Leifheit AG · XETR:LEI
Leifheit — Q1 2023 Earnings Presentation
44 slides from Leifheit's earnings presentation, May 11, 2023
Slide 1: Investor Presentation Q1 2023
Investor Presentation Q1 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: Q1 2023 consumer climate very unfavorable
Q1 2023 consumer climate very unfavorable GfK consumer climate index May 2023, Germany Source: GfK Investor Presentation May 2023 3
Slide 4: Executive Summary Q1 2023
Executive Summary Q1 2023 Leifheit AG has a strong vision: to become a Procter & Gamble of consumer durables “Scaling Up Success” strategy with focus on superior products, effective advertising and increased distribution Our strategy delivered great results before Ukraine war: 2019-2021 CAGR turnove
Slide 5: Leifheit makes top quality household products
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 May 2023 5
Slide 6: 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 proposal 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
Slide 7: Turnover in Q1 third-highest sales in a first quarter within the last 15 years
Turnover in Q1 third-highest sales in a first quarter within the last 15 years Group turnover development by quarters in m€ 300,0 +6% +16% ▪ Group turnover in Q1 2023 at -12.8% 70.3 m€ is only slightly below the 250,0 63 previous year (Q1 2022: 71.8 m€). 70 ▪ Previous year’s Q1 figure was 58 not yet
Slide 8: Positive EBIT despite lacking contribution margins from turnover decline
Positive EBIT despite lacking contribution margins from turnover decline and a lower foreign currency result Group earnings development Q1 2022 Q1 2023 ∆ Q1 2019 – Q1 2023 in m€ Group turnover m€ 71.8 70.3 -2.1% Gross margin % 40.9 40.5 -0.4 pps Foreign currency result m€ 1.0 0.4 -64.8% 10 9 8,3 EBI
Slide 9: Steadily increasing gross margins in the last three quarters
Steadily increasing gross margins in the last three quarters Q2 2022 Q3 2022 Q4 2022 Q1 2023 Gross Margin % 36.0 37.9 39.7 40.5 Investor Presentation May 2023 9
Slide 10: Free cash flow improved from -15.6 m€ in Q1 2022 to -3.4 m€ in Q1 2023
Free cash flow improved from -15.6 m€ in Q1 2022 to -3,4 m€ in Q1 2023 in m€ Q1 2022 Q1 2023 ∆ Cash flow from operating activities -13.7 -2.1 11.6 Cash flow from investment activities -1.9 -1.3 0.6 Cash flow from financing activities -0.2 -0.1 0.1 Free cash flow1 -15.6 -3.4 12.2 in m€ 31/03/2022 31/
Slide 11: Leifheit Group remains in a solid financial position
Leifheit Group remains in a solid financial position Group liquidity 31/12/2022 vs. 31/03/2023 in m€ 2.0 • Lower increase in working 1.3 capital in Q1 2023 compared 36.3 to the same period of the 6.5 32.8 previous year -0.1 2.1 -1.3 2.3 • Seasonal increase of trade receivables by 16.3 m€ -16.3 • Dec
Slide 12: Our purpose? Happy consumers!
Our purpose? Happy consumers! Better Value for Money 1 3 Create consumer Improve gross demand margins 2 4 Increase national Reduce all cost and international except consumer distribution advertising Investor Presentation May 2023 12
Slide 13: Scaling-Up Success, i.e. heavy TV ad spend, was tested in the Netherlands
Scaling-Up Success, i.e. heavy TV ad spend, was tested before COVID-19 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 May 2023 13
Slide 14: While we increased advertising spend, our revenue and EBIT grew
1 While we increased advertising spend, our revenue and EBIT grew, so we will return to that growth mode as soon as possible Leifheit & Soehnle Leifheit & Soehnle Gross spending for advertising Turnover development Group EBIT m€ m€ m€ 40 37 260 256 20.1 0 18.8 35 31 TV advertising 240 30 240 works!
Slide 15: Our most long-lasting products campaign aims for sustainability
1 „Our most long-lasting products“ campaign aims for sustainability High quality and along with it long life cycle products belong to the DNA of the Leifheit brand. A major part of our assortment is being produced in Europe in our own factories where we have full quality control. Strongly convinced
Slide 16: Electricity Savers campaign encourages consumers
1 “Electricity Savers” campaign encourages consumers to switch to power-free laundry drying • The current market situation offers the opportunity to further promote our energy-saving, durable products. • In view of rising energy prices, many households are currently looking for ways to reduce their
Slide 17: Cool Innovations in electrical cleaning
1 Cool Innovations in electrical cleaning • 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 Power steam cleaner provides hygienic cleaning without chemical products while
Slide 18: We are successfully expanding our distribution network
2 We are successfully expanding our distribution network Examples for POS presentations at new customers in France, Netherlands, Bulgaria, Poland, Czech Republic and Romania in 2023 Investor Presentation May 2023 18
Slide 19: We create a fun, fast, friendly and fearless winning culture
4 We create a fun, fast, friendly and fearless winning culture Investor Presentation May 2023 19
Slide 20: 13% increase in turnover per employee FY 2022 vs. FY 2019
4 13 % increase in turnover per employee FY 2022 vs. FY 2019 Group turnover per employee 2018 - 2022 in k€ 262 248 237 206 210 2018 2019 2020 2021 2022 Investor Presentation May 2023 20
Slide 21: Distribution of the 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 22: Forecast 2023 confirmed
Forecast 2023 confirmed Forecast 2023 Group turnover Slightly below the previous year Turnover Household Noticeably below the previous year Turnover Wellbeing Noticeably below the previous year Turnover Private Label Slightly above previous year’s level Group EBIT Positive, in the lower single-digit
Slide 23: ESG-Outlook: New strategic sustainability goals
ESG-Outlook: 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 t
Slide 24: Your Questions please.
Your Questions please.
Slide 25: Annex
Annex
Slide 26: Household and Private Label segment almost at previous year's level
Annex Household and Private Label segment almost at previous year’s level, Wellbeing segment still burdened by consumer restraint Group turnover by segment Group turnover by segment Q1 2019 – Q1 2023 in m€ Q1 2023 10.8% Household 6.0% Wellbeing 90 86 Private Label 80 9 72 70 69 8 70 64 7 83.2% 6 8 5
Slide 27: Russia-Ukraine war and continuing inflation weigh on private consumption
Annex Russia-Ukraine war and continuing inflation weigh on private consumption Group turnover by region Group turnover by region Q1 2019 – Q1 2023 in m€ Q1 2023 90 86 2 11.4% 1.7% Germany 80 9 43.9% 72 70 69 Central Europe 70 64 2 1 2 9 8 2 Eastern Europe 60 10 8 33 43.0% Rest of world 50 29 30 25 2
Slide 28: 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% 12% Laundry Care Germany Eastern 43% 44% Europe Turnover by 11% Turnover product by region cat
Slide 29: Our European production footprint ensured reliable supply to customers
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 30: 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 31: We were able to react flexibly to the changed capacity utilization
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 31 December 2022 31 December 2022
Slide 32: 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 33: Long-term financial overview
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 34: 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 35: Committed to shareholder returns
Annex Committed to shareholder returns Long-term dividend development Dividend yield 1,2 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 proposal for 2022: € 0.70 1,00 0,50 0,00 1984 1985 1986 1987 1988 1989 1990 1991 19
Slide 36: 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 37: 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 38: 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 39: 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 40: Significant free float and international investors
Annex Significant free float and international investors Shareholder structure May 2023 • MKV Verwaltungs GmbH, Grünwald (GER), 10.03% 10.03% • Ruthild Loh, Haiger (GER), 8.26% 8.26% • Leifheit AG Nassau (GER), treasury shares, 42.80% 4.85% 4.85% 0.06% • Employee shares subject to a lock-up period 0
Slide 41: 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 May 2023 41
Slide 42: 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 43: Financial calendar and contact
Annex Financial calendar and contact Dates 2023 Contact 7 June 2023 Corporate Communications / Investor Relations Annual General Meeting Phone: +49 2604 977-218 10 August 2023 Email: [email protected] Publication Half-yearly Financial Report 19 September 2023 Berenberg and Goldman Sachs Thwelfth www.l
Slide 44: Aktiengesellschaft Postfach 11 65 D-56377 Nassau
Aktiengesellschaft Postfach 11 65 D-56377 Nassau