Slide 1: First-Half 2019 Sales and Results
FIRST-HALF 2019 SALES AND RESULTS Paris | July 24, 2019 Listen to the webcast of the meeting on www.groupeseb.com
Slide 2: Note: forward-looking statements
FIRST-HALF 2019 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: Contents
CONTENTS 1. General environment and key figures 2. Highlights 3. H1 2019 sales and results 4. Outlook 5. Appendices 3 07/24/2019 Half-year 2019 Sales and Results
Slide 4: General Environment and Key Figures
01 GENERAL ENVIRONMENT AND KEY FIGURES 4 07/24/2019 Half-year 2019 Sales and Results
Slide 5: Mixed general environment
Mixed general environment ▪ Still difficult macroeconomic context: • Geopolitical tensions (USA/China, Gulf…) • Uncertainty in emerging countries (Brazil, Turkey) • Sluggish dynamics in Europe (Italy, Germany, UK) ▪ Fast-changing retail market • Difficulties of traditional retail vs. continuous deve
Slide 6: Key figures at end-June 2019
Key figures at end-June 2019 Sales €3,337m +10.3% +8.4% LFL Consumer Professional €2,946m €391m +7.7% +7.2% +34.9% +20.1% LFL LFL 6 07/24/2019 Half-year 2019 Sales and Results 6
Slide 7: Key figures at end-June 2019
Key figures at end-June 2019 SalesSales ORfA €6,812m €3,337m +5.1% +7.8% LFL €230m +10.3% +8.4% LFL +10.7% +8.1% LFL Net debt Net profit €100m €2,428m* +€313m vs 06/30/2018 +9.8% *o/w IFRS 16 debt: €346m 7 07/24/2019 Half-year 2019 Sales and Results
Slide 8: Highlights
02 HIGHLIGHTS • Wilbur Curtis • Egypt • Employee shareholding plan • WMF 8 07/24/2019 Half-year 2019 Sales and Results
Slide 9: Wilbur Curtis: good start in the Group
Wilbur Curtis: good start in the Group ▪ Business synergies effective with WMF-Schaerer in professional coffee machines in the US • Filter coffee / Automatic espresso • Price positioning • Client portfolio • Geographic foothold ▪ Ongoing integration process ➔ SEB Professional ▪ Sales and logistics s
Slide 10: Egypt: operating levers implemented
Egypt: operating levers implemented ▪ Strategic market for the Group ▪ Small Domestic Appliances (SDA) • Strong growth in local production ➔Improving competitiveness • Leadership in food preparation ▪ Cookware • Industrial site ramp-up • Strong leadership: Zahran/Tefal synergies ▪ Solid momentum in
Slide 11: Employee shareholding plan respected
Employee shareholding plan respected ▪ Open operation in 33 countries • Subscription price: €123.04 • 20% discount / benchmark price €153.79 ▪ Participation rate: 22.% of the 19,000 eligible employees ▪ Average amount invested per employee: €4,400 ▪ Total amount: €18.1m including employer contributi
Slide 12: WMF: contrasting performances
WMF: contrasting performances ▪ PCM*: performances above our expectations • 2015 ➔ 2018 sales: +43% ▪ More complicated Consumer business than expected • 2015 ➔ 2018 sales: -8% ➔ Plan to strengthen Consumer business ▪ Objective: op. margin at Group level (~10%) ▪ Action plan founded on 4 priority are
Slide 13: H1 2019 Sales and Results
03 H1 2019 SALES AND RESULTS 13 07/24/2019 Half-year 2019 Sales and Results
Slide 14: Sales
Robust performances with balanced growth 1 Sales 2 Results 14 07/24/2019 Half-year 2019 Sales and Results
Slide 15: Change in sales H1 2018 → H1 2019
Change in sales H1 2018 → H1 2019 In €m +43 3,337 +15 +254 3,025 Organic Currency Perimeter growth effect +8.4% +0.5% +1.4% +10.3% H1 2018 H1 2019 15 07/24/2019 Half-year 2019 Sales and Results
Slide 16: Currency impact on H1 2019 sales
Currency impact on H1 2019 sales In €m +€15m 15 Q1: +€13m Q2: +€2m 10 5 0 -5 -10 -15 CNY CHF BRL EGP KRW RUB ARS TRY USD USD MXN COP OTHERS 16 07/24/2019 Half-year 2019 Sales and Results
Slide 17: Organic sales growth per quarter
Organic sales growth per quarter H1 2017 2018 2019 In % +10.1% +7.4% +8.4% 12 11.5 10 8.6 8.8 8.4 8.5 8.4 8 8.2 7.8 7.4 2017 7.3 6 2018 2019 4 Q1 Q2 Q3 Q4 17 07/24/2019 Half-year 2019 Sales and Results
Slide 18: H1 sales
H1 sales In €m As H1 2019 Q2 2019 H1 2018 H1 2019 reported LFL LFL EMEA 1,337 1,401 +4.7% +5.0% +5.9% Western Europe 997 1,033 +3.6% +3.6% +4.1% Other countries 340 368 +8.0% +9.1% +11.4% AMERICAS 338 362 +7.3% +6.6% +8.8% North America 204 224 +9.5% +3.0% +2.3% South America 134 138 +3.9% +12.1% +1
Slide 19: Breakdown of sales by region
Breakdown of sales by region Other Asian countries Emerging countries Mature countries 9% 48% 52% Western Europe 36% China 29% €3,337m €3,337m +8.4% LFL +8.4% LFL South America 4% Other EMEA countries 12% North America 10% 19 07/24/2019 Half-year 2019 Sales and Results 19
Slide 20: Top countries – Consumer sales
Top 20 countries – Consumer sales TOP 10 COUNTRIES GERMANY Belgium BRAZIL CHINA SPAIN USA ITALY JAPAN Mexico Netherlands Poland RUSSIA Switzerland Turkey Austria Canada Colombia FRANCE SOUTH KOREA United Kingdom LFL 20 07/24/2019 Half-year 2019 Sales and Results
Slide 21: Western Europe
Western Europe AS Reminder: H1 sales in €m 2018 2019 LFL REPORTED 2018 LFL Western Europe 997 1,033 +3.6% +3.6% +1.3% ▪ Solid growth in sales, slightly accelerating in Q2 ➔ Positive SDA market ➔ Strong core business and major loyalty programs (LPs) ▪ Activity favorable overall ➔ France: stable half-
Slide 22: Other countries EMEA
Other countries EMEA AS Reminder H1 sales in €m 2018 2019 LFL REPORTED 2018 LFL Other countries 340 368 +8.0% +9.1% +12.9% ▪ Robust organic sales growth of 9.1% in H1, accelerating in Q2 ➔ Momentum driven by both core business and LPs ➔ Sales in Retail Group up > 10% ➔ Virtually widespread milestone
Slide 23: North America
North America AS Reminder: H1 sales in €m 2018 2019 LFL REPORTED 2018 LFL North America 204 224 +9.5% +3.0% -11.5% ▪ Highly disrupted retail sector, impacting business ➔ Destockings, promotions, store closures… ▪ Contrasted performance by country: ➔ United States/Canada: solid business in cookware.
Slide 24: South America
South America AS Reminder H1 sales in €m 2018 2019 LFL REPORTED 2018 LFL South America 134 138 +3.9% +12.1% -0.7% ▪ Strong sales growth in H1, accelerating in Q2 ▪ Brazil the main growth driver ➔ Acceleration in Q2 (+25%) vs. weak Q2 2018 ➔ Growth driven by several product categories in a highly com
Slide 25: China
China AS Reminder: H1 sales in €m 2018 2019 LFL REPORTED 2018 LFL China 825 938 +13.7% +12.8% +26.6% ▪ Competitive and promotion-driven market, still propelled by e-commerce ▪ Solid momentum (10-15% LFL) maintained vs. exceptional 2018 performance ➔ Reminder: Q2 2018 sales: +30% ▪ All product famili
Slide 26: Other countries
Other countries AS Reminder H1 sales in €m 2018 2019 LFL REPORTED 2018 LFL Other countries 235 244 +4.3% +0.7% +1.5% ▪ Sales stable LFL after a slight organic decline in Q2 ▪ Excellent performances across most countries in the region ➔ Japan: traditional categories (cookware, kettles…) and new (garm
Slide 27: Professional
PROFESSIONAL Professional AS Reminder H1 sales in €m 2018 2019 LFL REPORTED 2018 LFL Professional 290 391 +34.9% +20.1% +2.4% ▪ Professional business = Professional coffee machines+ Hotel equipment ▪ Highly vigorous Professional Coffee business with moderate 2018 comparatives ➔ Major contracts in th
Slide 28: Top performers by product line - Consumer
Top performers by product line - Consumer LFL Home comfort 25,0% 20,0% Food Home care Personal preparation Cookware 15,0% care Electrical Beverages cooking 10,0% 5,0% Linen care 0,0% -5,0% Board of Directors - July 23, 2019 - CONFIDENTIAL 28 07/24/2019 Half-year 2019 Sales and Results 28
Slide 29: Product news: Steam'Up
Product news Steam’Up 29 07/24/2019 Half-year 2019 Sales and Results
Slide 30: Product news: Air Force Flex
Product news Air Force Flex 30 07/24/2019 Half-year 2019 Sales and Results
Slide 31: Product news: Köpüklüm
Product news Köpüklüm 31 07/24/2019 Half-year 2019 Sales and Results
Slide 32: Product news: Healthy & Tasty RC
Product news Healthy & Tasty RC 32 07/24/2019 Half-year 2019 Sales and Results
Slide 33: Product news: Cookware All Clad
Product news Cookware All Clad 33 07/24/2019 Half-year 2019 Sales and Results
Slide 34: Results
Robust performances with balanced growth 1 Sales 2 Results 34 07/24/2019 Half-year 2019 Sales and Results
Slide 35: ORfA construction
ORfA construction +25 -18 In €m -23 +56 -24 230 224 +11 208 -5 6.8% of 6.9% of 6.9% of sales sales sales Volumes Price COGS Growth Admin & Currencies Scope mix drivers comm. effect expenses 2018 2019 2019 LFL 35 07/24/2019 Half-year 2019 Sales and Results
Slide 36: Growth drivers
Growth drivers In €m H1 2018 H1 2019 Δ LFL Innovation 117 128 +8.2% Advertising and marketing 197 214 +7.9% Total growth drivers 314 342 +8.0% Gross amount, before French research tax credit and capitalization 36 07/24/2019 Half-year 2019 Sales and Results
Slide 37: Operating profit
Operating profit In €m H1 2018 H1 2019 Operating Result from Activity (ORfA) 208 230 +10.7% Discretionary and non-discretionary (10) (9) profit-sharing Other operating income and expense (12) (8) Operating profit 186 213 +14.5% 37 07/24/2019 Half-year 2019 Sales and Results
Slide 38: Net Profit
Net Profit In €m H1 2018 H1 2019 Operating profit 186 213 +14.5% Interest expense (16) (21) Other financial expense (20) (25) Tax (36) (40) Non-controlling interests (23) (27) Net Profit 91 100 +9.8% 38 07/24/2019 Half-year 2019 Sales and Results
Slide 39: Simplified balance sheet
Simplified balance sheet In €m 06/30/2018 06/30/2019 Tangible fixed assets 3,540 4,162 Operating WCR 1,219 1,367 Total assets to be financed 4,759 5,529 Equity 1,984 2,323 Provisions 385 417 Other current assets and liabilities 375 361 Net debt 2,015 2,428 Total financing 4,759 5,529 39 07/24/2019 H
Slide 40: Change in net debt
Change in net debt 2,428 +382 In €m Operating cash flow: -€110m (€62m in H1 2018) +235 +132 -8 1,578 +211 +13 -325 +106 +105 Invest. Cash Tax Operating Other Other, non flow and financial WCR operations Dividends Currencies operating IFRS 16 expense Debt end- Debt June 2018 2019 40 07/24/2019 Half-y
Slide 41: Ratios at June 30
Ratios at June 30 WCR as % of sales 23.9% 23.1% 21.5% 21.9% 21.1% 21.1% 20.2% 19.0% 18.4% 19.1% 17.6% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Net debt-to-equity 0.5 0.5 0.4 0.4 0.4 1.2 1.0 0.2 0.3 1.0 0.1 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Net debt/adjusted EBITDA*
Slide 42: Outlook
04 OUTLOOK 42 07/24/2019 Half-year 2019 Sales and Results
Slide 43: Guidance for 2019
Guidance for 2019 H2 2019 expectations: ▪ More favorable than expected raw material environment ▪ But overall environment still complex 2019 OBJECTIVES ➔ Organic sales growth above 7% ➔ Based on current exchange rates, and considering the highly demanding second-half 2018: increase of around 6% in r
Slide 44: Contacts
Investor/Analyst relations Media Relations Groupe SEB Groupe SEB Financial Communication Corporate Communication Dept and Investor Relations Cathy Pianon C O N TA C T S Isabelle Posth cpianon@groupeseb.com Raphaël Hoffstetter Tel: +33 (0) 6 33 13 02 00 iposth@groupeseb.com rhoffstetter@groupeseb.com
Slide 45: Appendixes
05 APPENDIXES 45 07/24/2019 Half-year 2019 Sales and Results
Slide 46: IFRS 16 implementation - Estimated impacts
IFRS 16 implementation - Estimated impacts GROUPE SEB Impact on : 1 300 contracts Net Debt (FY 19) Stores + 346 M€ as of June 30 2019 Adjusted EBITDA (FY 19) No cash impact Offices + 80 M€ ORfA (FY 19) Warehous es + 8M€ Net Income (FY 19) Vehicles Around -5M€ 46 07/24/2019 Half-year 2019 Sales and R
Slide 47: Q2 sales
Q2 sales In €m Q2 2018 Q2 2019 As reported LFL EMEA 652 690 +5.9% +5.9% Western Europe 494 515 +4.2% +4.1% Other countries 158 175 +11.1% +11.4% AMERICAS 177 194 +9.5% +8.8% North America 112 121 +8.3% +2.3% South America 65 73 +11.5% +19.8% ASIA 481 523 +8.7% +8.6% China 357 396 +11.2% +11.9% Other
Slide 48: Glossary
Glossary On a like-for-like basis (LFL) – Organic Net debt – Net indebtedness The amounts and growth rates at constant exchange rates and consolidation scope in a This term refers to all recurring and non-recurring financial debt minus cash and cash given year compared with the previous year are cal
Slide 49: Agenda: next key dates
Next key dates AGENDA October 29 | after market closes 9-month 2019 sales and financial data 49 07/24/2019 Half-year 2019 Sales and Results