Somfy SA — Investor Day (2017)
75 slides from Somfy SA's investor day presentation, 2017
Slide 1: Somfy Investor Day
SOMFY INVESTO
Slide 2: I. Introduction
I. INTRODUCTION JEAN GUILLAUME DESPATURE • Somfy’s vision • Strengths and history • Somfy today • A constantly-changing market • Believe & ACT!
Slide 3: Somfy's Vision
I. SOMFY’S VISION INSPIRING A BETTER WAY OF LIVING ACCESSIBLE TO ALL TO ADDRESS FUNDAMENTAL BENEFITS FOR THE BUILDING OCCUPANTS • comfort and well-being at any age • security of people and property • environmental preservation Somfy does so by … … creating innovative solutions … being present on fiv
Slide 4: A Company on the Move
I. A COMPANY ON THE MOVE MOTORIZATION AUTOMATION DIGITIZATION Entrepreneurial 1967: CREATION OF 1984: ACQUISITION BY 2002: SPIN-OFF FROM DAMART 2014: SPIN-OFF FROM EDIFY spirit SOMFY AT CLUSES DAMART 1969: First 1987: First advertising Push – Pull model subsidiaries campaign Industrial 2006: Opening
Slide 5: Somfy Today
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Slide 6: Somfy Today
I. SOMFY TODAY 2016 SALES 2016 SALES 2016 CURRENT REALIZED OUTSIDE FRANCE OPERATING RESULT 3 ACTIVITIES €1,131.7m +10.2% l-f-l growth 76% €177.7m 2 Business & Mkg Areas OPERATORS PRODUCED SINCE INCEPTION CONNECTED DEVICES 166,000,000 750,000 58 COUNTRIES PATENTS PATENTS SOMFY EMPLOYEES REGISTERED IN
Slide 7: A Worldwide Footprint
I. A WORLDWIDE FOOTPRINT France - Cluses - Poland Production site and research center Production site - Gray Production site Italie China - Schio - Ningbo Production site Production site - Galliera - Zhejiang Production site Production site Tunisia - Production site SOMFY© =7=
Slide 8: The Potential of Smart Home Markets
I. THE POTENTIAL OF SMART HOME MARKETS SMART HOME PENETRATION & INSTALLED BASE (EU AND NA / 2014-2020) Source: Berg Insight SOMFY© =8=
Slide 9: The Smart Home Environment
I. THE SMART HOME ENVIRONMENT HOME CONTROL ENTERTAINMENT APPLIANCES Stretching OUTDOOR INDOOR Garden Swimming pool PARTNERS Light Thermostat Air quality Verticals TERRACE WINDOW WINDOW ACCESS SURVEILLANCE ACCESS FRONT Exterior applications Interior applications MNGT DOOR Core Awning Rolling EVB Scre
Slide 10: Key Challenges
I. KEY CHALLENGES To succeed in its digital transformation, Somfy identified four major challenges to act upon by 2020… ... And has set itself four subsequent accelerations rolled-up into one strategic roadmap: BELIEVE & ACT! SOMFY© = 10 =
Slide 11: We Believe & ACT Closer to Our End-Users!
I. WE BELIEVE & ACT CLOSER TO OUR END-USERS! • Solutions based on specific use case scenarios • Understanding how data will be used • Business model evolution around services • Leveraging partnerships in a moving competitive environment • Disintermediation of the value chain • Company digitization a
Slide 12: We Believe & ACT Closer to Our End-Users!
I. WE BELIEVE & ACT CLOSER TO OUR END-USERS! Believe & ACT closer to our end-users... … Becoming the market’s preferred end-users brand … Accompanying them every step of their journey … With one seamless and consistent user experience … Offering a complete bi-directional product range & associated s
Slide 13: We Believe & ACT Bolder on the Interior Market!
I. WE BELIEVE & ACT BOLDER ON THE INTERIOR MARKET! 200 80% 180 70% 160 End Products (millions] 60% 140 120 ~ 50% 50% 100 40% 80 30% 60 20% 40 20 10% < 3% - 0% 2010 2015 2020 Exterior Window Applications Interior Window Applications EWA motorization rate IWA motorization rate SOMFY© = 13 =
Slide 14: We Believe & ACT Bolder on the Interior Market!
I. WE BELIEVE & ACT BOLDER ON THE INTERIOR MARKET! Believe & ACT bolder on the interior markets... … Leading with our key partners the emergence of mass markets … Offering innovative interiors solutions … Expanding our leadership on high-end residential and commercial markets SOMFY© = 14 =
Slide 15: We Believe & ACT Stronger on Operational Excellence!
I. WE BELIEVE & ACT STRONGER ON OPERATIONAL EXCELLENCE! Believe & ACT stronger on operational excellence … Striving for fully satisfied customers … Collectively optimizing processes and internal efficiency … Speeding up innovation and rising development standards … Establishing sustainable business
Slide 16: We Believe & ACT Better Together!
I. WE BELIEVE & ACT BETTER TOGETHER! Believe & ACT better together … Through empowerment and personal fulfillment … By developing our people … By growing sustainably and by giving back SOMFY© = 16 =
Slide 17: We Believe & ACT ...
I. WE BELIEVE & ACT ... STRONGER ON CLOSER TO OUR OPERATIONAL EXCELLENCE END USERS #CUSTOMERSATISFACTION #USEREXPERIENCE #OVERHEADSAGILITY #SOMFYBRAND #TIMETOMARKET #ENDUSERJOURNEY #BUSINESSMODEL #CONNECTIVITY BOLDER ON THE BETTER TOGETHER INTERIOR MARKET #SOMFYSPIRIT #MASSMARKET #EMPLOYEEJOURNEY #B
Slide 18: II. Innovation, a Key Pillar of Our Development Model
II. INNOVATION, A KEY PILLAR OF OUR DEVELOPMENT MODEL JEAN PASCAL REY • Consumer-focused innovation • An embedded process • Value creation • Results • Intellectual property
Slide 19: To Put Consumers at the Heart of Our Innovation
II. TO PUT CONSUMERS AT THE HEART OF OUR INNOVATION IDEATION ENHANCEMENT Ideas Generation Community of 1200 participants Concepts Enhancement VALIDATION Consumer Validation • A direct digital consumer touch point • An accelerator to gather consumer insights: >500 answers in 48 hours SOMFY© = 19 =
Slide 20: Innovation, an Embedded Process Within Somfy
II. INNOVATION, AN EMBEDDED PROCESS WITHIN SOMFY 2 New technical Customer Insights systems Trends 2 2 Competitive Landscape Opportunities 1 Product DISCOVERY development development Orthodoxies process Capabilities & Assets Technology CONSUMER INSIGHTS SOMFY© = 20 =
Slide 21: An Example of Breakthrough Innovation: Smart & Smooth Ecosystem
II. AN EXAMPLE OF BREAKTHROUGH INNOVATION: SMART & SMOOTH ECOSYSTEM SOMFY© = 21 =
Slide 22: Innovation of the Chain: Rolling Shutter Manufacturer
II. INNOVATION OF THE CHAIN THAT CREATES VALUE AT EACH STAGE ROLLING SHUTTER MANUFACTURER • Easier and faster assembly • Possibility to customize their offer • Traceability with embedded data SOMFY© = 22 =
Slide 23: Innovation of the Chain: Installer
II. INNOVATION OF THE CHAIN THAT CREATES VALUE AT EACH STAGE INSTALLER • No more setting • Additional services to consumer • Differentiation SOMFY© = 23 =
Slide 24: Innovation of the Chain: Consumer
II. AN INNOVATION THAT CREATES VALUE AT EACH STAGE OF THE CHAIN CONSUMER • Silence • Movement control • Connected SOMFY© = 24 =
Slide 25: Video
Building happiness INVESTOR DAY 2OT7 S2iiin =25- somry®
Slide 26: Innovation That Delivers Results
II. INNOVATION THAT DELIVERS RESULTS… • Smart & Smooth doubled the growth of the value segment • Higher consumer willingness to buy with price premium 15% price premium versus previous model SOMFY© = 26 =
Slide 27: Intellectual Property Positions Us Ahead of Competitors
II. …INTELLECTUAL AND POSITIONS US AHEAD OF COMPETITORS THROUGH PROPERTY • Top tier rating of French patent filing • Approx. 40 patents filed every year • Ahead of larger French companies SOMFY© = 27 =
Slide 28: III. Bolder on the Interior Market
III. BOLDER ON THE INTERIOR MARKET JEAN PASCAL REY • A huge growth potential • A truly global market • Levers to accelerate growth • Motorized and interiors solutions • How to make it happen
Slide 29: Interior Market: Huge Growth Potential
III. AINTERIOR MARKET HUGE GROWTH POTENTIAL STANDARD & CUSTOMIZED Curtains Roll-up blinds Venetian blinds 850m blinds & curtains CUSTOMIZED 140m blinds & curtains MOTORIZED SOLUTIONS 3.6m motorized blinds & curtains < 3% motorization rate SOMFY© = 29 =
Slide 30: A Truly Global Market
III. A TRULY GLOBAL MARKET 30 M 58 M A GROWING MARKET 52 M WITH A 14% 2011-15 CAGR 1M 1M 1,6M End products Motors SOMFY© = 30 =
Slide 31: Our Responsibility, as Leader, Is to Drive Motorized Market Growth
III. OUR RESPONSIBILITY, AS LEADER, IS TO DRIVE THE GROWTH OF THE MOTORIZED MARKET ++ M 3.6 M Today Tomorrow Expected growth SOMFY© = 31 =
Slide 32: 3 Main Levers to Accelerate Growth of the Interior Market
III. 3 MAIN LEVERS TO ACCELERATE GROWTH OF THE INTERIOR MARKET • Improve awareness of motorized solutions • Improve consumers’ accessibility to motorized solutions • Offer innovative interior solutions SOMFY© = 32 =
Slide 33: Improve Awareness of Motorized Solutions
III. IMPROVE AWARENESS OF MOTORIZED SOLUTIONS SOMFY© = 33 =
Slide 34: Improve Consumers' Accessibility to Motorized Solutions
III. IMPROVE CONSUMERS’ ACCESSIBILITY TO MOTORIZED SOLUTIONS • Leading the emergence of mass markets with our key partners: Example of Home Improvement stores (USA): • Expand our leadership on high-end residential and commercial markets SOMFY© = 34 =
Slide 35: Offer Innovative Interior Solutions
III. OFFER INNOVATIVE INTERIOR SOLUTIONS Enhance end-users’ interiors experience through: • Silence • Easy installation and ease of use with wirefree solutions • Connected homes for seamless management of privacy and sun tracking SOMFY© = 35 =
Slide 36: How Will We Make It Happen?
III. HOW WILL WE MAKE IT HAPPEN? • Accelerate R&D investments • Use full potential of our global manufacturing network • Leverage Somfy brand preference , as well as our commercial strength • Develop omni-channels with adapted solutions • Maintain consistent focus SOMFY© = 36 =
Slide 37: IV. Connected Home by Somfy
IV. CONNECTED VISION HOME BY SOMFY MARC WESTERMANN • Vision for the Smart Home • Market environment • Somfy in SmartHome • Myfox
Slide 38: Somfy Vision for the Smart Home
IV. SOMFY VISION FOR THE SMART HOME THE DIGITAL REVOLUTION IS TRANSFORMING THE HOME & BUILDING INDUSTRY TOWARDS A SERVICE-BASED, CONSUMER-FOCUSED MARKET SOMFY INVESTS IN THE SMART HOME TO ENTER A DIRECT RELATIONSHIP WITH ITS END- USERS AND TO DELIVER THEM: Security, protecting access to the home Com
Slide 39: A Transformation Under Way: Markets
IV. A TRANSFORMATION UNDER WAY: MARKETS NORTH AMERICA EUROPE Smart Homes Smart Homes 46.2 m 44.9 m CAGR $ +31% CAGR € +40% 12.7 m 5.3 m SOMFY <2% 2015 2020 2015 2020 Stats berg insights 2016 SOMFY© = 39 =
Slide 40: A Transformation Under Way: Habits
IV. A TRANSFORMATION UNDER WAY: HABITS 1 2 An installer is a user Experience is the driver (and vice versa) SOMFY© = 40 =
Slide 41: A Transformation Under Way: Playgrounds
IV. A TRANSFORMATION UNDER WAY: PLAYGROUNDS COMPLETE NEW SYSTEM HOUSING SaaS PLATFORM PRO CONSUMER ORIGINAL FITTING SINGLE RETROFIT / EQUIPMENT DIRECT RETAIL SOMFY© = 41 =
Slide 42: Somfy in the Smart Home Field
IV. SOMFY IN THE SMART HOME FIELD… COMPLETE NEW SYSTEM HOUSING SaaS PLATFORM AS A PARTNER PRO CONSUMER ORIGINAL FITTING SINGLE RETROFIT / EQUIPMENT DIRECT RETAIL SOMFY© = 42 =
Slide 43: #Connectivity
IV. #CONNECTIVITY 2020 2017 2010 2006 1998 SOMFY© = 43 =
Slide 44: #Connected Solutions
IV. #CONNECTED SOLUTIONS SECURITY COMFORT & ENERGY SAVINGS CORE NEW SOMFY© = 44 =
Slide 45: #BusinessModel
IV. #BUSINESSMODEL THE AVERAGE TAHOMA HOME > 12 connected objects RS 79% x8 RS Gate 9% Garage Blinds • Added value 10% x3,6 Blinds 14% • Project business Security 22% • Cross-sell EVB • Data-based services 16% x5 EVB Lighting 36% x4 devices Terrace Sensors 20% x2 awnings 24% x3,4 sensors 2016 figure
Slide 46: #TimeToMarket
IV. #TIMETOMARKET 30/10/2016 05/01/2017 03/04/2017 Q2 2017 Acquisition SOMFY© = 46 =
Slide 47: #UserExperience
IV. #USEREXPERIENCE Camera & Users & Integration On-demand Family Security Privacy Community with TaHoma Services SOMFY© = 47 =
Slide 48: V. Closer to Our Markets and Our Consumers
V. CLOSER TO OUR MARKETS AND OUR CONSUMERS FRANK SCHÄDLICH • A resilient business model • 3 levers to accelerate growth • Somfy brand • The end-user journey • Digitization
Slide 49: A Resilient Business Model Generating Sustainable Growth
V. AGENERATING RESILIENT BUSINESS MODEL SUSTAINABLE GROWTH EMEA sales* (€ millions) 900 800 700 600 500 400 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 CAGR +4.7% * Data based on customer location, in real terms, excluding Dooya CAGR +5.8% SOMFY© = 49 =
Slide 50: Accelerate Sales in Fast-Growing Countries
V. ACCELERATE SALES IN FAST-GROWING COUNTRIES EMEA sales - Fast-growing countries* (€ millions) 140 120 100 80 60 40 2010 2011 2012 2013 2014 2015 2016 CAGR 16/10: +11.0% * Eastern Europe + Middle East & Africa Data based on customer location, in real terms, excluding Dooya Weight in EMEA growth 16/
Slide 51: Enhance Our Mix
V. ENHANCE OUR MIX EMEA sales - Non-historical segments* (€ millions) 290 270 250 230 210 190 170 150 2010 2011 2012 2013 2014 2015 2016 * Interior + Access + Connected CAGR 16/10: +5.6% Data based on customer location, in real terms, excluding Dooya Weight in EMEA growth 16/10: 39% From 30% to 32%
Slide 52: Increase B2C Sales Through Short Channels
V. INCREASE B2C SALES THROUGH SHORT CHANNELS EMEA Short channels* (€ millions) 50 40 30 20 2010 2011 2012 2013 2014 2015 2016 CAGR 16/10: +11.2% * Short channels: DIY, e-retail, e-shops Weight in EMEA growth 16/10: 11% From 4.0% to 5.6% of EMEA sales SOMFY© = 52 =
Slide 53: We Are Entering Into Age 3 of Our Brand
V. WE ARE ENTERING INTO AGE 3 OF OUR BRAND MOTORIZATION AUTOMATION DIGITIZATION WHAT SOMFY DOES Connected WHAT SOMFY BRINGS Removing Comfort Comfort, Security effort and security & Energy-saving Shutter / Awning The House The Occupant SOMFY’S TERRITORY Tubular Motors Home motion Solutions Connected
Slide 54: The Somfy Brand Promise
V. THE SOMFY BRAND PROMISE “Your Partner for Peace of Mind” At Somfy, our mission is to give everyone the power to enjoy peace of mind in their daily life by creating connected solutions for Access, Openings and Security. Building happiness SOMFY© = 54 =
Slide 55: Intensify Brand Awareness in Key Countries
V. INTENSIFY BRAND AWARENESS IN 20 KEY COUNTRIES Belgium The Netherlands 23% 44% France Germany 82% 29% Switzerland Poland 37% 31% Spain Greece 40% 63% Italy Israël 36% 46% SOMFY© = 55 =
Slide 56: Brand Awareness Examples in France vs Poland
V. BRAND AWARENESS EXAMPLES IN FRANCE VS POLAND FRANCE BRAND AWARENESS POLAND BRAND AWARENESS 90 35 80,0 82,0 80 68,0 31 30 28,6 70 73,0 65,0 75,0 60 25 Assisted, % Assisted, % 50 20 40 15 14,5 30 10 8,8 20 6,8 10 5 1,9 0 0 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 SOMFY© = 56 =
Slide 57: The Seamless, Unique End-User Journey
V. ATHESEAMLESS, END-USER AT THE CENTER UNIQUE END-USER JOURNEY SOMFY© = 57 =
Slide 58: Transformation Program to Digitize Our Front Office
V. ATOTRANSFORMATION PROGRAM DIGITIZE OUR FRONT OFFICE IN 3 YEARS SOMFY© = 58 =
Slide 59: Full Scope Worldwide Roll-out of Sales Force by End 2018
V. FULL SCOPE WORLDWIDE ROLL-OUT OF SALES FORCE BY END 2018 2015 2016 2017 – 2018 FRAMING BUILD & PILOT WW ROLL-OUT Worldwide Roll-out Pilot in Switzerland Build Solution Selection process Golden rules Change management SOMFY© = 59 =
Slide 60: Main Expected Benefits
V. MAIN EXPECTED BENEFITS EMPOWER LOCAL TEAMS TOWARD REAL 360 ° COOPERATION HARMONIZE & INCREASE EFFICIENCY IN ALL FRONT OFFICE PROCESSES ENHANCE OUR CUSTOMER-CENTRIC MANAGERIAL PRACTICES PUTTING CUSTOMER SATISFACTION IN OUR DAY-TO-DAY ROUTINES SOMFY© = 60 =
Slide 61: VI. Performance
VI. PERFORMANCE PIERRE RIBEIRO • 2016 key figures • Sales • Sales breakdown • Current operating result • Net financial debt • Sales trend • Profitability trend • Financial position
Slide 62: 2016 Key Figures
VI. 2016 KEY FIGURES SALES €1,132m CURRENT OPERATING MARGIN 15.7% NET PROFIT €143m CASH FLOW €182m NET FINANCIAL SURPLUS €15m SOMFY© = 62 =
Slide 63: Sales
VI. SALES Consolidated data (€ millions) 2015 2016 2015/16 change Sales 1,061.1 1,131.7 +6.7% A FURTHER YEAR OF GROWTH +10.2% like-for-like A PARTICULARLY BUOYANT START in 2016 TO THE YEAR vs +5.6% 1,131.7 in 2015 1,061.1 +6.7% STRONG LEVEL OF ACTIVITY 981.7 +8.1% MAINTAINED IN THE SECOND 544.2 Q4 +
Slide 64: Sales Breakdown
VI. SALES BREAKDOWN +5.2% Northern Europe SOLID HISTORICAL MARKETS, SUCH AS GERMANY, FRANCE, SPAIN, +16.0% +6.9% +7.2% ITALY, BENELUX AND THE UNITED Central and +19.3% France Germany STATES. Eastern Europe +18.6% +7.9% +15.7% China NEW TERRITORIES TAKING OFF, North America Southern Europe SUCH AS CH
Slide 65: Current Operating Result
VI. CURRENT OPERATING RESULT Change Consolidated data (€ millions) 2015 2016 2015/16 Current operating result 165.6 177.7 +7.3% UNFAVORABLE CHANGES TO THE Current operating margin (COR/sales) 15.6% 15.7% +0.1 bp PRODUCT MIX AND RAW MATERIAL PRICES OFFSET BY Data in € millions 0.0 PRODUCTIVITY GAINS
Slide 66: Net Financial Debt
VI. NET FINANCIAL DEBT Data in € millions 26.7 CHANGE IN WORKING CAPITAL 64.5 REQUIREMENTS, INVESTMENTS - AND DIVIDEND DISTRIBUTION 3 COVERED BY CASH FLOW - 181.7 9 39.1 2 . 6.6 4. 1 6 35.6 4.2 1.2 14.6 Net cash Change Investments Dividends Acquisitions Recognition Miscellaneous Net cash surplus Cas
Slide 67: Sales Trend
VI. SALES TREND Evolution of sales Giga and Garen exits 4.8% SALES INCREASE ON AN Integration ORGANIC BASIS BETWEEN 2005 1200,0 Integration of Giga of Garen Integration AND 2016 1000,0 of Dooya 22% Integration of Pujol and O&O Full year effect of BFT integration CONTRIBUTION OF NEW 800,0 ACQUISITION
Slide 68: Profitability Trend
VI. PROFITABILITY TREND DILUTIVE EFFECT OF ACQUISITIONS ON THE Evolution of current operating result and margin MARGIN RATE, BUT POSITIVE IMPACT ON 200 25 THE GROWTH RATE 180 160 20 CURRENT OPERATING MARGIN (COR/S) ABOUT 19% ON AVERAGE BEFORE THE 140 ECONOMIC CRISIS, 17% DURING THE CRISIS, 120 15 AN
Slide 69: Profitability Trend
VI. PROFITABILITY TREND Evolution of current operating margin and return on capital employed BACK TO A PURE PLAYER STATUS 25 HIGH LEVEL OF ROCE ON THE CORE BUSINESS (ABOUT 22% IN 2016) 20 DECREASE OF THE ROCE IN THE LAST YEAR 15 MAINLY DUE TO THE INTEGRATION OF NEWLY-ACQUIRED COMPANIES (MYFOX, Spin-
Slide 70: Financial Position
VI. FINANCIAL POSITION VERY HEALTHY FINANCIAL BASIS, WITH A CASH SURPLUS AND A STRONG RECURRING CASH FLOW SIGNIFICANT FINANCING CAPACITY, HENCE SUBSTANTIAL RESOURCES FOR NEW ACQUISITIONS Case scenario (simulation based on hypothetical, but plausible assumptions) • Acquisition of 5 companies represen
Slide 71: VII. Conclusion
VII. CONCLUSION JEAN GUILLAUME DESPATURE
Slide 72: Appendix
ENDIX SOMEY INVESTOR DAY
Slide 73: Appendix: Definitions
APPENDIX 1 DEFINITIONS CAGR CAGR means Compound Annual Growth Rate Current operating margin Current operating margin corresponds to current operating result as a proportion of sales (COR / Sales). Return On Capital Employed (ROCE) Return On Capital Employed (ROCE) corresponds to the return on capita
Slide 74: Appendix: Sales by Customer Location
APPENDIX 2 SALES BY CUSTOMER LOCATION Sales growth figures for 2016 have been determined based on sales achieved by customer location. This presentation is supplemented by our segment reporting pursuant to IFRS 8, which is based on the geographic regions in which our assets are located, namely the E
Slide 75: Somfy Investor Day
SOMFY INVESTO