2022 FULL-YEAR
RESULTS
March 2nd, 2023
ANALYST PRESENTATION
OUR KEY INVESTMENT THESIS … AND HOW IT PLAYED OUT IN 2022
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CHAMPION OF
SUSTAINABLE
COMFORT ACROSS ALL
STAGES OF THE
ENERGY TRANSITION
- Acceleration of HHP and HPWH sales, on the back of the energy transition trend in Europe
- Demand for gas products sustained by renewal of installed base for higher efficiency, along with other energy transitions around the world
UNIQUELY BALANCED
COMMITMENT TO
BOTH HOT WATER
AND HEATING
- Increasing synergies and appeal for fully sustainable solutions
- Water-heatingtechnology diffusion facilitated by adoption of heating heat pumps in Europe
- Hot water: robust performance in high-potential markets, destocking-driven weakness in Americas in H2 and production disruption due to floods
GLOBAL FOOTPRINT OF
40+ MARKETS
SUPPORTED BY AN
INTEGRATED AND AGILE INDUSTRIAL BACK-END
- Distributed, centrally-managed procurement mitigated supply chain disruptions
- Geographic diversification reduced impact of China lockdowns & Russia-Ukraine war
- Ongoing recovery at two manufacturing plants after the floods in September - after several weeks of suspension
PROFITABLE GROWTH COMBINING STEADY
ORGANIC EXPANSION
WITH PROVEN M&A
TRACK RECORD
- Robust organic growth at +9% (ex-FX)
- Chromagen - deal closed in January 2022, integration progressed according to plan
- Centrotec Climate Systems - the largest M&A deal in company history announced in September 2022, closed on January 2nd 2023
SOLID FINANCIAL
PERFORMANCE AT TOP-
AND BOTTOM-LINE, LEAN BALANCE SHEET
- Total growth ca. +20%
- Solid Q4 performance drove FY EBIT Adjusted margin to 9.4%
- NWC decreased to 12% of sales, improved from September peak
- FY FCF lower than last year, significant generation in Q4
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2022 SAY/DO
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Outlook given one year ago | Actual performance | ||
«Organic growth above mid-term guidance | 9% organic + 3.9% FX + 6.8% Chromagen | ||
thanks to the tail of 2021 recovery, on top | |||
of ca. 5% added by Chromagen» | |||
«Perduring cost inflation and trade turbulences, especially in H1» | Situation started improving at the end of the year | ||
«Pricing actions expected to sustain margins despite minor dilution resulting | Pricing actions successfully implemented. | ||
from the Chromagen acquisition» | |||
EBIT Adjusted margin expectations trimmed from >10% to 9%-10% after the | FY EBIT Adjusted margin: 9.4% | ||
onset of war in Ukraine | |||
«Return towards normal seasonality: revenues, margins and cash flow» | Historic seasonality respected | ||
In Q4, double-digit AdjEBIT margin and >100% of yearly | |||
cash flow | |||
«Tax rate seen normalizing to ca. 23% (base case, subject to country mix)» | 22% | ||
«Continued scouting and pursuit of M&A options in our space, in different | Announced acquisition of Centrotec Climate Systems | ||
sizes and geographies» | (closed on Jan 2 2023) | ||
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NEW IN Q4 2022
RANGE EXTENSION OF NIMBUS HEAT PUMPS
- Built-In(pictured): all the hydraulic and system components inside a special cabinet that fits inside the external wall of a house, mainly addressing new buildings segment
- Split Hybrid: extension of hybrid technology from monobloc-only to split architecture, allows to bring the advantages of this
solution to all installation conditions
AXIOS ELECTRIC STORAGE WATER HEATERS
- New platform launched in South Africa
- Axios has been developed to satisfy new customer needs with improved easiness of installation and maintenance and highest energy efficiency, with 50L to 250L capacity
- The new Axios marks the debut of the global Ariston brand in the water-heating in South Africa
FOR PROFESSIONALS: NEW ARISTON NET PRO
- Worldwide release of a brand new ARISTON NET PRO tele-diagnosis platform featuring:
- Renewed user experience, widened product coverage and enhanced functionalities o Active Care: predictive maintenance powered by AI algorithms
- Refresh of "extended warranty" service contracts - now named SMART+PROTECTION - including ARISTON NET PRO tele- diagnosis to improve technicians' operational efficiency together with quality and speed of service
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Q4 2022 & FY 2022 NET REVENUE BY DIVISION
€M | Q4 2022 | Q4 2021 | Change | o/w M&A | |
Thermal Comfort | 600.3 | 521.8 | +15.0% | 35.4 | |
Burners | 28.1 | 26.6 | +5.7% | ||
Components | 25.1 | 26.6 | -5.8% | ||
Total | 653.5 | 575.0 | +13.6% | 35.4 | |
€M | FY 2022 | FY 2021 | Change | o/w M&A | |
Thermal Comfort | 2,187.4 | 1,807.0 | +21.1% | 135.4 | |
Burners | 95.9 | 94.6 | +1.4% | ||
Components | 95.5 | 85.8 | +11.3% | ||
Total | 2,378.8 | 1,987.3 | +19.7% | 135.4 | |
K E Y C O M M E N T S
- Thermal comfort: energy transition-related acceleration of sales of heating systems in Europe
- Growth generally driven by price and mix, with Water Heating YoY volume decrease in H2 against very strong comparables. Significant miss in sales due to flooded plants in Italy
- Burners: benefit from favourable mix change with surge in dual-fuel prevailing on decrease in oil
- Components: growth still driven by pricing and favourable mix despite Q4 decrease, due to different monthly distribution of sales (Q3 was +30%)
- Chromagen's integration progressing according to plan - sales above expectations with a low-single-digit margin
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Ariston Holding NV published this content on 02 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 March 2023 12:21:01 UTC.