Slide 1: 2018 Full-Year Results
2018 FULL-YEAR RESULTS Paris | February 28, 2019 Listen to the webcast of the meeting on www.groupeseb.com
Slide 2: Note
2018 FULL-YEAR RESULTS 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 commod
Slide 3: Contents
CONTENTS 1. A good year 2. Solid performances 3. Outlook 4. Appendixes 3 02/28/2019 2018 Full-Year Results
Slide 4: A good year
01 A GOOD YEAR 4 02/28/2019 2018 Full-Year Results
Slide 5: A complicated environment that got tenser over the months
A complicated environment that got tenser over the months HIGHLIGHTS ▪ Difficult macroeconomic context • Turkey/Middle-East/Brazil • US/China trade war • Europe (UK, Italy, France) ▪ Fast-changing retail market • Difficulties for some offline retailers vs continued development of e-commerce • Promot
Slide 6: 2018 key figures – Another great year of growth
2018 key figures – Another great year of growth Sales €6,812m +5.1% +7.8% LFL Consumer Professional €6,177m €635m +4.3% +7.2% +12.8% +14.3% LFL LFL 6 02/28/2019 2018 Full-Year Results 6
Slide 7: 2018 key figures – Solid performances
2018 key figures – Solid performances Sales Sales Operating Result from Activity Net profit €6,812m +5.1% +7.8% LFL €6,812m (ORfA) €419m +5.1% +7.8% LFL €695m +11.8% +2.5% +8.5% LFL* *Before PPA one-offs Net debt Net debt/Adjusted EBITDA €1,578m 1.90 -€327m vs 12/31/2017 2.36 at 12/31/2017 Dividend
Slide 8: A strong and resilient strategy
A strong and resilient strategy A STRONG AND A BROAD AND A MULTI- BALANCED OPTIMIZED AND COMPLEMENTARY DIVERSIFIED CHANNEL GLOBAL COMPETITIVE BRAND PORTFOLIO PRODUCT DISTRIBUTION FOOTPRINT SUPPLY CHAIN OFFERING STRATEGY CONSUMER BRANDS COOKWARE MAJOR FOOD ACTIVE IN 150 IN-HOUSE & KITCHENWARE RETAILE
Slide 9: 2018: further inroads
2018: further inroads ▪ Continued digital transformation ▪ Shared commitment in social responsibility ▪ Strengthened footprint through targeted acquisitions • Zahran in Egypt • Wilbur Curtis in the US 9 02/28/2019 2018 Full-Year Results
Slide 10: Continued digital transformation
Continued digital transformation 220 retailers connected via our websites Nearly 25% of Consumer sales Broader listings with pure players: +60% in 2018 E-Commerce Digital offering E-marketing 10 02/28/2019 2018 Full-Year Results
Slide 11: Continued digital transformation
Continued digital transformation E-Commerce 15 connected products launched in 5 years Cookeo Connect: 25% of Cookeo sales Digital Applications: > 800,000 monthly users E-marketing offering Acquisition of 750g International Connected professional machines: Coffee connect 11 02/28/2019 2018 Full-Year
Slide 12: Continued digital transformation
Continued digital transformation Media investment: E-Commerce >40% digital > 60 million visits on Group websites Digital offering E-marketing Recruitment of data experts: 170 since 2015 Success of digital communities: Cuisine Companion / Cookeo / Cake Factory 12 02/28/2019 2018 Full-Year Results
Slide 13: Continued digital transformation: 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 14: 2018: further inroads
2018: further inroads ▪ Continued digital transformation ▪ Shared commitment in social responsibility ▪ Strengthened footprint through targeted acquisitions • Zahran in Egypt • Wilbur Curtis in the US 14 02/28/2019 2018 Full-Year Results
Slide 15: Recycling to leverage circular economy
Recycling to leverage circular economy • 38% of recycled materials for all material purchases (metals, plastics and packagings) for products manufactured in 2018 • Group voluntary commitment to double the use of recycled plastic in France by 2025 2018 H1 2020 • Communication • Launch of recycling •
Slide 16: 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 Inno
Slide 17: A shared commitment in social responsibility
A shared commitment in social responsibility ▪ Groupe SEB fund’s objective: combat exclusion ▪ For 10 years, among the 500 supported projects: ➔ In China, creation and construction of 22 schools ➔ In Vietnam and India creation of 3 centers for young adults living under the poverty line with an 18-mo
Slide 18: 2018: further inroads
2018: further inroads ▪ Continued digital transformation ▪ Shared commitment in social responsibility ▪ Strengthened footprint through targeted acquisitions • Zahran in Egypt • Wilbur Curtis in the US 18 02/28/2019 2018 Full-Year Results
Slide 19: Group expansion in Egypt
Strengthened footprint Group expansion in Egypt Sales x 2 in 2018 • Long-standing Group partner • 2018: JV Groupe SEB Egypt Zahran • No. 1 in cookware and food preparation • 2 industrial sites • > 2m products manufactured per year • 860 employees • Local market of 100m inhabitants • Exports to neigh
Slide 20: Wilbur Curtis acquisition in the United States
Strengthened footprint Wilbur Curtis acquisition in the United States 2018 sales • No. 2 in professional filter coffee in the US > $90m • 25% market share • Filter coffee market: 1/3 professionalcCoffee in the US ➔ Long-standing and strong tradition in the US 20 02/28/2019 2018 Full-Year Results
Slide 21: WMF-Schaerer / Wilbur Curtis complementary features
WMF-Schaerer / Wilbur Curtis Multiple complementary features... 30 miles ▪ Filter coffee machines + automatic espresso machines PRODUCTS ▪ 2/3 of professional coffee market in the US ▪ Opportunities of double equipment ▪ From $800 to $1,000 for filter coffee machines PRICES ▪ From $3,500 to $10,000
Slide 22: Ambition: become leader in professional coffee in the US
Ambition: become leader in professional coffee in the US 22 02/28/2019 2018 Full-Year Results
Slide 23: Solid performances
02 SOLID PERFORMANCES 23 02/28/2019 2018 Full-Year Results
Slide 24: Sales
Solid performances 1 Sales 2 Results 24 02/28/2019 2018 Full-Year Results
Slide 25: Change in sales, 2017 → 2018
Change in sales, 2017 → 2018 In €m +505 -211 +33 6,812 6,485 Organic Currency Other growth effect +7.8% -3.2% +0.5% +5.1% 2017 2018 25 02/28/2019 2018 Full-Year Results
Slide 26: 2018 currency impact on sales
2018 currency impact on sales In €m 0 -5 -10 -15 -€211m -20 Q1: -€86m -25 Q2: -€54m -30 Q3: -€38m Q4: -€33m -35 -40 -45 -50 TRY CHF ARS RUB BRL CNY COP MXN USD USD OTHER 26 02/28/2019 2018 Full-Year Results
Slide 27: Organic sales growth per quarter
Organic sales growth per quarter In % FY 2015 FY 2016 FY 2017 FY 2018 12 +8.0% +6.1% +9.2% +7.8% 11.5 10 9.4 8.8 8.6 8.4 7.9 7.8 8.4 8 7.4 7.3 7.8 7.2 2015 6.9 2016 6 6.5 6.0 5,1 2017 2018 4 Q1 Q2 Q3 Q4 27 02/28/2019 2018 Full-Year Results
Slide 28: Full-year sales by region
Full-year sales by region As 2017 2018 LFL In €m reported EMEA 3,170 3,223 +1.7% +3.3% Western Europe 2,424 2,430 +0.2% +0.4% Other countries 746 793 +6.4% +12.5% AMERICAS 946 887 -6.3% +0.4% North America 579 547 -5.5% -4.4% South America 367 340 -7.4% +8.2% ASIA 1,806 2,067 +14.5% +17.6% China 1,2
Slide 29: Breakdown of sales by region
Breakdown of sales by region Other Asia Pacific 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% 29 02/28/2019 2018 Full-Year Results 29
Slide 30: Top countries – Consumer sales
Top 20 countries – Consumer sales TOP 10 COUNTRIES GERMANY BRAZIL CHINA Colombia SOUTH KOREA SPAIN ITALY JAPAN Mexico Netherlands Poland RUSSIA Switzerland Turkey Belgium Austria Canada USA FRANCE United Kingdom LFL 30 02/28/2019 2018 Full-Year Results
Slide 31: Focus on a few countries
Focus on a few countries Numerous successes • China Targeted challenges • Central Europe • Mexico • France • Sweden • USA • Japan 31 02/28/2019 2018 Full-Year Results
Slide 32: France
France 2018 sales -3% • A sluggish market • Consolidation of purchasing centers • Promotional context • Fewer LPs vs 2017 • One-off “yellow vest” effect Automatic espresso coffee makers 2018 sales +35% 32 02/28/2019 2018 Full-Year Results
Slide 33: United States
United States 2018 sales -6% LFL • Activity penalized by difficulties of offline retailers • Decline in our SDA sales, especially Krups • Resilience in our Cookware sales • Good profitability Leadership in Cookware 2018 sales +1% 33 02/28/2019 2018 Full-Year Results
Slide 34: China: another exceptional year
China: another exceptional year Supor sales in 2018 +25% +30% in SDA +13% in Cookware +72% in Home care and Linen care No. 1 in Cookware No. 2 in Kitchen Electrics LFL figures 34 02/28/2019 2018 Full-Year Results
Slide 35: China: another exceptional year
China: another exceptional year Supor sales in 2018 +25% Mugs, food storage containers +30% in SDA +40% +13% in Cookware LFL +72% in Home care and Linen care No. 1 in Cookware No. 2 in Kitchen Electrics LFL figures 35 02/28/2019 2018 Full-Year Results
Slide 36: Central and Eastern Europe: accelerated growth
Central and Eastern Europe: accelerated growth 2018 sales +30% Poland > €300m, +21% +53% Ukraine +40% in Electrical cooking +26% Slovakia +37% Romania (Albania, Bulgaria, Belarus, Bosnia, Croatia, Estonia, Hungary, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Poland, Romania, Slovenia, Slovaki
Slide 37: Poland: remarkable momentum
Poland: remarkable momentum Vacuum cleaners 2018 sales x 3.5 LFL 37 02/28/2019 2018 Full-Year Results
Slide 38: Mexico: continued excellent dynamics
Mexico: continued excellent dynamics 2018 sales +9% +40% Electrical cooking +14% Linen care Flagship products: Blenders, filter coffee machines, fans garment steamers +40% LFL figures 38 02/28/2019 2018 Full-Year Results
Slide 39: Sweden: a promising market
Sweden: a promising market 2018 sales +15% Flagship products: Cookware, steam cookers, linen care, male clippers, Optigrill... +16% LFL figures 39 02/28/2019 2018 Full-Year Results
Slide 40: Japan: widespread growth
Japan: widespread growth 2018 sales +9% +63% Cook4me Flagship products: Cookware (incl. Ingenio), garment steamers, kettles... +21% LFL figures
Slide 41: Japan: widespread growth
Japan: widespread growth 2018 sales +9% LFL +63% Cook4me Flagship products: Cookware (incl. Ingenio), garment steamers, kettles... 33 T-Fal stores >20% of sales in Japan
Slide 42: Top performers by product line
Top performers by product line 35% Home care 30% 25% Electrical cooking 20% 15% Beverage 10% Food preparation Home comfort Cookware Personal 5% Linen care care 0% -5% 42 02/28/2019 2018 Full-Year Results -10%
Slide 43: Flagship products: Vacuum cleaners
Flagship products Vacuum cleaners 2018 sales +27% LFL Significant foothold in 30 countries 2018: market share gains in over 20 countries 43 02/28/2019 2018 Full-Year Results Source GFK, excl. North America
Slide 44: Flagship products: Blenders
Flagship products Blenders Significant foothold in 40 countries Global market share: 12% (+1.3 pt) High-speed blenders: + 70% LFL 44 02/28/2019 2018 Full-Year Results Source GFK, excl. North America
Slide 45: Flagship products: Garment steamers
Flagship products Garment steamers 2018 sales +28% LFL Foothold in over 65 countries Global market share: 21% (+2 pts) 45 02/28/2019 2018 Full-Year Results Source GFK, excl. North America
Slide 46: Flagship products: Thermal mugs
Flagship products Thermal mugs 2018 sales +42% LFL Foothold in over 75 countries 46 02/28/2019 2018 Full-Year Results
Slide 47: Results
Solid performances 1 Sales 2 Results 47 02/28/2019 2018 Full-Year Results
Slide 48: Operating Result from Activity (ORfA)
Operating Result from Activity (ORfA) In €m 2017 2018 Δ Δ LFL Sales 6,485 6,812 +5.1% +7.8% ORfA 678* 695 +2.5% +8.5% Operating margin 10.5%* 10.2% -0.3 pt = Reported ORfA 661 695 +5.2% +11.3% Reported operating margin 10.2% 10.2% = +0.3 pt *before PPA one-offs 48 02/28/2019 2018 Full-Year Results
Slide 49: ORfA bridge
ORfA bridge In €m +80 -48 -24 -35 736 +85 -45 695 +4 678 661 +17 PPA Volumes Price COGS Growth Admin Currencies Scope one-offs Mix drivers & comm. effect expenses 2017 2017 2018 2018 before PPA one-offs LFL 49 02/28/2019 2018 Full-Year Results 49
Slide 50: Growth drivers
Growth drivers In €m 2017.* 2018. Δ LFL Innovation 235 247 +6.0% Advertising and marketing 432 431 +2.7% Total growth drivers 667 678 +3.7% *Including WMF Gross amount, before French Research Tax Credit and 2018 capitalization 50 02/28/2019 2018 Full-Year Results
Slide 51: Operating profit
Operating profit 2017 2018 In €m Operating Result from Activity (ORfA) 661 695 +5.1% Discretionary and non-discretionary profit- (38) (34) sharing Other operating income and expense (43) (36) Operating profit 580 625 +8.0% 51 02/28/2019 2018 Full-Year Results
Slide 52: Net Profit
Net Profit In €m 2017 2018 Operating profit 580 625 +8.0% Interest expense (35) (33) Other financial income and expense (37) 1 Tax (99) (131) Non-controlling interests (34) (43) Net profit 375 419 +11.8% 52 02/28/2019 2018 Full-Year Results
Slide 53: Simplified balance sheet
Simplified balance sheet In €m 12/31/2017 12/31/2018 Tangible fixed assets 3,512 3,578 Operating WCR 1,222 1,120 Total assets to be financed 4,734 4,698 Equity 1,964 2,307 Provisions 413 383 Other current assets and liabilities 452 430 Net debt 1,905 1,578 Total financing 4,734 4,698 53 02/28/2019 2
Slide 54: Change in operating WCR
Change in operating WCR In €m 1,206 1,222 22,00% 1200 19.6% 1,120 20,00% 1100 18.8% 18,00% 1000 16.4% as a % of Group sales 16,00% 900 14,00% 800 12,00% 700 600 10,00% 500 8,00% 2016* pro forma WMF 2017 2018 54 02/28/2019 2018 Full-Year Results
Slide 55: Change in net debt
Change in net debt Operating cashflow: €552m (€322m in 2017) In €m 1,905 -838 1,578 +94 +127 +4 +203 -73 +22 +134 Cash Tax Invest. flow and financial expense Operating Other Dividends Currencies Other, non WCR operating Debt Debt end-2017 end-2018 55 02/28/2019 2018 Full-Year Results
Slide 56: Debt ratios in line with expectations
Debt ratios in line with expectations Net debt/ Equity Ratio at 12/31 1.1 1.0 0.6 0.7 0.5 0.4 0.2 0.3 0.3 0.2 0.1 Net debt/Adjusted EBITDA Ratio at 12/31 2.8 2.4 1.7 1.3 1.9 1.2 0.9 1.0 0.6 0.6 0.3 08 09 10 11 12 13 14 15 16 17 18 56 02/28/2019 2018 Full-Year Results 56
Slide 57: Outlook
03 OUTLOOK 57 02/28/2019 2018 Full-Year Results
Slide 58: Guidance for 2019
Guidance for 2019 ▪ Overall environment still uncertain ▪ Expected negative currency and commodity effects yet less penalizing than in 2018 Further organic sales growth 2019 OBJECTIVES Further increase in Operating Result from Activity (ORfA) Consumer activity: Professional activity: • More balanced
Slide 59: 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 Anissa Djaadi Raphaël Hoffstetter cpianon@groupeseb.com iposth@groupeseb.com adjaadi@groupeseb.com rhoffstetter@grou
Slide 60: Appendices
04 APPENDICES 60 02/28/2019 2018 Full-Year Results
Slide 61: 2018 quarterly sales
2018 quarterly sales In €m 9 Q1 Q2 H1 Q3 Q4 2018 months EMEA 686 652 1,337 715 2,053 1,171 3,223 Western Europe 503 494 997 539 1,536 894 2,430 Other countries 183 158 340 176 517 277 793 AMERICAS 161 177 338 235 573 314 887 North America 92 112 204 152 357 190 547 South America 69 65 134 83 216 124
Slide 62: 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 63: Agenda: next key dates
Next key dates AGENDA April 25 | after market closes Q1 2019 sales and financial data May 22 2019 Annual General Meeting July 24 | before market opens H1 2019 sales and results October 24 | after market closes 9-month 2019 sales and financial data 63 02/28/2019 2018 Full-Year Results