Flügger A/S : 1st - 4th Quarter 2022/23

Flügger Group

Investor presentation

Q4 2022/23

Investor presentation Q4 2022/23

Flügger at a glance

Key figures FY 2022/23

Revenue mDKK

EBIT mDKK

2.550 43

Full-time employees

Markets

2.234 17

No. factories

No. stores

12 354

Flügger's business model

Production	Sales channels	Customers
								Own stores	BtB
								Franchise stores

E-commerce

R&D

BtC

DIY etc.

Brand examples

	Segment 1
Private label	Segment 2
Private label	Segment 3

2

Investor presentation Q4 2022/23

Q4 22/23 highlights

Revenue (mDKK)

	-1%
616	610
Q4 21/22	Q4 22/23

Gross Margin (%)

	-2.4pp
56.0	53.6
Q4 21/22	Q4 22/23

EBIT (mDKK)

	n.m.
	-6
-111
Q4 21/22	Q4 22/23

EBIT-margin (%)

	+17.1pp
	-0.9
-18.0
Q4 21/22	Q4 22/23

Own & franchise stores (#)

	-6%
375	354
244	244	Own stores
131	110	Franchise
Q4 21/22	Q4 22/23

ROCE, LTM (%)

0.0pp

2.62.6

Q4 21/22

Q4 22/23

3

Investor presentation Q4 2022/23

FY 22/23 highlights

Revenue (mDKK)

	+1%
2.520	2.550
FY 21/22	FY 22/23

Gross Margin (%)

	-3.6pp
56.9	53.3
FY 21/22	FY 22/23

EBIT (mDKK)

	+4.9%
41	43
FY 21/22	FY 22/23

EBIT-margin (%)

	+0.1pp
1.6	1.7
FY 21/22	FY 22/23

Own & franchise stores (#)

	-6%
375	354
244	244	Own stores
131	110	Franchise
FY 21/22	FY 22/23

ROCE, LTM (%)

0.0pp

2.62.6

FY 21/22

FY 22/23

4

Investor presentation Q4 2022/23

Decline in raw material prices, but still at high historical level

The sharp increase beginning 2022/23 was not fully passed on in sales prices

Chemicals market impacts c. 40% of Flügger raw material costs

Gas/energy impacts c. 15% of raw materials costs

200

Weighted index

3.000

Price of natural gas (1y fwd contract1))

Based on spend

180

Average 20/21

Average 21/22

+65,9%

2.500

160

Average 22/23

140

2.000

120

1.500

+133,6%

✓ Approx. DKK 37m saved by adjusting

100

recipes and strategic procurement

1.000

80

✓ Sales price increases to fair market level,

+233,0%

although not fully offsetting cost increase

+596,4%

500

60

✓ Market volumes in the Nordics declined

+4,8%

c. 9% vs. peak, but Flügger declined less

40

05/21

0

07/22

04/23

01/20

03/20

05/20

07/20

09/20

11/20

01/21

03/21

07/21

09/21

11/21

01/22

03/22

05/22

07/22

09/22

11/22

01/23

03/23

05/23

01/20

04/20

07/20

10/20

01/21

04/21

07/21

10/21

01/22

04/22

10/22

01/23

07/23

Note: Impact measured for Segment 1 & 2

5

1) TTF Gas (DKK_øre/m3)