Seb Sa · EURONEXT:SK
Seb Sa — Groupe SEB — Investor Presentation (December 2019)
66 slides from Seb Sa's investor presentation, December 2019
Slide 1: Groupe SEB Presentation November-December 2019
GROUPE SEB PRESENTATION November-December 2019
Slide 2: Disclaimer
Disclaimer 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 commodity prices,
Slide 3: Content
CONTENT 1. Groupe SEB in a Nutshell 2. ESG: A committed Group 3. H1-2019 Results 4. 9M-2019 Results 5. Outlook 6. Appendices
Slide 4: Groupe SEB in a Nutshell
01 GROUPE SEB IN A NUTSHELL
Slide 5: 2018 Key Figures
2018 Key Figures €6,812m €695m €419m 34,000 Sales, + 7.8% Operating Result LFL Net income employees from Activity €247m +1,300 41 Investments in own industrial sites innovation retail stores 5 Nov/Dec 2019 Groupe SEB presentation
Slide 6: The World Reference in Small Domestic Equipment
The World Reference in Small Domestic Equipment products sold 12 in the world every second million products sold every #1 in different product >350 year in more than categories and 150 countries in numerous geographic areas countries with leadership > 25 positions 6 Nov/Dec 2019 Groupe SEB presentat
Slide 7: Competing on a playfield exceeding €75bn
Competing on a playfield exceeding €75bn Global market sizes and breakdown by geography ~€45bn EMEA ~€23bn Asia EMEA Asia ~€8bn Americas Americas Small Domestic Appliances Cookware / Kitchenware Professional Coffee (SDA) (CW / KW) Machines 7 Nov/Dec 2019 Groupe SEB presentation
Slide 8: Main trends structuring our industry
Main trends structuring our industry Scale effect Improvement of technical capabilities in Asian countries Local approach Production New models Expansion Critical size Pure players (direct / marketplaces) of online Leadership By country and by segment Click & Mortars channel SDA AND CW / KW MARKET N
Slide 9: Groupe SEB: a long-term value-creation strategy
Groupe SEB: a long-term value-creation strategy Focus Strengthen our on growth competitiveness Optimize our industrial facilities… Strength and complementarity of our brands Optimize purchasing and logistics Product innovation Improve industrial productivity Multi-channel distribution strategy Simpl
Slide 10: An exceptional brand portfolio
An exceptional brand portfolio 10 Nov/Dec 2019 Groupe SEB presentation
Slide 11: An extensive and diversified offering, bolstered by innovation
An extensive and diversified offering, bolstered by innovation SMALL ELECTRIC APPLIANCES KITCHEN ELECTRICS COOKWARE - KITCHENWARE HOME AND PERSONAL CARE PROFESSIONAL Coffee machines Hotel Equipment 11 Nov/Dec 2019 Groupe SEB presentation
Slide 12: A constant focus on innovation
A constant focus on innovation >1,400 + de €247m 492 Passion for Innovation, people Investments patents one of the 5 values (R&D, Marketing, Design) (worldwide) of the Group 2018 figures Seb/Tefal Actifry Supor Tefal Tefal Ingenio Moulinex Rowenta Krups Moulinex Rowenta Tefal Original Steam Pro RC I
Slide 13: H1 2019 Product news: Steam'Up
H1 2019 Product news Steam’Up 13 Nov/Dec 2019 Groupe SEB presentation
Slide 14: H1 2019 Product news: Air Force Flex
H1 2019 Product news Air Force Flex 14 Nov/Dec 2019 Groupe SEB presentation
Slide 15: H1 2019 Product news: Köpüklüm
H1 2019 Product news Köpüklüm 15 Nov/Dec 2019 Groupe SEB presentation
Slide 16: H1 2019 Product news: Healthy & Tasty rice cooker
H1 2019 Product news Healthy & Tasty rice cooker 16 Nov/Dec 2019 Groupe SEB presentation
Slide 17: H1 2019 Product news: Cookware All Clad
H1 2019 Product news Cookware All Clad 17 Nov/Dec 2019 Groupe SEB presentation
Slide 18: Continued digital transformation: E-Commerce
Continued digital transformation E-Commerce 220 retailers connected via our websites Nearly 25% of Consumer sales E-Commerce Broader listings with pure players: +60% in 2018 E-marketing Digital offering 18 Nov/Dec 2019 Groupe SEB presentation
Slide 19: Continued digital transformation: Digital offering
Continued digital transformation Digital offering E-Commerce Applications: > 800,000 monthly users 15 connected products launched in 5 years Cookeo Connect: 25% of Cookeo sales Acquisition of 750g International E-marketing Digital offering Connected professional machines: Coffee connect 19 Nov/Dec 2
Slide 20: Continued digital transformation: E-marketing
Continued digital transformation E-marketing E-Commerce Media investment: >40% digital 60 million visits on Group websites Recruitment of data experts: 170 since 2015 Success of digital communities: E-marketing Digital offering Cuisine Companion / Cookeo / Cake Factory 20 Nov/Dec 2019 Groupe SEB pre
Slide 21: Recent success: Cake Factory
Continued digital transformation Recent success: Cake Factory 1st Facebook brand community dedicated to Cake Factory in September 2018 • 20,000 members in 5 months in the Facebook group • active community: 4 new conversations a minute Active influence campaign: • 350 influencers’ posts on Instagram
Slide 22: A multi-channel distribution strategy
A multi-channel distribution strategy Mass retail 21 % Specialists 19 % Traditional 18 % Online 25 % Group retail 7 % Others 10 % 22 Nov/Dec 2019 Groupe SEB presentation
Slide 23: Worldwide presence
Worldwide presence Other Asian countries 9% Emerging countries 44% China 24% €6,812m Western Europe 41% +7.8% LFL Mature countries 56% South America 5% North America 10% Other EMEA 12% Presence Leadership in nearly positions in over > 75 % of sales 150 countries 25 countries 23 Nov/Dec 2019 Groupe S
Slide 24: Professional coffee: new opportunities in espresso full-auto and filter coffee machines
Professional coffee: new opportunities in espresso full-auto and filter coffee machines Full autos – around 25% of the global market Filter – < 10% of the global market Global market Fully Automatic U.S market Coffee Machines – "Equipment" Filter Coffee Machines Penetration of Fully Automatic Coffee
Slide 25: A global approach
A global approach 25 Nov/Dec 2019 Groupe SEB presentation
Slide 26: An active acquisition strategy
An active acquisition strategy 8000 2005 2019 2016 2018 7000 1988 2011 6485 2001 6812 6000 1998 1972 4770 5000 2004 2007 4000 1997 1968 2870 2015 3000 2000 Ventes en M€ 1825 2006 Acquisitions 1764 1000 170 7 0 1953 1975 1998 2000 2007 2015 2016 2017 2018 26 Nov/Dec 2019 Groupe SEB presentation
Slide 27: M&A strategy: focus on complementarity
M&A strategy: focus on complementarity Product complementarity EMSA - 2016 Swizzz Prozzz - 2017 Wilbur Curtis - 2019 Ethera - 2017 Zahran - 2018 Geographical Business complementarity complementarity WMF - 2016 750g Int. - 2018 FeeliGreen - 2019 OBH Nordica - 2015 * Acquisitions of the last 5 years 2
Slide 28: A worldwide industrial organization
A worldwide industrial organization GERMANY Emsdetten FRANCE St Lô Vernon Diez 2/3 of products Selongey Erbach CHINA Geislingen Mayenne manufactured in- Is/Tille Hayingen Shanghaï Tournus Rumilly Riedlingen Taicang house Pont Evêque Marigny RUSSIA Shaoxing St Jean Hangzhou de Bournay St Petersburg Y
Slide 29: ESG: A Committed Group
PN ESG: | A COMMITTED GROUP
Slide 30: Shareholding structure at 31/12/2018
Shareholding structure at 31/12/2018 Free float = 44.2 % Free float = 31.0 % of of shares voting rights Treasury Individual French shares Individual French shareholders 1.1% shareholders 4.9% 4.4% Foreign shareholders 18.7% Foreign shareholders Founding Group 76.8 M effective Founding 27.6% 50.2 M s
Slide 31: Groupe SEB Executive Committee
Groupe SEB Executive Committee Thierry de La Tour d’Artaise Stanislas de Gramont Chairman and CEO Chief Operating Officer Nathalie Lomon Senior Executive VP, Vincent Tai Executive VP, Asia Finance Harry Touret Senior Executive VP, Cyril Buxtorf Executive VP, EMEA Human Resources Alain Leroy Martin Z
Slide 32: Our values
Our values Global vision Respect Leadership for change Passion for Products Pragmatism Loyalty Shared ambition Determination Innovator Know-how Corporate Social Trust Agility Daring High standards Responsibility Transparency ENTREPRENEURIAL PASSION RESPECT GROUP DRIVE FOR INNOVATION PROFESSIONALISM
Slide 33: Sustainable Development: at the heart of the Group's strategy
Sustainable Development: at the heart of the Group’s strategy Developing territories and community commitment Ensuring the Group’s ethical principles are respected Creating sustainable innovations to meet consumer needs Pursuing a social responsibility policy Reducing the environmental impact 33 Nov
Slide 34: Recycling to leverage circular economy
Recycling to leverage circular economy • Groupe SEB: pioneer in implementing a cookware recycling program in France ➔ 20 operations since 2012 ➔ 1 million products collected 2018 H1 2020 • Communication • Launch of recycling • Launch of 1st range campaign: recycling including fully recycled • Launch
Slide 35: Repairability to leverage circular economy
Repairability to leverage circular economy ▪ In 2018, 93% of SDA* volumes were repairable (75% fully and 18% mostly) ▪ 6,200 certified repairers around the globe ▪ 6m spare parts stocked in Faucogney for Europe ➔ Consumers subscribe: Repaired products in Europe (out of warranty) +40% in 5 years *exc
Slide 36: Groupe SEB sponsoring's actions
Groupe SEB sponsoring’s actions Public health Sports events programmes 6% 4% Others (schools…) Social & Human 16% rights 2 900 k€ 34% +9 % vs 2017 Employees of the Group Its purpose: fight against involved as volunteers social exclusion Cultural and artistic 16% 16 Fonds Groupe SEB 24% Since 2007, a
Slide 37: Groupe SEB sponsoring's actions: supported projects
Groupe SEB sponsoring’s actions 500 supported projects over 10 years: ➔ In China ➔ In Colombia ➔ In France creation and construction of 22 schools a social business program to benefit with the Institut Télémaque since 2005 2,000 street coffee vendors in Medellin (Tinteros) 940 youngsters supported 2
Slide 38: H1-2019 Results
INTENSE PURE AIR | H1-2019 RESULTS
Slide 39: Key figures at end-June 2019
Key figures at end-June 2019 Sales €3,337m +10.3% +8.4% LFL Consumer Professional €2,946m €391m +7.7% +7.2% +34.9% +20.1% LFL LFL 39 Nov/Dec 2019 Groupe SEB presentation
Slide 40: Key figures at end-June 2019
Key figures at end-June 2019 40 Nov/Dec 2019 Groupe SEB presentation
Slide 41: H1 sales
H1 sales In €m As H1 2019 Q2 2019 H1 2018 H1 2019 reported LFL LFL EMEA 1,337 1,401 +4.7% +5.0% +5.9% Western Europe 997 1,033 +3.6% +3.6% +4.1% Other countries 340 368 +8.0% +9.1% +11.4% AMERICAS 338 362 +7.3% +6.6% +8.8% North America 204 224 +9.5% +3.0% +2.3% South America 134 138 +3.9% +12.1% +1
Slide 42: ORfA construction
ORfA construction +25 -18 In €m -23 +56 -24 230 224 +11 208 -5 6.8% of 6.9% of 6.9% of sales sales sales Volumes Price COGS Growth Admin & Currencies Scope mix drivers comm. effect expenses 2018 2019 42 Nov/Dec 2019 Groupe SEB presentation
Slide 43: Change in net debt
Change in net debt 2,428 +382 In €m Operating cash flow: -€110m (€62m in H1 2018) +235 +132 -8 1,578 +211 +13 -325 +106 +105 Invest. Cash Tax Operating Other Other, non flow and financial WCR operations Dividends Currencies operating IFRS 16 expense Debt end- Debt June 2018 2019 43 Nov/Dec 2019 Grou
Slide 44: Ratios at June 30
Ratios at June 30 WCR as % of sales 23.9% 23.1% 21.5% 21.9% 21.1% 21.1% 20.2% 19.0% 18.4% 19.1% 17.6% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Net debt-to-equity 0.5 0.5 0.4 0.4 0.4 1.2 1.0 0.2 0.3 1.0 0.1 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Net debt/adjusted EBITDA*
Slide 45: 9M-2019 Results
asiee 9M-2019 RESULTS
Slide 46: Key figures at 30 September 2019
Key figures at 30 September 2019 Revenue €5,114m +10.5% +8.1% LFL Operating Result from €407m Activity +9.3% +5.5% LFL Net debt at 30/09/2019 €2,459m +€354m vs 30/09/2018 incl. an IFRS 16 impact of €344m and Wilbur Curtis and Krampouz acquisitions 46 Nov/Dec 2019 Groupe SEB presentation
Slide 47: Revenue growth detailed by business activity
Revenue growth detailed by business activity Revenue €5,114m +10.5% +8.1% LFL Consumer Professional €4,525m €589m +8.5% +7.5% LFL +28.6% +14.4% LFL 47 Nov/Dec 2019 Groupe SEB presentation
Slide 48: Organic sales growth per quarter
Organic sales growth per quarter 9-month performance 2017 2018 2019 In % +9.6% +7.5% +8.1% 12 11.5 10 8.6 8.8 8.4 8.5 7,7 8.4 8 8.2 7.4 7.8 2017 7.3 6 2018 2019 4 T1 T2 T3 T4 48 Nov/Dec 2019 Groupe SEB presentation
Slide 49: Analysis of 9-month 2019 sales growth
Analysis of 9-month 2019 sales growth In €m 5,114 +45 +64 +377 4,628 Organic Currency growth effect Scope* +8.1% +1.0% +1.4% +10.5% 9 months 9 months 2018 2019 * Wilbur Curtis (8 months) + JV in Egypt 49 Nov/Dec 2019 Groupe SEB presentation
Slide 50: Currency impact on 9-month 2019 sales
Currency impact on 9-month 2019 sales: +€45m In €m 30 25 +€45m 20 Q1: +€13m Q2: +€2m 15 Q3: +€30m 10 5 0 -5 -10 -15 CNY CHF EGP RUB BRL ARS KRW TRY MXN COP OTHERS JPY USD 50 Nov/Dec 2019 Groupe SEB presentation
Slide 51: 9-month 2019 sales
9-month 2019 sales In €m 9 months 9 months As 9 months Q3 2019 2018 2019 reported 2019 LFL LFL EMEA 2,053 2,180 +6.2% +5.7% +7.1% Western Europe 1,536 1,586 +3.2% +3.1% +2.4% Other countries 517 594 +15.0% +13.4% +21.7% AMERICAS 573 630 +10.2% +8.7% +11.6% North America 357 400 +12.2% +6.5% +11.2% S
Slide 52: Breakdown of sales by region
Breakdown of sales by region Other Asia Emerging countries Mature countries 8% 47% 53% Western Europe 37% China 27% €5,114m €5,114m +8.1% LFL +8.1% LFL South America 5% Other EMEA 12% North America 11% 52 Nov/Dec 2019 Groupe SEB presentation
Slide 53: Western Europe
Western Europe Reminder Western Europe (€m) 2018 2019 REPORTED LFL LFL 2018 9-month sales 1,536 1,586 +3.2% +3.1% +1.1% Q3 sales 539 553 +2.4% +2.4% +0.7% ▪ LFL Q3 growth driven by sustained core business and LPs ▪ Contrasted performance by country: ➔ France: ~5% growth in Q3 driven by LP and flagsh
Slide 54: Other EMEA Countries
Other EMEA Countries Other EMEA countries Reminder 2018 2019 REPORTED LFL (€m) LFL 2018 9-month sales 517 594 +15.0% +13.4% +10.3% Q3 sales 176 226 +28.5% +21.7% +5.9% ▪ First growth area for the Group in Q3 ➔ Central Europe: strong growth in core business and new LPs leading to market share gains ➔
Slide 55: North America
North America Reminder North America (€m) 2018 2019 REPORTED LFL LFL 2018 9-month sales 357 400 +12.2% +6.5% -6.5% Q3 sales 152 176 +15.7% +11.2% +1.8% ▪ Favorable monetary environment for the three currencies of the region ▪ Strong Q3 LFL growth mainly thanks to specific effects: ➔ Implementation o
Slide 56: South America
South America Reminder South America (€m) 2018 2019 REPORTED LFL LFL 2018 9-month sales 216 230 +6.8% +12.3% -1.8% Q3 sales 83 92 +11.7% +12.5% -3.5% ▪ Continued depreciation of BRL, ARS and COP ▪ One-off compensating slowdown in growth in Brazil in Q3 ➔ Recognition of a tax credit worth EUR8m. Excl
Slide 57: China
China Reminder China (€m) 2018 2019 REPORTED LFL LFL 2018 9-month sales 1,192 1,339 +12.3% +11.1% +26.6% Q3 sales 367 401 +9.1% +7.5% +26.5% ▪ Q3 LFL growth of 7.5% in the context of exceptional comps in 2018 ➔ More moderate economic Chinese growth ➔ US/China trade dispute ▪ Supor continuing to outp
Slide 58: Other Asian countries
Other Asian countries Other Asian countries Reminder 2018 2019 REPORTED LFL (€m) LFL 2018 9-month sales 352 376 +7.1% +3.1% -1.5% Q3 sales 118 132 +12.9% +8.2% -7.4% ▪ Vigorous Q3 growth, accelerating vs. H1-2019 ➔ Japan as the main driver: ▪ Positive momentum in core categories and Cook4me ▪ Purcha
Slide 59: Professional
Professional PROFESSIONAL Reminder Professional (€m)* 2018 2019 REPORTED LFL LFL 2018 9-month sales 458 589 +28.6% +14.4% +10.2% Q3 sales 168 198 +17.8% +4.6% +27.2% ▪ Professional Coffee Machines: robust 9M growth following more modest Q3 on high comps ➔ Major deals shipped as from summer 2018 ➔ Ex
Slide 60: Outlook
04 OUTLOOK
Slide 61: 2019 Outlook
2019 Outlook ▪ Organic sales growth now expected between +6% and +7% vs. over 7% as announced at end-July ▪ Objective confirmed of an around +6% increase in reported ORfA, in a more favorable currency and raw material environment than expected 61 Nov/Dec 2019 Groupe SEB presentation
Slide 62: Appendices
GROUPE -— APPENDICES > ——
Slide 63: Q3-2019 sales
Q3-2019 sales In €m As Q3 2019 Q3 2018 Q3 2019 reported LFL EMEA 715 779 +8.8% +7.1% Western Europe 539 553 +2.4% +2.4% Other countries 176 226 +28.5% +21.7% AMERICAS 235 268 +14.3% +11.6% North America 152 176 +15.7% +11.2% South America 83 92 +11.7% +12.5% ASIA 485 533 +10.0% +7.7% China 367 401 +
Slide 64: Glossary
Glossary On a like-for-like basis (LFL) – Organic Net debt – Net indebtedness The amounts and growth rates at constant exchange rates and consolidation scope in a This term refers to all recurring and non-recurring financial debt minus cash and cash given year compared with the previous year are cal
Slide 65: Agenda: 2020 key dates
2020 key dates January 22 | after market close Provisional 2019 sales AGENDA February 27 | before market opens 2019 sales and results April 27 | after market closes Q1 2020 sales and financial data May 19 | 15:00 Annual general meeting July 23 | before market opens H1 2020 sales and results October
Slide 66: Contacts
Investor/Analyst relations Media Relations Groupe SEB Groupe SEB Financial Communication Corporate Communication Dept and Investor Relations Cathy Pianon C O N TA C T S Isabelle Posth cpianon@groupeseb.com Raphaël Hoffstetter Tel: + 33 (0) 6 33 13 02 00 iposth@groupeseb.com rhoffstetter@groupeseb.co