Seb Sa · EURONEXT:SK
Seb Sa — Groupe SEB — FY2021 Earnings Presentation
74 slides from Seb Sa's earnings presentation, Feb 25, 2022
Slide 1: 2021 Full-Year Results
2021 FULL-YEAR RESULTS Ecully | February 25, 2022 Listen to the webcast of the meeting here or at www.groupeseb.com
Slide 2: Note
2021 FULL-YEAR RESULTS 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 commod
Slide 3: Sommaire
SOMMAIRE 1. A structurally buoyant Small Domestic Equipment (SDE) market 2. Groupe SEB creates long-term value 3. Concrete example: Supor in China 4. Outstanding 2021 performances 5. Outlook 6. Appendixes
Slide 4: A Structurally Buoyant Small Domestic Equipment Market
01 A STRUCTURALLY BUOYANT SMALL DOMESTIC EQUIPMENT MARKET
Slide 5: Supporting all of the company's developments
Supporting all of the company’s developments 5 02/25/2022 2021 Full-Year Results
Slide 6: The Small Domestic Equipment market is structurally creating value
The Small Domestic Equipment market is structurally creating value An attractive sector... Luxury Small Domestic Equipment Technology Annual Health return* 10 years Transport & Leisure Construction Automotive (2010-2020) Utilities Banking CAGR Revenue 10 years (2010-2020) *Global return for the shar
Slide 7: SDE market creating value in mature and emerging markets
The Small Domestic Equipment market is structurally creating value …in mature and emerging markets Germany United States* South Korea Australia Netherlands Belgium France United Kingdom Spend on Small Canada* Japan electrical appliances Bubbles represent SDA (€/inhab - 2020) market size in countries
Slide 8: Profitability linked to local market share
The Small Domestic Equipment market is structurally creating value ...with profitability linked to local market share SEB sales: Groupe SEB <€100m 2020 Op. margin SEB sales: €100-300m SEB sales: >€300m Groupe SEB market share, 2020 (SDA + Cookware) Sources: 2020 GFK, NPD and AVC market share 8 02/25
Slide 9: Development of the Cocoon Economy in mature markets
Development of the Cocoon Economy in recent years in mature markets 9 02/25/2022 2021 Full-Year Results
Slide 10: Refocusing on the home, boosting growth
Refocusing on the home, boosting growth GfK – on a basis of 100 SDA market CAGR - EMEA +11% +5% 2017-2019 2019-2021 ➔ Acceleration in 2020-2021 10 02/25/2022 2021 Full-Year Results
Slide 11: Renewing product assortments...
Renewing product assortments... Notion of renewal 11 02/25/2022 2021 Full-Year Results
Slide 12: Renewing product assortments...
Renewing product assortments... 12 02/25/2022 2021 Full-Year Results
Slide 13: ...supported by upselling (volume)
Breakdown in volume ...supported by upselling... c Food preparation c Espresso machines c Vacuum cleaners 25,0 25,0 25,0 33,1 35,6 35,6 24,6 24,9 25,1 c 22,4 c 20,5 c 23,1 25,2 24,9 24,1 25,3 28,2 20,0 25,2 25,2 25,8 21,3 19,2 15,6 2017 2021 2017 2021 2017 2021 > 0 <= 57 > 57 <= 85 > 85 <= 150 > 150
Slide 14: ...supported by upselling (value)
Breakdown in value ...supported by upselling... c Food preparation c Espresso machines c Vacuum cleaners 53,9 64,7 68,6 67,8 71,4 77,9 c c c 23,8 17,4 17,4 14,0 17,5 11,4 11,2 14,3 10,0 9,1 9,3 8,3 6,7 4,6 4,9 2,5 8,0 5,3 2017 2021 2017 2021 2017 2021 > 0 <= 57 > 57 <= 85 > 85 <= 150 > 150 > 0 <= 49
Slide 15: Level of equipment leaves room for progression
…and a level of equipment that leaves considerable room for progression… Example: France Kitchen electrics Beverage preparation Vacuum cleaners Cooking pots Multicookers Multi-function Capsule Full-Auto Cylinder Versatile Robot cooking food processor ➔ Consumers’ desire to complete their equipment S
Slide 16: Developing household equipment in emerging markets
Developing household equipment in emerging markets... TEFAL - Egypt IMUSA - Colombia Rowenta – Central Europe 16 02/25/2022 2021 Full-Year Results
Slide 17: Correlating with the emergence of a middle class
...Correlating with the emergence of a middle class Bubbles representing SDA market share in countries Poland Asia Slovakia EMEA Spend on Small electrical appliances Americas Greece Hungary Croatia (€/inhab. - 2020) Chile Russia Romania Brazil China Ukraine Turkey Thailand Argentina Malaysia South A
Slide 18: Impressive growth in emerging countries
...With impressive growth in emerging countries Middle Class 2010 2020 2030e (billions of inhabitants) Mature countries 1 1 1 Emerging countries 1 2 4 Total 2 Bn 3 Bn 5 Bn Source: OECD/World Bank 18 02/25/2022 2021 Full-Year Results
Slide 19: Requiring local products in local structures
...Requiring local products in local structures 19 02/25/2022 2021 Full-Year Results
Slide 20: Groupe SEB Creates Long-Term Value
02 GROUPE SEB CREATES LONG-TERM VALUE
Slide 21: Innovation at the core of growth dynamics
Innovation at the core of growth dynamics New scopes Growth New categories/ New segments innovations Range upgrade Improved mix Renewal of our existing ranges Range management 21 02/25/2022 2021 Full-Year Results
Slide 22: Videos
Videos 22 02/25/2022 2021 Full-Year Results
Slide 23: A structured strategy focused on consumer benefits
A structured strategy focused on consumer benefits... 2018 2019 2020 2021 through(*) Break- Upgrade(**) (*) Breakthrough innovation: new use/technology for a newly identified consumer need 23 02/25/2022 2021 Full-Year Results (**) Upgrade innovation: new use/technology for a recognized consumer need
Slide 24: New functional features and design to foster upgrade
…with new functional features and design to foster upgrade Cookware Kitchen electrics WMF Cookeo Touch High-end Tefal High-end Ingenio Cookeo Tefal 670 Turbocuisine 300 Entry-level Tefal 150 270 330 100 100 Renewal Innovation Renewal Innovation 24 02/25/2022 2021 Full-Year Results
Slide 25: New functional features and design to foster upgrade
…with new functional features and design to foster upgrade Food preparation Beverage preparation i-Companion Touch XL WMF Perfection i-Companion XL Click Chef Krups Intuition 650 400 350 Krups Arabica 100 195 195 100 100 Renewal Innovation Renewal Innovation 25 02/25/2022 2021 Full-Year Results
Slide 26: New functional features and design to foster upgrade
…with new functional features and design to foster upgrade Linen care Home care Pro Express Vision XO Ixeo Versatile Steam Canister vacuum generator cleaner 300 300 250 200 100 100 Renewal Innovation Renewal Innovation 26 02/25/2022 2021 Full-Year Results
Slide 27: Harnessing consumer's experience
...and harnessing consumer’s experience Distribution Communities/Connectivity/Apps Circular economy ▪ Permanent cookware ranges in ▪ Multi-channel approach 20 brand apps recycled aluminum ▪ Strengthened online presence: ▪ SDA repairability >90% 39% of sales ▪ Partnership with Back Market… ▪ Ne
Slide 28: Strengthened worldwide positions in 2021
In this context, the Group strengthened its worldwide positions in 2021 Groupe SEB generates More than 75% of its sales in markets where it is a LEADER* Cookware + Small Domestic Appliances = Small Domestic Equipment *No.1 or No. 2 #1 #1 #2 #2 #3 #4 #1 <#4 28 02/25/2022 2021 Full-Year Results
Slide 29: Concrete Example: Supor in China
03 CONCRETE EXAMPLE: SUPOR IN CHINA
Slide 30: In a high-potential market
In a high-potential market... Growth levers ▪ Equipment level moderate or unequal depending on the ~ 400m ~ 700m > 1bn region ▪ Increase in income 2010 2020 2030(e) ▪ Upselling, innovation ▪ Government policy of “common prosperity” / domestic Chinese middle class consumption Mc Kinsey Global Institu
Slide 31: Rolling out innovation-driven dynamics
…the Group is rolling-out its own innovation-driven dynamics... Anti-rust Titanium wok High-speed blender Oil-concentrated pan Infrared technology ➔ SUPOR sales prices higher than the market average, both offline and online 31 02/25/2022 2021 Full-Year Results
Slide 32: Creating value for consumers
…creating value for consumers… Spherical inner pot Shallow inner pot 1.0 Shallow inner pot 2.0 (in FIR rice cooker) 32 02/25/2022 2021 Full-Year Results
Slide 33: Improving its price mix
…and improving its price mix RSP 730 Supor 680 Shallow pot 2.0 630 Shallow pot 1.0 580 Spherical pot 1.0 Spherical pot 1.0 upgrade 530 480 +128% 430 1st Launch Aug 2013 380 330 280 RSP 309 230 33 02/25/2022 2021 Full-Year Results
Slide 34: Extending portfolio to new categories
The Group is extending its portfolio to new categories… Cooking food processors Oilless fryers Integrated gas stoves Floor washers 34 02/25/2022 2021 Full-Year Results
Slide 35: Extending portfolio to new categories
The Group is extending its portfolio to new categories... Versatile mop-vacuum cleaners Versatile mop-vacuum cleaner 35 02/25/2022 2021 Full-Year Results
Slide 36: Capitalizing on digital transformation
… and is capitalizing on a digital transformation that is delivering results... Weight of online sales ▪ Solid progress in e-commerce on social media and new platforms CAGR +13% • Outperformance vs. competitors on TikTok • 11/11: sales up +15% ▪ Sharp acceleration in O2O 53% 65% ▪ Successful develop
Slide 37: Further consolidating positions in China
…to further consolidate its positions Spontaneous awareness #1 in cookware #2 in domestic appliances Strengthened market share in 2021 ▪ #1 in cookware (Online%: 46%) • Online market share 21.7% (+2.0 pts) • Offline market share up 48.5% (-0.7 pt) ▪ #2 in kitchen electrics (Online%: 69%) • Online ma
Slide 38: Outstanding 2021 Performances
04 OUTSTANDING 2021 PERFORMANCES
Slide 39: 2021: record performances
2021: record performances 8 ,059 7 ,354 6 ,812 6 ,940 6 ,485 ▪ Sales above €8bn ➢ Organic growth of €1bn vs 2020 ▪ Operating Result From Activity (ORFA) above €800m 2017 2018 2019 2020 2021 Sales in €m ➢ Back to an operating margin above 10% 813 ▪ Renewed demonstration of the Group’s resilience 740
Slide 40: 2021 Key figures (1/2)
2021 Key figures (1/2) Sales ORFA €8,059m €813m +16.1% +15.5% LFL +34.3% Adjusted EBITDA Net profit €1,041 m* €454m +22.3% +51.0% 2021 vs. 2020 * Incl. IFRS 16: €94m 40 02/25/2022 2021 Full-Year Results
Slide 41: 2021 Key figures (2/2)
2021 Key figures (2/2) Capital Net financial debt/ Net financial debt Adjusted EBITDA expenditures €284m €1,524m* 1.5x Stable vs. 12/31/2020 3.5% of sales 1.3x excl. IFRS-16 * Incl. IFRS 16: €335m 41 02/25/2022 2021 Full-Year Results
Slide 42: Sales
1 Sales 2 Results 42 02/25/2022 2021 Full-Year Results
Slide 43: Sales growth 2020 to 2021
Sales growth 2020 ➔ 2021 in €m +1,079 -22 +62 8,059 6,940 Organic Currency Scope growth effect +15.5% -0.3% +0.9% +16.1% 2020 2021 43 02/25/2022 2021 Full-Year Results
Slide 44: Currency impact on 2021 sales
Currency impact on 2021 sales In €m - €22m 60 Q1: -€81m 50 Q2: -€44m 40 Q3: +€38m Q4: +€65m 30 20 10 0 -10 -20 EGP CNY CAD CZK AUD CHF THB ARS BRL RUB JPY TRY OTHER GBP MXN PLN COP USD 44 02/25/2022 2021 Full-Year Results
Slide 45: 2021 sales
2021 sales Sales €8,059m +16.1% +15.5% LFL Professional Consumer €628m €7,431m +9.2% +10.2 % LFL +16.7% +16.0% LFL 45 02/25/2022 2021 Full-Year Results
Slide 46: Professional: back to positive momentum
Professional: back to positive momentum ▪ Confirmed upturn in PCM revenue as from Q2 • Core business improving with innovation and constant expansion of the customer portfolio • Deals as additional catalysts ▪ Strong Q4 (+14.4% LFL) 46 02/25/2022 2021 Full-Year Results *Professional = Professional c
Slide 47: Consumer: record and quality sales
Consumer: record and quality sales ▪ Strong momentum • All geographies and categories* • E-commerce as a strong catalyst ▪ Quality sales/less promotional environment ▪ Significantly higher growth drivers spendings ▪ Price increases to help offset headwinds *Excluding fans 47 02/25/2022 2021 Full-Yea
Slide 48: Change in sales by region
Change in sales by region AMERICAS EMEA ASIA €1,082m/+19.1% €3,891m/+18.7% €2,458m/+10.7% +57.2% +15.3% +34.9% +8.6% +6.6 % -0.5% H1 H2 H1 H2 H1 H2 2021 Consumer sales: €7,431m / +16% 48 02/25/2022 2021 Full-Year Results
Slide 49: Change in sales by product lines
Change in sales by product lines 40% 35% 30% Home care 25% 20% LKA* 15% Electrical cooking 10% Drinks Personal care Cookware 5% Food 0% Linen care preparation 2021 Consumer sales: €7,431m / +16% -5% Home comfort -10% *LKA = Large Kitchen Appliances 49 02/25/2022 2021 Full-Year Results
Slide 50: The winning categories in 2021
The winning categories in 2021 ➔ Kitchen electrics ➔ Cookware ➔ Floor care 50 02/25/2022 2021 Full-Year Results
Slide 51: Results
1 Sales 2 Results 51 02/25/2022 2021 Full-Year Results
Slide 52: Operating Result From Activity (ORFA)
Operating Result From Activity (ORFA) 2021 vs. In €m 2019 2020 2021 2020 Sales 7,354 6 ,940 8,059 +16.1% ORFA 740 605 813 +34.3% Op. margin 10.1% 8.7% 10.1% +1.4 pt 52 02/25/2022 2021 Full-Year Results
Slide 53: ORFA bridge
ORFA bridge In €m + 387 -189 - 136 Cost of sales -26 834 - 25 813 +193 +4 Growth Sales, Scope 605 Price mix drivers marketing and administrative Currencies effect expenses Volumes 2020 2021 2021 LFL Reminder: ~€300m headwinds in 2021 (raw materials, components, freight, currencies) 53 02/25/2022 202
Slide 54: Growth drivers
Growth drivers 2021 vs. In €m 2019 2020 2021 2020 Innovation 251 228 266 +17% Advertising and marketing 463 472 572 +21% Total growth drivers 714 699 838 +20% 54 02/25/2022 2021 Full-Year Results
Slide 55: Operating profit
Operating profit 2021 vs. In €m 2019 2020 2021 2020 ORFA 740 605 813 +34% Statutory and discretionary -37 -24 -39 employee profit-sharing Other operating income and -82 -78 -59 expense Operating profit 621 503 715 +42% 55 02/25/2022 2021 Full-Year Results
Slide 56: Net profit
Net profit 2021 vs. In €m 2019 2020 2021 2020 Operating profit 621 503 715 +42% Financial result -61 -60 -65 Tax -131 -94 -142 Non-controlling interests -49 -48 -54 Net profit 380 301 454 +51% 56 02/25/2022 2021 Full-Year Results
Slide 57: Simplified balance sheet
Simplified balance sheet In €m 2019 2020 2021 Tangible fixed assets 4,263 4,250 4,444 Operating WCR 1,215 848 1,115 Total assets to be financed 5,478 5,098 5,559 Equity 2,628 2,735 3,291 Provisions 423 454 394 Other current assets and liabilities 430 391 350 Net financial debt 1,997 1,518 1,524 Tota
Slide 58: Change in the operating WCR
Change in the operating WCR 2019 2020 2021 2021 vs 2020 €m % sales €m % sales €m % sales €m Receivables 1,017 13.8% 841 12.1% 789 9.8% -52 Inventories 1,189 16.2% 1,212 17.4% 1,840 22.8% 628 Payables -991 -13.5% -1,205 -17.3% -1,514 -18.8% -309 WCR 1,215 16.5% 848 12.2% 1,115 13.8 % 267 58 02/25/202
Slide 59: WCR/sales ratio over a long period
WCR/sales ratio over a long period 25,6% 24,8% 22,7% 22,4% 21,2% 18,5% 18,8% 16,5% 16,5% 13,8% 12,2% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 59 02/25/2022 2021 Full-Year Results
Slide 60: Free cash flow generation
Free cash flow generation Amortization/Statutory In €m and discretionary employee profit-sharing +228 -282 Chg. Operating WCR -284 +1,041 Investments -174 +813 +5 Tax and interest Chg. Non- +306 operating WCR and others ORFA Adjusted Free cash EBITDA flow 60 02/25/2022 2021 Full-Year Results
Slide 61: Change in net financial debt
Change in net financial debt In €m 1,518 Free cash Other non- operating 1,524 flow - 51 expenses +151 +72 Currencies -306 Dividends +140 Acquisitions and share buybacks Net financial debt Net financial debt 12/31/2020 12/31/2021 61 02/25/2022 2021 Full-Year Results
Slide 62: Net financial debt at December 31, 2021
Net financial debt at December 31, 2021 “Headroom” €1,407m NEU CP 137 3,337 -2,323 NEU MTN Local debt 280 56 Bonds 1 500 Syndicated credit line 175 1,524 990 335 Schuldschein Other non- 699 1,014 cash items NEU MTN 220 o Diversified sources of financing Cash & IFRS 16 equivalents o High available li
Slide 63: Financial ratios over a long period
Financial ratios over a long period *excl. IFRS 16 2,8 2,4 2.1 1,9 1.8 1,3 1,2 1.9* 1.6* 1.5 1,1 0,9 1,0 1,0 0.8 1.3* 0,6 0,7 0.6 0,5 0,4 0,3 0,3 0.5 0,2 11 12 13 14 15 16 17 18 19 20 21 Net financial debt/Adjusted EBITDA Net financial debt/Equity Ratios at 12/31 63 02/25/2022 2021 Full-Year Results
Slide 64: Dividend trend over 15 years
Dividend trend over 15 years (in €) At 02/23: Annual TSR 11.3% (dividends reinvested) 2,45* 2,14 Loyalty bonus: +10% +14.5% 1,95 (for registered shares held for two 1,82 consecutive calendar years) 1,56 1,40 1,31 1,26 1,20 1,14 1,30 1,06 0,95 0,85 0,85 *Proposed at the AGM of 19 May 2022 2007 2008 2
Slide 65: Outlook
th ‘ 7 % OUTLOOK a
Slide 66: Groupe SEB emerges stronger from these two years
Groupe SEB emerges stronger from these two years 2021 ▪ 2021 performances up markedly vs. 2019 ▪ Growth in all regions and all product lines ▪ Leadership reinforced in the Small Domestic Equipment market ▪ Resilience of the business model 66 02/25/2022 2021 Full-Year Results
Slide 67: 2022 vision
2022 vision 2022 ▪ Growth in sales for both Consumer and Professional activities ▪ Absorption of additional costs linked to supply chain and currencies ▪ Increase in ORFA ▪ Continued roll-out of the strategy and confidence in our business model 67 02/25/2022 2021 Full-Year Results
Slide 68: Appendixes
06 APPENDIXES
Slide 69: Total sales per region
Total sales per region Total sales Consumer sales Professional Consumer Other Asia 8% 92% 8% Western Europe 37% China €8,059m 25% €7,431m +15.5% LFL +16.0% LFL South America 4% Other EMEA 15% North America 11% 69 02/25/2022 2021 Full-Year Results
Slide 70: Annual sales by region
Annual sales by region In €m As Q4 2021 2020 2021 LFL reported LFL EMEA 3,307 3,892 +17.7% +18.7% +7.6% EMEA Western Europe 2,406 2,770 +15.2% +14.9% +5.5% Other countries 901 1,121 +24.5% +28.9% +13.5% AMERICAS 876 1,082 + 23.5% +19.1% +2.5% AMERICAS North America 622 788 +26.6% +18.0% +11.8% South
Slide 71: 2021 quarterly sales
2021 quarterly sales In €m Q1 Q2 H1 Q3 9 months Q4 2021 EMEA 870 791 1,662 936 2,597 1,294 3,892 Western Europe 599 572 1,171 671 1,843 928 2,770 EMEA Other countries 271 219 490 264 755 367 1,121 AMERICAS 243 237 480 293 773 309 1,082 AMERICAS North America 178 170 348 202 550 238 788 South America
Slide 72: Glossary
Glossary 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,
Slide 73: Contacts
Investor/Analyst Relations Media Relations Groupe SEB Groupe SEB Financial Communication Corporate Communication Dept and Investor Relations Dpt Isabelle Posth Cathy Pianon C O N TA C T S Raphaël Hoffstetter Anissa Djaadi iposth@groupeseb.com cpianon@groupeseb.com rhoffstetter@groupeseb.com adjaadi@
Slide 74: Agenda: Upcoming events 2022
Upcoming events – 2022 AGENDA April 28 | after market close Q1 2022 sales and financial data May 19 | 15:00 Annual General Meeting July 21 | before market opens H1 2022 sales and results October 24 | after market closes 9-month 2022 sales and financial data 74 02/25/2022 2021 Full-Year Results