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Fluidra SA
You don't have any saved screeners yet
[Abrupt Start]
...and
welcome
to
Fluidra's
2021
Full-Year
Results
Presentation.
I'm
David
Herrerías,
Investor
Relations,
Corporate
Communications,
and
M&A
Director
at
Fluidra.
Today's
presenters
will
be
Mr.
Eloi
Planes,
our
Executive
Chairman;
Mr.
Bruce
Brooks,
our
CEO;
and
Mr.
Xavier
Tintoré,
our
CFTO.
You
can
follow
this
presentation
in
its
original
English
version
or
in
Spanish.
You
can
select
your
preferred
option
in
the
dropdown
menu
at
the
bottom
right
of
your
screen.
The
presentation
will
include
live
Q&A.
By
accessing
the
Ask
a
Question
tab
on
your
screen,
you
will
find
the
telephone
numbers
and
PIN
codes
needed
to
ask
questions
to
management.
Please
feel
free
to
dial
in
during
the
presentation
so
the
operator
can
include
you
in
the
Q&A
roster.
Presentation
materials
are
accessible
through
our
website,
fluidram.com,
and
they
have
also
been
uploaded
premarket
open
to
the
CNMV.
The
replay
of
today's
presentation
will
be
made
available
on
our
website
shortly
after
we
finish.
Let
us
start
the
presentation
by
opening
the
floor
to
our
Executive
Chairman,
Mr.
Eloi
Planes.
Thank
you,
David.
Good
morning
to
everyone
on
the
call
and
thank
you
for
joining
us
for
this
full-year
results
presentation.
It
is
really
strange
to
communicate
in
a
day
like
today.
I
would
like
to
start
by
saying
that
our
thoughts
are
with
the
millions
of
people
facing
the
terrible
situation
in
Ukraine.
We
hope
the
situation
improves
soon.
Acknowledging
this
tragedy,
I
will
now
turn
to
our
results.
I'm
very
proud
to
present
the
results
of
this
extraordinary
year.
I'm
going
to
start
with
a
big
thank
you
to
our
team
for
the
effort
and
fantastic
execution
and
to
our
clients
for
their
trust.
During
2021,
we
confirm
quarter-after-quarter
our
positive
views
for
the
company
and
for
the
sector.
We
can
now
say
that
the
fourth
quarter
finished
off
a
record
year,
and
the
fundamentals
of
the
business
remain
very
strong.
Let
me
share
some
comments
on
today's
results
before
Bruce
and
Xavier
dive
deeper
into
the
figures.
As
we
have
shared
in
our
previous
presentations,
the
growing
importance
of
outdoor
living
has
generated
new
demand
for
pools
and
for
pool
products.
We
are
delivering
record
numbers
on
the
full
year
with
all
our
strategic
plan
targets
delivered
one
year
in
advance. As
we
said
last
year,
our
focus
was
to
service the
extraordinary
demand
from
our
customers.
Our
successful
results
prove
that
we
have
been
resilient
and
flexible
supporting
our
customers
in
the
challenging
environment.
And
despite
the
growing
inflation,
we
have
been
able
to
increase
our
gross
margins.
This
is
an
industry
that
takes
price,
and
we
are
confident
in
our
pricing
capability
to
protect
our
margins
in
the
medium
term.
On
top
of
that,
our
operating
leverage
has
allowed
us
to
generate
more
than
350
basis
points
of
EBITA
margin
expansion.
This
is
a
fantastic
achievement.
At
the
same
time,
we
are
leveraging
our
strong
cash
generation
with
value
accretive
investments.
We
have
been
very
active
on
M&A,
closing
five
acquisitions
this
past
year,
four
of
them
in
the
US.
In
addition,
to
M&A,
we
continue
with
our
increasing
shareholder
remuneration
with
an
attractive
dividend
payment
of
€78
million,
90%
higher
than
in
2020.
To
finish
with
numbers,
I
would
like
to
highlight
our
22%
returns
on
capital,
a
very
important
metric
as
it
shows
our
ability
to
generate
value
to
our
shareholders.
Let
me now
finish
with
the
appointment
of
Mrs.
Barbara
Borra
as
a
new
Independent Director
of
our
board,
effective
in
December
last
year.
She
replaced
Martín
Ariel
from
Rhône
Capital.
Barbara
brings
35
years
of
international
experience,
and
has
already
proven
to
be
a
fantastic
addition
to the
board.
Let's
move
to
page
5,
before
I
leave
the
floor
to Bruce.
I
would
like
to
take
a
couple
of
minutes
to
look
back
to
2018
and
the
merger
with
Zodiac.
We
all
knew
the
combination
had
tremendous
strategic
rationale,
and
we
share
with
you
an
ambitious
strategic
plan
for
the
period
2018
to
2022
with
significant
value
creation
opportunities.
Today,
we
can
comfortably
say
that
the
merger
was
a
success
from
all
angles,
culturally,
operationally,
and
financially.
We
have
created
a
global
sector
leader
that
has
navigated
this
complicated
period
exceptionally
well,
and
outperformed all
the 2022
targets
one
year
in advance.
And
more
importantly,
we
have
a
bright
future
ahead
of
us.
Bruce
will
give
you
more
details,
but
I
can
advance
that
we
are
looking
at
another
strong
year
with
more
organic
and
inorganic
growth,
margin
expansion
and
value
creation
for
our
shareholders.
At
this
point,
I
give
the
floor
to
Bruce,
our
CEO,
who,
along
with
our
Chief
Financial
and
Transformation
Officer,
Xavier,
will
provide
a
deeper
look
at
the
2021
numbers.
Gracias,
Eloi.
Let
me
start
with
comments
on
our
overall
performance
and
highlights
for
the
full
year
period
of
2021,
and
then
turn
it
over
to
Xavier,
our
CFTO
to
provide
more
details
on
the
financial
results.
I
will
then
return
to
provide
some
color
on
our
outlook.
The
numbers
you
see
on
slide
six
are
the
2020
and
2021
financial
highlights
for
January
through
December.
In
the
full-year
period
of
2021
sales
grew
36%
adjusted
for
currency
and
perimeter
compared
to
the
same
period
of
2020
to
€2.187
billion.
This
sustained
growth
was
driven
by
the
continued
demand
momentum
in
residential
pools.
Adjusted
for
currency
and
perimeter,
EBITDA
and
EBITA
grew
75%
and
89%
to
€549
million
and
€482
million,
respectively.
Both
measures
showed
excellent
operating
leverage
despite
the
accelerated
inflationary
pressures
in
the
back
half
of
the
year.
Cash
earnings
per
share
grew
an
outstanding
111%
adjusted
for
currency
and
perimeter
to
€1.72
per
share.
As
a
reminder,
in
2021,
we
have
delivered
a
90%
dividend
increase
with
a
payout
of
€0.40
per
share
as
part
of
our
approximately
50%
cash
net
profit
distribution
policy.
On
operating
net
working
capital,
we
ended
the
period
well,
only
19%
higher
on
a
currency
and
perimeter
adjusted
basis.
The
operating
net
working
capital
ratio
to
sales
increased
only
54
basis
points
to
15.6%,
principally
due
to
acquisitions.
Our
net
debt
stands
at
€1.067
billion.
Our
leverage
ratio
remains
below
our
2
times
target
despite
significant
inorganic
activity
and
the
larger
dividends
paid.
Moving
to
page
7,
let
me
share
some
highlights
for
the
quarter.
As
for
business
performance,
fundamentals
remain
strong
with
a
record
quarter
to
finish
the
year.
We
have
achieved
six
quarters
in
a
row
with
double-digit
growth,
confirming
the
step
change
in
the
industry.
Over the
last
18
months,
we
have
lifted
our
capacity
by
greater
than
70%,
by
increasing
the
number
of shifts,
investing
in
tooling
and
equipment,
while
leveraging
our
existing
manufacturing
footprint.
We
see
another
30%-plus
increase
coming
online
over
the
course
of
2022,
principally
in
the
US
where
we
face
our
largest
backlog.
The
supply
base
has
also
been
reinforcing
their
capacity,
which
should
give
us
better
flow
of
components,
enabling
us
to
take
advantage
of
our
expanding
capacity.
However,
in
the
short
term,
we
are
still
operating
in
a
supply
challenged
environment
as
we
continue
to
face
strong
demand,
combined
with
shortage
of
some
components,
price
volatility
on
raw
materials
and
transportation
issues.
We
have seen
some
improvement
from
the
peak
in
October
and November,
but
it's
still
difficult,
especially
in
North
America.
We're
very
proud
of
our
supply
chain
team
and
how
they
continue
to
deliver.
We
implemented
a
mid-single
digit
plus
price
increase
October
1,
to
protect
our
P&L
in
2022,
as
we
continue
to
experience
inflationary
pressures
on
shipping,
raw
materials,
and
some
components.
This
is
on
top
of
the
two
in
price
increases
over
the
last
year-and-a-half,
when
at
the
beginning
of
last
season
and
another
one
in
season.
As
you
all
know,
this
is
an
extraordinary
situation.
However,
as
we
operate
in
an
industry
that
takes
price,
we've
been
able
to
protect
and
expand
our
gross
margins
in
2021,
and
we
will
continue
to
do
this
as
we
look
forward.
Let's
move
to
capital
allocation.
We
paid
the
second
half
of
the
€0.40
dividend
per
share
in
November
2021,
which
in
total
represented
a
90%
increase
from
last
year.
Earnings
growth
and
cash
generation
continues
to
support
increasing
shareholders
remuneration.
Based
on
our
2021
cash
EPS,
and
keeping
our
50%
payout
policy,
our
dividends
for
2022
will
increase
by
100%.
On
the
M&A
front,
we
acquired
Taylor
Water
Technologies,
a
leading
US-based
manufacturer
of
water-testing
solutions
for
$78
million
in
November
2021.
This
has
been
an
extraordinary
year
for
M&A.
We've
completed
five
deals
in
2021,
four
of
them
in
the
US
for
an
aggregate
investment
of
€494
million.
We're
happy
to
share
that
these
acquisitions
are
performing
ahead
of
plan.
We
continue
to
monitor
the
market
for
additional
accretive
M&A
opportunities,
and
the
pipeline
remains
strong.
Finally,
yet
importantly,
we
are
focused
on
our
ESG
journey
as
it
is
a
key
part
of
our
values.
As
we
recently
shared,
we
refinanced
our
debt
in
January
2022,
thus
simplifying
the
debt
structure,
extending
maturities
and
rebalancing
the
currency
mix.
Terms
are
linked
to
some
of
the
environmental
targets
of
the
Responsibility
Blueprint
plan,
which
reinforces
our
commitment
to
ESG.
Moreover,
we
approved
the
new
Diversity,
Equity
and
Inclusion
policy,
as
well
as
launched
the
Embracing
Diversity
strategy,
which
spans
from
2021
to
2025.
Lastly,
in
terms
of
ESG
rating,
we
are
proud
of
the
CDP's
rating
improvement,
moving
from
C
to
B minus,
and
reflecting
our
commitment
to
sustainable
practices.
Turning
now
to
page
8,
you
see
the
sales
evolution
by
geography.
During
Q4,
global
sales
grew
19%
to
€483
million
on
a
constant
FX
and
perimeter,
on
top
of
17%
growth
of
Q4
2020.
In
the
full-year
period,
sales
grew
an impressive
36%
versus
2020
when
adjusted
for
currency
and
perimeter.
Southern
Europe
saw
an
excellent
performance
in
the
quarter
across
all
regions
led
by
France,
with
currency
and
perimeter-adjusted
growth
of
26%
in
Q4
and
31%
in
this
12-month
period.
The
rest
of
Europe
continued
to
deliver
strong
results
with
constant
FX
and
perimeter-adjusted
growth
of
23%
in
Q4,
driven
by
outstanding
performance
in
Germany
and
Eastern
Europe.
This
region
had
the
toughest
comparable
with
24%
growth
delivered
in
Q4
2020.
In
the
12-month
period,
this
area
saw
adjusted
growth
of
31%.
North
America
continued
its
growth
momentum
with
sales
up
22%
and
56%
on
an
adjusted
basis
for
the
quarter
and
the
12-month
period,
respectively.
The
positive
demographic
trends
driving
excellent
sell-through
along
with
inorganic
activity
drove
the
evolution
in
this
key
region.
Acquisitions
represented
about
€160
million
of
sales,
whereas
the
Texas
freeze
one-off
accounted
for
some
€40
million.
Rest
of
the
world
grew
6%
for
the
quarter
and
15%
for
the
full-year
period
on
a
currency
and
perimeter-adjusted
basis.
This
area
is
supported
by
the
solid
performance
of
Australia.
This
overall
performance
demonstrates
the
continued
growth
and
strength
of
our
markets'
fundamentals.
Next,
on
page
9,
we
see
the
evolution
by
business
unit.
Residential
Pool
is
our
largest
segment
and
accounted
for
75%
of
Q4
sales,
growing
close
to
46%
for
the
quarter,
supported
by
a
continued
robust
demand
and
M&A
activity.
Growth
was
led
by
filters,
pumps,
automatic
cleaners,
and
heaters.
This
segment
is
up
55%
for
the
full-year
period.
Commercial
Pool
recovered
well
in
the
quarter
on
an
easy
comparable
with
a
28%
increase,
helped
by
inorganic
activity.
This
business
unit
saw
a
23%
growth
in the
12-month
period
compared
to
the
same
period
of
last
year.
We
have now
recovered
above
pre-pandemic
figures,
reinforced
with
the
acquisitions,
and
positioning
us
well
for
further
growth.
Pool
Water
Treatment
grew
26%
for
the
quarter.
This
business
unit
saw
strong
performance
of
the
Water
Care
Equipment
segment,
along
with
the
good
evolution
of
Chemicals.
The
segment
is
up
27%
for
the
12-month
period.
The
Fluid
Handling
business
reached
double-digit
growth
of
19%
in
Q4.
On
a
full-year
basis,
this
business
unit
grew
32%.
In
summary,
our
global
footprint
continues
to
play
an
integral
role
in
helping
us
deliver
a strong
growth,
together
with
excellent
cash
generation.
Again,
I
want
to thank
our
talented
team
of
more
than
7,000
employees
and
business
partners
for
their
agility,
positivity
and
sacrifices during
these challenging
times. Moving
at full
speed, keeping
our customers
and values
at
the center
of
all
we
do
makes
me
confident
that
we're
ready
to
continue
executing
the
many
opportunities
that
lay
ahead
of
us.
With
that,
I'll
turn
it
over
to
Xavier
to
explain
the
financial
results
in
more
detail
before
I
return
to
share
our
outlook
and
guidance.
Thank
you,
Bruce.
Let's
turn
to
page
10
now.
In
order
to
provide
you
with
a
consistent
view
of
the
performance
of
the
business,
the
profit
and
loss
account
in
this
page
excludes
non-recurring
expense
in
the
cost
of
goods
sold
and
OpEx
lines.
Below
EBITDA,
you
have
the
non-recurring
charges
identified
in
one
caption.
In
addition,
in
the
appendix,
you
have
the
reported
P&L
with
all
the
non-recurring
expense
properly
classified
by
nature.
Let's
get
started.
Sales
growth
of
47%,
that
is
36%
adjusted
for
currency
and
perimeter,
with
all
geographies
performing
nicely.
Gross
margin
reached
53.1%,
20
basis
points
higher
than
prior
year,
driven
by
price
and
positive
impact
of
value
initiatives
and
synergies,
partially
offset
by
commodity
and
freight
inflation,
country
and
product
mix.
We
have
seen
an
acceleration
of
inflation
impacting
the
quarter
as
we
have
delivered
mainly
orders
which
did
not
have
the
revised
pricing
yet.
We
expect
this
pressure
to
continue
in
Q1,
but
we
are
confident
on
our
pricing
capacity
over
the
long
haul.
Operating
expenses
of
€613
million
with
an
increase
of
32%,
which
is
20%
if
we
adjust
for
perimeter,
showing
great
operating
leverage
comparing
to
a
low
base
in
2020
as
we
had
implemented
COVID-19
expense
reduction
programs.
Provision
for
bad
debt
is
almost
zero,
showing
the
good
industry
situation
around
the
globe.
EBITDA
reached
a
record
€549
million
with
an
increase
of
71%
driven
by
the
higher
sales
volume,
margin
gains
and
excellent
operating
leverage.
EBITDA
margin
reached
25.1%
with
an
improvement
of
350
basis
points.
EBITDA
reached
€482
million,
also
showing
great
leverage,
increasing
by
84%
and
reaching
a
margin
of
22.1%.
Below
the
EBITDA
line,
the
amortization,
which
is
associated
to
M&A,
decreases
3%
despite
incorporating
the
intangible
asset
amortization
of
all
the
new
acquisitions.
Nonrecurring
expense
of
€42.5
million
showed
a
significant
increase
as
we
have
booked
€26.5
million
of
stock-based
compensation,
including
a
catch-up
adjustment
to
reflect
the
overperformance
of
the
company
versus
the
plan.
In
addition,
there
are
almost €16
million
related
to
M&A
activity
that
includes
the
CMP,
Built
Right,
Zen
and
Splash,
S.R.
Smith
and
Taylor
Water
Technology
deals.
Net
financial
result
is
€44
million,
almost
flat
to
2020.
Tax
rate
for
this
12-month
period
is
24%
due
to
a
tax
benefit
in
the
US,
associated
to
the
Zodiac
merger
that
we
have
been
able
to
apply
in
Q2.
This
is
a
one-off
positive
impact
in
2021.
From
here
onwards,
we
should
return
to
a
normal
tax
rate
between
27%
and
28%.
As
a
result
of
higher
volumes
and
margins,
great
operating
leverage,
and
lower
tax
rate,
net
income
reaches
a
record
€252
million
compared
to
€96
million
in
2020.
As
you
know,
we
track
cash
net
profit,
a
good
indicator
for
Fluidra,
as
we
have
a very
significant
amortization
entirely
purchase
accounting
related
that
impacts
our
net
profit
and
EPS
calculation.
Cash
net
profit
also
reaches
a
record
amount
of
€337
million,
with
more
than
100%
increase
over
2020.
Page
11
shows
the
evolution
of
net
working
capital
for
the
group.
Operating
net
working
capital
reached
€341
million,
and
includes
€69
million
of
acquisitions,
which
is
mainly
driven
by
the
incorporation
of
CMP
and
S.R.
Smith.
It
represents 15.6%
of
sales,
50
basis
points
higher
to
prior
year,
which
is
entirely
linked
to
the
acquisitions.
As
if
we
look
at
it
on
a
pro
forma
basis,
the
ratio
would
be
below
15%.
On
inventories,
the
76%
growth
over
2020
is
impacted
by
acquisitions,
with
a
26%
of
growth.
And
then
inflation,
higher
in
transit
due
to
supply
chain
issues
and
investments
for
the
increased
level
of
activity
in
this
supply
challenge
environment.
Excellent
performance
of
account
receivable,
driven
by
a
better
geographical
mix
and
good
collection
patterns
around
the
world.
Accounts
payable
increase
can
be
split
in
23
points
organic
and
11
points
inorganic.
The
increased
level
of
activity
drives
this
organic
growth.
The
following
page
shows
the
free
cash
flow
statement
as
well
as
the
net
debt
evolution.
Excellent
performance
in
terms
of
operating
cash
flow,
reaching
€50
million more
than
in
2020,
driven
by
better
results,
lower
interest
paid,
offset
by
investment
on
inventories
and
higher
income
tax
paid.
On
the
investment
section,
there
are
a
few
significant
changes.
We
have
completed
the
acquisitions
of
CMP,
Built
Right,
Zen
and
Splash
brands,
S.R.
Smith,
and
Taylor
Water
Technologies
for
a
total
of
almost
€500 million.
We
have
also
invested
€86
million
in
the
acquisition
of
Treasury
stock.
In
addition
it
is
important
to
highlight
the
increase
in
shareholder
remuneration
with
dividends
reaching
€78
million,
which
represents
an
increase
of
90%
in
dividend
per
share.
Even
with
all
this
activity,
we
finished
the
year
with
a
net
debt
of
€1.67
billion
and
a
leverage
ratio
of
1.9
times.
So
in
summary,
record
financials
for
an
outstanding
2021.
Before
I
turn
the
call
back
to
Bruce,
I
would
like
to
briefly
comment
on
the
debt
refinancing
that
we
have
successfully
completed
in
January.
The
process
was
neutral
from
a
leverage
point
of
view.
We
were
looking
for
extending
maturities
and
locking
interest
rates,
while
adjusting
the
currency
mix
to
our
current
EBITDA
generation
in
US
dollar
and
euro.
We
have
successfully
raised
a
term
loan
B
with
tenure
to
2029 with
two
tranches,
one
of
$750
million
and
a
margin
of
200
basis
points,
and
the
other
of
€450
million
at
the
margin
of
225
basis
points.
At
the
same
time,
we
have
simplified
the
structure
of
the
net
working
capital
financing
facilities
by
upsizing
the
RCF
to
€450
million,
and
extending
its
tenure
to
2027
and
cancelling
the
AVL,
which
was
due
in
2023.
All
this
refinancing
activity
carries
a
non-cash
write
off
of
€12
million.
We
are
now
well
structured
to
execute
our
plans.
And
with
that,
I
will
give
the
floor
to
Bruce
and
Eloi
for
the
closing.
Thank
you,
Xavier.
Moving
on
to
page
13.
Let's
talk
about
our
outlook
and
specific
guidance.
As
discussed
in
today's
call,
we
saw
a
superb
finish
to
2021,
and
we
remain
positive
for
2022
and
beyond.
Sales
and
sell
through
data
for
January
and
February
suggest
demand
remains
strong.
Momentum
continues
for
new
builds.
Builders
backlog
stretches
through
the
summer
season
with
pent-up
demand
from
2021.
The
aftermarket
remains
strong
driven
by
average
ticket
increase
from
higher
end
products
like
variable
speed
pumps
and
connectivity,
along
with
material
price
increases
to
offset
inflation.
In
addition,
we
continue
to
see
recovery
in
commercial
pool.
We
still
face
some
supply
challenges
mainly
in
North
America
that
are
affecting
our
ability
to
ship
to
our
clients,
increasing
our
backlog
in
the
US,
and
delaying
the
read-through
of
our
new
pricing.
That
delay,
together
with
continued
inflationary
pressures,
will
have
an
impact
on
the
first
half
margins.
In
2021,
we
increased
price
early
in
the
season
before
inflation
kicked
in,
building
a
buffer
that
will
now
play
as
a
difficult
comp
in
2022.
This
will
be
fully
offset
over
the
year
with
our
recently
announced
first
half
price
increase
and
the
full
read-through
of
the
October
2021
increase.
We're
happy
to
share
that
the
integration
of
our
recent
acquisitions
is
on
track.
We
continue
to
monitor
the
market
for
additional
accretive
M&A
opportunities
and
the
pipeline
remains
strong.
Finally,
our
growing
profitability
and
cash
generation
capacity
enables
us
to
keep
increasing
our
shareholders'
remuneration.
In
summary,
2022
will
be
another
strong
year
for
Fluidra.
We
anticipate
sales
growth
from
12%
to
17%.
These
growth
rates
already
include
run
rate
M&A
from
2021,
which
contributes
mid single-digit.
Secondly,
we
estimate
a
mid
to
high single-digit
price
read-through.
Thirdly,
we
see
volume
growth
for
the
full
year
from
new
construction
and
the
continuous
expansion
of
the
aftermarket.
Lastly,
we
adjust
for
the
one-off
impact
of
the
Texas
freeze
from
last
year.
EBIDTA
margin
higher
than
25.5%.
We're
committed
to
deliver
margin
expansion
geared
towards
the
second
half
of
the
year,
largely
driven
by
value
improvement
and
lean
while
we
begin
to
look
at
longer-term
opportunities
to
simplify
the
company.
Cash
EPS
growth
between
10%
and
16%,
driven
by
a
return
to
normalized
28%
tax
rate
after
the
Zodiac-merger
related
tax
benefits.
Additionally,
it's
important
to
point
out
that
this
guidance
should
be
taken
with
following
assumptions.
We
are
assuming
no
additional
major
disruptions
in
the
supply
chain,
inflation
decelerates
on
a
difficult
comparable
in
the
second
half,
current
FX
rates.
Although
Russia
and
Ukraine
represent
less
than
1%
of
our
sales,
the
picture
is
not
clear
yet
on
what
impact
this
tragedy
will
have
on
Europe
or
even
the
global
economy.
Therefore,
we're
not
incorporating
the
potential
impact
of
the
recent
macro
political
crisis
into
our
guidance.
Hopefully,
we
can
get
back
to
peaceful
diplomacy
quickly.
Our
highly
cash-generative
business
will
see
us
continue
with
our
policy
of
accretive
capital
allocation.
We
see
ourselves
as
market
consolidators
through
a
disciplined
process
that
delivers
value
on
the
capital
employed.
Now,
back
to
the
Chairman
to
wrap
up
the
prepared
remarks
before
moving
to
Q&A.
Thank
you,
Bruce.
Thank
you,
Xavier.
As
you
have
seen
from
today's
presentation,
2021
has
been
a
fantastic
year
across
all
regions.
Excellent
results
that
came
with
extraordinary
efforts
from
our
team
to
service
our
clients.
Looking
at
2022,
the
terrible
situation
in
Ukraine
creates
uncertainty
that
is
too
early
to
predict.
We
will
monitor
the
situation
closely.
As
Bruce said,
hopefully,
we
get
back
to
a
peaceful
diplomacy
soon.
Operationally,
we
face
2022 with
a
strong
confidence.
Every
demand,
our
customers
backlog, our
price
increases
and
the
run
rate
of
M&A
all-in
give
us
a
solid
foundation.
We
are
expecting
another
strong
year
for
Fluidra.
And
more importantly,
our
fundamentals
remain
strong.
The
larger
number
of
installed
pools
will
generate
value
in
the
aftermarket
over
the
next
few
years.
In
addition,
those
pools
have
more
and
more
connectivity
and
sustainable
products,
increasing
the
average
ticket.
New
construction
is
running
at
healthy
levels,
and
there is
a
pent-up
demand
for
remodel
that
hasn't
been
serviced
recently.
Looking
at
the
medium
term,
we
are
still
convinced
we
have
opportunities
to
simplify
and
improve
the
company's
efficiency.
All
in,
our
strategy
and
investment
thesis
remain
unchanged.
We
are
the
global
leader
in
an
attractive
market
with
structural
growth.
We
are
reinforcing
our
global
leadership
position
with
market
share
gains
and
bolt-on
acquisitions.
We
drive
our
business
through
our
customer-focused
platform,
leading
the
field
in
IoT
and
connectivity,
where
we
are
investing
for
the
future,
reinforcing
our
ESG
range
of
products,
making
the
efficiency
and
the
sustainability
the
anchor
of
our
activity.
We
have
a
healthy
balance
sheet
and
growing
profitability.
We
plan
to
continue
our
margin
expansion
and
a
strong
cash
conversion.
Our
strong
and
solid
growth,
combined
with
margin
expansion
and
value-accretive
investment,
including
potential
M&A,
deliver
attractive
return
on
capital.
Thank
you
for
joining
us
today
and
for
your
continued
interest.
Now,
I
will
turn
the
call
back
over
to
David
to
begin
our
Q&A
session.
Many
thanks,
Eloi,
Bruce,
Xavier
for
your
presentation.
We
will
now
begin
the
Q&A
session.
Let
me
remind
you
that
you
will
be
able
to
ask
questions
to
management
by
calling
the
telephone
numbers
on
the
Ask
a
Question
tab
of
your
screen.
Operator,
please
go
ahead
with
the
first
question.
Thank
you.
[Operator Instructions]
Our
first
question
comes
from
George
Featherstone
with
Bank
of
America.
George,
the
line
is
yours.
Hi.
Morning,
everyone.
I'd
like
to
start,
if
I
can,
with
a
couple
of
questions
around
the
guidance.
Looking
at
the
revenue
guidance,
the
upper
and
lower
end
of
the
ranges
suggest
there's
some
back-of-the-envelope
calculations.
At
the lower
end,
you're
expecting
low-single-digit
volume
growth,
and at
the
upper
end,
more
like
mid-single-digit.
I'd
just
like
to,
firstly,
understand
if
that's
right
in
terms
of
what
you're
assuming
and
that's
how
we
should
understand
it.
And
then,
within
the
volume
growth
assumptions,
can
you
give
a
little
bit
more
color
on
what
the
primary
drivers
are
in
terms
of
what
you're
expecting
specifically
from
new
construction
versus
the
aftermarket
and
also
by
the
different
regions?
Thanks.
Okay.
Thanks,
George.
I
guess,
as
far
as
the
volume
growth,
I
mean,
you're
reading
the
tea
leaves
correctly,
I
think
they
were
pretty
clearly
laid
out
that
we've
got
the
benefit
of
M&A,
we've
got
the
benefit
of
price,
and
then
the
volume
expectations
kind
of
in
the
range
that
you
said.
And
then,
when you
subtract
out
about
2%
for
the
Texas
freeze,
which
was
mostly
a
first
half
and
pretty
much
exclusively
a
North
American
event.
So,
those
are
the
key
overall
drivers.
We
think
that
new
construction
finished
the
year
of
2021
and
we
haven't
seen
final
numbers
yet,
George.
But
probably
in
the
neighborhood
of
120,000
or
a
little
bit
higher
than
that.
And
we're
expecting
that
new
construction
will
still
be
strong
into
2022.
Right
now,
our
builder
backlog
is
pretty
much
through
the
summer
season,
and
that's
really
across
the
Northern
Hemisphere.
So,
builder
backlog
is
strong
both
in
US
and
in
Europe.
So,
in
other
words,
if
you
want
a
new
pool,
you're
not
getting
it
before
sometime
in
the
back
half
of
the
year,
which
means
all
the leads
that
are
still
coming
in
are
really
setting
us
up
for
the
back
half
and
even
into
2023.
As
far
as
the
aftermarket
is
concerned,
we
continue
to
see unit
growth there.
It's
pretty
much
broad-based,
George,
really
driven
by
the
increase
of
the
number
of
pools
that
are
being
brought
into
the
market
over
the
last
couple
of
years.
So,
I
think
it's
implying
a
good
year
as
we
have
laid
out.
Thank
you,
Bruce.
And
then
maybe
turning
to
the
margin
guidance
as
well.
Could
you
give
a
little
bit
more
detail
on
the
phasing
of
SME?
I
know
you,
kind
of,
mentioned
the
H1,
there'll
be
some
headwinds.
But do
you
expect
margins
in
Q1
and
Q2
to
compare
similarly
to
Q4,
or
should
we
expect
some
different
phasing
there?
Hi,
George.
This
is
Xavier.
Thanks
for
your
question.
You
know
that
we
don't
want to
be
specific
about
guiding
quarter-to-quarter,
but
clearly,
as
we
have
shared
during
the
call,
we
had
some
very
positive
results
in
the
first
half
of
2021,
which
now
will
be
a
tough
comparable.
In
addition
to
these,
we'll
have,
especially,
I
would
say,
in
Q1,
still
backlog
that
doesn't
really
reflect
the
pricing
yet,
the
pricing
impact
of
the
October
1,
as
well
as
the
new
pricing
that,
as
we
have
announced,
will
take
into
effect
at
the
start
of
the
month
of
March.
So,
really
compression,
I
would
say,
in
Q1
and
then
better
results
as
we
move
into
Q2
and
the
back
half
of
the
year.
Great.
Thank
you
very
much.
Our
next
question comes
from
Andre Kukhnin with
Credit
Suisse.
Andre,
please
go
ahead.
Hi.
Good
morning.
Thank
you
very
much
for
taking
my
questions.
I'll
go
one
at
a
time
as
well.
Can
I
just
double-check
a
couple of
things
first?
One
is
on
the
guidance
assumptions
that
you
mentioned
where
you
talked
about
deceleration
of
input
cost
inflation.
Could
you
just
help
with
a
bit
more
color
on
that?
Can
we
read
that
as
at
current
spots
or
does
your
guidance
assume
that
there
is
change
in
spot
rates
from
the
current
levels?
Hi,
Andre.
Thanks
for
the
question.
Again,
without
being
very
specific
on
to
the
assumption
for
each
of
the
quarters,
what
we
assume
is
that
the
inflation
in
the
second
half
of
the
year
cannot
grow
at
current
rates
than
we
have
seen
in
the
last
half
of
2021.
And
therefore,
the
inflation
rate
of
–
the
growth
at
which
inflation
will
grow
will
be
significantly
small.
Okay.
That
sounds
like
you
expect
spot
rates
to
continue
to
increase
but
obviously
with
a
base
effect
at
a
lower
rate.
Is
that
then
the
right
interpretation?
Right
interpretation,
Andre.
That's
a
good
read.
Okay.
Thank
you.
And
can
I
just
take
stock
of –
and
apologies
if
that's
addressed,
but
stock
of
where
2021
landed
in
terms
of
the
amount
of
raw
material
and
logistics
inflation
that
you
saw
and
how
much
of
that
was
offset
by
price?
And
then
if
we
think
about
2022,
could
you
give
us
any
idea
of
how
much
further
inflation
you
anticipate
within
your
guidance
and
how
much
price
you're
carrying
over
already
into
2022?
Okay.
From
a
overall
price
read-through
in
2021,
we
saw
about
6%.
And
amazingly,
commodity
increases
push
on
transportation
was
about
exactly
the
same.
So
I
think
a
good
job
by
our
team
demonstrating
again
the
ability
of
this
industry
to
get
price
and
protect
our
margins.
We
did
have
some
additional
pressure
from
mix,
which
usually
comes
from
both
countries
and
products,
as
Xavier
mentioned
in
his
remarks.
But
I'm
really
pleased
by
the
continued
work
of
our
value
improvement
and
lean
teams,
which
were
able
to
more
than
offset
that
and
ultimately
get
us
some
read-through
in
2021
in
the
margin
line.
Thank
you.
And
for
2022,
if
there's
any
indications
you
could
give
us
on
those
two
line
items.
Yeah.
I
think
the
only
real
specificity
what
I
would
give
you
there,
Andre,
is
that,
whatever
inflation
is,
we're going
to
work
to
go
get
the
price
to
offset
it.
You
might
see
some
noise
quarter
to
quarter,
but
over
that
mid-term
period,
we're
confident
that
we
can
offset
the
inflationary
pressures
with
price.
We
have
announced
a
price
increase
in
October
that
you
guys
would
have known
about.
And
then
we're
enacting
a
price
increase
right
now
here, maybe
I
guess
in
the
next
couple
of
days,
beginning
of
March
that'll
go
across
the
Northern
Hemisphere
as
we
haven't
seen
the
inflation
subside.
Great.
Thank
you.
And
if
I
may
just
last
question,
and
I
appreciate
that's
probably
going
to
be
got
million
dollar question,
so
don't
expect
exact
answer,
but
would
really
appreciate
any
input
from
you
on
a
question
on
how
much
of
a
demand
pull
forward
as
opposed
to
demand
creation
have
we
seen
in
the
last
12
to
18
months
as
we've
seen
this
kind of
substantial
pickup
in
demand
for
you?
Have
you
done
any
work
or
do
you
have
any
estimates
or
data
on
how
much
of
this
pick
up
and
kind
of
above
COVID
level
demand
that
we're
seeing
now
is
due
to
demand
creation?
i.e.
people
who
maybe
did
not
consider
building
a
pool
prior
to
pandemic
have
now
done
it
or
ordered,
one,
as
opposed
to
those
who
were
planning
to
do
it
or
planning
to
do
full
renovation
and
just
ended
up
doing
it
earlier?
Yeah.
We've
actually
spent
a
fair
amount
of
time
on
this,
but
I'm
going
to
say,
Bruce's
opinion
as
opposed
to
fact.
I
mean,
there's
no
way
to
squeeze
out
the
exact
facts,
Andre.
So
first
of
all,
I
do
think
there's
some
pull
forward
in
the
aftermarket.
The
first
clear
spot
that
I
would
say
pull
forward
is
the
Texas
freeze,
because
that
accelerated
replacements
of
pumps,
filters,
valves,
those
types
of
things
that
we
would have
not
naturally
seen.
Hence,
why
you
see
us
in
the
guidance
take
that
as
a
flat
out.
We
also
think
there's
a
couple
of categories
that
have
run
faster
than
the
rest
of
the
overall
market.
We
will
point
to
places
like
heat
and
aboveground
pool.
So
we
think
there
could
be
some
pull
forward
there.
But
the
amazing
piece
is
the
strength
of
the
aftermarket.
As
you
add
more
and more
new
pools
to
the
overall
base,
we
see
growth
there.
We're
seeing
growth
of
average
ticket
before
inflation
because
of
things
like
variable
speed
pumps.
More and
more
people
want
their
pool
connected.
So
the
average
ticket
increase
has
been
nice.
And
then
we've
got
the
addition
of
the
price
to
go
on
top
of
that.
As
you
think
about
new
construction,
I
think
that's
the
real
question.
And
what
I
would
say
is
right
now
the
backlog
continues
to
be
strong.
Leads
are
good.
And so
this
work
from
home,
I
guess,
is
now
probably
turning
into
more
of
a
hybrid
work
from
home.
Work
from
the
office
is
still
there.
The
one
that
we
still
see
incredibly
strong
in
the
US
is
the
flight
from
the
north
to
the
south.
And
as
people
move
from
the
north
to
the
south,
they
want
to put
a
pool
in.
So
right
now,
the
signals
inside
the
pool
industry
are
still
quite
positive,
hence
the
guidance
that
you
have
seen
from
us.
In
addition,
for
Fluidra,
we've
got
a
couple of
other
advantages.
Commercial
has
been
an
area
where
we're
under
indexed
and
have
invested
in.
So
we
see
growth
there,
and
we
also
see
the
benefit
of
the
M&A.
That's
great.
Thank
you
very
much
for
all the
answers.
Our
next
question
comes
from
Francisco
Ruiz
with
BNP
Paribas.
Francisco,
please
go
ahead.
Hello.
Good
morning.
Buenos
días.
I
have
three
questions.
The
first
one
is,
if
you
could
give
us
a
little bit
more
clarity
on
your
margin
expansion
for
next
year. I
mean,
your
volume
growth
would
be
– as
commented
in
the
call,
I
mean,
low single
to
mid single-digit
growth.
So
I
don't know
how
much
of
this
margin
expansion
would
come
on
operating
leverage or
how
much
could
come
on
synergies
and
if
you
had
an
headwind
coming
from
inflation.
The
second
question
is
just
to
clarify,
I
mean,
this
year
we
have
seen
some
big
restructuring
charges
apart
from
the
high
compensation
of
new
shares.
So
what
should
we
expect
for
next
year?
And
last
but
not
least,
you
have
commented
that
whatever
happened
with
the
cost,
you
would
be
able
to
pass
it
through
prices.
How
is
the
competitive
situation?
How
are
your
peers
in
this
situation?
Are
they
still
willing
to
increase
prices
as
much
as
they
need
in
order
to
offset
this?
Thank
you.
Yeah.
Thank you,
Paco.
Gracias.
In
terms
of
the
guidance
for
margin,
which
I
understand
was
your
first
question,
look,
I
think
we've
indicated
that
we
have
this
ability
and
we
have
proven
it
in
the
past,
so
this
ability
to
trespass to our
customers.
And
it's
something
that
comes
from
the
industry
really,
every
bit
of
inflation
that
we
suffer.
In
addition
to
us
trespassing
that
inflation,
we
have
built
into
our
guidance
our
cost
synergies
from
the
acquisitions
that
we
have
done,
as
well
as
the
traditional
1.2
to
1.5
of
value
initiatives
and
lean
manufacturing.
So
all
of
this
is
what
makes
us
feel
confident
that
we
can
deliver
on
the
margin
gain
that
we
have
included
in
the
guidance.
As
to
your
second
question,
for
nonrecurring,
we'll
get
back
to
a
more
normalized,
if
you
want,
stock-based
compensation
charge.
It's
true
that
we
are
going
to
go
to
the
next
shareholder
meeting
with
a
new
long-term
incentive
plan
for
the
management
team.
And
since
that
is
yet
not
approved,
it's
difficult
for
me
to
give
you
a
number.
But
I
think
that
if
you
assume
that
from
a
stock-based
compensation,
you
will
get
a number
of
around,
I
would
say,
€20
million
that
should
be
saved.
And
then
again,
on
the
deals,
difficult
to
know.
The
pipeline
is
strong,
and
I
would
use
an
assumption
of
around €10
million
for
that safe
bets.
Okay.
Thank
you.
Our
next
question
comes
from
Christoph
Greulich
with
Berenberg.
Christoph,
please
go
ahead.
Yes.
Good
morning
and
thanks
for
taking
my
questions.
I
would
like
to
start
with
a
question
on
pricing.
So
you
mentioned
that
you're
going
to
implement
another,
price
increase
in
the
coming
days.
So
could
you
give
us
any
indication
on
the
magnitude
of
the
price
hike
and
when
exactly it
will
really
fit
through
the
P&L?
So
I
understand
there
might
be
some
delay
between
implementing
the
price
increase and
that really affecting
the
prices of
the
products
you're
selling.
Okay.
Hey,
Christoph,
it's
Bruce.
Before
I
answer
that
one,
I'm
going to
go
back
and
answer
Paco's
third
question
which
was
the
price
increases,
what
are
we
seeing
in
the
pool
industry
I
guess,
from
competitors,
et cetera?
And
I
would
say,
it's
normal,
it's
historic
for
this
industry
to
take
price.
And
so
it's
not
a
fluid
or
a
standalone
initiative.
I
can't
say
that
it's
exactly
the
same
clearly.
But
I
would
say
we're
all
in
the
same
neighborhood
of
price
increases
and
timing.
There
might
be
a
month
or
two
delay
here
or
there,
or
acceleration
for
some
versus
others.
But
again,
it's
an
industry
that's
demonstrated
its
ability
to
take
price
and
will
continue
to
do
so.
And
I
think
the
good
news
at
this
point
in
time
is
it's
been
pretty
inelastic.
We
haven't
seen
any
cancellations
of
the
of
the
builder
backlog.
And
remember,
I
mean, the
majority
of this
market
is
driven
by
the
aftermarket,
the
annuity
like
aftermarket.
And
if
you
need
to
–
your
pump
breaks
down,
you
need
to
replace
it
or
your
pool's
green
in
three
days.
So
it's
not
so
discretionary.
So
that's
what
we
see
so
far.
Christophe,
I'll
go
to
you
now.
And
so
if
we
talk
about
the
recently
announced
price
increase,
it'll
take
place
over
the
next
couple
of
weeks,
depending
on
which
geography
you
are.
Let's
call
it
low
to
mid single-digit,
which
on
top
of
that
price
increase
for
in
October,
we'll
expect
that
read-through
to
be
into
that
mid
to
high
single-digit.
As
far
as
the
timing
of
the
read
through,
I
mean,
clearly
we're
going
to have
pressure
in
Q1,
maybe
a
little
better
performance in
Q2,
but
it's
really
going to
be
back
half
weighted.
And
it's
impossible
for
me
to
say
at
this
point
exactly
when
to
go
through
just
because
of
the
backlog
that
we
have
but
also
the
capacity
that's
coming
online
that
never
ramps
up
at
exact
speed
and
how
the
orders
flow,
whether
it's
more
US
based
or
whether
it's
more
European
based.
But
again,
we
feel
confident
over
the
course
of
the
year.
Okay.
That's
fair.
And
you
were
saying
there
are
some
differences
between
Europe
and
the
US,
so
that
the
magnitude
of
the
price
hike
is
very
different
between
the
two
regions?
It's
maybe
marginally
lower
in
Europe
but
not
dramatically.
Europe
was
maybe
a
little
bit
higher
in
October,
and
the
US
was
a
little
bit
lower, and
I
think
now
we've
reversed
it
in
the
March
price
increase.
Okay.
That
is
clear.
Then
I
was
wondering
when
I
look
at
the
organic
growth
figures
in
Q4
for
the
individual
regions,
I
mean,
we
have
seen
so
far
in
the
year
until
the
Q3
that
the US,
by
far,
or
North
America
was
the
strongest
growing
region
from the
organic
point
of
view
for
you.
I
mean,
it
seems
now
that
trend
has
somewhat
changed
in
the
fourth
quarter.
So
just
wondering
if
there
are
any
kind of
important
factors
that
have
led
to
this
change
in
the
trend.
Well,
we've
talked
about
it
all
along.
I
mean,
I
could
say
that
the
North
America
run
rate
could
have
been
higher
in
Q4,
but
we
certainly
were
facing
continued
supply
challenges,
in
particular
the
ports
in
the
West,
I
think,
hit
a
peak
of
backlog
in
October
and
November
as
other
products,
et cetera, we're
trying
to
get
in
for
the
Christmas
season.
So,
it
was
a
little
lower
on
our
production
in
Q4
than
we
would have
certainly
like
to
satisfy
our
customers'
needs.
We're
getting
better
as
more
capacity
comes
online,
and
I
would
say
that
although
there are
still
backlog
in
all
those
ports,
it's
about
half
of
what it
was
in
that
October-November
timeframe.
Okay.
And
then
my
last
question
is
with
regards
to
the
inventory
levels
you
see
at
the
distributors
at
the
moment,
at
your
clients.
Are
these
levels
basically
in
line
with
what
you've
seen
pre-pandemic?
Do
you
think
there's
still
further
room
to
increase
those
as
basically
the
supply
chain
further
normalizes, or
what's
the
current
view
on
that
at
the
moment?
So,
interesting
question,
Christoph,
and I'll
go
to
the
really
short
answer,
which
is
inventory
turns
are
still
improving
out
in
the
marketplace
with
our
clients,
which
I
think
implies
that
inventory
levels
are
not
too
high.
I
will
tell
you
that
after
two
years
of
supply
chain
constraints,
pool
pros
are
prepping
for
another
strong
season,
builder
backlogs
there,
all
those
things.
So
they're
definitely
forecasting
a
strong
season
and
are
trying
to
prepare
for
it.
But
in
the
end,
I
think
the
best
measure
is
inventory
turns
and
inventory
turns
are
in
really
good
shape.
Great. Yeah.
That's
all
from
my
side.
Thank
you
very much.
Our
next
question
comes
from
Álvaro
Lenze
with
Alantra.
Álvaro,
please
go
ahead.
Hi.
Thanks
for
taking
my
questions.
First
one,
apologies
for
going
back
again
to
the
margin
guidance. With
the
mid-single-digit
price
increases,
I
know
that
you
may
raise
prices
again
in
H2,
but
looking
at
the
inflation
dynamics
that
we
are
seeing
right
now
in
commodities
and
logistics
and
so
on,
and
your
exit
rate
in
terms
of
gross
margin
that
shows
a
decline
year-on-year,
should
we
expect
this
50-basis-point
expansion
in
EBITDA
margin
to
come
mostly
from
the
lean
initiatives
and
simplifying
the
structure
and
operating
leverage
on
higher
volumes
or
do
you
also
expect
to
increase
gross
margin?
That
would
be my
first
question.
And
second
question
would
be
just
to
understand
the
increase
in
volumes
you
see
for
the
industry.
Of
course,
the
supply
seems
very
constrained
right
now.
It
was
also
very
constrained
at
the
beginning
of
2021.
So
I
wanted
to
know
if you
could
provide
us
some
indication
of
how
the
capacity
on
the
side
of
the
pool
pro
is
evolving,
whether
you
see
that
they
are
increasing
their
teams
with
all
the
– especially
in
the
United
States
with
all
the
difficulties
in
the
labor
market,
whether
you
see
a
significant
increase
in
the
pool
pro
capacity
to
justify
this
volume
increase?
Thank
you.
Okay. So, thanks, Álvaro.
I
guess,
first,
as
far
as
the
gross
margin
increase
and
whether
we
see
it
being
driven
by
price,
we
never
really
bank
on
pricing
improving
our
gross
margin.
Our
goal
with
price
is
to
offset
any
inflation
and
maybe
to
give
a
little
bit
of
help
on
mix.
But
we
don't
really
expect
price
to
be
the
driver
of
improving
our
gross
margin.
What
we
do
is
like
to
have
that
at
a
neutral
page
and
then
all
the
work
that
we
do
on
lean,
BI
synergies
coming
through
the
deals,
some
additional
leverage
is
really
what
drives
that
margin
improvement.
Okay?
So that's
the
first
one.
As
far
as
the
supply
constraint,
yes,
industry
is
supply
constrained
right
now,
from
both
the
manufacturers
and
the
pool
pro.
From
a
manufacturer
perspective,
the
backlog
was
not
as
big
at this
time
last
year
as
it
is
this
year.
So,
the
entry
into
the
year
is
a
little
tougher,
especially
when
you're
talking
about
that
price
read-through.
But
it
certainly
gives
us a
help
as
far
as
the
look
at
the
overall
2022.
As
far
as
capacity
on
the
pool
pro,
I
do
think
that
capacity
has
expanded.
I
would
point
to
new
pool
construction
in
2021
as
a
sign
that
it
really
did
expand.
We
were
expecting
a
new
pool
construction,
probably
around
115,000
units
in
the
states,
and
it
ended
up,
we
think,
at
120,000-plus.
So,
coming
off
of
a
couple
of good
growth
years
that
says
that
we
grew
over
25%
in
pools,
and
that
means
some
new
pool
pros
had
to
be
coming
online.
But
I
agree
with
you, I
mean,
labor
is
tough,
especially
in
the
States.
And
so,
I
think
it's
still
going
to be
muted
in
how
fast
that
expansion
is.
Thank
you.
Our
final
question
comes
from
Manuel
Lorente
with
Mirabaud.
Manuel,
please
go
ahead.
Hi.
Good
morning.
My
first
question
is,
on
a
like-for-like
basis,
we
have
seen
revenues
go
up
roughly
36%
on
a
full-year
2021,
of
which,
if
my
understanding
is
correct,
roughly
plus
6%
has
been
a
combination
of
price
and mix.
So,
the
remaining
30%
should
be
coming
from
volume.
Can
you
give
us
an
idea
of
the
split
of
that
volume
growth?
This
is
mostly
upgrades
and
updates.
This
is
mostly
new
builds.
These
are
a combination,
more
or
less,
of
both
or
it's
too
early
to
say?
I
guess,
as
far
as
our
internal
official
statistics,
which
are
not
really
that
official,
it's
too
early
to
say.
We
probably
don't
have
those
until
sometime
later
in
the
second
quarter.
But
I
would
–
my
reaction
to
your
question
would
be
it's
coming
from
both.
So,
clearly,
new
construction
is
up.
Average
ticket
on
the
new
construction is
going to
be
up.
But
to
get
to
that
kind
of
growth
across
the
industry,
it
has
to
be
in
the
aftermarket,
which
is
the
much
bigger
piece
as
well.
And
so,
as
units
continue
to
upgrade, people
are
using
their
pool
more,
all
that
is
good
for
us,
seeing
more
variable
speeds,
seeing
more
connectivity,
these
things
are
all
positive
for
the
industry.
I
see.
And
my
next
question –
sorry
to
come
back
on
this
again
– it's
about
the
phasing
of
the
margin
expansion
for
this
year. I'm
a
little
bit
intrigued
about
what
Eloi
was
saying
about
a
further
margin
compression
in
Q1.
This
is
from
the
20%
margin
of
the
fourth
quarter standalone
or
from
the
25%
margin
of
the
full
year?
No,
Manuel,
this
is
related
to
where
we
were
last
year,
and
that's
where
we
expect
to
see
margin
compression.
We
had
an
exceptionally
positive
Q1 in
2021,
and
that's
where
we
are
going to
be
seeing
margin
compression.
In
reality,
when
you
look
at
our
margin
quarter
to
quarter,
you
see
that
there
is
a
pattern
because
mix
of
countries
and
type
of
products
that
we
sell.
So
whenever
we
reference
compression
in
a
given
quarter
and
so
on,
it's
always
to
prior
year
because
margin
changes
quarter-to-quarter,
But
this
is
very
difficult,
because
visibility
at
this
stage
is
current,
it's
very,
very
limited.
But
is
it
fair
to
say
that
these
20%
margin
of
the
whole
quarter
should
be
the
trough
of
this
year?
Can
you
elaborate
a
little
bit
more
on
this,
Manuel?
I
don't
really
understand
the
question.
Yes,
sure.
I
mean,
your
implicit
guidance
points
to
25.5%
or
more
than
that
margin
for
2022.
Is
this
back-end
loaded
type
of
margin?
My
point
is,
whether
there's
going
to
be
a
20%
margin
throughout
the
first
half
of
the
year,
and
then
roughly
30%
margin
in
the
second half
of
the
year,
or
we
should
only
expect
such
a
margin
erosion
on
the
first
part
of
the
year
because
of
the
combination
of
price
hikes,
operational
leverage,
efficiencies,
et
cetera?
Yeah.
No.
As
I
was
pointing
out,
Manuel,
and
you
know
that
we
don't want to
guide
specifically
on
margins
quarter-to-quarter.
But
our
first
half,
obviously.
is
the
half
of
the
year
in
which
we
make
higher
margins.
So
what
we
are
saying
is
we're
going
to have
compression
against
that
–
the
margins
that
we
had
in
2021
first
half.
But
this
doesn't
mean
that
we're
going
to be
running
at
these
20%
levels
that
you're
pointing
out.
Okay.
Thanks.
And
my
last
question
probably.
It
looks
like
now
that
price
per
dollar
pool
with
the
price
hike
from
the
last
two,
three
years
have
significantly
increased.
So
did
you
see
any
potential
acceleration
of
the
do-it-yourself
type
of
business,
further
competition
from
the
sides
or
something
like
that?
Yeah.
Interesting
question.
I
think
at
this
point,
both
sides
have
shown
nice
increases.
So
I
wouldn't
say
that
there's
anything
particularly
different
one
way
or
the
other
at
this
point.
Voila.
Thank
you.
We
have
no further
questions
on the
phone
lines.
So
I'll
hand
back.
Okay.
Thank
you,
everyone.
This
marks
the
end
of
today's
presentation.
We
thank
our
speakers
and
participants.
As
always,
please
feel
free
to
reach
out
to
our
Investor
Relations
department
for
further
queries.
Thank
you
very
much.