De'longhi S.p.a. · MIL:DLG
De'longhi — FY2022 Earnings Presentation
27 slides from De'longhi's earnings presentation, 2023
Slide 1: FY 2022 Results
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Slide 2: Disclaimer
FY 2022 RESULTS DiSCLAiMER This presentation might contain certain forward-looking statements that reflect the company’s current views with respect to future events and financial and operational performance of the company and its subsidiaries. Forward looking statements are based on De' Longhi’s cur
Slide 3: Definitions & Assumptions
FY 2022 RESULTS DEFiNiTiONS & ASSUMPTiONS In this presentation: • “Adjusted” stands for before non recurring items and notional cost of the stock option plans • "At constant exchange rates" means excluding the effects of exchange rates' variations and of hedging derivatives • “ForEx” or “FX” stand f
Slide 4: New Product Launches
FY 2022 RESULTS NEW PRODUCT LAUNCHES 4
Slide 5: "Imperfect Food" Campaign
"IMPERFECT FOOD” CAMPAIGN Far too much valuable food ends up in the bin 5
Slide 6: New Product Launches: Coffee Makers
FY 2022 RESULTS NEW PRODUCT LAUNCHES: COFFEE MAKERS Eletta Explore is characterised by the unique innovative feature LatteCrema Cool unlocking 7 new automatic drinks for the first time in the category. La Specialista Maestro has a technical innovation, called Cold extraction technology, which comes
Slide 7: New Product Launches: Cooking & Food Prep.
FY 2022 RESULTS NEW PRODUCT LAUNCHES: COOKiNG & FOOD PREP. MultiPro Go MultiPro XL weigh+ Luminosa Collection 7
Slide 8: New Product Launches: Comfort & Home Care
FY 2022 RESULTS NEW PRODUCT LAUNCHES: COMFORT & HOME CARE CareStyle 7 Pro Pinguino care4me CareStyle Compact Pro Capsule Fit 8
Slide 9: Results
FY 2022 RESULTS FY 2022 RESULTS 9
Slide 10: The 12 Months Highlights
FY 2022 RESULTS THE 12 MONTHS HiGHLiGHTS Revenues slightly lower compared to a revenues' growth % -2% record 2021 year, sustained by coffee and expansion in the extra-European markets Down from 16%, due mainly to cost adjusted Ebitda % margin 11.5% inflation, warehousing extra-costs and higher A&P i
Slide 11: Headwinds and Actions
FY 2022 RESULTS HEADWINDS AND ACTIONS EXTERNAL HEADWiNDS ACTiONS PUT iN PLACE COST iNFLATiON PRiCE iNCREASES WAREHOUSiNG iNVENTORY EXTRA COSTS REDUCTiON DEMAND HiGHER A&P SOFTENiNG 11
Slide 12: Price Increases
FY 2022 RESULTS PRiCE iNCREASES COST iNFLATiON PRiCE MiX PRiCE iNCREASES 100 87 80 76 60 45 40 31 A CAREFUL STRATEGY OF 20 SELECTiVE PRiCE iNCREASES 2 TO MiTiGATE THE IMPACT OF - COST INFLATION AND -20 PROTECT THE GROSS MARGIN, -25 -40 MARKiNG A DiSCONTiNUiTY VS. FY20 FY21 FY22 PREViOUS YEARS 2017 –
Slide 13: Inventory Reduction
FY 2022 RESULTS INVENTORY REDUCTiON EXTRA-COSTS INVENTORY REDUCTiON THE GROUP iMPLEMENTED EXTRAORDiNARY MEASURES TO REDUCE THE LEVEL OF iNVENTORY, AIMED TO ABATE THE ADDiTiONAL WAREHOUSiNG COSTS AND THE RELATED PRODUCTiON iNEFFiCiENCiES 13
Slide 14: Higher A&P
FY 2022 RESULTS HiGHER A&P SOFTENING DEMAND A&P / SALES FY21 HIGHER A&P 18,0% A&P / SALES FY22 16,0% 14,0% 12,0% iNCREASED EFFORTS 10,0% ON ADV. & PROMOTiONS, SPREADiNG THE COFFEE 8,0% GLOBAL CAMPAiGN 6,0% ACROSS ALL MARKETS Q1 Q2 Q3 Q4 14
Slide 15: Top Line
FY 2022 RESULTS TOP LiNE FY 2022 FY 2021 Q4- 2022 Q4 - 2021 Revenues 3,158.4 3,221.6 1,029.8 1,072.1 change -63.2 -42.3 change % -2.0% -3.9% (Eur million unless otherwise specified) FY 2022 revenues slightly down by 2%, including a positive currency effect of 3.9%; the expansion of extra-Europea
Slide 16: Revenues Growth by Quarter
FY 2022 RESULTS REVENUES GROWTH BY QUARTER REVENUES GROWTH (REPORTED) 8,4% REVENUES GROWTH (AT CONSTANT FX) 5,7% -3,9% -4,7% -5,8% -7,0% -10,7% -10,3% Q1-22 Q2-22 Q3-22 Q4-22 16
Slide 17: Revenues by Region
FY 2022 RESULTS REVENUES BY REGiON var. % at var. % at EUR million FY 2022 var. % constant FX Q4 2022 var. % constant FX South West Europe 1,127.6 -7.5% -8.3% 366.5 -7.4% -8.2% North East Europe 747.0 -12.8% -14.4% 263.6 -15.0% -15.9% EUROPE 1,874.6 -9.7% -10.8% 630.1 -10.7% -11.6% MEIA (MiddleEast/
Slide 18: Revenues by Market FY 2022
FY 2022 RESULTS REVENUES BY MARKET Russia, Ukraine & others NE-EU CIS 13.4% 5.7% UK Main Ups & Downs (at constant FX) 4.5% MEIA 6.2% others SW_EU UP Greater China, 8.3% double-digit Korea, UAE France FY 2022 UP Australia & New Zeland, 6.1% Americas Japan, 19.7% single-digit Iberia, Poland Germany It
Slide 19: Revenues by Product Line FY 2022
FY 2022 RESULTS REVENUES BY PRODUCT LiNE Main Ups & Downs (at constant FX) Manual coffee makers UP B2B coffee makers Portable heating double-digit Air treatment Deep fryers FY 2022 UP Fullauto coffee makers single-digit Kitchen machines Blenders, Down Food processors Portable air conditioners Home c
Slide 20: Categories Growth by Quarters (Reported)
FY 2022 RESULTS CATEGORiES GROWTH BY QUARTERS (REPORTED) COFFEE MAKERS GROWTH COOKiNG & FOODPREP GROWTH OTHER CATEGORiES GROWTH UP DOUBLE DiGiT UP SiNGLE DiGiT DOWN SiNGLE DiGiT DOWN DOUBLE DiGiT Q1-22 Q 2-22 Q3-22 Q 4-22 20
Slide 21: Margins
FY 2022 RESULTS MARGiNS (E ur million unles s otherwis e s pecified) F Y 2022 F Y 2021 change change % net ind. margin 1,493.3 1,600.2 -106.8 -6.7% % of revenues 47.3% 49.7% adjus ted E bitda 362.0 515.0 -153.0 -29.7% % of revenues 11.5% 16.0% E bitda 369.4 480.6 -111.2 -23.1% % of revenues 11.7% 14
Slide 22: Adjusted Ebitda Bridge FY22
FY 2022 RESULTS ADJUSTED EBiTDA BRiDGE FY22 among others: Slightly increased A&P Product costs inflation Extraordinary costs related to excess stock 22
Slide 23: Balance Sheet
FY 2022 RESULTS BALANCE SHEET change 12 EUR million 31.12.2022 31.12.2021 months operating NWC 288.8 199.7 89.1 Net Equity 1,663.4 1,570.6 92.8 Net Financial Position 298.8 425.1 -126.3 Net Bank Position 389.5 505.9 -116.4 operating NWC / Revenues 9.1% 6.2% 2.9% Net financial position as at 31.12.
Slide 24: 12 Months Net Cash Flow
FY 2022 RESULTS 12 MONTHS NET CASH FLOW -1.8 24
Slide 25: Key Takeaways
FY 2022 RESULTS KEY TAKEAWAYS The margins have been impacted by rising cost inflation and extraordinary costs deriving from handling the surplus stock and 1 from production inefficiencies. The uncommon level of stock has required the implementation of extraordinary measures to reduce and stabilize t
Slide 26: FY 2023 Guidance
FY 2022 RESULTS FY 2023 GUiDANCE In the words of the C.E.O., Fabio de' Longhi: “In general, I am very satisfied with how the Group was able to react in the face of the extraordinarily challenging and complex scenario that arose in 2022, considering how this scenario led to a deterioration in consume
Slide 27: Contacts
FY 2022 RESULTS Contacts: Investor Relations: Fabrizio Micheli, Samuele Chiodetto T: +39 0422 4131 e-mail: investor.relations@delonghigroup.com Media relations: T: +39 0422 4131 e-mail: media.relations@delonghigroup.com On the web: www.delonghigroup.com 27