V-zug Holding Ltd · SIX:VZUG
V-zug — H1 2022 Earnings Presentation
37 slides from V-zug's earnings presentation, Jul 22, 2022
Slide 1: V-ZUG Group – Half-Year Report 2022
V-ZUG Group – Half-Year Report 2022 vzug.com 22 July 2022
Slide 2: Agenda
Agenda 1 H1 2022 – Overview 2 Markets 3 Products 4 Site Transformation 5 Financial Information H1 2022 6 Outlook 7 Investment Case 8 Q&A vzug.com 2
Slide 3: 1. V-ZUG Group – Overview
1. V-ZUG Group – Overview vzug.com
Slide 4: H1 2022 – Overview
1. H1 2022 – Overview Light and shadow in H1 2022: net sales almost on prior year level (high demand, production constraints); EBIT battered due to supply chain challenges & disruptions Great market response for innovative products and business ▪ Net sales: CHF 303.0 million, CHF -9.3 million resp.
Slide 5: H1 2022 – Overview: Net sales
1. H1 2022 – Overview Continuing high demand led to net sales almost on previous year’s level despite challenges and disruptions in the supply chains Net sales1) [in CHF million] Net sales1) by region [in CHF million] 350 13.9% 14.1% 16.0% 17.2 17.8% +10.3% 300 12.7% 20.5 16.1 +34.5% 9.8% 9.4% +20.9
Slide 6: H1 2022 – Overview: EBITDA, EBIT, free cash flow
1. H1 2022 – Overview Challenges in supply chains and cost increases in all purchasing material groups affect the operating result and free cash flow EBITDA [in CHF million] Operating result (EBIT) [in CHF million] Free cash flow [in CHF million] 60 60 20 17.2% 10 50 50 0 12.3% -0.6 40 40 -10 -12.7
Slide 7: Purchasing costs increase faster than sales prices
1. H1 2022 – Overview Purchasing costs increase faster than sales prices leading to a negative impact on the operating result Schematic development of procurement cost and selling prices (06/2021 = reference point) ─ Sales price development ─ Purchasing cost development ─ Purchasing cost development
Slide 8: Supply chain interruptions since summer 2021
1. H1 2022 – Overview Since summer 2021 – Supply chain interruptions lead to unexperienced measures Microcontrollers Displays Situation: critical Situation: critical ▪ World-wide shortage ▪ IC- and Touch Controller under Measures: allocation (hard to find on the ▪ Purchase orders placed up to 2023/2
Slide 9: Supply chain disruption mitigation measures
1. H1 2022 – Overview Supply chain disruption mitigation measures of V-ZUG Group Second source Redesign of key Securing electronic Build-up of Contingency suppliers for all microprocessors components (in inventories measures to main- components and implemented to particular, regarding critical tain
Slide 10: Sustainability - CO2 emissions
1. H1 2022 – Overview Sustainability - CO2 emissions: Quantities, measures and targets Scope 1&2 (direct and indirect emissions), Scope 3 (indirect emissions), Status 2019-2021 Status 2021 9.5% 30.6% 60.0% ■ Use of sold products ■ Purchased Goods & Services ■ Others Target: Reduction by - 80% by 203
Slide 11: 2. Markets
2. Markets vzug.com
Slide 12: Markets: Switzerland and International
2. Markets Switzerland ▪ Renovation of ZUGORAMA Chur ▪ Modernisation of ZUGORAMA Zug (in late summer 2022) International Markets ▪ Grand opening of V-ZUG Studio in London in March 2022 and Paris in June 2022 ▪ V-ZUG Studio in Sydney to be opened 2023 ▪ Contracts are close to conclusion for V-ZUG Stu
Slide 13: Increased market communication activities
2. Markets General – Increased market communication activities Broad-based cross-media campaign launched in Switzerland under the theme of “Perfection you can feel”: ▪ Avant-garde Swiss architect Valerio Olgiati (l) and ▪ French-Swiss ex-Formula 1 racing driver Romain Grosjean (r) More prominent/per
Slide 14: Market CH and International
2. Markets Market CH and International – Lower net Net sales CH vs. International sales but still robust demand in CH and (H1 2022 vs H1 2021) continuing strong net sales growth in our International Markets 5.0% 5.7% ▪ Net sales in Switzerland amounted to CHF 249.2 million, lower compared to the pri
Slide 15: 3. Products
3. Products vzug.com
Slide 16: PowerSteam
3. Products PowerSteam ▪ A world first and a significant testimony to V ZUG’s outstanding expertise in combining a steamer and a microwave in one appliance ▪ The new inverter technology enables food to be prepared quickly and gently with steam and microwave modes in action at the same time «The inno
Slide 17: CombiCookTop
3. Products CombiCookTop ▪ A compact hob with an integrated extractor fan, offering various configurations for more performance and flexibility ▪ The new concept in grease and odor filtration ensures easy cleaning and user-friendly maintenance, thus setting new market standards vzug.com 17
Slide 18: Progress with digital solutions and new business models
3. Products Progress with digital solutions and new business models ▪ V-Kitchen – extremely satisfying response to V- ZUG’s digital cooking assistant. Expectations exceeded, particularly regarding the active partner network, for which an important partner was acquired in the form of Migusto, the Mig
Slide 19: 4. Site Transformation
4. Site Transformation vzug.com
Slide 20: Zug – foundation stone of Zephyr Ost
4. Site Transformation Zug – laying of foundation stone of new production building “Zephyr Ost” took place in March 2022 Presses / Administration / Surface R&D Technology “Zephyr West” “Zephyr Hangar” (2026) (2020) Logistics Centre “ZUGgate” (2008) Core of the vertical factory “Zephyr Ost” Spare spa
Slide 21: Sulgen – new refrigerator factory
4. Site Transformation Sulgen – new refrigerator factory operational since beginning of 2022; last relocation activities from the old site in Arbon to Sulgen concluded in March 2022 vzug.com 21
Slide 22: 5. Financial Information H1 2022
5. Financial Information H1 2022 vzug.com
Slide 23: Result – V-ZUG Group
5. Financial Information H1 2022 Result – V-ZUG Group CHF million H1 2022 ∆ H1 2021 1 Net sales 303.0 -3.0% 312.3 EBITDA 19.2 -64.2% 53.7 EBITDA margin in % 6.3 -1’090 bp 17.2 Operating income (EBIT) 4.3 -88.9% 38.3 EBIT margin in % 1.4 -1’090 bp 12.3 Free cash flow -49.2 n/a -12.7 ROCE in % 2 7.3 -
Slide 24: Lower EBITDA and EBIT due to delivery delays and cost inflation
5. Financial Information H1 2022 Lower EBITDA and EBIT due to delays in delivery and cost inflation caused by shortages in supply chains Net sales [in CHF million] EBITDA [in CHF million] Operating result (EBIT) [in CHF million] 350 60 60 312.3 53.7 303.0 300 50 50 257.7 258.6 250 40 40 38.3 200 30
Slide 25: Result – Household Appliances Segment
5. Financial Information H1 2022 Result – Household Appliances Segment CHF million H1 2022 ∆ H1 2021 Net sales 303.0 -3.0% 312.3 Operating income (EBIT) 1.8 -95.1% 36.4 EBIT margin in % 0.6 -1’110 bp 11.7 ROCE in %1 10.3 -2’570 bp 36.0 ▪ FX neutral net sales -2.8% ▪ Net sales in Switzerland decrease
Slide 26: Result – Real Estate Segment
5. Financial Information H1 2022 Result – Real Estate Segment CHF million H1 2022 ∆ H1 2021 Net sales – – – Operating income (EBIT) 3.1 28.4% 2.4 EBIT margin in % – – – ROCE in %1 3.8 100 bp 2.8 ▪ Increase of EBIT due to higher rent income related to the refrigerator factory in Sulgen ▪ Major invest
Slide 27: FTEs, CAPEX and R&D expenses
5. Financial Information H1 2022 Increase in no. of FTEs mainly in operations, international growth, strengthening digital marketing as well as sales & service organisation Total FTEs [as of 30 June; incl temps] CAPEX [in CHF million] R&D expenses [in CHF million] 2’500 35 35 12.0% 10.0% 2’145 11.4%
Slide 28: Cash flow statement V-ZUG Group
5. Financial Information H1 2022 Cash flow statement V-ZUG Group CHF million H1 2022 H1 2021 Cash flow from operating activities -25.2 13.6 ▪ of which taxes paid -6.2 -5.6 Cash flow from investing activities -24.0 -26.3 ▪ of which investments in tangible assets -22.2 -25.8 ▪ of which investments in
Slide 29: Balance Sheet V-ZUG Group
5. Financial Information H1 2022 Balance Sheet V-ZUG Group CHF million 30.06.2022 in % 30.06.2021 in % Cash and cash equivalents incl. securities 68.0 11.0 95.8 16.1 Other current assets 208.6 33.7 180.6 30.3 Current assets 276.7 44.6 276.4 46.3 Tangible assets 305.6 49.3 281.7 47.2 Financial & inta
Slide 30: Dividend policy
5. Financial Information H1 2022 Dividend policy ▪ V-ZUG Holding AG is aiming at a dividend policy that is primarily based on the distributable profit level. ▪ In the medium to long term, the profit distribution ratio should be between 20% and 40% of the group’s net result. ▪ As communicated in cont
Slide 31: Outlook Full Year 2022
6. Outlook Full Year 2022 ▪ Increased supply chain challenges, leading to… − purchase cost increases and lack of availability of electronic components (and more specifically, microchips) and − production constraints and delivery delays … are negatively affecting V-ZUG Group’s net sales and operating
Slide 32: Update of mid-term targets 2023 - 2026
6. Outlook Update of mid-term targets 2023 - 2026 Beyond 2022 financial year ▪ V-ZUG Group to continue to focus on returning to the figures stated in its medium-term objectives once the situation in procurement markets has stabilised. ▪ The above optimism is a result of the significant order backlog
Slide 33: 7. Investment Case
7. Investment Case vzug.com
Slide 34: Why invest in V-ZUG?
7. Why invest in V-ZUG? 1 2 3 4 5 Proven ability to Market leader in Well established and Ongoing ability to Sustainability generate double Switzerland with a recognised player in lead innovations in (quality, durability, digit EBIT margins unique and strong premium segment in the industry timeless
Slide 35: 8. Q&A
8. Q&A vzug.com
Slide 36: Back-up to Markets: International presence
Back-up to Markets International – strengthened global presence in metropolitan areas United Kingdom Russia (Moscow & St. Petersburg) Extension of international footprint Europe: Switzerland Ukraine ▪ Modernized third-party USA BeNeLux Italy Turkey France operated V-ZUG Germany Lebanon China Studios
Slide 37: Disclaimer
Disclaimer ▪ V-ZUG Holding AG (including all its affiliates) has made great efforts to include accurate and up-to-date information in this document. However, we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this documen