Seb Sa · EURONEXT:SK
Seb Sa — Groupe SEB — Shareholder Meeting (May 2021)
83 slides from Seb Sa's shareholder meeting presentation, May 20, 2021
Slide 1: 2021 General Meeting
2021 GENERAL MEETING Écully | May 20, 2021 Follow the webcast of the meeting here or at www.groupeseb.com
Slide 2: Note
2021 GENERAL MEETING 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 trends in commodit
Slide 3: Introduction
SEB INTRODUCTION
Slide 4: Contents
CONTENTS 1. 2020: a very particular year 2. An extremely dynamic start to the year 2021 – 2021 assumptions 3. Capital, dividend and share price 4. Governance and compensation 5. Statutory Auditors' reports 6. Questions and answers 7. Voting results of the resolutions
Slide 5: 2020: A Very Particular Year
01 2020: A VERY PARTICULAR YEAR
Slide 6: An unprecedented overall environment
An unprecedented overall environment ▪ Covid-19: an unprecedented health and economic crisis ▪ Impacts on retail and consumption ▪ Solid momentum in the Small Domestic Equipment market, specifically cooking appliances and Cookware ➔ Driven by the “stay at home” obligation... ➔... and the strong acce
Slide 7: Thanks to our 33,000 employees, customers, consumers
to our 33,000 employees, our customers, our consumers, our shareholders and all our stakeholders who have supported and accompanied us throughout this very special year. 7 05/20/2021 2021 General Meeting
Slide 8: 2020 Key figures
2020 Key figures Operational Result from Activity Sales €605m Net debt -18.2% -4.8% LFL €6,940m €1,518m -5.6% -3.8% LFL -€479m vs. 2019 Net profit €301m -20.9% Dividend proposed at the 2021 AGM €2.14 in respect of FY 2020 After free allocation of 1 new share per 10 existing 8 05/20/2021 2021 General
Slide 9: Sales, Results, Projects continued
1 Sales 2 Results 3 Projects continued 9 05/20/2021 2021 General Meeting
Slide 10: Development in sales 2019 to 2020
Development in sales 2019→ 2020 In €m 7,354 -276 -219 6,940 +81* Organic Currency growth effect Scope -3.8% -3.0% +1.2% -5.6% 2019 2020 *o/w €60m for StoreBound (5-month consolidation) 10 05/20/2021 2021 General Meeting
Slide 11: Resilient activity supported by the Consumer business
Resilient activity supported by the Consumer business Sales €6,940m -5.6% -3.8% LFL Professional Consumer €575m €6,365m -28.0% -30.7% LFL -2.9% -0.5% LFL 11 05/20/2021 2021 General Meeting
Slide 12: Consumer sales – LFL
Consumer sales – LFL 2020 total: €6,365m / -0.5% AMERICAS EMEA ASIA €876m/-0.2% €3,307m/+1.5% €2,182m/-3.4% + 8.5% + 9.1% + 5.2% -13.3% -9.0% -11.6% H1 H2 H1 H2 H1 H2 +7.8% sales growth in H2 12 05/20/2021 2021 General Meeting
Slide 13: Development in sales per product line
Development in sales per product line 15,0% 2020 sales growth, LFL Annual Consumer sales: €6,365m, -0.5% LFL 10,0% 5,0% Food Home preparation 0,0% comfort Electrical cooking Personal -5,0% Home care care Beverage Cookware -10,0% LKA* Linen care -15,0% *Large Kitchen Appliances 13 05/20/2021 2021 Gen
Slide 14: Professional
Professional Sales Organic growth €575m -30.7% -27.6% -33.8% H1 H2 ▪ Sales down significantly, equipment and maintenance/service ▪ Unfavorable comparatives in Professional Coffee Machine (PCM) ▪ HORECA industry severely hit by health restrictions 14 05/20/2021 2021 General Meeting
Slide 15: Sales, Results, Projects continued
1 Sales 2 Results 3 Projects continued 15 05/20/2021 2021 General Meeting
Slide 16: Operating Result from Activity (ORfA)
Operating Result from Activity (ORfA) In €m 2019 2020 Δ Δ LFL Sales 7,354 6,940 -5.6% -3.8% ORfA 740 605 -18.2% -4.8% Op. margin 10.1% 8.7% -1.4 pt 16 05/20/2021 2021 General Meeting
Slide 17: ORfA bridge, 2019 to 2020
ORfA bridge, 2019 ➔ 2020 In €m 740 -126 705 +23 -109 +9 -1 +60 605 +9 Volumes Price COGS Growth Administrative Currencies Scope Mix drivers & commercial effect expenses 2019 2020 2020 LFL 17 05/20/2021 2021 General Meeting
Slide 18: From ORfA to Net profit
From ORfA to Net profit En M€ 2019 2020 Δ% Operating Result from Activity (ORfA) 740 605 - 18,2 % Statutory and discretionary employee - 37 - 24 profit-sharing Other operating income and expense - 82 - 78 Operating profit 621 503 - 18,9 % Financial result - 61 - 60 Tax - 131 - 94 Non-controlling int
Slide 19: Simplified balance sheet
Simplified balance sheet 31/12/2019 31/12/2020 Δ €M In M€ Tangible fixed assets 4,263 4,250 - 13 Operating WCR 1,215 848 - 367 % of sales 16,5 % 12,2 % Total capital employed 5,478 5,098 - 380 Equity 2,628 2,735 + 107 Provisions 423 454 + 31 Other current assets and liabilities 430 391 - 39 Net fina
Slide 20: Change in debt
Change in debt In €m 1,997 Free cash flow Currencies 1,518 -752 -17 +101 +189 Dividends Acquisitions and other non operating Net debt Net debt end-2019 end-2020 20 05/20/2021 2021 General Meeting
Slide 21: Healthy and well-balanced financing structure
Healthy and well-balanced financing structure ▪ Diversified sources of financing (Bonds, Schuldschein, ORNAE, NEU 71 MTN, NEU CP…) ▪ No financial covenants ▪ New €500m bond issue, June 2020 (maturing 2025) 1,601 ▪ Syndicated credit line 66 52 43 maturity extended until 57 July 2022 535 539 502 50 28
Slide 22: Financial ratios
Financial ratios *excl. IFRS 16 2.8 2.4 2.1 1.9 1.8 1.3 1.2 1.9* 1.6* 1.1 1.0 1.0 0.9 0.7 0.8 0.6 0.5 0.3 0.4 0.3 0.3 0.6 0.1 0.2 10 11 12 13 14 15 16 17 18 19 20 Net debt/Adjusted EBITDA Net debt/Equity Ratios at 12/31 22 05/20/2021 2021 General Meeting
Slide 23: Sales, Results, Projects continued
1 Sales 2 Results 3 Projects continued 23 05/20/2021 2021 General Meeting
Slide 24: Digital First, Acquisitions, Product innovation, Sustainable approach
1 Digital First 2 Acquisitions and interest taken 3 Product innovation 4 Sustainable approach 24 05/20/2021 2021 General Meeting
Slide 25: Digital First
Digital First Livestreaming Virtual launches E-commerce DTC sales 35% of Consumer sales Brand.com +8 pts vs. 2019 Market places MORE CLOSER Digital investments to consumers ~60% of media investments DIGITAL M&A, stakes taken StoreBound, ChefClub Chefs Influencers 25 05/20/2021 2021 General Meeting
Slide 26: Bolstered by major online events
… bolstered by major online events Livestreaming Grand live Moulinex, France 1st session from November 2 to 8, 2020 > 300k live views ~ 4M views in replay 2nd session from May 19 to 26, 2021 Jamie Oliver Influencers China 26 05/20/2021 2021 General Meeting
Slide 27: Development of online Direct to Consumer sales
Development of online Direct to Consumer sales... ~100 online DTC points of sale at end-2020 +30 over the year Wmf.com brand website Supor marketplace on Tmall (China) Rowenta.es brand website Tefal marketplace on Wildberries (Russia) 27 05/20/2021 2021 General Meeting
Slide 28: Digital First, Acquisitions, Product innovation, Sustainable approach
1 Digital First 2 Acquisitions and interest taken 3 Product innovation 4 Sustainable approach 28 05/20/2021 2021 General Meeting
Slide 29: Opening-up to new business models (1/2)
Opening-up to new business models (1/2) Majority stake in StoreBound Unrivaled know-how in digital marketing ▪ Expertise in community management ➔ Product development ➔ Marketing ▪ Priority to the consumer experience Key figures > 1 million Instagram followers Important partnerships (brands, chefs,
Slide 30: Opening-up to new business models (2/2)
Opening-up to new business models (2/2)… SEB Alliance investment ▪ Leader in the production and distribution of cooking content ▪ Online recipes with communities, multiplatform ▪ Wide geographic coverage: Europe, US, China ▪ Launch in H1 2021 of a range of products under the "Chefclub by Tefal" bran
Slide 31: Exploring new consumer needs
... and exploring new consumer needs Micro-filtered water fountains for companies and restaurants + reusable New-generation electrically-assisted containers bike No distance to cover between the Exclusive industrial partnership with source and the place of consumption Angell Bike ➔ Industrialization
Slide 32: Digital First, Acquisitions, Product innovation, Sustainable approach
1 Digital First 2 Acquisitions and interest taken 3 Product innovation 4 Sustainable approach 32 05/20/2021 2021 General Meeting
Slide 33: Product offering adapted to new needs (1/3)
A product offering constantly adapted to meet new needs (1/3) Innovations in Professional Coffee WMF Expresso roll-out MyAppCafé coffee station at McDonald’s robot barista Schaerer Soul 33 05/20/2021 2021 General Meeting
Slide 34: Product offering adapted to new needs (2/3)
A product offering constantly adapted to meet new needs (2/3) Innovations in Small Domestic Equipment ➔ Home-made cooking connected Cookeo Touch & Icompanion XL Touch Easy Fry Arno New pan in South Korea Kitchen Chef Supor & Steam Tender Fried Air Fryer Nespresso Atelier Krups Silent Hi-Speed Blende
Slide 35: Product offering adapted to new needs (3/3)
A product offering constantly adapted to meet new needs (3/3) Innovations in Small Domestic Equipment ➔ Healthy home connected CUBE Robot X-PLORER SERIE 95 connected Rowenta Xforce vacuum cleaner range (new generation) INTENSE PURE AIR Connect Rowenta Clean & Steam, latest génération 35 05/20/2021 2
Slide 36: Digital First, Acquisitions, Product innovation, Sustainable approach
1 Digital First 2 Acquisitions and interest taken 3 Products innovation 4 Sustainable approach 36 05/20/2021 2021 General Meeting
Slide 37: Continuing our responsible approach in 2020
Continuing our responsible approach in 2020 Launch in France in 2020, roll-out in other European countries as of 2021 Professional insertion workshop in Paris Repair packages at a much lower price than new product (between 20 Repair of Small electrical appliances and 40%) Appliance rental service Su
Slide 38: Continuing our responsible approach in 2020
Continuing our responsible approach in 2020 6 sites equipped with solar panels: Development of the Good Design Campus Ecully, Is-sur-Tille and Pont- Playbook with APF France Handicap Evêque (France), Veenendaal, Montebello (USA) and Rionegro (Colombia) since Launch of a dedicated breakfast range: 20
Slide 39: The Group contributes to carbon neutrality
The Group contributes to carbon neutrality > 360m products sold each year * CO2 equivalent Reference year: 2016 ▪ Low carbon “product manufacturing” strategy (scopes 1 & 2 diagram above) ➔ Reducing greenhouse gas emissions (GHG) from industrial plants, increase the use of renewable energy ▪ “Product
Slide 40: The Year 2021 – An Extremely Dynamic Start
02 AN EXTREMELY DYNAMIC START TO THE YEAR 2021 – 2021 ASSUMPTIONS
Slide 41: Key figures at the end of March 2021
Key figures at the end of March 2021 Sales ORfA €1,852m €198m +27.4% +30.9% LFL vs. €18m Q1 2020 Net Debt €1,465m €332m from IFRS 16 debt 41 05/20/2021 2021 General Meeting
Slide 42: Consumer business: buoyant momentum
Consumer business : buoyant momentum Sales €1,722m +35.4% +39.1% LFL ▪ Strong demand for SDA and cookware items ▪ Quality sales / less promotional environment ▪ Sharp acceleration in March vs low comps ▪ Growth fueled by: • All geographies • All categories (except for fans) • E-commerce channels ▪ P
Slide 43: Top countries – Consumer sales, Q1 2021
Top 20 countries – Consumer sales, Q1 2021 vs 2020, LFL EMEA + 41,5 % AMERICAS + 61,0 % ASIA + 29,1 % FRANCE ITALIA Poland Roumania Canada USA > 60% Turkey Ukraine > 30% Belgium RUSSIA BRASIL Colombia CHINA Mexico > 15% GERMANY SPAIN Netherlands SOUTH KOREA JAPAN United-Kingdom 43 05/20/2021 2021 Ge
Slide 44: Professional: still heavily impacted in Q1
Professional : still heavily impacted in Q1 Ventes €130m -28.7% -26.2% LFL ▪ Professional Coffee severely hit by ongoing crisis of the Horeca industry, still largely under lockdown ▪ Diversified go-to-market strategy allowing to maintain significant core business and to fuel future order book ▪ Remi
Slide 45: Outstanding performances
Outstanding performances Operating Result from Activity €198m vs €18m in Q1 2020 ▪ Reminder: Q1 not representative of FY performance (business seasonality) ▪ Q1 2021 ORfA x11 vs highly atypical Q1 2020 • Robust sales momentum, quality sales • Strong industrial over-absorption (vs. under-absorption i
Slide 46: Solid financial structure
Solid financial structure Net Debt €1,465m* 31/03/2021 €1,518m at 31/12/2020 ▪ €53m reduction in net debt as compared to 31/12/2020 • EBITDA growth outpacing WCR increase • €375m net debt reduction as compared to 31/03/2020 ▪ Healthy and well-balanced financing structure *incl. IFRS 16 debt: €332m 4
Slide 47: Our assumptions for the full year
Our assumptions for the full year ▪ Following an excellent first quarter… ▪ We expect Q2 sales to remain very dynamic... • on a favorable comparable basis • with the Consumer business still driven by very strong demand • and a rebound in Professional Coffee linked to specific contracts ▪ … and a sta
Slide 48: Our assumptions for the full year
Our assumptions for the full year ▪ Under these conditions: • Reported sales growth could end up around 10% for 2021 ➔ including a negative currency impact of around -€100m • The ORfA margin for 2021 could be close to 10% ➔ including more penalizing headwinds (FX, raw materials and components, freig
Slide 49: Capital, Dividend and Share Price
03 CAPITAL, DIVIDEND AND SHARE PRICE
Slide 50: Share capital breakdown at 31/12/2020
Share capital breakdown at 31/12/2020 Treasury shares 0.3% Individuals 5.4% VENELLE INVESTISSEMENT** & Associates Free float 19.2% Institutional 50,3m shares GÉNÉRACTION Investors 40.9% (% of share capital, Members** 11.5 % Shareholders EGM) from Founding Group Other family shareholders** 1.2% FÉDÉR
Slide 51: Share capital breakdown at 12/03/2021
Share capital breakdown at 12/03/2021 Treasury shares 0.3% VENELLE INVESTISSEMENT** & Associates 14.9% GÉNÉRACTION Members** 9.7% Institutional Investors & Other 55,3 M actions concerted Shareholders individuals 46.5% (en % de capital AGE) voting block** from Founding Group 0.9% HRC** 6.4% FÉDÉRACTI
Slide 52: Free allocation of shares
Free allocation of shares Decision of the Board of Directors of February 23, 2021 ▪ Free allocation of ONE new share for TEN existing shares ➔ To all shareholders registered on March 2, 2021 ▪ Share capital increase on March 3, 2021 through the incorporation of reserves and/or retained earnings ➔ Is
Slide 53: Net earnings per share and dividend
Net earnings per share and dividend In €m 8.38 8 7.50 7.58 5.96 6 Base: 5.15 55m shares 4.54 4.81 4.01 4.08 4.14 4 3.45 2.00 2.14 2.14 2 1.44 1.54 1.72 1.25 1.32 1.39 1.43 1.17 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 * * Proposed Earning per share Dividend 53 05/20/2021 2021 General
Slide 54: 10-year share price performance
10-year share price performance Share Price as of May 19th : 150.5 € Market Capitalization: €8,328m 180 160 + 130 % 140 120 100 + 55 % 80 60 TSR over 10 years 40 + 166% dividends reinvested (vs. 117% for the CAC 40) 20 0 May-11 May-12 May-13 May-14 May-15 May-16 May-17 May-18 May-19 May-20 May-21 SE
Slide 55: Governance and Compensation
04 GOVERNANCE AND COMPENSATION
Slide 56: Composition of the Board of Directors
Composition of the Board of Directors (at 31 December 2020) Employee director Employee director shareholder 2 1 Nora Bey Laurent Henry Thierry de La Tour d’Artaise Brigitte Forestier 17 Members VENELLE FÉDÉRACTIVE FÉDÉRACTIVE Members VENELLE INVESTISSEMENT INVESTISSEMENT Sarah Chauleur Members Damar
Slide 57: The Board of Directors in 2020
The Board of Directors in 2020 54 97% Average Attendance age rate 50% 8 of women* Meetings * 7/14: director representing employee shareholders and directors representing employees are excluded from the calculation in accordance with the provisions of PACTE law 57 05/20/2021 2021 General Meeting
Slide 58: Audit and Compliance Committee
Audit and Compliance Committee (at 31 December 2020) Main work FSP Yseulys Costes ▪ Review of the draft half-year and Catherine Pourre annual financial statements Chairperson ▪ Review of the conclusions of the 3 ▪ internal audit work Determination of the annual audit members program for the followin
Slide 59: Governance and Remuneration Committee
Governance and Remuneration Committee (at 31 December 2020) Main work Peugeot Invest Jean-Noël Assets Labroue ▪ Monitoring of the succession plans for Bertrand Finet corporate officers and executive officers Chairperson 4 ▪ Recommendations on the compensation policy for directors, members corporate
Slide 60: Say on Pay
Say on Pay SAY ON PAY EX ANTE SAY ON PAY EX POST ▪ Resolution n°10: approval of all components ▪ Resolution n°8: approval of the of remuneration concerning all executive remuneration policy for corporate executive officers for the 2020 financial year officers (Chairman&CEO and COO) ▪ Resolution n°11
Slide 61: Compensation policy for executive directors
Compensation policy for executive directors PRINCIPLES STRUCTURE ▪ The remuneration policy is base on the following ▪ The various components of compensation form a principles balanced structure with a breakdown of approximately • Completeness and simplicity • 52/48% between annual compensation and l
Slide 62: Remuneration of the Chairman and CEO relating to 2020
Remuneration paid or awarded to the Chaiman and Chief Executive Officer relating to 2020 (resolution 11) ANNUAL REMUNERATION MEDIUM/LONG TERM REMUNERATION In €k 2018 2019 2020 Number 2018 2019 2020 Fixed remuneration awarded 900 1,000 1,000 Performance shares 18,000 18,000 18,000 Annual variable rem
Slide 63: Remuneration of the Chief Operating Officer relating to 2020
Remuneration paid or awarded to the Chief Operating Officer relating to 2020 (resolution 12) ANNUAL REMUNERATION MEDIUM/ LONG-TERM REMUNERATION From From 01/12/18 In €k 01/12/18 to 2019 2020 Number to 31/12/2018 2019 2020 31/12/2018 Performance shares 0 11,000 11,000 Fixed remuneration awarded 62 75
Slide 64: Remuneration of the members of Board of Directors
Remuneration of the members of Board of Directors PRINCIPLES ALLOCATION RULES ▪ The terms of directors’ remuneration are set by ▪ In 2019, the distribution rules were identical to the the Board of Directors pursuant to a proposal by previous year, i.e. a fixed portion (50%) and a the Governance and
Slide 65: Statutory Auditors' Reports
05 STATUTORY AUDITORS' REPORTS
Slide 66: Reports issued by the college of Statutory Auditors
Reports issued by the college of Statutory Auditors in respect to the 2020 financial year ▪ Report on the annual financial statements ▪ Report on the consolidated financial statements ▪ Special report on regulated agreements ▪ Report on the consolidated non-financial statement by the independent thi
Slide 67: Annual financial statements: unqualified certification
Annual financial statements: unqualified certification Report dated March 26, 2021 and contained in the Universal Registration Document on pages 318 to 322. ▪ BASIS FOR OPINION • Compliance with the applicable audit standards in France and the rules of independence. ▪ CONCLUSION OF OUR WORK “We cert
Slide 68: Consolidated financial statements: unqualified certification
Consolidated financial statements: unqualified certification Report dated March 26, 2021 and contained in the Universal Registration Document on pages 293 to 297. ▪ BASIS FOR OPINION • Compliance with the applicable audit standards in France and the rules of independence. ▪ JUSTIFICATION OF ASSESSME
Slide 69: Special report on regulated agreements
Special report on regulated agreements Report dated March 26, 2021 and contained in the Universal Registration Document on pages 359 to 362. Agreements approved in previous years which have been pursued during the last financial year: ▪ The Master Joint Research and Development Agreement cooperation
Slide 70: Report on the statement of non-financial performance
Report on the statement of non-financial performance by the independent third party Report dated March 26, 2021 and contained in the Universal Registration Document on pages 201 to 203. ▪ VERIFICATION OF THE STATEMENT OF NON-FINANCIAL PERFORMANCE CONTAINED IN THE MANAGEMENT REPORT • The description
Slide 71: Reports relating to Extraordinary General Meeting resolutions
Reports relating to the resolutions of the Extraordinary General Meeting Period of authorization Resolution Subject granted to the Board of Methods Directors Authorization enabling the company to reduce the capital by No. 14 canceling its own shares bought back in respect of the 14 months Within the
Slide 72: Questions and Answers
GROUPE - 06 7 QUESTIONS AND si ANSWERS
Slide 73: Written questions received ahead of the AGM
Written questions received ahead of the AGM Question #1: "You give shareholders an additional discount on the month of their birthday, on one single order. Would it be possible for shareholders to have the increased discount on Groupe SEB merchant website be applied to every order all year round?“ Q
Slide 74: Live questions
Live questions 74 05/20/2021 2021 General Meeting
Slide 75: Results of Votes on Resolutions
07 RESULTS OF VOTES ON RESOLUTIONS
Slide 76: Results of votes on resolutions
Results of votes on resolutions Resolutions of an ordinary nature Quorum : 82,25% Adopted at: Resolution 1 Approval of the separate financial statements for the year ended 31 December 2020 100% Resolution 2 Approval of the consolidated financial statements for the year ended 31 December 2020 100% Re
Slide 77: Results of votes on resolutions
Results of votes on resolutions Resolutions of an ordinary nature Quorum : 82,25% Adopted at: Resolution 9 Approval of the remuneration policy for directors. 100% Resolution 10 Approval of all components of remuneration referred to in Article L. 22-10-9 of the French Commercial Code concerning all e
Slide 78: Results of votes on resolutions
Results of votes on resolutions Résolutions à caractère extraordinaire Quorum : 82,14% Adopted at: Resolution 14 Authorization to be granted to the Board of Directors enabling the company to cancel its own shares 100% Resolution 15 Delegation of authority granted to the Board of Directors to increas
Slide 79: Results of votes on resolutions
Results of votes on resolutions Résolutions à caractère extraordinaire Quorum : 82,14% Adopted at: Resolution 19 Delegation of authority to be granted to the Board of Directors to increase the share capital by capitalizing retained earnings, profit, premiums or other items that may be 98.2% capitali
Slide 80: Thank you for your attention
THANK YOU FOR YOUR ATTENTION
Slide 81: 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 82: Contacts
Investor/Analyst relations Media Relations Groupe SEB Groupe SEB Financial Communication Corporate Communication Dept and Investor Relations Dpt C O N TA C T S Cathy Pianon Isabelle Posth Anissa Djaadi Raphaël Hoffstetter cpianon@groupeseb.com iposth@groupeseb.com adjaadi@groupeseb.com rhoffstetter@
Slide 83: Agenda: 2021 key dates
2021 key dates AGENDA July 23 | before market opens H1 2021 sales and results October 26 | after market closes Nine-month 2021 sales and financial data 83 05/20/2021 2021 General Meeting