Leifheit AG · XETR:LEI
Leifheit — FY2022 Earnings Presentation
48 slides from Leifheit's earnings presentation, Mar 29, 2023
Slide 1: Investor Presentation FY 2022
Investor Presentation FY 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: We expect consumer demand to remain depressed for several years
We expect consumer demand to remain depressed for several years, especially for non-food household products GfK consumer climate index February 2023, Germany Source: GfK Investor Presentation March 2023 3
Slide 4: Charles Darwin quote
„It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.“ Charles Darwin Investor Presentation March 2023 4
Slide 5: We cannot change macro-economic conditions
„We cannot change macro-economic conditions, but we can respond in a way that protects our profitability.“ Leifheit AG Investor Presentation March 2023 5
Slide 6: Preparing Leifheit AG for a few difficult years
Preparing Leifheit AG for a few difficult years, with the company goal to achieve positive EBIT every year • winning additional retail customers • significant price increases • higher efficiency and productivity process optimization • cost reduction Investor Presentation March 2023 6
Slide 7: Some examples of our crisis response plan
Some examples of our crisis response plan • Streamlining portfolio and substantial SKU reduction • Group synergies in purchasing and logistics • Enhancing Direct-to-Consumer Selling & Shipping • Reduce transport cost & CO2 emissions through Western Europe Logistics Center • Lean manufacturing and co
Slide 8: Executive Summary FY 2022
Executive Summary FY 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 was
Slide 9: 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 March 2023 9
Slide 10: Leifheit is financially solid and pays good dividends
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 11: Turnover in FY 2022 higher than all FY in 2007 – 2019
Turnover in FY 2022 higher than all FY in 2007 – 2019 Group turnover development by quarters in m€ 300,0 +6% +16% ▪ Group turnover in FY 2022 remains -12.8% at a comparatively high level and 250,0 63 still around 7% higher than in the 70 pre-COVID-19 year 2019. 58 59 58 59 57 57 ▪ High comparative v
Slide 12: Positive EBIT despite challenging market prices
Positive EBIT despite challenging market prices in raw materials, energy and freight Group earnings development FY 2021 FY 2022 ∆ FY 2018 – FY 2022 in m€ Group turnover m€ 288.3 251.5 -12.8% Gross margin % 42.3 38.7 -3.6 pps Foreign currency result m€ 1.2 2.9 >100.0% 20.1 20 18.8 EBIT m€ 20.1 2.8 -8
Slide 13: FY 2022: Positive EBIT despite considerable burdens and solid cash generation
FY 2022: Positive EBIT despite considerable burdens and solid Cash generation Q1 2022 Q2 2022 Q3 2022 Q4 2022 EBIT €m 2.7 -0.5 1.0 -0,4 Gross Margin % 40.9 36.0 37.9 39,7 Free cash flow €m -15.6 5.1 12.5 6,8 Investor Presentation March 2023 13
Slide 14: Free cash flow at m€ 8.8 in FY 2022
Free cash flow at m€ 8.8 in FY 2022, thus only slightly below previous year in m€ FY 2021 FY 2022 ∆ Cash flow from operating activities 16.4 14.0 -14.7 % Cash flow from investment activities -6.9 -5.3 1.6 % Cash flow from financing activities -10.4 -10.6 -0.2 % Free cash flow1 9.6 8.8 -0.8 in m€ 31/
Slide 15: Positive free cash flow only slightly below previous year
Positive Free cash flow of m€ 8.8 only slightly below previous year's level Group liquidity 31/12/2021 vs. 31/12/2022 in m€ • Decrease in working capital +7,7 by m€ 5.9 compared to +4,1 31.12.2021 (2021: increase +7,5 by m€ 2.4) +1,2 -6,2 38.1 -5,4 -0,1 • Trade receivables down by -0.6 36,3 m€ 4.1 -
Slide 16: 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 March 2023 16
Slide 17: Increased advertising spend, 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 18: Most long-lasting products campaign
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 19: Electricity Savers campaign
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 20: 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 21: Expanding our distribution network
2 We are successfully expanding our distribution network New customers in CZ and SK in 2022 Investor Presentation March 2023 21
Slide 22: Fun, fast, friendly and fearless winning culture
4 We create a fun, fast, friendly and fearless winning culture Investor Presentation March 2023 22
Slide 23: 13% increase in turnover per employee
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 March 2023 23
Slide 24: Three logistics locations in Europe
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 25: Forecast 2023
Forecast 2023: Turnover slighty below previous year across all segments, EBIT significantly below previous year Forecast 2023 Group turnover Slightly below the previous year Turnover Household Noticeable below the previous year Turnover Wellbeing Noticeable below the previous year Turnover Private L
Slide 26: ESG-Outlook: climate neutrality till 2030
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 27: Your Questions please.
Your Questions please.
Slide 28: Annex
Annex
Slide 29: Household segment turnover below record prior-year
Annex Household segment turnover below record prior-year, but at high level compared to pre-COVID-19 level Group turnover by segment Group turnover by segment FY 2018 – FY 2022 in m€ FY 2022 12.4% Household 6.4% 288 Wellbeing 272 32 251 Private Label 234 234 32 250 26 31 34 32 27 81.2% 16 200 20 20
Slide 30: Russia-Ukraine war and inflation weigh on private consumption
Annex Russia-Ukraine war and continuing inflation weigh on private consumption Group turnover by region Group turnover by region FY 2018 – FY 2022 in m€ FY 2022 300 288 2.9% 8 13.6% 251 39.3% Germany 38 250 7 Central Europe 34 202 200 Eastern Europe 177 177 9 25 116 5 Rest of world 19 6 44.2% 22 111
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 6% Rest of World Kitchen Goods 3% 14% Germany Laundry Care 39% 36% Eastern Turnover by Europe Turnover product 14% by region cat
Slide 32: European production footprint
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 33: 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 34: Flexible reaction to 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 35: Scaling-Up Success tested in the Netherlands
Annex 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 March 2023 35
Slide 36: 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 37: 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 38: 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 39: Committed to shareholder returns
Annex Committed to shareholder returns Long-term dividend development Dividend yield 1 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 1992
Slide 40: 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 41: 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 42: 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 43: 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 44: 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, 42.80% 4.85% 4.85% 0.06% • Employee shares subject to a lock-up period
Slide 45: 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 March 2023 45
Slide 46: 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 47: Financial calendar and contact
Annex Financial calendar and contact Dates 2023 Contact 11 May 2023 Corporate Communications / Investor Relations Publication Quarterly Statement (Q1) Phone: +49 2604 977-218 7 June 2023 Email: [email protected] Annual General Meeting 10 August 2023 Publication Half-yearly Financial Report www.leifhei
Slide 48: Aktiengesellschaft Postfach 11 65 D-56377 Nassau
Aktiengesellschaft Postfach 11 65 D-56377 Nassau