Seb Sa · EURONEXT:SK
Seb Sa — Groupe SEB — FY2020 Earnings Presentation
72 slides from Seb Sa's earnings presentation, Feb 25, 2021
Slide 1: 2020 Full-Year Results
2020 FULL-YEAR RESULTS Écully | February 25, 2021 Follow the webcast of the meeting here or at www.groupeseb.com
Slide 2: Note
2020 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: Contents
CONTENTS 1. 2020: a very particular year 2. Strong resilience and solidity of the Group in the face of the crisis 3. Projects continued 4. Conclusion and outlook 5. Appendixes
Slide 4: 2020: A very particular year
01 2020: A VERY PARTICULAR YEAR
Slide 5: A generally unprecedented environment
A generally unprecedented environment ▪ Covid-19: an unprecedented health and economic crisis ▪ Impacts on retail and consumption ▪ Solid momentum in the Small Domestic Equipment market, specifically cooking appliances and Cookware ➔ Driven by the “stay at home” obligation... ➔... and the strong acc
Slide 6: Committed and responsive Groupe SEB teams across the globe
Committed and responsive Groupe SEB teams across the globe Active liquidity Priority to employees’ Business continuity and Projects continued health & safety ensured cost management Widespread health Digital First measures New bond issue Operational flexibility Acquisitions and interest taken Remote
Slide 7: Thank you
THANK YOU 7 02/25/2021 2020 Full-year results
Slide 8: Resilient activity supported by the Consumer business
Resilient activity supported by the Consumer business Sales €6,940m -5.6% -3.8% LFL Professional Consumer €575m €6,365m -28.0% -30.7% LFL -2.9% -0.5% LFL 8 02/25/2021 2020 Full-year results
Slide 9: 2020 Key figures
2020 Key figures Operational Result from Activity Sales €605m Net debt -18.2% -4.8% LFL €6,940m €1,518m -5.6% -3.8% LFL -€479m vs. 2019 Net profit €301m -20.9% Dividend proposed at the 2021 AGM €2.14 in respect of FY 2020 After free allocation of 1 new share per 10 existing 9 02/25/2021 2020 Full-ye
Slide 10: Strong resilience and solidity of the Group in the face of the crisis
STRONG 02 RESILIENCE AND SOLIDITY OF THE GROUP IN THE FACE OF THE CRISIS
Slide 11: Sales and Results
1 Sales 2 Results 11 02/25/2021 2020 Full-year results
Slide 12: Development in sales 2019→2020
Development in sales 2019→ 2020 In €m 7,354 -276 -219 6,940 +81* Organic Currency growth effect Scope -3.8% -3.0% +1.2% -5.6% 2019 2020 *o/w €60m for StoreBound (5-month consolidation) 12 02/25/2021 2020 Full-year results
Slide 13: Currency impact on 2020 sales
Currency impact on 2020 sales In €m 0 -10 -20 -€219m -30 Q1: +€3m Q2: -€23m -40 Q3: -€90m Q4: -€109m -50 -60 EGP KRW CHF THB CAD ARS UAH TRY CNY RUB BRL GBP MXN COP PLN USD 13 02/25/2021 2020 Full-year results
Slide 14: Volatile activity, with a brisk H2 performance in the Consumer business
Volatile activity, with a brisk H2 performance in the Consumer business LFL development in sales (% vs. 2019) 10,0% 7.8% CONSUMER 3.6% 0,0% -0.5% PRO -3.8% -10,0% -10.6% -12.6% GROUP TOTAL -20,0% -30,0% -27.6% -30.7% -33.8% -40,0% % of 2020 sales H1 42% H2 58% FY 100% 14 02/25/2021 2020 Full-year re
Slide 15: Consumer
Consumer 15 02/20/2021 02/25/2021 2020 Full-year results
Slide 16: Consumer sales – LFL
Consumer sales – LFL 2020 total: €6,365m / -0.5% AMERICAS EMEA ASIA €876m/-0.2% €3,307m/+1.5% €2,182m/-3.4% + 8.5% + 9.1% + 5.2% -13.3% -9.0% -11.6% H1 H2 H1 H2 H1 H2 +7.8% sales growth in H2 16 01/21/2021 2020 Full-year results
Slide 17: Western Europe
Western Europe Sales Organic growth €2,406m -1.5% + 5.1 % - 11.0 % H1 H2 ▪ Good performances in H2, driven by almost all countries ▪ Solid momentum in all product categories, incl. WMF ▪ Strong acceleration in online sales vs. 2019 17 02/25/2021 2020 Full-year results
Slide 18: Other EMEA countries
Other EMEA countries Sales Organic growth €901m +9.6% + 18.6% -3.4% H1 H2 ▪ Outstanding recovery in sales in H2 ▪ Penalizing currency effects, offset in part by price increases ▪ Momentum largely propelled by e-commerce and the roll-out of our DTC activities ▪ Performances driven by versatile and ro
Slide 19: North America
North America Sales Organic growth €622m -0.3% + 3.7% -6.9% H1 H2 ▪ Performances fueled by Cookware (T-Fal, All-Clad, Imusa) ▪ Acceleration in e-commerce vs. exclusive offline distribution ▪ StoreBound integration: annual sales > $120m 19 02/20/2021 02/25/2021 Presentation titleresults 2020 Full-yea
Slide 20: South America
South America Sales Organic growth €254m +0.1% + 17.8% -23.7% H1 H2 ▪ Strong pick-up in sales in H2, notably driven by : ▪ Stepped-up e-commerce ▪ Good season for fans (growth >+20% LFL) ▪ Robust momentum in electrical cooking appliances ▪ Sales penalized by weakening currencies 20 02/25/2021 02/25/
Slide 21: China
China Sales Organic growth €1,626m -6.1% + 3.5% -14.4% H1 H2 ▪ Contrasted market between solid momentum in e- commerce vs. decline in the physical trade ▪ 2020 Cookware sales penalized by the closure of the Wuhan plant in H1 ▪ Small electrical appliance sales driven by food preparation 21 02/25/2021
Slide 22: Other Asian countries
Other Asian countries Sales Organic growth €556m +5.2% + 10.1% -0.9% H1 H2 ▪ Good overall performances in the region, particularly owing to the acceleration in e-commerce ▪ Japan: sales driven by electrical cooking and Cookware ▪ South Korea: extended offering and product listing gains 22 02/25/2021
Slide 23: Development in sales per product line
Development in sales per product line 15,0% 2020 sales growth, LFL Annual Consumer sales: €6,365m, -0.5% LFL 10,0% 5,0% Food Home preparation 0,0% comfort Electrical cooking Personal -5,0% Home care care Beverage Cookware -10,0% LKA* Linen care -15,0% *Large Kitchen Appliances 23 02/25/2021 2020 Ful
Slide 24: Development in sales per product line (H2)
Development in sales per product line H2 Consumer sales: €3,756m, +7.8% LFL 25,0% H2 2020 sales growth, LFL 20,0% 15,0% Food Home preparation comfort 10,0% Home care Electrical cooking 5,0% Personal Cookware care Beverage 0,0% LKA* -5,0% Linen care -10,0% *Large Kitchen Appliances 24 02/25/2021 2020
Slide 25: Professional
Professional 25 02/20/2021 02/25/2021 Presentation titleresults 2020 Full-year
Slide 26: Professional
Professional Sales Organic growth €575m -30.7% -27.6% -33.8% H1 H2 ▪ Sales down significantly, equipment and maintenance/service ▪ Unfavorable comparatives in Professional Coffee Machine (PCM) ▪ HORECA industry severely hit by health restrictions 26 02/25/2021 2020 Full-year results
Slide 27: Sales and Results
1 Sales 2 Results 27 02/25/2021 2020 Full-year results
Slide 28: Operating Result from Activity (ORfA)
Operating Result from Activity (ORfA) In €m 2019 2020 Δ Δ LFL Sales 7,354 6,940 -5.6% -3.8% ORfA 740 605 -18.2% -4.8% Op. margin 10.1% 8.7% -1.4 pt 28 02/25/2021 2020 Full-year results
Slide 29: ORfA bridge, 2019 to 2020
ORfA bridge, 2019 ➔ 2020 In €m 740 -126 705 +23 -109 +9 -1 +60 605 +9 Volumes Price COGS Growth Administrative Currencies Scope Mix drivers & commercial effect expenses 2019 2020 2020 LFL 29 02/25/2021 2020 Full-year results
Slide 30: Growth drivers
Growth drivers Advertising and marketing Half-year phasing In €m 2019 2020 ~+€50m Innovation 267 240 Advertising 461 472 and marketing Total growth drivers 728 712 ~-€40m H1-2020 vs. H1-2019 H2-2020 vs. H2-2019 Innovation: gross amount, before French research tax credit and capitalized costs 30 02/2
Slide 31: Operating profit
Operating profit 2019 2020 Δ% In €m ORfA 740 605 -18.2% Statutory and discretionary employee -37 -24 profit-sharing Other operating income and expense -82 -78 Operating profit 621 503 -18.9% 31 02/25/2021 2020 Full-year results
Slide 32: Net profit
Net profit In €m 2019 2020 Δ% Operating profit 621 503 -18.9% Financial result -61 -60 Tax -131 -94 Non-controlling interests -49 -48 Net profit 380 301 -20.9% 32 02/25/2021 2020 Full-year results
Slide 33: Simplified balance sheet
Simplified balance sheet 31/12/2019 31/12/2020 Δ €M In M€ Tangible fixed assets 4,263 4,250 - 13 Operating WCR 1,215 848 - 367 Total capital employed 5,478 5,098 - 380 Equity 2,628 2,735 + 107 Provisions 423 454 + 31 Other current assets and liabilities 430 391 - 39 Net financial debt 1,997* 1,518*
Slide 34: Change in Operating WCR
Change in Operating WCR 2019 2020 €m % Sales €m % Sales €367m WCR improvement mainly due to: Receivables 1,017 13.8% 841 12.1% ▪ A change in business model with a retailer in China Inventories 1,189 16.2% 1,212 17.4% ▪ Favorable seasonality effects on receivables and payables Payables - 991 - 13.5%
Slide 35: Cash flow generation/Free cash flow
Cash flow generation/Free cash flow In €m +299 -274 Investments Chg. Operating -194 WCR +69 +246 Tax and Chg. Non interest operating WCR and others +752 Amortization/ Statutory and +605 discretionary +851 employee profit- sharing ORfA Adjusted Free cash flow EBITDA 35 02/25/2021 2020 Full-year resul
Slide 36: Change in debt
Change in debt In €m 1,997 Free cash flow Currencies 1,518 -752 -17 +101 +189 Dividends Acquisitions and other non operating Net debt Net debt end-2019 end-2020 36 02/25/2021 2020 Full-year results
Slide 37: Healthy and well-balanced financing structure
Healthy and well-balanced financing structure Confirmed undrawn credit lines 71 ~€1.3bn ▪ Diversified sources of Cash & equiv. ~€2.4bn financing (Bonds, Schuldschein, ORNAE, NEU MTN, NEU CP…) 1,601 ▪ No financial covenants 66 52 43 ▪ New €500m bond issue, 535 57 539 502 June 2020 (maturing 2025) 50
Slide 38: Financial ratios
Financial ratios *excl. IFRS 16 2.8 2.4 2.1 1.9 1.8 1.3 1.2 1.9* 1.6* 1.1 1.0 1.0 0.9 0.7 0.8 0.6 0.5 0.3 0.4 0.3 0.3 0.6 0.1 0.2 10 11 12 13 14 15 16 17 18 19 20 Net debt/Adjusted EBITDA Net debt/Equity Ratios at 12/31 38 02/25/2021 2020 Full-year results
Slide 39: Projects continued
03 PROJECTS CONTINUED
Slide 40: Digital First, Acquisitions, Sustainable approach, Product innovation
1 Digital First 2 Acquisitions and interest taken 3 Sustainable approach 4 Product innovation 40 02/25/2021 2020 Full-year results
Slide 41: Digital First
Digital First Livestreaming Virtual launches DTC E-commerce brand.com 35% of sales Market places Digital investments ~60% of media investments MORE CLOSER to consumers DIGITAL M&A, stakes taken StoreBound, ChefClub Chefs Influencers 41 02/25/2021 2020 Full-year results
Slide 42: Substantial e-commerce growth in 2020
Substantial e-commerce growth in 2020... Pure players Others Eurasia: 35%, +10 pts E-Commerce Market places China: 62%, +9 pts Offline Mass retail 35% of sales Russia: 40%, +20 pts 65% +8 pts Click&Mortar Germany, Brazil, Poland: vs. 2019 +10 pts Group retail DTC online Specialists Traditional Group
Slide 43: Bolstered by major online events
… bolstered by major online events... Livestreaming Moulinex, France G6 virtual launch, South Korea Double 11, China Livestreaming Krups, France 43 02/25/2021 2020 Full-year results
Slide 44: Increased presence with chefs and influencers
... and an increased presence with our ambassadors: Chefs and influencers Brazil + 40 countries Atelier De Roxane, @latelierderoxane, Luderchris, France @luderchris, Germany Alice Trewinnard, @alicetrewinnard, Elif Tokdemir, Portugal @eliftokdemir, Turkey Czech Republic Australia Daniel Marin Thiago
Slide 45: Development of online Direct to Consumer
Development of online Direct to Consumer... ~100 online DTC points of sale at end-2020 +30 over the year 45 02/25/2021 2020 Full-year results
Slide 46: Roll-out of brand.com and marketplaces
… via roll-out of brand.com and marketplaces … 46 02/25/2021 2020 Full-year results
Slide 47: Leveraging our store network
… while continuing to leverage our store network ▪ ~1,300 stores worldwide, o/w 620 excl. China c. 30% of WMF sales ➔ 50 openings in 2020 (net, excl. China) ▪ Home&Cook, WMF, Zahran, Supor Lifestores... ▪ Around 50 million visitors per year, excl. Supor GERMANY ▪ ~6% of Group sales EGYPT COLOMBIA +6
Slide 48: Digital First, Acquisitions, Sustainable approach, Product innovation
1 Digital First 2 Acquisitions and interest taken 3 Sustainable approach 4 Products innovation 48 02/25/2021 2020 Full-year results
Slide 49: Opening-up to new business models (1/2)
Opening-up to new business models (1/2) SEB Alliance investment ▪ Leader in the production and distribution of cooking content ▪ Online recipes with communities, multiplatform ▪ Wide geographic coverage: Europe, US, China ▪ Launch in H1 2021 of a range of products under the "Chefclub by Tefal" brand
Slide 50: Opening-up to new business models (2/2)
Opening-up to new business models (2/2)… Majority stake in StoreBound Unrivaled know-how in digital marketing ▪ Expertise in community management ➔ Product development ➔ Marketing ▪ Priority to the consumer experience Key figures > 1 million Instagram followers Important partnerships (brands, chefs,
Slide 51: Exploring new consumer needs
... and exploring new consumer needs Micro-filtered water fountains for companies and restaurants + reusable New-generation electrically-assisted containers bike No distance to cover between the Exclusive industrial partnership with source and the place of consumption Angell Bike ➔ Industrialization
Slide 52: Digital First, Acquisitions, Sustainable approach, Product innovation
1 Digital First 2 Acquisitions and interest taken 3 Sustainable approach 4 Products innovation 52 02/25/2021 2020 Full-year results
Slide 53: Continuing our responsible approach in 2020 (1/2)
Continuing our responsible approach in 2020 (1/2) Launch in France in 2020, roll-out in Professional insertion workshop in other European countries as of 2021 Paris Repair packages at a much lower cost Repair of Small electrical appliances than product replacement (< 40%) Appliance rental service Su
Slide 54: Continuing our responsible approach in 2020 (2/2)
Continuing our responsible approach in 2020 (2/2) 6 sites equipped with solar panels: Development of the Good Design Campus Ecully, Is-sur-Tille and Pont-Evêque (France), Netherlands’ market company, Playbook with APF France Handicap Montebello (USA) and Rionegro (Colombia) since 2020 Launch of a de
Slide 55: Digital First, Acquisitions, Sustainable approach, Product innovation
1 Digital First 2 Acquisitions and interest taken 3 Sustainable approach 4 Product innovation 55 02/25/2021 2020 Full-year results
Slide 56: A product offering constantly adapted to meet new needs (1/3)
A product offering constantly adapted to meet new needs (1/3) Innovations in Professional Coffee WMF Expresso roll-out MyAppCafé coffee station at McDonald’s robot barista Schaerer Soul 56 02/25/2021 2020 Full-year results
Slide 57: A product offering constantly adapted to meet new needs (2/3)
A product offering constantly adapted to meet new needs (2/3) Innovations in Small Domestic Equipment ➔ Home-made cooking connected Cookeo Touch & Icompanion XL Touch Easy Fry Arno New pan in South Korea Kitchen Chef Supor & Steam Tender Fried Air Fryer Nespresso Atelier Krups Silent Hi-Speed Blende
Slide 58: A product offering constantly adapted to meet new needs (3/3)
A product offering constantly adapted to meet new needs (3/3) Innovations in Small Domestic Equipment ➔ Healthy home connected CUBE Robot X-PLORER SERIE 95 connected Rowenta Xforce vacuum cleaner (new generation) Clean & Steam, latest génération INTENSE PURE AIR Connect Rowenta 58 02/25/2021 2020 Fu
Slide 59: Conclusion & Outlook
GROUPE SEB 04 CONCLUSION & OUTLOOK
Slide 60: 2020: strong resilience and solidity of the Group in the face of the crisis
2020: strong resilience and solidity of the Group in the face of the crisis ▪ Fast adaptation and reaction to the economic context ▪ Continuation/acceleration in long-term structural projects ➔ Relevance of our business model, focused on the long term 60 02/25/2021 2020 Full-year results
Slide 61: 2021: overall environment remains uncertain
2021: overall environment remains uncertain ▪ Health conditions still unstable ➔ Restrictions of movement effective in many countries ➔ Very difficult situation for the HORECA industry, mostly “closed” ▪ Starting vaccination campaigns ▪ A currency environment which could remain volatile in 2021 ▪ Hi
Slide 62: Outlook: cautious optimism for 2021
Outlook: cautious optimism for 2021 ▪ Still limited visibility ▪ Solid start to the year for the Consumer business ➔ Sustained demand, in line with H2-2020 ➔ New product launches, strong advertising & marketing activation, stepped-up e-commerce ➔ Favorable comparable basis ▪ Assumption of a gradual
Slide 63: Appendixes
05 APPENDIXES
Slide 64: Free allocation of shares
Free allocation of shares Decision of the Board of Directors of February 23, 2021 ▪ Free allocation of ONE new share for TEN existing shares ▪ To all shareholders registered on March 2, 2021 ▪ Share capital increase on March 3, 2021 through the incorporation of reserves and/or retained earnings ▪ Cr
Slide 65: Recognized extra-financial performance
Recognized extra-financial performance ** Joined A* list Industry leader “Prime” status Score of 4.4/5 and +11 pts in 3 years member of the index 32 pts vs. company industry average *CDP: Carbon Disclosure Project **Entity of Ethifinance agency 65 02/25/2021 2020 Full-year results
Slide 66: Breakdown of 2020 sales by region
Breakdown of 2020 sales by region Other Asian countries 9% Western Europe 39% China 24% €6,940m -3.8% LFL South America 4% Other countries EMEA North America 13% 11% 66 02/25/2021 2020 Full-year results
Slide 67: Top countries
Top 20 countries TOP 10 COUNTRIES FRANCE RUSSIA Colombia USA Poland JAPAN Ukraine Turkey South Korea BRAZIL Mexico CHINA Canada ITALY Belgium Austria NETHERLANDS United Kingdom GERMANY SPAIN Consumer sales LFL 67 02/25/2021 2020 Full-year results
Slide 68: 2020 sales by region
2020 sales by region In €m Q4 2020 2019 2020 As reported 2020 LFL LFL EMEA 3,339 3,307 -1.0% +1.5% +7.0% Western Europe 2,442 2,406 -1.5% -1.5% +2.5% Other countries 897 901 +0.4% +9.6% +19.7% AMERICAS 915 876 -4.2% -0.2% +6.3% North America 589 622 +5.7% -0.3% -0.8% South America 326 254 -22.1% +0.
Slide 69: 2020 quarterly sales
2020 quarterly sales In €m Q1.. Q2 H1 Q3 9m Q4 2020 EMEA 641 631 1,272 846 2,118 1,189 3,307 Western Europe 445* 475* 920* 610* 1,530* 876 2,406 Other countries 196* 156* 352* 236* 588* 313 901 AMERICAS 149 149 298 286 584 292 876 North America 97 112 209 208 417 206 622 South America 52 37 89 78 16
Slide 70: 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 71: 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 72: Agenda: 2021 key dates
2021 key dates AGENDA April 22 | after market closes Q1 2021 sales and financial data May 20 | 3:00 p.m. Annual general meeting July 23 | before market opens H1 2021 sales and results October 26 | after market closes Nine-month 2021 sales and financial data 72 02/25/2021 2020 Full-year results