Leifheit AG · XETR:LEI
Leifheit — 9M 2024 Earnings Presentation
51 slides from Leifheit's earnings presentation, Nov 12, 2024
Slide 1: Investor Presentation 9M 2024
Investor Presentation 9M 2024 12 November 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: Executive Summary: Leifheit records higher profitability in 9M 2024
Executive Summary: Leifheit records higher profitability in 9M 2024 New, holistic corporate strategy focusing on profitable growth and cost efficiency Group turnover at 200.8 m€ in line with expectations Significant catch-up effects with 6.3% growth in Q3 Strong improvement in gross margin by 2.9 pp
Slide 4: Consumer climate: slight recovery at a low level
Consumer climate: slight recovery at a low level Consumer confidence index (CCI) GfK consumer climate index September 2024, EU-27 October 2024, Germany Source: https://www.oecd.org/en/data/indicators/consumer-confidence-index-cci.html Source: GfK Konsumklima powered by NIM / co-funded by European Co
Slide 5: Group turnover in line with expectations
Group turnover in line with expectations – catch-up effects recorded in third quarter Group turnover by segment, region in m€ Group Household Wellbeing Private Label Turnover 200.8 166.2 11.0 23.6 • Q1 was negatively impacted in m€ by low discounter promotions Growth 0.4% 0.3% -10.5% 7.0% • Strong Q
Slide 6: Strong E-commerce growth of +6.6% in 9M 2024
Highlights 9M 2024 Strong E-commerce growth of +6.6% in 9M 2024 Distribution channels Turnover 9M 2024 in % (previous year’s figures) Electro Discounter 3 (3) Others 7 (10) 5 (5) • E-commerce again one of the fastest growing Importers/Exporters channel with +6.6% in 9M 2024 7 (7) • Expanding our D2C
Slide 7: 9M 2024 Financials
9M 2024 Financials
Slide 8: Group turnover 9M 2024 in line with expectations
Financials 9M 2024 Group turnover 9M 2024 in line with expectations Group turnover development by quarters in m€ • Catch-up effects in Q2 + Q3 2024 • Growing e-commerce is a key driver 300 +6.2% • Base effects in the discounter +16.0% +2.7% channel led to yoy turnover -12.8% decline mainly in Q1 202
Slide 9: EBIT increased due to improved gross margin
Financials 9M 2024 EBIT increased due to improved gross margin, despite strategy-related one-off effects from organizational changes Group earnings development 9M 2020 – 9M 2024 in m€ 18,0 16.6 16,0 15.4 9M 2023 9M 2024 ∆ 14,0 Group turnover m€ 200.0 200.8 0.4% 12,0 11.5 Gross margin % 41.4 44.3 2.9
Slide 10: Slight easing in sea freight rates in Q3
Financials 9M 2024 Slight easing in sea freight rates in Q3 but still on a higher level Global container freight rate index in US dollars per 40-foot container (source: statista) Investor Presentation November 2024 10
Slide 11: Gross margin improvement
Financials 9M 2024 Gross margin improvement +2.9 pps Q1 Q2 Q3 9M Q4 Q1 Q2 Q3 9M 2023 2023 2023 2023 2024 2024 2024 2023 2024 Gross % Margin 40.5 41.3 42.6 41.4 44.3 44.7 44.5 44.1 44.3 • Improvement in gross margin to 44.3% in 9M 2024 (9M 2023: 41.4%) because of - positive product mix effects due to
Slide 12: Raw Material price development
Financials 9M 2024 Raw Material price development • Average price increase of main raw materials appr. +36% vs. 2020* (-1% vs. previous quarter) • Some raw material costs (esp. Packaging and Aluminium) with upward trend, price level of 2019/20 will be not reached in the short term *Calculation basis
Slide 13: Free cash flow of 14.3 m€ after 13.0 m€ in 9M 2023
Financials 9M 2024 Free cash flow of 14.3 m€ after 13.0 m€ in 9M 2023 in m€ 9M 2023 9M 2024 ∆ Cash flow from operating activities 17.1 18.9 1.8 Cash flow from investment activities -4.1 -4.6 -0.5 Cash flow from financing activities -7.0 -12.8 -5.8 Free cash flow1 13.0 14.3 1.3 in m€ 30/09/2023 30/09
Slide 14: Leifheit has solid liquidity to implement the new corporate strategy
Financials 9M 2024 Leifheit has solid liquidity to implement the new corporate strategy Group liquidity 31/12/2023 vs. 30/09/2024 in m€ 9.9 3,4 5.7 6.8 -0,5 • Free cash flow increased -4.8 2,9 in 9M 2024 to 14.3 m€ 41.3 42.8 -10.0 (9M 2024: 13.0 m€) -9.6 -2.3 • Positive effects from the reduction in
Slide 15: Strategy Update
Strategy Update
Slide 16: Corporate Strategy: Philosophy and Vision
Corporate Strategy OUR PHILOSOPHY Our ideas to make your life easier. OUR VISION We are the European branded leader and specialist in mechanical cleaning and drying – with highest consumer satisfaction, an entrepreneurial culture and a sustainability mindset. Investor Presentation November 2024 16
Slide 17: Holistic corporate strategy with focus on profitable growth and cost efficiency
Corporate Strategy Holistic corporate strategy with focus on profitable growth and cost efficiency Our growth drivers: Our Efficiency drivers: • Modern brand positioning for the • Focusing the company on drying and Leifheit brand based on deep consumer mechanical cleaning; clear strategies for insig
Slide 18: Potential in Core – Mechanical cleaning & drying
Corporate Strategy Potential in Core – Mechanical cleaning & drying Market shares mechanical cleaning & drying No.1 Big potential to increase market 22,2% share in core categories Total market Core business 3x growth: € 2.4 billion* 9,6% Leifheit 59,2% Leifheit Drying | Cleaning: + 5% non-core: - 3%
Slide 19: Potential in Europe outside Germany
Corporate Strategy Potential in Europe outside Germany Leifheit Group Market for mechanical turnover 2023 cleaning & drying Expand successful model in core markets Rest of world 2% Germany 23% Defined country clusters with Germany 40% growth and profit targets Europe excl. Germany 77% E-commerce ent
Slide 20: Strong focus on Innovation to drive growth and profitability
Corporate Strategy Strong focus on Innovation to drive growth and profitability Ironing Boards and Tower Dryers on top sales volumes in % Successful Black Line 2023/2024 Investor Presentation November 2024 20
Slide 21: New E-commerce & digital model as growth accelerator
Corporate Strategy New E-commerce & digital model as growth accelerator and success model Strategic goal: 30% E-commerce share of Group turnover in 2027 Expand Efficient logistic Distribution & network & D2C Product Capabilities Share of E-commerce in Group turnover availability in % 30 25 Shift 20
Slide 22: Pilot France D2C 2024
Corporate Strategy Pilot France D2C 2024 • Efficient logistic from new D2C logistic hub • New distribution via additional marketplaces 08 – 10 2024 • Strong investment into Performance Marketing D2C Ecommerce in France increased by 270% vs. previous year period Investor Presentation November 2024 22
Slide 23: Value optimization: lean and efficient production and logistics
Corporate Strategy Value optimization: Steps towards lean and efficient production and logistics have been taken Actions: • Implementation of synchronic production cells and production lines • Introduction of D2C dedicated assortment Productivity production site* Productivity Logistics D2C** 2020 –
Slide 24: Efficient organization: lean organizational structures
Corporate Strategy Efficient organization: Steps towards lean and efficient organizational structures have been taken New sales and New central European marketing organization logistics hub • Follows the strategy with a view to the focus • Optimization of logistics by shortening transport markets an
Slide 25: Investment Highlights
Investment Highlights Strong vision: Strong Brand Focus strategy become European branded leader with big potential for geographical for sustainable growth with focus and specialist in mechanical expansion on core competences, Europe and cleaning and drying e-com | digital acceleration Lean and effic
Slide 26: Outlook 2024
Outlook 2024
Slide 27: 2024 forecast confirmed
Outlook 2024 2024 forecast confirmed – 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 y
Slide 28: Your questions, please.
—~ Your questions, please.
Slide 29: Annex
Annex
Slide 30: Experienced Management Board
Annex 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 Gm
Slide 31: Leifheit is financially solid and pays reliable dividends
Annex Leifheit is financially solid and pays reliable dividends to shareholders 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 Liabilities 250 204 207 250 204 207 Cash and fin
Slide 32: Central and Eastern Europe with remarkable turnover growth
Annex Central and Eastern Europe with remarkable turnover growth, Germany still influenced by shifts in sales Group turnover by region Group turnover by region in m€ 9M 2024 in % 250 2.3% 200 201 13.9% 38.5% Germany 200 4 5 Central Europe 25 28 Eastern Europe 150 45.3% Rest of world 86 91 100 • Germ
Slide 33: Slight turnover growth across segments in 9M 2024
Annex Slight turnover growth across segments in 9M 2024 as expected, but on track for 2024 turnover forecast Group turnover by segment Group turnover by segment in m€ 9M 2024 in % 11.7% 250 Household 200 201 5.5% Wellbeing 200 Private Label 22 24 12 11 150 82.8% • Household segment up by 0.3%, 100 1
Slide 34: Leifheit Group structure
Annex Leifheit Group structure Household Wellbeing Private Label Kitchen Standing Laundry Care Cleaning Kitchen Goods Kitchen + Personal Scales Goods Dryers Wellbeing 6% Rest of World Kitchen Goods 12% 2% Germany Laundry Care 39% Eastern Turnover by 48% Europe 14% Turnover product by region category
Slide 35: Committed to shareholder returns
Annex Committed to shareholder returns Long-term dividend development Dividend yield1 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% 2023 Dividend of 1,50 0.95 € + special 1.05 € Dividend 1,00 0.10 € 0,50 0,00 1984 1985 1986 1987 198
Slide 36: Increased efficiency and productivity led to reduction in number of employees
Annex Increased efficiency and productivity led to reduction in number of employees Employee development* Employees by region* 6M 2024 (average number) 6M 2024 (average number) Private Label 1.200 7.8% 1,043 Wellbeing 1,030 Germany Household 14.8% Czech Republic 1.000 128 37.8% 138 France 33 25 Othe
Slide 37: Distribution in all relevant distribution channels
Annex Distribution in all relevant distribution channels Blue Chip client base Distribution channels Turnover 9M 2024 in % (previous year’s figures) Electro 3 (3) Discounter 7 (10) Others 5 (5) Importers/Exporters Top 10 7 (7) Customers account for 50% Retail-/Whole sale, of Leifheit’s Department st
Slide 38: 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 39: 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 40: 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 November 2024 40
Slide 41: Our 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 20 employees • About 280 employees • Marketing, sales • Marketing, sales, development, quality and administration assurance, centra
Slide 42: 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 43: 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 Nove
Slide 44: 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 • New corporate 60% of Herby/F • Acquisition of Spir
Slide 45: 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 46: Significant free float and international investors
Annex Significant free float and international investors Shareholder structure November 2024 MKV Verwaltungs GmbH, Grünwald (GER) 10.03% 10.03% Ruthild Loh, Haiger (GER) 8.26% 8.26% Leifheit AG Nassau (GER), treasury shares 6.39% 6.39% 42.87% 0.05% Employee shares subject to a lock-up period 0.05% A
Slide 47: 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 em
Slide 48: 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 November 2024 48
Slide 49: Leifheit is frequently top company in home appliances and household goods
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. • We were awarded the “Germany’s Best Sustainability” seal once again in 2023 for the third year running. The
Slide 50: Financial calendar and contact
Annex Financial calendar and contact Financial calendar 2024 / 2025 Contact 25 - 27 November 2024 Corporate Communications / Investor Relations Deutsche Börse – German Equity Forum 2024, Frankfurt Phone: +49 2604 977-218 9 April 2025 E-Mail: [email protected] Annual Reports 2024 Analyst Conference 7 M
Slide 51: Aktiengesellschaft Postfach 11 65 D-56377 Nassau
Aktiengesellschaft Postfach 11 65 D-56377 Nassau