Leifheit AG · XETR:LEI
Leifheit — Q1 2022 Earnings Presentation
43 slides from Leifheit's earnings presentation, May 11, 2022
Slide 1: Investor Presentation Q1 2022
Investor Presentation Q1 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: Executive Summary Q1 2022
Executive Summary Q1 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 is a
Slide 4: Leifheit makes top quality household products, designed in Germany
Leifheit makes top quality household products, designed in Germany 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 2022 4
Slide 5: 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 payments 1984 - 2020 1,00 1.00 0,50 0.50 0,00 0.00 Bonus/special dividend Dividend Strong financial structure Strong long-term stock performance in m€ in % A
Slide 6: The strategy works: 2019 to 2021 CAGRs of +11% turnover, +43% EBIT
The strategy works: 2019 to 2021 shows CAGRs of +11% on turnover and +43% on EBIT Group turnover Group EBIT in m€ in m€ ~11 % -23 % CAGR CAGR -0.4 % 22.1 300 CAGR 288 272 20.1 20 18.8 18.8 250 237 237 234 234 200 15 ~43% 13.1 CAGR 150 9.9 10 100 5 50 0 0 2016 2017 2018 2019 2020 2021 2016 2017 2018
Slide 7: Scaling-Up Success, heavy TV ad spend, tested in the Netherlands
Scaling-Up Success, i.e. heavy TV ad spend, was tested before Corona 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 2022 7
Slide 8: Q1 2022 saw the 2nd highest turnover in the last 15 years
Q1 2022 saw the 2nd highest turnover of Leifheit AG in the last 15 years (on comparable basis, i.e. excluding divested businesses) Group turnover development by quarters in m€ 300 +6% +16% 63 250 70 59 58 59 57 57 200 59 70 72 150 58 57 56 57 60 54 70 100 62 56 59 58 57 -16.5% 52 55 50 86 65 63 62 6
Slide 9: Consumer climate in Germany reaches historic low
Consumer climate in Germany reaches historic low Source: GfK-Study Investor Presentation May 2022 9
Slide 10: Raw material prices soared – no end of price rally in sight
Raw material prices soared – no end of price rally in sight! Steel DC 01 +170% Plastics ABS Granulate +108% since mid 2020 since mid 2020 4.500,0 4.000,0 EUR/t 3.500,0 +170% 3.000,0 +108% EUR/t. 2.500,0 2.000,0 1.500,0 1.000,0 Nov. 20 Dez. 20 Feb. 21 Nov. 21 Dez. 21 Feb. 22 Aug. 20 Sep. 20 Aug. 21 S
Slide 11: Positive EBIT despite challenging market prices in raw materials, energy and freight
Positive EBIT despite challenging market prices in raw materials, energy and freight Group earnings development Q1 2021 Q1 2022 ∆ Q1 2018 – Q1 2022 in m€ Group turnover m€ 85.9 71.8 -16.5% 10 Gross margin % 45.0 40.9 -4.1 pps 9 8,3 Foreign currency result m€ 0.3 1.0 >100.0% 8 7 EBIT m€ 8.3 2.7 -68.1
Slide 12: Measures to safeguard ability to deliver led to increase in working capital
Measures to safeguard the ability to deliver in the current crisis situation led to an increase in working capital in m€ Q1 2021 Q1 2022 ∆ Cash flow from operating activities -11.4 -13.7 -2.3 Cash flow from investment activities -0.8 -1.9 -1.1 Cash flow from financing activities -0.1 -0.2 -0.1 Free
Slide 13: Group liquidity development
Measures to safeguard the ability to deliver in the current crisis situation led to an increase in working capital Group liquidity 31/12/2021 vs. 30/03/2022 in m€ +1.9 • Development of turnover led to +1.8 38,1 higher trade receivables compared to the end of 2021. • Negative customer mix effects. •
Slide 14: Our purpose? Happy consumers!
Our purpose? Happy consumers! Better Value for Money Investor Presentation May 2022 14
Slide 15: We call our strategy 'Scaling up success'
We call our strategy “Scaling up success” Focus KPIs 2019 vs. 2021 Growth Profitability 1 • Invest in pre-tested and scalable high ROI consumer advertising Create consumer ✓ on profitable best sellers Revenue growth demand • Launch new products only if margin > average and if supported by pre-tested
Slide 16: Create consumer demand and make brands stronger
1 Create consumer demand and make brands stronger Peer group comparison Marketing spend and EBIT in % of turnover EBIT margin 25,0 P&G1 20,0 15,0 Unilever1 Beiersdorf1 10,0 Leifheit 2021 5,0 Leifheit 2019 0,0 Marketing spend 0 5 10 15 20 25 30 35 40 1 Source: Annual reports 2021 Investor Presentatio
Slide 17: Massive TV advertising investments turned Leifheit & Soehnle into winning brands
1 Our massive investments in TV advertising have turned Leifheit & Soehnle into winning brands Leifheit & Soehnle Leifheit & Soehnle Gross spending for advertising Turnover development Group EBIT m€ m€ m€ 260 256 20.1 40 37 0 18.8 TV 35 240 31 advertising 240 30 works! 0 25 20 220 9.9 0 15 202 10 20
Slide 18: We are successfully expanding our distribution network
2 We are successfully expanding our distribution network Investor Presentation May 2022 18
Slide 19: German heritage products ranked #1 for positive image
2 International expansion: German heritage products are ranked # 1 for consumers in terms of positive image Source: Statista Made-In-Country-Index 2017 • Germany leads the Made-in-Country-Index • The global ranking according to the Made-In-Country-Index shows how positively products “Made in ...” fr
Slide 20: We create a fun, fast, friendly and fearless winning culture
4 We create a fun, fast, friendly and fearless winning culture Investor Presentation May 2022 20
Slide 21: 26% increase in turnover per employee FY 2021 vs. FY 2019
4 26% increase in turnover per employee FY 2021 vs. FY 2019 Group turnover per employee 2018 - 2021 in k€ 267 247 212 209 2018 2019 2020 2021 Investor Presentation May 2022 21
Slide 22: EBIT forecast 2022 confirmed
EBIT forecast 2022 confirmed: further significant increases in procurement costs and supply bottlenecks expected Forecast 2022 Group turnover Slight decrease Turnover Household Slight decrease Turnover Wellbeing Slight decrease Turnover Private Label Slight decrease Group EBIT Significant below prev
Slide 23: Investor Presentation Q1 2022
Investor Presentation Q1 2022
Slide 24: Annex
Annex
Slide 25: Household segment below prior-year turnover, but at a high level
Annex Household segment below prior-year turnover, but at a high level, due to continued large-scale advertising Group turnover by segment Group turnover by segment 3M 2018 – 3M 2022 in m€ Q1 2022 10.6% 86 82.8% Household 100 6.6% Wellbeing 90 69 72 80 9 Private Label 62 64 8 70 7 6 5 60 7 7 6 5 5 5
Slide 26: TV advertising paying off, but war and COVID-19 weigh on consumption
Annex Successful TV advertising campaigns are paying off, but Russia- Ukraine war and effects of COVID-19 weigh on private consumption Group turnover by region Group turnover by region 3M 2018 – 3M 2022 in m€ Q1 2022 100 86 2.7% 12.4% Germany 90 40.2% 2 72 69 Central Europe 80 9 62 64 70 2 Eastern E
Slide 27: 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% Rest of World 3% Kitchen Goods Germany Laundry Care 14% Eastern 44% 38% Turnover by Europe Turnover product 13% by region cat
Slide 28: 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 29: Distribution in all relevant distribution channels
Annex Distribution in all relevant distribution channels Blue Chip client base Distribution channels Turnover 2021 in % (previous year’s figures) Electro Others 3 (3) 5 (6) Cash & Carry 3 (3) Hypermarket Importers/ 26 (27) Exporters 7 (8) Top 10 Customers Turnover 2021: account for 50% Discounters m
Slide 30: Number of employees at a stable level
Annex Number of employees at a stable level Employee development Employees by region 31 Dec 31 Dec 2021 7.9% Private Label Germany 1.200 1,098 1,080 12.9% Wellbeing 38.1% Czech Republic 137 134 Household 1.000 47 France 39 Other countries 800 41.1% 600 914 907 400 200 0 2020 2021 Investor Presentati
Slide 31: Long-term financial overview
Annex Long-term financial overview 2017 2018 2019 2020 2021 Group turnover m€ 236.8 234.2 234.0 271.6 288.3 Profitability ▪ Gross margin % 46.4 43.6 43.1 45.0 42.3 ▪ Cash flow from operating activities m€ 7.2 10.2 15.9 4.0 16.4 ▪ Free cash flow m€ 1.5 3.7 10.1 -5.5 9.6 ▪ EBIT m€ 18.8 13.1 9.9 18.8 2
Slide 32: Long-term financial overview
Annex Long-term financial overview 2017 2018 2019 2020 2021 Per share Net result for the period, EPS2 € 1.35 0.88 0.61 1.32 1.49 Free cash flow € 0.16 0.39 1.06 -0.57 1.00 Dividend € 1.05 1.05 0.55 1.05 1.052 Special dividend € -- -- -- -- -- Investments m€ 7.8 6.6 6.0 9.6 7.3 Depreciation m€ 6.4 6.
Slide 33: 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 34: Committed to shareholder returns
Annex Committed to shareholder returns Long-term dividend development Dividend yield 1 2 Dividend per share / in € 2021: 2.9% 2017: 3.8% 2020: 2.4% 2016: 5.1% 2019: 2.3% 2015: 5.6% 2018: 5.9% 2014: 3.9% 1,50 Dividend proposal 1,00 for 2021: € 1.05 0,50 0,00 1984 1985 1986 1987 1988 1989 1990 1991 19
Slide 35: 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 36: 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 37: 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 38: 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 39: Significant free float and international investors
Annex Significant free float and international investors Shareholder structure May 2022 • 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% 42,82% 4,85% • Employee shares subject to a lock-up period 0,06% 0
Slide 40: Financial calendar and contact
Annex Financial calendar and contact Dates 2022 Contact 25 May 2022 Corporate Communications / Investor Relations Annual General Meeting Phone: +49 2604 977-218 09 Aug 2022 Financial report for the first half-year Email: [email protected] ending 30 June 2022 08 Nov 2022 www.leifheit-group.com Quarterl
Slide 41: 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 Highest Level Germany‘s Best Company fairest companies of Trust 2021 Customer Hotline 2021 July 2021 Jan 2022 Oct 2021 July 2021 Deutschland Test / Focus Money IMWF Institut / FAZ-Insti
Slide 42: Our ESG Principles
Our ESG Principles Read more at our sustainability report 2021 www.leifheit-group.com/en/investor- relations/reports-and-presentations/ Investor Presentation May 2022 43
Slide 43: Aktiengesellschaft Postfach 11 65 D-56377 Nassau
Aktiengesellschaft Postfach 11 65 D-56377 Nassau