Leifheit AG · XETR:LEI
Leifheit — FY2023 Earnings Presentation
47 slides from Leifheit's earnings presentation, Mar 27, 2024
Slide 1: Investor Presentation FY 2023
Investor Presentation FY 2023 27 March 2024
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: Experienced Management Board
Experienced Management Board Alexander Igor Iraeta Marco Reindler Munduate Keul CEO COO CFO Previous experience Previous experience Previous experience • Brings more than 25 years of • Many years of experience as CTO at • Responsible for Controlling, international experience in leading Igus GmbH and
Slide 4: Executive Summary FY 2023
Executive Summary FY 2023 Group turnover up by 2.7% to 258 m€ – despite difficult economic conditions and weak consumption Significant improvement in gross margin by 3.4 pp to 42.1% Group EBIT significantly increased by 3.2 m€ to 6.0 m€ despite one-off compensation payment and other expenses totalin
Slide 5: Leifheit Group structure
Leifheit Group structure Household Wellbeing Private Label Kitchen Laundry Care Cleaning Kitchen goods Kitchen + personal scales Standing Dryers goods Wellbeing 6% Rest of World Kitchen Goods 2% Germany 12% Laundry Care Eastern 40% 46% Europe Turnover by 14% Turnover product by region category FY 20
Slide 6: Consumer climate: stabilisation at a low level
Consumer climate: stabilisation at a low level GfK consumer climate index March 2024, Germany • Consumer demand in Europe is expected to remain weak, especially for non-food household products Investor Presentation March 2024 6
Slide 7: Group turnover up 2.7% in FY 2023 despite difficult market environment
Group turnover up 2.7 % in FY 2023 despite continuing difficult market environment Group turnover by segment, region in m€ Group Household Wellbeing Private Label Turnover 258.3 211.9 16.4 30.0 • Group turnover up 2.7 % in in m€ FY 2023 despite continuing difficult market environment Growth ‘23 2.7%
Slide 8: New record year for Leifheit Pegasus standing dryers
Success story 2023 New record year for Leifheit Pegasus standing dryers • Part of the Leifheit product family for 20 years • New record number of 1.8 million Pegasus dryers sold in 2023 • Introduction of the premium model Pegasus 150 Solid Slim Black meets the current color trend and is aimed at a t
Slide 9: Effective campaign with focus on Profi Cleaning system
Success story 2023 Success story 2023: Effective campaign with focus on Profi Cleaning system • Successful Profi campaign including TV commercial led to increased consumer interest • The campaign significantly contributed to the +3.9% growth in the cleaning category • Market shares mechanical Cleani
Slide 10: E-commerce growth +12.6% in 2023
Success story 2023 E-commerce growth +12.6% in 2023 • E-commerce fastest growing channel with +12,6% in 2023 consolidating E-commerce as the second strongest sales channel • Expanding our D2C capabilities to enable profitable growth in key markets in Western Europe Investor Presentation March 2024 1
Slide 11: New central European logistics hub
Success story 2023 New central European logistics hub • New central European logistics hub at the logistics site in Chablis, France, which was previously operated exclusively by our subsidiary Birambeau • Distribution across three logistics locations brings cost advantages, shortens transport routes
Slide 12: FY 2023 Financials
FY 2023 Financials
Slide 13: Group turnover development by quarters
Financials FY 2023 Group turnover up 2.7 % in FY 2023 despite continuing difficult market environment Group turnover development by quarters in m€ 300 +6.2% +16.0% +2.7% • Successful initiatives deliver solid -12.8% results despite the challenging 250 63 economic environment and an 70 unchanged subd
Slide 14: Household and Wellbeing above previous year, Private Label down slightly
Financials FY 2023 Household and Wellbeing segments above previous year’s level, Private Label down slightly Group turnover by segment Group turnover by segment in m€ FY 2023 11.6% 300 Household 258 6.3% 252 Wellbeing 250 30 31 Private Label 16 16 200 82.1% 150 • Household segment up by +3.8% 100 20
Slide 15: Back on growth track despite inflation and difficult market
Financials FY 2023 Back on growth track despite continuing inflation and difficult market environment Group turnover by region Group turnover by region 2022 – 2023 in m€ FY 2023 300 2.1% 258 13.5% 251 44.3% Germany 250 5 7 Central Europe 34 35 200 Eastern Europe 114 40.2% Rest of world 150 111 • Ger
Slide 16: EBIT increased due to improved gross margin
Financials FY 2023 EBIT increased due to improved gross margin, despite negative one-off effects caused by changes in Management Board Group earnings development FY 2022 FY 2023 ∆ FY 2019 – FY 2023 in m€ Group turnover m€ 251.5 258.3 2.7% Gross margin % 38.7 42.1 3.4 pps Foreign currency result m€ 2
Slide 17: Steadily increasing gross margins
Financials FY 2023 Steadily increasing gross margins FY +3.4 pps Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Gross Margin % 39.7 38.7 40.5 41.3 42.6 44.3 42.1 • Improvement in gross margin to 42.1% in FY 2023 (FY 2022: 38.7%) because of - sales price adjustments - positive product mix ef
Slide 18: Declines in procurement costs vs. 2022 peak, but prices remain high
Financials FY 2023 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 appr. +41% vs. 2020* (+5% vs. previous month) • Some raw material costs (esp. PP and Cotton) already with upward trend •
Slide 19: Free cash flow increased by 3.3 m€ to 12.1 m€
Financials FY 2023 Free cash flow increased by 3.3 m€ from 8.8 m€ in FY 2022 to 12.1 m€ in FY 2023 in m€ FY 2022 FY 2023 ∆ Cash flow from operating activities 14.0 20.8 6.8 Cash flow from investment activities -5.3 -8.7 -3.4 Cash flow from financing activities -10.6 -7.1 3.5 Free cash flow1 8.8 12.1
Slide 20: Group liquidity increased to 41.3 m€
Financials FY 2023 Group liquidity increased by 5 m€ from 36.3 m€ in 2022 to 41.3 m€ in 2023 Group liquidity 31/12/2022 vs. 31/12/2023 in m€ 12.2 9.0 9.0 • Improvement in working 41.3 capital, especially the -7.4 -0.6 36.3 3.2 reduction in inventories -5.0 -6.7 -8.9 • In addition, investment measure
Slide 21: Committed to shareholder returns
Use of capital Committed to shareholder returns Long-term dividend development Dividend yield1 2 Dividend per share / in € 2023 : 6.5% 2019: 2.3% 2022: 5.2% 2018: 5.9% 2021: 2.9% 2017: 3.8% 2020: 2.4% 2016: 5.1% Proposal for 2023 Dividend of 1,50 0.95 € + special 1.05 €2 Dividend 1,00 0.10 € 0,50 0,
Slide 22: Outlook 2024
Outlook 2024
Slide 23: 2024: Revision of our corporate strategy
Outlook 2024 2024: Revision of our corporate strategy, focusing on growth and cost efficiency to position the Group for sustainable success • Strengthening our brand positioning • Focus on core segments Future Growth • Strengthen our Innovation pipeline with bigger, better innovation • Stronger inte
Slide 24: Celebrating 65th anniversary
Outlook 2024 Celebrating 65th anniversary • We celebrate 65 years of "German brand quality“ and 40 years of Rotary dryer Linomatic - Made in Germany brand quality • Further anchor the origin and longtime values of Leifheit in the minds of consumers at the POS • Additional 1-year warranty on all item
Slide 25: Innovation - Expansion of successful black line
Outlook 2024 Innovation - Expansion of successful black line • Proven quality and stability meet stylish design • Black Pegasus and tower dryers, as well as Air Board and Classic ironing Boards complement each other perfectly Investor Presentation March 2024 25
Slide 26: New Product innovation cleaning is coming up
Outlook 2024 New Product innovation cleaning is coming up Investor Presentation March 2024 26
Slide 27: Resilience: Managing strained supply chains
Outlook 2024 Resilience: Managing strained supply chains in production and logistics • Share of Group turnover with products from in-house production up by +4pp in 2023 to 64% • Further increased the share of European suppliers to 73 % (2022: 72%) to reduce risks and dependencies on procurement regi
Slide 28: 2024 forecast
Outlook 2024 2024 forecast Still challenging market environment ahead Forecast 2024 Group turnover slightly above the previous year Turnover Household slightly above the previous year Turnover Wellbeing slightly below the previous year Turnover Private Label slightly above the previous year Group EB
Slide 29: Your questions, please.
Your questions, please.
Slide 30: Annex
Annex
Slide 31: Leifheit is financially solid and pays reliable dividends
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 2023: 1.05 € 0,50 0.50 0,00 0.00 Bonus/special dividend Dividend Strong financial structure Solid long-term stock performance in m€ Assets
Slide 32: Majority of employees based in Europe
Annex Majority of employees based in Europe Employee development* Employees by region* 31 December 2023 31 December 2023 Private Label 1.200 8.0% 1,063 Wellbeing 1,020 Germany 13.5% Czech Republic 1.000 126 Household 37.8% 124 34 28 France Other countries 800 600 40.8% 903 868 400 200 0 2022 2023 In
Slide 33: Leifheit makes top quality household products
Annex Leifheit makes top quality household products Profi Floor Wiper Profi XL Set Pegasus 150 black Linomatic 600 Deluxe 4.6 stars 4.5 stars 4.7 stars 4.7 stars Investor Presentation March 2024 33
Slide 34: European production and logistic footprint
Annex Our European production and logistic footprint ensures efficient and reliable supply to customers Paris/F (Leifheit/Birambeau) Nassau/D (Leifheit/Soehnle) • About 15 employees • About 280 employees • Marketing, sales • Marketing, sales, development, quality and administration assurance, centra
Slide 35: Distribution in all relevant distribution channels
Annex Distribution in all relevant distribution channels Blue Chip client base Distribution channels Turnover 2023 in % (previous year’s figures) Others 7 (7) Electro 3 (4) Hypermarket Importers/ 26 (26) Exporters Top 10 7 (7) Customers account for 50% Discounters Turnover 2023: of Leifheit’s 7 (10)
Slide 36: Long-term financial overview
Annex Long-term financial overview 2019 2020 2021 2022 2023 Group turnover m€ 234.0 271.6 288.3 251.5 258.3 Profitability ▪ Gross margin % 43.1 45.0 42.3 38.7 42.1 ▪ Cash flow 14.0 20.8 from operating activities m€ 15.9 4.0 16.4 ▪ Free cash flow m€ 10.1 -5.5 9.6 8.8 12.1 ▪ EBIT m€ 9.9 18.8 20.1 2.8
Slide 37: Long-term financial overview
Annex Long-term financial overview 2019 2020 2021 2022 2023 Per share Net result for the period, EPS2 € 0.61 1.32 1.49 0.13 0.34 Free cash flow € 1.06 -0.57 1.00 0.92 1.27 Dividend € 0.55 1.05 1.05 0.70 0.952 Special dividend € -- -- -- -- 0.102 Investments m€ 6.0 9.6 7.3 5.4 8.9 Depreciation m€ 8.2
Slide 38: 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 39: Soehnle awards (selection)
Annex Soehnle awards (selection) Kitchen Scales Personal Scales Page Profi + Page Profi 300 Style Sense Personal Scales Style Sense Bamboo Magic Page Aqua Proof Kitchen Scale Body analysis scales Blood pressure monitors Shape Sense Connect 100 + 200 Systo Monitor 200 + 300 Investor Presentation Marc
Slide 40: Leifheit – 65 years of passion for housework
Annex Leifheit – 65 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 2024 • Takeover of Dr Oetker Bakeware • Review of the 60% of Herby/F • Acquisition of Spir
Slide 41: 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 42: Significant free float and international investors
Annex Significant free float and international investors Shareholder structure March 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% 44.34% • Employee shares subject to a lock-up period
Slide 43: ESG: Strategic sustainability goals
Annex ESG: 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 emi
Slide 44: Our ESG Principles
Annex Our ESG Principles 1 Read more at our sustainability report 2023 www.leifheit-group.com/en/investor- relations/reports-and-presentations/ 1 Scope 1 and scope 2 emissions Investor Presentation March 2024 44
Slide 45: Leifheit is frequently top company in home appliances categories
Annex Leifheit is frequently top company in home appliances and household goods categories We are pleased that our efforts towards sustainability are being noticed and rewarded by consumers. • For example, we were awarded the “Germany’s Best Sustainability” seal once again in 2023 for the third year
Slide 46: Financial calendar and contact
Annex Financial calendar and contact Financial calendar 2024 Contact 27 March 2024 Corporate Communications / Investor Relations Annual reports 2023, sustainability report including Phone: +49 2604 977-218 non-financial Group report 2023 E-Mail: [email protected] Investor and analyst conference call 8
Slide 47: Aktiengesellschaft Postfach 11 65 D-56377 Nassau
Aktiengesellschaft Postfach 11 65 D-56377 Nassau