THERMADOR GROUPE (EPA:THEP) - Thermador Groupe : 2020 half year results

Transparency directive : regulatory news

30/07/2020 18:44

LETTER TO SHAREHOLDERS N°98

July 31, 2020

Dear Shareholder,

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

2020 HALF YEAR TURNOVER: -1,5%
AT CONSTANT SCOPE: -4,3%

                                                                     Variation
                                                                         2020
                                         2020                          Constant
                                       Constant            Variation    scope*
In thousands of euros           2020    scope*       2019  2020/2019    /2019

Total 1st half year -
according to IFRS 15         187,869    182,548   190,699      -1.5%      -4.3%
1st quarter                   94,952     93,601    93,048      +2.0%      +0.6%
2nd quarter                   92,917     88,947    97,651      -4.8%      -8.9%
Breakdown by business
Mecafer and Domac,
equipment tools               14,824     14,824    14,581      +1.7%      +1.7%
Dipra / Rousseau, pumps,
technical plumbing
accessories and taps          28,308     28,308    28,847      -1.9%      -1.9%
Isocel, supply of
components to OEM              2,975      2,975     3,057      -2.7%      -2.7%
Aello, equipment for
swimming pools                 7,800      7,800     5,863     +33.0%     +33.0%
Jetly, pumps                  24,226     24,226    26,512      -8.6%      -8.6%
Thermador, central heating
and domestic water
accessories                   22,817     22,817    22,234      +2.6%      +2.6%
Heating - cooling surfaces and piping systems
PBtub                         11,285     11,285    13,523     -16.5%     -16.5%
Thermacome**                   3,097          -         -
Axelair, ventilation
equipment and accessories      3,512      3,512     3,320      +5.8%      +5.8%
Sferaco, valves, meters
and connectors                26,334     26,334    29,980     -12.2%     -12.2%
Sectoriel, motorised valves
and air compressors           10,571     10,571    10,865      -2.7%      -2.7%
Distrilabo,
measure and control*           2,224          -         -
FGinox, stainless steel
connectors, flanges,
valves and accessories         6,824      6,824     8,437     -19.1%     -19.1%
Syveco, international         13,087     13,087    13,925      -6.0%      -6.0%
Sodeco Valves,
industrial valves              9,791      9,791     9,393      +4.2%      +4.2%
Other structures                 194        194       162     +19.8%     +19.8%

CONSOLIDATED HALF YEAR POSITION ON JUNE 30, 2020

                                                                      Variation
                                                                         2020
                                         2020                          Constant
Simplified P&L statement               Constant            Variation    scope*
(thousand euros) - Half year    2020    scope*       2019  2020/2019    /2019

Turnover
(according to IFRS 15)       187,869    182,548   190,699      -1.5%      -4.3%
Current operating income
for the business              23,358     23,235    25,017      -6.6%      -7.1%
Net profit as a portion
of the group                  16,472     16,397    16,981      -3.0%      -3.4%
* Distrilabo was acquired by Thermador Groupe on December 31, 2019. Its
turnover has been consolidated since January 1, 2020.
** Thermacome was acquired by Thermador Groupe on April 30, 2020. Its turnover
has been consolidated since May 1, 2020.

Detailed accounts are available on our website www.thermador-groupe.fr

... / ...

Head office: Parc d'Activités de Chesnes - 80, rue du Ruisseau - CS 10710 -
               38297 SAINT-QUENTIN-FALLAVIER CEDEX - FRANCE
               Tel. +33 474 95 63 28 - Fax +33 474 95 46 35 -
                      Website: www.thermador-groupe.fr
          Private limited company with capital of e36,803,396 -
   339 159 402 companies register of Vienne - SIRET n°: 339 159 402 00017

BUSINESS

In publishing our 2019 Universal Registration Document, we made a special
effort to describe the risks that our group could face and the consequences of
one sort of occurrence or another. This work was somewhat in vain, given that
we were not able to predict that a global pandemic would cause the temporary
closure of our suppliers' factories, illness affecting some of our employees
and the collapse of sales for several weeks. Fortunately, the commitment of our
staff and our devolved organisation proved highly resilient in the face of the
unexpected, which is very reassuring for the future.

We therefore thank our employees for their courage, lucidity and responsiveness
in such difficult circumstances, especially those physically present on our
logistics sites.

The group's other stakeholders also rose to the challenge: the majority of our
customers met their obligations, our suppliers adapted their manufacturing
programmes, our bankers supported our cash flow and the French authorities
reacted pragmatically and quickly. You yourselves, as shareholders of Thermador
Groupe, held your nerve during the stock market storm that followed the health
crisis. We would also like to thank you for your contribution.

These internal and external forces combined to enable us to achieve the
impossible in June 2020, as we recorded a 25% increase in turnover compared to
June 2019. This rescues our second quarter revenue tally, which is down only
8.9%, and our first half year turnover, which is down only 4.3%.The turnover
trends presented here are on a like-for-like basis, without taking into account
our two most recent acquisitions.

The onboarding of Distrilabo, acquired on December 31, 2019 and Thermacome,
acquired on April 30, 2020, is proceeding as planned, helped by the cooperative
approach adopted by the staff concerned. Their objectives and strategies within
the group have been presented and challenged by the members of the Executive
Committee and of the Board.

Finally, there is a detailed description of our management of the COVID-19
crisis on page 7 of our half-yearly report, available at this link on our
website
(https://www.thermador-groupe.fr/en/finance-en/regulated-information/).

RESULTS AND FINANCIAL SITUATION

Effective cost control enabled us to limit the impact on operating income,
which only declined 7.1%, at constant scope. If we factor in the results for
Distrilabo and Thermacome, the fall is only 6.6%.

Our focus is on our net cash position, which remains at a more than adequate
level (EUR8.7m), despite a relative increase in stock (0.6 months of purchasing
consumed) and late payment on the part of a major customer. A post-closing
event note 10 page 22 of our half-year does however mention that this unusual
situation with the aforementioned customer has now been settled. All in all,
customer receivables have only increased by 7.3 days' turnover.

Our financial debt of EUR47.5m (excl. IFRS16) remains reasonable when set
against our equity, which stands at EUR222.6m.

PROSPECTS

The decline in GDP in the European countries where we operate and the estimated
46% drop in planning permits for housing construction in France between March
and May 2020 will undoubtedly have a negative impact on our business from
autumn 2020 onwards. However, the increase in our market share during the
crisis and the proven success of certain energy-efficiency product lines mean
we can uphold our long-term ambition outlined on page 10 of our 2019 Universal
Registration Document.

GOVERNANCE

Since 2016, we have confirmed the Chairman & CEO succession process in the
event of an accident or sudden unavailability on a yearly basis. Since that
time, Jean-François Bonnefond, Chairman & CEO of Jetly and Deputy CEO of
Thermador Groupe, has been appointed to take over the position. Anticipating
his retirement and the end of his term of office as director in April 2021,
Thermador Groupe's Executive Committee met for the first time in conclave to
identify the person from amongst their number who would have the qualities to
succeed him and the will to take on the responsibility. After three rounds of
voting, a majority emerged in favour of Lionel Monroe, currently Chairman & CEO
of Syveco. The directors, who had been involved in this new process from the
outset to identify the required profile, approved this decision at the Board
meeting held on July 29. As a result, Lionel Monroe will be put forward as a
Board member at the General Meeting scheduled for Tuesday 6 April 2021 and
appointed Deputy CEO of Thermador Groupe for a period of 4 years at the Board
meeting scheduled for 7 April 2021.

Finally, we look forward to seeing you on July 31 at 6pm for a webconference
reserved for our shareholders.

The Chairman
Guillaume Robin

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THERMADOR GROUPE (EPA:THEP) - Thermador Groupe : 2020 half year results

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