Seb Sa · EURONEXT:SK
Seb Sa — Groupe SEB — Investor Day (December 2023)
25 slides from Seb Sa's investor day presentation, Dec 14, 2023
Slide 1: Financial Track-Record and Ambition
Capital Markets Day FINANCIAL TRACK-RECORD AND AMBITION Olivier Casanova Senior Executive Vice President, Finance DECEMBER 14, 2023 14/12/2023 1
Slide 2: Robust & resilient business model, strong cash generation, ambitious objectives
FINANCIAL TRACK-RECORD AND AMBITION Robust Strong Ambitious & resilient cash generation & medium term business model solid balance sheet objectives 14/12/2023 2
Slide 3: Robust & resilient business model
FINANCIAL TRACK-RECORD AND AMBITION Robust & resilient business model 14/12/2023 3
Slide 4: Solid financial performance
FINANCIAL TRACK-RECORD AND AMBITION Sustained sales growth Steady ORFA margin 16% +€5bn Solid 14% 12% CAGR €8bn financial +7% 10% performance 8% 6% 10% Average ORFA margin 4% €2.9bn 2% 0% 2007 2022 14/12/2023 ORFA: Operating Result from Activity excl. discretionary and non-discretionary profit-shari
Slide 5: ...growing ORFA and strong Free Cash Flow generation
FINANCIAL TRACK-RECORD AND AMBITION …growing ORFA …and strong Free Cash Flow generation Which x2 €0.7bn materialized into… €0.3bn €4.4bn generated over 15 years (2008-2022) Free Cash Flow before dividend, M&A and other 2008 LTM 09/23 14/12/2023 5
Slide 6: Covid created huge volatility in demand...
FINANCIAL TRACK-RECORD AND AMBITION Quarterly LFL sales growth 2020-2023 Consumer Professional Covid 20-22 Covid 20-22 Covid created huge volatility in demand… Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2023 2
Slide 7: ...and strong headwinds
FINANCIAL TRACK-RECORD AND AMBITION 1.30 6,000 …and 1.25 1.20 Currencies 5,000 1.15 + Raw materials & Components 4,000 strong + Freight 1.10 3,000 1.05 2,000 headwinds 1.00 ~€0.6bn 1,000 0.95 0 0.90 EUR/USD parity Headwinds <2021-2022> Freight SCFI index since 2020 since 2020 14/12/2023 7
Slide 8: ...Yet Groupe SEB demonstrated again its resilience...
FINANCIAL TRACK-RECORD AND AMBITION In €bn In % 8 Sales ORFA margin 20 …Yet 6 15 Groupe SEB FX crisis COVID demonstrated 4 10 again Bottom ORFA its resilience… 2 margin 7.8% 5 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 LTM 09/23 14/12/2023 8
Slide 9: ...and its capacity to come back to its historical standards
FINANCIAL TRACK-RECORD AND AMBITION …and its capacity to come back to its historical standards Quarterly LFL Group revenue growth ORFA margin evolution 14/12/2023 9
Slide 10: ...thanks to its solid business model
FINANCIAL TRACK-RECORD AND AMBITION …thanks Leadership Innovation Pricing power to its solid business model Cost Scale competitiveness Balance 14/12/2023 10
Slide 11: Strong cash generation & solid balance sheet
FINANCIAL TRACK-RECORD AND AMBITION Strong cash generation & solid balance sheet 14/12/2023 11
Slide 12: Strong cash generation... priority allocations
FINANCIAL TRACK-RECORD AND AMBITION 2 priority allocations Strong cash Deliver shareholders’ generation… remuneration €4.4bn Boost future value FCF generated over 15 years* creation through M&A 14/12/2023 *Free Cash Flow before dividend, M&A and other, between 2008 and 2022 12
Slide 13: ...enabled a steady dividend growth
FINANCIAL TRACK-RECORD AND AMBITION 2.45 2.45 7.3% …enabled 15-year CAGR 1.95 2.14 Implied avg. a steady 1.82 payout > 30% dividend 1.40 1.56 growth 1.31 1.26 1.20 1.14 1.06 1.30 0.95 Covid crisis 0.85 0.85 In € per share 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 202
Slide 14: ...and a successful M&A track record...
FINANCIAL TRACK-RECORD AND AMBITION …and a successful M&A track record… Group sales in €m 2018 2020 7,960 7,354 2023 2005 2015 6,940 2011 6,812 2001 2019 2022 1972 2007 4,770 1997 3,963 2016 2,870 1968 1,764 1,825 2006 2004 1998 1988 A mix of transforming and add-on acquisitions 14/12/2023 Not to sc
Slide 15: ...based on complementarity...
FINANCIAL TRACK-RECORD AND AMBITION Product complementarity Moulinex 2001 Lagostina 2005 Krampouz …based on 2019 All-Clad EMSA Arno 2004 2016 1997 complementarity… Imusa 2011 Supor 2007 WMF 2016 Pacojet 2023 Zummo 2022 OBH Nordica 2015 Wilbur Curtis La San Marco 2019 2023 Geographic Business complem
Slide 16: ...which boosted value creation...
FINANCIAL TRACK-RECORD AND AMBITION In €bn +3.7 8.0 …which +1.9 boosted value 2.7 -0.3 creation… 14/12/2023 16
Slide 17: ...whilst maintaining a sound financial structure
FINANCIAL TRACK-RECORD AND AMBITION Net financial debt/ €1.9bn* Adjusted EBITDA Substantial financial flexibility exc. IFRS 16 …whilst maintaining 2.8 2.4 2.3 a sound financial 2.1 1.9 1.8 1.5 2.1 3.7 years** structure 1.9 Average maturity of debt 0.9 1.0 1.6 0.6 1.3 No financial covenant Ratios at
Slide 18: Ambitious medium term objectives
FINANCIAL TRACK-RECORD AND AMBITION Ambitious medium term objectives 14/12/2023 18
Slide 19: Groupe SEB sets strong ambitions over the next few years
FINANCIAL TRACK-RECORD AND AMBITION AT LEAST MID TERM Groupe SEB 5% LFL sales CAGR sets strong CLOSE TO 2024 Continued ambitions over substantial 10% ORFA the next few Margin FCF generation years TOWARDS MID TERM 11% ORFA Margin 14/12/2023 19
Slide 20: Consumer: well-armed to pursue its growth journey
FINANCIAL TRACK-RECORD AND AMBITION Markets Product categories Growth rate to accelerate Innovation Consumer: Emerging Markets Cookware: outperform the well-armed to above average growth market pursue its Western Europe and North Substantial growth in SDA: growth journey America: return to growth ▪
Slide 21: Professional: to become a meaningful contributor
FINANCIAL TRACK-RECORD AND AMBITION Coffee New Professional Segments Out-of-Home coffee consumption; growing Full Auto Selective acquisitions to Professional: penetration expand in promising adjacent segments to become China and NA: coffee & CVS chains; Europe: chains and > New growth platform a mea
Slide 22: Continue to enhance profitability...
FINANCIAL TRACK-RECORD AND AMBITION Strong profit drivers Continuous positive volume and price/mix effect, driven CLOSE TO 2024 by innovation Continue to 10% ORFA Margin enhance Operating leverage profitability… TOWARDS MID TERM 11% ORFA Margin Further normalization of input costs Relutive Professio
Slide 23: ...Allowing for attractive shareholder return and selective M&A
FINANCIAL TRACK-RECORD AND AMBITION Continuous substantial Dividend policy aiming at …Allowing Free Cash Flow generation steady annual dividend growth for attractive shareholder return and M&A policy designed to bring Efficient and sound financial selective M&A complementarity and add to structure p
Slide 24: Attractive investment case... and re-rating potential
FINANCIAL TRACK-RECORD AND AMBITION Attractive investment case… Continued Growing Robustness Strong expansion / promising markets of business model Free Cash Flow in Professional Pioneering Group culture Stable shareholder M&A sustainable & people base, sustaining as a growth catalyst approach commi
Slide 25: Disclaimer
FINANCIAL TRACK-RECORD AND AMBITION 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 reasonable assumptions but