V-zug Holding Ltd · SIX:VZUG
V-zug — FY2022 Earnings Presentation
50 slides from V-zug's earnings presentation, Mar 15, 2023
Slide 1: V-ZUG Group – Full-year Results 2022
V-ZUG Group – Full-year Results 2022 15 March 2023
Slide 2: V-ZUG
V-ZUG In 2022, our customer focus remained highest priority despite adverse circumstances such as supply bottlenecks and drastically increasing purchase prices.
Slide 3: Agenda
Agenda 1. Overview 2. Strategic Transformation 3. Sustainability 4. Financial Information 2022 5. Outlook 6. Investment Case 7. Q&A
Slide 4: Overview: Full year 2022 at a glance
1. Overview: Full year 2022 at a glance Adverse circumstances are reflected in the annual results 2022 – We remain ambitious and determined A tough financial year Strategic transformation on track Sustainability – one step further ▪ Net sales on previous year level ▪ Evolution of the product portfol
Slide 5: Overview: Main challenges in 2022
1. Overview: Main challenges in 2022 Operations with challenges in supply chains and elevated cost levels ▪ Disruptions in supply chains – in Q2 2022, situation deteriorated significantly due to COVID-19 lockdown in Shanghai area. Situation started easing as of Q3 2022. ▪ Lack of availability – caus
Slide 6: Overview: Main challenges in 2022
1. Overview: Main challenges in 2022 Purchasing costs increase faster than sales prices led to a negative impact on the operating result Schematic development of procurement cost and selling prices (06/2021 = reference point) ▪ Sales price increases introduced to the Swiss market: Oct. ‘21: + 4 %; A
Slide 7: Overview: Key figures 2022
1. Overview: Key figures 2022 Continued growth despite disruptions in supply chain Net sales in CHF million Net sales1) by region in CHF million International: FX-neutral net sales 700 37.5 15.2 % 18.4 % + 33.1 % 46.9 growth: + 24.2 % 600 11.3 % 11.8 % + 15.7 % 32.3 500 + 19.1 % 400 636.3 519.5 300
Slide 8: Agenda
Agenda 1. Overview 2. Strategic Transformation 3. Sustainability 4. Financial Information 2022 5. Outlook 6. Investment Case 7. Q&A
Slide 9: Continued evolution of our premium product portfolio
Continued evolution of our premium product portfolio
Slide 10: PowerSteam
PowerSteam
Slide 11: Grand CombiSteamer
Grand CombiSteamer
Slide 12: CombiCookTop
CombiCookTop
Slide 13: Refresh Butler
Refresh Butler
Slide 14: Strengthening the V-ZUG brand
Strengthening the V-ZUG brand
Slide 15: V-ZUG Studio Zug
| | V-ZUG Studio Zug
Slide 16: Strengthening the V-ZUG brand: Brand Monitor
2. Strategic Transformation: Strengthening the V-ZUG brand Brand Monitor: Consideration in favour of V-ZUG by a wide margin Q: If you had to buy a kitchen or laundry appliance for your home today, which brand would be your first choice? And which would be your second choice? 2022 vs. 2021 1st and 2n
Slide 17: Strengthening the V-ZUG brand: quality, design, price performance
2. Strategic Transformation: Strengthening the V-ZUG brand V-ZUG gains substantially in quality, design and price performance ratio – otherwise stable development Q: You have indicated that when buying a kitchen or laundry appliance, V-ZUG would be your first choice. What are the reasons for this? Q
Slide 18: Seize opportunities in International Markets
Seize opportunities in International Markets
Slide 19: V-ZUG booth at Salone Del Mobile Milano
V-ZUG booth at Salone Del Mobile Milano
Slide 20: V-ZUG Studio London
V- ZUG Studio _ | London | |
Slide 21: V-ZUG Studio Paris
V-ZUG Studio Paris
Slide 22: V-ZUG Studio Singapore
V-ZUG V-ZUGStudio Studio Singapore Singapore vzug.com
Slide 23: Development of platforms for new products and services
Development of platforms for new products and services including digitalisation of products and processes
Slide 24: Strategic Transformation: Digital
2. Strategic Transformation: Digital Digital solutions further enhanced ▪ V-ZUG App: Based on a new technology, the V-ZUG app is evolving into a life companion that goes beyond pure IoT use-cases ▪ V-Kitchen: Growing partner network with strong brands and constantly increasing user base ▪ V-Connect:
Slide 25: Site transformation
Site transformation
Slide 26: Slide 26
Slide 27: Slide 27
Slide 28: Agenda
Agenda 1. Overview 2. Strategic Transformation 3. Sustainability 4. Financial Information 2022 5. Outlook 6. Investment Case 7. Q&A
Slide 29: Sustainability: operational CO2 emissions fell by 14.9%
3. Sustainability Operational CO2 emissions (scope 1 and 2) fell substantially by 14.9 % ▪ CO2-neutral for Scope 1 and 2 since 2020 (including compensation, V-Forest) − Existing reduction target set for scope 1 and 2: -80 % by 2030 (base year 2020, on track) − New reduction target set for scope 3: -
Slide 30: V-Forest in Scotland
V-Forest in Scotland vzug.com
Slide 31: Sustainability: delivered appliances by energy efficiency class
3. Sustainability Delivered appliances by energy efficiency class – old and rescaled – shows improved ▪ Old scale: 97 % of all delivered appliances with an energy rating A ▪ New scale: 63 % of all delivered appliances in the range of A – C (up from 58 % in 2021) ▪ As important as the label itself is
Slide 32: Sustainability: women in leadership positions
3. Sustainability Number of women in leadership positions increased by number ▪ 16 out of 80 colleagues across V-ZUG’s 3 leadership tiers are women. ▪ We expect to further increase the proportion of women in leadership positions. ▪ Proportion of women in overall workforce increased to 24.4 % (previo
Slide 33: Agenda
Agenda 1. Overview 2. Strategic Transformation 3. Sustainability 4. Financial Information 2022 5. Outlook 6. Investment Case 7. Q&A
Slide 34: V-ZUG Group – Key figures
4. Financial Information 2022 V-ZUG Group – Key figures ▪ Net sales impacted by delivery delays due to supply chain in CHF million FY 2022 FY 2021 1) disruptions. Net sales 636.3 631.3 0.8 % ▪ Net sales growth FX-neutral: 1.2 % EBITDA 42.7 94.7 -54.9 % ▪ Significant lower EBITDA and EBIT due to su
Slide 35: V-ZUG Group – Earnings under pressure
4. Financial Information 2022 V-ZUG Group – Earnings under pressure due to supply chain constraints and drastically higher purchasing cost Net sales EBITDA Operating result (EBIT) in CHF million in CHF million in CHF million 636.3 640 631.3 100 94.7 70 62.7 90 620 60 79.6 80 600 49.2 70 50 580 569.4
Slide 36: Household Appliances segment – Key figures
4. Financial Information 2022 Household Appliances segment – Key figures in CHF million FY 2022 FY 2021 1) ▪ Net sales development impacted by supply chain constraints: Net sales 636.3 631.3 0.8 % − Switzerland: CHF 519.5 million, -3.0 % Operating result (EBIT) 5.6 58.1 -90.3 % − International: CH
Slide 37: Real Estate segment – Key figures
4. Financial Information 2022 Real Estate segment – Key figures in CHF million FY 2022 FY 2021 ▪ Higher operating result related to refrigerator factory in Sulgen. Net sales ̶ ̶ ̶ ▪ Stable ROCE. Operating result (EBIT) 5.9 5.4 +7.8 % ROCE in % 1) 3.4 % 3.5 % -10 bp 1) EBIT of last 12 months / weig
Slide 38: V-ZUG Group – FTE, CAPEX and R&D expenses
4. Financial Information 2022 V-ZUG Group – FTE increase mainly in operations and international growth Total FTEs CAPEX R&D expenses as of 31 December 2022 incl. temps in CHF million in CHF million & in % of net sales 2500 80 70 74.3 2193 11.2 % 10.4 % 9.7 % 9.8 % 2080 70 1940 1999 60 2000 60 55.8 5
Slide 39: V-ZUG Group – Cash flow statement
4. Financial Information 2022 V-ZUG Group – Cash flow statement in CHF million FY 2022 FY 2021 ▪ Deteriorating free cash flow development from low Group net results and further build-up of Cash flow from operating activities 1.0 63.5 inventories. ▪ of which taxes paid -6.1 -6.4 Cash flow from invest
Slide 40: V-ZUG Group – Income statement per half year
4. Financial Information 2022 V-ZUG Group – Income statement per half year in CHF million H2 2022 H1 2022 H2 2021 H1 2021 Net sales 333.3 303.0 319.0 312.3 EBITDA 23.4 19.2 40.9 53.7 EBITDA in % of net sales 7.0 % 6.3 % 12.8 % 17.2 % Operating result (EBIT) 6.0 4.3 24.4 38.3 EBIT in % of net sales 1
Slide 41: V-ZUG Group – Balance sheet
4. Financial Information 2022 V-ZUG Group – Balance sheet in CHF million 31.12.2022 in % 31.12.2021 in % Cash and cash equivalents incl. securities 64.5 10.6 117.3 19.0 Other current assets 190.7 31.4 166.8 27.1 Current assets 255.2 42.0 284.1 46.1 Tangible assets 313.4 51.6 295.4 47.9 Financial & i
Slide 42: Dividend policy
4. Financial Information 2022 Dividend policy ▪ V-ZUG Holding AG pursues a dividend policy that is primarily based on the amount of distributable profit. ▪ In the medium to long term, the profit distribution ratio should be between 20 % and 40 % of the group’s net result. ▪ As communicated in contex
Slide 43: Agenda
Agenda 1. Overview 2. Strategic Transformation 3. Sustainability 4. Financial Information 2022 5. Outlook 6. Investment Case 7. Q&A
Slide 44: Cornerstones of V-ZUG's Strategy
5. Outlook Cornerstones of V-ZUG’s Strategy ▪ Strengthening of the V-ZUG brand ▪ Sharpening and expanding the market position in Switzerland ▪ Expansion in meaningful markets outside Switzerland - primarily in affluent metropolitan regions ▪ Site transformation: 60% footprint reduction in Zug and pr
Slide 45: Outlook: Mid-term targets confirmed
5. Outlook Mid-term targets confirmed Mid-term expectation Net sales 3 % annual organic growth International > 10 % annual organic growth net sales EBIT margin 10 – 13 % Dividends 20 to 40 % pay-out ratio vzug.com
Slide 46: Agenda
Agenda 1. Overview 2. Strategic Transformation 3. Sustainability 4. Financial Information 2022 5. Outlook 6. Investment Case 7. Q&A
Slide 47: Why invest in V-ZUG?
6. Why invest in V-ZUG? 1 2 3 4 5 Proven ability Market leader Established player in Ongoing ability to Sustainability to generate in Switzerland premium segment in lead innovations in as a key Unique double-digit with a unique and selected international the industry Selling Proposition EBIT margins
Slide 48: Agenda
Agenda 1. Overview 2. Strategic Transformation 3. Sustainability 4. Financial Information 2022 5. Outlook 6. Investment Case 7. Q&A
Slide 49: Q&A
Q&A
Slide 50: Disclaimer
Disclaimer ▪ V-ZUG Holding AG (including all its affiliates) has made great efforts to include accurate and up-to-date information in this document. However, we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this documen