V-zug Holding Ltd · SIX:VZUG
V-zug — H1 2020 Earnings Presentation
43 slides from V-zug's earnings presentation, August 2020
Slide 1: V-ZUG Group Presentation Half-Year Closing 2020
V-ZUG Group Presentation Half-Year Closing 2020
Slide 2: Content
Content 1 V-ZUG Group – Overview 2 Markets / Brand positioning / Channels & Markets 3 V-ZUG: A pure play − Strategy − Products & Services − Innovations − Infrastructure − Operations − Service & Support 4 Sustainability 5 Financial Information HY1 2020 vzug.com Swiss perfection for your home 2
Slide 3: A Success Story for more than 100 years
1. V-ZUG Group – Overview A Success Story for more than 100 years Metall Zug was founded in 1887 as a galvanizing plant. V-ZUG, founded in 1913 as “Verzinkerei Zug” with 39 employees. Today, V-ZUG employs more than 2,000 people and is market leader in Switzerland. vzug.com Swiss perfection for your
Slide 4: HY1 2020 at a Glance
1. V-ZUG Group – Overview HY1 2020 at a Glance ▪ Stable sales in Switzerland compared to previous year supports our leading market position ▪ Market Leader in Switzerland Growing international sales with V-ZUG brand is promising and confirms we are addressing the right markets ▪ EBIT of CHF 12.9 mil
Slide 5: HY1 2020 at a Glance: Markets, COVID-19, Operations
1. V-ZUG Group – Overview HY1 2020 at a Glance Markets COVID-19 ▪ Regaining trust in Swiss market due to excellent ▪ Overall less impacted than originally expected delivery quality leads to an sales increase of 0.3% despite ▪ The virus had negative effects on performance of operations COVID-19 but a
Slide 6: Reporting Segment: Household Appliances HY1 2020
1. V-ZUG Group – Overview Reporting Segment: Household Appliances HY1 2020 Kitchen: CHF 166.3 million Laundry: CHF 52.0 million Service & Others: CHF 40.3 million ▪ Swiss market leader in innovative and high-quality household appliances for % of net sales HY1 2020 the private kitchen and laundry 0.7
Slide 7: Reporting Segment: Real Estate
1. V-ZUG Group – Overview Reporting Segment: Real Estate Two legal entities ▪ V-ZUG Infra AG, Zug: 35,000 sqm operating land and buildings in Zug: Technology Cluster Zug northern area including ZUGgate, Mistral, Zephyr Hangar, Zephyr Central East (as of 2023), Zephyr Central West Compact (as of ~202
Slide 8: Reasons for disclosing a reporting segment Real Estate
1. V-ZUG Group – Overview Reporting Segment: Real Estate Reasons for disclosing a reporting segment “Real Estate” ▪ Increase transparency − by separated performance of “Household appliances” and “Real Estate” − of costs and investments of real estate business − leads to higher awareness for value an
Slide 9: Shareholder structure per 25 June 2020
1. V-ZUG Group – Overview V-ZUG Holding AG: Shareholder structure per 25 June 2020 (no substantial adjustments) Metall Zug AG 30.27% Free float 38.78% 8.90% 8.15% Heinz M. Buhofer 6.02% 7.88% Elisabeth Buhofer-Rubli Shareholder group Stöckli Wemaco Invest AG (Werner O. Weber) vzug.com Swiss perfecti
Slide 10: Content
Content 1 V-ZUG Group – Overview 2 Markets / Brand positioning / Channels & Markets 3 V-ZUG: A pure play − Strategy − Products & Services − Innovations − Infrastructure − Operations − Service & Support 4 Sustainability 5 Financial Information HY1 2020 vzug.com Swiss perfection for your home 10
Slide 11: Market and Potential: Switzerland
2. Markets Market and Potential: Switzerland (incl. Positioning in International Markets) Estimated market (2019) Intl. Markets Market Presence Switzerland VERY HIGH / HIGH Max. Trend (premium segment, high to very high price, luxury Premium 12’500 steady functionality expectations, high requirement
Slide 12: Switzerland: BAK Building forecast until 2025
2. Markets Switzerland: BAK Building forecast: until the year 2025 Forecast: No. of new build flats per year in a long-term comparison and forecast 60’000 The main drivers of 50’000 demand are: Total ▪ New built flats 40’000 MFH ▪ Refurbishments ▪ Replacements 30’000 Prognose → Approx. 1/3 each 20’0
Slide 13: Switzerland: Highlights
2. Markets Switzerland: Highlights ▪ Solid market forecast despite slight decline in new build flats as refurbishment and replacements will Market maintain momentum ▪ Competitive product range (laundry / kitchen) serving full range (built-in appliance-) market with clear Product Range market-leaders
Slide 14: International: Focus on selected markets and metropolitan areas
2. Markets International: Focus on selected markets and metropolitan areas The international strategy is based on a focused metropolitan approach concentrating on selected markets / cities with the highest potential for a premium home appliance brand. In selected markets V-ZUG is represented with a
Slide 15: International – Business development
2. Markets International – Business development ▪ V-ZUG’s international business shows a healthy annual sales growth of around 20% in average ▪ Highest share of growth coming from V-ZUG own branded business, across all V-ZUG key regions ▪ Recurring turnover with a well-established OEM customer is su
Slide 16: International – three strong sales channels
2. Markets International – Business development: three strong sales channels V-ZUG internationally has a targeted approach focusing on retail business mostly through international premium kitchen brands, project business and OEM business. Retail Business Project Business OEM Business ▪ Sales through
Slide 17: International branding: Premium Positioning
2. Markets International branding: Premium Positioning New ZUGORAMA’s in Munich and Beijing opened during HY1 2020 vzug.com Swiss perfection for your home 17
Slide 18: International – Project Business: Macao – One Oasis
2. Markets International – Project Business: Macao – One Oasis ▪ Over 2,000 apartments in this mega project in Macao were fitted out with V-ZUG appliances over the period of 3 years with the last delivery taking place in 2020 ▪ With over 8,000 products delivered this makes it the largest project eve
Slide 19: Service & Support – a USP worldwide
2. Markets Service & Support – a USP worldwide − At arm’s length on the ground in Switzerland 22 service locations − Over 300 own technicians in Switzerland experience and dedication − 250 trained technicians outside Switzerland know-how and dedication − 1 Intervention per service job >90% successfu
Slide 20: Content
Content 1 V-ZUG Group – Overview 2 Markets / Brand positioning / Channels & Markets 3 V-ZUG: A pure play − Strategy − Products & Services − Innovations − Infrastructure − Operations − Service & Support 4 Sustainability 5 Financial Information HY1 2020 vzug.com Swiss perfection for your home 20
Slide 21: Strategy: Cornerstones
3. V-ZUG: A pure play Strategy: Cornerstones ▪ V-ZUG is a premium brand and a Swiss manufacturer of home appliances, offering inspiring and Mission innovative solutions. V-ZUG’s core values are reliability, perfection and sustainability. Main ▪ Strengthen and extend market leadership in our home mar
Slide 22: Comprehensive offering for the private kitchen
3. V-ZUG: A pure play Comprehensive and high quality offering for the private kitchen vzug.com Swiss perfection for your home 22
Slide 23: Comprehensive offering for private laundry
3. V-ZUG: A pure play Comprehensive and high quality offering for private Laundry vzug.com Swiss perfection for your home 23
Slide 24: Innovations: R&D - Small enough to be successful
3. V-ZUG: A pure play Innovations: R&D - Small enough to be successful People make the R&D difference % of net sales 11.2% 11.4% “It is not the 235 employees 10.8% strongest of the in R&D, design, digital species that products & services and survives, but V-ZUG lab (more than 10% of total rather, th
Slide 25: Innovations: R&D
3. V-ZUG: A pure play Innovations: R&D Effective and efficient use of key competences and skills Steam Heat pump ▪ Combi-steamer: Steam cooking and steam ▪ Dryers in combination with conventional heating ▪ Washing machines: World first and world ▪ Washing machine: The steam anti-crease unique, most
Slide 26: Innovations: V-ZUG regularly presented world firsts
3. V-ZUG: A pure play Innovations: V-ZUG regularly presented world firsts 2001 2004 2005 2007 2008 2008 2009 2012 Fondue/raclette Steam anti-crease V-ZUG-Home GourmetSteam V-ZUG WetClean Vibration Absorbing BakeOmatic SteamFinish programme programme programme System (VAS) 2013 2013 2014 2015 2017 20
Slide 27: Connectivity: connected fleet of appliances
3. V-ZUG: A pure play Connectivity: V-ZUG invests into a connected fleet of appliances – preparing the ground 150’000 connectable Appliances delivered per year We work on benefits for customers WLAN/blueooth-Connectivity Additional content for Users: e.g. recipes vzug.com Swiss perfection for your h
Slide 28: Infrastructure: Vertical factory
3. V-ZUG: A pure play Infrastructure: Vertical factory on 40% of the current footprint, production capacity allows 100% growth of output Presses & Surface R&D / Administration Technology «Zephyr Zentral West «Zephyr Hangar» Kompakt» (2026) (2020) Core of the vertical Distribution Centre factory «Zep
Slide 29: Infrastructure: new refrigeration production plant in Sulgen
3. V-ZUG: A pure play Infrastructure: V-ZUG is realizing a new refrigeration production plant in Sulgen High-end and high-quality refrigerators are key as a strategic pillar and for international growth → Start of production in 2022 vzug.com Swiss perfection for your home 29
Slide 30: Content
Content 1 V-ZUG Group – Overview 2 Markets / Brand positioning / Channels & Markets 3 V-ZUG: A pure play − Strategy − Products & Services − Innovations − Infrastructure − Operations − Service & Support 4 Sustainability 5 Financial Information HY1 2020 vzug.com Swiss perfection for your home 30
Slide 31: Sustainability as a part of the corporate strategy
4. Sustainability Sustainability as a part of the corporate strategy - core elements: Focus topics Other areas of activities vzug.com Swiss perfection for your home 31
Slide 32: Energy efficient products for many years
4. Sustainability Energy efficient products for many years Adora dishwashers set themselves apart from the rest with their eco-friendly programs and record-low energy and water consumption. vzug.com Swiss perfection for your home 32
Slide 33: True commitment – two current examples
4. Sustainability True commitment – two current examples out of many – it is not only products! CO2 approach: Avoid – Reduce - Compensate Sustainable mobility concept for employees ▪ CO2 neutral production in Zug ▪ Motivate: Monthly mobility bonus since 2020 for every employee ( to support use of pu
Slide 34: Content
Content 1 V-ZUG Group – Overview 2 Markets / Brand positioning / Channel & Markets 3 V-ZUG: A pure play − Strategy − Products and Services − Innovations − Infrastructure − Operations − Service & Support 4 Sustainability 5 Financial Information HY1 2020 vzug.com Swiss perfection for your home 34
Slide 35: HY1 2020 Result V-ZUG Group
5. Financial Information HY1 2020 Result V-ZUG Group CHF million HY1 2020 ∆ HY1 2019 1) Net sales to third parties 258.6 0.4% 257.7 Operating income (EBIT) 12.9 251.2% 3.7 EBIT margin in % 5.0 360bp 1.4 EBITDA 27.6 66.1% 16.6 EBITDA margin in % 10.7 430bp 6.4 Cash flow from operating activities 25.4
Slide 36: HY1 2020 Result Segment Household Appliances
5. Financial Information HY1 2020 Result Segment Household Appliances CHF million HY1 2020 ∆ HY1 2019 Net sales to third parties 258.6 0.4% 257.7 Operating income (EBIT) 11.5 127.3% 5.1 EBIT margin in % 4.4 240bp 92% 2.0 (96%) ROCE in %1) 11.4 580bp 5.6 Net sales by region 3% 3% in % 3% Switzerland
Slide 37: HY1 2020 Result Segment Real Estate
5. Financial Information HY1 2020 Result Segment Real Estate CHF million HY1 2020 ∆ HY1 20191) Net sales to third parties - - - Operating income (EBIT) 1.9 n/a -1.4 EBIT margin in % - - - ROCE in %2) 2.7 530bp -2.6 ▪ EBIT 1st HY 2019 includes a provision of CHF 3.7 million for soil remediation in Zu
Slide 38: Balance Sheet
5. Financial Information Balance Sheet CHF million 30.06.2020 in % 31.12.2019 in % 30.06.2019 in % ▪ Restructuring of capital in Cash and cash equivalents / securities 65.3 12.7 36.3 7.7 32.0 7.4 HY1 2020, financial Other current assets 151.5 29.5 152.4 32.3 154.0 35.5 liabilities of 79 MCHF convert
Slide 39: Income Statement
5. Financial Information Income Statement CHF million HY1 2020 in % HY1 2019 in % Net sales 258.6 100.0 257.7 100.0 Other operating income 5.2 2.0 4.6 1.8 Cost of materials (incl. ∆ inventories) -88.6 -34.2 -85.0 -33.0 Personnel expenses -100.2 -38.8 -105.0 -40.8 Depreciation/amortization/impairment
Slide 40: Cash Flow Statement
5. Financial Information Cash Flow Statement CHF million HY1 2020 HY1 2019 Cash flow from operating activities 25.4 -5.5 ▪ of which taxes paid -0.6 -5.5 Cash flow from investing activities -26.0 -29.1 ▪ of which investments in tangible assets -22.8 -27.2 ▪ of which investments in intangible assets -
Slide 41: Net Working Capital
5. Financial Information Net Working Capital CHF million 30.06.2020 31.12.2019 30.06.2019 Trade receivables third gross 59.5 56.8 54.2 Value adjustment -2.4 -2.1 -2.5 Trade receivables third net 57.1 54.7 51.7 Total inventories gross 93.0 94.1 101.5 Total value adjustments inventories -20.3 -17.3 -1
Slide 42: Dividend Policy
5. Financial Information Dividend Policy ▪ V-ZUG Holding AG strives for a dividend policy that is geared primarily by the level of the recoverable profit ▪ In the medium and long term the pay-out ratio is expected to be between 20% and 40% of the net income ▪ In the first three years after the spin-
Slide 43: Why invest in V-ZUG
V-ZUG: Why invest in V-ZUG ▪ Proved to be able to generate double digit EBIT-margins, significantly above industry average ▪ Market leader in Switzerland with a unique and strong position: − Nationwide strong and long-lasting network with key partners − Unbeatable service network and proximity to cu