Seb Sa · EURONEXT:SK
Seb Sa — Groupe SEB — H1 2023 Earnings Presentation
55 slides from Seb Sa's earnings presentation, Jul 27, 2023
Slide 1: First-Half 2023 Sales and Results
FIRST-HALF 2023 SALES AND RESULTS Ecully | July 27, 2023 Click here to listen to our webcast or find us at www.groupeseb.com
Slide 2: Note
FIRST-HALF 2023 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: Summary
S U M M A RY 1. Improving business trends in H1 2. Results analysis 3. Balance sheet and financial structure 4. Conclusion & Outlook 5. Appendix 3 27/07/2023 H1 2023 sales and results
Slide 4: Improving Business Trends in H1
01 IMPROVING BUSINESS TRENDS IN H1
Slide 5: An economic environment that continues to be challenging
An economic environment that continues to be challenging ➢ Still uncertain overall macroeconomic and geopolitical context ➢ Post COVID demand normalisation for small domestic equipment, yet still uneven ➢ Retailers destocking pattern, inventory levels below historicals 5 27/07/2023 H1 2023 sales and
Slide 6: The Group returned to organic growth as anticipated
The Group returned to organic growth as anticipated ➢ Back to organic growth for the Consumer business in Q2 ➢ Outstanding momentum in the Professional business ➢ Progressive margin improvement as expected 6 27/07/2023 H1 2023 sales and results
Slide 7: A steady improvement path since low point reached in Q3 2022
A steady improvement path since low point reached in Q3 2022 Quarterly LFL Group revenue growth since 2022 +6,8% +0,4% -3,7% -5,1% -5,6% -8,1% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 7 27/07/2023 H1 2023 sales and results
Slide 8: Key figures at end-June 2023
Key figures at end-June 2023 H1 Sales Q2 Sales €3,612m €1,790m -1.5% +1.3% LFL +2.3% +6.8% LFL H1 ORFA Q2 ORFA €180m, ORFA margin 5.0% €115m, ORFA margin 6.4% vs €199m in H1 2022 vs €59m in Q2 2022 Net financial debt at 30/06/23 €2,346m vs €2,447m at end June 22 8 27/07/2023 H1 2023 sales and result
Slide 9: Back to organic growth in H1
Back to organic growth in H1 Sales in €m +47 -121 3,666 3,612 +20 Organic Currency Perimeter growth effect +1.3% -3.3% +0.5% -1.5 % H1 2022 H1 2023 9 27/07/2023 H1 2023 sales and results
Slide 10: An increasingly penalizing currency impact throughout H1
An increasingly penalizing currency impact throughout H1 In €m 20 10 0 - 10 - 20 Q1 : - €27m - 30 Q2 : - €94m - 40 - 50 H1 : - €121m - 60 - 70 Other CHF CZK AUD CAD JPY KRW ARS UAH EGP TRY CNY Autres MXN USD NOK GBP COP 10 27/07/2023 H1 2023 sales and results
Slide 11: Solid organic growth in Q2: +6.8%
Solid organic growth in Q2 : +6.8% Sales in €m +119 -93 +14 1,790 1,750 Organic Currency Perimeter growth effect +6.8% -5.3% +0.8% +2.3 % Q2 2022 Q2 2023 11 27/07/2023 H1 2023 sales and results
Slide 12: Q2 sales by business
Q2 sales by business Sales €1,790m +2.3% +6.8% LFL Professional Consumer €226m €1,565m +29.6% +21.0% LFL -0.7% +5.2% LFL 12 27/07/2023 H1 2023 sales and results
Slide 13: H1 sales by region
H1 sales by region ∆ 23-22 ∆ 23-22 Q2 23 vs 22 In €m H1 2022 H1 2023 reported LFL LFL EMEA TOTAL 1,494 1,489 -0.3% +3.1% +12.8% Western Europe 1,072 1,029 -4.0% -3.7% +3.3% Other countries 422 460 +9.0% +20.5% +37.3% AMERICAS TOTAL 515 458 -11.1% -10.0% -6.6% North America 358 315 -12.1% -14.5% -7.4
Slide 14: Review of Professional business
1 Review of Professional business 2 Review of Consumer business 14 27/07/2023 H1 2023 sales and results
Slide 15: Strong performance of the Professional business
Strong performance of the Professional business H1 sales €435m +31,7% +24,8% LFL Q2: +29.6% +21.0% LFL ▪ Outstanding growth across key historical markets (Germany, US, UK) with China as best performer ▪ Solid mix between large deals and core business (machine sales and services) ▪ Two acquisitions i
Slide 16: Acquisition H1 2023 – La San Marco
Acquisition H1 2023 –Acquisition 2023 - La San Marco La San Marco Consolidation in the Group’s accounts as from Q2 2023 2022 Sales: €20m 27/07/2023 H1 2023 sales and results
Slide 17: Acquisition H1 2023 – Pacojet
Acquisition H1 2023 – Pacojet Consolidation in the Group’s accounts as from Q3 2023 2022 Sales: €24m 17 27/07/2023 H1 2023 sales and results
Slide 18: Review of Consumer business
1 Review of Professional business 2 Review of Consumer business 18 27/07/2023 H1 2023 sales and results
Slide 19: Consumer business returned to organic growth in Q2
Consumer business returned to organic growth in Q2 H1 sales €3,177m -4.7% -1.0% LFL Q2: -0.7% +5.2% LFL ▪ Growth driven by Western Europe, Eastern & Central Europe and China ▪ Best selling categories included : Ingenio & Renew ceramic ranges in cookware, drinkware, oil-less fryers, rice cookers and
Slide 20: Improving sequential trend in Q2 across all regions in Consumer
Improving sequential trend in Q2 across all regions in Consumer Consumer sales by region over the period, vs 2022, LFL AMERICAS EMEA ASIA €458m / -10.0% €1,489m / +3.1% €1,231m / -2.2% +12.8% +2.2% -13.7% -6.6% -5.0% -6.1% Q2 Q2 Q1 Q1 Q2 Q1 Q1: -6.6% / Q2: +5.2% H1 2023: €3,177m / -1.0% vs 2022 27/0
Slide 21: EMEA
Q2 sales / €m 2022 2023 Reported LFL EMEA Western Europe 490 505 +3.0% +3.3% H1 Sales €1,489m Other EMEA 190 224 +17.6% +37.3% countries -0.3% +3.1% LFL Total EMEA 680 729 +7.1% +12.8% ▪ Most countries in EMEA back into positive territory ▪ France delivered double digit growth in Q2 boosted by linen
Slide 22: Americas
Q2 sales / €m 2022 2023 Reported LFL Americas H1 Sales €458m North America 185 172 -6.9% -7.4% South America 87 74 -15.0% -5.1% -11.1% -10.0% LFL Total Americas 271 246 -9.5% -6.6% ▪ Q2 sales improved sequentially in North America despite continued retail destocking and weak market demand ▪ Group co
Slide 23: Asia
Q2 sales / €m 2022 2023 Reported LFL Asia China 485 471 -2.7% +5.5% H1 Sales €1,231m Other Asian countries 139 119 -14.7% -9.4% -7.3% -2.2% LFL Total Asia 624 590 -5.4% +2.2% ▪ China returned to organic growth in Q2 thanks to successful premiumization strategy and multiple new product launches ▪ Sup
Slide 24: Consumer sales change by product line
Consumer sales change by product line (2023 Q2 Sales vs 2022, LFL) 35% Q2 sales, 2023: €1,565m, +5.2% LFL 25% 15% Home Comfort Linen Care 5% Beverage LKA Home Care Electrical cooking -5% Personal Care Food preparation Cookware -15% -25% * LKA : Large Kitchen Appliances 24 27/07/2023 H1 2023 sales an
Slide 25: Acquisition H1 2023 – Forge Adour
Acquisition H1 2023 – Forge Adour Consolidation in the Group’s accounts as from Q3 2023 2022 Sales: €25m 25 27/07/2023 H1 2023 sales and results
Slide 26: New logistics platforms in France to optimize inventories and deliveries
New logistics platforms in France to optimize inventories and deliveries ▪ €30m investment ▪ Dedicated to Cookware products for Western European markets ▪ Operational in 2025 Til-Châtel (Burgundy) Bully-Les-Mines (Hauts de France) ▪ €80m investment ▪ Dedicated to SDA products for Western European ma
Slide 27: Results Analysis
SEB 02 RESULTS ANALYSIS
Slide 28: Operating Result From Activity (ORFA)
Operating Result From Activity (ORFA) In €m H1 2022 H1 2023 Δ Δ LFL Q2 2022 Q2 2023 Δ Sales 3,666 3,612 -1.5% +1.3% 1,750 1,790 +2.3% ORFA 199 180 -€19m -€1m 59 115 +€56m ORFA margin 5.4% 5.0% -0.4pt -0.1pt 3.4% 6.4% +3.0pts 28 27/07/2023 H1 2023 sales and results
Slide 29: ORFA bridge: H1 2022 to 2023
ORFA bridge: H1 2022 ➔ 2023 In €m -31 +32 199 +35 -49 198 +12 Price COGS Growth drivers 180 Volumes Mix +2 Administrative -20 & commercial Currencies Scope expenses effect 2022 2023 2023 LFL 29 27/07/2023 H1 2023 sales and results
Slide 30: Growth drivers – H1
Growth drivers – H1 In €m 2022 2023 Δ tcpc Innovation 136 142 +5,8% Marketing and advertising 304 255 -12.9% Total growth drivers 440 397 -7.2% 30 27/07/2023 H1 2023 sales and results
Slide 31: From ORFA to Net profit – H1
From ORFA to Net profit – H1 In €m 2022 2023 Operating Result from Activity (ORFA) 199 180 Employee profit-sharing -13 -11 Other operating income and expenses -7 -9 Operating profit 179 160 Net financial expenses -47 -32 Tax -31 -31 Minority interests -30 -21 Net profit 72 76 31 27/07/2023 H1 2023 s
Slide 32: Balance Sheet and Financial Structure
03 BALANCE SHEET AND FINANCIAL STRUCTURE
Slide 33: Simplified balance sheet
Simplified balance sheet H1 2022 FY 2022 H1 2023 In €m Fixed assets 4,584 4,651 4,710 Operating WCR 1,808 1,393 1,427 Total assets to be financed 6,392 6,044 6,137 Equity 3,406 3,449 3,154 Provisions 307 272 272 Other current assets and liabilities 232 350 365 Net financial debt* 2,447 1,973 2,346 T
Slide 34: Change in Operating WCR
Change in Operating WCR H1 2022 FY 2022 H1 2023 €m % sales* €m % sales* €m % sales* Inventories 2,241 27.6% 1,682 21.1% 1,625 20.6% Receivables 676 8.3% 645 8.1% 694 8.8% Payables -1,109 -13.6% -933 -11.7% -893 -11.3% WCR 1,808 22.3% 1,393 17.5% 1,426 18.1% * Rolling 12-month 34 27/07/2023 H1 2023 s
Slide 35: Free cash flow generation – H1
Free cash flow generation – H1 In €m 308 Chg. Operating WCR 180 Amortization/ Employee 132 profit-sharing Investments Tax and Chg. non interest operating WCR and others ORFA Adjusted Free cash flow EBITDA 35 27/07/2023 H1 2023 sales and results
Slide 36: Change in net financial debt
Change in net financial debt 2,346 In €m +99 Other * +184 1,973 +26 Acquisitions FX effect +195 -132 Free Dividends cash flow Net financial debt Net financial debt end 2022 end-June 2023 36 27/07/2023 H1 2023 sales and results * Incl. restructuring and share buybacks
Slide 37: Ratios at June 30
Ratios at June 30 Operating WCR as % of sales* 22.3% 21.1% 20.2% 19.0% 18.4% 19.1% 17.6% 18,1% 16.8% 14.8% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net financial debt/equity 0.7 0.7 0,7 0.4 0.4 1.2 1.0 0.3 1.0 0.8 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net financial debt/adjusted
Slide 38: Conclusion & Outlook
04 CONCLUSION & OUTLOOK
Slide 39: Key take aways from H1 results
Key take aways from H1 results ➢ Back to organic growth for the Consumer business in Q2 ➢ Outstanding momentum in the Professional business ➢ Progressive margin improvement as expected ➢ Revenue & ORFA progression should continue in H2 ➢ Confidence in the industry’s long term growth prospects 39 27/
Slide 40: Actions to mitigate an adverse currency environment
Actions to mitigate an adverse currency environment ➢ Increasingly adverse currency fluctuations, stronger Euro expected in H2 ➢ Pronounced negative impact on the Group’s reported sales ➢ Based on current spot FX rates, adverse impact estimated to c. 5% of Group’s sales on a FY basis ➢ FX negative i
Slide 41: Full-year outlook update
Full-year outlook update 2023 Group Revenue: ▪ Mid single digit LFL growth with ✓ Positive LFL growth in Consumer ✓ Strong LFL growth in Professional Group ORFA: ▪ At least 10% growth 41 27/07/2023 H1 2023 sales and results
Slide 42: Thank you for your attention
’ ee THANK YOU FOR pe! MM | YOUR ATTENTION
Slide 43: Questions / Answers
SEB QUESTIONS / ANSWERS
Slide 44: Appendix
05 APPENDIX
Slide 45: Back into positive organic growth territory in H1
Back into positive organic growth territory in H1 H1 Sales €3,612m -1.5% +1.3% LFL Professional Consumer €435 m €3,177m +31.7% +24.8% LFL -4.7% -1.0% LFL 45 27/07/2023 H1 2023 sales and results
Slide 46: Consumer sales change by product line
Consumer sales change by product line (2023 H1 Sales vs 2022, LFL) 35% H1 sales, 2023: €3,177m, -1.0% LFL 25% Home Comfort 15% Linen Care 5% Personal Care -5% Beverage Electrical cooking LKA Home Care Food preparation Cookware -15% * LKA : Large Kitchen Appliances -25% 46 27/07/2023 H1 2023 sales an
Slide 47: Q1 sales by region
Q1 sales by region ∆ 23-22 ∆ 23-22 In €m Q1 2022 Q1 2023 reported LFL EMEA TOTAL 813 760 -6.5% -5.0% Western Europe 582 524 -9.9% -9.6% Other countries 231 236 +2.0% +6.7% AMERICAS TOTAL 243 212 -12.8% -13.7% North America 173 143 -17.6% -22.1% South America 70 69 -0.8% +7.2% ASIA TOTAL 703 640 -8.9
Slide 48: Q2 sales by region
Q2 sales by region ∆ 23-22 ∆ 23-22 In €m Q2 2022 Q2 2023 reported LFL EMEA TOTAL 680 729 +7.1% +12.8% Western Europe 490 505 +3.0% +3.3% Other countries 190 224 +17.6% +37.3% AMERICAS TOTAL 271 246 -9.5% -6.6% North America 185 172 -6.9% -7.4% South America 87 74 -15.0% -5.1% ASIA TOTAL 624 590 -5.4
Slide 49: Q2 Consumer sales by region
Q2 Consumer sales by region Other Asian countries 8% Western Europe 32% China 30% €1,565m +5.2% LFL South America 5% Other EMEA countries 14% North America 11% 49 27/07/2023 H1 2023 sales and results
Slide 50: H1 Consumer sales by region
H1 Consumer sales by region Other Asian countries 7% Western Europe 32% China 31% €3,177m -1.0% LFL South America 5% Other EMEA countries 15% North America 10% 50 27/07/2023 H1 2023 sales and results
Slide 51: Change in Consumer sales – Top 20 countries
Change in Consumer sales – Top 20 countries Q2 2023 vs Q2 2022, LFL EMEA +12.8% AMERICAS -6.6% ASIA +2.2% RUSSIA TURKEY Ukraine > 20% Romania FRANCE United Kingdom SPAIN MEXICO CHINA 0%→20% ITALY Netherlands Belgium GERMANY Poland Austria Brazil USA South Korea JAPAN < 0% Colombia TOP 10 COUNTRIES 5
Slide 52: Change in Consumer sales – Top 20 countries
Change in Consumer sales – Top 20 countries H1 2023 vs H1 2022, LFL EMEA +3.1% AMERICAS -10.0% ASIA -2.2% > 20% Turkey Ukraine Egypt MEXICO CHINA FRANCE United Kingdom Romania 0%→20% RUSSIA BRAZIL USA South Korea JAPAN GERMANY Netherlands SPAIN < 0% Colombia Belgium ITALY Poland TOP 10 COUNTRIES 52
Slide 53: 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 54: Contacts
Investor/Analyst Relations Media Relations Groupe SEB Groupe SEB Investor Relations and Corporate Communication Dept Financial Communication Dept C O N TA C T S Olivier Gernandt Cathy Pianon Guillaume Baron Anissa Djaadi ogernandt@groupeseb.com Marie Leroy gbaron@groupeseb.com presse@groupeseb.com T
Slide 55: Agenda
Upcoming event – 2023 AGENDA October 26 | after market Nine-month 2023 sales and financial data 55 27/07/2023 H1 2023 sales and results