliers % assessments (accum.) 21% 39% 53% 69% 72% 2035 100% E S G
Page 85
85 | ALTERNATIVE PERFORMANCE MEASURES Fluidra’s financial statements are prepared according to IFRS and other applicable regulation. The financial information presented in this document also includes Alternative Performance Measures (‘APMs’) prepared according to the group’s reporting model. Please note that we have renamed “EBITDA”, “EBITA”, “Cash Net Profit” and “Cash EPS” to “Adjusted EBITDA”, “Adjusted EBITA”, “Adjusted Net Profit” and “Adjusted EPS”, respectively. For further details on the definition, explanation on the use, and reconciliation of APMs, please see the document “Alternative Performance Measures” that can be found within the “Shareholders and Investors” section from the Group’s website here (link). ● 'Opex' (Operational expenditure): refers to the total amount of operating expenses incurred to run the business. It includes 'personnel expenses' plus 'other operating expenses' net of i) 'income from the rendering of services', ii) 'work performed by the group and capitalized as non-current assets', iii) 'profit/loss from sales of fixed assets’, iv) ‘stock based compensation expense’ and v) the relevant portion of 'Restructuring, M&A and integration expenses related’ to 'Opex' ● 'Adjusted EBITDA': means earnings before interests, taxes, depreciation and amortization. It is calculated as 'sales of goods and finished products' less i) 'changes in inventories of finished goods and work in progress and raw material supplies', ii) 'personnel expenses' and iii) 'other operating expenses' net of i) 'income from the rendering of services', ii) 'work performed by the group and capitalized as non-current assets', iii) 'profit/loss from sales of fixed assets' and iv) 'Share in profit/(loss) for the year from investments accounted for using the equity method‘. The resulting figure is adjusted for ‘Stock based compensation expense’ and 'Restructuring, M&A and integration expenses' ● ‘Stock based compensation expense’ and 'Restructuring, M&A and integration expenses’: these expenses do not arise from ordinary business and, though they may be incurred in more than one period, they do not have continuity over time (unlike operating expenses) and they occur at a point in time or are related to a specific event. ‘Stock based compensation expense’ relates to the cost of management’s long-term incentive plan. ‘Restructuring, M&A and integration expenses’ relates primarily to the integration of recently- acquired companies or to restructuring activities, such as the implementation of the Simplification Program that began in the second half of 2022. Most of these costs impact ‘Opex’, although a relatively minor part affects the ‘Gross margin’ ● ‘Adjusted net profit' and ‘Adjusted EPS’: ‘Adjusted net profit’ is defined as ‘Profit/(loss) attributable to equity holders of the parent’ adjusted for i) ‘Restructuring, M&A and integration expenses’, ii) ‘Stock based compensation expense’, iii) ‘Amortization (PPA related)’ and iv) the non-cash portion of the financial result. ‘Adjusted EPS’ is ‘Adjusted net profit’ divided by the number of Company shares outstanding at the year-end, excluding the effect of treasury shares ● 'Operating net working capital’: is defined as the sum of the balance sheet items i) ‘inventories’ and ii) ‘trade and other receivables’, less ‘trade payables’, which excludes the part of ‘trade and other payables’ that is not entirely related to trading activities (mainly future payments of ordinary dividends and/or future payments of the acquisition price or options agreed with companies acquired, or earn-outs). This adjustment may have a relatively minor impact at the year-end, although it could be particularly relevant to some of the quarterly closings during the year ● 'Net debt', 'Net debt to Adjusted EBITDA ratio' and 'Net financial debt': ‘Net debt’ is calculated as the sum of i) ‘current and non-current bank borrowings and other marketable securities’, ii) ‘current and non-current lease liabilities’ and iii) ‘derivative financial liabilities’, net of i) ‘cash and cash equivalents’, ii) ‘non-current financial assets’, iii) ‘other current financial assets’ and iv) ‘derivative financial instruments’. ‘Net financial debt’ is simply ‘Net debt’ excluding lease liabilities. The ‘net debt/Adjusted EBITDA ratio’ is calculated as ‘Net debt’ divided by ‘Adjusted EBITDA’ generated in the past 12 months ● ‘ROCE’: “Return on Capital Employed” is a return-on-capital measure used in the business. It is calculated as last 12 months “Adjusted EBITA” divided by the sum of “cash equity” and “net debt”. “Cash equity” refers to “total equity” adjusted by €527 million, which reflects the difference between the average share price for the six-month period prior to the announcement of the merger with Zodiac (€7.4 per share, the share exchange value in the merger) and the share price on the completion date (€13.7 per share, the carrying amount of the Zodiac acquisition under IFRS), multiplied by 83 million new shares issued
Page 86
86 | THANK YOU! Should you have any further questions, please reach out to the Investor Relations team: Clara Valera - Strategy, Investor Relations and FP&A Senior Director Pol Neiro - Investor Relations Manager investor_relations@fluidra.com