Leifheit AG · XETR:LEI
Leifheit — FY2021 Earnings Presentation
50 slides from Leifheit's earnings presentation, Mar 29, 2022
Slide 1: Investor Presentation FY 2021
Investor Presentation FY 2021
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: Executive Summary FY 2021
Executive Summary FY 2021 Group turnover up 6.2% vs last year Group EBIT up 6.9% vs last year Branded business (Leifheit & Soehnle) turnover up 27% within 2 years (2021 vs 2019) Group EBIT more than doubled within 2 years, from less than 10 to more than 20 million € Gross margin down from 45.0% to 4
Slide 4: Successful FY 2021 but increasing distortions in global supply chains
Successful FY 2021 – but increasing distortions in the global supply chains weigh on EBIT in H2 2021 and FY 2022 forecast Good business performance in FY 2021 - Successful TV campaigns in selected markets - Normalization of consumer behavior compared with the prior-year period, which was significant
Slide 5: Leifheit makes top quality household products, designed in Germany
Leifheit makes top quality household products, designed in Germany Profi Floor Wiper CLEAN TWIST Disc Mop Ergo Pegasus 150 Linomatic 500 Deluxe 4.7 stars 4.6 stars 4.6 stars 4.5 stars Analyst meeting March 2022 5
Slide 6: Leifheit is financially solid and pays good dividends to shareholders
Leifheit is financially solid and pays good dividends to shareholders Commitment to shareholders Strong products and brands 1.50 1,50 Dividend payments 1984 - 2020 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€ in % A
Slide 7: Implementation of Scaling up success strategy leads to higher turnover
Implementation of Scaling up success strategy leads to significant higher level of turnover Group turnover development by quarters in m€ 300 +6% +16% • Q1+Q2 2021: best ever Q1/Q2 63 • Q3+Q4 2021: Sales below prior-year 250 70 level, but 2nd best ever Q3/Q4 200 59 58 59 57 57 • Supply bottlenecks in
Slide 8: The strategy works: CAGRs of +11% on turnover and +43% on EBIT
The strategy works: 2019 to 2021 shows CAGRs of +11% on turnover and +43% on EBIT Group turnover Group EBIT in m€ in m€ ~11 % -23 % - 0.4 % CAGR CAGR 22.1 300 CAGR 288 272 20.1 20 18.8 18.8 250 237 237 234 234 200 15 ~43% 13.1 CAGR 150 9.9 10 100 5 50 0 0 2016 2017 2018 2019 2020 2021 2016 2017 2018
Slide 9: Raw material prices soared
Raw material prices soared – no end of price rally in sight! Steel DC 01 +206% since mid 2020 EUR/t Analyst meeting March 2022 9
Slide 10: Raw material prices soared
Raw material prices soared – no end of price rally in sight! Polypropylene: +112% Steel DC 01 +206% Seafreight: +838% ABS plastics: +91% since mid 2020 since mid 2020 since mid 2020 since mid 2020 EUR/t Aluminium (LME): +146% Stainless Steel +40% Import and producer prices Packaging: +75% since mid
Slide 11: Operating result (EBIT) increase by 6.9% in FY 2021
Operating result (EBIT) increase by 6.9% in FY 2021 despite burdens in third and fourth quarter, gross margin 2.7pps down yoy Group earnings development FY 2020 FY 2021 ∆ 2017 – 2021 in m€ Group turnover m€ 271.6 288.3 6.2% 20.1 Gross margin % 45 42.3 -2.7 pps 20 18.8 18.8 Foreign currency result m€
Slide 12: Measures to improve working capital are paying off
Measures to improve working capital are paying off, inventory value up due to procurement price effects in m€ FY 2020 FY 2021 ∆ Cash flow from operating activities 4.0 16.4 12.4 Cash flow from investment activities -9.5 -6.9 2.6 Cash flow from financing activities -6.0 -10.4 -4.4 Free cash flow1 -5.
Slide 13: Group liquidity
Measures to improve working capital are paying off, inventory value up due to procurement price effects Group liquidity 31.12.2020 vs. 31.12.2021 in m€ +4.7 • Trade receivables fell due to decline in turnover in the fourth +7.8 +3.6 quarter (2020: increase of +14.2 m€ 13.0). -10.4 -7.3 • Inventory v
Slide 14: Our purpose? Happy consumers!
Our purpose? Happy consumers! Better Value for Money Analyst meeting March 2022 14
Slide 15: We call our strategy Scaling up success
We call our strategy “Scaling up success” Focus KPIs 2019 vs. 2021 Growth Profitability 1 • Invest in pre-tested and scalable high ROI consumer advertising Create consumer ✓ on profitable best sellers Revenue growth demand • Launch new products only if margin > average and if supported by pre-tested
Slide 16: Create consumer demand and make brands stronger
1 Create consumer demand and make brands stronger Peer group comparison Marketing spend and EBIT in % of turnover EBIT margin 25,0 P&G1 20,0 15,0 Unilever1 Beiersdorf1 10,0 Leifheit 2021 5,0 Leifheit 2019 0,0 Marketing spend 0 5 10 15 20 25 30 35 40 1 Source: Annual reports 2021 Analyst meeting Marc
Slide 17: Massive TV advertising investments turned Leifheit & Soehnle into winning brands
1 Our massive investments in TV advertising have turned Leifheit & Soehnle into winning brands Leifheit & Soehnle Leifheit & Soehnle Gross spending for advertising Turnover development Group EBIT m€ m€ m€ 260 256 20.1 40 37 0 18.8 TV 35 240 31 advertising 240 30 works! 0 25 20 220 9.9 0 15 202 10 20
Slide 18: 2020 tested massive advertising spend in several countries
1 In 2020 we tested massive advertising spend in several countries with strong results Turnover development selected TV markets Group turnover FY 2020 in % yoy +35% +20% +52% +18% +33% Netherlands Belgium Switzerland Poland Romania Analyst meeting March 2022 18
Slide 19: Scaling-up TV advertising to France and Italy successful in 2021
1 Scaling-up TV advertising to France and Italy successful in 2021 Turnover development selected TV markets Group turnover FY 2021 in % yoy +11% +19% +11% +11% +34% Belgium Italy France Czech Republic Poland Analyst meeting March 2022 19
Slide 20: Approach taken to our #1 market Germany
1 Encouraged by strong results in TV advertising test countries we took the approach to our #1 market Germany Analyst meeting March 2022 20
Slide 21: New strategy led to positive turnaround in Germany
1 New strategy led to positive turnaround in Germany away from the recent downward trend Group turnover development in Germany in % 17 +15% +13% 12 7 +3% +1% 2 -3 -4% -4% -8 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Analyst meeting March 2022 21
Slide 22: Scaled up this approach to Soehnle
1 Encouraged by strong advertising results on brand Leifheit, we scaled up this approach to Soehnle Turnover development Soehnle scales product category in % • Print campaign in H2 2021 with focus on Soehnle Page Profi 300 digital kitchen scale, which was awarded with “very good” test result. 27 • P
Slide 23: We are successfully expanding our distribution network
2 We are successfully expanding our distribution network Analyst meeting March 2022 23
Slide 24: German heritage products are ranked #1 for positive image
2 International expansion: German heritage products are ranked # 1 for consumers in terms of positive image Source: Statista Made-In-Country-Index 2017 • Germany leads the Made-in-Country-Index • The global ranking according to the Made-In-Country-Index shows how positively products “Made in ...” fr
Slide 25: We create a fun, fast, friendly and fearless winning culture
4 We create a fun, fast, friendly and fearless winning culture Analyst meeting March 2022 25
Slide 26: Compensating growing costs with sales price increases
4 We aim to compensate growing raw material, energy and cargo cost with sales price increases % of Group turnover FY 2018 FY 2019 FY 2020 FY 2021 Change Consumer marketing 0.7% 1.7% 5.5% 6.1% +0.6 pps ✓ Other marketing 5.4% 4.6% 3.6% 2.8% -0.7 pps ✓ R&D 2.3% 2.4% 2.1% 2.1% 0.0 pps ✓ Logistics1 11.0%
Slide 27: 26% increase in turnover per employee
4 26% increase in turnover per employee FY 2021 vs. FY 2019 Group turnover per employee 2018 - 2021 in k€ 267 247 212 209 2018 2019 2020 2021 Analyst meeting March 2022 27
Slide 28: Enormous uncertainties against background of the Russia-Ukraine war
Enormous uncertainties against background of the Russia-Ukraine war • Leifheit Group’s turnover in Russia and Ukraine around 1% of total sales in FY 2021. • Leifheit has no direct suppliers or locations in Russia or Ukraine. • However, due to the current geopolitical situation, the associated sancti
Slide 29: EBIT forecast 2022
EBIT forecast 2022: further significant increases in procurement costs and supply bottlenecks expected Forecast 2022 Group turnover Slight decrease Turnover Household Slight decrease Turnover Wellbeing Slight decrease Turnover Private Label Slight decrease Group EBIT Significant below previous year
Slide 30: Investor Presentation FY 2021
Investor Presentation FY 2021
Slide 31: Annex
Annex
Slide 32: Growth in Household segment continued
Annex Growth in Household segment continued following large-scale advertising Group turnover by segment Group turnover by segment FY 2017 - FY 2021 in m€ FY 2021 11.1% 288 80.0% Household 300 272 8.9% Wellbeing 32 237 234 234 32 250 26 Private Label 34 27 34 32 200 20 20 20 150 213 231 • Turnover in
Slide 33: Continued strong turnover growth in Germany
Annex Continued strong turnover growth in Germany through successful TV advertising campaigns Group turnover by region Group turnover by region FY 2017 - FY 2021 in m€ FY 2021 288 300 2.6% 272 13.1% 8 Germany 14 38 43.9% 250 237 234 234 34 Central Europe 9 9 7 28 29 31 Eastern Europe 200 116 Rest of
Slide 34: Leifheit Group structure
Annex Leifheit Group structure Household Wellbeing Private Label Kitchen Laundry Care Cleaning Kitchen goods Personal scales Kitchen scales Standing Dryers goods Wellbeing 9% Rest of World 3% Kitchen Goods Germany Laundry Care 14% Eastern 44% 38% Turnover by Europe Turnover product 13% by region cat
Slide 35: European production footprint ensured reliable supply
Annex Our European production footprint ensured reliable supply to customers in spite of COVID-19 challenges in the supply chain Paris/F (Leifheit/Birambeau) Nassau/D (Leifheit/Soehnle) • About 70 employees • About 280 employees • Marketing, sales • Marketing, sales, development, quality and adminis
Slide 36: Distribution in all relevant distribution channels
Annex Distribution in all relevant distribution channels Blue Chip client base Distribution channels Turnover 2021 in % (previous year’s figures) Electro Others 3 (3) 5 (6) Cash & Carry 3 (3) Hypermarket Importers/ 26 (27) Exporters 7 (8) Top 10 Customers Turnover 2021: account for 50% Discounters o
Slide 37: Number of employees at a stable level
Annex Number of employees at a stable level Employee development Employees by region 31 Dec 31 Dec 2021 7.9% Private Label Germany 1.200 1,098 1,080 12.9% Wellbeing 38.1% Czech Republic 137 134 Household 1.000 47 France 39 Other countries 800 41.1% 600 914 907 400 200 0 2020 2021 Analyst meeting Mar
Slide 38: Long-term financial overview
Annex Long-term financial overview 2017 2018 2019 2020 2021 Group turnover m€ 236.8 234.2 234.0 271.6 288.3 Profitability ▪ Gross margin % 46.4 43.6 43.1 45.0 42.3 ▪ Cash flow from operating activities m€ 7.2 10.2 15.9 4.0 16.4 ▪ Free cash flow m€ 1.5 3.7 10.1 -5.5 9.6 ▪ EBIT m€ 18.8 13.1 9.9 18.8 2
Slide 39: Long-term financial overview
Annex Long-term financial overview 2017 2018 2019 2020 2021 Per share Net result for the period, EPS2 € 1.35 0.88 0.61 1.32 1.49 Free cash flow € 0.16 0.39 1.06 -0.57 1.00 Dividend € 1.05 1.05 0.55 1.05 1.052 Special dividend € -- -- -- -- -- Investments m€ 7.8 6.6 6.0 9.6 7.3 Depreciation m€ 6.4 6.
Slide 40: Experienced Management
Annex Experienced Management Henner Rinsche Igor Iraeta Munduate Marco Keul CEO COO CFO Previous experience Previous experience Previous experience • President Europe at • Many years of experience as • Resp. for Controlling, IT/Business SodaStream CTO at Igus GmbH and Stoba processes and internal sa
Slide 41: Committed to shareholder returns
Annex Committed to shareholder returns Long-term dividend development Dividend yield 1 2 Dividend per share / in € 2021: 2.9% 2017: 3.8% 2020: 2.4% 2016: 5.1% 2019: 2.3% 2015: 5.6% 2018: 5.9% 2014: 3.9% 1,50 Dividend proposal 1,00 for 2021: € 1.05 0,50 0,00 1984 1985 1986 1987 1988 1989 1990 1991 19
Slide 42: Leifheit awards (selection)
Annex Leifheit awards (selection) Floor wiper Profi micro duo Rotary dryers Laundry dryers Linomatic Pegasus Cordless vaccum wiper Regulus Aqua PowerVac CLEAN TWIST Disc Mop Ergo Window vaccum Window vaccum CLEAN TWIST cleaner Nemo cleaners M Ergo Salad spinner Cordless vaccum Isolating jug Isolatin
Slide 43: Soehnle awards (selection)
Annex Soehnle awards (selection) Kitchen Scales Personal Scales Page Profi + Page Profi 300 Style Sense Personal Scales Page Aqua Proof Style Sense Bamboo Magic Kitchen Scale Air Purifier Body analysis scales Blood pressure monitors AirFresh Clean 400 Shape Sense Connect 100 + 200 Systo Monitor 200
Slide 44: More than 60 years of passion for housework
Annex Leifheit – more than 60 years of passion for housework 2010 1984 • Sale of the business unit ‘bathroom’ • IPO of Leifheit AG 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 Kl
Slide 45: 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 Rörets Kärcher Blome Kitchen goods Wellbeing Tescoma WMF Gefu Bosch Laica Tanita Zyliss Rösle Oxo Lurch ADE Homedics Fackelmann Sanitas Beurer B
Slide 46: Significant free float and international investors
Annex Significant free float and international investors Shareholder structure March 2022 • Joachim Loh, Haiger (GER), 10.31% 10.31% • MKV Verwaltungs GmbH, Grünwald (GER), 10.03% 10.03% • Leifheit AG Nassau (GER), treasury shares, 40.81% 4.87% 4.87% • Alantra EQMC Asset Management, SGIIC, SA, Madri
Slide 47: Financial calendar and contact
Annex Financial calendar and contact Dates 2021/2022 Contact 11 May 2022 Corporate Communications / Investor Relations Quarterly statement for the period ending 31 March 2022 Phone: +49 2604 977-218 25 May 2022 Email: ir@leifheit.com Annual General Meeting 09 Aug 2022 www.leifheit-group.com Financia
Slide 48: Leifheit is frequently top company in home appliances and household goods
Annex Leifheit is frequently top company in home appliances and household goods categories Most Valuable Germany‘s Highest Level Germany‘s Best Company fairest companies of Trust 2021 Customer Hotline 2021 July 2021 Jan 2022 Oct 2021 July 2021 Deutschland Test / Focus Money IMWF Institut / FAZ-Insti
Slide 49: Our ESG Principles
Our ESG Principles Read more at our sustainability report 2021 www.leifheit-group.com/en/investor- relations/reports-and-presentations/ Analyst meeting March 2022 49
Slide 50: Aktiengesellschaft Postfach 11 65 D-56377 Nassau
Aktiengesellschaft Postfach 11 65 D-56377 Nassau