V-zug Holding Ltd · SIX:VZUG
V-zug — FY2020 Earnings Presentation
40 slides from V-zug's earnings presentation, March 2021
Slide 1: V-ZUG Group Presentation Year-End Closing 2020
V-ZUG Group V-ZUG Group - Year-end result 2020 Presentation Year-End Closing 2020 Analyst- and Investor-Presentation vzug.com
Slide 2: Agenda
Agenda Our Vision Bringing simplicity into your home and creativity into your kitchen. 1. V-ZUG Group – Overview 2. Our Business 3. Sustainability 4. Financial Information FY 2020 5. Investment Case Q&A vzug.com 2
Slide 3: 1. V-ZUG Group – Overview
1. V-ZUG Group – Overview vzug.com
Slide 4: V-ZUG Group Overview: FY 2020 at a Glance
1. V-ZUG Group – Overview Robust increase in net sales: +4.7% (5.2% adjusted for currency effects) to CHF 569.4 million ▪ Market leadership in Switzerland confirmed: +4.1% ▪ Substantial growth of own brand business in international markets: +41.7% V-ZUG is still in a profound transformation phase wi
Slide 5: FY 2020 at a Glance – delivering towards mid-term expectations
1. V-ZUG Group – Overview FY 2020 at a Glance – delivering towards our mid-term expectations Mid-term Expectation 2020 Report Card Total Net sales 2 to 3% organic growth Growth 2020: +4.7% International sales Double in 5 years (2019 – 2024) Sales 2020 compared to 2019: +9.8% (own brand: +41.7%) EBIT
Slide 6: High demand with excellent delivery performance leading to substantial growth
1. V-ZUG Group – Overview High demand with excellent delivery performance leading to substantial growth in all markets except OEM Net sales [in CHF million] Net sales by region [in CHF million] Net sales [in CHF million] 600 569.4 600 11.8% 539.0 543.6 8.7% 11.3% -40.6% 14.9 500 15.2% 500 19.3 69.7%
Slide 7: EBITDA margin recovering – EBIT margin on the way back to double digit
1. V-ZUG Group – Overview EBITDA margin recovering – EBIT margin on the way back to double digit – Free Cash Flow extraordinary EBITDA [in CHF million] Operating result (EBIT) [in CHF million] Free cash flow [in CHF million] 90 90 50 42.0 14.0% 80 80 40 13.1% 70 70 30 60 10.5% 60 20 50 50 8.9% 8.6%
Slide 8: Highlights 2020
1. V-ZUG Group – Overview Highlights 2020 Markets Innovation, Product & Service Development ▪ #1 position in Swiss market: excellent delivery performance ▪ Market launch of new Excellence Line in March 2021 during Covid-19 pandemic leads to a net sales increase of 4.1% ▪ New energy label (IEC1) laun
Slide 9: Segment Household Appliances
1. V-ZUG Group – Overview Segment Household Appliances Kitchen Laundry Service & Support vzug.com 9
Slide 10: Segment Household Appliances
1. V-ZUG Group – Overview Segment Household Appliances % of net sales (FY 2020) ▪ V-ZUG stands for innovative and high- 0.8 quality home appliances for domestic kitchens and laundry rooms. Swiss market leader. Growing international acclaim 14.0 ▪ V-ZUG leads in quality incl. longevity, technology, c
Slide 11: Group Structure
1. V-ZUG Group – Overview Group Structure V-ZUG Holding AG Segment Household Appliances Segment Real Estate V-ZUG AG V-ZUG Infra AG V-ZUG Kühltechnik AG V-ZUG Assets AG SIBIRGroup AG V-ZUG Europe BV V-ZUG UK Ltd. V-ZUG (Shanghai) Domestic Appliance Co. Ltd. V-ZUG (Changzhou) Special Components Co. L
Slide 12: 2. Our Business
2. Our Business vzug.com
Slide 13: Global Presence in Metropolitan Areas
2. Markets Global Presence in Metropolitan Areas United Kingdom Russia (Moskau & St. Petersburg) Greater Europe: Switzerland Ukraine BeNeLux USA France Italy Turkey Germany Lebanon Greater China Israel Hong Kong Singapore Australia V-ZUG Head Office V-ZUG subsidiaries V-ZUG partners / distributors v
Slide 14: Markets and Positioning
2. Markets and Positioning Switzerland and International Markets Positioning Positioning Intl. Switzerland Markets VERY HIGH / HIGH (premium segment, high to very high price, luxury V-ZUG Premium functionality expectations, high requirements regarding “look and feel”) V-ZUG MEDIUM (medium segment, a
Slide 15: Markets and Positioning – New: ZUGORAMAs in Munich and Beijing
Markets and Positioning – New ZUGORAMAs in Munich and Beijing vzug.com
Slide 16: Switzerland promises steady growth until 2026 according to building forecast
2. Markets Switzerland promises steady growth until 2026 according to building forecast Main drivers of demand: New build, Refurbishments, Replacements (approx. 1/3 each) New build: No. of units, investment volumes per year in a long-term comparison and forecast Mehrfamilienhäuser (MFH) = apartment
Slide 17: Reference Project: QUBE, Köniz, Switzerland
2. Markets Reference Project: QUBE, Köniz, Switzerland ▪ New build project near Bern with 28 owner- occupied apartments (3.5 - 5.5-room apartments) with experimental new floor plans and exciting new living concepts ▪ QUBE element (unit made up of a kitchen, bathroom, cloakroom, storage space, techno
Slide 18: International expansion follows metropolitan strategy
2. Markets International expansion follows metropolitan Sales CH vs. International strategy (2020 vs 2019) ▪ Focus on selected markets in cities / metropolitan areas with the highest potential for a premium home appliance brand 4% 3% ▪ Strong sales increase with V-ZUG‘s own 7% 9% brand in core marke
Slide 19: Service & Support: A worldwide USP
2. Markets Service & Support: A worldwide USP ▪ At arm’s length, with know-how, experience and dedication ▪ Over 300 own technicians in Switzerland (incl. SIBIRGroup) with 24 service locations ▪ Over 230 trained technicians outside Switzerland ▪ Service interventions with >90% first completion rate
Slide 20: Comprehensive range of laundry home appliances
2. Products Comprehensive range and high quality offering of laundry home appliances vzug.com 20
Slide 21: Comprehensive range of kitchen home appliances
2. Products Comprehensive range and high quality offering of kitchen home appliances vzug.com 21
Slide 22: Zug: Vertical factory on 40% of the current footprint
2. Operations Zug: Vertical factory on 40% of the current footprint, 15% sqm less production area, available capacity allows a doubling of output Administration/ R&D «Zephyr West» Presses / Surface (2026) Technology «Zephyr Hangar» (2020) Logistics Centre «ZUGgate» (2008) Core of the vertical factor
Slide 23: Sulgen: new refrigeration production plant
2. Operations Sulgen: V-ZUG is realizing a new refrigeration production plant to replace the Arbon plant (leased) Start of production at the new site in 2022 vzug.com 23
Slide 24: 3. Sustainability
3. Sustainability vzug.com
Slide 25: V-ZUG is a Leader in Sustainability
3. Sustainability V-ZUG is a Leader in Sustainability CO2 approach: Appliances delivered by energy Number of women in top Avoid – Reduce – Compensate efficiency class management positions 100% 12 20.8% CO2 neutral production in Zug since 10 2018, in Arbon since 2019 and in 75% Changzhou since 2020 8
Slide 26: Energy-efficient products since many years
3. Sustainability Energy-efficient products since many years The new Adora V6000 – the only dishwasher on the market to reach rating class A according to the new energy efficiency Water and Energy Consumption index (as applicable from 1 March 2021) Consumption in liter and kWh 2.00 A -10% 50 2.00 45
Slide 27: Employees and society – V-ZUG cares
3. Sustainability Employees and society – V-ZUG cares - not only towards customers! Employees – health management and future- Technology Cluster Zug (TCZ) – V-ZUG forms part of oriented competency model an innovative quarter ▪ Vitality: V-ZUG's health management system “vitality” turns ▪ Urban eco-s
Slide 28: 4. Financial Information FY 2020
4. Financial Information FY 2020 vzug.com 28
Slide 29: FY 2020 Result V-ZUG Group
4. Financial Information FY 2020 Result V-ZUG Group CHF million FY 2020 ∆ FY 20191 Net sales to third parties 569.4 4.7% 543.6 EBITDA 79.6 40.0% 56.9 EBITDA margin in % 14.0 350bp 10.5 Operating income (EBIT) 49.2 66.2% 29.6 EBIT margin in % 8.6 320bp 5.4 Free cash flow 42.0 n/a -31.2 ROCE in %2 14.
Slide 30: Subdued first half of 2020 followed by accelerated second half
4. Financial Information Subdued first half of 2020 followed by unusually accelerated second half of 2020 Net sales [in CHF million] EBITDA [in CHF million] Operating result (EBIT) [in CHF million] 350 60 60 310.8 52.1 300 286.0 50 50 257.7 258.6 250 40.3 40 40 36.3 200 30 27.6 30 25.9 150 20 16.6 2
Slide 31: FY 2020 Result Segment Household Appliances
4. Financial Information FY 2020 Result Segment Household Appliances CHF million FY 2020 ∆ FY 2019 Net sales to third parties 569.4 4.7% 543.6 Operating income (EBIT) 46.2 63.2% 28.3 EBIT margin in % 8.1 290bp 5.2 ROCE in %1 23.3 850bp 14.8 ▪ FX neutral net sales growth of 5.2% ▪ Net sales in Switze
Slide 32: FY 2020 Result Segment Real Estate
4. Financial Information FY 2020 Result Segment Real Estate CHF million FY 2020 ∆ FY 20191 Net sales to third parties – – – Operating income (EBIT) 3.7 n/a 1.3 EBIT margin in % – – – ROCE in %2 2.7 170bp 1.1 ▪ EBIT 2019 includes a provision of CHF 3.1 million for soil remediation in Zug ▪ EBIT 2020
Slide 33: Investments remain on a high level as transformation goes on
4. Financial Information Investments remain on a high level as profound transformation goes on Total FTE [as of 31 December; incl temps] CAPEX [in CHF million] R&D expenses [in CHF million] 2500 80 80 74.3 70 70 1’999 64.2 2000 1’935 1’940 11.2% 10.4% 60 55.8 60 10.8% 50 50 1500 40 40 1000 30 30 20
Slide 34: Cash Flow Statement V-ZUG Group
4. Financial Information Cash Flow Statement V-ZUG Group CHF million FY 2020 FY 2019 Cash flow from operating activities 99.4 37.7 ▪ of which taxes paid -0.7 -5.8 Cash flow from investing activities -57.4 -69.0 ▪ of which investments in tangible assets -53.6 -65.7 ▪ of which investments in intangibl
Slide 35: Balance Sheet V-ZUG Group
4. Financial Information Balance Sheet V-ZUG Group CHF million 31.12.2020 in % 31.12.2019 in % Cash and cash equivalents 107.7 19.4 36.2 7.7 Other current assets 137.8 24.8 152.5 32.3 Current assets 245.5 44.3 188.7 40.0 Tangible assets 270.1 48.7 240.2 50.9 Financial & intangible assets 39.1 7.1 42
Slide 36: Dividend Policy
4. Financial Information 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 the context of
Slide 37: Outlook
4. Financial Information Outlook Mid-term expectation Total Net sales 2 to 3% organic growth International sales Doubled in 5 years (2019 – 2024) EBIT-Margin >10% Dividends 20% – 40% pay-out ratio ▪ The V-ZUG Group has had a successful start into the 2021 financial year. ▪ The first half of the year
Slide 38: 5. Investment Case
5. Investment Case vzug.com
Slide 39: Why invest in V-ZUG
5. V-ZUG: Why invest in V-ZUG 1 2 3 4 5 Proven ability to Market leader in Well established and Ongoing ability to Sustainability generate double Switzerland with a recognised player in lead innovations in (quality, durability, digit EBIT-margins unique and strong the premium seg- the industry thank
Slide 40: 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