Seb Sa · EURONEXT:SK
Seb Sa — Groupe SEB — H1 2020 Earnings Presentation
48 slides from Seb Sa's earnings presentation, Jul 23, 2020
Slide 1: First-half 2020 Sales and Results
FIRST-HALF 2020 SALES AND RESULTS Ecully | July 23, 2020 Click here to listen to our webcast or find us at www.groupeseb.com
Slide 2: Note
FIRST-HALF 2020 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. Introduction 2. H1 2020 activity 3. Outlook 4. Appendixes 3 23/07/2020 First-half 2020 sales and results
Slide 4: Introduction
01 INTRODUCTION
Slide 5: First-half 2020 sales
First-half 2020 sales Sales €2,914m -12.6% Q1: -16.5% Q2: -8.4% Consumer Professional €2,608m -10.6% €306m -27.6% Q1: -17.3% Q2: -3.2% Q1: -9.7% Q2: -43.4% LFL changes 5 23/07/2020 First-half Ventes 2020 sales et résultats and results semestriels 2020
Slide 6: Key figures at end-June 2020
Key figures at end-June 2020 Sales ORfA €2,914m €103m -12.7% -12.6% LFL vs. €230m in H1 2019 Net profit Net debt €3m €2,085m vs. €100m in H1 2019 o/w IFRS 16 debt: €306m 6 23/07/2020 First-half Ventes 2020 sales et résultats and results semestriels 2020
Slide 7: The Group adapted and continued its projects
The Group adapted and continued its projects Liquidity Priority to Business continuation preservation Projects health & safety c c and restart plan and cost reduction Continued of employees action plans 7 23/07/2020 First-half Ventes 2020 sales et résultats and results semestriels 2020 7
Slide 8: Unprecedented health and economic crisis
Unprecedented health and economic crisis Lockdown 1 factory closed Jan 20 Gradual resumption of CHINA Most factories Restart activity Return to normal of business closed Mixed picture per country. Partial, Business OK except a few weeks OTHER ASIA in South Korea and Japan localized return to lockdow
Slide 9: Significantly impacting retail…
Significantly impacting retail… Half-year openings / closures trends Channel 2019 weight JANUARY FEBRUARY MARCH APRIL MAY JUNE Mass retail* 18% E-Commerce* 24% Specialists 16% Traditional & others 25% Group retail 6% B2B 11% *Priority given to essential products (mid-March to May) 9 23/07/2020 First
Slide 10: ...and our industrial base
...and our industrial base • Temporary closures of our sites (up to 25 sites closed simultaneously) • Preserving supply chain’s flexibility during crisis • Production sites restart activities - Social distancing between workstations - Personal Protective Equipment - Methods and processes reviewed En
Slide 11: Projects Continued
PROJECTS CONTINUED 11
Slide 12: WMF competitiveness plan: update
WMF competitiveness plan: update ▪ July 2019 ➔ Announcement of WMF competitiveness plan • September 2019: start of negotiations with employee representatives • May 2020: signature of an agreement ▪ Headcount reduction plan for support functions • 312 positions targeted, o/w 237 by end-2020 ▪ Cookwar
Slide 13: Active liquidity management continued
Active liquidity management continued ▪ New €500m bond issue ▪ Renegotiated our syndicated credit line of €960m • 5-year term (maturing June 16, 2025) • Extended for 12 months ➔ 31/07/2022 • Rate: 1.375% • +6 optional months ➔ 31/01/2023 • Undrawn to date Permanent securing of refinancing Average de
Slide 14: Groupe SEB showed solidarity to fight COVID-19
Groupe SEB showed solidarity to fight COVID-19 ▪ Leveraged industrial expertise Industrialized rollout of artificial ventilator, MakAir, at an affordable price with specific focus on treating COVID-19 ▪ Donated masks, gloves and other products ▪ Launched many local initiatives ▪ Donation of paid lea
Slide 15: Storebound: a successful scale-up in the US thanks to digital
Storebound: a successful scale-up in the US thanks to digital • Start-up created in 2010 ➔ 1-million Instagram followers • Consumer-centric approach • Strong retail expertise A successful scale-up, leveraging digital technologies • 2019 sales: ~ $90m • Key brand: Dash, a brand with a huge millenial
Slide 16: Stakes in new, green businesses
Stakes in new, green businesses 1616 23/07/2020 First-half Ventes 2020 sales et résultats and results semestriels 2020
Slide 17: Angell
17 https://angell.bike/ 23/07/2020 First-half Ventes 2020 sales et résultats and results semestriels 2020
Slide 18: Castalie
18 23/07/2020 First-half Ventes 2020 sales et résultats and results semestriels 2020 https://www.castalie.com/
Slide 19: Sale of non-core activities: EMSA GARDEN
Sale of non-core activities: EMSA GARDEN BOEHRINGER 19 23/07/2020 First-half 2020 sales and results
Slide 20: H1 2020 Activity
02 H1 2020 ACTIVITY
Slide 21: Change in sales - H1 2019 to 2020
Change in sales - H1 2019 → 2020 In €m 3,337 -420 2,914 +17 -20 Organic Currency growth effect Scope -12.6% -0.6% +0.5% -12.7% 2019 2020 21 23/07/2020 First-half Ventes 2020 sales et résultats and results semestriels 2020
Slide 22: Currency impact on H1 2020 sales
Currency impact on H1 2020 sales In €m 15 -€20m Q1: +€3m 10 Q2: -€23m 5 0 -5 -10 -15 EGP UAH KRW CHF JPY RUB ARS TRY CNY BRL MXN COP USD OTHERS 22 23/07/2020 First-half Ventes 2020 sales et résultats and results semestriels 2020
Slide 23: A bumpy road for sales in H1
A bumpy road for sales in H1 20 Organic sales growth (% vs. 2019) 0,0% -5,0% -3,2% -10,0% -8,4% -9,7% -10,6% -15,0% -12,6% CONSUMER -17,3% -16,5% -20,0% -25,0% PRO -30,0% -27,6% GROUP -35,0% TOTAL -40,0% -45,0% -43,4% -50,0% Q1 Q2 H1 23 23/07/2020 First-half Ventes 2020 sales et résultats and result
Slide 24: H1 2020 sales, LFL - Consumer
H1 2020 sales, LFL - Consumer AMERICAS EMEA ASIA €298m / -13.3% €1,272m / -9.0% €1,039m / -11.6% +7.6% -8.6% -7.5% -26.9% +7.6% -17.4% -10.4% Q1 Q2 Q1 Q2 Q1 Q2 24 23/07/2020 First-half Ventes 2020 sales et résultats and results semestriels 2020
Slide 25: Focus Consumer – EMEA
Focus Consumer – EMEA Growth vs LY % Q1 2020 LFL Q2 2020 LFL H1 2020 LFL H1 2020 as reported H1 sales: 1,272 M€ Western Europe -14.7% -8.3% -11.5% -11.4% Other EMEA +1.0% -5.2% -1.9% -3.0% countries ▪ Contrasting situations: Eurasia less impacted than Western Europe ▪ Robust online sales momentum: c
Slide 26: Focus Consumer – Americas
Q1 2020 Q2 2020 H1 2020 H1 2020 as Focus Consumer – Americas Growth vs LY % LFL LFL LFL reported H1 sales: 298 M€ North America -7.2% -6.7% -6.9% -6.6% South America -10.9% -35.3% -23.7% -35.9% ▪ Health crisis still critical ▪ Rebound in NAFTA driven by the US and boosted by consumer stimulus plans
Slide 27: Focus Consumer – Asia
Q1 2020 Q2 2020 H1 2020 H1 2020 as Focus Consumer – Asia Growth vs LY % LFL LFL LFL reported H1 sales: 1,039 M€ China -32.4% +10.2% -14.4% -15.3% Other Asian -1.5% -0.3% -0.9% +0.1% countries ▪ China’s performance driven by SDA and e-commerce ▪ Cookware impacted by extended closure of Wuhan site ▪ E
Slide 28: Focus Professional
Q1 2020 Q2 2020 H1 2020 H1 2020 as Growth vs LY % Focus Professional LFL LFL LFL reported H1 sales: 306 M€ Professional -9.7% -43.4% -27.6% -21.7% ▪ High PCM comparatives ▪ Closure of most hotels, restaurants, cafés as of March ▪ Postponement of investments, postponed or reduced orders 28 23/07/2020
Slide 29: Different impacts per product line
Different impacts per product line Sales H1 2020, LFL 5% 0% -5% Food Electrical -10% Home preparation cooking Group Total: - 12,6% comfort -15% Personal care -20% Linen Home care Beverage Cookware care -25% -30% LKA Professional -35% 29 23/07/2020 First-half Ventes 2020 sales et résultats and result
Slide 30: Continued digital breakthroughs
Continued digital breakthroughs ▪ Increased weight of online in H1 sales • Supor: ~60% of sales (vs. 45% in H1 2019) • US: 40% of sales (+10 points) • EMEA: ~30% of sales (+10 points)* 30 23/07/2020 First-half Ventes 2020 sales et résultats and results semestriels 2020 *SDA- GfK sell-out data on 14
Slide 31: Record sales for Supor at 618 Shopping festival
Record sales for Supor at “618” Shopping festival ▪ Sales +64% ▪ Cookware: No. 1 in 10 categories ▪ Thermospot: 380 million views on TikTok ▪ Livestreaming: sales > RMB 80m 31 23/07/2020 First-half Ventes 2020 sales et résultats and results semestriels 2020
Slide 32: Operating Result from Activity (ORfA)
Operating Result from Activity (ORfA) In €m 2019 2020 Δ Δ LFL Sales 3,337 2,914 -12.7% -12.6% ORfA 230 103 -55.0% -45.7% Op. margin 6.9% 3.5% -3.3 pts -2.6 pts 32 23/07/2020 First-half Ventes 2020 sales et résultats and results semestriels 2020
Slide 33: ORfA breakdown for H1 2020 vs 2019
ORfA breakdown for H1 2020 vs 2019 In €m 230 -134 6.9% 125 of -26 +29 -24 103 sales +50 +2 -24 Volumes Currencies SG&A 4.3% Price of Scope 3.5% Mix COGS Growth sales effect of drivers sales 2019 2020 2020 LFL 33 23/07/2020 First-half Ventes 2020 sales et résultats and results semestriels 2020
Slide 34: From ORfA to net profit
From ORfA to net profit In €m 2019 2020 Operating Result from Activity (ORfA) 230 103 Discretionary and non-discretionary profit-sharing (9) (5) Other operating income and expense (8) (40) Operating profit 213 58 Net financial expense (46) (29) Tax (40) (7) Non-controlling interests (27) (19) Net pr
Slide 35: Simplified balance sheet
Simplified balance sheet 30/06/2019 31/12/2019 30/06/2020 In €m Tangible fixed assets 4,162 4,263 4,200 Operating WCR 1,367 1,215 1,168 Total assets to be financed 5,529 5,478 5,368 Equity 2,323 2,628 2,499 Provisions 417 423 424 Other current assets and liabilities 361 430 360 Net financial debt 2,
Slide 36: Change in debt
Change in debt In €m +54 2,085 Free cash flow: +€65m (-€110m in H1 2019) 1,997 +100 -1 -232 +106 +14 -33 +80 Cash Tax Operating Other Other, non flow and financial Invest. WCR operations Dividends Currencies operating expense Debt end- Debt end- 2019 June 2020 36 23/07/2020 First-half Ventes 2020 sa
Slide 37: Ratios at June 30
Ratios at June 30 WCR as % of sales 23,1% 21,9% 21,1% 21,1% 20,2% 19,0% 18,4% 19,1% 17,6% 16,8% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net debt/equity 0,5 0,4 0,4 0,4 1,2 0,3 1.0 1,0 0,2 0,8 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net debt/adjusted EBITDA* 2,7 2,5 1,3 1,2 2,7 2,
Slide 38: Healthy and well-balanced financials
Healthy and well-balanced financials Confirmed undrawn 880 credit lines ~€1bn Cash & equiv. ▪ Diversified sources of 662 ~€1.8bn financing (Bonds, 500 538 500 Schuldschein, ORNAE, NEU MTN, NEU CP, etc.) Headroom inc. undrawn syndicated 283 ▪ No financial covenants loan 128 ▪ New €500m bond issue, Li
Slide 39: Outlook
03 OUTLOOK
Slide 40: 2020 Outlook
2020 Outlook ▪ Unusual H1-2020: health and economic crisis ▪ H1 traditionally not representative of full year ▪ Better-than-expected Q2 ▪ Uncertainty prevails on exit from the crisis: • Clouded visibility for Consumer activity • Professional Coffee activity likely impacted for FY 2020 ▪ Impossible t
Slide 41: Appendixes
04 APPENDIXES
Slide 42: H1 sales
H1 sales In €m H1 2019 H1 2020 As Like-for- Q2 2020 reported like LFL EMEA 1,401 1,272 -9.2% -9.0% -7.5% Western Europe 1,033 915 -11.4% -11.5% -8.3% Other countries 368 357 -3.0% -1.9% -5.2% AMERICAS 362 298 -17.8% -13.3% -17.4% North America 224 209 -6.6% -6.9% -6.7% South America 138 89 -35.9% -2
Slide 43: Q1 sales
Q1 sales In €m Q1 2019 Q1 2020 As reported LFL EMEA 711 641 -9.9% -10.4% Western Europe 519 443 -14.6% -14.7% Other countries 192 198 +2.6% +1.0% AMERICAS 169 149 -11.7% -8.6% North America 103 97 -5.2% -7.2% South America 66 52 -21.9% -10.9% ASIA 659 482 -26.8% -26.9% China 541 365 -32.6% -32.4% Ot
Slide 44: Q2 sales
Q2 sales In €m Q2 2019 Q2 2020 As reported LFL EMEA 690 631 -8.5% -7.5% Western Europe 515 472 -8.3% -8.3% Other countries 175 159 -9.2% -5.2% AMERICAS 194 149 -23.1% -17.4% North America 121 112 -7.8% -6.7% South America 73 37 -48.6% -35.3% ASIA 523 556 +6.4% +7.6% China 396 429 +8.3% +10.2% Other
Slide 45: H1 2020 sales by region
H1 2020 sales by region Other Asian countries Emerging markets Mature markets 9% 48% 52% Western Europe 37% China 28% €2,914m -12.6 % LFL South America 3% Other EMEA countries 13% North America 10% 45 23/07/2020 First-half Ventes 2020 sales et résultats and results semestriels 2020
Slide 46: 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 47: Contacts
Investor /AnalystRelations Media Relations Groupe SEB Groupe SEB Financial Communication Corporate Communication Dept and Investor Relations Dpt Cathy Pianon C O N TA C T S Isabelle Posth Caroline Philips Raphaël Hoffstetter cpianon@groupeseb.com iposth@groupeseb.com cphilips@groupeseb.com rhoffstet
Slide 48: Agenda
Next key date October 26 | after market closes 9-month 2020 sales and financial data AGENDA 48 23/07/2020 Ventes et résultats semestriels 2020