Leifheit AG · XETR:LEI
Leifheit — Q3 2023 Earnings Presentation
41 slides from Leifheit's earnings presentation, Nov 15, 2023
Slide 1: Investor Presentation Q3 2023
Investor Presentation Q3 2023
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: Changes in the Managing Board
Changes in the Managing Board Alexander Reindler Stefan De Loecker Igor Iraeta Munduate Marco Keul CEO starting 12/2023 CEO a.i., returning to COO CFO Supervisory Board 12/2023 Previous experience Previous experience Previous experience Previous experience • Brings more than 25 years of • More than
Slide 4: Executive Summary 9M 2023
Executive Summary 9M 2023 Our vision: Leifheit makes everyday life at home easier and more convenient We continued to pursue successful initiatives to increase consumer demand, improve gross margins, increase distribution and reduce costs in Q3 2023 Group turnover of 200.0 m€ in 9M 2023, up by 3.5%
Slide 5: Leifheit is financially solid and pays reliable dividends to shareholders
Leifheit is financially solid and pays reliable dividends to shareholders Commitment to shareholders Strong products and brands 1.50 1,50 Dividend 1,00 1.00 for 2022: 0.70 € 0,50 0.50 0,00 0.00 Bonus/special dividend Dividend Strong financial structure Solid long-term stock performance in m€ in % As
Slide 6: Group turnover up 3.5% in the first nine months
Group turnover up 3.5 % in the first nine months despite continuing difficult market environment Group turnover development by quarters in m€ 300,0 +6.2% +16.0% • Our successful initiatives deliver -12.8% solid results despite the challenging 250,0 63 economic environment and an 70 unchanged subdued
Slide 7: Consumer sentiment recovery is still a long way off
Consumer sentiment recovery is still a long way off GfK consumer climate index October 2023, Germany • Consumer demand in Europe is expected to remain depressed, especially for non-food household products Source: GfK Investor Presentation November 2023 7
Slide 8: EBIT increased due to improved gross margin
EBIT increased due to improved gross margin, despite one-off effects in Q3 caused by changes in Management Board Group earnings development 9M 2022 9M 2023 ∆ 9M 2019 – 9M 2023 in m€ Group turnover m€ 193.2 200.0 3.5% Gross margin % 38.4 41.4 3.0 pps Foreign currency result m€ 3.8 -0.4 >-100% 18 16.6
Slide 9: Declines in procurement costs in 2023 vs. peak in 2022
Declines in procurement costs in 2023 vs. peak in 2022, but raw material and energy prices remain at high levels • Average price increase of main raw materials approx. +34% vs. 2020* • Most raw material costs (PP Plastics, Aluminium) already with upward trend • Price level of 2019/20 will not be rea
Slide 10: Since 1 year steadily increasing gross margins
Since 1 year steadily increasing gross margins + 4.7 pps Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Gross Margin % 37.9 39.7 40.5 41.3 42.6 • Improvement in gross margin because of - higher sales prices - positive product mix effects due to the focus on effective TV advertising campaigns for profitable
Slide 11: Free cash flow increased by 11 m€
Free cash flow increased by 11 m€ from 2.0 m€ in 9M 2022 to 13 m€ in 9M 2023 in m€ 9M 2022 9M 2023 ∆ Cash flow from operating activities 6.1 17.1 11.0 Cash flow from investment activities -4.0 -4.1 -0.1 Cash flow from financing activities -10.5 -7.0 3.5 Free cash flow1 2.0 13.0 11.0 in m€ 30/09/2022
Slide 12: Free cash flow increased by 11 m€ (group liquidity)
Free cash flow increased by 11 m€ from 2.0 m€ in 9M 2022 to 13 m€ in 9M 2023 Group liquidity 31/12/2022 vs. 30/09/2023 in m€ 13.1 2.2 • Improvement in working -3.0 capital, especially the 6.0 -0.4 42.2 -4.2 36.3 2.6 reduction in inventories -6.7 -3.7 • Free cash flow affected in Q3 by one-off effect
Slide 13: Our purpose? Happy consumers!
Our purpose? Happy consumers! Better Value for Money In Q3 2023 we continued to pursue successful initiatives to 1 3 Create consumer Improve gross demand margins 2 4 Increase national Reduce all cost and international except consumer distribution advertising Investor Presentation November 2023 13
Slide 14: Our most long-lasting products and Electricity Savers campaigns
1 „Our most long-lasting products“ and “Electricity Savers” campaigns aim for sustainability • High quality along with its long life cycle products belong to the DNA of the Leifheit brand • Strongly convinced from our product quality we often give longer warranty period than the competition or as re
Slide 15: Made in Germany
1 Successful campaign with focus on product quality “Made in Germany” • The “Made in Germany” campaign including TV commercial led to increased consumer interest not only for the Profi cleaning system but for the entire Leifheit brand Investor Presentation November 2023 15
Slide 16: Generate 15% more solar energy with Leifheit window & frame cleaner
1 Generate 15% more solar energy on domestic solar panels with Leifheit`s window & frame cleaner • Window & Frame Cleaner with additional consumer benefits • Gently removes dirt from solar panels from adhering dirt on the balcony • Balcony power plants can save up to 130 kg of CO2, these should be c
Slide 17: Successful expansion of our product portfolio to new target groups
1 Successful expansion of our product portfolio to new target groups • New premium standing dryer Pegasus 150 Solid Slim Black in the colour combination black and anthracite serves a current colour trend and is aimed at a target group that has high demands on design and aesthetics when furnishing th
Slide 18: Distribution of European business volume to three logistics locations
4 Distribution of the European business volume to three logistics locations with short distances to our customers • New central European logistics hub (Leifheit Distribution Western Europe, LDW) for our Leifheit and Soehnle products at the logistics site in Chablis, France, which was previously oper
Slide 19: Leifheit Group raises 2023 forecast
Leifheit Group raises 2023 forecast – still challenging market environment ahead Forecast 2023 Group turnover Slightly above the previous year (previously: slightly below previous year) Slightly above the previous year Turnover Household (previously: noticeable below the previous year) Turnover Well
Slide 20: Your Questions please.
Your Questions please.
Slide 21: Annex
Annex
Slide 22: Household and Wellbeing segments above previous year's level
Annex Household and Wellbeing segments above previous year’s level, Private Label largely stable Group turnover by segment Group turnover by segment 9M 2019 – 9M 2023 in m€ 9M 2023 11.0% Household 6.1% Wellbeing 226 250 Private Label 193 200 202 24 200 177 22 20 23 22 82.9% 22 19 12 12 150 14 • Turn
Slide 23: Leifheit back on growth track
Annex Leifheit back on growth track despite continuing inflation and difficult market environment Group turnover by region Group turnover by region 9M 2019 – 9M 2023 in m€ 9M 2023 250 225 2.0% 12.4% 200 43.3% Germany 6 193 202 27 Central Europe 200 177 4 9 6 25 6 25 24 Eastern Europe 22 150 90 42.3%
Slide 24: Flexible reaction to changed capacity utilization; employee development
Annex We were able to react flexibly to the changed capacity utilization in production and logistics by reducing remaining vacation time and credits on working time accounts and by cutback in the numbers of temporary workers Employee development* Employees by region* 30 June 2023 30 June 2023 Privat
Slide 25: Leifheit makes top quality household products
Annex Leifheit makes top quality household products Profi Floor Wiper CLEAN TWIST Disc Mop Ergo Pegasus 150 Linomatic 500 Deluxe 4.7 stars 4.6 stars 4.6 stars 4.5 stars Investor Presentation November 2023 25
Slide 26: Leifheit Group structure
Annex Leifheit Group structure Household Wellbeing Private Label Kitchen Laundry Care Cleaning Kitchen goods Personal scales Kitchen scales Standing Dryers goods Wellbeing 6% Rest of World Kitchen Goods 2.0% 12% Germany Laundry Care Eastern 46% 42.3% Europe Turnover by 12.4% Turnover product by regi
Slide 27: Our European production footprint
Annex Our European production footprint ensured reliable supply to customers despite COVID-19-related supply chain challenges Paris/F (Leifheit/Birambeau) Nassau/D (Leifheit/Soehnle) • About 65 employees • About 280 employees • Marketing, sales • Marketing, sales, development, quality and administra
Slide 28: Distribution in all relevant distribution channels
Annex Distribution in all relevant distribution channels Blue Chip client base Distribution channels Turnover 2022 in % (previous year’s figures) Electro Others 4 (3) 5 (6) Cash & Carry 2 (3) Hypermarket Importers/ 26 (26) Exporters Top 10 7 (7) Customers account for 50% Turnover 2022: of Leifheit’s
Slide 29: Long-term financial overview
Annex Long-term financial overview 2018 2019 2020 2021 2022 Group turnover m€ 234.2 234.0 271.6 288.3 251.5 Profitability ▪ Gross margin % 43.6 43.1 45.0 42.3 38.7 ▪ Cash flow 14.0 from operating activities m€ 10.2 15.9 4.0 16.4 ▪ Free cash flow m€ 3.7 10.1 -5.5 9.6 8.8 ▪ EBIT m€ 13.1 9.9 18.8 20.1
Slide 30: Long-term financial overview (per share)
Annex Long-term financial overview 2018 2019 2020 2021 2022 Per share Net result for the period, EPS2 € 0.88 0.61 1.32 1.49 0.13 Free cash flow € 0.39 1.06 -0.57 1.00 0.92 Dividend € 1.05 0.55 1.05 1.05 0.702 Special dividend € -- -- -- -- Investments m€ 6.6 6.0 9.6 7.3 5.4 Depreciation m€ 6.9 8.2 8
Slide 31: Committed to shareholder returns
Annex Committed to shareholder returns Long-term dividend development Dividend yield 1 Dividend per share / in € 2022: 5.2% 2018: 5.9% 2021: 2.9% 2017: 3.8% 2020: 2.4% 2016: 5.1% 2019: 2.3% 2015: 5.6% 1,50 Dividend payment for 2022: € 0.70 1,00 0,50 0,00 1984 1985 1986 1987 1988 1989 1990 1991 1992
Slide 32: 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 33: Soehnle awards (selection)
Annex Soehnle awards (selection) Kitchen Scales Personal Scales Page Profi + Page Profi 300 Style Sense Personal Scales Page Aqua Proof Style Sense Bamboo Magic Kitchen Scale Air Purifier Body analysis scales Blood pressure monitors AirFresh Clean 400 Shape Sense Connect 100 + 200 Systo Monitor 200
Slide 34: Leifheit – more than 60 years of passion for housework
Annex Leifheit – more than 60 years of passion for housework 2010 1984 • Sale of the business unit ‘bathroom’ • IPO of Leifheit AG including the brands Spirella, Kleine Wolke and Meusch 1988 2008 • License agreement for • Takeover of 60% of Dr Oetker Bakeware Herby/F • Acquisition of Spirella and Kl
Slide 35: 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 36: Significant free float and international investors
Annex Significant free float and international investors Shareholder structure November 2023 • MKV Verwaltungs GmbH, Grünwald (GER), 10.03% 10.03% • Ruthild Loh, Haiger (GER), 8.26% 8.26% • Leifheit AG Nassau (GER), treasury shares, 4.85% 4.85% 0.03% 44.35% • Employee shares subject to a lock-up per
Slide 37: ESG: New strategic sustainability goals
Annex ESG: New 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
Slide 38: Our ESG Principles
Annex Our ESG Principles Read more at our sustainability report 2022 www.leifheit-group.com/en/investor- relations/reports-and-presentations/ Investor Presentation November 2023 38
Slide 39: Leifheit is frequently top company in home appliances and household goods
Annex Leifheit is frequently top company in home appliances and household goods categories • Leifheit was awarded the “Germany’s Best Sustainability” seal by Focus and Focus-Money in 2022 for the second year running. The study analyses social listening data for some 19,000 companies and brands. It e
Slide 40: Financial calendar and contact
Annex Financial calendar and contact Financial calendar 2023 / 2024 Contact 27 – 29 November 2023 Corporate Communications / Investor Relations German Equity Forum, Frankfurt/Main Phone: +49 2604 977-218 27 March 2024 E-Mail: [email protected] Annual reports 2023, sustainability report including non-f
Slide 41: Aktiengesellschaft Postfach 11 65 D-56377 Nassau
Aktiengesellschaft Postfach 11 65 D-56377 Nassau