V-zug Holding Ltd · SIX:VZUG
V-zug — FY2021 Earnings Presentation
42 slides from V-zug's earnings presentation, Mar 15, 2022
Slide 1: V-ZUG Group – Full-Year Report 2021
V-ZUG Group – Full-Year Report 2021 15 March 2022 vzug.com
Slide 2: Agenda
Agenda 1 V-ZUG Group – Overview 2 Markets 3 Products 4 Site Transformation 5 Financial Information FY 2021 6 Outlook 7 Investment Case 8 Q&A vzug.com 2
Slide 3: 1. V-ZUG Group – Overview
1. V-ZUG Group – Overview “Bringing simplicity into your home and creativity into your kitchen” vzug.com
Slide 4: Record high net sales leads to a significant increase of operating result
1. V-ZUG Group – Overview Record high net sales leads to a significant increase of operating result ▪ Net sales: CHF 623.7 million; CHF +54.3 million / +9.5% vs. PY ▪ Strong EBIT: CHF 62.7 million resp. 10.0% of net sales; New products and digital solutions CHF +13.5 million / +27.5% vs. PY ▪ Highli
Slide 5: FY 2021 at a glance – Medium-term targets achieved or in close sight
1. V-ZUG Group – Overview FY 2021 at a glance – Medium-term targets achieved or in close sight Targets Mid-term Expectation 2021 Report Card Total net sales 2 to 3% organic growth Growth 2021: +9.5%; net sales reached all-time high International sales Doubling within 5 years (2019 – 2024) Sales 2021
Slide 6: Strong organic growth of 9.5% despite tight situation in supply chains
1. V-ZUG Group – Overview Strong organic growth of 9.5% despite tight situation in supply chains Net sales [in CHF million] Net sales by region [in CHF million] 700 28.2 15.2% (+89.7%) 600 40.3 11.8% 26.1 11.3% (+21.5%) (+35.3%) 500 400 300 623.7 (+9.5%) 200 529.1 100 (+5.4%) 0 2019 2020 2021 % Inte
Slide 7: Significant increase of EBITDA and EBIT margin
1. V-ZUG Group – Overview Significant increase of EBITDA and EBIT margin Positive Free cash flow despite ongoing high investments, much higher inventories and increased tax payments EBITDA [in CHF million] Operating result (EBIT) [in CHF million] Free cash flow [in CHF million] 100 100 50 15.2% 42.0
Slide 8: An updated materiality matrix has been released
1. V-ZUG Group – Overview An updated materiality matrix has been released Considering input from various stakeholders (customers, investors, employees, BoD, ExCo) Four focus topics: ▪ Products and services for future fit society ▪ Healthy and committed employees ▪ Environment and climate protection
Slide 9: Sustainability
1. V-ZUG Group – Overview Sustainability Operational CO2 emissions in tons Appliances sold by energy efficiency class Number of women in management roles All Swiss-made V-ZUG appliances are Even under significantly stricter energy Proportion of women in top management CO2-neutral (via compensation).
Slide 10: Executive Committee and Staff Functions
1. V-ZUG Group – Overview Executive Committee and Staff Functions CEO V-ZUG Group Chief Executive Officer Peter Spirig Digital Transformation Sustainability Head of Digital Head of Sustainability Transformation and BD Marcel Niederberger Wolfgang Schroeder Sales and Service Human Resources Marketing
Slide 11: 2. Markets
2. Markets vzug.com
Slide 12: Switzerland and International – Growth in all markets
2. Markets Switzerland and International – Growth in all Share of net sales Switzerland and markets leads to significant increase of International (own brand & OEM) operating result ▪ Extraordinary strong growth in Swiss market of 5.4% with pandemic driving high demand. 2.5% 4.4% Market leadership i
Slide 13: ZUGORAMAs in Switzerland with facelifts; new V-ZUG Studios across the world
2. Markets General – ZUGORAMAs in Switzerland with facelifts; new V-ZUG Studios across the world ▪ Renovation of ZUGORAMAs in Bern (H1 21) and Chur (H1 22) ▪ Opening of several V-ZUG Studios in collaboration with distribution partners in 2021 ▪ Grand opening of V-ZUG Studio in London end of March 20
Slide 14: Marketing and media presence in Switzerland
2. Markets Marketing and media presence in Switzerland – SRF 10 vor 10 “Mieten statt Kaufen” Source: Swiss Radio and Television (SRF), 10 vor 10, «Mieten statt kaufen», 23 February 2022 vzug.com 14
Slide 15: Marketing and media presence in Singapore
2. Markets Marketing and media presence in Singapore – MasterChef Singapore with V-ZUG ambassador Ryan Clift Source: MediaCorp Pte Ltd., Singapore vzug.com 15
Slide 16: Marketing and media presence in Germany
2. Markets Marketing and media presence in Germany – FAZ, special publication “Zukunftshandwerk” Source: Frankfurter Allgemeine Zeitung, special publication «Zukunftshandwerk» - Eine Serie über Innovationsindustrie vzug.com 16
Slide 17: V-ZUG in the words of our business partners
2. Markets General – V-ZUG in the words of our business partners «With V-ZUG, GEFISWISS has found a reliable, local partner with whom we share the same values of sustainability and innovation. The concept of the short circuit is at the heart of the GEFISWISS philosophy and is thus close to the devel
Slide 18: Switzerland – From extraordinary demand to normalisation by steady growth until 2026
2. Markets Switzerland – From extraordinary demand to normalisation by steady growth until 2026 ▪ Short term: Extraordinary demand in Swiss market due to Covid-19 stimulated consumer behavior ▪ Mid term: Normalisation to steady growth driven by new build, refurbishments, replacements (approx. 1/3 ea
Slide 19: 3. Products
3. Products vzug.com
Slide 20: Excellence Line
3. Products Excellence Line «Die Geräte der neuen Excellence Line überzeugen durch das klare, schnörkellose Design. Ebenfalls sehr ansprechend ist die intuitive Bedienung über den virtuellen, jedoch haptisch erlebbaren CircleSlider.» Thomas GYGAX – Gygax Architekten AG, Wabern «With its unpretentiou
Slide 21: Extending the Excellence Line product range: PowerSteam and Miwell
3. Products Extending the Excellence Line product range: PowerSteam and Miwell PowerSteam is a world first and a significant testimony to V-ZUG's The new Miwell microwave can be integrated seamlessly into the Excellence outstanding expertise in combining steam and microwave preparation in Line and t
Slide 22: CombiCookTop and WineCooler further strengthen premium positioning
3. Products CombiCookTop and WineCooler further strengthen premium positioning CombiCookTop with integrated extractor fan, offering various configurations The new WineCooler features a new design and upgraded technology such for more performance and flexibility. New concept in grease and odor filtra
Slide 23: New digital solutions introduced/updated in 2021
3. Products New digital solutions introduced/updated in 2021 ▪ V-ZUG Home App – Updated with launch of new Excellence Line by a range of new functionalities ▪ V-Kitchen – Digital assistant for inspiration, menu planning and grocery shopping to reduce food waste ▪ V-Upgrade – Acquisition of additiona
Slide 24: 4. Site Transformation
4. Site Transformation vzug.com
Slide 25: Zug: Construction of new production building “Zephyr Ost” started
4. Site Transformation Zug: Construction of new production building “Zephyr Ost” started in May 2021 and is well on track Administration / R&D “Zephyr West” Presses / Surface (2026) Technology “Zephyr Hangar” (2020) Logistics Centre “ZUGgate” (2008) Core of the vertical factory “Zephyr Ost” (2023) S
Slide 26: Sulgen: New refrigerator factory commissioned
4. Site Transformation Sulgen: New refrigerator factory commissioned ▪ Relocation of V-ZUG Kühltechnik AG to new factory in Sulgen is a milestone in transformation process of V-ZUG Group ▪ All equipment installations completed on schedule; production has been gradually shifted from Arbon to Sulgen.
Slide 27: 5. Financial Information FY 2021
5. Financial Information FY 2021 vzug.com
Slide 28: Result – V-ZUG Group
5. Financial Information FY 2021 Result – V-ZUG Group in CHF million FY 2021 ∆ FY 2020 Net sales 623.7 9.5% 569.4 EBITDA 94.7 18.9% 79.6 EBITDA margin in % 15.2 120 bp 14.0 Operating income (EBIT) 62.7 27.5% 49.2 EBIT margin in % 10.0 140 bp 8.6 Free cash flow 9.0 n/a 42.0 ROCE in % 1) 17.0 280 bp 1
Slide 29: Growth in all markets and significant increase of operating result
5. Financial Information FY 2021 Growth in all markets and significant increase of operating result Net sales [in CHF million] EBITDA [in CHF million] Operating result (EBIT) [in CHF million] 700 100 94.7 100 623.7 90 90 600 569.4 79.6 543.6 80 80 500 70 70 62.7 60 56.9 60 400 49.2 50 50 300 40 40 2
Slide 30: Result – Household Appliances segment
5. Financial Information FY 2021 Result – Household Appliances segment in CHF million FY 2021 ∆ FY 2020 Net sales 623.7 9.5% 569.4 Operating income (EBIT) 58.1 25.9% 46.2 EBIT margin in % 9.3 120 bp 8.1 ROCE in % 1) 28.0 470 bp 23.3 ▪ FX neutral net sales growth of 9.2% ▪ Extraordinary high growth i
Slide 31: Result – Real Estate segment
5. Financial Information FY 2021 Result – Real Estate segment in CHF million FY 2021 ∆ FY 2020 Net sales – – – Operating income (EBIT) 5.4 47.2% 3.7 EBIT margin in % – – – ROCE in % 1) 3.5 80 bp 2.7 ▪ Increase of EBIT due to higher rent income related to the buildings “Zephyr Hangar” and “Buran” ▪ P
Slide 32: Noticeable increase in no. of FTEs as an investment into International Markets
5. Financial Information FY 2021 Noticeable increase in no. of FTEs as an investment into International Markets but also to fulfil market demand Total FTEs [as of 31 December; incl temps] CAPEX [in CHF million] R&D expenses [in CHF million & in % of Net Sales] 2’500 80 74.3 80 2’080 70 70 1’999 2’00
Slide 33: Cash flow statement V-ZUG Group
5. Financial Information FY 2021 Cash flow statement V-ZUG Group in CHF million FY 2021 FY 2020 Cash flow from operating activities 63.5 99.4 ▪ of which taxes paid -6.4 -0.7 Cash flow from investing activities -54.4 -57.4 ▪ of which investments in tangible assets -52.3 -53.6 ▪ of which investments i
Slide 34: Income Statement V-ZUG Group
5. Financial Information FY 2021 Income Statement V-ZUG Group in CHF million H2 2021 H1 2021 H2 2020 H1 2020 Net Sales 315.4 308.3 310.8 258.6 EBITDA 40.9 53.7 52.1 27.6 EBITDA in % of Net Sales 13.0% 17.4% 16.8% 10.7% Operating income (EBIT) 24.4 38.3 36.3 12.9 EBIT in % of Net Sales 7.7 % 12.4% 11
Slide 35: Balance Sheet V-ZUG Group
5. Financial Information FY 2021 Balance Sheet V-ZUG Group in CHF million 31.12.2021 in % 31.12.2020 in % Cash and cash equivalents incl. securities 117.3 19.0 107.8 19.4 Other current assets 166.8 27.1 137.7 24.8 Current assets 284.1 46.1 245.5 44.3 Tangible assets 295.4 47.9 270.1 48.7 Financial &
Slide 36: Dividend policy
5. Financial Information FY 2021 Dividend policy ▪ V-ZUG Holding AG pursues a dividend policy that is primarily based on the amount of distributable profit ▪ In the medium to long term, the profit distribution ratio should be between 20% and 40% of the group’s net result ▪ As communicated in context
Slide 37: Outlook 2022
6. Outlook Outlook 2022 ▪ V-ZUG is aware of, and has taken precautions for,… − Geopolitical developments may very well throw a wrench into the works of the global economy − Purchase cost increases and supply chain issues will remain a major challenge in 2022 – an easing is expected towards end of 20
Slide 38: Update of mid-term targets 2022 - 2026
6. Outlook Update of mid-term targets 2022 - 2026 Two medium-term targets announced at stock market listing already achieved; a third target well under way to being met in 2022 This gives rise to 3 new mid-term targets: Mid-term expectation Updated Total net 2 to 3% organic growth > 6% organic growt
Slide 39: 7. Investment Case
7. Investment Case vzug.com
Slide 40: Why invest in V-ZUG?
7. Why invest in V-ZUG? 1 2 3 4 5 Proven ability to Market leader in Well established and Ongoing ability to Sustainability generate double Switzerland with a recognised player in lead innovations in (quality, durability, digit EBIT margins unique and strong premium segment in the industry timeless
Slide 41: Q&A
8. Q&A vzug.com
Slide 42: Disclaimer
Disclaimer ▪ V-ZUG Holding AG (including all its affiliates) has made great efforts to include accurate and up-to-date information in this document. However, we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this documen