Leifheit AG · XETR:LEI
Leifheit — H1 2022 Earnings Presentation
47 slides from Leifheit's earnings presentation, Aug 9, 2022
Slide 1: Investor Presentation H1 2022
Investor Presentation H1 2022
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 H1 2022
Executive Summary H1 2022 Leifheit AG has a strong vision: to become the Procter & Gamble of consumer durables “Scaling Up Success” strategy with focus on consumer marketing and superior products Vision and strategy deliver great results: 2019-2021 CAGR turnover +11% and EBIT +43% However, 2022 is s
Slide 4: Leifheit makes top quality household products, designed in Germany
Leifheit makes top quality household products, designed in Germany 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 August 2022 4
Slide 5: 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 1.50 1,50 Dividend payments 1984 - 2021 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€ in % A
Slide 6: The strategy works: 2019 to 2021 CAGRs of +11% turnover and +43% EBIT
The strategy works: 2019 to 2021 shows CAGRs of +11% on turnover and +43% on EBIT Group turnover Group EBIT in m€ in m€ ~11 % -23 % -0.4 % CAGR 22.1 CAGR 300 CAGR 288 272 20.1 20 18.8 18.8 250 237 237 234 234 15 ~43% 200 13.1 CAGR 150 9.9 10 100 5 50 0 0 2016 2017 2018 2019 2020 2021 2016 2017 2018
Slide 7: Scaling-Up Success, heavy TV ad spend, tested in the Netherlands
Scaling-Up Success, i.e. heavy TV ad spend, was tested before Corona in the Netherlands with remarkable results Turnover development Netherlands in % +43% 45 35 +21% 25 15 5 -5 -15 -11% 9M 2019 Q4 2019 Q1 2020 Investor Presentation August 2022 7
Slide 8: H1 + Q2 2022 saw the 2nd highest turnover in a first half-year
H1 + Q2 2022 saw the 2nd highest turnover in a first half-year and in a second quarter in the last 15 years (on comparable basis) Group turnover development by quarters in m€ 300,0 +6% +16% • Group turnover in H1 2022 +4.5% 63 vs. H1 2020 and +12% vs. H1 in pre- 250,0 coronavirus year 2019. 70 • Con
Slide 9: Macroeconomic environment is impacting consumer demand
Macroeconomic environment is impacting consumer demand GfK consumer climate index HDE consumption barometer August 2022, Germany August 2022, Germany Source: GfK Source: HDE Handelsverband Deutschland • Consumer climate reaches historic low • Trading-down effect • High level of inventories in the re
Slide 10: Procurement prices soared
Procurement prices soared – no end of price rally in sight! Electricity spot market prices Gas price development in € in € Source: MBI Martin Brückner Source: Finanzen.net Investor Presentation August 2022 10
Slide 11: Positive EBIT despite challenging market prices in raw materials, energy and freight
Positive EBIT despite challenging market prices in raw materials, energy and freight Group earnings development 6M 2021 6M 2022 ∆ H1 2018 – H1 2022 in m€ Group turnover m€ 155.8 136.3 -12.5% Gross margin % 43.7 38.6 -5.1 pps 13.6 10 9.5 Foreign currency result m€ 0.5 1.4 >100.0% 8.8 9 EBIT m€ 13.6 2
Slide 12: Measures to safeguard ability to deliver led to increase in working capital
Measures to safeguard the ability to deliver in the current crisis situation led to an increase in working capital in m€ 6M 2021 6M 2022 ∆ Cash flow from operating activities 13.2 -7.9 -21.1 Cash flow from investment activities -2.7 -2.6 0.1 Cash flow from financing activities -10.3 -10.3 - Free cas
Slide 13: Group liquidity development
Measures to safeguard the ability to deliver in the current crisis situation led to an increase in working capital Group liquidity 31/12/2021 vs. 30/06/2022 in m€ • Working capital up by m€ 14.0 • Seasonal increase in trade +3.7 receivables of m€ 1.4 +1.3 38.1 • Increase of m€ 3.2 in -1.4 inventorie
Slide 14: Our purpose? Happy consumers!
Our purpose? Happy consumers! Better Value for Money Investor Presentation August 2022 14
Slide 15: We call our strategy “Scaling up success”
We call our strategy “Scaling up success” Focus KPIs 2019 vs. 2021 Growth Profitability 1 • Invest in pre-tested and scalable high ROI consumer advertising Create consumer ✓ on profitable best sellers Revenue growth demand • Launch new products only if margin > average and if supported by pre-tested
Slide 16: Create consumer demand and make brands stronger
1 Create consumer demand and make brands stronger Peer group comparison Marketing spend and EBIT in % of turnover EBIT margin 25,0 P&G1 20,0 15,0 Unilever1 10,0 Beiersdorf 1 Leifheit 2021 5,0 Leifheit 2019 0,0 0 5 10 15 20 25 30 35 40 Marketing spend 1 Source: Annual reports 2021 Investor Presentati
Slide 17: Massive TV advertising investments turned Leifheit & Soehnle into winning brands
1 Our massive investments in TV advertising have turned Leifheit & Soehnle into winning brands Leifheit & Soehnle Leifheit & Soehnle Gross spending for advertising Turnover development Group EBIT in m€ in m€ in m€ 40 37 260 256 20.1 0 18.8 35 31 TV advertising 240 30 240 works! 0 25 20 220 9.9 0 15
Slide 18: “Electricity Savers” campaign encourages power-free laundry drying
1 “Electricity Savers” campaign encourages consumers to switch to power-free laundry drying • Current market situation provides the chance to further promote our energy-saving, durable products. • In face of rising energy prices, many households are currently looking for ways to reduce their energy
Slide 19: New addition to the kitchen category: Harmonic insulating jug
1 New addition to the kitchen category: Harmonic insulating jug • Harmonic combines high quality with modern design and keeps drinks hot for up to 24 hours at 65°C. • A comparative test of various insulating jugs by ipi Institut für Produkt- und Marktforschung recently singled it out as “by far the
Slide 20: Further enhancements of efficient cleaning appliances range
1 Further enhancements of successful efficient cleaning appliances range accompanied by intensive marketing efforts • New Regulus Aqua PowerVac Pro, which vacuums, mops and dries all in one, can reach into every corner thanks to its new corner glider with Micro-Duo wipe cover. • New Clean Tenso Powe
Slide 21: We are successfully expanding our distribution network
2 We are successfully expanding our distribution network Investor Presentation August 2022 21
Slide 22: German heritage products ranked #1 for positive image
3 International expansion: German heritage products are ranked # 1 for consumers in terms of positive image Source: Statista Made-In-Country-Index 2017 • Germany leads the Made-in-Country-Index • The global ranking according to the Made-In-Country-Index shows how positively products “Made in ...” fr
Slide 23: We create a fun, fast, friendly and fearless winning culture
4 We create a fun, fast, friendly and fearless winning culture Investor Presentation August 2022 23
Slide 24: 26% increase in turnover per employee
4 26% increase in turnover per employee FY 2021 vs. FY 2019 Group turnover per employee 2018 - 2021 in k€ 267 247 212 209 2018 2019 2020 2021 Investor Presentation August 2022 24
Slide 25: Key Strategic Initiatives: We face the challenging environment
Key Strategic Initiatives 4 We face the challenging environment Continuous work on our program to reduce complexity, further increase efficiency and reduce costs: – Streamlining portfolio and substantial SKU reduction – Projects to reduce purchasing and logistic costs by optimizing synergies in the
Slide 26: Forecast 2022: forecast adjusted following half-year reassessment
Forecast 2022: Turnover and earnings forecast adjusted following reassessment at the half-year mark Forecast 2022 Group turnover Decrease in the single-digit percentage range Turnover Household Decrease in the upper single-digit percentage range Turnover Wellbeing Decrease in the clear double-digit
Slide 27: Investor Presentation H1 2022
Investor Presentation H1 2022 August 2022 27
Slide 28: Annex
Annex
Slide 29: Household segment below prior-year turnover, but at a high level
Annex Household segment below prior-year turnover, but at a high level, due to continued large-scale advertising Group turnover by segment Group turnover by segment 6M 2018 – 6M 2022 in m€ 6M 2022 10.7% 83.2% Household 6.1% Wellbeing 156 180 Private Label 160 130 136 122 121 16 140 14 15 120 13 15 1
Slide 30: Successful TV campaigns paying off, but war and COVID-19 weigh
Annex Successful TV advertising campaigns are paying off, but Russia- Ukraine war and effects of COVID-19 weigh on private consumption Group turnover by region Group turnover by region 6M 2018 – 6M 2022 in m€ 6M 2022 156 180 3.0% 12.1% 136 Germany 160 130 44.1% 4 122 121 18 Central Europe 140 4 5 12
Slide 31: 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 9% Rest of World 3% Kitchen Goods Germany Laundry Care 14% Eastern 44% 38% Turnover by Europe Turnover product 13% by region cat
Slide 32: Our European production footprint ensured reliable supply
Annex Our European production footprint ensured reliable supply to customers in spite of COVID-19 challenges in the supply chain Paris/F (Leifheit/Birambeau) Nassau/D (Leifheit/Soehnle) • About 70 employees • About 280 employees • Marketing, sales • Marketing, sales, development, quality and adminis
Slide 33: Distribution in all relevant distribution channels
Annex Distribution in all relevant distribution channels Blue Chip client base Distribution channels Turnover 2021 in % (previous year’s figures) Electro Others 3 (3) 5 (6) Cash & Carry 3 (3) Hypermarket Importers/ 26 (27) Exporters Top 10 7 (8) Customers account for 50% Turnover 2021: of Leifheit’s
Slide 34: 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 30 June 2022 Private Label
Slide 35: Long-term financial overview
Annex Long-term financial overview 2017 2018 2019 2020 2021 Group turnover m€ 236.8 234.2 234.0 271.6 288.3 Profitability ▪ Gross margin % 46.4 43.6 43.1 45.0 42.3 ▪ Cash flow from operating activities m€ 7.2 10.2 15.9 4.0 16.4 ▪ Free cash flow m€ 1.5 3.7 10.1 -5.5 9.6 ▪ EBIT m€ 18.8 13.1 9.9 18.8 2
Slide 36: Long-term financial overview
Annex Long-term financial overview 2017 2018 2019 2020 2021 Per share Net result for the period, EPS2 € 1.35 0.88 0.61 1.32 1.49 Free cash flow € 0.16 0.39 1.06 -0.57 1.00 Dividend € 1.05 1.05 0.55 1.05 1.052 Special dividend € -- -- -- -- -- Investments m€ 7.8 6.6 6.0 9.6 7.3 Depreciation m€ 6.4 6.
Slide 37: Experienced Management
Annex Experienced Management Henner Rinsche Igor Iraeta Munduate Marco Keul CEO COO CFO Previous experience Previous experience Previous experience • President Europe at • Many years of experience as • Resp. for Controlling, IT/Business SodaStream CTO at Igus GmbH and Stoba processes and internal sa
Slide 38: Dividend for 2021: € 1.05
Annex Committed to shareholder returns Long-term dividend development Dividend yield 1 Dividend per share / in € 2021: 2.9% 2017: 3.8% 2020: 2.4% 2016: 5.1% 2019: 2.3% 2015: 5.6% 2018: 5.9% 2014: 3.9% 1,50 Dividend for 2021: € 1.05 1,00 0,50 0,00 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 199
Slide 39: 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 40: 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 41: 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 42: 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 43: Significant free float and international investors
Annex Significant free float and international investors Shareholder structure August 2022 • 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% 42,82% 4,85% • Employee shares subject to a lock-up period 0,06
Slide 44: Financial calendar and contact
Annex Financial calendar and contact Dates 2022 Contact 08 Nov 2022 Corporate Communications / Investor Relations Quarterly statement for the period Phone: +49 2604 977-218 ending 30 September 2022 Email: [email protected] 20 Sep 2022 Berenberg and Goldman Sachs Eleventh German Corporate Conference, M
Slide 45: Leifheit is frequently top company in home appliances and household goods
Annex Leifheit is frequently top company in home appliances and household goods categories Most Valuable Germany‘s Highest Level Germany‘s Best Company fairest companies of Trust 2021 Customer Hotline 2021 July 2021 Jan 2022 Oct 2021 July 2021 Deutschland Test / Focus Money IMWF Institut / FAZ-Insti
Slide 46: Our ESG Principles
Our ESG Principles Read more at our sustainability report 2021 www.leifheit-group.com/en/investor- relations/reports-and-presentations/ Investor Presentation August 2022 46
Slide 47: Aktiengesellschaft Postfach 11 65 D-56377 Nassau
Aktiengesellschaft Postfach 11 65 D-56377 Nassau