Thermador Groupe : Release of 2020 Q1 turnover

LETTER TO SHAREHOLDERS N°97

April 16, 2020

Dear Shareholder,

Here are the main indicators on the current situation of our group.

TURNOVER FOR FIRST QUARTER 2020 : +2.0%
AT CONSTANT SCOPE : +0.6%
						Variation
			2020		Variation	2020
In thousands of euros	2020		constant	2019	constant
	2020/2019
			scope*		scope* /
						2019
Breakdown by business:
Mecafer and Domac, equipment tools	7,421		7,421	7,128	+ 4.1%	+ 4.1%
Dipra / Rousseau, pumps, plumbing ad taps	12,544		12,544	13,974	- 10.2%	- 10.2%
Isocel, components for boilers	2,023		2,023	1,564	+ 29.3%	+ 29.3%
Aello, equipment for swimming pools	2,692		2,692	2,167	+ 24.2%	+ 24.2%
Jetly, pumps	11,189		11,189	12,151	- 7.9%	- 7.9%
Thermador, central heating and domestic	14,443		14,443	12,445	+ 16.1%	+ 16.1%
water accessories
PBtub, pipework for the distribution	6,335		6,335	7,049	- 10.1%	- 10.1%
Axelair, ventilation equipment and accessories	1,066		1,066	960	+ 11.0%	+ 11.0%
Sferaco, valves, connectors and meters	14,723		14,723	14,688	+ 0.2%	+ 0.2%
Sectoriel, motorised valves and air	5,607		5,607	5,275	+ 6.3%	+ 6.3%
compressors
Distrilabo, measure and control *	1,351		-	-	-	-
FGinox, stainless steel connectors, flanges,	3,672		3,672	4,409	- 16.7%	- 16.7%
valves and accessories
Syveco, international	7,183		7,183	6,927	+ 3.7%	+ 3.7%
Sodeco Valves, industrial valves	4,624		4,624	4,232	+ 9.3%	+ 9.3%
Other structures	79		79	79	0.0%	0.0%
Total 1st quarter - according to IFRS 15	94,952		93,601	93,048	+ 2.0 %	+ 0.6 %

* On December 31, 2019, Thermador Groupe acquired Distrilabo. Its turnover has been consolidated since January 1, 2020.

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80, rue du Ruisseau - Parc d'Activités de Chesnes - SAINT-QUENTIN-FALLAVIER (Isère)

Head office: CS 10710 - 38297 SAINT-QUENTIN-FALLAVIER CEDEX

Tel. [phone] - Fax [phone] - Website: www.thermador-groupe.fr

Private limited company with capital of €36,439,008 - 339 159 402 companies register of Vienne - SIRET n°: 339 159 402 00017

BUSINESS

Up to March 16 we recorded consolidated growth above 10%, in line with the two previous quarters. Unfortunately, the confinement measures that had to be imposed by the public authorities put a stop to this sustained period of development and triggered a decline of the order of 53% in our turnover over the last dozen working days of the first quarter. Nevertheless, we will finish on a positive note because cumulative consolidated turnover to the end of March grew 0.6% to constant scope and 2% including Distrilabo, a company acquired on December 31, 2019.

MANAGEMENT OF THE COVID-19 CRISIS

The measures introduced and the commendable self-discipline of our 623 employees have enabled us to contain the spread of the virus. We are very fortunate not to have had any serious cases to date. Our team in Madrid, which has been the worst affected to date, is making the most of the total stoppage of business in Spain to rest and recover. Very quickly, all our managers and their staff rolled out continuity plans to ensure that the service our customers expected was provided and to provide for the future: homeworking, rescheduling of holidays, alternating attendance and partial unemployment.

Our financial structure - and a debt ratio below 5% - means that are able to cope without using the cashflow facilities proposed by the State. On the other hand, whilst being careful not to misuse the mechanism, and as a last resort, we have declared partial unemployment in our subsidiaries to the competent authorities for around 25% of the hours normally worked in April. On the understanding that the peak of the crisis will be of a short duration, we are not planning any redundancies.

The progressive return to business-as-usual for our Chinese suppliers and the supply schedules honoured by Italian and European suppliers have protected us from stock-out so far. We remain in daily contact with all our partners to get through this period together.

MAKE-UP OF CAPITAL

Since February 17, the Thermador share price has fallen more than 30% before bouncing back by more than 25%. It has weathered the storm better than the CAC mid&small and the CAC40. In particular, we were pleased to see that the increase in capital reserved to employees functioned perfectly well in spite of the highly alarming climate and that institutional investors who were already shareholders in our group made the most of this period to reinforce their positions still further. The latter in turn benefited from very high trading volumes on our shares.

PROSPECTS

The group's companies who deliver to DIY superstores (Mecafer, Domac, Dipra and Rousseau) will be particularly badly affected in April and could suffer a 80% drop in turnover for the month. As a consolidated average, we should be able to maintain 40% of normal business during the confinement period, slightly up on the estimate appearing in our press release of April 3. We plan to come back to you via a press release on April 28 after the closure of the stock exchange to confirm or refute these predictions. Whatever happens, the 2nd quarter of 2020 will show net decline and will have a negative impact on our annual accounts.

The project for the acquisition of Thermacome revealed to you on February 3 will not be affected by the current crisis. The process is going ahead and should be completed according to plan before the end of the first half of the year, thanks to the unfailing support of our banking partners.

… / …

REPLAY ANNUAL GENERAL MEETING April 6, 2020

ORDINARY AND EXTRAORDINARY GENERAL MEETING OF APRIL 6

Our Annual General Meeting was held behind closed doors on April 6, 2020. It was attended virtually by 260 people and 745 voters representing 65.8% of voting rights, compared to 70.3% recorded in 2019. We thank you for your high level of commitment in the very difficult context our country is experiencing at present, and were pleased to observe broader use of the Votaccess platform for remote voting.

All the resolutions were adopted with approval rates of between 76.8% and 99.9%. You will find herewith the text of the resolutions on pages 149 to 151 of our 2019 universal registration document as well as on our website.

Thus, a dividend of €1.80 per share was detached on April 9 and released for payment on April 15, 2020. As we said during the Annual General Meeting, we will wait to see the exact consequences of the current crisis for our 2020 accounts to decide on what we can propose in terms of dividends payable in April 2021.

As in previous years, the whole of the AGM was filmed and is available online on Thermador Groupe's YouTube site.

BOARD OF DIRECTORS

Upon his departure from the Board, Guy Vincent, founder of Thermador, received our warmest thanks, particularly for having provided the inspiration for the values that our group holds so dear.

We also thanked Laurence Ravet and Christophe Arquillière for their commitment and their contributions as their mandates too came to an end.

To replace the three departing board members, Noémie Gonin, export sales person at Syveco, Yves Ruget, Chairman and CEO of Thermador and Lionel Grès, Chairman and CEO of Axelair were appointed. You will find their biographies on our website under the 'Board of Directors' section.

PEA PME

Thermador Groupe confirmed its eligibility with Euronext.

Dear shareholders, we would like to thank you for your loyalty during this difficult period. Encouraged by your support and sure of our own potential, we will do everything within our power to build for the future.

The Chairman

Guillaume Robin