Seb Sa · EURONEXT:SK
Seb Sa — Groupe SEB — H1 2021 Earnings Presentation
44 slides from Seb Sa's earnings presentation, Jul 23, 2021
Slide 1: First-Half 2021 Sales and Results
FIRST-HALF 2021 SALES AND RESULTS Ecully | July 23, 2021 Click here to listen to our webcast or find us at www.groupeseb.com
Slide 2: Note
FIRST-HALF 2021 SALES AND 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 trend
Slide 3: Summary
S U M M A RY 1. An excellent half-year 2. First half-year activity 3. 2021 issues & Outlook 4. Appendixes 3 23/07/2021 First-half 2021 sales and results
Slide 4: An Excellent Half-Year
01 AN EXCELLENT HALF-YEAR
Slide 5: An uncertain overall environment, but buoyant markets
An uncertain overall environment, but buoyant markets ▪ COVID-19, continued: the crisis persists ▪ Ongoing good momentum for small domestic equipment in H1 2021 ▪ Gradual recovery in the Professional market starting in Q2 ▪ Headwinds • Unprecedented inflationary tensions in the supply chain • Curren
Slide 6: Key figures at end-June 2021
Key figures at end-June 2021 Operational Result from Activity Sales €320m Net debt X 3.1 €3,610m €1,850m +23.9% +26.3% LFL -€235m vs. 30.06.2020 Net profit €151m vs. €3m in H1 2020 6 23/07/2021 First-half 2021 sales and results
Slide 7: First-half 2021 sales
First-half 2021 sales Sales €3,610m +23.9% +26.3% LFL Consumer Professional €3,319m €290m +27.3% +29.6% LFL -5.1% -1.7% LFL 7 23/07/2021 First-half 2021 sales and results
Slide 8: Consumer business
Q1 2021 Q2 2021 H1 2021 H1 2021 as Growth vs LY % LFL LFL LFL reported Consumer business Consumer +39.1% + 20.6% +29.6% +27.3% Sales €3,319m +27.3% +29.6% LFL ▪ Persistent strong demand for small domestic equipment ▪ Promotional pressure remaining moderate ➔ Price-mix holding up firm ▪ Sales growing
Slide 9: Professional business
Q1 2021 Q2 2021 H1 2021 H1 2021 as Growth vs LY % LFL LFL LFL reported Professional business Professional -26.2% +34.2% -1.7% -5.1% Sales €290m -5.1% -1.7% LFL ▪ Q1 negatively impacted by: • Hospitality and catering sector at a standstill • Demanding 2020 comparatives ▪ Return to growth in Q2: • Bet
Slide 10: First Half-Year Activity
02 FIRST HALF-YEAR ACTIVITY
Slide 11: Sales and Results
1 Sales 2 Results and financial situation 11 23/07/2021 First-half 2021 sales and results
Slide 12: Change in sales - H1 2020 to 2021
Change in sales - H1 2020 → 2021 In €m + 768 - 125 + 53 3,610 2,914 Organic Currency growth effect StoreBound +26.3% -4.3% +1.8% +23.9% 2020 2021 12 23/07/2021 First-half 2021 sales and results
Slide 13: Currency impact on H1 2021 sales
Currency impact on H1 2021 sales In €m 5 0 -5 -10 -15 -€125m -20 Q1 : -€81m -25 Q2 : -€44m -30 -35 ARS CNY TRY JPY SEK PLN EGP AUD THB CHF UAH BRL USD RUB MXN COP Others 13 23/07/2021 First-half 2021 sales and results
Slide 14: Quarterly sales phasing by activity
Quarterly sales phasing by activity LFL sales growth (% vs. 2020) 50% +39.1% 40% +34.2% +30.9% +29.6% 30% +26.3% CONSUMER +20.6% +21.8% 20% 10% PRO 0% -1.7% -10% GROUP TOTAL -20% -30% -26.2% Q1 Q2 H1 Change 2021 vs 2019, +11.9% -29.2% +7.5% +13.5% -22.7% +8.9% +12.7% -25.8% +8.2% reported data 14 23
Slide 15: H1 2021 sales by geography, LFL - Consumer
H1 2021 sales by geography, LFL - Consumer CONSUMER SALES €3,319m / +29.6% AMERICAS EMEA ASIA €480m / +57.2% €1,662m / +34.9% €1,178m / +15.3% + 7,6 % +61.0% +41.5% +53.4% +29.1% +28.2 % +3.3% Q1 Q2 Q1 Q2 Q2 Q2 15 23/07/2021 First-half 2021 sales and results
Slide 16: Top 20 countries – Consumer revenue, H1 2021
Top 20 countries – Consumer revenue, H1 2021 EMEA +34,9% AMERICAS +57,2% ASIA +15,3% LFL ≥ 50% Turkey ITALY RUSSIA Canada BRAZIL Ukraine Romania Colombia USA FRANCE Netherlands Mexico ≥ 30% Belgium Poland JAPAN ≥ 10% GERMANY SPAIN United Kingdom SOUTH KOREA CHINA 16 23/07/2021 First-half 2021 sales
Slide 17: Western Europe
Q1 2021 Q2 2021 H1 2021 H1 2021 as Growth vs LY % LFL LFL LFL reported Western Europe Western Europe +34.7% +20.2% +27.2% +27.3% H1 sales: €1,171m, +27.2% LFL ▪ Persistent strong demand for small domestic equipment ➔ Widespread growth, all countries ▪ Restrictive health measures in Q1, eased at end
Slide 18: Other EMEA countries
Q1 2021 Q2 2021 H1 2021 H1 2021 as Growth vs LY % LFL LFL LFL reported Other EMEA countries Other EMEA +52.5% +55.0% +39.6% H1 sales: €490m, +55.0% LFL countries +57.1% ▪ Confirmed excellent general momentum ▪ Consolidated presence in the large markets: Russia, Ukraine, Central Europe, etc. ▪ Return
Slide 19: North America
Q1 2021 Q2 2021 H1 2021 H1 2021 as Growth vs LY % LFL LFL LFL reported North America North America +64.4% +38.9% +50.8% +66.6% H1 sales: €348m, +50.8% LFL ▪ Unprecedented growth in the United States driven by strong demand • Economic recovery, consumption incentives • Cookware as a key driver ➔ Reco
Slide 20: South America
Q1 2021 Q2 2021 H1 2021 H1 2021 as Growth vs LY % LFL LFL LFL reported South America South America +54.6% +96.5% +72.2% +48.5% H1 sales: €132m, +72.2% LFL ▪ Economic and health situation still a source of concern ▪ Very strong organic growth in South America • Driving categories: cookware and food p
Slide 21: China
Q1 2021 Q2 2021 H1 2021 H1 2021 as Growth vs LY % LFL LFL LFL reported China China +30.2% -0.1% +13.8% +13.1% H1 sales: €898m, +13.8% LFL ▪ H1 2021 sales +13.8% LFL, with reverse trends in Q1 and Q2 • Q2 sales stable vs. 2020, but return to growth vs. 2019 ▪ Recovery in cookware business vs. weak H1
Slide 22: Other Asian countries
Q1 2021 Q2 2021 H1 2021 H1 2021 as Growth vs LY % LFL LFL LFL reported Other Asian countries Other Asian H1 sales: €280m, +20.0% LFL countries +25.5% +14.8% +20.0% +14.3% ▪ Very good performance vs. resilient H1 2020 ▪ Japan: double-digit growth in Q1 and Q2 • Flagship products: Cookware (Ingenio, n
Slide 23: Sales change by product line
Sales change by product line 2021 H1 Sales LFL 70 % Home care 60 % 50 % Electrical Cookware Beverage LKA* cooking 40 % Food Personal preparation 30 % care Linen care 20 % Home comfort 10 % Professional 0% -10 % -20 % Consumer organic growth: +29.6% *LKA = Large Kitchen Appliances 23 23/07/2021 First
Slide 24: Sales and Results
1 Sales 2 Results and financial situation 24 23/07/2021 First-half 2021 sales and results
Slide 25: Operating Result from Activity (ORfA)
Operating Result from Activity (ORfA) In €m 2020 2021 Δ Δ LFL Sales 2,914 3,610 +23.9% +26.3% ORfA 103 320 x3.1 x3.4 ORfA. margin 3.5% 8.9% +5.3 pts +6.0 pts 25 23/07/2021 First-half 2021 sales and results
Slide 26: ORfA bridge: H1 2020 to 2021
ORfA bridge: H1 2020 ➔ 2021 In €m + 161 - 11 - 87 -3 353 - 36 +3 320 + 190 103 Volumes Price COGS Growth Administrative Currencies Scope Mix drivers & commercial effect expenses 2020 2021 2021 LFL 26 23/07/2021 First-half 2021 sales and results
Slide 27: Growth drivers – First half-year
Growth drivers – First half-year In €m 2019 2020 2021 Δ LFL Innovation* 128 117 127 +8.5% Marketing and 214 176 244 +43.5% advertising Total growth 342 293 371 +30.0% drivers *Innovation: gross amount, before French research tax credit and capitalized costs 27 23/07/2021 First-half 2021 sales and re
Slide 28: From ORfA to Net profit – First half-year
From ORfA to Net profit – First half-year In €m 2020 2021 Operating Result from Activity (ORfA) 103 320 Discretionary and non-discretionary profit-sharing (5) (16) Other operating income and expense (40) (46) Operating profit 58 258 Net financial expense (29) (27) Tax (7) (53) Non-controlling intere
Slide 29: Simplified balance sheet
Simplified balance sheet 30/06/2020 31/12/2020 30/06/2021 In €m Tangible fixed assets 4,200 4,250 4,285 Operating WCR 1,168 848 1,128 Total assets to be financed 5,368 5,098 5,413 Equity 2,499 2,735 2,816 Provisions 424 454 438 Other current assets and liabilities 360 391 309 Net financial debt 2,08
Slide 30: Cash flow generation / Free cash flow
Cash flow generation / Free cash flow In €m 438 Chg. Operating WCR 320 + 118 - 279 Amortization/ Employee Investments profit-sharing - 104 Tax and interest Chg. non - 67 operating WCR - 98 and others ORfA Adjusted EBITDA - 24 Free cash flow 30 23/07/2021 First-half 2021 sales and results
Slide 31: Change in net debt
Change in net debt In €m - 16 1 850 + 147 Currencies Dividends + 134 1 518 + 67 Other non operating Free cash flow Net debt end 2020 Net debt end-June 2021 31 23/07/2021 First-half 2021 sales and results
Slide 32: Ratios at June 30
Ratios at June 30 Operating WCR as % of sales 21.1% 21.1% 20.2% 23.1% 19.0% 18.4% 19.1% 17.6% 16.8% 14.8% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Net debt/equity 0.7 0.5 0.4 0.4 0.4 1.2 0.3 1.0 1.0 0.8 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Net debt/adjusted EBITDA* 2.7 2.5 1.8
Slide 33: 2021 Issues & Outlook
03 2021 ISSUES & OUTLOOK
Slide 34: Supply chain issues: commodities and freight inflation
34 0 1000 2000 3000 4000 5000 23/07/2021 juil.-16 août-16 sept.-16 oct.-16 nov.-16 déc.-16 janv.-17 févr.-17 ➔ Price x20 to x50 mars-17 avr.-17 mai-17 juin-17 First-half 2021 sales and results juil.-17 août-17 sept.-17 Supply chain issues: oct.-17 nov.-17 déc.-17 ▪ Commodities inflation since mid-20
Slide 35: Stronger headwinds than anticipated at the end of April
…resulting in stronger headwinds than anticipated at the end of April Detailed headwinds for FY-2021 Estimate end-April Estimate end-July Components/raw materials €50m > €110m Freight €50m > €110m Currencies €40m ~ €30m Total impact on ORfA €140m > €250m Price increases in Q4-2021 35 23/07/2021 Firs
Slide 36: Outlook for 2021
Outlook for 2021 ▪ Excellent first half, Q2 better than expected ▪ Caution remains the watchword for the second half • Limited visibility on the Consumer business • Uncertainties over the pace of recovery for Professional Coffee ▪ In this context: • 2021 revenue growth assumption (as reported) revis
Slide 37: Appendixes
04 APPENDIXES
Slide 38: H1 sales
H1 sales In €m H1 2020 H1 2021 As Like-for- Q2 2021 reported like LFL EMEA 1,272 1,662 +30.7% +34.9% +28,2% Western Europe 920 1,171 +27.3% +27.2% +20.2% Other countries 352 490 +39.6% +55.0% +52.5% AMERICAS 298 480 +61.2% +57.2% +53.4% North America 209 348 +66.6% +50.8% +38.9% South America 89 132
Slide 39: Q1 sales
Q1 sales In €m Q1 2020 Q1 2021 As reported LFL EMEA 641 870 +35.8% +41.5% Western Europe 445 599 +34.6% +34.7% Other countries 195 271 +38.6% +57.1% AMERICAS 149 243 +63.1% +61.0% North America 97 178 +82.6% +64.4% South America 52 65 +26.2% +54.6% ASIA 482 609 +26.3% +29.1% China 365 468 +28.3% +30
Slide 40: Q2 sales
Q2 sales In €m Q2 2020 Q2 2021 As reported LFL EMEA 631 791 +25.4% +28.2% Western Europe 475 572 +20.4% +20.2% Other countries 156 219 +40.7% +52.5% AMERICAS 149 237 +59.3% +53.4% North America 112 170 +52.6% +38.9% South America 37 67 +79.1% +96.5% ASIA 556 568 +2.1% +3.3% China 429 430 +0.1% -0.1%
Slide 41: H1 2021 sales by region
H1 2021 sales by region Other Asian countries Emerging markets Mature markets 8% 47% 53% Western Europe 37% China 25% €3,610m +26.3% LFL South America 4% Other EMEA countries 14% North America 12% 41 23/07/2021 First-half 2021 sales and results
Slide 42: 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 43: 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 44: Agenda: next key dates
Next key dates August 6 | 10:00 am (Paris time) Ordinary General Meeting AGENDA October 26 | after market closes 9-month 2021 sales and financial data 44 23/07/2021 First-half 2021 sales and results