Seb Sa · EURONEXT:SK
Seb Sa — Groupe SEB — Investor Day (December 2023)
24 slides from Seb Sa's investor day presentation, Dec 14, 2023
Slide 1: SEB Professional Coffee: A Proactive Expansion Strategy
Capital Markets Day SEB PROFESSIONAL COFFEE A PROACTIVE EXPANSION STRATEGY Martin Zouhar EXECUTIVE VICE PRESIDENT, SEB PROFESSIONAL COFFEE DECEMBER 14, 2023 14/12/2023 1
Slide 2: SEB Professional Coffee, a proactive expansion strategy
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY A leadership position with 4 Our growth model complementary A highly attractive and key success brands market factors 14/12/2023 2
Slide 3: A leadership position with 4 complementary brands
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY A leadership position with 4 complementary brands 14/12/2023 3
Slide 4: A growth platform with sizeable impact
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY SEB Professional Coffee Acquired in FULL AUTO Acquired in FILTER Acquired in TRADITIONAL A growth 2016 2019 2023 platform with sizeable impact Global leader in professional fully #2 player in professional filter coffee Iconic Italian brand auto
Slide 5: A growing and profitable business
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY SEB Professional Coffee Sales (€bn) and ORFA margin (%) +10% CAGR A growing >0.8 >0.4 and profitable business 2016 2023E Sales weight of countries outside Europe <30% >50% ORFA* margin >15% >15% ORFA: Operating Result From Activity (ORFA) is Gr
Slide 6: SEB Professional Coffee: a fast-growing global leader
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY Multi-local SEB #1 30% +10% leader in 12 major countries Professional Globally in Full Auto PCM Market share globally in 2023e in Full Auto PCM Sales CAGR since 2016 inc. top 3 markets: China, USA, Germany Coffee: a fast-growing global leader…
Slide 7: …with differentiating capabilities all along the value chain
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY …with > €30m ~150 > 160 5 factories differentiating invested in innovation in 2023e R&D team members Active patents x1.4 vs. #2 with > 1,100 FTE in operations capabilities all along the Revenue split Presence in >100 > 800 70% value chain own s
Slide 8: A portfolio of complementary brands
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY Private Small Hotels Specialized QSRs Large Offices, public Households Offices & Restaurants Coffee Shops & Convenient stores spaces, cruise ships Synergies FULL AUTO A portfolio of complementary Price TRADITIONAL brands CONSUMER FILTER Capacit
Slide 9: A highly attractive market
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY A highly attractive market 14/12/2023 9
Slide 10: Attractive underlying market
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY At home Out-of-home fresh coffee consumption fresh coffee consumption +1% SHARE OF OUT-OF-HOME IN TOTAL: 30% +1% +1% Attractive 100 95 +4% 91 +3% -2% 86 81 45 underlying 31 35 40 38 market 2011 2015 2019 2022 2026F 2011 2015 2019 2022 2026F Ann
Slide 11: Massive growth potential
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY Out-of-home Fresh Coffee consumption Massive World average: 26 cups / year / capita 140 growth China total ~1-2 cups 63 72 76 85 91 potential 1 ~14 in China China Tier 3/4 cities China Tier 1/2 cities France USA UK Germany Japan Italy High shar
Slide 12: Coffee? More and more an ingredient for hot and cold drinks
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY Coffee? More and more an ingredient for hot and cold drinks Italy Germany USA Leading coffee chains: & Spain & Nordics & China share of cold drinks >75% SALTED CARAMEL ICED COCONUT ICED MANGO RISTRETTO ESPRESSO LUNGO FLAT WHITE CAPPUCCINO LATTE
Slide 13: Unique customer benefits of professional Full Auto
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY Unique customer benefits of professional Full Auto Speed to serve at peak time Fast Return on Investment Higher beverage menu varieties Time to prepare a cappuccino: Machine average payback: < 6 months Full Auto 25 seconds ProCare and Autoclean
Slide 14: Full Auto: the largest segment in PCM
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY 2023-2026 PCM Market by Product Category (Equipment only) CAGR Share of Growth ~5.5bn Filter +3% ~5% ~4.8bn ~300m ~280m ~1.0bn Traditional +5% ~20% Full Auto: ~850m the largest ~1.6bn ~2.2bn Full Auto +10% ~75% segment in PCM in 2026 ~2.0bn ~2.
Slide 15: Our growth model and key success factors
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY Our growth model and key success factors 14/12/2023 15
Slide 16: SEB Professional Coffee Growth Drivers
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY SEB Professional Coffee Growth Drivers Broad and diverse Right customer insights leading Ability to get major deals including customer base to right innovation, technology customization, one-stop-shop, and digital solutions full solution machin
Slide 17: Customer insights leading to right innovations
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY Customer insights leading to right innovations China Differentiating technology to our customers USA 30g brewing unit Espresso is an ingredient Black coffee filter taste for large drinks N° 1 type of coffee Consumers value fresh coffee, hot or
Slide 18: Impactful innovations and digital services
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY Impactful innovations and digital services 14/12/2023 18
Slide 19: Broad and diverse customer base with strong potential for growth
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY Broad and diverse customer base with strong potential for growth 65,000 Customers worldwide 14/12/2023 19
Slide 20: Strong ability to work together with leading chains
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY Strong ability to work together with leading chains >400 Dedicated front office staff 14/12/2023 20
Slide 21: Competitive edge in services, supported by digital tools
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY Competitive edge in services, supported by digital tools Competition SEB Professional Our enablers Coffee Field Service Module connected to ERP Business model Business model Mostly indirect service delivery Balanced between direct Digital funct
Slide 22: Together with our customers, we re-invent coffee as a life-centric experience
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY Together with Global leader with the most advanced trend setters Understanding coffee experiences from Italy to Germany, from China our customers, in coffee-based drinks to the USA we re-invent coffee as a “life-centric” Coffee as an ingredient
Slide 23: Leveraging our success in Professional Coffee to expand into the rest of the Professional space
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY Leveraging our success in Professional Coffee to expand into the rest of the Professional space to become a reference player 14/12/2023 24
Slide 24: Disclaimer
SEB PROFESSIONAL COFFEE, A PROACTIVE EXPANSION STRATEGY DISCLAIMER Some of the statements contained in this document may be forward- looking statements concerning Groupe SEB's financial position, results, businesses, strategy or projects. Groupe SEB considers that such statements are based on reason