Seb Sa · EURONEXT:SK
Seb Sa — Groupe SEB — Investor Presentation (March 2020)
77 slides from Seb Sa's investor presentation, March 2020
Slide 1: Groupe SEB Presentation March 2020
GROUPE SEB PRESENTATION March 2020
Slide 2: Disclaimer
Disclaimer 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 trends in commodity prices,
Slide 3: Contents
CONTENTS 1. Groupe SEB in a nutshell 2. ESG: a committed Group 3. 2019: another great year 4. Good performance 5. Outlook 6. Appendixes 3 March 2020 Groupe SEB Presentation
Slide 4: Groupe SEB in a nutshell
- GROUPE SEB INA NUTSHELL
Slide 5: 2019 Key Figures
2019 Key Figures €7,354m €740m €380m 34,000 Sales, + 5.8% Operating Result LFL Net income employees from Activity €267m 1,345 42 Investments in own industrial sites innovation retail stores 5 March 2020 Groupe SEB Presentation
Slide 6: An extensive and diversified offering
An extensive and diversified offering SMALL ELECTRIC APPLIANCES KITCHEN ELECTRICS COOKWARE - KITCHENWARE HOME AND PERSONAL CARE PROFESSIONAL Coffee machines Hotel Equipment 6 March 2020 Groupe SEB Presentation
Slide 7: Competing on a playfield exceeding €75bn
Competing on a playfield exceeding €75bn Global market sizes and breakdown by geography ~€45bn EMEA ~€23bn Asia EMEA Asia ~€8bn Americas Americas Small Domestic Appliances Cookware / Kitchenware Professional Coffee (SDA) (CW / KW) Machines 7 March 2020 Groupe SEB Presentation
Slide 8: Professional coffee: new opportunities in espresso full-auto and filter coffee machines
Professional coffee: new opportunities in espresso full-auto and filter coffee machines Full autos – around 25% of the global market Filter – < 10% of the global market Global market Fully Automatic U.S market Coffee Machines – "Equipment" Filter Coffee Machines Penetration of Fully Automatic Coffee
Slide 9: Main trends structuring our industry
Main trends structuring our industry Scale effect Improvement of technical capabilities in Asian countries Local approach Production New models Expansion Critical size Pure players (direct / marketplaces) of online Leadership By country and by segment Click & Mortars channel SDA AND CW / KW MARKET N
Slide 10: A consumer in constant transformation
A consumer in constant transformation… Health New Simplification & Wellness uses Commitment Digitization Ease of use, Healthy eating Personalized and A quest for meaning, E-commerce, versatility and and emphasizing multicultural naturalness, and connections and time saved home-made trend experience
Slide 11: Groupe SEB: a long-term value-creation strategy
Groupe SEB: a long-term value-creation strategy Focus Strengthen our on growth competitiveness Optimize our industrial facilities… Strength and complementarity of our brands Optimize purchasing and logistics Product innovation Improve industrial productivity Multi-channel distribution strategy Simpl
Slide 12: Relevance of our balanced model
Relevance of our balanced model 1 GEOGRAPHIES 2 CATEGORIES MULTI 3 BRANDS 4 CHANNELS 12 March 2020 Groupe SEB Presentation
Slide 13: A global and balanced presence...
Balanced sales breakdown A global and balanced presence... 1 Unrivalled global footprint, strong local positions Emerging markets Mature markets 45% ▪ ¾ of sales in countries where we are #1 or #2 55% ▪ Continued product offering expansion in markets Acquisitions as an additional catalyst Long-term
Slide 14: ...and accelerating growth across new economies
...and accelerating growth across new economies 1 Increased critical mass across countries ▪ 20th country in 2019: Sales ~ €60m vs. ~ €35m in 2016 Pool of fast-growing countries ▪ EMEA: Slovakia, Ukraine, Kazakhstan, Egypt… ▪ Asia: Thailand, Malaysia ▪ Americas: Mexico, Colombia, … 14 March 2020 Gro
Slide 15: Acquisitions as an additional catalyst
Acquisitions as an additional catalyst 8000 2019 1 2005 2016 2018 7000 1988 2011 6485 7354 6812 2001 6000 1998 1972 4770 5000 2004 2007 4000 1997 1968 2870 2015 3000 2000 Ventes en M€ 1825 2006 Acquisitions 1764 1000 170 7 0 1953 1975 1998 2000 2007 2015 2016 2017 2018 15 March 2020 Groupe SEB Prese
Slide 16: M&A strategy: focus on complementarity
M&A strategy: focus on complementarity Product 1 complementarity EMSA - 2016 Swizzz Prozzz - 2017 Wilbur Curtis - 2019 Ethera - 2017 Zahran - 2018 Geographical Business complementarity Krampouz - 2019 complementarity WMF - 2016 750g Int. - 2018 FeeliGreen - 2019 OBH Nordica - 2015 * Acquisitions of
Slide 17: A presence on numerous product categories...
A presence on numerous product 2019 sales by category categories... Professional Kitchen Electrics 2 ~10% Global leader in Cookware, Kitchen Electrics and Linen care Home and ~40% Personal ~20% Care Growing steadily in all Consumer categories ~30% Global leader in Professional Coffee (automatic espr
Slide 18: ...and a capacity to reinvent ourselves constantly
Versatile Vacuum Cleaners ...and a capacity to reinvent ourselves +€100m constantly 2 Garment steamers Sales ≥€100m Mugs x2 x4 Creating new product opportunities by leveraging: ▪ Technological developments and consumer trends ▪ Our innovation capabilities ▪ Targeted external growth acquisitions x2 F
Slide 19: A constant focus on innovation
A constant focus on innovation 2 ~1,500 + de €267m ~500 Passion for Innovation, people Investments patents one of the 5 values (R&D, Marketing, Design) (worldwide) of the Group 2019 figures Seb/Tefal Actifry Supor Tefal Tefal Ingenio Moulinex Rowenta Krups Moulinex Rowenta Tefal Original Steam Pro R
Slide 20: A unique brand portfolio...
A unique brand portfolio... 3 Strong, diversified and complementary brands ▪ Consumer, global and regional ▪ Premium ▪ Professional Organized on platforms ➔ Coordination, dissemination, consistency Responsible and inspiring brands 20 March 2020 Groupe SEB Presentation
Slide 21: ...and strong local roots
...and strong local roots 3 Emblematic local brands appealing to consumers in their day-to-day lives for 3 generations ▪ Heritage and credibility Supported by local brand ambassadors ▪ Chefs, influencers, communities of consumers, etc. Stakeholders in society: ▪ Imusa: “Tinteros Day” in Colombia ▪ S
Slide 22: A multi-channel approach...
Sales by distribution channel A multi-channel approach... Professional Mass retail Others 4 Group Retail Network synergies Specialists ▪ Accessing all consumers Traditional ▪ Adapting to local characteristics E-Commerce Long-term partnerships with retailers ▪ Execution, category management, merchand
Slide 23: ...and an increased proximity with end-consumers
Digital share in media investment ...and an increased proximity with end-consumers ~50% 4 x2 Targeted digital approaches 2016 2019 ▪ E-Commerce Traffic on Group websites ▪ Digital investments ▪ Direct relationship with Consumers (CRM) ▪ Communities & apps +79% 2016 2019 Direct approaches ▪ Group Ret
Slide 24: A worldwide industrial organization
A worldwide industrial organization GERMANY Emsdetten FRANCE St Lô Vernon Diez 2/3 of products Mayenne Selongey Erbach CHINA Geislingen manufactured in- Pluguffan Is/Tille Hayingen Shanghaï Tournus Rumilly Riedlingen Taicang house Pont Evêque Marigny RUSSIA Shaoxing St Jean Hangzhou de Bournay St Pe
Slide 25: ESG: A Committed Group
02 ESG: A COMMITTED GROUP
Slide 26: Structure of shareholding and voting rights at 31/12/2019
Structure of shareholding and voting rights at 31/12/2019 (EGM) Structure of shareholding at 31/12/2019 Distribution of voting rights at 31/12/2019 Treasury shares Individual Individual 0,7% Shareholders VENELLE 5,0% Shareholders VENELLE INVESTISSEMENT 5,6% INVESTISSEMENT & associates * 19,5% & asso
Slide 27: Groupe SEB Executive Committee
Groupe SEB Executive Committee Thierry de La Tour d’Artaise Stanislas de Gramont Chairman and CEO Chief Operating Officer Nathalie Lomon Vincent Tai Executive VP, Asia Senior Executive VP, Finance Cyril Buxtorf Executive VP, EMEA Harry Touret Senior Executive VP, Martin Zouhar Human Resources Execut
Slide 28: Our values
Our values Global vision Respect Leadership for change Passion for Products Pragmatism Loyalty Shared ambition Determination Innovator Know-how Corporate Social Trust Agility Daring High standards Responsibility Transparency ENTREPRENEURIAL PASSION RESPECT GROUP DRIVE FOR INNOVATION PROFESSIONALISM
Slide 29: Sustainable development pillars
Sustainable development pillars Empower our customers to have sustainable livings with our products and services Demonstrate on a daily Make healthy and tasty Help everyone to live better Make our products Contribute to the fight basis homemade food that is in a healthy home, regardless and services
Slide 30: People matter
People matter Human Ethics Philanthropy resources • Code of ethics • Social protection floor : • Fight against exclusion: ✓ Death benefit > 400 projects aiming • Responsible purchasing ✓ Medical plan for “a better life for all” ✓ Parenthood • Audits • Health & safety • Employees commitment: • Charit
Slide 31: Cooking for good
Cooking for good Homemade Healthy Sustainable • Help families in difficulty • Creation of a Healthy and • Meet new consumer to improve the diet of sustainable recipe and dietary trends their children from 0 Charter to 3 years old • Promotes more • 2019: 15.000 families responsible everyday • Goal fo
Slide 32: Better homelife
Better homelife Better indoor quality Good design • Intense Pur Air & Clean & Steam • Improve the ergonomics of all products • Filters up to 99.95% of pollution and permanently destroys • Permanent: one arm formaldehyde • Temporary: arm injury • Clean & Steam range: clean floor without detergents: •
Slide 33: Circulation revolution
Circulation revolution Give more Repair Recycling than one life • 94% of electrical • 1 000 000 pots & pans • Renting programs appliances are mainly collected since 2012 repairable • Recrafting • Eco-Respect range: • 40 000 spare parts in 100% recycled • Products donations references aluminum • 6 20
Slide 34: Climate action
Climate action Eco Eco design Eco logistic manufacturing • Eco design politic : • Prioritizes non-road • Eco innovative projects • Durable & recyclable transport: transport by rail • > 150 best practices and river. • Energy efficiency or use of alternative materials • Renewable energies in France, E
Slide 35: 2019: Another Good Year
SEB 2019: ANOTHER GOOD YEAR Ls
Slide 36: 2019: general environment
2019: general environment ▪ Overall still complicated and volatile environment ➔ Geopolitical, trade and social tensions ▪ Buoyant and resilient industry ▪ More favorable raw material and currency environment ▪ Ongoing changing retail industry ➔ Competitive and promotion-driven climate 36 March 2020
Slide 37: Another year of dynamic growth
Another year of dynamic growth Sales €7,354m +8.0% +5.8% LFL Professional Consumer €799m €6,555m +25.9% +12.1% LFL +6.1% +5.2% LFL 37 March 2020 Groupe SEB Presentation
Slide 38: …and good performance: 2019 financial key figures
…and good performance 2019 financial key figures ORfA €740m Sales +6.5% +4.7% LFL Net debt €7,354m €1,997m +8.0% +5.8% LFL o/w IFRS 16 debt: €334m Net profit €380m -9.4% Dividend proposed at the 2020 AGM €2.26, +5.6% vs. 2018 dividend in respect of FY 2019 38 March 2020 Groupe SEB Presentation
Slide 39: Continued development in Professional business
Continued development in Professional business Annual sales: ~€20m Annual sales: ~€80m 39 March 2020 Groupe SEB Presentation
Slide 40: SEB Alliance, a catalyst to our innovation strategy
SEB Alliance, a catalyst to our innovation strategy Since 2011 15 direct minority invesments - 2 majority investments A global active assessment tool in disruptive technologies… 6 partner funds …bolstered by cooperation with funds, leaders in their fields ➔ International and sector-wide coverage ➔ T
Slide 41: Good Performance
04 GOOD PERFORMANCE
Slide 42: Sales / Results
1 Sales 2 Results 42 March 2020 Groupe SEB Presentation
Slide 43: Development in sales 2018 → 2019
Development in sales 2018 → 2019 In €m 7,354 +71 +75 +396 6,812 Organic Currency growth effect Scope +5.8% +1.0% + 1.2% +8.0% 2018 2019 43 March 2020 Groupe SEB Presentation
Slide 44: Currency impact on 2019 sales
Currency impact on 2019 sales In €m 35 30 +€71m 25 Q1: +€13m Q2: +€2m 20 Q3: +€30m Q4: +€26m 15 10 5 0 -5 -10 -15 CNY EGP ARS UAH RUB CHF CAD BRL TRY THB COP MXN OTHERS JPY USD 44 March 2020 Groupe SEB Presentation
Slide 45: Breakdown of 2019 sales by region
Breakdown of 2019 sales by region Other Asia 8% Western Europe 38% China 25% €7,354m +5.8% LFL South America 4% Other EMEA 13% North America 12% 45 March 2020 Groupe SEB Presentation
Slide 46: Growth in all product lines
+26% Growth in all product lines 20% Professional as reported Home care LKA 15% Home comfort Electrical cooking 10% Professional LFL Personal care Cookware Food Beverage Linen preparation 5% care 2019 sales growth LFL 0% 46 March 2020 Groupe SEB Presentation *LKA = Large Kitchen Appliances
Slide 47: Consumer
Consumer 47 March 2020 Groupe SEB Presentation
Slide 48: Growth in all regions
Growth in all regions Other EMEA +12.4% North America Western Europe +2.9% +0.3% China +12.2% South America Other Asia +0.7% +1.2% AMERICAS EMEA ASIA LFL +2.1% +3.3% +9.4% 48 March 2020 Groupe SEB Presentation
Slide 49: Top 20 countries
Top 20 countries TOP 10 COUNTRIES SPAIN RUSSIA CHINA Colombia ITALY JAPAN BRAZIL* Mexico Poland Belgium Ukraine Turkey Canada FRANCE USA Austria Netherlands GERMANY SOUTH KOREA United Kingdom Consumer sales LFL *Excl. tax receivable (PIS COFINS) impact 49 March 2020 Groupe SEB Presentation
Slide 50: Western Europe
Western Europe Sales Organic growth €2,442m +0.3% FRANCE ▪ Stable annual sales ▪ Performing well in cookware, more difficult in SDA ▪ Year-end impacted by strikes and order cancellations/ postponements GERMANY ▪ Bringing Groupe SEB Deutschland’s sales practices into compliance OTHER COUNTRIES Italy,
Slide 51: Other EMEA countries
Other EMEA countries Sales Organic growth €897m +12.4% Robust growth on buoyant markets 3 strong drivers in the region ▪ Product dynamics ▪ Offline and online marketing activation ▪ Group Retail roll-out RUSSIA and CENTRAL EUROPE ▪ Strengthened leadership TURKEY and MIDDLE EAST ▪ Recovery 51 March 2
Slide 52: North America
North America Sales Organic growth €589m +2.9% USA ▪ Continued difficulties in traditional retail ▪ Market share gains in Cookware and Linen care • ➔ T-Fal and Rowenta are market leaders CANADA ▪ Challenging market environment ▪ Specific deals driving growth MEXICO ▪ Brisk growth in annual sales ▪ R
Slide 53: South America
South America Sales Organic growth €326m +0.7% BRAZIL ▪ Sales 2019 +10% LFL excl. PIS-COFINS* ▪ Good performance in fans and Dolce Gusto ▪ Expansion of new categories: oil-less fryers, grills… COLOMBIA ▪ Growth propelled by fans and cookware, oil-less fryers roll-out ▪ Remarkable improvement in indu
Slide 54: China
China Sales Organic growth €1,762m +12.2% Sustained growth in Supor’s core business against high comps, fueled by e-commerce COOKWARE ▪ Flagship products: woks, pots and isothermal mugs SMALL DOMESTIC APPLIANCES ▪ Growth nurtured by electrical cooking and new categories (garment steamers, vacuum cle
Slide 55: Other Asian countries
Other Asian countries Sales Organic growth €539m +1.2% JAPAN ▪ Flagship product dynamics (cookware and electric kettles) driving continued firm growth ▪ Encouraging development in new categories ▪ Confirmed success of Group Retail SOUTH KOREA ▪ Declining market, annual sales down LFL OTHER COUNTRIES
Slide 56: Professional
Professional 56 March 2020 Groupe SEB Presentation
Slide 57: Professional
Professional Sales Organic growth €799m +12.1% PROFESSIONAL COFFEE ▪ Confirmed fast development ▪ Sustained core business and major contracts ▪ Acquisition and integration of Wilbur Curtis into SEB Professional 57 March 2020 Groupe SEB Presentation
Slide 58: Sales / Results
1 Sales 2 Results 58 March 2020 Groupe SEB Presentation
Slide 59: Operating Result from Activity (ORfA)
Operating Result from Activity (ORfA) In €m 2018 2019 Δ Δ LFL Sales 6,812 7,354 +8.0% +5.8% ORfA 695 740 +6.5% +4.7% Op. margin 10.2% 10.1% -0.1% -0.1% 59 March 2020 Groupe SEB Presentation
Slide 60: ORfA bridge
ORfA bridge In €m +8 -5 +141 -37 -30 -45 727 740 +18 -5 695 Volumes Price COGS Growth Admin PIS-COFINS Currencies Scope Mix drivers & comm. GSEB D & expenses method effect 2018 2019 2019 LFL 60 March 2020 Groupe SEB Presentation
Slide 61: Growth drivers
Growth drivers In €m 2018 2019 Δ LFL % Innovation 247 267 +7.7% Advertising and marketing 431 461 +5.9% Total growth drivers 678 728 +6.5% Innovation: gross amount, before French research tax credit and capitalized costs 61 March 2020 Groupe SEB Presentation
Slide 62: Operating profit
Operating profit 2018 2019 Δ% In €m Operating Result from Activity (ORfA) 695 740 +6.5% Discretionary and non-discretionary (34) (37) profit-sharing* Other operating income and expense (36) (82) Operating profit 625 621 -0.8% * *Including 2019 employee share ownership plan expenses for €2m 62 March
Slide 63: Net profit
Net profit In €m 2018 2019 Δ% Operating profit 625 621 -0.8% Net financial expense (32) (61) Tax (131) (131) Non-controlling interests (43) (49) Net profit 419 380 -9.4% 63 March 2020 Groupe SEB Presentation
Slide 64: Simplified balance sheet
Simplified balance sheet 31/12/2018 31/12/2019 In €m Tangible fixed assets 3,578 4,263 Operating WCR 1,120 1,215 Total assets to be financed 4,698 5,478 Equity 2,307 2,628 Provisions 383 423 Other current assets and liabilities 430 430 Net debt 1,578 1,997* Total financing 4,698 5,478 *o/w €334m IFR
Slide 65: Change in net debt
Change in net debt Free cash flow: €367m In €m + 137 -1 1 997 1 940 + 362 - 896 + 288 + 183 - 32 1 578 + 303 + 75 IFRS 16 debt Cash Chg. Capex. Taxes and Chg. Acquisitions Dividends Currencies opening of flow Operating interest Non Operating and other non accounts WCR WCR operating Debt end- Debt De
Slide 66: Working Capital requirement evolution over 10 years
Working Capital requirement evolution over 10 years 25.6% 24.9% 24.0% 22.7% 22.4% 21.9% 21.0% 18.8% 18.4% 16.4% 16.5% 09 10 11 12 13 14 15 16 17 18 19 WCR as % of sales 66 March 2020 Groupe SEB Presentation
Slide 67: Financial ratios
Financial ratios 2.8 2.4 1.9 2.1 1.3 1.2 1.1 1.6 1.0 1.0 excl. IFRS 16 0.9 and 2019 acquisitions 0.6 0.7 0.6 0.5 0.4 0.3 0.3 0.3 0.8 0.2 0.1 0.2 09 10 11 12 13 14 15 16 17 18 19 Net debt/adjusted EBITDA Net debt-to-equity Ratios at 31/12 67 March 2020 Groupe SEB Presentation
Slide 68: Outlook
05 OUTLOOK
Slide 69: Covid-19: status at end-February 2020
Covid-19 : status at end-February 2020 Top priority given to employees’ health protection INDUSTRY ▪ 6 out of our 7 plants restarted production ➔ Increasing to reach full production capacity by the end of March ➔ Wuhan: lock-down lifted mid-March at best and transfer of most urgent productions to ot
Slide 70: Groupe SEB: 2020 context – vision at end February 2020
Groupe SEB: 2020 context – vision at end February 2020 Uncertain over environment and Covid-19 related issues Higher FX volatility expected compared to 2019 More favorable raw material context at this stage ➔ Lower performances expected in Q1 ▪ Covid-19 impacts as from February ▪ No major impact on
Slide 71: Appendix
06 APPENDIX
Slide 72: IFRS 16 implementation - Impacts in 2019
IFRS 16 implementation - Impacts in 2019 GROUPE SEB Impacts on: 1,300 contracts Net debt +€334m as of December 31, 2019 Stores Capex +€50m ➔ No cash impact Offices Adjusted EBITDA +€96m Warehouses ORfA +€9m Net Income Vehicles -€6m 72 March 2020 Groupe SEB Presentation
Slide 73: 2019 sales by region
2019 sales by region In €m, unaudited figures As Q4 2019 2018 2019 2019 LFL reported LFL EMEA 3,223 3,339 +3.6% +3.3% -1.1% Western Europe 2,430 2,442 +0.5% +0.3% -4.8% Other countries 793 897 +13.1% +12.4% +10.7% AMERICAS 887 915 +3.2% +2.1% -9.8% North America 547 589 +7.8% +2.9% -3.8% South Ameri
Slide 74: 2019 Quarterly Sales
2019 Quarterly Sales In €m Q1.. Q2 H1 Q3 9-month Q4 2019 EMEA 711 690 1,401 779 2,180 1,159 3,339 Western Europe 519 515 1,033 553 1,586 856 2,442 Other countries 192 175 368 226 594 303 897 AMERICAS 169 194 362 268 630 285 915 North America 103 121 224 176 400 190 589 South America 66 73 138 92 230
Slide 75: 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 76: Contacts
Investor/Analyst relations Media Relations Groupe SEB Groupe SEB Financial Communication Corporate Communication Dept and Investor Relations Caroline Philips C O N TA C T S Isabelle Posth cphilips@groupeseb.com Raphaël Hoffstetter Tel: +33 (0) 6 49 82 28 45 iposth@groupeseb.com rhoffstetter@groupese
Slide 77: 2020 key dates
2020 key dates April 28 | after market closes Q1 2020 sales and financial data AGENDA May 19 | 3:00 p.m. Annual general meeting July 23 | before market opens H1 2020 sales and results October 26 | after market closes Nine-month 2020 sales and financial data 77 March 2020 Groupe SEB Presentation