V-zug Holding Ltd · SIX:VZUG
V-zug — Investor Presentation (June 2020)
72 slides from V-zug's investor presentation, June 2020
Slide 1: V-ZUG Group Analyst Presentation June 2020
V-ZUG Group Analyst Presentation June 2020
Slide 2: Content
Content 1 Information for Investors 2 V-ZUG Group – Overview 3 Markets / Brand positioning / Channel & Markets 4 V-ZUG: A pure play − Strategy − Products and Services − Innovations − Infrastructure − Operations − Service & Support 5 Sustainability 6 Financial Information vzug.com Swiss perfection fo
Slide 3: Spin-off and listing: Transaction Rationale (1/2)
1. Information for Investors Spin-off and listing of V-ZUG Transaction Rational (1/2) Sharpened corporate governance combined with increased responsibility of Board of Directors and management of V-ZUG and clear structures will unlock additional potential to: ▪ boost top line growth ▪ accelerate int
Slide 4: Spin-off and listing: Transaction Rationale (2/2)
1. Information for Investors Spin-off and listing of V-ZUG Transaction Rational (2/2) Spin-off will increase strategic and operational flexibility of V-ZUG ▪ Higher flexibility for various types of strategic steps ▪ Management focuses on V-ZUG business only (excl. Gehrig) V-ZUG will be led by an ind
Slide 5: Transaction
1. Information for Investors Transaction ▪ Set up of V-ZUG-Holding AG (as of November 28, 2019) − 100% owned by Metall Zug AG Shareholders − Share capital: CHF 1,215,000 − 4.5 million shares with a nominal value of CHF 0.27 per share ▪ Contribution in kind of V-ZUG AG, V-ZUG Services AG, V-ZUG Infra
Slide 6: Expected Shareholder structure after Spin-off
1. Information for Investors V-ZUG Holding AG: Expected Shareholder structure after Spin-off 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 Werner O. Weber through Wemaco Invest AG vzug.com Swiss perfection for your h
Slide 7: Content
Content 1 Information for Investors 2 V-ZUG Group – Overview 3 Markets / Brand positioning / Channel & Markets 4 V-ZUG: A pure play − Strategy − Products and Services − Innovations − Infrastructure − Operations − Service & Support 5 Sustainability 6 Financial Information vzug.com Swiss perfection fo
Slide 8: A Success Story for more than 100 years
2. 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 9: At a Glance
2. V-ZUG Group – Overview At a Glance Focus on top premium segment in Market Leader in Switzerland selected international markets Stable sales in Switzerland based on leading market Growing international sales is highly promising and position ensures solid foundation for the workload of the addressa
Slide 10: Reporting Segment: Household Appliances
2. V-ZUG Group – Overview Reporting Segment: Household Appliances Kitchen: CHF 357.5 million Laundry: CHF 104.6 million Service & Others: CHF 81.5 million ▪ Swiss market leader in innovative and high-quality household appliances for % of net sales the private kitchen and laundry 1.1 ▪ Leading in des
Slide 11: Reporting Segment: Real Estate
2. 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 12: Segment Reporting: Real Estate
2. V-ZUG Group – Overview Segment Reporting: 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 ▪ Optimize checks & balances by separati
Slide 13: Legal / Segment Organization
2. V-ZUG Group – Overview Legal / Segment Organization Shareholders V-ZUG Holding AG Segment Household Appliances Segment Real Estate V-ZUG AG V-ZUG Infra AG V-ZUG Services AG MZ Infra AG V-ZUG Kühltechnik AG V-ZUG Europe BVBA V-ZUG Australia Pty. Ltd. V-ZUG (Shanghai) Domestic Appliances Co., Ltd.
Slide 14: Board of Directors
2. V-ZUG Group – Overview Board of Directors Oliver Riemenschneider, Chairman *1962, Swiss resident Master of Mechanical Engineering, ETH Zurich; MBA City University Bellevue, Washington, USA; Advanced Management Program INSAED Group Senior Vice President, Managing Director Business Unit Turbocharch
Slide 15: Board of Directors
2. V-ZUG Group – Overview Board of Directors Prisca Hafner *1967, Swiss resident Banking professional, CAS in Executive Coaching, IAP Institute for Applied Psychology, Zurich Chief Human Resources Officer, COMET Group, Flamatt, 2018 – 4.2020; Global Head Human Resources, Oerlikon Balzers, 2008 – 201
Slide 16: New CEO as of Q3, 2020
2. V-ZUG Group – Overview New CEO as of Q3, 2020 Peter Spirig *1973, Swiss resident Master in Civil Engineering, ETH Zurich; MBA City University Bellevue, Washington, USA; Advanced Management Program INSAED Arbonia AG (May 2016 to present) Member of the Executive Committee / Head of Doors Division R
Slide 17: Management-Team
2. V-ZUG Group – Overview Management-Team Executive Board V-ZUG AG CEO a.i. Heinz M. Buhofer Development Division Operation Division Business Development Swiss Market Division International Division Finance Division Director Development Director Operations Division Director Marketing & Service Direc
Slide 18: Content
Content 1 Information for Investors 2 V-ZUG Group – Overview 3 Markets / Brand positioning / Channel & Markets 4 V-ZUG: A pure play − Strategy − Products and Services − Innovations − Infrastructure − Operations − Service & Support 5 Sustainability 6 Financial Information vzug.com Swiss perfection fo
Slide 19: Market and Potential: Switzerland
3. Markets Market and Potential: Switzerland (incl. Positioning in International Markets) Estimated market 2019 Intl. Markets Market Presence Switzerland VERY HIGH / HIGH Max. Luxury / Trend (luxury/premium segment, [very] high to very high price, 12’500 Premium steady luxury functionality expectati
Slide 20: Switzerland (revenue streams)
3. Markets Switzerland (revenue streams) Kitchen Laundry Luxury 2/3 of sales 1/3 of sales Premium Premium seg- Premium seg- Medium to Luxury segment ment for single ment for multy 50% family houses family houses 60% 25% Advanced Entry to medium segment Entry segment 50% 15% Value vzug.com Swiss perf
Slide 21: Switzerland: BAK Building forecast until 2025
3. Markets Switzerland: BAK Building forecast: until the year 2025 Forecast: No. of new build flats per year in a longterm comparison and forecast 60’000 New build flats are 50’000 expected to decline Total slightly but are still on 40’000 MFH a high level. 30’000 Prognose The main drivers of demand
Slide 22: Switzerland: Highlights
3. Markets Switzerland: Highlights Market ▪ Strong market forecast overall in real estate ▪ Competitive product range (laundry / kitchen) serving full range (built-in appliance-) market with clear Product Range market-leadership in Switzerland ▪ Heterogeneous market with many competitors acting in t
Slide 23: International: Business development
3. Markets International: Business development ▪ V-ZUG’s international business shows a healthy annual sales growth of around 20% ▪ Highest share of growth coming from V-ZUG own branded business, across all V-ZUG key regions ▪ A solid turnover with OEM business is supporting the international busine
Slide 24: International: Focus on selected markets and metropolitan areas
3. 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 25: International: three strong sales channels
3. 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 26: International branding: Premium Product Range only
3. Markets International branding: Value Proposition – Focus on Premium Product Range only Focus on the ‘Excellence’ line of products – in line with targeted positioning, origin and price segment vzug.com Swiss perfection for your home 26
Slide 27: International branding: Premium / Luxury Positioning
3. Markets International branding: Premium / Luxury Positioning The stage of V-ZUG brand at ‘Fuorisalone Milano’ in 2018 vzug.com Swiss perfection for your home 27
Slide 28: International branding: V-Dining
3. Markets International branding: V-Dining Thinking out of the box: Flagship restaurant in Singapore vzug.com Swiss perfection for your home 28
Slide 29: International branding: Digital Customer Interaction
3. Markets International branding: Digital Customer Interaction V-Zug’s ‘digital concierge’, a WeChat based app that allows for digital interaction with V-ZUG’s customers in China. vzug.com Swiss perfection for your home 29
Slide 30: Project Business: China – Beijing – Armani Central Park
3. Markets International – Project Business: China – Beijing – Armani Central Park ▪ 56 units in two buildings all completely fitted out with V-ZUG appliances ▪ For the first time, Armani Casa, the design arm of the Italian fashion brand, is using V- ZUG appliances in one of their real estate develo
Slide 31: Project Business: China – Shenzhen – Ruifu
3. Markets International – Project Business: China – Shenzhen – Ruifu ▪ China Resources, a Shenzhen based conglomerate with more than USD 90bn turnover, has chosen V-ZUG for their most recent development ▪ Also known as Andaz Hotel, the 135 units in a tower of the Houhai Financial HQ has been comple
Slide 32: Global brand ambassadors
3. Markets Global brand ambassadors 19 19 17 16 Gault Millau Gault Millau Gault Millau Gault Millau points points points points Andreas Caminada Franck Giovannini Ryan Clift Marcel Skibba Fabian Fuchs 19 17 16 18 Gault Millau Gault Millau Gault Millau Gault Millau points points points points Tanja G
Slide 33: Zugorama in Zug and Gourmet Academy
3. Markets Zugorama in Zug and Gourmet Academy vzug.com Swiss perfection for your home 33
Slide 34: Content
Content 1 Information for Investors 2 V-ZUG Group – Overview 3 Markets / Brand positioning / Channel & Markets 4 V-ZUG: A pure play − Strategy − Products and Services − Innovations − Infrastructure − Operations − Service & Support 5 Sustainability 6 Financial Information vzug.com Swiss perfection fo
Slide 35: Strategy: Cornerstones
4. 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 its domestic
Slide 36: Strategy: Initiatives
4. V-ZUG: A pure play Strategy: Initiatives To secure a sustainable success, V-ZUG has defined 5 strategic initiatives Strategic Initiative Objectives Service & Support by Digital ▪ Increase process efficiency by 10% and >90% service coverage for own Solutions appliances by 2024 (direct and indirect
Slide 37: Strategy: Governance Areas
4. V-ZUG: A pure play Strategy: Governance Areas To secure a sustainable success, V-ZUG has defined 5 strategic governance areas Governance Areas Product Portfolio Management IT Management Production Digital Beyond People, Organization, Culture vzug.com Swiss perfection for your home 37
Slide 38: Products and Services: Steamers, Combi-Steamers and Ovens
4. V-ZUG: A pure play Products and Services: Steamers, Combi-Steamers and Ovens vzug.com Swiss perfection for your home 38
Slide 39: Products and Services: Hobs and Range Hoods
4. V-ZUG: A pure play Products and Services: Hobs and Range Hoods vzug.com Swiss perfection for your home 39
Slide 40: Products and Services: Refrigerators & Coolers
4. V-ZUG: A pure play Products and Services: Refrigerators & Coolers vzug.com Swiss perfection for your home 40
Slide 41: Products & Services: Dishwashers
4. V-ZUG: A pure play Products & Services: Dishwashers vzug.com Swiss perfection for your home 41
Slide 42: Products & Services: Laundry
4. V-ZUG: A pure play Products & Services: Laundry vzug.com Swiss perfection for your home 42
Slide 43: Refresh butler as a door opener in international luxury business
4. V-ZUG: A pure play Products and Services: Refresh butler as a door opener in international luxury business Your best clothes deserve to be treated gently vzug.com Swiss perfection for your home 43
Slide 44: Products & Services: Awards for products and brand recognition
4. V-ZUG: A pure play Products & Services: Awards for products and brand recognition Winner of the Red Dot Award: Plus X Award 2018 for the highly Plus X Award 2018 for the induction Plus X Award 2019: for the Product Design 2018 for the noble flexible induction hub Fullflex. hub Fusion with integra
Slide 45: Innovations: R&D
4. V-ZUG: A pure play Innovations: R&D Less than More than 5 years with 10 years with V-ZUG V-ZUG People make the difference “It is not the 59 strongest of the species that 119 235 employees survives, but in R&D, design, digital 57 products & services and rather, that which V-ZUG lab is most adaptab
Slide 46: Innovations: R&D key competences and skills
4. 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 47: Innovations: V-ZUG regularly presented world firsts
4. 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 48: Innovations: V-ZUG Lab
4. V-ZUG: A pure play Innovations: V-ZUG Lab to be prepared to shape the future of household appliances Purpose ▪ Protected innovation area allowing ideas and concepts with further distance to V-ZUG core business Goal ▪ Anticipate topics that may affect V-ZUG business to a relevant degree within 3 t
Slide 49: V-ZUG Lab: AI supports preventive maintenance
4. V-ZUG: A pure play Innovations: V-ZUG Lab: Artificial intelligence supports preventive maintenance vzug.com Swiss perfection for your home 49
Slide 50: Infrastructure: Vertical factory on 40% of current footprint
4. V-ZUG: A pure play Infrastructure: Vertical factory on 40% of the current footprint, capable to produce up to 100% more output Presses & Surface R&D / Administration Technology «Zephyr Zentral West «Zephyr Hangar» Kompakt» (2026) (2020) Core of the vertical Distribution Centre factory «Zephyr «ZU
Slide 51: Infrastructure: New refrigeration production plant in Sulgen
4. 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 51
Slide 52: Infrastructure: Transformation principles
4. V-ZUG: A pure play Infrastructure: Transformation follows the principles of customer centricity, efficiency and digitalization Vertical factory and transformation of production site in Zug will further improve efficency − Optimized material- and information flow − Reduction of throughput time up
Slide 53: Operations: Strong heritage and state of the art production
4. V-ZUG: A pure play Operations: A strong heritage and state of the art production is ensuring „Swiss made“ With 700 employees in operations (600 in Zug and 100 in Sulgen) V-ZUG ensures a short „time to market“ with a high flexibility in production. vzug.com Swiss perfection for your home 53
Slide 54: Service & Support – a USP worldwide
4. V-ZUG: A pure play Service & Support – a USP worldwide 1 Intervention per service job Direct Immediate >90% successful appointment reaction at first visit booking 2 days max. 1 call / 1 mail is urgencies sufficient same day Always 250 trained nearby in technicians Switzerland outside 22 service S
Slide 55: Content
Content 1 Information for Investors 2 V-ZUG Group – Overview 3 Markets / Brand positioning / Channel & Markets 4 V-ZUG: A pure play − Strategy − Products and Services − Innovations − Infrastructure − Operations − Service & Support 5 Sustainability 6 Financial Information vzug.com Swiss perfection fo
Slide 56: Sustainability as a part of the Corporate strategy
5. Sustainability Sustainability as a part of the Corporate strategy Values Any success can only really be counted as such if it is sustainable and has been achieved with due respect for society Example: Spare parts availability ▪ V-ZUG: up to 15 years (since many years) ▪ EU regulations as of 2021:
Slide 57: Systematic approach and methodology
5. Sustainability Systematic approach and methodology Products and services 5 Safe and resource-efficient products Employees very high Relevance from stakeholder perspective 1 5 7 Employee motivation and development 13 8 Occupational health and safety People 3 11 14 Energy and climate 12 6 8 7 1 Ene
Slide 58: Circular economy
5. Sustainability Circular economy Use Repair Waste Recycle Design Design Re-Use Water and Energy Consumption Consumption in litre and kWh 2.00 Water consumtion in liter 50 2.00 1.50 1.40 1.75 OptiTime Refurbish 40 1.20 1.05 1.50 Take 30 38 0.90 0.80 0.55 1.25 1.00 Upcycle 20 28 23 0.49 0.75 10 0.50
Slide 59: Adora, the most economical dish washer
5. Sustainability Example: Adora, the most economical dish washer Water and Energy Consumption A -40% Consumption in litre and kWh 2.00 50 2.00 45 1.75 40 1.50 35 38 1.50 1.40 1.25 30 28 1.20 25 1.00 1.05 20 23 0.90 0.75 0.80 15 0.50 10 13 12 0.55 0.49 5 9 0.25 7 5 5 0 0.00 Incredibly low energy con
Slide 60: CO2 neutral production in Zug in 2021
5. Sustainability: CO 2 neutral production in Zug in 2021 Energy & Climate: Contribution to the future ▪ Target agreement in EnAW program ▪ Low-CO2 and largely autonomous “Multi Energy Hub” to supply V-ZUG with as much locally renewable energy as possible from solar energy, groundwater and lake wate
Slide 61: Content
Content 1 Information for Investors 2 V-ZUG Group – Overview 3 Markets / Brand positioning / Channel & Markets 4 V-ZUG: A pure play − Strategy − Products and Services − Innovations − Infrastructure − Operations − Service & Support 5 Sustainability 6 Financial Information vzug.com Swiss perfection fo
Slide 62: 2019 Result V-ZUG Group
6. Financial Information 2019 Result V-ZUG Group CHF million 2019 ∆ 2018 ∆ 2017 Net sales to third parties 543.6 0.9% 539.0 0.9% 534.0 Operating income (EBIT) 29.61 -38.7% 48.2 -22.8% 62.4 EBIT margin in % 5.41 -360bp 9.0 -270bp 11.7 EBITDA 56.9 -19.2% 70.4 -20.5% 88.5 EBITDA margin in % 10.5 -260bp
Slide 63: 2019 Result Segment Household Appliances
6. Financial Information 2019 Result Segment Household Appliances CHF million 2019 ∆ 2018 ∆ 2017 Net sales to third parties 543.6 0.9% 539.0 0.9% 534.0 Operating income (EBIT) 28.3 -36.5% 44.5 -27.2% 61.1 EBIT margin in % 5.2 -310bp 8.3 92% -310bp 11.4 (96%) Net sales by region in % 4.6 3.6 3.1 ▪ Fo
Slide 64: 2019 Result Segment Real Estate
6. Financial Information 2019 Result Segment Real Estate CHF million 2019 ∆ 2018 ∆ 2017 Net sales to third parties - - - - - Operating income (EBIT) 1.3 -64.9% 3.7 +208.3% 1.2 EBIT margin in % - - - - - ▪ EBIT 2019 includes a provision of CHF 3.1 million for soil remediation in Zug ▪ Vertical factor
Slide 65: Income Statement
6. Financial Information Income Statement CHF million 2019 in % 2018 in % 2017 in % Gross sales 551.7 100.0 553.5 100.0 548.3 100.0 Net sales 543.6 98.5 539.0 97.4 534.0 97.4 Other operating income 9.8 1.8 8.8 1.6 10.9 2.0 Cost of materials (incl. ∆ inventories) -186.8 34.0 -180.3 32.6 -170.8 31.2 P
Slide 66: Balance Sheet
6. Financial Information Balance Sheet CHF million (December 31) 2019 in % 2018 in % 2017 in % ▪ Financial liabilities and Cash and cash equivalents / securities 36.3 7.7 40.6 9.9 66.6 17.5 Shareholders‘ equity shown before capital Other current assets 152.4 32.3 138.2 33.7 126.3 33.2 increase of CH
Slide 67: Cash Flow Statement
6. Financial Information Cash Flow Statement CHF million 2019 2018 2017 Cash flow from operating activities 37.7 64.3 58.2 ▪ of which taxes paid -5.8 -7.9 -8.7 Cash flow from investing activities -69.0 -66.4 -47.7 ▪ of which investments in tangible assets -65.7 -55.9 -39.6 ▪ of which investments in
Slide 68: Tax Rate and impact of tax reform and AHV Financing (TRAF)
6. Financial Information Tax Rate and impact of tax reform and AHV Financing (TRAF) CHF million 2019 2018 2017 Total Tax expenditure -1.6 -6.7 -8.6 Total Tax liabilities 14.8 18.9 20.0 Income before taxes 28.9 47.6 61.8 Weighted average applicable tax rate 16.6% 15.4% 14.5% Weighted average calculat
Slide 69: Net Working Capital
6. Financial Information Net Working Capital CHF million 31.12.2019 31.12.2018 31.12.2017 2019 High1) 2019 Low1) Trade receivables third gross 56.8 46.9 43.2 61.6 37.1 Value adjustment -2.1 -1.8 -1.2 -2.5 -2.0 Trade receivables third net 54.7 45.1 42.0 59.1 35.1 Total inventories gross 94.1 92.5 82.
Slide 70: Dividend Policy
6. 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 71: 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
Slide 72: Disclaimer
Disclaimer V-ZUG AG has made great efforts to include accurate and up-to-date information in this document. However, we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and disclaim any liability whatsoever f