Press release

The Indel B S.p.A. BoD approves the draft financial statements for FY 2021

Positive results once again for the Indel B Group

Double digit growth in all performance indicators

Proposed dividend distribution to shareholders of Euro 1.00 per share

  • Consolidated income: Euro 188.3 million vs Euro 127.7 million for FY 2020, up 47.5%.

  • Adjusted EBITDA 1 of Euro 25.8 million vs Euro 18.3 million for FY 2020, up 41.1% (reported EBITDA: Euro 34.8 million vs Euro 14.8 million as at 31.12.2020).

  • Adjusted EBIT: Euro 19.9 million vs Euro 12.7 million for FY 2020, up 56.5% (reported EBIT: Euro 28.8 million vs Euro 9.2 million as at 31.12.2020).

  • Adjusted net profit: Euro 15.8 million vs Euro 10.0 million for FY 2020 (56.8%). (Reported net profit: Euro 24.3 million vs Euro 6.2 million as at 31.12.2020).

  • Negative Net Financial Position at Euro 12.8 million vs Euro -4.6 million as at 31.12.2020.

  • Parent company revenues of Euro 127.6 million, up 39.6%.

  • Parent company net income of Euro 19.0 million.

  • Proposed distribution of a dividend of Euro 1.00 per share, for a total of Euro 5.7 million.

Sant'Agata Feltria (Rimini), 21 april 2022 - Indel B S.p.A. - a company listed on the Borsa Italiana EXM and parent company of a group that operates in the manufacture of cooling systems for mobile and mobile living for the automotive, hospitality and leisure time markets (pleasure boats and recreational vehicles) - reports that the Board of Directors convened today and has approved the consolidated financial statement as at 31 December 2021 and the separate draft financial statement as at that same date, to be submitted for approval by the Shareholders' Meeting. The Board of Directors will also propose to the Shareholders' Meeting the distribution of a dividend of Euro 1.00 per share, for a total of Euro 5.7 million.

Luca Bora - CEO Indel B - "In 2021 the Group has significantly improved its results, demonstrating that the negative effects of the Covid-19 pandemic on the main markets in which it operates have now been overcome. The Hospitality industry, which for a large part of last year still showed difficulty in recovering what was lost in 2020, has finally reversed the trend, registering an increase compared with the same period of the previous year.

We are therefore very satisfied with the results we achieved, especially in view of the very complex general context that characterised the entire year, managing to overcome the countless difficulties thanks to the effectiveness of the actions taken by the Group at all levels. The 2021 results therefore confirm the validity of our strategic choices, which will continue to drive the Group's future growth."

1

Total Adjusted revenues and income, EBITDA, Adjusted EBITDA, Adjusted operating profit and Adjusted profit for the year are not accounting measures under the IFRS and therefore should not be considered as substitute measures to those provided by the Company's financial statements for the purpose of assessing the Group's economic performance

Consolidated total revenues

In FY 2021, the Indel B Group recorded Revenues of Euro 188.3 million, +47.5% up vs 2020 (Euro 127.7 million).

Revenues from sales by market

(in thousands of Euro)

FY 2021

%

FY 2020

%

Change

% change

Automotive

107,986

59%

69,588

58%

38,398

55.2%

Leisure

28,652

16%

15,096

13%

13,556

89.8%

Components & Spare parts

26,459

14%

18,269

15%

8,190

44.9%

Hospitality

12,252

7%

10,189

8%

2,063

20.2%

Cooling Appl.

8,342

4%

7,122

6%

1,220

17.1%

REVENUES FROM PRODUCT SALES

183,691

100%

120,264

100%

63,427

52.7%

Other Revenues

2,123

1%

4,017

3%

-1,894

-47.1%

SALES REVENUES

185,814

99%

124,281

97%

61,533

49.5%

Other income

2,486

1%

3,416

3%

-930

-27.2%

TOTAL INCOME

188,300

100%

127,697

100%

60,603

47.5%

The increase in 2021 sales revenue is primarily attributable to the Automotive (+55.2%), Leisure (+89.8%) and Components & Spare Parts (+44.9%) markets.

In particular, the Automotive industry benefited from the positive cycle that hit both the European and the US markets, and recorded an increase of 55.2% showing a result of Euro 108.0 million compared to Euro 69.6 million in the same period of 2020.

Net of the contribution of the acquired companies ESC and SEA, the increase would have been 37.1% with a total result of Euro 95.4 million.

The Leisure market has confirmed its positive trend also in the last quarter of 2021, in fact it has recorded an increase of 89.8%, going from Euro 15.1 million in 2020 to 28.7 million in 2021.

More specifically, the Marine market was the main driver of the positive performance by Leisure products. Marine market sales increased both thanks to good segment performance and greater penetration of the nautical market.

Net of the contribution of the acquired companies ESC and SEA, the increase would have been 87.0% with a total result of Euro 28.2 million.

The Components & Spare parts sector also benefited from the positive cycle that affected the market in general. The increase of 44.9% is connected with the sale of components and goes from Euro 18.3 million in 2020 to Euro 26.5 million in the same period of 2021.

The Hospitality sector is showing greater responsiveness, and although it had been particularly hard hit by the effects of the pandemic, it recorded a 20.2% increase, rising from Euro 10.2 million in 2020 to Euro 12.3 million in 2021.

The Cooling Appliances market shows an increase in revenues, mainly deriving from new orders in the Professional section.

Revenues from sales by channel

The OEM1 (Original Equipment Manufacturer) channel achieved revenues of Euro 88.6 million compared to Euro 58.5 million in 2020, an increase of 51.4%, mainly due to both the recovery of the Automotive Truck business, which in the first months of 2020 had suffered the expected negative trend in North America and

Indel B Spa - Registered Office and Corporate Headquarters Via Sarsinate, 27 - 47866 Sant'Agata Feltria (RN) Italy

Tel. +39 0541 848711 - Fax +39 0541 848741 -info@indelb.com -www.indelbgroup.com

Europe, accentuated by the effects of the Covid-19 pandemic, and the increase in the Cooling Appliances and Leisure market. Net of the contribution of the acquired companies ESC and SEA, the increase would have been 37.2% with a total result of Euro 80.3 million.

The AM2 (After Market) channel has booked revenues of Euro 67.5 million as compared with Euro 43.4 million during 2020, down 55.7%, mainly as a result of the downturn to the Hospitality and Leisure markets. Net of the contribution of the acquired companies ESC and SEA, the increase would have been 44.8% with a total result of Euro 62.8 million.

Finally, the Others channel booked revenues of Euro 27.6 million as compared with Euro 18.4 million for 2020, up 50.2%. Net of the contribution of the acquired company ESC, the increase would have been 39.6% with a total result of Euro 25.7 million.

Sales revenues at geographical level

In FY 2021, indicated approximately 70.4% of the Group's "Revenues from product sales" as coming from outside of Italy, with 20.5% from outside of Europe, thereby confirming Indel B as a global company. In 2021, the incidence of each area on total revenue did not change significantly, remaining in line with FY 2020.

The greatest change is seen in Revenues from Europe (62.4%), the value of which rises from Euro 56.6 million in 2020 to Euro 91.8 million in 2021, with an incidence on revenues rising from 47.0% to 49.9%. The increase is mainly due to the recovery and growth of the Automotive market. Net of the contribution of the acquired companies ESC and SEA, the increase would have been 42.3% with a total result of Euro 80.4 million.

In Italy, revenues from sales are up 44.6%, going from Euro 37.6 million in 2020 to Euro 54.4 million in the same period of 2021, for a generalised recovery recorded on all markets and in particular in Leisure.

In the Americas, revenues from sales are up 48.4%, going from Euro 22.3 million in 2020 to Euro 33.1 million in the same period of 2021, due both to the increase in the Automotive and Leisure markets in North America.

In the Rest of the World, revenues from sales are up 16.1%, going from Euro 3.8 million in 2020 to Euro 4.4 million in the same period of 2021.

Other revenues decreased from Euro 4.0 million in 2020 to approximately Euro 2.1 million in 2021 mainly due to lower sales of new moulds.

Analysis of the Group's economic, equity and financial performance

EBITDA and Adjusted EBITDA

During the year, EBITDA rose by Euro 20.0 million, going from Euro 14.8 million in the year closed at 31 December 2020 to Euro 34.8 million in the current financial year (135.3%). In percentage terms, the EBITDA Margin increases from 11.6% in FY 2020 to 18.5% in FY 2021. In addition to the growth in sales, EBITDA was positively affected by the gain on the sale of the investment in Guangdong Iceco Enterprise Co. Ltd. for approximately Euro 9.1 million.

Adjusted EBITDA, net of non-recurring items, increased by Euro 7.5 million to Euro 25.8 million in 2021 (41.1%) compared to Euro 18.3 million in 2020, with the percentage of Adjusted Total Revenues increasing from 14.5% in 2020 to 13.7% at 31 December 2021. The percentage incidence decreases due to the overall effect of overhead increases.

EBIT and Adjusted EBIT

EBIT rose by Euro 19.6 million (214.3%), going from Euro 9.2 million in the year ended 31 December 2020 to Euro 28.8 million in the year ended 31 December 2021.

The EBIT Margin was 15.3% in the year ended 31 December 2021 compared to 7.2% in the year ended 31 December 2020.

1 OEM (Original Equipment Manufacturer) Customer segment that purchases third party manufacturer components specifically designed for use in the products sold or finished products, which are therefore marketed under own brand. The OEM channel is transversal to all markets.

1 AM (After Market) Sales channel characterised by the manufacture of goods developed not according to customised projects commissioned on specific customer request, but rather intended for marketing under own brand or the "ISOTHERM" brand owned by Indel Webasto Marine, by Indel B.

Adjusted EBIT in FY 2021 of Euro 19.9 million is up Euro 7.2 million compared to Euro 12.7 in FY 2020 (56.5%). The adjusted EBIT Margin increased from 10.1% for the year ended 31 December 2020 to 10.6% for the year ended 31 December 2021.

Net profit and adjusted net profit

Indel B Group closed FY 2021 with a Net Income of approximately Euro 24.4 million, an increase of Euro 18.2 million (294.8%) compared to Euro 6.1 million in FY 2020 and a ratio to Total Revenues of 13.0% (4.8% in FY 2020).

Adjusted operating Income, net of non-recurring items, amounted to Euro 15.8 million in the year ended 31 December 2021 compared to Euro 10.0 million in the same period in 2020 with a ratio to Adjusted Total Revenue of 8.4% (8.0% in FY 2020).

Net financial position

The Net Financial Position at 31 December 2021 was a cash negative balance of Euro 12.8 million, Euro 8.2 million down from 31 December 2020, when the negative balance was Euro 4.6 million.

Other financial payables include an earn-out amount of Euro 5.7 million for the acquisition of Elber for the period 2018-2021 and a payable of Euro 3.8 million for right of use.

Annual financial statements of the parent company, Indel B S.p.A.

The Board of Directors has also approved the draft 2021 annual financial statement of the parent company, Indel B S.p.A.

In FY 2021, the Company recorded revenues of Euro 127.6 million, up 39.6% on the Euro 91.4 million booked for FY 2020.

Adjusted EBITDA at 31 December 2021 is Euro 15.2 million vs Euro 10.7 million for FY 2020, up by about

41.7%.

Reported EBITDA amounted to Euro 15.2 million compared to Euro 11.9 million in FY 2020 (27.7%).

Adjusted EBIT comes to Euro 12.3 million vs Euro 7.4 million in FY 2020, up by about 65.6%.

Reported EBIT amounted to Euro 12.3 million, up from Euro 0.3 million in 2020.

Net Adjusted Profits are Euro 11.7 million, 79.7% up on the Euro 6.5 million for FY 2020.

Reported profits are Euro 19.0 million, as compared with Euro -0.9 million in FY 2020.

The improvement is driven by both revenue growth and the gain from the sale of the investment in Guangdong Iceco Enterprise Co. Ltd.

The Indel B S.p.A. Statement of Financial Position reports Shareholders' Equity of Euro 96.0 million (Euro 80.9 million in FY 2020) and Net Financial Position negative for Euro 11.9 million, as compared with a negative NFP of Euro 8.6 million as at 31 December 2020. Other financial payables include an earn-out amount of Euro 5.7 million for the acquisition of Elber for the period 2018-2021 and a payable of Euro 2.7 million for right of use.

Significant events after 31 December 2021

After 31 December 2021 and up to the date of approval of these financial statements, no events have occurred that could have a material impact on the Group's results.

In February, the Russian-Ukrainian war conflict aggravated the geopolitical situation on a European level. The rapid escalation of tensions raises concern, first, for the safety of all people, then for the performance of the economy in these markets. The European Union Member States, the United States, Canada, Great Britain, Australia, Japan and other countries have progressively enacted economic sanctions against Russia. The Group has a turnover of approximately Euro 2.5 million in the Russian Federation.

Indel B Spa - Registered Office and Corporate Headquarters Via Sarsinate, 27 - 47866 Sant'Agata Feltria (RN) Italy

Tel. +39 0541 848711 - Fax +39 0541 848741 -info@indelb.com -www.indelbgroup.com

As concerns the Covid 19 emergency, the situation within the companies of the Group is under control thanks also to the many adhesions by company employees to the vaccination campaign. Clearly, all the actions foreseen by the protocol are still in place, since April they have been regulated according to the indications of the Government.

Business Outlook

During 2021 there was an increase in sales in almost all the markets where the Group operates. These improvements were in some cases very substantial, particularly in the Automotive and Leisure markets.

This was therefore a positive and important sign of growth for the Group but, at the same time, put the production process under great stress. Although at different growth rates from those that characterized the year 2021, the positive trend of the leisure market (Leisure) continued in the first four months of 2022, (albeit with some mismatch between sell in and sell out with the investee Indel Webasto Marine). This market still seems to benefit from the effects produced by the pandemic and social distancing. This is without doubt due to the change in how people spend their free time and organise their holidays, driving choices towards solutions that can offer a greater guarantee of a certain level of social distancing, such as holidays involving recreational vehicles or private boats.

Continued positive trend in the Automotive OEM and Components & Spare parts market where orders remain strong. The Cooling Appliance market also continues its growth driven by the small refrigerator business for milk storage.

In terms of Hospitality, despite the difficult period for tourism, strong growth was registered in the Hotel segment and more moderate growth in the Cruise Ship segment. These signs make us hopeful for the future, which however will be strongly impacted by the evolution of the conflict in Ukraine.

The situation is therefore still very dynamic in the various markets in which the Group is active in terms of turnover.

On the other hand, the costs of raw materials and certain electronic components, above all, remain very high, to which have been added (following the Russian invasion of Ukraine and the application of international sanctions) the increased costs of energy raw materials such as oil, gas and coal, of which Russia is one of the major exporters. However, Indel Group B does not have any particularly energy-intensive companies in its scope. Besides the problem of cost, the supply chain remains another difficulty.

The situation created at global level for sea transport also remains heavy, both in terms of costs and availability of containers, as well as loading space on ships and waiting times for unloading and customs clearance, especially on the China-Europe and China-America routes.

The Group has and is continuing its efforts to pass on these costs, or at least part of them, to customers, depending on the different specific situations in the various markets in which the Group operates.

The attention of the Group Management and Directors, depending on the specific situation that is being faced, focused during 2021 and continues to be so this year too, on the control and possible containment of costs and on finding solutions to the current situation of shortage of materials and components (particularly but not only those of an electronic nature) in order to be able to guarantee continuity of production accompanied by an adequate marginality and a capacity for "cash generation" by the individual group companies.

It will be important, in 2022, to continue to constantly monitor this situation, in order to be able to adjust, where necessary, the actions already taken to preserve the company's financial health.

In this regard, the starting position is important, with the Group's companies having little debt and growth in turnover.

Thanks to the Company's and the Group's turnover, financial resources and capitalisation, the Directors do not foresee any problems in meeting their obligations in the medium term.

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Indel B S.p.A. published this content on 21 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 April 2022 10:54:05 UTC.