Seb Sa · EURONEXT:SK
Seb Sa — Groupe SEB — H1 2022 Earnings Presentation
46 slides from Seb Sa's earnings presentation, Jul 21, 2022
Slide 1: First-Half 2022 Sales and Results
FIRST-HALF 2022 SALES AND RESULTS Ecully | July 21, 2022 Click here to listen to our webcast or find us at www.groupeseb.com
Slide 2: Note
FIRST-HALF 2022 SALES AND 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 trend
Slide 3: Summary
S U M M A RY 1. A contrasted first half-year 2. Sales analysis 3. Results 4. Balance sheet and financial structure 5. 2022 Outlook 6. Appendixes 3 21/07/2022 First-half 2022 sales and results
Slide 4: A Contrasted First Half-Year
01 A CONTRASTED FIRST HALF-YEAR
Slide 5: Deterioration in macroeconomic environment is impacting demand in mature countries
After a good start to the year, the deterioration in the macroeconomic environment is impacting demand in mature countries… ▪ Consumers concerned about their purchasing power ▪ Spending tradeoffs: • To other consumer goods and services (leisure, travel, etc.): ✓ Positive impact on the Professional b
Slide 6: ... in SDA and Cookware
… in SDA and Cookware… SDA market in value - EMEA (14 countries) JF21 MA21 MJ21 JA21 SO21 ND21 JF22 MA22 Pan market in value - France and Germany JF21 MA21 MJ21 JA21 SO21 ND21 JF22 MA22 Rolling 12-month 6 21/07/2022 First-half 2022 sales and results
Slide 7: Trade-down temporarily unfavorable to established brands
… resulting in a trade-down temporarily unfavorable to established brands SDA market share evolution for established brands vs previous year – in value EMEA (14 countries) JF21 MA21 MJ21 JA21 SO21 ND21 JF22 MA22 7 21/07/2022 First-half 2022 sales and results
Slide 8: Market momentum vs 2019 remains largely positive
Market momentum vs 2019 remains largely positive % change for SDA market in value vs 2019 EMEA (14 countries) 32.1% 29.7% 28.6% 27.9% 23.0% 22.5% 22.3% 14.5% JF21 MA21 MJ21 JA21 SO21 ND21 JF22 MA22 8 21/07/2022 First-half 2022 sales and results
Slide 9: Group performances have been contrasted in the first half
In this context, the Group's performances have been contrasted in the first half H1 Sales Q2 Sales €3,666m €1,750m + 1.6 % ; - 2.3 % LFL - 0.4 % ; - 5.1 % LFL H1 ORFA H2 ORFA €199m, ORFA margin 5,4% €59m, ORFA margin 3,4% vs €320m in H1 2021 vs €122m in Q2 2021 Net financial debt at 30/06/22 €2,447m
Slide 10: Sales Analysis
02 SALES ANALYSIS
Slide 11: Our half-year sales were impacted by specific factors
Our half-year sales were impacted by specific factors Q1 2022 Q2 2022 H1 2022 change vs 2021 LFL +0.4% -5.1% -2.3% - €81m Impacts on LFL growth rate: Loss in sales in Russia-Ukraine -1.1% -2.0% -1.6% - €57m Non-recurrence of Loyalty Programs -2.3% -0.6% -1.4% - €52m Loss in sales linked to lockdowns
Slide 12: Positive currency effects offsetting organic decline
Positive currency effects offsetting organic decline Sales in €m 3,666 +137 - 3,610 -81 Organic Currency Perimeter growth effect - 2.3% +3.9% 0.0% + 1.6 % H1 2021 H1 2022 12 21/07/2022 First-half 2022 sales and results
Slide 13: Details of the currency impact on first-half sales
Details of the currency impact on first-half sales In €m Q1 : + €56m 105 Q2 : + €81m H1 : + €137m 85 65 45 25 5 -15 -35 CNY TRY JPY USD SGD BRL RUB CHF CAD VND CZK PLN UAH MXN COP GBP 13 21/07/2022 First-half 2022 sales and results
Slide 14: Review by business
1 Review by business 2 Review by product line / geography 14 21/07/2022 First-half 2022 sales and results
Slide 15: Contrasted performances amid the two businesses
Contrasted performances amid the two businesses Sales €3,666m +1.6% -2.3% LFL Professional Consumer €330m €3,336m +13.6% +9.5% LFL +0.5% -3.3% LFL 15 21/07/2022 First-half 2022 sales and results
Slide 16: The Professional business confirms its recovery
The Professional business confirms its recovery H1 sales €330m +13.6% +9.5% LFL Q2: +8.5 % +3.6 % à tcpc ▪ Solid first-half sales in Professional Coffee: ➔ +6% LFL vs high comparatives in the 2nd quarter 2021 (deals) ▪ Growth > 50% in Hotel equipment ▪ Krampouz: growth ~ 25% 16 21/07/2022 First-half
Slide 17: Professional coffee: vigorous core business
Professional coffee: vigorous core business ▪ Firs-half non-deal revenue up ~ 25% • Machines and services • Diversified customer portfolio ▪ In Europe: revenue +20% ▪ In the US, excellent first-half performance: • WMF/Schaerer sales almost doubling (excluding deals) • Wilbur Curtis sales +50% ▪ In C
Slide 18: Consumer business impacted by a slowdown in demand
Conversely, the Consumer business is impacted by a slowdown in demand sharper than anticipated... H1 sales €3,336m +0.5% -3.3% LFL ▪ After a solid 1st quarter, decline in sales in the 2nd Q2: -1.3% -5.9% LFL quarter ▪ Impact of the non-recurrence of 2021 Loyalty Programs on sales: -1.6 pts of growth
Slide 19: Consumer sales very focused on EMEA
… very focused on EMEA Consumer sales by region over the period, vs 2021, LFL AMERICAS EMEA ASIA €515m / -2.2% €1,494m / -8.9% €1,327m / +4.2% +7.0 % + 1.8 % + 1.3 % Q2 Q1 Q2 - 4.8 % - 6.2 % Q1 Q1 -13.4 % Q2 H1 2022: €3,336m / -3.3% vs 2021 Q1: -0.8% / Q2: -5.9% 21/07/2022 First-half 2022 sales and
Slide 20: A few major Group markets were particularly hit in Q2
A few major Group markets were particularly hit in the 2nd quarter... H1 2022 vs 2021, LFL ▪ Impact of Loyalty Programs: -6 pts France ▪ Marked slowdown in demand, inventories in the retail -20% LFL ▪ Record comps for the Group in 2021 Russia/Ukraine ▪ Acceleration of the impact in the 2nd quarter ~
Slide 21: China confirms good momentum despite the lockdowns
China confirms good momentum over the semester despite the lockdowns H1 2022 vs 2021 LFL ▪ Robust momentum in the 1st quarter H1 sales China ▪ Impact of lockdowns on 2nd quarter sales +6.6% • Decline in April Shortfall ~ €40m vs 2021 • Stability in May • ~12% increase in June Q1: +10.9% ▪ Supor outp
Slide 22: Supor continues to consolidate its positions in China
Supor continues to consolidate its positions in the Chinese market ▪ Supor # 1 online in May-June ahead of Midea in electrical cooking ▪ Supor’s reinforced leadership in cookware ▪ Continuous activation of growth levers by Supor • Innovation • Product offering extension • Online sales development ➔
Slide 23: Review by product line / geography
1 Review by business 2 Review by product line / geography 23 21/07/2022 First-half 2022 sales and results
Slide 24: Consumer sales change by product line
Consumer sales change by product line (2022 H1 Sales vs 2021, LFL) 25% 20% LKA* Linen care 15% Home care 10% Electrical cooking 5% Cookware 0% Beverage -5% Home comfort -10% Food preparation -15% -20% Personal care -25% * LKA : Large Kitchen Appliances 24 21/07/2022 First-half 2022 sales and results
Slide 25: First-half sales by region
Firs-half sales by region Reminder ∆ 22-21 ∆ 22-21 ∆ 22-19 In €m H1 2021 H1 2022 H1 2021 reported LFL reported LFL TOTAL 1,662 1,494 -10.1% -8.9% +34.9% +6.6% EMEA Western Europe 1,171 1,072 -8.5% -8.7% +27.2% +3.2% Other countries 490 422 -14.0% -9.3% +55.0% +16.4% TOTAL 480 515 +7.2% -2.2% +57.2%
Slide 26: Results
03 RESULTS 26
Slide 27: Operating Result From Activity (ORFA)
Operating Result From Activity (ORFA) In €m 2021 2022 Δ Δ tcpc Sales 3,610 3,666 +1.6% -2.3% ORFA 320 199 -€121m - €78m ORFA margin 8.9% 5.4% -3.5pts -2.1pts 27 21/07/2022 First-half 2022 sales and results
Slide 28: ORFA bridge: H1 2021 to 2022
ORFA bridge: H1 2021 ➔ 2022 + 366 - 189 In €m 320 - 61 - 149 - 45 242 - 43 0 199 Volumes Price COGS Growth Administrative Currencies Scope Mix drivers & commercial effect expenses 2021 2022 2022 LFL 28 21/07/2022 First-half 2022 sales and results
Slide 29: Growth drivers – First half-year
Growth drivers – First half-year In €m 2021 2022 Δ tcpc Innovation 120 135 +10.2% Marketing and 244 305 +20.1% advertising Total growth 365 440 +16.8% drivers 29 21/07/2022 First-half 2022 sales and results
Slide 30: From ORFA to Net profit – First half-year
From ORFA to Net profit – First half-year In €m 2021 2022 Operating Result from Activity (ORFA) 320 199 Discretionary and non-discretionary profit-sharing (16) (13) Other operating income and expense (46) (7) Operating profit 258 179 Net financial expense (27) (47) Tax (53) (31) Non-controlling inte
Slide 31: Balance Sheet and Financial Structure
04 BALANCE SHEET AND FINANCIAL STRUCTURE
Slide 32: Simplified balance sheet
Simplified balance sheet 30/06/2021 31/12/2021 30/06/2022 In €m Tangible fixed assets 4,285 4,444 4,584 Operating WCR 1,128 1,115 1,808 Total assets to be financed 5,413 5,559 6,392 Equity 2,816 3,291 3,406 Provisions 438 394 307 Other current assets and liabilities 309 350 232 Net financial debt 1,
Slide 33: Change in Operating WCR
Change in Operating WCR H1 2021 H1 2022 €m % sales* €m % sales* Deterioration in WCR, by €680m, related to higher inventories: Inventories 1,455 19.1% 2,241 27.6% ▪ Voluntary policy to meet initially anticipated demand ▪ Higher prices for raw materials, components and Receivables 752 9.9% 676 8.3% f
Slide 34: Cash flow generation / Free cash flow
Cash flow generation / Free cash flow In €m 321 199 + 122 Amortization/ - 636 Employee - 683 profit-sharing ORFA Adjusted EBITDA Investments Chg. Operating Tax and WCR - 164 interest Chg. non operating WCR - 102 and others - 102 Free cash flow 34 21/07/2022 First-half 2022 sales and results
Slide 35: Change in net financial debt
Change in net financial debt In €m -7 2,447 + 70 Currencies Other non + 178 operating Dividends + 683 1,524 Free cash flow Net financial debt Net financial debt end 2021 end-June 2022 35 21/07/2022 First-half 2022 sales and results
Slide 36: Ratios at June 30
Ratios at June 30 Operating WCR as % of sales 22.3% 21.1% 21.1% 20.2% 19.0% 18.4% 19.1% 17.6% 16.8% 14.8% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net financial debt/equity 0.7 0.7 0.4 0.4 0.4 1.2 1.0 0.3 1.0 0.8 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net financial debt/adjusted
Slide 37: 2022 Outlook
05 2022 OUTLOOK
Slide 38: 2022 outlook (1/2)
2022 outlook (1/2) ▪ After a solid 1st quarter, the Group had made the assumption of a gradually improving economic situation for the rest of the year but the climate worsened in the 2nd quarter ➢ The Group now expects this environment to persist in the 2nd half of the year ▪ Under these conditions,
Slide 39: 2022 outlook (2/2)
2022 outlook (2/2) ▪ In response to the current economic environment: • Rapid implementation of the necessary actions in terms of prices and strict control of its operating costs, including the adaptation of growth drivers to present market conditions • Plan to gradually adjust its inventories to ex
Slide 40: Appendixes
06 APPENDIXES
Slide 41: Q1 sales by region
Q1 sales by region Reminder ∆ 22-21 ∆ 22-21 ∆ 22-19 In €m Q1 2021 Q1 2022 Q1 2021 reported LFL reported LFL TOTAL 870 813 -6.6% -4.8% +41.5% +14.3% EMEA Western Europe 599 582 -2.9% -3.2% +34.7% +12.2% Other countries 271 231 -14.6% -8.3% +57.1% +20.1% TOTAL 243 243 +0.3% -6.2% +61.0% +44.4% AMERICA
Slide 42: Q2 sales by region
Q2 sales by region Reminder ∆ 22-21 ∆ 22-21 ∆ 22-19 In €m Q2 2021 Q2 2022 Q2 2021 reported LFL reported LFL TOTAL 791 680 -14.0% -13.4% +28.2% -1.3% EMEA Western Europe 572 490 -14.3% -14.5% +20.2% -5.3% Other countries 220 190 -13.3% -10.6% +52.5% +10.5% TOTAL 237 271 +14.3% +1.8% +53.4% +40,0% AME
Slide 43: H1 2022 sales by region
H1 2022 sales by region Other Asian countries 8% Western Europe 34% China 29% €3,666m -2.3% LFL South America 4% Other EMEA countries 12% North America 13% 43 21/07/2022 First-half 2022 sales and results
Slide 44: Impact of the loss in sales in Ukraine and Russia
Impact of the loss in sales in Ukraine and Russia: -€57m Sales Russia-Ukraine impact H1 2022 vs 2021 LFL LFL -0.7%, change restated -2.3% Impact - 1.6 pts -1.7%, change restated -3.3% CONSUMER Impact - 1.6 pts -6.2%, change restated -8.9% EMEA Impact - 2.7 pts -9.3% Other EMEA +2.9%, change restated
Slide 45: Glossary
Glossary On a like-for-like basis (LFL) – Organic The amounts and growth rates at constant exchange rates and consolidation scope in a given year compared with the previous year are calculated: • using the average exchange rates of the previous year for the period in consideration (year, half-year,
Slide 46: Contacts
Investor/Analyst relations Media Relations Groupe SEB Groupe SEB Financial Communication Corporate Communication Dept and Investor Relations Dpt C O N TA C T S Cathy Pianon Isabelle Posth cpianon@groupeseb.com iposth@groupeseb.com Phone: + 33 (0) 6 33 13 02 00 Phone: +33 (0) 4 72 18 16 04 comfin@gro