Leifheit AG · XETR:LEI
Leifheit — H1 2024 Earnings Presentation
57 slides from Leifheit's earnings presentation, Aug 8, 2024
Slide 1: Investor Presentation 6M 2024
Investor Presentation 6M 2024 08 August 2024
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: Leifheit records higher profitability in 6M 2024
Executive Summary: Leifheit records higher profitability in 6M 2024 New, holistic corporate strategy to become the European market leader for mechanical cleaning and drying Focus on selected initiatives for profitable growth and cost efficiency Group turnover at 135.0 m€ in line with expectations, n
Slide 4: Consumer climate: slight recovery at a low level
Consumer climate: slight recovery at a low level Consumer confidence index (CCI) GfK consumer climate index June 2024, EU-27 July 2024, Germany Source: https://www.oecd.org/en/data/indicators/consumer-confidence-index-cci.html Source: GfK Konsumklima powered by NIM / co-funded by European commission
Slide 5: Group turnover in line with expectations – catch-up effects in second quarter
Group turnover in line with expectations – catch-up effects recorded in second quarter Group turnover by segment, region in m€ Group Household Wellbeing Private Label Turnover 135.0 113.2 7.7 14.1 • Q1 was negatively impacted by in m€ low discounter promotions Growth -2.2% -1.6% -10.7% -2.3% • Q2 si
Slide 6: Continuing strong demand for Leifheit Black Line
Highlights 6M 2024 Continuing strong demand for Leifheit Black Line Ironing Board Classic M Black Pegasus 150 Solid Slim Black on-top sales volumes on-top sales volumes +52% +26% +43% +85% mov. 06 2023 mov. 06 2024 GER mov. 06 2023 GER mov. 06 2024 mov. 06 2023 mov. 06 2024 GER mov. 06 2023 GER mov.
Slide 7: 40 years of Linomatic rotary dryer
Highlights 6M 2024 40 years of Linomatic rotary dryer • Successful international promotions to mark the 40th anniversary of the Linomatic rotary dryer • Linomatic range with 8% turnover growth in 6M 2024 vs. 6M 2023 Investor Presentation August 2024 7
Slide 8: Strong E-commerce growth of +9.0% in 6M 2024
Highlights 6M 2024 Strong E-commerce growth of +9.0% in 6M 2024 Distribution channels Turnover 6M 2024 in % (previous year’s figures) Electro Discounter 3 (3) Others 8 (12) 8 (7) • E-commerce again one of the fastest growing Importers/Exporters channel with +9.0% in 6M 2024 6 (6) • Expanding our D2C
Slide 9: 6M 2024 Financials
6M 2024 Financials
Slide 10: Group turnover 6M 2024 in line with expectations
Financials 6M 2024 Group turnover 6M 2024 in line with expectations Group turnover development by quarters in m€ 300 +6.2% • Positive catch-up effects in Q2 +16.0% +2.7% 2024 due to advertising activities -12.8% for high-margin bestsellers and 250 63 distribution expansion in important 70 58 Europea
Slide 11: EBIT increased due to improved gross margin
Financials 6M 2024 EBIT increased due to improved gross margin, despite strategy-related one-off effects from organizational changes Group earnings development 6M 2020 – 6M 2024 in m€ 14 13.6 6M 2023 6M 2024 ∆ 12 Group turnover m€ 138.1 135.0 -2.2% 10 9.5 Gross margin % 40.9 44.4 3.5 pps 8.8 Foreign
Slide 12: Increasing gross margins
Financials 6M 2024 Increasing gross margins +3.2 pps Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Gross Margin % 40.5 41.3 42.6 44.3 44.7 44.5 • Improvement in gross margin to 44.5% in Q2 2024 (Q2 2023: 41.3%) because of - positive product mix effects due to the focus on profitable products - inc
Slide 13: Container freight prices on the rise again
Financials 6M 2024 Container freight prices on the rise again Global container freight rate index in US dollars per 40-foot container (source: statista) • International Container freight rates hitting over 5,800 US Dollars in June 2024 – the highest value on record Investor Presentation August 2024
Slide 14: Raw Material price development
Financials 6M 2024 Raw Material price development • Average price increase of main raw materials appr. +37% vs. 2020* (-6% vs. previous quarter) • Some raw material costs (esp. Packaging and Aluminium) with upward trend, price level of 2019/20 will be not reached in the short term • Major pricing im
Slide 15: Free cash flow of 9.9 m€ after 7.6 m€ in 6M 2023
Financials 6M 2024 Free cash flow of 9.9 m€ after 7.6 m€ in 6M 2023 in m€ 6M 2023 6M 2024 ∆ Cash flow from operating activities 10.8 11.7 0.9 Cash flow from investment activities -3.2 -1.8 1.4 Cash flow from financing activities -6.9 -11.0 -4.1 Free cash flow1 7.6 9.9 2.3 in m€ 30/06/2023 30/06/2024
Slide 16: Leifheit has solid liquidity to implement the new corporate strategy
Financials 6M 2024 Leifheit has solid liquidity to implement the new corporate strategy Group liquidity 31/12/2023 vs. 30/06/2024 in m€ 10.9 2.2 3.8 • Free cash flow increased 4.7 -0.3 in 6M 2024 to 9.9 m€ 41.3 -1.8 1.4 40.2 (6M 2023: 7.6 m€) -10.0 -11.3 -0,7 • Positive effects from the reduction in
Slide 17: Strategy Update
Strategy Update
Slide 18: Success factors for long-term success
Group Strategy Success factors for long-term success: focused corporate strategy, consistent entrepreneurial implementation and cultural changes Investor Presentation August 2024 18
Slide 19: Corporate Strategy: Philosophy and Vision
Corporate Strategy OUR PHILOSOPHY Our ideas to make your life easier. OUR VISION We are the European branded leader and specialist in mechanical cleaning and drying – with highest consumer satisfaction, an entrepreneurial culture and a sustainability mindset. Investor Presentation August 2024 19
Slide 20: Introduction to Corporate strategy, philosophy, vision and values
Corporate Strategy Introduction to Corporate strategy, philosophy, vison and values Find out more about our philosophy, vision and core values in our corporate film: https://www.leifheit-group.com/en/company/vision-and-strategy/ Investor Presentation August 2024 20
Slide 21: New strategy focuses on growth and efficiency drivers
Corporate Strategy New strategy focuses on important growth and efficiency drivers – based on our core values Investor Presentation August 2024 21
Slide 22: Our growth drivers
Our growth drivers » .. 7
Slide 23: Brand Positioning: Stronger, more modern Leifheit brand
Corporate Strategy Brand Positioning: Stronger, more modern Leifheit brand • Rework to a more modern and ambitious brand positioning based on deep user insights • Transform the brand to digital first Investor Presentation August 2024 23
Slide 24: Focus Categories: Mechanical cleaning and drying
Corporate Strategy Focus Categories: Mechanical cleaning and drying Market share mechanical cleaning & drying Core Europe markets, market share (sell-out) in % Leifheit 9,6% Rest • Strong European growth potential for Total market mechanical cleaning and drying € 2.4 billion* • 90% of investments an
Slide 25: Focus Markets: High growth potential outside of Germany
Corporate Strategy Focus Markets: High growth potential outside of Germany Rest of world 2% Germany 23% • Strong growth potential outside of Germany with 77% Germany of total market versus only 58% 40% of internal turnover Europe excl. Germany 58% European core markets • Defined country focus in Eur
Slide 26: Innovation: Bigger + Better, POWER CLEAN launch
Corporate Strategy Innovation: Bigger + Better First example: POWER CLEAN launch as of July 2024 Investor Presentation August 2024 26
Slide 27: E-Commerce: Full consumer journey
Corporate Strategy E-Commerce: Full consumer journey to maximize e-commerce/digital • Digital investments in the awareness phase to bring more users into the funnel and to purchase Investor Presentation August 2024 27
Slide 28: Our efficiency drivers
Our efficiency drivers EFFICIENCIES
Slide 29: Our efficiency drivers
Corporate Strategy Our efficiency drivers • Focusing the company on drying and mechanical cleaning and aiming for European leadership; clear strategies for Kitchen category, Soehnle, Birambeau and Herby for sustainable success • Transformation and digitalization of processes along the entire value c
Slide 30: Value optimization: lean and efficient production and logistics
Corporate Strategy Value optimization: Steps towards lean and efficient production and logistics have been taken Actions: • Implementation of synchronic production cells and production lines • Introduction of D2C dedicated assortment Productivity production site* Productivity Logistics D2C** 2020 –
Slide 31: Efficient organization: lean organizational structures
Corporate Strategy Efficient organization: Steps towards lean and efficient organizational structures have been taken New sales and marketing organization • Follows the strategy with a view to the focus markets and e-commerce growth drivers: • Global Sales Function • Global E-Commerce Function • New
Slide 32: Outlook 2024
Outlook 2024
Slide 33: 2024 EBIT and Free Cashflow forecast raised
Outlook 2024 2024 EBIT and Free Cashflow forecast raised – still challenging market environment ahead Forecast 2024 Group turnover slightly above the previous year Turnover Household slightly above the previous year Turnover Wellbeing slightly below the previous year Turnover Private Label slightly
Slide 34: Your questions, please.
—~ Your questions, please.
Slide 35: Annex
Annex
Slide 36: Experienced Management Board
Annex Experienced Management Board Alexander Igor Iraeta Marco Reindler Munduate Keul CEO COO CFO Previous experience Previous experience Previous experience • Brings more than 25 years of • Many years of experience as CTO at • Responsible for Controlling, international experience in leading Igus Gm
Slide 37: Leifheit is financially solid and pays reliable dividends
Annex Leifheit is financially solid and pays reliable dividends to shareholders 1.50 1,50 Dividend 1,00 1.00 for 2023: 1.05 € 0,50 0.50 0,00 0.00 Bonus/special dividend Dividend Strong financial structure Solid long-term stock performance in m€ Assets Liabilities 250 204 208 250 204 208 Cash and fin
Slide 38: Central and Eastern Europe with slight turnover growth
Annex Central and Eastern Europe with slight turnover growth, Germany influenced by shifts in sales Group turnover by region Group turnover by region in m€ 6M 2024 in % 160 2.4% 138 13.5% 135 40.0% Germany 140 3 3 16 Central Europe 120 18 Eastern Europe 100 58 44.1% Rest of world 59 80 • Germany dow
Slide 39: Turnover decline across all segments in 6M 2024
Annex Turnover decline across all segments in 6M 2024 as expected, but on track for 2024 turnover forecast Group turnover by segment Group turnover by segment in m€ 6M 2024 in % 10.5% 160 Household 138 5.7% 135 Wellbeing 140 14 14 Private Label 120 9 8 100 83.8% 80 • Household segment down by -1.6%,
Slide 40: Leifheit Group structure
Annex Leifheit Group structure Household Wellbeing Private Label Kitchen Standing Laundry Care Cleaning Kitchen Goods Kitchen + Personal Scales Goods Dryers Wellbeing 6% Rest of Kitchen Goods World 12% 2% Germany Laundry Care Eastern 40% Turnover by 48% Europe 14% Turnover product by region category
Slide 41: Committed to shareholder returns
Annex Committed to shareholder returns Long-term dividend development Dividend yield1 Dividend per share / in € 2023: 6.5% 2019: 2.3% 2022: 5.2% 2018: 5.9% 2021: 2.9% 2017: 3.8% 2020: 2.4% 2016: 5.1% 2023 Dividend of 1,50 0.95 € + special 1.05 € Dividend 1,00 0.10 € 0,50 0,00 1984 1985 1986 1987 198
Slide 42: Increased efficiency and productivity led to reduction in number of employees
Annex Increased efficiency and productivity led to reduction in number of employees Employee development* Employees by region* 6M 2024 (average number) 6M 2024 (average number) Private Label 1.200 7.8% 1,043 Wellbeing 1,030 Germany Household 14.8% Czech Republic 1.000 128 37.8% 138 France 33 25 Othe
Slide 43: Distribution in all relevant distribution channels
Annex Distribution in all relevant distribution channels Blue Chip client base Distribution channels Turnover H1 2024 in % (previous year’s figures) Electro Discounter 3 (3) Others 8 (12) 8 (7) Importers/Exporters Top 10 6 (6) Customers account for 50% Retail-/Whole sale, Hypermarkets of Leifheit’s
Slide 44: Long-term financial overview
Annex Long-term financial overview 2019 2020 2021 2022 2023 Group turnover m€ 234.0 271.6 288.3 251.5 258.3 Profitability ▪ Gross margin % 43.1 45.0 42.3 38.7 42.1 ▪ Cash flow 14.0 20.8 from operating activities m€ 15.9 4.0 16.4 ▪ Free cash flow m€ 10.1 -5.5 9.6 8.8 12.1 ▪ EBIT m€ 9.9 18.8 20.1 2.8
Slide 45: Long-term financial overview
Annex Long-term financial overview 2019 2020 2021 2022 2023 Per share Net result for the period, EPS2 € 0.61 1.32 1.49 0.13 0.34 Free cash flow € 1.06 -0.57 1.00 0.92 1.27 Dividend € 0.55 1.05 1.05 0.70 0.952 Special dividend € -- -- -- -- 0.102 Investments m€ 6.0 9.6 7.3 5.4 8.9 Depreciation m€ 8.2
Slide 46: Leifheit makes top quality household products
Annex Leifheit makes top quality household products Profi Floor Wiper Profi XL Set Pegasus 150 black Linomatic 600 Deluxe 4.6 stars 4.5 stars 4.7 stars 4.7 stars Investor Presentation August 2024 46
Slide 47: Our European production and logistic footprint
Annex Our European production and logistic footprint ensures efficient and reliable supply to customers Paris/F (Leifheit/Birambeau) Nassau/D (Leifheit/Soehnle) • About 15 employees • About 270 employees • Marketing, sales • Marketing, sales, development, quality and administration assurance, centra
Slide 48: 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 49: Soehnle awards (selection)
Annex Soehnle awards (selection) Kitchen Scales Personal Scales Page Profi + Page Profi 300 Style Sense Personal Scales Style Sense Bamboo Magic Page Aqua Proof Kitchen Scale Body analysis scales Blood pressure monitors Shape Sense Connect 100 + 200 Systo Monitor 200 + 300 Investor Presentation Augu
Slide 50: Leifheit – 65 years of passion for housework
Annex Leifheit – 65 years of passion for housework 2010 1984 • Sale of the business unit • IPO of Leifheit AG ‘bathroom’ including the brands Spirella, Kleine Wolke and Meusch 1988 2008 • License agreement for 2024 • Takeover of Dr Oetker Bakeware • New corporate 60% of Herby/F • Acquisition of Spir
Slide 51: 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 52: Significant free float and international investors
Annex Significant free float and international investors Shareholder structure August 2024 MKV Verwaltungs GmbH, Grünwald (GER) 10.03% 10.03% Ruthild Loh, Haiger (GER) 8.26% 8.26% Leifheit AG Nassau (GER), treasury shares 5.51% 5.02% 43.66% 0.05% Employee shares subject to a lock-up period 0.05% Ala
Slide 53: ESG: Strategic sustainability goals
Annex ESG: Strategic sustainability goals 1 Focus on climate neutrality till 2030 Emission reduction Analyse our emissions Objectives until 2030 Compensate measures until 2030 • Climate balance for our • Substantially reduce • Energy: • Compensate non- Read more at our most important sites in the em
Slide 54: Our ESG Principles
Annex Our ESG Principles 1 Read more at our sustainability report 2023 www.leifheit-group.com/en/investor- relations/reports-and-presentations/ 1 Scope 1 and scope 2 emissions Investor Presentation August 2024 54
Slide 55: Leifheit is frequently top company in home appliances and household goods
Annex Leifheit is frequently top company in home appliances and household goods categories We are pleased that our efforts towards sustainability are being noticed and rewarded by consumers. • We were awarded the “Germany’s Best Sustainability” seal once again in 2023 for the third year running. The
Slide 56: Financial calendar and contact
Annex Financial calendar and contact Financial calendar 2024 Contact 25 September 2024 Corporate Communications / Investor Relations Berenberg and Goldman Sachs Phone: +49 2604 977-218 German Corporate Conference, Munich E-Mail: ir@leifheit.com 12 November 2024 Quarterly statement for the period end
Slide 57: Aktiengesellschaft Postfach 11 65 D-56377 Nassau
Aktiengesellschaft Postfach 11 65 D-56377 Nassau