Leifheit AG · XETR:LEI
Leifheit — German Equity Forum 2019
44 slides from Leifheit's conference presentation, Nov 27, 2019
Slide 1: Scaling-up Success
Scaling-up Success German Equity Forum Frankfurt/Main 25 – 27 November 2019
Slide 2: Disclaimer
Disclaimer This presentation contains forward looking statements which are based on the management’s current estimates with regard to future developments. Such statements are subject to risks and uncertainties which are beyond Leifheit’s ability to control or estimate precisely, such as statements o
Slide 3: Agenda
Agenda • Introduction to Leifheit • Key Strategic Initiatives • Financial Figures 9M 2019 • Forecast Financial Year 2019 • Annex German Equity Forum Nov 2019 3
Slide 4: Introduction to Leifheit
Introduction to Leifheit
Slide 5: Solid base to build on
Introduction to Leifheit Solid base to build on Commitment to shareholders Strong products and brands in € 1.50 1,50 Dividend payments 1984 - 2018 1.00 1,00 0.50 0,50 0.00 0,00 Bonus/special dividend Dividend Strong financial structure Strong long-term stock performance in € m above SDAX level Asset
Slide 6: Leifheit Group
Introduction to Leifheit Leifheit Group Household Wellbeing Private Label Kitchen Standing Laundry Care Cleaning Kitchen goods Personal scales Kitchen scales goods Dryers Rest of Wellbeing World 9% Germany Laundry 3% 42% Kitchen Care Eastern Goods Turnover by 17% 40% Europe Turnover product 12% by r
Slide 7: Introduction to Leifheit
Introduction to Leifheit German Equity Forum Nov 2019 7
Slide 8: Present in leading Distribution Channels
Introduction to Leifheit Present in leading Distribution Channels Blue Chip Client Base Distribution Channels Turnover in % (previous year’s figures) Electro Others 3 (3) 5 (5) Cash & Carry 3 (4) Hypermarkets Discounter 30 (30) 8 (8) Top 10 Customers Importers/ Turnover 2018: account for 50% Exporte
Slide 9: Operating in more than 80 Countries with 15 own Branches
Introduction to Leifheit Operating in more than 80 Countries with 15 own Branches Paris/F (Leifheit/Birambeau) Nassau/D (Leifheit/Soehnle) • About 80 employees • About 320 employees • Marketing, sales • Marketing, sales, development, quality and administration assurance, central administration • Man
Slide 10: Urgent Need for Change
Introduction to Leifheit Urgent Need for Change Gross Profit EBIT1 in € m in € m 112.6 109.9 102.1 21.8 20.3 12.8 +4% -2% -7% 25 +13% -7% -37% 12,00% 120 47.5% 46.4% 43.6% 45,0% 9.2% 10,00% 20 100 8.6% 40,0% 8,00% 80 35,0% 15 30,0% 5.5% 6,00% 60 10 25,0% 4,00% 40 20,0% 5 20 2,00% 15,0% 0 10,0% 0 0,0
Slide 11: New Strategy
Introduction to Leifheit New Strategy German Equity Forum Nov 2019 11
Slide 12: Key Strategic Initiatives
Key Strategic Initiatives
Slide 13: Our Purpose? Happy Consumers!
Key Strategic Initiatives Our Purpose? Happy Consumers! Better Value for Money Demand Demand Profit, Stability, Growth Making Life at Home easy & convenient German Equity Forum Nov 2019 13
Slide 14: Increased Marketing Investments in Eastern Europe led to significant Growth Rates
Key Strategic Initiatives Increased Marketing Investments in Eastern Europe led to significant Growth Rates Consumer Marketing Spending Growth Rates in Relation to Turnover in % 11.3% 9.6% 3.0% 3.0% 2.6% 5.5%1 1.6% 1.1% 2.5% 0.7% 0.7% -2.9% 2017 2018 9M 2019 2017 2018 9M 2019 Germany Eastern Europe
Slide 15: Scaling-up Success
Key Strategic Initiatives Scaling-up Success Country Results 2018 Household and Wellbeing Business Germany Czech Republic Consumer 0.7 % Marketing Spend 4.4 % % of Turnover 1,448 Number of active 986 SKU Turnover per 2,39 € 2,49 € Household Contribution 37 % 43 % Margin Consumer 60 % 100 % Demand In
Slide 16: CEO's Strategic Review
Key Strategic Initiatives CEO’s Strategic Review Analysis of Status Quo Improvement Initiative - Identified Strategy Increase revenues through pre-tested mass consumer advertising Flat revenues on profitable consumer-preferred best sellers Distribution in additional retail chains and high pote
Slide 17: New Management identified Strategy to address Growth Themes
Key Strategic Initiatives New Management identified Strategy to address Growth Themes Focus KPIs Growth Profitability Level of Completion 1 ● Invest in pre-tested and scalable 2019 2020 2020+ high ROI consumer advertising Create consumer on profitable best sellers Concept Realisation Impact Revenue
Slide 18: Create consumer demand and make brand stronger
Key strategic initiatives 1 Create consumer demand and make brand stronger Marketing spend 2018 in % of turnover EBIT margin 25 Unilever 1 20 P&G 1 Beiersdorf1 15 Adidas1 10 Leifheit 5 0 Marketing spend 0 5 10 15 20 25 1 Source: Annual reports 2018 German Equity Forum Nov 2019 18
Slide 19: Creating and pre-testing effective ads
Key strategic initiatives 1 Creating and pre-testing effective ads German Equity Forum Nov 2019 19
Slide 20: Increase distribution
Key strategic initiatives 2 Increase distribution Turnover development Italy Household and Wellbeing in € m 5 -24% 8% 41% 4,5 4 3,5 3 2,5 2 1,5 1 0,5 0 2017 2018 2019 Turnover 9M German Equity Forum Nov 2019 20
Slide 21: Improve Gross Margin
Key Strategic Initiatives 3 Improve Gross Margin Focus on profitable Products Win-Win Retail Negos Make in Europe Buy in Asia Sales deductions + promotional allowances in % of sales 1 23.8 24.5 21.8 21.6 22.0 Average Contribution ~42% ~34% Margin 1 2015 2016 2017 2018 2019 9M 1 Household and Wellbei
Slide 22: Boost Profitability Rockets
Key Strategic Initiatives 3 Boost Profitability Rockets Product A Product B Product C Product D… medium medium medium Contribution Margin … medium medium medium Level of Distribution … Quality and … Consumer Satisfaction Boost Consumer Marketing German Equity Forum Nov 2019 22
Slide 23: High Consumer Satisfaction with Leifheit Top Products
Key Strategic Initiatives 3 High Consumer Satisfaction with Leifheit Top Products Profi Floor Wiper Clean Twist Pegasus 150 Linomatic 500 Deluxe 4.6 stars 4.5 stars 4.4 stars 4.1 stars German Equity Forum Nov 2019 23
Slide 24: Reduce all Cost except Consumer Advertising
Key Strategic Initiatives 4 Reduce all Cost except Consumer Advertising % of Group Sales FY 2018 Further Outlook Consumer Marketing 0.7% Other Marketing 5.4% R&D 2.3% Logistics 1 11.0% Administration 6.1% Cost of Turnover 56.4% 1 not including inbound cost German Equity Forum Nov 2019 24
Slide 25: Financial figures nine months 2019
Financial figures nine months 2019
Slide 26: Key Financial Highlights
Financial figures nine months 2019 Key Financial Highlights 1 2 3 At EUR 177.2 million, Group EBIT at About 10% turnover Group turnover on par EUR 7.1 million following growth in TV advertising with previous year EUR 8.7 million in test market Eastern previous year Europe 4 5 6 Turnover growth sligh
Slide 27: Group Turnover on par with Previous Year
Financial figures nine months 2019 Group Turnover on par with Previous Year Group Turnover by Segment Group Turnover by Segment 9M 2018 vs 9M 2019 in € m 9M 2019 Private 177.0 177.2 Label 12.6 % 180 79.5 % Household 23.1 22.3 160 Wellbeing 7.9 % Wellbeing 14.0 14.0 140 Private Label Household 120 10
Slide 28: Strong growth in TV-advertising Test Market Eastern Europe
Financial figures nine months 2019 Strong growth in TV-advertising Test Market Eastern Europe Group Turnover by Region Group Turnover by Region 9M 2018 vs 9M 2019 in € m 9M 2019 90 3.6 % 80 77.6 75.3 9M 2018 12.4 % Germany 74.1 73.7 42.5 % 9M 2019 70 Central Europe 60 Eastern Europe 50 Rest of the 4
Slide 29: Group EBIT at EUR 7.1 million in line with forecast
Financial figures nine months 2019 Group EBIT at EUR 7.1 million in line with forecast 9M 2018 9M 2019 ∆ Group Turnover €m 177.0 177.2 0.1% Gross margin % 43.4 42.8 -0.6 pps EBIT €m 8.7 7.1 -18.5% EBIT margin % 4.9 4.0 -0.9 pps Earnings before taxes (EBT) €m 7.9 6.1 -22.4% Net result for the period
Slide 30: Free Cash Flow improved, still too much impacted by Working Capital
Financial figures nine months 2019 Free Cash Flow improved, still too much impacted by Working Capital in € m 9M 20182 9M 2019 ∆ Cash flow from operating activities 7.6 11.8 4.2 Cash flow from investment activities 11.1 -4.1 -15.2 Cash flow from financing activities -10.0 -10.5 -0.5 Change in cash a
Slide 31: Forecast Financial Year 2019
Forecast Financial Year 2019
Slide 32: EBIT of around € 9 m to € 10 m expected
Forecast Financial Year 2019 2019: Turnover Growth slightly below 1%, EBIT of around € 9 m to € 10 m expected Economic ► Slowdown in growth due to increasing global and economic tensions environment ► Economic slowdown in the EU despite good domestic demand 2019 ► Retail trade growth in Germany weak
Slide 33: Annex
Annex
Slide 34: Long-term Financial Overview
Annex Long-term Financial Overview 2014 2015 2016 2017 2018 Group Turnover €m 220.7 231.8 237.1 236.8 234.2 Profitability Gross margin % 47.7 46.7 47.5 46.4 43.6 Cash flow from operating activities €m 24.5 20.8 21.8 7.2 10.2 Free cash flow €m 18.4 14.1 14.3 1.5 3.7 EBIT €m 21.5 21.7 22.1 18.
Slide 35: Long-term Financial Overview
Annex Long-term Financial Overview 2014 2015 2016 2017 2018 Per Share1 Net result for the period2 € 1.49 1.51 1.53 1.35 0.88 Free cash flow € 1.94 1.48 1.51 0.16 0.39 Dividend € 0.90 1.00 1.05 1.05 1.05 Special dividend € -- 0.38 0.40 -- -- Investments €m 6.2 7.1 7.8 7.8 6.6 Depreciation €m 6.3 5.8
Slide 36: Experienced Management Board
Annex Experienced Management Board Henner Rinsche Ivo Huhmann Igor Iraeta Munduate CEO CFO COO born 1970 born 1969 born 1974 Previous experience Previous experience Previous experience • President Europe at • Many years of management • Many years of experience SodaStream experience at C-Level as CTO
Slide 37: Committed to Shareholder Returns
Annex Committed to Shareholder Returns Long-term dividend development Dividend yield 1 Dividend per share / in € 2018: 5,9% 2014: 3,9% 2017: 3,8% 2013: 5,3% 2016: 5,1% 2012: 5,2% 2015: 5,6% 2011: 6,3% 1,50 2018: 1.05 € 1,00 0,50 -1 0,00 1985 1997 2009 1984 1986 1987 1988 1989 1990 1991 1992 1993 199
Slide 38: Leifheit Awards (Selection)
Annex Leifheit Awards (Selection) Rotary dryer Rotary dryers Laundry dryers LinoProtect 400 Linomatic Pegasus Floor wiper Ironing Boards Profi micro duo Airboard Isolation jug Window vaccum Cordless vaccum Steam Mop Columbus cleaners Regulus PowerVac 2in1 CleanTenso German Equity Forum Nov 2019 38
Slide 39: Soehnle Awards (Selection)
Annex Soehnle Awards (Selection) Kitchen Scale Kitchen Scale Kitchen Scale Page Profi Page Profi 300 Genio White * Body analysis scale Blood pressure monitor Luggage scale Shape Sense Connect 200 Systo Monitor Connect 300 Travel German Equity Forum Nov 2019 39
Slide 40: Leifheit – 60 Years of Passion
Annex Leifheit – 60 Years of Passion for Housework 2010 1984 • Sale of the business unit • IPO of Leifheit AG ‘bathroom’ including the brands Spirella, Kleine Wolke and Meusch 1988 2008 • License agreement for • Takeover of 60% of Dr Oetker Bakeware Herby/F • Acquisition of Spirella and Kleine Wolke
Slide 41: European Competitors by Category
Annex European Competitors by Category Cleaning Laundry care Spontex Brabantia Vileda Artweger Rival Tonkita Swiffer Juwel Wenko Gimi Stewi Vileda Metaltex Kärcher Rörets Blome Kitchen goods Wellbeing Tescoma WMF Laica Gefu Bosch Rösle Tanita Zyliss Lurch ADE Homedics Oxo Fackelmann Sanitas Beurer E
Slide 42: Significant free Float and international Investors
Annex Significant free Float and international Investors Shareholder Structure March 2019 • MKV Verwaltungs GmbH, Grünwald (GER), 10.03% 10.03% • Joachim Loh, Haiger (GER), 8.26% 8.26% • Leifheit AG Nassau (GER), treasury shares, 4.91% 4.91% 47.63% • Alantra EQMC Asset Management, SGIIC, SA, Madrid
Slide 43: Financial Calendar and Contact
Annex Financial Calendar and Contact Dates 2019/2020 Contact 25 – 27 Nov 2019 Corporate Communications / Investor Relations German Equity Forum, Sheraton Frankfurt Hotel Presentation on 27 Nov at 1:30 (CET) p.m., Phone: +49 2604 977-218 Room Oslo Email: ir@leifheit.com 25 Mar 2020 www.leifheit-group
Slide 44: Aktiengesellschaft Postfach 11 65 D-56377 Nassau
Aktiengesellschaft Postfach 11 65 D-56377 Nassau