Slide 1: 2016 Annual Results
2016 ANNUAL RESULTS Paris – February 21, 2017 Listen to the webcast of the meeting on www.groupeseb.com AIRBAKE I ALL-CLAD I ARNO I ASIAVINA I CALOR I CLOCK I EMSA I HEPP I IMUSA I KAISER I KRUPS I LAGOSTINA I MAHARAJA WHITELINE I MIRRO MOULINEX I OBH NORDICA I PANEX I ROCHEDO I ROWENTA I SAMURAI I
Slide 2: Note
2016 ANNUAL RESULTS Paris – February 21, 2017 Note This press release may contain certain forward-looking statements regarding Groupe SEB’s activity, results and financial situation. These forecasts are based on assumptions which seem reasonable at this stage but which depend on external factors inc
Slide 3: 2016 Annual Results Agenda
2016 ANNUAL RESULTS Paris – February 21, 2017 1. A great year for the Group 2. Record results 3. A new dimension 4. Appendix 2016 annual results intervenant 3
Slide 4: 1. A great year for the Group
2016 ANNUAL RESULTS Paris – February 21, 2017 1. A great year for the Group 2016 annual results intervenant 4
Slide 5: Record results
* Like-for-like: at constant exchange rates and scope of consolidation Record results Sales Operating Result from Activity €5,000m €505m + 4.8% + 6.1% LFL +18.0% +47.0% LFL Operating margin 10.1% Net Profit Operating cashflow generation €259m €452m +26.0% Dividend €1.72 + 11,7% proposed at the 2017
Slide 6: Highlights
• Highlights Supor EMSA WMF Brazil Campus SEB 2016 annual results intervenant 6
Slide 7: New increase in ownership of Supor
New increase in ownership of Supor Purchase of 50 millions shares i.e. 7.9% of Supor capital from the Su family Price per share CNY 29 Transaction cost = CNY 1,450 million €196m Free float 50 19% CNY 35 40 +34% 30 CNY 26 20 Market capitalization 10 at 31/12/2016 = €3bn Groupe 0 SEB 81% 05/01/2016
Slide 8: EMSA acquisition: First-ranking positions
EMSA acquisition First-ranking positions Leadership in Germany • Vacuum jugs and carafes, thermo mugs 28% MS • Food storage containers ~ 40% MS excluding party-sales Very strong brand awareness 81% Presence in 95% of points of sale selling kitchen tools Innovation, design and industria
Slide 9: EMSA in 2016
EMSA in 2016 2016 sales: €85m Tools Other 10% Food storage 24% DACH 20% By category 50% Middle By region East 5% 4% France 67% Mugs / Carafes Garden 20% 2016 annual results intervenant 9
Slide 10: WMF acquisition
WMF acquisition 2016 sales: €1,100m: +4.2% 38% 55% 7% Professional Coffee Machines Consumer Hotel Equipment 2016 annual results intervenant 10
Slide 11: Professional Coffee
Professional Coffee World leadership in automatic Professional Coffee Machines: 28% MS Sales: €421m, +7% New developments • Tim Hortons’ (Canada) • Family Mart (Japan) • Costa Coffee • Dunkin’ Donuts • … Innovation: 2 flagship products in 2015-2016 • 5000s • Espresso High profitability 2016 an
Slide 12: Consumer business
« Consumer » business Leadership in Germany in Cookware: 20% MS Sales: €601m, + 3 % Temporary difficulties in Germany • Impact of supply-chain reorganization • LPs lower than in 2015 Strong increase in EMEA + Asia-Pacific Continued growth in SDA +10% Profitability impacted in 2016 2016 ann
Slide 13: Hotel equipment
Hotel equipment Sales: €78m, +5% 2 complementary brands: WMF + Hepp Leader in Germany / Switzerland / Austria Distribution in more than 100 countries Clients: hotels, restaurants & bars, cruise companies, company restaurants, hospitals, schools… 2016 annual results intervenant 13
Slide 14: WMF in 2016
WMF in 2016 2016 sales: €1,100m +4.2% 2016 Adjusted EBITDA: €128m +8.5% Other countries Hotel equipment Asia 6% 7% 38% DACH 14% North America 6% By By category geography Professional 61% Coffee Machines 13% Consumer 55% Other European countries 2016 annual results intervenant 14
Slide 15: Financing for WMF acquisition
Financing for WMF acquisition Long-term resources secured swiftly with immediate effect Implementation of varied and innovative instruments • Commercial paper • Syndicated loan • Convertible bond (ORNAE) • Schuldschein Scheduling of maturities Very attractive total financing cost 2016 annual
Slide 16: Restoring competitiveness in Brazil
Restoring competitiveness in Brazil Context: Largest market in South America Solid positions for the Group 2 historic sites (Mooca and São Bernardo) in the center of São Paulo High production costs and poor competitiveness Need for industrial and logistical reorganizationin in Brazil 2016 an
Slide 17: Reorganization stages
Reorganization stages 1st stage DEVELOPMENT OF A SITE IN NORTH-EAST BRAZIL (RECIFE) 2013 - 2015 Partial transfer of SDA production from Mooca to Recife 2nd stage SDA TRANSFER TO RIO DE JANEIRO STATE (ITATIAIA) 2016 - 2017 New site built in Itatiaia Production and logistical hub operational sin
Slide 18: New headquarters
New headquarters 2016 annual results intervenant 18
Slide 19: 2. 2016: record results
2016 ANNUAL RESULTS Paris – February 21, 2017 2. 2016: record results 2016 annual results intervenant 19
Slide 20: 2. Record results: Sales, Results
2016 ANNUAL RESULTS Paris – February 21, 2017 2. Record results 1. Sales 2. Results 2016 annual results intervenant 20
Slide 21: Change in revenue, 2015 to 2016
Change in revenue, 2015 2016 In €m -122 +292 +60 Organic Currency effect Scope effect growth (OBH Nordica and EMSA) +6.1% -2.5% +1.2% 5,000 4,770 + 4.8% 2015 2016 2016 annual results intervenant 21
Slide 22: Currency impact on sales in 2016
Currency impact on sales in 2016 In €m 10 0 -10 -20 -30 Q1: -€39m -40 -€122m Q2: -€53m Q3: -€18m -50 Q4: -€12m -60 -70 INR EGP JPY CAD BRL UAH RUB TRY ARS CNY GBP COP MXN USD PLN JPY USD INR CAD BRL PLN UAH EGP GBP RUB COP TRY MXN ARS CNY 2016 annual results intervenant 22
Slide 23: Organic sales growth by quarter
Organic sales growth by quarter Year 2014 2015 2016 In % +4.6% +8.0% +6.1% 12 2014 10 9.4 2015 7.9 7.8 2016 8 7.2 6.2 6 6.9 6.5 6.0 4 5.1 4.9 4.1 3.2 2 0 Q1 T1 Q2 T2 Q3 T3 Q4 T4 2016 annual results intervenant 23
Slide 24: Q4 sales by geography
Q4 sales by geography As Like-for- 2015/2014 Q4 2015 Q4 2016 LFL reported like EMEA 858 910 +6.0% +4.8% +7.5% Western Europe 669 687 +2.7% +0.7% +9.1% Other countries 189 223 +17.7% +19.5% +2.4% AMERICAS 291 301 +3.4% +0.1% +1.6% North America 192 189 -1.9% -1.5% +3.4% South America 99 112 +13.8% +3
Slide 25: Full-year sales by geography
Full-year sales by geography Reminder: 2015 2016 As reported Like-for-like 2015/2014 LFL EMEA 2,344 2,495 +6.4% +5.6% +6.7% Western Europe 1,736 1,834 +5.6% +3.1% +7.7% Other countries 608 661 +8.7% +12.7% +4.2% AMERICAS 973 919 -5.5% -1.8% +5.1% North America 599 564 -5.9% - 4.0% +6.7% South Americ
Slide 26: Breakdown of sales by geography
Breakdown of sales by geography Other Asian Mature countries 54% countries Western 9% Europe (9 %) Emerging countries 46% 37% (36%) 32% (30%) €5,000m China 23% 50% (21%) (49%) South America 7% Other EMEA (8%) countries 13% North America (13%) 11% 18% (13%) (2015 sales) (21%) 2016 annual results inte
Slide 27: Top 20 countries
Top 20 countries CHINA JAPAN South Korea Colombia Turkey SPAIN GERMANY Poland ITALY Saudi Arabia Portugal RUSSIA FRANCE 12 mature - 8 emerging Canada Belgium* BRAZIL USA Mexico* UNITED KINGDOM Netherlands *positive excluding LPs TOP 10 COUNTRIES 2016 annual results intervenant 27
Slide 28: Focus on countries
• Focus on countries 2016 annual results intervenant 28
Slide 29: France
France No. 2 Group country 2016 sales +5.4% A successful year in a difficult environment Excellent performance driven by our innovations: Cookeo, Cuisine Companion, Full-auto espresso coffeemakers, Vacuum cleaners Growth drivers significantly increased Market share gains 2016 annual results in
Slide 30: Germany
Germany No. 4 Group country 2016 sales +4.6% (+14.3% excl. LPs) Solid momentum continued Widespread growth : Full-auto espresso coffeemakers, OptiGrill, Actifry, Vacuum cleaners… Strong commercial dynamics in the field: > 70 shop-in-shops Market share gains 2016 annual results intervenant 30
Slide 31: Italy
Italy 2016 sales +5.4% No. 7 Group country Growth in all SDA product families Leadership in vacuum cleaners Market share gains 2016 annual results intervenant 31
Slide 32: Russia
Russia Russie No. 9 Group country 2016 sales +20% LFL Successful turnaround after 2 years of deep recession Sales up practically across the board: Cookware, Ironing, Vacuum cleaners, Full- auto espresso coffeemakers, OptiGrill In-store execution stepped up Market share gains 2016 annual result
Slide 33: USA
USA No. 3 Group country 2016 sales -3.7% LFL A subdued performance after 2 years of strong growth Excellent year for All-Clad Continued development of Rowenta and Imusa More difficult for mid-range cookware (T-fal) 2016 annual results intervenant 33
Slide 34: Brazil
2016 sales - 4% Brazil Market down Market share gains No. 5 Group country 2016 annual results intervenant 34
Slide 35: China
China No. 1 Group country 2016 sales +15% LFL Another outstanding performance Strong increase in cookware and SDA Growth in linen and home care New gains in points of sale > 55,000 at end-2016 "Double 11" day: €65 million in sales achieved online over the day 2016 annual results intervenant
Slide 36: Japan
Japan No. 6 Group country 2016 sales +8% Return to historic market share in kettles > 50% Strong performance for Group Retail 2016 annual results intervenant 36
Slide 37: Flagship products
• Flagship products intervenant 37
Slide 38: 2016 top performers by product line
2016 top performers by product line % sales growth, LFL Home % care 20 Electrical Beverage cooking Home prep. comfort 8 Food Linen Cookware prep. care +6.1% Personal care 0 2016 annual results intervenant 38
Slide 39: Breakfast and beverage
Breakfast and beverage Reinforced leadership in breakfast in Europe Strong growth in kettles • Production > 10m units in 2016 in Shaoxing Continued development of full automatic espresso coffeemakers • Sales up 50% in 2 years Groupe SEB, No. 1 partner of Nespresso and Dolce Gusto worldwide 2
Slide 40: Electrical cooking
Electrical cooking Continued solid growth in rice cookers Confirmed success for Cookeo, especially in France • Sales > 1m units since launch • Cookeo Connect = 15% of sales Continued development of OptiGrill • Sales > 1m units since launch Reinforced world leadership in traditional deep frye
Slide 41: Food preparation
Food preparation Continued development of cooking food processors • Cuisine Companion > 300 000 units in 3 years • iCompanion > 20% of Cuisine Companion sales Sales growth > 10% for Soup & Co Increase of +25% in blenders • China (high-speed blenders) • India • Latin America 2016 annual results
Slide 42: Linen care
Linen care Stable steam iron sales Slight downturn in steam generator sales • Successful launch of Pro-Express Care in high-end segment Sales growth > 60% for garment steamers • China, Japan, USA, Europe… Launch of Tweeny 2 in 1 in Europe 2016 annual results intervenant 42
Slide 43: Home care
Home care Ongoing solid momentum in cylinder vacuum cleaners • Sales up 17% in bag vacuum cleaners Silence Force 4A: sales x 5 • Sales up 40% in bagless vacuum cleaners Successful launch of Clean&Steam in 2016 Launch of Air Force 360 in 2017 Leadership in France, Italy, Spain and Portugal
Slide 44: Cookware
Cookware Worldwide leadership confirmed in 2016 Growth despite contraction in LPs vs 2015 Launch of Clipso Minut and Clipso Minut Duo pressure cookers Strong growth in kitchen tools and accessories 2016 annual results intervenant 44
Slide 45: 2. Activity and results
2016 FULL-YEAR RESULTS Paris – February 21, 2017 2. Activity and results 1. Sales 2. Results 2016 annual results intervenant 45
Slide 46: Operating Result from Activity (ORfA)
Operating Result from Activity (ORfA) In €m 2015 2016 In €m LFL Sales 4,770 5,000 +4.8% +6.1% Operating expenses 4,342 4,495 Operating Result 428 505 +18.0% +47.0% from Activity (ORfA) Operating margin 9.0% 10.1% +1.1 pt +3.5 pts 2016 annual results intervenant 46
Slide 47: ORfA bridge, 2015 to 2016
ORfA bridge, 2015 2016 +69 -62 In €m -15 +142 -122 +69 -4 +3 631 Volumes Price Purchasing Growth Commercial Currencies Scope Mix Productivity drivers and 12.5% effect administrative costs 505 428 10.1% 9.0% 2015 2016 2016 LFL 2016 Full-year results intervenant 47
Slide 48: Growth drivers: Innovation
Growth drivers: Innovation In €m 2015 2016 Strategic marketing 68 75 R&D 100 104 TOTAL 168 179 +6.8% LFL Gross amount , before research tax credit and capitalization 2016 Full-year results intervenant 48
Slide 49: Growth drivers: Advertising and marketing
Growth drivers: Advertising and marketing In €m 2015 2016 Advertising 121 131 Operational marketing 269 304 TOTAL 390 435 +13.2% LFL 2016 Full-year results intervenant 49
Slide 50: Operating profit
Operating profit In €m 2015 2016 Operating Result from 428 505 +18% Activity (ORfA) Discretionary and non- (31) (37) discretionary profit-sharing Other operating income and (26) (42) expense Operating profit 371 426 +15% 2016 Full-year results intervenant 50
Slide 51: Net profit
Net profit In €m 2015 2016 Operating profit 371 426 +15% Interest expense (28) (30) Other financial expense (20) (28) Tax (82) (77) Non-controlling interests (35) (32) Profit attributable to owners of the parent 206 259 +26% 2016 Full-year results intervenant 51
Slide 52: Significant improvement in WCR
Significant improvement in WCR in €m as a % of sales 1,013 35.00 35,00 1000 954 950 929 30,00 30.00 900 25.00 25,00 850 22.4% 21.0% 800 18.4% 20.00 20,00 750 700 15,00 15.00 650 600 10,00 10.00 2014 2015 2016 2016 Full-year results intervenant 52
Slide 53: Change in debt
Change in debt In €m Operating cashflow: €452m (€257m) 60 2015 -534 117 136 70 -46 1,919 2,019 316 -126 84 129 -4 92 -576 125 Tax and Net debt Cash Other Other, non Net debt financial Invest. WCR Dividends Currencies Acquisitions end-2015 flow operations operating end-2016 expense Board 2016 Meeting
Slide 54: Debt ratios in line with expectations
Debt ratios in line with expectations Excl. WMF Incl. WMF Net debt-to-equity Ratio at 12/31 1.1 0.7 0.6 0.5 0.4 0.2 0.3 0.3 0.2 0.1 0.2 Net debt/EBITDA 1.9 2.8 1.7 1.3 1.2 0.9 1.0 0.6 0.3 0.6 0.6* 07 08 09 10 11 12 13 14 15 16 *pro forma debt / adjusted EBITDA ratio 2016 Full-year results intervenan
Slide 55: Financing the WMF acquisition
Financing the WMF acquisition ANNOUNCEMENT OF ACQUISITION NOVEMBER 30 PROJECT CLOSING May November December BRIDGE LOAN CP* PROGRAM November 15 +€400m €1,000m ORNAE ISSUE December 12 Negative rates 1 yr €150m SCHULDSCHEIN ISSUE Maturity: 5 yrs €800m €1,700m 0.42% yield Maturities: 3, 5, 7 and 10
Slide 56: Solid financing architecture
Solid financing architecture In €m Average maturity 3,622 (excl. commercial paper) 50 4.8 yrs 960 2,461 Average financing rate (on debt used over 1 year) 782 1.88% 782 150 150 500 Bilateral - back up 500 Syndicated - back up 180 180 2016 Schuldschein ORNAE 1,000 849 Bond 2012 Schuldschein Commerc
Slide 57: Simplified balance sheet
Simplified balance sheet In €m 12/31/2015 12/31/2016 Tangible fixed assets 1,655 3,418* Working capital requirement 1,013 1,225 Total assets to be financed 2,668 4,643 Equity 1,908 1,836 Provisions 240 443 Other current assets and liabilities 204 345 Net financial debt 316 2,019 Total financing 2,66
Slide 58: 2016 pro forma income statement
2016 pro forma income statement In €m Pro forma* Pro forma Groupe SEB Groupe SEB + WMF WMF Sales 5,000 1,100 6,095 Adjusted EBITDA 591 128 719 ORfA 505 94 599 Operating margin 10.1% 8,5% 9.8% Operating profit 426 78 504 Net profit 259 45 305 * After elimination of inter-company transactions and befo
Slide 59: 3. A new dimension
2016 FULL-YEAR RESULTS Paris – February 21, 2017 3. A new dimension 2016 Full-year results intervenant 59
Slide 60: Breakdown of sales by geography
Breakdown of sales by geography 17% Americas 18% 28% Asia 32% EMEA 50% +22% 55% Groupe SEB Groupe SEB Groupe SEB Proforma €5,000m pro forma €6,100m 54% Mature countries 60% 46% Emerging countries 40% 2016 figures 2016 Full-year results intervenant 6060
Slide 61: A new business profile
A new business profile In €m Hotel Equipment Professional 80 Coffee Cookware SDA 420 3,380 Cookware 1,620 Groupe SEB Groupe SEB €5,000m +22% 2,150 pro forma 3,450 SDA €6,100m 2016 figures 2016 Full-year results intervenant 6161
Slide 62: EMSA and WMF integration process
EMSA and WMF integration process EMSA closing June 28 and WMF closing November 30, 2016 Integration committees • Mixed teams Groupe SEB / EMSA / WMF Top management team in place Integration plans: 2 types of “workshops” • Alignment with Groupe SEB organization and systems • Value creation 20
Slide 63: Development in professional coffee
Development in professional coffee Strengthening of leadership in Germany Acceleration in international expansion (US, China, France…), by capitalizing on both WMF and €0m €421m Schaerer brands Groupe SEB Groupe SEB Cross-fertilization Professional / Consumer pro forma businesses 2016 Full-yea
Slide 64: New dimension in Germany in Small Domestic Equipment
New dimension in Germany in Small Domestic Equipment The Group's no. 3 country > 30% market share in cookware The Group's Complementary fit between Groupe SEB / WMF / no. 4 country EMSA distribution networks €254m €661m Introduction of Groupe SEB SEB and EMSA products in WMF stores Groupe SEB
Slide 65: Accelerated growth in kitchen tools and accessories
Accelerated growth in kitchen tools and accessories International expansion stepped up • 10 key countries • Cross implementation of the offer €165m €363m Creation of complementary expertise poles • Knives - WMF Groupe SEB Groupe SEB pro forma • Thermo jugs / mugs - EMSA • Food storage containers
Slide 66: Development in premium cookware
Development in premium cookware Complementary brands: All-Clad, Lagostina, WMF and Silit €180m €600m Significant increase in premium cookware market share Groupe SEB Groupe SEB pro forma 2016 Full-year results intervenant 66
Slide 67: Synergies in costs
Synergies in costs Cross expertise Structure and Critical mass & Operations support functions Procurement massification R&D Pooled functions Utilization of industrial Industrial efficiency Groupe SEB / WMF capacities Supply-chain optimization organization and IT systems 2016 Full-year
Slide 68: 2017 guidance
2017 guidance pro forma 2014 2015 2016 2016 Sales +4.6% +8.0% +6.1% +5.7% ORfA €368m €428m €505m €599m Organic sales growth 2017 Increase in Operating Result from Activity Objectives Confirmed WMF relution > 20% on 2017 EPS* * Before the impact of purchase price allocation (in particular, revaluatio
Slide 69: 4. Appendixes
2016 FULL-YEAR RESULTS February 21, 2017 4. Appendixes 2016 annual results intervenant 69
Slide 70: Substantial variations in exchange rates
Substantial variations in exchange rates • Collapse of certain currencies vs. € - In last years (change in average rates in 2016 vs. 2015) RUB BRL JPY TRY COP CAD UAH ARS USD CNY -6% -4% +13% -9% -8% -2% -11% -35% +0% -4% - In last two years (change in average rates in 2016 vs. 2014) RUB BRL JPY TRY
Slide 71: Currency effect / quarter on sales and ORfA
Currency effect / quarter on sales and ORfA 2014 2016, in €m Currency impact Total Q1 Q2 Q3 Q4 Sales on sales Year 2016 -39 -53 -18 -12 -122 5,000 2015 +60 +67 +12 +10 +149 4,770 2014 -53 -54 -19 -6 -132 4,253 Currency impact Total Q1 Q2 Q3 Q4 ORfA on ORfA Year 2016 -45 -26 -43 -18 -122 505 2015 -
Slide 72: Trend in sales and ORfA
Trend in sales and ORfA 2015 – 2016 By half-year, in €m Sales Organic Sales Currencies Scope 2015 growth 2016 H1 2,113 +127 -92 +16 2,164 H2 2,657 +165 -30 +44 2,836 Year 4,770 +292 -122 +60 5,000 2016 ORfA Productivity Growth Other Currenci ORfA Volumes Price mix ORfA Scope 2015 Purchasing drivers
Slide 73: Organic sales growth by geographical region
Organic sales growth 2014 by geographical region 2015 2016 18.0%16.6% 12.7% 15.4% 7.7% 6.7% 7.0% 5.3% 4.8% 3.5% 3.1% 0.0% 4.2% 4.0% 3.3% 1.8% -4.0% -5.2% WESTERN OTHER EU NORTH SOUTH CHINA OTHER ASIAN EUROPE AMERICA AMERICA COUNTRIES 8.0% 6.1% 4.6% WORLD 2016 Full-year results intervenant 73 73
Slide 74: Glossary
• Glossary 2016 annual results intervenant 74
Slide 75: Glossary: LFL and ORfA definitions
On a like-for-like basis (LFL) – Organic The amounts and growth rates at constant exchange rates and consolidation scope in a given year compared with the previous year are calculated: using the average exchange rates of the previous year for the period in consideration (year, half-year, quarter);
Slide 76: Schedule for upcoming events
Schedule for upcoming events 21/02/2017 6:30 am 2016 annual results 27/04/2017 5:40 pm 2017 first-quarter sales and financial data 11/05/2017 2:30 pm 2017 Annual General Meeting 26/07/2017 6:30 am 2017 first-half sales and results intervenant 2016 annual results 76
Slide 77: Contacts
Contacts Investor/Analyst relations Media relations Groupe SEB Image Sept Financial Communication Caroline Simon and Investor Relations Claire Doligez Isabelle Posth and Sandrine Boussard Isabelle Dunoyer de Segonzac iposth@groupeseb.com caroline.simon@image7.fr sboussard@groupeseb.com cdoligez@imag