Seb Sa · EURONEXT:SK
Seb Sa — Groupe SEB — FY2015 Earnings Presentation
76 slides from Seb Sa's earnings presentation, Feb 25, 2016
Slide 1: 2015 Full-Year Results
2015 FULL-YEAR RESULTS Paris – February 25, 2016 Watch the webcast of the meeting on www.groupeseb.com AIRBAKE I ALL-CLAD I ARNO I ASIAVINA I CALOR I CLOCK I IMUSA I KRUPS I LAGOSTINA I MAHARAJA. WHITELINE I MIRRO I MOULINEX I PANEX I ROCHEDO I ROWENTA I SAMURAI I SEB I SUPOR I TEFAL I T-FAL I UMCO
Slide 2: Warning
2015 FULL-YEAR RESULTS Paris – February 25, 2016 Warning This presentation may contain information of a provisional nature relative to the financial situation, results, businesses, strategy and projects of Groupe SEB. While Groupe SEB considers that these statements are based on reasonable assumptio
Slide 3: 2015 Full-Year Results agenda
2015 FULL-YEAR RESULTS Paris – February 25, 2016 1. Achievements in 2015 2. Business activity and results 3. Outlook 4. Annexes 2015 FULL-YEAR RESULTS speaker 3
Slide 4: 1. Achievements in 2015
2015 FULL-YEAR RESULTS Paris – February 25, 2016 1. Achievements in 2015 2015 FULL-YEAR RESULTS speaker 4
Slide 5: General context
General context • Downturn in consumption in • Firm demand in Europe, the USA some countries: Russia / and China Ukraine, Brazil, Thailand… • Strengthening of USD and CNY • More favorable price environment (purchasing currencies / short) • Fall in commodities prices • Depreciation of several emergin
Slide 6: 2015 key figures
LFL: like-for-like (constant exchange rates and 2015 key figures scope of consolidation) Sales ORfA Reported LFL €4,770m €428m €525m +8.0% LFL +16.3% +43.0% +12.1% in € Op. margin 9.0% Op. margin 11.4% Net income Net debt at 31/12 €206m €316m +21.2% - €137m vs 2014 Dividend Dividend Proposed €1.54 +
Slide 7: 2015 in review: an excellent year
2015 in review: an excellent year Healthy and well balanced organic growth - All regions - All product lines - All distribution channels Very strong improvement in results - Negative currency effects more than offset - Increased growth drivers, as announced Significant debt reduction - Improvement i
Slide 8: Growth in all regions
Growth in all regions Mature countries +7% LFL 54% Top 20 countries 86% of sales 46% Emerging +9.3% countries +9% LFL 2015 FULL-YEAR RESULTS speaker 8
Slide 9: Growth in all product lines
Growth in all product lines Cookware Home comfort Beverage Linen care Biggest preparation growth contributors Food preparation Personal Electrical cooking care Home care 2015 FULL-YEAR RESULTS speaker 9
Slide 10: Growth in all distribution channels
Growth in all distribution channels Distribution channels PURE PLAYERS SPECIALISTS MASS RETAILERS DEPARTMENT STORES TRADITIONAL STORES GROUP RETAIL Top 30 Clients Around 45% of sales +12% LFL 2015 FULL-YEAR RESULTS speaker 10
Slide 11: speaker
2015 FULL-YEAR RESULTS speaker 11
Slide 12: Acquisition of OBH Nordica
Acquisition #1 of OBH Nordica • 2014-2015 sales: €66m (SEK 628m) #1 #1 • Leadership position in SDA in Scandinavia: 7% MS • Very strong brand awareness > 90% • 4,200 outlets Potential and initiated synergies #1 Products Purchasing Sales 2015 FULL-YEAR RESULTS speaker 12
Slide 13: Reorganization: strengthened Executive Committee
Reorganization: strengthened Executive Committee Thierry de La Tour d’Artaise Bertrand Neuschwander Chairman and CEO Chief Operating Officer Frédéric Verwaerde Vincent Léonard Executive ViP, Asia-Pacific Senior Executive VP, Finance Cyril Buxtorf Harry Touret Executive VP, EMEA Senior Executive VP,
Slide 14: New bond issue
New bond issue €500m, 7 years (maturity 25.11.2022) – Coupon: 2.375% 5 times over-subscribed Objectives: • Anticipate the refinancing of the 2011 bond maturing in June 2016 • Extend average debt maturity • Take advantage of attractive financing conditions Bonds admitted to trading on Euronext Paris.
Slide 15: New increase in ownership of Supor
New increase in ownership of Supor Agreement to buy 50 million shares, or 7.9% of Supor capital, from the Su family Unit price of RMB 29 Transaction cost = RMB 1,450m, or roughly €200m To be finalized in mid-2016 subject to approval by the Chinese authorities Free float 17.68% Founding family Groupe
Slide 16: Our commitments and achievements in 2015
Our commitments and achievements in 2015 Objectives Actual Maintain Product dynamic Investment in innovation €156m, +7% LFL Investment in A & P + marketing €390m, +16% LFL Ensure business recovery in Japan Sales +11% LFL and win back market share Improved market share: +0.7 pts in kettles, +3.1 pts
Slide 17: 2. Business activity and results
2015 FULL-YEAR RESULTS Paris – February 25, 2016 2. Business activity and results 2015 FULL-YEAR RESULTS speaker 17
Slide 18: 2.1 Sales
2015 FULL-YEAR RESULTS Paris – February 25, 2016 2. Business activity and results 1. Sales 2. Results 2015 FULL-YEAR RESULTS speaker 18
Slide 19: 2015 sales by geography
2015 sales by geography Current Recap 2014 2015 LFL forex 2014/2013 LFL France 700 739 +5.6% +5.6% +5.1% Other Western EU 849 970 +14.1% +9.7% +2.8% countries North America 496 599 +20.8% +6.7% +4.0% South America 421 374 -11.2% +3.4% +6.9% Asia-Pacific 1,132 1,453 +28.3% +12.8% +7.9% Central Europe
Slide 20: LFL sales growth by quarter
LFL sales growth by quarter Year 2013 2014 2015 % +5.4% +4.6% +8.0% 12 10.0 10 9.4 2013 7.9 7.8 8 7.2 2014 6.2 2015 6 5.1 4.1 4.9 4 3.5 2.7 3.2 2 0 Q1 Q2 Q3 Q4 2015 FULL-YEAR RESULTS speaker 20
Slide 21: Change in revenue, 2014 to 2015
Change in revenue, 2014 2015 In €m +29 +149 +339 LFL Currency effect Scope effect growth (OBH Nordica) 4,770 +8.0% +3.5% +0.6% 4,253 +12.1% 2014 2015 2015 FULL-YEAR RESULTS speaker 21
Slide 22: Currency impact on 2015 sales
Currency impact on 2015 sales In €m 150 Q1: €60m + €149m Q2: €67m Q3: €12m 100 Q4: €10m 50 0 -50 CNY USD GBP KRW JPY VND INR THB CHF EGP SGD CAD TRY UAH COP RUB BRL 2015 FULL-YEAR RESULTS speaker 22
Slide 23: Exchange rate fluctuations
Exchange rate fluctuations 2014 2014 2014 5,8 EUR / CNY Moyen 2014 Average 0,80 EUR / USD Moyen 2014 Average 1500 EUR / COP Moyen 2014 Average 2015 2015 2015 2000 Moyen 2015 Average 1,00 Moyen 20115 Average Moyen 2015 Average 6,8 2500 1,20 3000 7,8 3500 1,40 8,8 4000 J F M A M J J A S O N D J F M A
Slide 24: Breakdown of Group sales by geography
Breakdown of Group sales by geography Central France Europe, 16% Russia and 16% other countries 13% 15% Other Western EU 20% 20% Asia-Pacific 30% 27% North America South 13% America 12% 8% 2014 sales 10% 2015 FULL-YEAR RESULTS speaker 24
Slide 25: Top 20 countries
Top 20 countries 11 mature 9 emerging USA Colombia JAPAN GERMANY Canada CHINA Belgium Saudi Arabia UK BRAZIL Turkey Mexico Netherlands ITALY South Korea RUSSIA SPAIN Poland Czech Republic FRANCE TOP 10 COUNTRIES 2015 FULL-YEAR RESULTS speaker 25
Slide 26: speaker
2015 FULL-YEAR RESULTS speaker 26
Slide 27: Russia
Russia Russia No. 10 Group country • Market -30% in volume -15% in value (RUB) • 2015 sales stable LFL Price increases Resilient core business Firm contribution of LPs • MS gains at end-2015 +1.9 pt in kitchen electrics +1.6 pt in cookware +1.1 pt in haircare 2015 FULL-YEAR RESULTS s
Slide 28: Optimized in-store execution
Optimized in-store execution Number of demonstrators x 3 in 3 years Example of merchandising - Eldorado: 200 TEFAL areas across the territory TEFAL shelves +20% Sales +50% Average basket +33% speaker 2015 FULL-YEAR RESULTS 28
Slide 29: Japan
Japan No. 6 Group country • Growth in iron and kettle markets • Cookware market stable • 2015 sales +11% LFL Outperformance in cookware Growth in kettles MS > 52% +0.7 pt Growth in irons and garment steamers MS ≈ 12% +3 pts • Price adjustments and strong in-store marketing • Acceleration in on
Slide 30: Ongoing development of T-fal Home & Cook stores
Ongoing development of T-fal Home & Cook stores 24 stores (+5) 20% of Group sales in Japan Sales +13% 2015 FULL-YEAR RESULTS speaker 30 30
Slide 31: Brazil
Brazil No. 5 Group country • Market: -4% (SDA) • 2015 sales stable LFL Growth in SDA: fans, kitchen machines, Dolce Gusto espresso coffee maker Decline in cookware Q4 more difficult, overall • SDA market share +1.4 pt • Profitability under pressure Local competitiveness initiatives 2015 FULL
Slide 32: New Silence Force
New Silence Force • 40% more power than competitors • The most powerful and silent fan of the market • 6 blades, new patented grilles 2015 FULL-YEAR RESULTS speaker 32
Slide 33: China
China No. 1 Group country • Growing market, driven by e-business • 2015 Supor sales > €1bn +17% LFL Outperformance in kitchen electrics Supor No. 2 in 2015 Growth in all cookware categories > 50,000 outlets Investment in A & P + marketing +20% e-commerce + m-commerce, a major driver • > 20
Slide 34: Double-11 day
Double-11 day Supor sales on T-Mall > RMB 300m (≈ €43m) 2015 FULL-YEAR RESULTS speaker 34
Slide 35: France
France No. 2 Group country • Growing market • 2015 sales +5.6% / +5.2% excluding LPs Cookware Cookeo, Soup & Co / Easy Soup, vacuum cleaners, Cuisine Companion, steam generators, coffee / tea machines All clients, sharp increase in online sales • Growth drivers +20% Strong in-stores initiati
Slide 36: Market share
Market share Cookware +6.5 pts Market share SDA +0.6 pt 13 Group products in Top 30 hitlist 2015 FULL-YEAR RESULTS speaker 36
Slide 37: Germany
Germany No. 4 Group country • Growing market • 2015 sales +12% / +9.5% excluding LPs Cookware: core business + LPs SDA: OptiGrill, Prep & Cook (Cuisine Companion), vacuum cleaners, full-automatic espresso machines... Reinforced MS in these categories • Growth drivers +30% • > 20% of sales made o
Slide 38: speaker
2015 FULL-YEAR RESULTS speaker 38
Slide 39: India
India No. 24 Group country • Indian market growing • 2015 sales +30% LFL Broader product portfolio Number of traditional outlets x 2 Optimized in-store execution Online sales 12% of sales vs. 2% in 2014 Advertising spend + PR x 2 • Overal improvement in MS 2015 FULL-YEAR RESULTS speaker 39
Slide 40: Massive digitalization
Massive digitalization - Website: 150,000 pages viewed / month on average - 325,000 Facebook fans - 1.75m views on YouTube speaker 2015 FULL-YEAR RESULTS 40
Slide 41: speaker
2015 FULL-YEAR RESULTS speaker 41
Slide 42: 2015 top performers by product line
2015 top performers by product line % sales growth, LFL % 20 Home care Home comfort Cookware Beverage preparation 8 Food preparation Linen care Electrical cooking Personal 0 care 2015 FULL-YEAR RESULTS speaker 42
Slide 43: Linen and personal care
Linen and personal care Effectis Easygliss / Ultraglide Compact Steam Steampod Shared technical platform Instant Control 2015 FULL-YEAR RESULTS speaker 43
Slide 44: Home care
Home care Silence Force 4A Air Force Extreme Intense Pure Air Silence Force 2015 FULL-YEAR RESULTS speaker 44
Slide 45: Kitchen electrics
Kitchen electrics OptiGrill Cookeo Cuisine Companion Spherical pot rice cooker Easy Soup Tefal for Southeast Asia 2015 FULL-YEAR RESULTS speaker 45
Slide 46: Beverage preparation
Beverage preparation Dolce Gusto Kettles Full-automatic espresso machine Draft beer system 2015 FULL-YEAR RESULTS speaker 46
Slide 47: Cookware
Cookware 2015 FULL-YEAR RESULTS speaker 47 40
Slide 48: speaker
2015 FULL-YEAR RESULTS speaker 48
Slide 49: Digitalization for the Group: e-offering
Digitalization for the Group E-OFFERING Actifry Smart Cooking Connect Connected rice cooker Cookeo Connect 2015 FULL-YEAR RESULTS speaker 49
Slide 50: Digitalization for the Group: e-marketing, e-commerce
Digitalization for the Group E-MARKETING E-COMMERCE web and mobile Web sites Apps Social networks Pure players Click & mortar • Informative content • Assortment • Advertising • Price • Position / referencing • Product information • Targeting Descriptions / photos / videos • E-influencer relations •
Slide 51: 2.2 Results
2015 FULL-YEAR RESULTS Paris – February 25, 2016 2. Business activity and results 1. Sales 2. Results 2015 FULL-YEAR RESULTS speaker 51
Slide 52: Operating Result from Activity (ORfA)
Operating Result from Activity (ORfA) As In €m 2014 2015 reported LFL Sales 4,253 4,770 +12.1% +8.0% Operating expenses 3,885 4,342 Operating Result 368 428 +16.3% +43.0% from Activity (ORfA) Operating Margin 8.7% 9.0% +0.3 pts +2.7 pts 2015 FULL-YEAR RESULTS speaker 52
Slide 53: ORfA bridge
ORfA bridge +40 -62 In €m -10 +116 - -100 3 +73 525 +3 Scope Currency effect Volumes Price Purchasing Growth drivers Sales/ 11.4% (OBH Mix productivity marketing and administrative Nordica) 428 expenses 9.0% 368 8.7% 2014 2015 2015 LFL 2015 FULL-YEAR RESULTS speaker 53
Slide 54: Growth drivers: Innovation
Growth drivers: Innovation In €m 2014 2015 Strategic marketing 60 68 R&D 94 100 TOTAL 154 168 +7% LFL Gross amount, before French research tax credit and capitalization 2015 FULL-YEAR RESULTS speaker 54
Slide 55: Growth drivers: Advertising and Marketing
Growth drivers: Advertising and Marketing In €m 2014 2015 Advertising 105 121 Operational marketing 213 269 TOTAL 318 390 +16% LFL Sales cooperation 96 115 & consumer promotion 2015 FULL-YEAR RESULTS speaker 55
Slide 56: Operating profit
Operating profit In €m 2014 2015 Operating Result from 368 428 +16.3% Activity (ORfA) Discretionary and non- (33) (31) discretionary profit-sharing Other operating income and (21) (26) expense Operating profit 314 371 +18.4% 2015 FULL-YEAR RESULTS speaker 56
Slide 57: Net income
Net income In €m 2014 2015 Operating profit 314 371 +18.4% Interest expense (31) (28) Other financial expense (18) (20) Taxes (71) (82) Non-controlling interests (24) (35) Profit attributable to 170 206 +21.2% owners of the parent 2015 FULL-YEAR RESULTS speaker 57
Slide 58: Summarized Balance sheet
Summarized Balance sheet In €m 31/12/2014 31/12/2015 Tangible fixed assets 1,593 1,655 Operating WCR 954 1,013 Total capital employed 2,547 2,668 Equity 1,725 1,908 Provisions 243 240 Other current assets and liabilities 126 204 Net debt 453 316 Total financing 2,547 2,668 2015 FULL-YEAR RESULTS spe
Slide 59: Significant improvement in WCR
Significant improvement in WCR in €m as % of Sales 1013 1000 954 950 900 22.4 % 850 800 750 21.0 % 700 650 600 20,00 2014 2015 2015 FULL-YEAR RESULTS speaker 59
Slide 60: Analysis of change in debt
Analysis of change in debt Operating cash flow €257m (€175m) In €m 2014 -448 126 121 26 0 +81 -46 453 453 +85 -534 +70 -46 Currency Other non WCR Other operations Dividends operating 316 +136 36 Invest. Debt -81 +117 Debt -81 end-2015 end-2014 Cash Taxes and flow interest 2015 FULL-YEAR RESULTS spea
Slide 61: Healthy debt ratios
Healthy debt ratios Ratio at 31/12 Debt to equity 1 0.7 0.5 0.6 0.5 0.5 0,5 0.4 0.2 0.3 0.3 0.2 0.1 0 05 06 07 08 09 10 11 12 13 14 15 Ratio at 31/12 Net debt/EBITDA 1.9 1.7 2 1.3 1.3 1.3 0.9 1.0 0.6 0.6 0.3 1.2 0 05 06 07 08 09 10 11 12 13 14 15 2015 FULL-YEAR RESULTS speaker 61
Slide 62: A solid financing architecture
A solid financing architecture In €m 2,230 Other lines 50 560 Syndicated credit line 2/3 of ressources > 1 year Schuldschein 220 1/3 of ressources < 1 year 500 (After refund of the 1st bond issue) Bond issue 300 Commercial paper 600 Available resources 2015 FULL-YEAR RESULTS speaker 62
Slide 63: 3. Outlook
2015 FULL-YEAR RESULTS Paris – February 25, 2016 3. Outlook 2015 FULL-YEAR RESULTS speaker 63
Slide 64: Our take on the markets in 2016
Our take on the markets in 2016 WESTERN EUROPE SDA market well oriented EURASIA NORTH AMERICA Ongoing Russian issues Subdued growth in demand CHINA SDA market holding up firm SOUTH AMERICA Very difficult economic situation in Brazil ASIA-PACIFIC Continued firm demand in emerging countrie
Slide 65: Home care launches
Home care launches First half-year Clean & Steam Silence Force Smart Protect Compact 4A Access’Steam Silence Force Repelente 2015 FULL-YEAR RESULTS speaker 65
Slide 66: Kitchen electric launches
Kitchen electric launches First half-year Infiny Force Induction steam rice cooker, spherical pot Infiny Juice Plancha Savoy des Saveurs EasyPro Dolce Gusto Drop OptiGrill XL 2015 FULL-YEAR RESULTS speaker 66
Slide 67: Cookware launches
Cookware launches First half-year D3 Aluminum cast 2015 FULL-YEAR RESULTS speaker 67
Slide 68: Guidance 2016
Guidance 2016 2013 2014 2015 Sales +5.4% +4.6% +8.0% ORfA 410 M€ 368 M€ 428 M€ +7% à LFL +13% LFL +43% LFL Currency effect on - 35 M€ - 94 M€ - 100 M€ ORfA Achieve another year of organic sales growth 2016 Ensure growth in OrfA despite currency effect currently estimated at -€130 / 140m 2015 FULL-YE
Slide 69: 4. Annexes
2015 FULL-YEAR RESULTS Paris – February 25, 2016 4. Annexes 2015 FULL-YEAR RESULTS speaker 69
Slide 70: Massive forex fluctuations
Massive forex fluctuations • Collapse in some currencies against € - Over 1 year (fluctuation in average rates in 2015 vs. 2014) RUB BRL JPY TRY COP CAD UAH ARS USD CNY -25% -16% +4% -4% -13% +3% -35% +5% +20% +17% - Over 2 years (fluctuation in average rates in 2015 vs. 2013) RUB BRL JPY TRY COP CA
Slide 71: Currency effect / quarter on sales and ORfA 2013-2015
Currency effect / quarter on sales and ORfA 2013 2015, in €m FOREX Q1 Q2 Q3 Q4 Full Year Sales Impact on sales 2015 +60 +67 +12 +10 +149 4,770 2014 -53 -54 -19 -6 -132 4,253 2013 -4 -6 -44 -62 -116 4,161 FOREX Q1 Q2 Q3 Q4 Full Year ORfA Impact on ORfA 2015 -15 -17 -16 -52 -100 428 2014 - 24 -21 -1
Slide 72: Change in sales and ORfA
Change in sales and ORfA 2014 – 2015 By half-year, in €m Sales Organic Sales Currency Scope 2014 growth 2015 H1 1,827 +159 +127 0 2,113 H2 2,426 +180 +22 +29 2,657 Full Year 4,253 +339 +149 +29 4,770 ORfA Productivity Growth Other ORfA 2015 ORfA Volumes Price mix Currency Scope 2014 Purchasing drive
Slide 73: Organic sales growth by geography
Organic sales growth by geography 2013 2014 2015 12.8% 11.4% 8.8% 9.7% 7.9% 5.6% 6.7% 6.5% 6.9% 5.1% 5.6% 4.0% 3.4% 3.9% 2.8% 0.7% 0.4% -3.3%France FRANCE OTHER EU NORTH AMERICA SOUTH AMERICA ASIA-PACIFIC CENTRAL EUROPE RUSSIA 8.0% 5.4% 4.6% WORLD 2015 FULL-YEAR RESULTS speaker 73 73
Slide 74: 2015 sales by geography: new reporting scope (2016)
2015 sales by geography New reporting scope (2016) Current Recap 2014 2015 LFL forex 2014/2013 LFL EMEA 2,204 2,344 + 6.4 % + 6.7 % + 2.4 % Western Europe 1,571 1,736 + 10.5 % + 7.7 % + 3.5 % Other European countries 633 608 - 4.0 % + 4.2 % + 0.0 % AMERICAS 917 973 + 6.1 % + 5.1 % + 5.4 % North Amer
Slide 75: Schedule of upcoming events
Schedule of upcoming events 25/02/2016 6.30 am 2015 FULL-YEAR RESULTS 28/04/2016 5.40 pm Q1 2016 sales and financial information 19/05/2016 2.30 pm 2016 General Shareholders Meeting 25/07/2016 6.30 am H1 2016 sales and results speaker 2015 FULL-YEAR RESULTS 75
Slide 76: Contacts
Contacts Investors / Analysts Media relations Groupe SEB Image Sept Financial Communication Estelle Guillot-Tantay and Investor Relations Caroline Simon Isabelle Posth and Emmanuel Fourret Claire Doligez iposth@groupeseb.com egt@image7.fr efourret@groupeseb.com cdoligez@image7.fr caroline.simon@imag