Thule : Presentation at outdoor retail summits in USA, December 2020

Thule Group at retail and outdoor seminars in the US,

Dec. 2020

Magnus Welander

CEO & President

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2020 December

Thule Group - Company Presentation

Thule Group - An Investment Case Built on Sustainable Pillars

	SUSTAINABLE BUSINESS APPROACH
LIFESTYLE BRAND
PRODUCT DRIVEN GROWTH	GROWTH WITH	+	POSSIBILITY FOR	GREAT
SIGNIFICANT CASH	SHAREHOLDER
	STRATEGIC M&A
	GENERATION		RETURNS
SUPPLY CHAIN EFFICIENCY
RETAIL SUPPORT & PUSH

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2020 December

Thule Group - Company Presentation

Sustainability

Continuous work on all aspects of becoming a more sustainable Company

Environmental Focus		Supply Chain Ethics		Community Engagement

High-Quality Products that are Built to Last

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2020 December

Thule Group - Company Presentation

Lifestyle Brand

We have achieved a lot of things with our core brand Thule the last decade

Thule brand share of Thule Group and Annual Sales

2009

2019

1.8 Bio SEK

5.9 Bio SEK

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2020 December

Thule Group - Company Presentation

Thule: 4 categories, 1 brand, 1 tagline - Bring your life

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2020 December

Thule Group - Company Presentation

Thule is both an Urban and an Outdoor brand

URBAN

OUTDOOR

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2020 December

Thule Group - Company Presentation

Product Push

We sell in four Product Categories in two Regions (Share of Sales, 2019)

SPORT & CARGO CARRIERS		RV PRODUCTS		PACKS, BAGS & LUGGAGE		ACTIVE WITH KIDS

63% 15% 12% 10%

	REGION	72%		REGION	28%
	EUROPE & ROW			AMERICAS

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2020 December

Thule Group - Company Presentation

Consumer Insight Driven Product Development (spend at 6% of Sales)

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2020 December

Thule Group - Company Presentation

Leading Product Design capabilities recognized globally

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2020 December

Thule Group - Company Presentation

Supply Chain Efficiency

Continued investments in 9 modern efficient assembly sites

Highly automized & Flexible semi-automatic lines	Continued stable levels of CapEx

CapEx as Share of Sales

5,0%

4,0%

3,0%

Efficient Distribution Centers

2,0%

1,0%

0,0%

2014

2015

2016

2017

2018

2019

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2020 December

Thule Group - Company Presentation

2020 has proven our ability to handle swings in demand efficiently

Thule Group sales by quarter (reported currency)

								2017
MSEK						2018
2 600					2 436			2019
2 400			2 311				2020
2 200			2 155	2 043
			1 955
2 000		1 834
1 800		1 611	1 744	1 682
1 600			1 561
	1 526
1 400				1 385
					1 211
1 200						1 157
1 000						1 006
800
	Q1	Q2	Q3			Q4

• Q1 (-5% Fx adj. vs 2020)
• • Started well and ended badly as Covid lock- downs implemented mid-March
• Q2 (-12% Fx adj. vs 2020)
• • Started badly and ended strong as lock-downs eased and people were allowed outside
• Q3 (+52% FX adj. vs 2020)
• • Very strong throughout period as we captured Spring sales and Bike category grew

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20201022

Thule Group Board Meeting 12/2020

Retail Tools & Push

Focus on driving sell-through Online and in Brick&Mortar

	ONLINE		BRICK&MORTAR

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2020 December

Thule Group - Company Presentation

M&A

M&A: Latest small bolt-on acquisitions in broaden Sport&Cargo Carriers

	Roof Top Tents (Tepui, Dec. 2018)	Rod Vaults (Denver Outfitters, Dec. 2019)

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2020 December

Thule Group - Company Presentation

Strong Financials

Strong Sales and EBIT growth during our five years as listed company

	Reported Net Sales
MSEK
8 000	+2 722 MSEK / +63% / CAGR +10%
					7 038
				6 484
6 000			5 872
		5 304
	5 018
4 316
4 000
2 000
-
2014	2015	2016	2017	2018	2019

Note: LTM Proforma, EBIT adjusted for non-recurring items & depr/amort on excess values

		Reported Underlying EBIT
MSEK
1 500		+542 MSEK / +77% / CAGR +12%
1 250						1 245
				1 164
				1 069
1 000			935
		835
750	703
500
250
-
	2014	2015	2016	2017	2018	2019

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2020 December

Thule Group - Company Presentation

2020 YTD September - Net Sales and Underlying EBIT development

Reported Net Sales	Underlying EBIT and Margin
SEKm				SEKm
5 827	+7%	6 223
		20.2%		21.7%
	+7%1
					+15%	1 351
				1 174
				+13%1

YTD

YTD 2019

YTD 2020

YTD 2019

YTD 2020

Note: EBIT adjusted for non-recurring items & depr/amort on excess values.

1 Constant currency adjustment based on average FX rates 1 January - 30 September 2020.

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2020 December

Thule Group - Company Presentation

2020 YTD September - Performance vs. Financial Targets

Organic	≥ 5%	7.1%	Constant Currency Net Sales Growth (excl. Acquisitions)
Growth

EBIT Margin		≥ 20%		21.7%
Underlying					Q3/2019 at 20.2% (LTM at 19.1%)

EBITDA		1.5-2.5x		0.5x
Net Debt /					Q3/2019 at 1.4x (Q3/2020 excl. IFRS16 at 0.3x)

Dividend		≥ 50%		0%	On March 22, the Thule Group Board of Directors withdrew previously communicated dividend
		proposal of 7.50 SEK/share, due to uncertainty regarding possible future economic effects
Policy
		due to the corona-virus pandemic

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2020 December

Thule Group - Company Presentation

Looking forward: Short-term uncertainties, but long-term confidence

• Still high levels of uncertainty from corona-virus pandemic
• Continue to manage extreme flexibility as markets open up again
• Very strong cash position exiting 2020
• Strong portfolio of new products coming to market in 2021
• Strong belief in mid-term staycation trend as a positive for the type of Products we sell

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2020 December

Thule Group - Company Presentation

Q&A

Disclaimer

• This presentation has been prepared by Thule Group AB (publ) (the "Company") solely for use at this presentation and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations.
• Statements in this presentation, which are not historical facts, such as expectations, anticipations, beliefs and estimates, are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to materially differ from those expressed in such forward-looking statements.
• This presentation may contain various forward-looking statements that reflect management's current views with respect to future events and financial and operational performance. The words "believe," "expect," "anticipate," "intend," "may," "plan," "estimate," "should," "could," "aim," "target," "might," or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Company's control and may cause actual results or performance to differ materially from those expressed or implied from such forward-looking statements. These risks include but are not limited to the Company's ability to operate profitably, maintain its competitive position, to promote and improve its reputation and the awareness of the brands in its portfolio, to successfully operate its growth strategy and the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks.
• The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice.
• No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein.
  Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.

www.thulegroup.com

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2020 December

Thule Group - Company Presentation