Leifheit AG · XETR:LEI
Leifheit — H1 2023 Earnings Presentation
46 slides from Leifheit's earnings presentation, Aug 10, 2023
Slide 1: Investor Presentation Q2 2023
Investor Presentation Q2 2023
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements which are based on the management’s current estimates with regard to future developments. Such statements are subject to risks and uncertainties which are beyond Leifheit’s ability to control or estimate precisely, such as statements o
Slide 3: Changes in the Managing Board
Changes in the Managing Board Stefan De Loecker Igor Iraeta Munduate Marco Keul CEO a.i. COO CFO Previous experience Previous experience Previous experience • More than 30 years of experience • Many years of experience as • Resp. for Controlling, IT/Business in management positions in the CTO at Igu
Slide 4: H1 2023 consumer climate still very unfavorable
H1 2023 consumer climate still very unfavorable - we expect consumer demand in Europe to remain depressed, especially for non-food household products GfK consumer climate index July 2023, Germany Source: GfK Investor Presentation August 2023 4
Slide 5: Declines in procurement costs vs. 2022 peak, but prices remain high
Declines in procurement costs in 2023 vs. peak in 2022, but raw material and energy prices remain at high levels • Average price increase of main raw materials approx. +40% vs. 2020* • Raw material costs will not reach level of 2019/20 in the short term, there is a "New Normal" at a higher level • C
Slide 6: Executive Summary 6M 2023
Executive Summary 6M 2023 Our vision: Leifheit makes the everyday life at home easier and more convenient We continued to pursue successful initiatives to increase consumer demand, improve gross margins, increase distribution and reduce costs in H1 2023 Group turnover of 138.1 m€ in 6M 2023, up by 1
Slide 7: Leifheit is financially solid and pays reliable dividends
Leifheit is financially solid and pays reliable dividends to shareholders Commitment to shareholders Strong products and brands 1.50 1,50 Dividend 1,00 1.00 for 2022: 0.70 € 0,50 0.50 0,00 0.00 Bonus/special dividend Dividend Strong financial structure Solid long-term stock performance in m€ in % As
Slide 8: Turnover in 6M 2023 1.3% above previous year
Turnover in 6M 2023 1.3% above previous year and significantly above the pre-crisis level Group turnover development by quarters in m€ 300,0 +6% +16% • Our successful initiatives deliver -12.8% solid results despite the crisis in 250,0 63 H1 2023 70 • Group turnover in 6M 2023 58 at 138.1 m€ is 1.3%
Slide 9: Significantly increased EBIT due to improved gross margin
Significantly increased EBIT due to improved gross margin Group earnings development 6M 2022 6M 2023 ∆ 6M 2019 – 6M 2023 in m€ Group turnover m€ 136.3 138.1 1.3% Gross margin % 38.6 40.9 2.3 pps 14 13.6 Foreign currency result m€ 1.4 -1.1 >-100% EBIT m€ 2.1 4.8 >100% 12 EBIT margin % 1.6 3.5 1.9 pps
Slide 10: Since 1 year steadily increasing gross margins
Since 1 year steadily increasing gross margins + 5.3 pps Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Gross Margin % 36.0 37.9 39.7 40.5 41.3 • Increase in gross margin in 6M 2023 because of - higher sales prices - positive product mix effects due to the focus on effective TV advertising campaigns for pr
Slide 11: Free cash flow increased by 18.1 m€
Free cash flow increased by 18.1 m€ from -10.5 m€ in 6M 2022 to 7.6 m€ in 6M 2023 in m€ 6M 2022 6M 2023 ∆ Cash flow from operating activities -7.9 10.8 18.7 Cash flow from investment activities -2.6 -3.2 -0.6 Cash flow from financing activities -10.3 -6.9 3.4 Free cash flow1 -10.5 7.6 18.1 in m€ 30/
Slide 12: Free cash flow and group liquidity development
Free cash flow increased by 18.1 m€ from -10.5 m€ in 6M 2022 to 7.6 m€ in 6M 2023 Group liquidity 31/12/2022 vs. 30/06/2023 in m€ 8.0 0.2 3.7 4.0 • Improvement in working 2.6 -0.2 36.3 37.0 capital, especially the -3.2 -6.7 reduction in inventories -7.7 • In the Q2 2023 free cash flow reached 11.0 m
Slide 13: Our purpose? Happy consumers!
Our purpose? Happy consumers! Better Value for Money In H1 2023 we continued to pursue successful initiative to 1 3 Create consumer Improve gross demand margins 2 4 Increase national Reduce all cost and international except consumer distribution advertising Investor Presentation August 2023 13
Slide 14: Long-lasting products and Electricity Savers campaigns
1 „Our most long-lasting products“ and “Electricity Savers” campaigns aim for sustainability • High quality and along with its long life cycle products belong to the DNA of the Leifheit brand. • Strongly convinced from our product quality we often give longer warranty period than the competition or
Slide 15: “Made in Germany” campaign
1 Successful campaign with focus on product quality “Made in Germany” • The “Made in Germany” campaign including TV commercial led to increased consumer interest not only for the Profi cleaning system but for the entire Leifheit brand Investor Presentation August 2023 15
Slide 16: Window & Frame Cleaner for solar panels
1 Generate 15% more solar energy on domestic solar panels with Leifheit`s window & frame cleaner • Window & Frame Cleaner with additional consumer benefits • Gently removes dirt from the solar panels from adhering dirt on the balcony • Balcony power plants can save up to 130 kg of CO2, these should
Slide 17: Expanding our product portfolio to include new target groups
1 Expanding our product portfolio to include new target groups • New premium standing dryer Pegasus 150 Solid Slim Black in the colour combination black and anthracite serves a current colour trend and is aimed at a target group that has high demands on design and aesthetics when furnishing their ow
Slide 18: Contribution from Operations: Efficient production and logistics
3 + 4 Contribution from Operations: Efficient and flexible production and logistics processes Path to Operational Excellence: • Focus on the development of innovations with relevant consumer benefits and high marketing potential • Reducing the complexity and streamlining of product ranges • Flexible
Slide 19: Three logistics locations close to customers
4 Distribution of the European business volume to three logistics locations with short distances to our customers • New central European logistics hub (Leifheit Distribution Western Europe, LDW) for our Leifheit and Soehnle products at the logistics site in Chablis, France, which was previously oper
Slide 20: Logistics transformation to B2C + D2C excellence
4 Successful transformation of our logistics from classic retail shipping to B2C + D2C excellence Number of B2C + D2C delivery positions 2018 – 2023e • We strive for Logistics excellence and enhancing e-commerce capabilities to 700000 • enable profitable growth in the booming online business and 600
Slide 21: Path to Operational Excellence: lean principles
4 Path to Operational Excellence: consistent implementation of lean principles leads to increasing productivity by 34 pps Productivity* at Blatná production site • Thanks to the consequent implementation of Lean principles, 2020 – 6M 2023 in % we achieved significant increases in efficiency and prod
Slide 22: Productivity gains and decrease in employees
4 The increase of productivity and the improvement of the efficiency in our internal processes drives to a decrease of 50 employees in FY 2022 vs. FY 2019* and 76 employees in 6M 2023 vs. 6M 2019* Number of employees (average) Number of employees (average) FY 2018 - 2022 6M 2018 – 6M 2023 1200 1.139
Slide 23: Increase in turnover per employee
4 13% increase in turnover per employee FY 2022 vs. FY 2019* 21% increase 6M 2023 vs. 6M 2019* Group turnover per employee full year* Group turnover per employee first half* 2018 - 2022 in k€ 6M 2018 – 6M 2023 in k€ 262 139 248 132 237 119 124 206 210 109 +13% +21% 2018 2019 2020 2021 2022 6M 2019 6
Slide 24: Challenging market environment ahead - forecast 2023 confirmed
Challenging market environment ahead - forecast 2023 confirmed Forecast 2023 Group turnover Slightly below the previous year Turnover Household Noticeable below the previous year Turnover Wellbeing Noticeable below the previous year Turnover Private Label Slightly above previous year’s level Group E
Slide 25: Your Questions please.
Your Questions please.
Slide 26: Annex
Annex
Slide 27: Household and Wellbeing segments above previous year
Annex Household and Wellbeing segments above previous year’s level, Private Label largely stable Group turnover by segment Group turnover by segment 6M 2019 – 6M 2023 in m€ 6M 2023 10.4% Household 6.3% Wellbeing 156 160 Private Label 16 136 138 140 130 122 14 14 15 120 13 8 9 83.3% 14 11 100 9 • Tur
Slide 28: Leifheit back on growth track
Annex Leifheit back on growth track despite continuing inflation and difficult market environment Group turnover by region Group turnover by region 6M 2019 – 6M 2023 in m€ 6M 2023 160 156 2.1% 4 11.6% 138 Germany 140 18 136 44.6% 130 3 4 122 5 16 Central Europe 16 120 4 16 15 Eastern Europe 61 100 5
Slide 29: Flexible reaction to changed capacity utilization; employee development
Annex We were able to react flexibly to the changed capacity utilization in production and logistics by reducing remaining vacation time and credits on working time accounts and by cutback in the numbers of temporary workers Employee development* Employees by region* 30 June 2023 30 June 2023 Privat
Slide 30: Leifheit makes top quality household products
Annex Leifheit makes top quality household products Profi Floor Wiper CLEAN TWIST Disc Mop Ergo Pegasus 150 Linomatic 500 Deluxe 4.7 stars 4.6 stars 4.6 stars 4.5 stars Investor Presentation August 2023 30
Slide 31: Leifheit Group structure
Annex Leifheit Group structure Household Wellbeing Private Label Kitchen Laundry Care Cleaning Kitchen goods Personal scales Kitchen scales Standing Dryers goods Wellbeing 6% Rest of World Kitchen Goods 2% 12% Germany Laundry Care Eastern 46% 44% Europe Turnover by 12% Turnover product by region cat
Slide 32: European production footprint
Annex Our European production footprint ensured reliable supply to customers despite COVID-19-related supply chain challenges Paris/F (Leifheit/Birambeau) Nassau/D (Leifheit/Soehnle) • About 65 employees • About 280 employees • Marketing, sales • Marketing, sales, development, quality and administra
Slide 33: Distribution in all relevant distribution channels
Annex Distribution in all relevant distribution channels Blue Chip client base Distribution channels Turnover 2022 in % (previous year’s figures) Electro Others 4 (3) 5 (6) Cash & Carry 2 (3) Hypermarket Importers/ 26 (26) Exporters Top 10 7 (7) Customers account for 50% Turnover 2022: of Leifheit’s
Slide 34: Long-term financial overview
Annex Long-term financial overview 2018 2019 2020 2021 2022 Group turnover m€ 234.2 234.0 271.6 288.3 251.5 Profitability ▪ Gross margin % 43.6 43.1 45.0 42.3 38.7 ▪ Cash flow 14.0 from operating activities m€ 10.2 15.9 4.0 16.4 ▪ Free cash flow m€ 3.7 10.1 -5.5 9.6 8.8 ▪ EBIT m€ 13.1 9.9 18.8 20.1
Slide 35: Long-term financial overview
Annex Long-term financial overview 2018 2019 2020 2021 2022 Per share Net result for the period, EPS2 € 0.88 0.61 1.32 1.49 0.13 Free cash flow € 0.39 1.06 -0.57 1.00 0.92 Dividend € 1.05 0.55 1.05 1.05 0.702 Special dividend € -- -- -- -- Investments m€ 6.6 6.0 9.6 7.3 5.4 Depreciation m€ 6.9 8.2 8
Slide 36: Committed to shareholder returns
Annex Committed to shareholder returns Long-term dividend development Dividend yield 1 Dividend per share / in € 2022: 5.2% 2018: 5.9% 2021: 2.9% 2017: 3.8% 2020: 2.4% 2016: 5.1% 2019: 2.3% 2015: 5.6% 1,50 Dividend payment for 2022: € 0.70 1,00 0,50 0,00 1984 1985 1986 1987 1988 1989 1990 1991 1992
Slide 37: Leifheit awards (selection)
Annex Leifheit awards (selection) Floor wiper Profi micro duo Rotary dryers Laundry dryers Linomatic Pegasus Cordless vaccum wiper Regulus Aqua PowerVac CLEAN TWIST Disc Mop Ergo Window vaccum Window vaccum CLEAN TWIST cleaner Nemo cleaners M Ergo Salad spinner Cordless vaccum Isolating jug Isolatin
Slide 38: Soehnle awards (selection)
Annex Soehnle awards (selection) Kitchen Scales Personal Scales Page Profi + Page Profi 300 Style Sense Personal Scales Page Aqua Proof Style Sense Bamboo Magic Kitchen Scale Air Purifier Body analysis scales Blood pressure monitors AirFresh Clean 400 Shape Sense Connect 100 + 200 Systo Monitor 200
Slide 39: More than 60 years of passion for housework
Annex Leifheit – more than 60 years of passion for housework 2010 1984 • Sale of the business unit ‘bathroom’ • IPO of Leifheit AG including the brands Spirella, Kleine Wolke and Meusch 1988 2008 • License agreement for • Takeover of 60% of Dr Oetker Bakeware Herby/F • Acquisition of Spirella and Kl
Slide 40: European competitors by category
Annex European competitors by category Cleaning Laundry care Spontex Brabantia Vileda Artweger Rival Tonkita Swiffer Juwel Wenko Gimi Stewi Vileda Metaltex Rörets Kärcher Blome Kitchen goods Wellbeing Tescoma WMF Gefu Bosch Laica Tanita Zyliss Rösle Oxo Lurch ADE Homedics Fackelmann Sanitas Beurer B
Slide 41: Significant free float and international investors
Annex Significant free float and international investors Shareholder structure July 2023 • MKV Verwaltungs GmbH, Grünwald (GER), 10.03% 10.03% • Ruthild Loh, Haiger (GER), 8.26% 8.26% • Leifheit AG Nassau (GER), treasury shares, 4.85% 4.85% 0.03% 44.35% • Employee shares subject to a lock-up period
Slide 42: ESG: New strategic sustainability goals
Annex ESG: New strategic sustainability goals 1 Focus on climate neutrality till 2030 Emission reduction Analyse our emissions Objectives until 2030 Compensate measures until 2030 • Climate balance for our • Substantially reduce • Energy: • Compensate non Read more at our most important sites in the
Slide 43: Our ESG Principles
Annex Our ESG Principles Read more at our sustainability report 2022 www.leifheit-group.com/en/investor- relations/reports-and-presentations/ Investor Presentation August 2023 43
Slide 44: Leifheit frequently top company in household goods categories
Annex Leifheit is frequently top company in home appliances and household goods categories • Leifheit was awarded the “Germany’s Best Sustainability” seal by Focus and Focus-Money in 2022 for the second year running. The study analyses social listening data for some 19,000 companies and brands. It e
Slide 45: Financial calendar and contact
Annex Financial calendar and contact Dates 2023 Contact 19 September 2023 Corporate Communications / Investor Relations Berenberg and Goldman Sachs Thwelfth Phone: +49 2604 977-218 German Corporate Conference, Munich Email: ir@leifheit.com 15 November 2023 Publication Quarterly Statement (Q3) 27 – 2
Slide 46: Aktiengesellschaft Postfach 11 65 D-56377 Nassau
Aktiengesellschaft Postfach 11 65 D-56377 Nassau