Seb Sa · EURONEXT:SK
Seb Sa — Groupe SEB — Investor Presentation (October 2019)
76 slides from Seb Sa's investor presentation, October 2019
Slide 1: Groupe SEB Presentation
GROUPE SEB PRESENTATION September-October 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. Outlook 5. 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 Sept/Oct 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 Sept/Oct 2019 Groupe SEB presenta
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 Sept/Oct 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 Sept/Oct 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 Sept/Oct 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 Sept/Oct 2019 Groupe SEB presentation
Slide 14: H1 2019 Product news: Air Force Flex
H1 2019 Product news Air Force Flex 14 Sept/Oct 2019 Groupe SEB presentation
Slide 15: H1 2019 Product news: Köpüklüm
H1 2019 Product news Köpüklüm 15 Sept/Oct 2019 Groupe SEB presentation
Slide 16: H1 2019 Product news: Healthy & Tasty rice cooker
H1 2019 Product news Healthy & Tasty rice cooker 16 Sept/Oct 2019 Groupe SEB presentation
Slide 17: H1 2019 Product news: Cookware All Clad
H1 2019 Product news Cookware All Clad 17 Sept/Oct 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 Sept/Oct 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 Sept/Oct
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 Sept/Oct 2019 Groupe SEB pr
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 Sept/Oct 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 Sept/Oct 2019 Groupe
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 Sept/Oct 2019 Groupe SEB presentation
Slide 26: An active acquisition strategy
An active acquisition strategy 8000 2018 2005 2016 7000 1988 2011 6485 2001 6812 6000 1998 1972 4770 5000 2004 2007 4000 1997 1968 2870 2015 3000 2000 1825 2006 1764 1000 170 7 0 1953 1975 1998 2000 2007 2015 2016 2017 2018 26 Sept/Oct 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 Vincent Léonard Senior Executive VP, Vincent Tai Finance Executive VP, Asia Harry Touret Senior Executive VP, Human Resources Cyril Buxtorf Executive VP, EMEA Alain Leroy Executi
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 Sep
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 over 10 years
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
asiee H1 2019 RESULTS
Slide 39: Mixed general environment
Mixed general environment ▪ Still difficult macroeconomic context: • Geopolitical tensions (USA/China, Gulf…) • Uncertainty in emerging countries (Brazil, Turkey) • Sluggish dynamics in Europe (Italy, Germany, UK) ▪ Fast-changing retail market • Difficulties of traditional retail vs. continuous deve
Slide 40: 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 40 Sept/Oct 2019 Groupe SEB presentation
Slide 41: Key figures at end-June 2019
Key figures at end-June 2019 SalesSales ORfA €6,812m €3,337m +5.1% +7.8% LFL €230m +10.3% +8.4% LFL +10.7% +8.1% LFL Net debt Net profit €100m €2,428m* +€313m vs 06/30/2018 +9.8% *o/w IFRS 16 debt: €346m 41 Sept/Oct 2019 Groupe SEB presentation
Slide 42: Wilbur Curtis: good start in the Group
Wilbur Curtis: good start in the Group ▪ Business synergies effective with WMF-Schaerer in professional coffee machines in the US • Filter coffee / Automatic espresso • Price positioning • Client portfolio • Commercial network ▪ Ongoing integration process ➔ SEB Professional ▪ Sales and logistics sy
Slide 43: Egypt: operating levers implemented
Egypt: operating levers implemented ▪ Strategic market for the Group ▪ Small Domestic Appliances (SDA) • Strong growth in local production ➔Improving competitiveness • Leadership in food preparation ▪ Cookware • Industrial site ramp-up • Strong leadership: Zahran/Tefal synergies ▪ Solid momentum in
Slide 44: Employee shareholding plan well subscribed
Employee shareholding plan well subscribed ▪ Open operation in 33 countries • Subscription price: €123.04 • 20% discount / benchmark price €153.79 ▪ Participation rate: 22.% of the 19,000 eligible employees ▪ Average amount invested per employee: €4,400 ▪ Total amount: €18.1m including employer cont
Slide 45: WMF: contrasting performances
WMF: contrasting performances ▪ PCM*: performances above our expectations • 2015 ➔ 2018 sales: +43% ▪ More complicated Consumer business than expected • 2015 ➔ 2018 sales: -8% ➔ Plan to strengthen Consumer business ▪ Objective: op. margin at Group level (~10%) ▪ Action plan founded on 4 priority are
Slide 46: Sales
Robust performances with balanced growth 1 Sales 2 Results 46 Sept/Oct 2019 Groupe SEB presentation
Slide 47: Change in sales H1 2018 to H1 2019
Change in sales H1 2018 ➔ H1 2019 In €m +43 3,337 +15 +254 3,025 Organic Currency Perimeter growth effect +8.4% +0.5% +1.4% +10.3% H1 2018 H1 2019 47 Sept/Oct 2019 Groupe SEB presentation
Slide 48: Currency impact on H1 2019 sales
Currency impact on H1 2019 sales In €m +€15m 15 Q1: +€13m Q2: +€2m 10 5 0 -5 -10 -15 BRL CNY CHF EGP KRW RUB ARS TRY USD USD MXN COP OTHERS 48 Sept/Oct 2019 Groupe SEB presentation
Slide 49: Organic sales growth per quarter
Organic sales growth per quarter H1 2017 2018 2019 In % +10.1% +7.4% +8.4% 12 11.5 10 8.6 8.8 8.4 8.5 8.4 8 8.2 7.8 7.4 2017 7.3 6 2018 2019 4 Q1 Q2 Q3 Q4 49 Sept/Oct 2019 Groupe SEB presentation
Slide 50: 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 51: Breakdown of sales by region
Breakdown of sales by region Other Asian countries Emerging countries Mature countries 9% 48% 52% Western Europe 36% China 29% €3,337m €3,337m +8.4% LFL +8.4% LFL South America 4% Other EMEA countries 12% North America 10% 51 Sept/Oct 2019 Groupe SEB presentation
Slide 52: Top countries – Consumer sales
Top 20 countries – Consumer sales TOP 10 COUNTRIES GERMANY Belgium BRAZIL CHINA SPAIN USA ITALY JAPAN Mexico Netherlands Poland RUSSIA Switzerland Turkey Austria Canada Colombia FRANCE SOUTH KOREA United Kingdom LFL 52 Sept/Oct 2019 Groupe SEB presentation
Slide 53: Western Europe
Western Europe AS Reminder: H1 sales in €m 2018 2019 LFL REPORTED 2018 LFL Western Europe 997 1,033 +3.6% +3.6% +1.3% ▪ Solid growth in sales, slightly accelerating in Q2 ➔ Positive SDA market ➔ Strong core business and major loyalty programs (LPs) ▪ Activity favorable overall ➔ France: stable half-
Slide 54: Other countries EMEA
Other countries EMEA AS Reminder H1 sales in €m 2018 2019 LFL REPORTED 2018 LFL Other countries 340 368 +8.0% +9.1% +12.9% ▪ Robust organic sales growth of 9.1% in H1, accelerating in Q2 ➔ Momentum driven by both core business and LPs ➔ Sales in Retail Group up > 10% ➔ Virtually widespread milestone
Slide 55: North America
North America AS Reminder: H1 sales in €m 2018 2019 LFL REPORTED 2018 LFL North America 204 224 +9.5% +3.0% -11.5% ▪ Highly disrupted retail sector, impacting business ➔ Destockings, promotions, store closures… ▪ Contrasted performance by country: ➔ United States/Canada: solid business in cookware.
Slide 56: South America
South America AS Reminder H1 sales in €m 2018 2019 LFL REPORTED 2018 LFL South America 134 138 +3.9% +12.1% -0.7% ▪ Strong sales growth in H1, accelerating in Q2 ▪ Brazil the main growth driver ➔ Acceleration in Q2 (+25%) vs. weak Q2 2018 ➔ Growth driven by several product categories in a highly com
Slide 57: China
China AS Reminder: H1 sales in €m 2018 2019 LFL REPORTED 2018 LFL China 825 938 +13.7% +12.8% +26.6% ▪ Competitive and promotion-driven market, still propelled by e-commerce ▪ Solid momentum (10-15% LFL) maintained vs. exceptional 2018 performance ➔ Reminder: Q2 2018 sales: +30% ▪ All product famili
Slide 58: Other countries
Other countries AS Reminder H1 sales in €m 2018 2019 LFL REPORTED 2018 LFL Other countries 235 244 +4.3% +0.7% +1.5% ▪ Sales stable LFL after a slight organic decline in Q2 ▪ Excellent performances across most countries in the region ➔ Japan: traditional categories (cookware, kettles…) and new (garm
Slide 59: Professional
Professional PROFESSIONAL AS Reminder H1 sales in €m 2018 2019 LFL REPORTED 2018 LFL Professional 290 391 +34.9% +20.1% +2.4% ▪ Professional business = Professional coffee machines+ Hotel equipment ▪ Highly vigorous Professional Coffee business with moderate 2018 comparatives ➔ Major contracts in th
Slide 60: Top performers by product line - Consumer
Top performers by product line - Consumer LFL Home comfort 25,0% 20,0% Food Home care Personal preparation Cookware 15,0% care Electrical Beverages cooking 10,0% 5,0% Linen care 0,0% -5,0% 60 Sept/Oct 2019 Groupe SEB presentation
Slide 61: Results
Robust performances with balanced growth 1 Sales 2 Results 61 Sept/Oct 2019 Groupe SEB presentation
Slide 62: 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 62 Sept/Oct 2019 Groupe SEB presentation
Slide 63: Growth drivers
Growth drivers In €m H1 2018 H1 2019 Δ LFL Innovation 117 128 +8.2% Advertising and marketing 197 214 +7.9% Total growth drivers 314 342 +8.0% Gross amount, before French research tax credit and capitalization 63 Sept/Oct 2019 Groupe SEB presentation
Slide 64: Operating profit
Operating profit In €m H1 2018 H1 2019 Operating Result from Activity (ORfA) 208 230 +10.7% Discretionary and non-discretionary (10) (9) profit-sharing Other operating income and expense (12) (8) Operating profit 186 213 +14.5% 64 Sept/Oct 2019 Groupe SEB presentation
Slide 65: Net profit
Net profit In €m H1 2018 H1 2019 Operating profit 186 213 +14.5% Interest expense (16) (21) Other financial expense (20) (25) Tax (36) (40) Non-controlling interests (23) (27) Net Profit 91 100 +9.8% 65 Sept/Oct 2019 Groupe SEB presentation
Slide 66: Simplified balance sheet
Simplified balance sheet In €m 06/30/2018 06/30/2019 Tangible fixed assets 3,540 4,162 Operating WCR 1,219 1,367 Total assets to be financed 4,759 5,529 Equity 1,984 2,323 Provisions 385 417 Other current assets and liabilities 375 361 Net debt 2,015 2,428 Total financing 4,759 5,529 66 Sept/Oct 201
Slide 67: 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 67 Sept/Oct 2019 Gro
Slide 68: 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 69: Outlook
04 OUTLOOK
Slide 70: Guidance for 2019
Guidance for 2019 H2 2019 expectations: ▪ More favorable than expected raw material environment ▪ But overall environment still complex 2019 OBJECTIVES ➔ Organic sales growth above 7% ➔ Based on current exchange rates, and considering the highly demanding second-half 2018: increase of around 6% in r
Slide 71: Appendices
GROUPE -— APPENDICES > ——
Slide 72: IFRS 16 implementation - Estimated impacts
IFRS 16 implementation - Estimated impacts GROUPE SEB Impact on : 1 300 contracts Net Debt (FY 19) Stores + 346 M€ as of June 30 2019 Adjusted EBITDA (FY 19) No cash impact Offices + 80 M€ ORfA (FY 19) Warehous es + 8M€ Net Income (FY 19) Vehicles Around -5M€ 72 Sept/Oct 2019 Groupe SEB presentation
Slide 73: Q2 sales
Q2 sales In €m Q2 2018 Q2 2019 As reported LFL EMEA 652 690 +5.9% +5.9% Western Europe 494 515 +4.2% +4.1% Other countries 158 175 +11.1% +11.4% AMERICAS 177 194 +9.5% +8.8% North America 112 121 +8.3% +2.3% South America 65 73 +11.5% +19.8% ASIA 481 523 +8.7% +8.6% China 357 396 +11.2% +11.9% Other
Slide 74: 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 75: Agenda: Next key dates
Next key dates AGENDA October 29 | after market closes 9-month 2019 sales and financial data 75 Sept/Oct 2019 Groupe SEB presentation
Slide 76: 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