Flügger A/S : H.C. Andersen Capital Q3 23/24 update

Flügger Group

H.C. Andersen Capital Q3 23/24 update

Flügger at a glance

The figures in this presentation are continuing operations

(i.e. excl. recent divestment) unless stated differently

Key L12M figures Q3 2023/2024

Revenue mDKK

2.158

Full-time employees

1.672

No. factories

7

EBIT mDKK

31

Markets

14

No. stores

338

Flügger's business model

Q3 23/24 highlights Positive low season quarter with 2% revenue growth and margin improvement. EBIT impacted by the slightly lower costs levels

Revenue (mDKK)

433

441

Gross margin (%)

49.0

42.1

EBIT (mDKK)

(% margin)

Q3 22/23

Q3 23/24

Q3 22/23

Q3 23/24

-71 (16.4%)

-58 (13.0%)

Q3 22/23

Q3 23/24

Sales overall at a satisfactory level

• ▪ Currency neutral development driven mainly by favorable currency in Poland offset by unfavorable currency in Norway and Ukraine

• ▪ Growth driven by segment 2 & 3

Gross margin slowly normalizes

• ▪ Gross margin is positively affected by a slight downward trend in raw materials, energy, and transportation cost

• ▪ Combined with the implemented price increases the overall gross margin moved towards a more normalized level

Improvement in main segments

• ▪ Improvement in EBIT is driven by segments 1

• ▪ Slightly negative EBIT development in Segment 2 & 3, although revenue growth

Q3 23/24 segments - Segment 2 & 3 realized positive organic growth. Segment 1 delivered improved earnings. Recovering sales in Segment 3

Segment 1 Flügger

mDKK	Q3 23/24	YoY
Revenue	354	0%
EBIT	-46	n.m.
EBIT Margin%	-13%	+4.5pp

Segment 2 DIY
mDKK	Q3 23/24	YoY	mDKK	Q3 23/24	YoY
Revenue	69	+5%	Revenue	18	+31%
EBIT	-8	n.m.	EBIT	-4	n.m.
EBIT Margin%	-12%	-1.0pp	EBIT Margin%	-22%	-6.8pp
Steady sales and cost discipline	Organic growth

Continuing operations Ukraine

Segment 3 Eskaro

▪	Organic growth of 1% driven by Poland	▪	Organic growth of 1% and favorable	▪	Organic growth of 36%, partly offset by
and Norway, partly offset by Sweden	currency of 4%	negative currency of -5%
▪	Unfavorable currency in Sweden and	▪	Revenue positively impacted by new	▪	Recovering sales in Ukraine impacting
Norway	customers and increasing sales in Nordic	earnings positively
▪	EBIT improved driven by price increases,	▪	EBIT declined from -7mDKK driven	▪	Segment 3 still subject to uncertainty
declining costs, and cost initiatives	mainly by higher distribution costs

Revenue increased +2% YTD January compared to last year driven by organic growth of 5%, partly offset by negative currency effect of 3%

Revenue development (mDKK)

RevenueRevenue, LTMRevenue

700 650 600 550 500 450

Revenue, LTM 2.400

400 350

300

Q3 19/20

Revenue effects YTD January (mDKK)

-3%

2.100

0%

5%

1.641

Q3 20/21

1.613

Q3 21/22

Q3 22/23

Q3 23/24

1.800

1.500

1.200

900

YTD 22/23

CurrencyM&A

Organic Growth

YTD 23/24

Improvement in EBIT YTD mainly driven by improved margins and positive development in raw material- and energy costs

EBIT development (mDKK)

EBITEBIT, LTMEBIT

EBIT effects YTD January (mDKK)

EBIT LTM

150

-100

100

-50

50

0

Q3 19/20

250

200

150

100

50

0

-50

-100

-150

-200

-250

9

7

48

Q3 20/21

Q3 21/22

Q3 22/23

Q3 23/24

YTD 22/23

GP netPROD S&DAdm. Eskaro YTDcostscostscosts

23/24

Q3 2023/24 business highlight - Flügger partnership with Graco in Poland

After 10 years collaboration, Flügger establishes a unique official partnership - the only partner in Poland with own paint

One-stop solution for professionals with paint and spray equipment

56 points of sales with Flügger

Facilitation of product support

(maintenance, service etc.)

Ensuring product compatibility and know-how (use of paint in the equipment)

Q3 2023/24 business highlight - Ready with new colorcard and campaign

New long-lasting colorcard launched: 'Flügger 80'

Ready for high-season (exterior) with Spring Campaign

Share price development

Flügger's share price development

Flügger's relative share price development (indexed)

Share price (DKK)Volume (# of shares)

Share price

Source: Nasdaq, FactSet 9

2023/24 Outlook & Financial guidance

2023/24 Outlook and priorities

Financial guidance 2023/24 - Continuing operations

• ▪ The outlook for the future is cautiously optimistic with expectations of continued normalizing cost levels

2023/24 priorities

Updated guidance 10 November 2023

By nature, all forward looking statements involve risk and uncertainty because they relate to future events that are often beyond the Group's control This presentation does not constitute any recommendation on buying or selling any securities related to Flügger, nor has this material been audited