Leifheit AG · XETR:LEI
Leifheit — Q1 2024 Earnings Presentation
49 slides from Leifheit's earnings presentation, May 8, 2024
Slide 1: Investor Presentation Q1 2024
Investor Presentation Q1 2024 8 May 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: Leifheit starts 2024 with higher profitability
Executive Summary: Leifheit starts 2024 with higher profitability Group turnover at 65.9 m€ in line with expectations, decline by 6.2% due to base effects in the discounter channel Strong improvement in gross margin by 4.2 pp to 44.7% due to product mix effects and increased efficiency Group EBIT in
Slide 5: Leifheit Group structure
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% 3% Germany Laundry Care 37% 44% Eastern Turnover by Europe Turnover product 14% by region category Q1 20
Slide 6: Consumer climate: recovery at a low level
Consumer climate: recovery at a low level GfK consumer climate index May 2024, Germany • The recovery in consumer sentiment in Germany continued in April. • However, the sentiment is still at an extremely low level and there is still no strong momentum for domestic demand. Investor Presentation May
Slide 7: Group turnover in line with expectations – affected by base effects in the discounter channel
Group turnover in line with expectations – affected by base effects in the discounter channel Group turnover by segment, region in m€ Group Household Wellbeing Private Label Turnover 65.9 55.4 3.9 6.6 • Group turnover down as in m€ expected due to missing discounter promotions, Growth -6.2% -5.2% -7
Slide 8: Continuing strong demand for Leifheit Pegasus standing dryers
Highlights Q1 2024 Continuing strong demand for Leifheit Pegasus standing dryers • Premium dryer Pegasus 150 Solid Slim Black meets the current color trend and is aimed at a target group that places high demands on design and aesthetics • Our marketing campaigns as well as investments in lean and ef
Slide 9: 40 years of Linomatic rotary dryer – 26% turnover growth
Highlights Q1 2024 40 years of Linomatic rotary dryer – 26% turnover growth in Q1 2024 vs. Q1 2023 • Successful international promotions to mark the 40th anniversary of the Linomatic rotary dryer Investor Presentation May 2024 9
Slide 10: Profi Cleaning system campaign resulted in turnover growth
Highlights Q1 2024 Continuing support of the successful campaign with focus on Profi Cleaning system resulted in Turnover growth of ~15 % for the product range in Q1 • Successful Profi campaign including TV commercial led to increased consumer interest • Market shares Mechanical Cleaning Germany: •
Slide 11: Strong E-commerce growth of +11.6% in Q1 2024
Highlights Q1 2024 Strong E-commerce growth of +11.6% in Q1 2024 Distribution channels Turnover Q1 2024 in % (previous year’s figures) Electro Others 3 (3) 7 (6) Hypermarkets 26 (25) • E-commerce one of the fastest growing channel Discounter with +11.6% in Q1 2024 4 (12) • Expanding our D2C capabili
Slide 12: Q1 2024 Financials
Q1 2024 Financials
Slide 13: Group turnover Q1 2024 in line with expectations
Financials Q1 2024 Group turnover Q1 2024 in line with expectations Group turnover development by quarters in m€ 300 +6.2% +16.0% +2.7% • Base effects in the discounter channel leads to yoy turnover 63 -12.8% 250 decline 70 • Expansion of distribution in 58 58 European core markets and growth 59 58
Slide 14: Turnover decline across all segments in Q1 2024 as expected
Financials Q1 2024 Turnover decline across all segments in Q1 2024 as expected, but on track for 2024 turnover forecast Group turnover by segment Group turnover by segment in m€ Q1 2024 in % 10.0% 80 Household 70 66 5.9% 70 Wellbeing 8 7 Private Label 60 4 4 50 84.1% 40 • Household segment down by -
Slide 15: Germany strongly affected by missing discounter promotions
Financials Q1 2024 Germany strongly affected by missing discounter promotions/ all other sales regions with positive development Group turnover by region Group turnover by region in m€ Q1 2024 in % 80 2.8% 70 66 14.1% 36.9% Germany 70 1 8 2 Central Europe 60 9 Eastern Europe 50 30 Rest of world 46.2
Slide 16: EBIT increased due to improved gross margin, despite rising sea freight costs
Financials Q1 2024 EBIT increased due to improved gross margin, despite rising sea freight costs Group earnings development Q1 2023 Q1 2024 ∆ Q1 2020 – Q1 2024 in m€ Group turnover m€ 70.3 65.9 -6.2% Gross margin % 40.5 44.7 4.2 pps Foreign currency result m€ 0.4 0.3 -23.1% 12 EBIT m€ 2.3 3.4 45.5%
Slide 17: Steadily increasing gross margins
Financials Q1 2024 Steadily increasing gross margins +4.2 pps Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Gross Margin % 39.7 40.5 41.3 42.6 44.3 44.7 • Improvement in gross margin to 44.7% in Q1 2024 (Q1 2023: 40.5%) because of - positive product mix effects due to the focus on effective campai
Slide 18: Declines in procurement costs in 2023, but raw material and energy prices remain high
Financials Q1 2024 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. +43% vs. 2020* (+2% vs. previous month) • Some raw material costs (esp. PP and Cotton) with upward trend • Price le
Slide 19: Positive free cash flow of 1.3 m€ after -3.4 m€ in Q1 2023
Financials Q1 2024 Positive free cash flow of 1.3 m€ after -3.4 m€ in Q1 2023 in m€ Q1 2023 Q1 2024 ∆ Cash flow from operating activities -2.1 1.4 3.5 Cash flow from investment activities -1.3 -0.4 0.9 Cash flow from financing activities -0.1 -0.2 -0.1 Free cash flow1 -3.4 1.0 4.4 in m€ 31/03/2023 3
Slide 20: Increase in Group liquidity
Financials Q1 2024 Increase in Group liquidity Group liquidity 31/12/2023 vs. 31/03/2024 in m€ 1.9 2.2 2.1 41.3 11.8 42.1 • Free cash flow increased -0.5 -0.2 in Q1 2024 to 1.0 m€ (Q1 2023: -3.4 m€) -15.3 • Positive effects from the -1.2 stronger increase in liabilities, the lower increase in receiv
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: Share Buy-back program to enable shareholders to participate on good liquidity situation
Share Buy-back program to enable shareholders to participate on good liquidity situation • Management Board resolved share buy-back program with a total volume of up to 8.5 m€ • Expected term from approx. 13 May 2024 until approx. 11 December 2024 • Shares will be acquired via XETRA trading on the F
Slide 23: Outlook 2024
Outlook 2024
Slide 24: 2024: Revision of our corporate strategy, focusing on growth and cost efficiency
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 25: 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 26: 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 May 2024 26
Slide 27: Innovation – On top volumes through Black Line ironing boards
Outlook 2024 Innovation – On top volumes through Black Line ironing boards mit Bügeltischen Black Classic M Black Line Air Board Black Line Sales volume* Q1 2023 vs. Q1 2024 Sales Volume Q1 2023 vs. Q1 2024 +26% +116% 2023 Q1 2024 Q1 2023 Q1 2024 Q1 Classic M Basic Classic M Black Air Board M Compac
Slide 28: New Product innovation cleaning is coming up
Outlook 2024 New Product innovation cleaning is coming up Investor Presentation May 2024 28
Slide 29: Resilience: Managing strained supply chains in production and logistics
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 regio
Slide 30: 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 yea
Slide 31: Annex
Annex
Slide 32: Leifheit is financially solid and pays reliable dividends to shareholders
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 33: 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 34: 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 May 2024 35
Slide 35: Our European production and logistic footprint ensures efficient and reliable supply
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 36: New central European logistics hub
Annex 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 to our custo
Slide 37: 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 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 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 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 May
Slide 42: 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 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 May 2024 • 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 0
Slide 45: 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 46: 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 May 2024 47
Slide 47: Leifheit is frequently top company in home appliances and household goods 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 48: Financial calendar and contact
Annex Financial calendar and contact Financial calendar 2024 Contact 13-15 May 2024 Corporate Communications / Investor Relations Equity Forum – Spring Conference, Frankfurt Phone: +49 2604 977-218 29 May 2024 E-Mail: [email protected] Annual General Meeting 8 August 2024 Financial report for the peri
Slide 49: Aktiengesellschaft Postfach 11 65 D-56377 Nassau
Aktiengesellschaft Postfach 11 65 D-56377 Nassau