Leifheit AG · XETR:LEI
Leifheit — FY2020 Earnings Presentation
43 slides from Leifheit's earnings presentation, Mar 24, 2021
Slide 1: Investor & Analyst meeting March 24, 2021
Investor & Analyst meeting March 24, 2021
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 FY 2020
Executive Summary FY 2020 Group turnover up 16% to € 272 m in 2020 Group turnover up 22.6% in Q4 2020 Germany turnover up 15% in 2020 and up 41% in Q4 2020 2020 EBIT up 90% to € 18.8 m Dividend proposal: 1.05 €, up 91% vs previous year Analyst meeting March 2021 3
Slide 4: Good start to Q1 2021 but effects of COVID-19 pandemic continue to be noticeable
Good start to Q1 2021 but effects of COVID-19 pandemic continue to be noticeable Very good start to the 2021 financial year on the sales side - Successful start of new TV campaigns for Leifheit products in Germany and other European markets as well as for Soehnle brand - Increased consumer demand he
Slide 5: 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 Analyst meeting March 2021 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 in € 1.50 1,50 Dividend payments 1984 - 2020* 1,00 1.00 0,50 0.50 0,00 0.00 Bonus/special dividend Dividend *2020 Proposal Strong financial structure Strong long-term stock per
Slide 7: Our 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 20 12,00% -2% -7% -1% -15% -31% -24% 120 47,0% 46.4% 18 10,00% 16 100 46,0% 14 8.0% 8,00% 80 45,0% 12 10 5.6% 6,00% 60 44,0% 43.6% 43.1% 8 4.2% 4,00% 40 43,0% 6
Slide 8: Successful turnaround in 2020 - EBIT up 90% vs. 2019
Successful turnaround in 2020 - EBIT up 90% vs. 2019 Gross profit EBIT in € m in € m 109.9 102.1 101.0 122.3 18.8 13.1 9.9 18.8 -2% -7% -1% +21% -15% -31% -24% +90% 47,0% 20 12,00% 46.4% 120 18 46,0% 10,00% 16 100 8.0% 45,0% 14 45,0% 6,9% 8,00% 80 12 43.6% 44,0% 10 5.6% 6,00% 60 8 43.1% 43,0% 4.2% 4
Slide 9: New strategy transforms Leifheit into a growing business
New strategy transforms Leifheit into a growing business Group turnover development by quarters in % • After years of flat revenue now double-digit growth in 2020 • Very strong 2nd half ‘20 with more than 20% sales growth in Q3 and Q4 40 • Q4 growth affected by temporary +28.4% +22.6% closure of key
Slide 10: EBIT margin up by 270 basis points from 4.2% in 2019 to 6.9% in 2020
EBIT margin up by 270 basis points from 4.2% in 2019 to 6.9% in 2020 2019 2020 ∆ Group turnover €m 234.0 271.6 16.0 % Gross margin % 43.1 45.0 1.9 pps Foreign currency result €m 0.3 -0.9 > -100 % EBIT €m 9.9 18.8 90.2 % EBIT margin % 4.2 6.9 2.7 pps Earnings before taxes (EBT) €m 8.5 17.7 > 100 % Ne
Slide 11: Growth and pandemic-related higher Working Capital affected liquidity
Growth and pandemic-related higher Working Capital affected liquidity in € m 2019 2020 ∆ Cash flow from operating activities 15.9 4.0 -11.9 Cash flow from investment activities -5.8 -9.5 -3.7 Cash flow from financing activities -10.7 -6.0 4.7 Cash and cash equivalents at the end of reporting period
Slide 12: Negative cash flow behind turnover growth and increased inventories
Negative cash flow behind turnover growth (trade receivables) and increased inventories (prepare future growth and secure supplies during pandemic) Group liquidity 31.12.2019 vs. 31.12.2020 in € m • Increase in trade receivables as a result of turnover growth 8.5 (FY 2019: decrease € 6.3 m) 12.5 • N
Slide 13: Our purpose? Happy consumers!
Our purpose? Happy consumers! Better Value for Money Analyst meeting March 2021 13
Slide 14: 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 2019 2020 2020+ consumer advertising Create consumer on profitable best sellers Concept Realisation Impact Revenue demand • Launch new products only if margin
Slide 15: Create consumer demand and make brands stronger
1 Create consumer demand and make brands stronger Peer group comparison Marketing spend and EBIT 2020 in % of turnover EBIT margin 25,0 P&G1 20,0 15,0 Unilever1 Beiersdorf1 10,0 5,0 Leifheit 2020 Leifheit 2019 0,0 Marketing spend 0 5 10 15 20 25 30 35 40 1 Source: Annual reports 2020 Analyst meeting
Slide 16: 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 2020 in € m +35% +20% +52% +18% +33% Netherlands Belgium Switzerland Poland Romania Analyst meeting March 2021 16
Slide 17: Encouraged by strong TV test results we took the approach to Germany
1 Encouraged by strong results in TV advertising test countries we took the approach to our #1 market Germany H2 Turnover development Germany Group turnover % change 2020 vs 2019 Q4 2020 +41% FY 2020 +14,6% Analyst meeting March 2021 17
Slide 18: New strategy led to positive turnaround in Germany
1 New strategy led to positive turnaround in Germany away from the recent downward trend Group turnover development in Germany by quarters in % • Clear upward trend after years of flat sales 40,7 • Consumer advertising led to very strong 2nd half ‘20 36,0 32,8 with double-digit sales growth in Q3 an
Slide 19: Scaled up advertising approach 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 focused on Soehnle Page Profi 300 digital kitchen scales, recently awarded a “very good” test result. • Soehnle Page is the most-popular range of kitchen scales in Germany. • Ta
Slide 20: 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 Analyst meeting March 2021 20
Slide 21: 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 turnover FY 2018 FY 2019 FY 2020 Change Consumer marketing 0.7% 1.7% 5.5% +3.8 pp ✓ Other marketing 5.4% 4.6% 3.6% -1.0 pp ✓ R&D 2.3% 2.4% 2.1% -0.3 pp ✓ Logistics1 11.0% 11.5% 10.5% -1.0 pp ✓ Administration 6.1%
Slide 22: Forecast 2021 Turnover and earnings growth
Forecast 2021 Turnover and earnings growth Forecast 2021 Group turnover at least +5% Turnover Household at least +6% Turnover Wellbeing at least +7% Turnover Private Label Slight increase Group EBIT 20 – 24 €m Free Cashflow 10 – 14 €m Analyst meeting March 2021 22
Slide 23: Scaling Success
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Slide 24: Your questions please.
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Slide 25: Annex
Annex
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 9.8% Rest of World 5.0% Germany Kitchen Goods Laundry Care 39.5% 16.7% 37.6% Turnover by Eastern Turnover product Europe by regi
Slide 27: 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 28: Fortunately, 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) 6 (5) Cash & Carry 3 (3) Hypermarket Importers/ 27 (29) Exporters Top 10 8 (8) Customers Turnover 2020: accou
Slide 29: Strong growth in Household and Wellbeing segments
Annex Strong growth in Household and Wellbeing segments following large-scale advertising Group turnover by segment Group turnover by segment 2019 vs 2020 in € m 2020 11.7% 271.6 78.5% Household 300 Private Label 234.0 9.8% Wellbeing 250 32.0 Wellbeing Private Label 26.5 32.2 200 Household 19.8 150
Slide 30: 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 2019 vs 2020 in € m 2020 140 5.0% 12.5% Germany 39.5% 116.9 120 Central Europe 107.2 93.5 101.3 100 Eastern Europe Rest of the world 80 43.0% 60 • Turnaround in Germany: 14.6% gr
Slide 31: Number of employees at a stable level
Annex Number of employees at a stable level Employee development Employees by region 31 Dec 31 Dec 2020 7.3% Private Label Germany 1.200 12.9% 1,106 1,098 Wellbeing 36.7% Czech Republic 148 137 Household 1.000 France 52 47 Other countries 800 43.1% 600 906 914 400 200 0 2019 2020 Analyst meeting Mar
Slide 32: Long-term financial overview
Annex Long-term financial overview 2016 2017 2018 2019 2020 Group turnover €m 237.1 236.8 234.2 234.0 271.6 Profitability ▪ Gross margin % 47.5 46.4 43.6 43.1 45.0 ▪ Cash flow from operating activities €m 21.8 7.2 10.2 15.9 4.0 ▪ Free cash flow €m 14.3 1.5 3.7 10.1 -5.5 ▪ EBIT €m 22.1 18.8 13.1 9.9
Slide 33: Long-term financial overview
Annex Long-term financial overview 2016 2017 2018 2019 2020 Per share1 Net result for the period2 € 1.53 1.35 0.88 0.61 1.32 Free cash flow € 1.51 0.16 0.39 1.06 -0.57 Dividend2 € 1.05 1.05 1.05 0.55 1.05 Special dividend € 0.40 -- -- -- -- Investments €m 7.8 7.8 6.6 6.0 9.6 Depreciation €m 6.2 6.4
Slide 34: 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, Controlling, SodaStream as CTO at Igus GmbH and Sto
Slide 35: Committed to shareholder returns
Annex Committed to shareholder returns Long-term dividend development Dividend yield 1,2 Dividend per share / in € 2020: 2.4% 2016: 5.1% 2019: 2.3% 2015: 5.6% 2018: 5.9% 2014: 3.9% 2017: 3.8% 2013: 5.3% 1,50 Dividend for 2020: 1.05 €2 1,00 0,50 0,00 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993
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 Air Humidifier Page Profi + Page Profi 300 Style Sense Compact 300 + Safe 300 Airfresh Hygro 500 Air Purifier Body analysis scales Blood pressure monitors AirFresh Clean 300 Shape Sense Connect 100 + 200 Systo Monitor 200 + 300 and Clea
Slide 38: 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 February 2021 • Joachim Loh, Haiger (GER), 10.31% 10.31% • MKV Verwaltungs GmbH, Grünwald (GER), 10.03% 10.03% • Leifheit AG Nassau (GER), treasury shares, 4.87% 4.87% • Alantra EQMC Asset Management, SGIIC, SA, Madrid (E
Slide 41: Financial calendar and contact
Annex Financial calendar and contact Dates 2021 Contact 11 May 2021 Corporate Communications / Investor Relations Quarterly statement for the period ending 31 March 2021 Phone: +49 2604 977-218 2 Jun 2021 Annual General Meeting Email: [email protected] 11 Aug 2021 Financial report for the first half-y
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 Most Valuable Germany‘s Most Sought-after Highest Level Germany‘s Best Company Products & Services of Trust Customer Hotline Sep 2020 Jan 2020 Oct 2020 Aug 2020 Deutschland Test / Focus Money IMWF Institut / F
Slide 43: Aktiengesellschaft Postfach 11 65 D-56377 Nassau
Aktiengesellschaft Postfach 11 65 D-56377 Nassau