Leifheit AG · XETR:LEI
Leifheit — 9M 2020 Earnings Presentation
40 slides from Leifheit's earnings presentation, November 2020
Slide 1: Investor Presentation 9M 2020
Investor Presentation 9M 2020 November 2020
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: Leifheit makes top quality household products, designed in Germany
Leifheit makes top quality household products, designed in Germany Profi Floor Wiper Clean Twist Pegasus 150 Linomatic 500 Deluxe 4.7 stars 4.6 stars 4.6 stars 4.5 stars Investor Presentation 9M 2020 November 2020 3
Slide 4: Leifheit is financially solid and pays good dividends to shareholders
Leifheit is financially solid and pays good dividends to shareholders Commitment to shareholders Strong products and brands in € 1.50 1,50 Dividend payments 1984 - 2019 1,00 1.00 0,50 0.50 0,00 0.00 Bonus/special dividend Dividend Strong financial structure Strong long-term stock performance in € m
Slide 5: 2018 and 2019 results were disappointing… can we change that?
However, our 2018 and 2019 results were disappointing… can we change that? Gross profit EBIT in € m in € m 109.9 102.1 101.0 18.8 13.1 9.9 -2% -7% -1% 20 -15% -31% -24% 12,00% 120 46.4% 18 43.6% 43.1% 45,0% 10,00% 16 100 8.0% 40,0% 14 8,00% 80 35,0% 12 30,0% 10 5.6% 6,00% 60 8 4.2% 25,0% 4,00% 40 6
Slide 6: Successful turn around in 2020: September YTD EBIT up +115%
Successful turn around in 2020: September YTD 2020 EBIT up +115% vs year before Gross profit EBIT in € m in € m 109.9 102.1 101.0 75.8 90.3 18.8 13.1 9.9 7.1 15.4 -2% -7% -1% -1% +11% -15% -31% -24% -18.5% +115.4% 20 12,00% 46.4% 43.6% 43.1% 44.7% 18 120 42.8% 45,0% 10,00% 16 100 40,0% 8.0% 14 7.6%
Slide 7: New strategy transforms Leifheit into a growing business, up 28% in Q3
New strategy transforms Leifheit into a growing business, up 28% in Q3 Group turnover development by quarters in % • After years of flat revenue now double- digit growth in 2020 40 +28.4% • Percentage growth vs year before 30 accelerates from quarter to quarter 20 in 2020 +6.8% +7.9% 10 +0.4% 0 -0.7
Slide 8: Double-digit growth in five consecutive months
Double-digit growth in five consecutive months Group turnover development by months in % • COVID-19 pandemic resulted in retail shutdowns in March 40 +38% and April +33% +23% • Advertising campaigns +24% 30 drive strong growth 20 +18% +13% 10 +6% -5% -17% 0 -10 -20 Jan Feb Mar Apr May Jun Jul Aug Se
Slide 9: EBIT margin up by 360 basis points from 4.0% to 7.6%
EBIT margin up by 360 basis points from 4.0% in 9M 2019 to 7.6% in 9M 2020 9M 2019 9M 2020 ∆ Group turnover €m 177.2 201.9 13.9 % Gross margin % 42.8 44.7 1.9 pps Foreign currency result €m 0.3 -0.6 > -100 % EBIT €m 7.1 15.4 > 100 % EBIT margin % 4.0 7.6 3.6 pps Earnings before taxes (EBT) €m 6.1 14
Slide 10: Negative cash flow mainly due to turnover-related increase in receivables
Negative cash flow mainly due to turnover- related increase in receivables in € m 9M 2019 9M 2020 ∆ Cash flow from operating activities 11.8 4.6 -7.2 Cash flow from investment activities -4.1 -4.9 -0.8 Cash flow from financing activities -10.5 -0.5 10.0 Change in cash and cash equivalents -2.8 -0.9
Slide 11: Negative cash flow in September 2020 YTD behind turnover growth
Negative cash flow in September 2020 YTD behind turnover growth (trade receivables) and increased inventories (prepare future growth and secure supplies during pandemic) Group liquidity 31.12.2019 vs 30.09.2020 in € m • Increase in trade receivables as a result of turnover growth (9M 2019: decrease
Slide 12: Our purpose? Happy consumers!
Our purpose? Happy consumers! Better Value for Money Investor Presentation 9M 2020 November 2020 12
Slide 13: We call our strategy “Scaling up success”
We call our strategy “Scaling up success” Focus KPIs Growth Profitability Level of Completion 1 • Invest in pre-tested and scalable high ROI consumer advertising 2019 2020 2020+ Create consumer on profitable best sellers demand • Launch new products only if margin Concept Realisation Impact Revenue
Slide 14: Create consumer demand and make brand stronger
1 Create consumer demand and make brand stronger Marketing spend 2019 in % of turnover EBIT margin 25 20 Unilever1 15 Beiersdorf1 Adidas1 10 P&G1 5 Leifheit 0 Marketing spend 0 5 10 15 20 25 30 35 1 Source: Annual reports 2019 Investor Presentation 9M 2020 November 2020 14
Slide 15: We tested massive advertising spend in several countries with strong results
1 We tested massive advertising spend in several countries with strong results Turnover development selected TV markets Group turnover 9M 2020 in € m +44% +27% +52% +23% +46% Netherlands Belgium Switzerland Poland Romania Investor Presentation 9M 2020 November 2020 15
Slide 16: Strong results in TV advertising test countries, taken to Germany in Q3
1 Encouraged by strong results in TV advertising test countries we took the appoach to our #1 market Germany in Q3 Turnover development Germany Group turnover % change vs year before in Q3 +33% Investor Presentation 9M 2020 November 2020 16
Slide 17: Advertising approach scaled up to brand Soehnle in Q3
1 Encouraged by strong advertising results on brand Leifheit, we scaled up this approach to brand Soehnle in Q3 • Campaign focuses on Soehnle Page Profi 300 digital kitchen scales, recently awarded a “very good” test result. • Soehnle Page Profi is the most-popular range of kitchen scales in Germany
Slide 18: We are successfully expanding our distribution network in 2020
2 We are successfully expanding our distribution network in 2020 Permanent listings in 1,200 additional supermarkets in the DACH region. Investor Presentation 9M 2020 November 2020 18
Slide 19: While spending more on consumer advertising, we drive down all other cost
4 While spending more on consumer advertising, we drive down all other cost % of Group FY 2018 FY 2019 9M 2019 9M 2020 Change turnover ✓ Consumer 0.7% 1.7% 1.4% 4.7% +3.3 pp marketing Other marketing 5.4% 4.6% 4.7% 3.8% -0.9 pp ✓ R&D 2.3% 2.4% 2.4% 2.0% -0.4 pp ✓ Logistics 1 11.0% 11.5% 11.2% 9.9% -
Slide 20: Full year earnings forecast significantly raised
Forecast Financial Year 2020 Full year earnings forecast significantly raised: 70 to 90 % EBIT growth vs FY 2019 Actual Forecast 2020 Forecast 2020 Forecast 2020 2019 before COVID-19 Jul 2020 Oct 2020 Group turnover 234.0 €m approx. +8% +7 to 9% +11 to 13% Turnover Household 182.0 €m +8 to 9% +8.5 t
Slide 21: Scaling up success
SCALING AG | ( | »\ |
Slide 22: Your questions please.
Your questions please. November 2020
Slide 23: Annex
Annex
Slide 24: Leifheit Group
Annex Leifheit Group Household Wellbeing Private Label Kitchen Standing Laundry Care Cleaning Kitchen goods Personal scales Kitchen scales goods Dryers Wellbeing 9% Rest of World Kitchen Laundry 5% Germany Goods Care 40% 16% 39% Eastern Turnover by Turnover Europe product by region category 12% 9M 2
Slide 25: Annex
Annex Investor Presentation 9M 2020 November 2020 25
Slide 26: Hypers & discounters stayed open during Covid-19 retail shut-downs
Annex Fortunately hypers & discounters stayed open during Covid-19 retail shut-downs Blue Chip client base Distribution channels Turnover in % (previous year’s figures) Electro Others 3 (3) 5 (5) Cash & Carry 3 (3) Hypermarkets Discounter 29 (30) 8 (8) Top 10 Customers Turnover 2019: account for 50%
Slide 27: Operating in more than 80 countries with 15 own branches
Annex Operating in more than 80 countries with 15 own branches Paris/F (Leifheit/Birambeau) Nassau/D (Leifheit/Soehnle) • About 80 employees • About 320 employees • Marketing, sales • Marketing, sales, development, quality and administration assurance, central administration • Manufacturing of rotar
Slide 28: Strong growth in Household and Wellbeing segments following advertising
Annex Strong growth in Household and Wellbeing segments following large-scale advertising Group turnover by segment Group turnover by segment 9M 2019 vs 9M 2020 in € m 9M 2020 10.9% 201.9 79.9% Household 220 Private Label 177.2 9.2% Wellbeing 200 22.1 Private Label 180 Wellbeing 22.3 18.5 160 14.0 H
Slide 29: Turnaround in Germany through successful TV advertising campaigns
Annex Turnaround in Germany through successful TV advertising campaigns Group turnover by region Group turnover by region 9M 2019 vs 9M 2020 in € m 9M 2020 100 4.6% 86.4 12.3% Germany 90 9M 2019 40.4% 81.5 80 75.3 9M 2020 Central Europe 73.7 70 Eastern Europe 60 Rest of the world 42.7% 50 • Turnarou
Slide 30: Long-term financial overview
Annex Long-term financial overview 2015 2016 2017 2018 2019 Group turnover €m 231.8 237.1 236.8 234.2 234.0 Profitability ▪ Gross margin % 46.7 47.5 46.4 43.6 43.1 ▪ Cash flow from operating activities €m 20.8 21.8 7.2 10.2 15.9 ▪ Free cash flow €m 14.1 14.3 1.5 3.7 10.1 ▪ EBIT €m 21.7 22.1 18.8 13.
Slide 31: Long-term financial overview
Annex Long-term financial overview 2015 2016 2017 2018 2019 Per share1 Net result for the period2 € 1.51 1.53 1.35 0.88 0.61 Free cash flow € 1.48 1.51 0.16 0.39 1.06 Dividend € 1.00 1.05 1.05 1.05 0.55 Special dividend € 0.38 0.40 -- -- -- Investments €m 7.1 7.8 7.8 6.6 6.0 Depreciation €m 5.8 6.2
Slide 32: Experienced Management
Annex Experienced Management Henner Rinsche Igor Iraeta Munduate Marco Keul CEO + CFO COO Vice President Finance Previous experience Previous experience Previous experience • President Europe at • Many years of experience • Responsible for Finance, SodaStream as CTO at Igus GmbH and Controlling, IT/
Slide 33: Committed to shareholder returns
Annex Committed to shareholder returns Long-term dividend development Dividend yield 1 Dividend per share / in € 2019: 2.3% 2015: 5.6% 2018: 5.9% 2014: 3.9% 2017: 3.8% 2013: 5.3% 2016: 5.1% 2012: 5.2% 1,50 Dividend for 2019: 0.55 € 1,00 0,50 0,00 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 199
Slide 34: Leifheit awards (selection)
Annex Leifheit awards (selection) Rotary dryer Rotary dryers Laundry dryers LinoProtect 400 Linomatic Pegasus Floor wiper CLEAN TWIST Window vaccum Profi micro duo System cleaners Isolating jug Isolating mug Cordless vaccum Steam Mop Columbus Flip 600 ml Regulus Aqua PowerVac 2in1 CleanTenso Investo
Slide 35: Soehnle awards (selection)
Annex Soehnle awards (selection) Kitchen Scales Personal Scales Luftbefeuchter Page Profi + Page Profi 300 Style Sense Compact 300 + Safe 300 Airfresh Hygro 500 Body analysis scales Blood pressure monitors Luftreiniger Shape Sense Connect 100 + 200 Systo Monitor 200 + 300 AirFresh Clean 300 and Clea
Slide 36: 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 • IPO of Leifheit AG ‘bathroom’ 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 37: 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 Kärcher Rörets Blome Kitchen goods Wellbeing Tescoma WMF Laica Gefu Bosch Rösle Tanita Zyliss Lurch ADE Homedics Oxo Fackelmann Sanitas Beurer E
Slide 38: Significant free float and international investors
Annex Significant free float and international investors Shareholder structure November 2020 • Joachim Loh, Haiger (GER), 10.31% 10.31% • MKV Verwaltungs GmbH, Grünwald (GER), 10.03% 10.03% • Leifheit AG Nassau (GER), treasury shares Aktien, 4.91% 4.91% 50.72% • Alantra EQMC Asset Management, SGIIC,
Slide 39: Financial calendar and contact
Annex Financial calendar and contact Dates 2020 / 2021 Contact 16 - 18 Nov 2020 Corporate Communications / Investor Relations Presentation at German Equity Forum (online) Phone: +49 2604 977-218 24 March 2021 Annual financial report 2020 Email: [email protected] 11 May 2021 Quarterly statement for the
Slide 40: Aktiengesellschaft Postfach 11 65 D-56377 Nassau
Aktiengesellschaft Postfach 11 65 D-56377 Nassau