Seb Sa · EURONEXT:SK
Seb Sa — Groupe SEB — Investor Presentation (December 2020)
71 slides from Seb Sa's investor presentation, December 2020
Slide 1: Groupe SEB Presentation November/December 2020
GROUPE SEB PRESENTATION November/December 2020
Slide 2: Disclaimer
Disclaimer NOTE This presentation 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 including trends in commodity prices,
Slide 3: Contents
CONTENTS 1. Groupe SEB in a nutshell 2. Group Strategy and Positioning 3. ESG: a committed Group 4. H1-2020 results 5. 9M 2020 review 6. Outlook 7. Appendix 3 Nov/Dec 2020 Groupe SEB Presentation
Slide 4: Groupe SEB in a nutshell
. GROUPE SEB IN A NUTSHELL
Slide 5: 2019 Key Figures
2019 Key Figures €7,354m €740m €380m 34,000 Sales, + 5.8% Operating Result Net income employees LFL from Activity €267m 1,345 42 Investments in own industrial sites innovation retail stores 5 Nov/Dec 2020 Groupe SEB Presentation
Slide 6: An extensive and diversified product offering
An extensive and diversified product offering SMALL ELECTRIC APPLIANCES KITCHEN ELECTRICS COOKWARE - KITCHENWARE HOME AND PERSONAL CARE PROFESSIONAL Coffee machines Hotel Equipment 6 Nov/Dec 2020 Groupe SEB Presentation
Slide 7: Competing on a playfield of ~€80bn
Competing on a playfield of ~ €80bn ~€47bn EMEA ~€24bn Asia EMEA Asia ~€9bn Americas Americas Small Domestic Appliances Cookware / Kitchenware Professional Coffee (SDA) (CW / KW) Machines CONSUMER PROFESSIONAL 7 Nov/Dec 2020 Groupe SEB Presentation Addressed market size
Slide 8: Main trends structuring our Consumer industry
Main trends structuring our Consumer industry Scale effect Improvement of technical capabilities in Asian countries Local approach Production New models Expansion Critical size Pure players (direct / marketplaces) of online Leadership By country and by segment channel Click & Mortars SDA AND CW / KW
Slide 9: A consumer in constant transformation
A consumer in constant transformation… Health New Simplification & Wellness uses Commitment Digitization Ease of use, Healthy eating Personalized and A quest for meaning, E-commerce, versatility and and emphasizing multicultural naturalness, and connections and time saved home-made trend experience
Slide 10: Professional coffee machines: major development drivers
Professional coffee machines: major development drivers Full autos – around 25% of the global market Filter – < 10% of the global market Global market Fully Automatic U.S market Coffee Machines – "Equipment" Filter Coffee Machines Penetration of Fully Automatic Coffee "Equipment"(2) Machines per cou
Slide 11: A stable shareholding base allowing long-term vision
A stable shareholding base allowing long-term vision… Structure of shareholding at 31/12/2019 Distribution of voting rights at 31/12/2019 Treasury shares Individual Individual 0,7% Shareholders VENELLE 5,0% Shareholders VENELLE INVESTISSEMENT 5,6% INVESTISSEMENT & associates * 19,5% & associates * 2
Slide 12: A value-creation strategy
… and a value-creation strategy Focus on Strengthen our growth competitiveness Strength and complementarity of our brands International industrial footprint ▪ Mature countries Product innovation ▪ Emerging countries Multi-channel distribution strategy International expansion Lean structure ➔ Organic
Slide 13: Group Strategy and Positioning
02 GROUP STRATEGY AND POSITIONING
Slide 14: Relevance of our balanced business model
Relevance of our balanced business model 1 GEOGRAPHIES 2 CATEGORIES MULTI 3 BRANDS 4 CHANNELS 5 ESG 14 Nov/Dec 2020 Groupe SEB Presentation
Slide 15: A global balanced presence
Balanced sales breakdown A global balanced presence 1 ▪ Unrivalled global footprint, strong local positions ✓ ¾ of sales in countries where we are #1 or #2 Emerging markets ✓ Increased critical mass across countries Mature markets 45% 55% ▪ Long-term growth enablers ✓ Mature markets ➔ Renewal, premi
Slide 16: A presence on numerous product categories
A presence on numerous product 2019 sales by category categories... Professional Kitchen 2 ~10% Electrics Home and ~40% ▪ Global leader in Cookware, Kitchen Electrics and Linen Personal ~20% care Care ✓ Growing steadily in all Consumer categories ~30% ▪ Global leader in Professional Coffee (automati
Slide 17: A capacity to reinvent ourselves constantly
Versatile Vacuum Cleaners ...and a capacity to reinvent ourselves +€100m constantly 2 Garment ▪ Creating new product opportunities by leveraging: steamers Sales ≥ €100m Mugs ✓ Technological developments and consumer trends x2 x4 ✓ Our innovation capabilities ✓ Targeted external growth acquisitions ▪
Slide 18: A constant focus on innovation
A constant focus on innovation 2 ~1,500 €267m ~10,000 Passion for Innovation, people expenses Active patents one of the 5 values (R&D, Marketing, Design) of the Group 2019 figures Seb/Tefal Actifry Supor Tefal Tefal Ingenio Moulinex Rowenta Krups Moulinex Rowenta Tefal Original Steam Pro RC Ixeo Ast
Slide 19: A unique brand portfolio
A unique brand portfolio... 3 ▪ Strong, diversified and complementary brands ✓ Consumer, global and regional ✓ Premium ✓ Professional ▪ Organized on platforms ▪ Responsible and inspiring brands ALL-CLAD I ARNO I ASIAVINA I CALOR I CLOCK I DASH I EMSA HEPP I IMUSA I KAISER I KRAMPOUZ | KRUPS I LAGOST
Slide 20: ...and strong local roots
...and strong local roots 3 ▪ Emblematic local brands appealing to consumers in their day-to-day lives for 3 generations ✓ Heritage and credibility ✓ Average age of our brands: 85 years old ▪ Supported by local brand ambassadors ✓ Chefs, influencers, communities of consumers, etc. ▪ Stakeholders in
Slide 21: A multi-channel approach
Sales by distribution channel (2019 figures) A multi-channel approach... Professional 11% Mass retail Proprietary 18% stores 6% 4 Others ▪ Coverage of all distribution channels 9% Specialists ✓ Accessing all consumers 16% ✓ Adapting to local habits Traditional 16% E-Commerce ▪ Long-term partnerships
Slide 22: Increased proximity with end-consumers
Digital share in media investment ...and an increased proximity with end-consumers ~50% 4 x2 2016 2019 ▪ Targeted digital approaches Traffic on Group websites ✓ E-Commerce ✓ Digital investments ✓ Direct relationship with Consumers (CRM) ✓ Communities & apps +79% 2016 2019 ▪ Direct approaches ✓ Group
Slide 23: Acquisitions as an additional catalyst, on top of LFL growth
Acquisitions as an additional catalyst, on top of LFL growth 8000 2005 2019 2020 2016 2018 7000 6485 1988 2011 6812 7354 2001 6000 1998 1972 4770 5000 2004 2007 4000 1997 1968 2870 2015 3000 2000 Sales in €m 1825 2006 1764 Acquisitions 1000 170 7 0 1953 1975 1998 2000 2007 2015 2016 2017 2018 2019 2
Slide 24: Acquisition of Storebound in H1-2020
Acquisition of Storebound in H1-2020: a successful scale-up in the US thanks to digital ✓ Start-up created in 2010 ➔ 1-million Instagram followers • Consumer-centric approach • Strong retail expertise A successful scale-up, leveraging digital technologies ✓ 2019 sales: ~ $90m ✓ Key brand: Dash, a br
Slide 25: Investments by SEB Alliance in H1 2020
Investments by SEB Alliance in H1 2020 New, green businesses 25 Nov/Dec 2020 Groupe SEB Presentation
Slide 26: Group competitiveness based on a worldwide industrial footprint
Group competitiveness based on a worldwide industrial footprint GERMANY Emsdetten FRANCE St Lô Vernon Diez 42 industrial sites Erbach Mayenne Selongey Geislingen CHINA Pluguffan Hayingen Is/Tille Shanghaï Tournus Rumilly Riedlingen Taicang Pont Evêque Marigny RUSSIA Shaoxing Hangzhou 2/3 of products
Slide 27: WMF competitiveness plan: update
WMF competitiveness plan: update ▪ July 2019 ➔ Announcement of WMF competitiveness plan • September 2019: start of negotiations with employee representatives • May 2020: signature of an agreement ▪ Headcount reduction plan for support functions • 312 positions targeted, o/w 237 by end-2020 ▪ Cookwar
Slide 28: ESG: A committed group
03 ESG: A committed group
Slide 29: Sustainable development pillars
Sustainable development pillars Empower our customers to have sustainable livings with our products and services Demonstrate daily Make healthy and tasty Help everyone to live better Make our products Contribute to the fight vs our respect for everyone homemade food that is in a healthy home, regard
Slide 30: People matter
People matter Human Ethics Philanthropy resources • Code of ethics • Social protection floor : • Fight against exclusion: ✓ Death benefit > 400 projects aiming • Responsible purchasing ✓ Medical plan for “a better life for all” ✓ Parenthood • Audits • Health & safety • Employees commitment: • Charit
Slide 31: Cooking for good
Cooking for good Homemade Healthy Sustainable • Help families in difficulty • Creation of a Healthy and • Meet new consumer to improve the diet of sustainable recipe and dietary trends their children from 0 Charter to 3 years old • Promotes more • 2019: 15.000 families responsible everyday • Goal fo
Slide 32: Better homelife
Better homelife Better indoor quality Good design • Intense Pur Air & Clean & Steam • Improve the ergonomics of all products • Filters up to 99.95% of pollution and permanently destroys • Permanent: one arm formaldehyde • Temporary: arm injury • Clean & Steam range: clean floor without detergents: •
Slide 33: Circular revolution
Circular revolution Give more Repair Recycling than one life • 94% of electrical • 1 000 000 pots & pans • Renting programs appliances are mainly collected since 2012 repairable • Recrafting • Eco-Respect range: • 40 000 spare parts in 100% recycled • Products donations references aluminum • 6 200 r
Slide 34: Act for the Climate
Act for the Climate Eco Eco design Eco logistic manufacturing • Eco design politic : • Prioritizes non-road • Eco innovative projects • Durable & recyclable transport: transport by rail • > 150 best practices and river. • Energy efficiency or use of alternative materials • Renewable energies in Fran
Slide 35: Groupe SEB Executive Committee
Groupe SEB Executive Committee Thierry de La Tour d’Artaise Stanislas de Gramont Chairman and CEO Chief Operating Officer Nathalie Lomon Vincent Tai Executive VP, Asia Senior Executive VP, Finance Cyril Buxtorf Executive VP, EMEA Harry Touret Senior Executive VP, Martin Zouhar Human Resources Execut
Slide 36: Our values
Our values Global vision Respect Leadership for change Passion for Products Pragmatism Loyalty Shared ambition Determination Innovator Know-how Corporate Social Trust Agility Daring High standards Responsibility Transparency ENTREPRENEURIAL PASSION RESPECT GROUP DRIVE FOR INNOVATION PROFESSIONALISM
Slide 37: H1-2020 Results
04 H1-2020 RESULTS
Slide 38: The Group adapted and continued its projects
The Group adapted and continued its projects Liquidity Priority to Business continuation preservation Projects health & safety c c and restart plan and cost reduction continued of employees action plans 38 Nov/Dec 2020 Groupe SEB Presentation 38
Slide 39: First-half 2020 sales
First-half 2020 sales Sales €2,914m -12.6% Q1: -16.5% Q2: -8.4% Consumer Professional €2,608m -10.6% €306m -27.6% Q1: -17.3% Q2: -3.2% Q1: -9.7% Q2: -43.4% LFL changes 39 Nov/Dec 2020 Groupe SEB Presentation
Slide 40: Key figures at end-June 2020
Key figures at end-June 2020 Sales ORfA €2,914m €103m -12.7% -12.6% LFL vs. €230m in H1 2019 Net profit Net debt €3m €2,085m vs. €100m in H1 2019 o/w IFRS 16 debt: €306m 40 Nov/Dec 2020 Groupe SEB Presentation
Slide 41: Change in sales - H1 2019 to 2020
Change in sales - H1 2019 → 2020 In €m 3,337 -420 2,914 +17 -20 Organic Currency growth effect Scope -12.6% -0.6% +0.5% -12.7% 2019 2020 41 Nov/Dec 2020 Groupe SEB Presentation
Slide 42: Continued digital breakthroughs
Continued digital breakthroughs ▪ Increased weight of online in H1 sales • Supor: ~60% of sales (vs. 45% in H1 2019) • US: 40% of sales (+10 points) • EMEA: ~30% of sales (+10 points)* 42 Nov/Dec 2020 Groupe SEB Presentation *SDA- GfK sell-out data on 14 countries
Slide 43: Record sales for Supor at the 618 Shopping festival
Record sales for Supor at the“618” Shopping festival ▪ Sales +64% ▪ Cookware: No. 1 in 10 categories ▪ Thermospot: 380 million views on TikTok ▪ Livestreaming: sales > RMB 80m 43 Nov/Dec 2020 Groupe SEB Presentation
Slide 44: Operating Result from Activity (ORfA)
Operating Result from Activity (ORfA) In €m 2019 2020 Δ Δ LFL Sales 3,337 2,914 -12.7% -12.6% ORfA 230 103 -55.0% -45.7% Op. margin 6.9% 3.5% -3.3 pts -2.6 pts 44 Nov/Dec 2020 Groupe SEB Presentation
Slide 45: Change in ORfA - H1 2019 to 2020
Change in ORfA - H1 2019 → 2020 In €m 230 -134 6.9% 125 of -26 +29 -24 103 sales +50 +2 -24 Volumes Currencies SG&A 4.3% Price of Scope 3.5% Mix COGS Growth sales effect of drivers sales 2019 2020 2020 LFL 45 Nov/Dec 2020 Groupe SEB Presentation
Slide 46: From ORfA to net profit
From ORfA to net profit In €m 2019 2020 Operating Result from Activity (ORfA) 230 103 Discretionary and non-discretionary profit-sharing (9) (5) Other operating income and expense (8) (40) Operating profit 213 58 Net financial expense (46) (29) Tax (40) (7) Non-controlling interests (27) (19) Net pr
Slide 47: Simplified balance sheet
Simplified balance sheet 30/06/2019 31/12/2019 30/06/2020 In €m Tangible fixed assets 4,162 4,263 4,200 Operating WCR 1,367 1,215 1,168 Total assets to be financed 5,529 5,478 5,368 Equity 2,323 2,628 2,499 Provisions 417 423 424 Other current assets and liabilities 361 430 360 Net financial debt 2,
Slide 48: Change in debt
Change in debt In €m +54 2,085 Free cash flow: +€65m (-€110m in H1 2019) 1,997 +100 -1 -232 +106 +14 -33 +80 Cash Tax Operating Other Other, non flow and financial Invest. WCR operations Dividends Currencies operating expense Debt end- Debt end- 2019 June 2020 48 Nov/Dec 2020 Groupe SEB Presentation
Slide 49: Ratios at June 30
Ratios at June 30 WCR as % of sales 23,1% 21,9% 21,1% 21,1% 20,2% 19,0% 18,4% 19,1% 17,6% 16,8% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net debt/equity 0,5 0,4 0,4 0,4 1,2 0,2 0,3 1.0 1,0 0,8 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net debt/adjusted EBITDA* 2,7 2,5 1,3 1,2 2,7 2,
Slide 50: Healthy and well-balanced financial structure
Healthy and well-balanced financial structure Confirmed undrawn 880 credit lines ~€1bn Cash & equiv. ▪ Diversified sources of 662 ~€1.8bn financing (Bonds, 500 538 500 Schuldschein, ORNAE, NEU MTN, NEU CP, etc.) Headroom inc. undrawn syndicated 283 ▪ No financial covenants loan 128 ▪ New €500m bond
Slide 51: 9M Review
05 9M REVIEW
Slide 52: 9-month and Q3 2020 sales
9-month and Q3 2020 sales Sales €4,712m -6.7% Q3: €1,797m, +4.4% Consumer Professional €4,284m -3.4% €428m -31.6% Q3: €1,675m, +9.9% Q3: €122m, -39.4% LFL changes 52 Nov/Dec 2020 Groupe SEB Presentation
Slide 53: Key figures
Key figures Q3 9 months €1,797m €4,712m Sales +1.1% +4.4% LFL -7.9% -6.7% LFL Operating Result €221m €324m from Activity +24.4% +44,2% LFL -20.4% -6.5% LFL Net debt €1,971m at 30/09/2020 -€488m vs 30/09/2019 incl. an IFRS 16 impact of €293m 53 Nov/Dec 2020 Groupe SEB Presentation
Slide 54: Analysis of 9-month sales growth, 2019 to 2020
Analysis of 9-month sales growth, 2019 ➔ 2020 In €m 5,114 -341 -110 4,712 +49 Organic Currency Scope growth effect -6.7% -2.2% +1.0% -7.9% 9 months 9 months 2019 2020 54 Nov/Dec 2020 Groupe SEB Presentation
Slide 55: Currency impact on 9-month 2020 sales
Currency impact on 9-month 2020 sales: -€110m In €m 5 0 -5 -10 -15 -€110m -20 Q1: +€3m Q2: -€23m -25 Q3: -€90m -30 -35 CHF CAD UAH RUB BRL TRY EGP KRW JPY ARS CNY PLN USD MXN COP OTHER 55 Nov/Dec 2020 Groupe SEB Presentation
Slide 56: Q3 back to growth in a volatile year
Q3 back to growth in a volatile year 20,0% LFL sales growth (% vs. 2019) 9,9% 10,0% 4,4% CONSUMER 0,0% -3,2% -3,4% PRO -10,0% -8,4% -6,7% -9,7% -17,3% -16,5% -20,0% GROUP TOTAL -30,0% -31,6% -40,0% -39,4% -43,4% -50,0% Q1 Q2 Q3 9 months 56 Nov/Dec 2020 Groupe SEB Presentation
Slide 57: Covid crisis impacts on consumer and retail
Covid crisis impacts on consumer and retail CONSUMER BEHAVIOURS EVOLUTION IN RETAIL ACCELERATION GRADUAL RECOVERY OF E-COMMERCE OF OFFLINE CHANNELS ▪ Pure player websites, Drop in traffic but better SHIFT TO HOME ESPECIALLY IN global and national conversion rate and higher CONSUMPTION COOKING ▪ Mark
Slide 58: Consumer product lines: 9-month sales change vs 2019
Consumer product lines: 9-month sales change vs 2019, LFL 9-month Consumer sales: €4,284m 10,0% 5,0% Excl. China +1.8% 0,0% - 3.4% -5,0% Personal Electrical Home Food Cookware care cooking comfort preparation -10,0% LKA* -15,0% Linen care Beverage Home care -20,0% Cooking categories ~ 3/4 of Consume
Slide 59: 9-month 2020 sales by geography, LFL – Consumer
9-month 2020 sales by geography, LFL – Consumer AMERICAS EMEA ASIA €584m / -3.1% €2,118m / -1.4% €1,582m / -6.2% +12.2% +10.8% +7.6% +6.0% -8.6% -7.5% -10.4% -17.4% -26.9% Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 All sub-continents posted positive LFL growth in Q3 59 Nov/Dec 2020 Groupe SEB Presentation
Slide 60: Outlook
06 OUTLOOK 60
Slide 61: 2020 Outlook
2020 Outlook 1. Overall environment severely impacted by the COVID-19 crisis. Caution still applies given the resurgence of the epidemic 2. FY-2020 sales • Annual sales to contract by around 5% to 6% on a LFL basis • Negative currency effect of €200-€250m. • Some normalization in demand for the Cons
Slide 62: Appendix
07 APPENDIX
Slide 63: Focus on Professional
Growth vs Q1 2020 Q2 2020 Q3 2020 9m 2020 9m 2020 Focus on Professional LY % LFL LFL LFL LFL as reported 9-month sales: €428m Professional -9.7% -43.4% -39.4% -31.6% -27.3% ▪ ~10% of 2019 Group revenue ▪ High 2019 comps for Professional Coffee Machines (PCM) due to large deals ▪ PCM sales severely a
Slide 64: EMEA 9-month sales: €2,118m
Growth vs Q3 2020 Q3 2020 9 months 2020 9 months 2020 EMEA LY % LFL as reported LFL as reported Western Europe 9-month sales: €2,118m +9.4% +9.4% -4.2% -4.2% Other EMEA +19.2% +6.7% +6.1% +0.7% countries Western Europe, LFL ▪ Positive market momentum in Western Europe ➔ Continued strong +9.4% restoc
Slide 65: AMERICAS 9-month sales: €584m
Growth vs Q3 2020 Q3 2020 9 months 2020 9 months 2020 LY % LFL as reported LFL as reported AMERICAS North America +8.6% +18.0% -0.1% +4.2% 9-month sales: €584m South America +15.0% -14.8% -8.3% -27.5% North America, LFL ▪ Increased FX headwinds in Q3 +8.6% ▪ Still difficult health situation in the c
Slide 66: ASIA 9-month sales: €1,582m
Growth vs Q3 2020 Q3 2020 9 months 2020 9 months 2020 ASIA LY % LFL as reported LFL as reported China +3.9% +0.1% -8.9% -10.7% 9-month sales: €1,582m Other Asian +12.4% +7.6% +3.8% +2.7% countries China, LFL +3.9% +10.2% ▪ Favorable trend in Chinese cookware market in Q3. Waning Chinese SDA market o
Slide 67: 9-month 2020 sales by region
9-month 2020 sales by region Other Asia Emerging countries Mature countries 9% 46% 54% Western Europe 37% China 26% €4,712m €4,712m -6.7% LFL -6.7% LFL South America 4% Other EMEA 13% North America 11% 67 Nov/Dec 2020 Groupe SEB Presentation
Slide 68: 9-month 2020 sales
9-month 2020 sales In €m 9 months 9 months 9 months Q3 2020 As reported 2019 2020 2020 LFL LFL EMEA 2,180 2,118 -2.9% -1.4% +12.2% Western Europe 1,586 1,520 -4.2% -4.2% +9.4% Other countries 594 598 +0.7% +6.1% +19.2% AMERICAS 630 584 -7.4% -3.1% +10.8% North America 400 417 +4.2% -0.1% +8.6% South
Slide 69: Q3 2020 sales
Q3 2020 sales In €m Q3 2020 Q3 2019 Q3 2019 Q3 2020 As reported LFL LFL EMEA 779 846 +8.6% +12.2% +7.1% Western Europe 553 605 +9.4% +9.4% +2.4% Other countries 226 241 +6.7% +19.2% +21.7% AMERICAS 268 286 +6.7% +10.8% +11.6% North America 176 208 +18.0% +8.6% +11.2% South America 92 78 -14.8% +15.0
Slide 70: Contacts
Investor/Analyst relations Media Relations Groupe SEB Groupe SEB Financial Communication Corporate Communication Dept and Investor Relations Dpt C O N TA C T S Cathy Pianon Isabelle Posth Anissa Djaadi Raphaël Hoffstetter cpianon@groupeseb.com iposth@groupeseb.com adjaadi@groupeseb.com rhoffstetter@
Slide 71: 2021 key dates
2021 key dates January 21 | after market close Provisional 2020 sales AGENDA February 25 | before market opens 2020 sales and results April 22 | after market closes Q1 2021 sales and financial data May 20 | 15:00 Annual general meeting July 23 | before market opens H1 2021 sales and results October