Somfy SA — FY2023 Earnings Presentation
30 slides from Somfy SA's earnings presentation, Mar 7, 2024
Slide 1: Presentation of 2023 Annual Results
PRESENTATION OF 2023 ANNUAL RESULTS 7 March 2024
Slide 2: Highlights
HIGHLIGHTS Business slowdown that continued throughout 2023 within a still challenging environment, given macroeconomic and geopolitical tensions and the crisis in the property market and construction sector Decline in both sales and profits after years of exceptional activity Indexation of fi
Slide 3: 2023 Key Figures
2023 KEY FIGURES* €1,447 m 13.9% €172 m -5.6% vs. 18.2% in 2022 -27.9% €114 m SALES CURRENT OPERATING NET PROFIT NET FINANCIAL DEBT MARGIN €224 m -34% 25.3% -18% +141.9% vs. 2019 vs. 2019 FREE CASH FLOW** GHG*** GHG*** OF WOMEN IN EMISSIONS EMISSIONS MANAGEMENT SCOPES 1&2**** SCOPE 3***** * In real
Slide 4: Update on market environment
Update on market environment PRESENTATION OF 2023 ANNUAL RESULTS
Slide 5: Macroeconomic and Geopolitical Environment
MACROECONOMIC AND GEOPOLITICAL ENVIRONMENT Unstable environment overall, which calls for caution: macroeconomic tensions, wars involving Ukraine and Inflation trends and Israel/Hamas, property market crisis with a lower volume forecasts of transactions against a backdrop of higher interest rates
Slide 6: Market Trends
MARKET TRENDS RAMPING UP OF DIGITALISATION CARBON FOOTPRINT & SUSTAINABILITY FOCUS ON THE HOUSING MARKET Wide variety of promising uses, both from Reduction and monitoring of energy Major challenges related to renovation and a productivity and customer relations point performance sustainable t
Slide 7: Breakdown of 2023 annual sales by geographic region
Breakdown of 2023 annual sales by geographic region PRESENTATION OF 2023 ANNUAL RESULTS
Slide 8: Sales by Geographic Region – FY 2023
SALES BY GEOGRAPHIC REGION – FY 2023 Total -5.9% Northern -3.4% Europe Severe crisis in the construction sector in Central Europe many regions due to high inflation and (inc. Germany) interest rates -15.2% (-14.9%) Eastern Europe Increased competitive pressure, -2.2% -16.9% France particularly o
Slide 9: Sales by Geographic Region – H1 2023
SALES BY GEOGRAPHIC REGION – H1 2023 Total -11.3% Northern -8.5% Europe High comparison basis with a first half of Central Europe 2022 up 4.3% (inc. Germany) -16.5% Slowdown in residential market in many (-16.0%) Eastern Europe countries -5.7% -29.3% France Regions posting the biggest declines
Slide 10: Sales by Geographic Region – H2 2023
SALES BY GEOGRAPHIC REGION – H2 2023 Total +0.7% Northern +3.5% Europe Sales improved over the second half Central Europe (inc. Germany) Return to growth in France, Southern -13.8% Europe and Northern Europe (-13.5%) -0.3% Eastern Europe +2.3% France Southern +4.8% Europe -3.6% North -3.6% Ameri
Slide 11: Analysis of 2023 financial and non-financial results
Analysis of 2023 financial and non-financial results PRESENTATION OF 2023 ANNUAL RESULTS
Slide 12: Sales
SALES Business impacted by sector-specific economic difficulties Decline in sales following the exceptional Covid -5.9% like-for-like years Sales in real terms (€ m) H1 H2 over the year 1,478 1,532 1,447 -5.6% 1,200 1,257 +17.6% +3.7% -96 +4.7% -5.6% 21 5 -20 15 -10 +0.1% +0.7% 2019 2020 2021 20
Slide 13: Current Operating Result
CURRENT OPERATING RESULT COR/Sales 18.2% Current operating result down due to the decline in sales, not offset by structure costs control Significant decline in current operating margin, -50 exacerbated by unfavourable Forex impacts COR/Sales 14.9% -10 278 3 -6 COR/Sales 13.9% -18 4 215 201 2022
Slide 14: Update on Dooya
UPDATE ON DOOYA Data in real terms (€ millions) 2022 2023 Change 2023/22 Sales* 299 243 -19.0% Decline in sales over the financial year, particularly Current operating result 35 31 -11.2% exports Current operating margin 11.6% 12.7% +112 bps Lower current operating result but higher current (COR
Slide 15: Financial Position
FINANCIAL POSITION Free Cash Flow up sharply by 141.9% thanks to better cash management with stricter control of working capital requirements Financial position remains sound with a low Net Financial Debt (NFD)/EBITDA ratio, below 1x €350 million credit facility repayable in 2027, undrawn at t
Slide 16: Sustainable Development Roadmap
SUSTAINABLE DEVELOPMENT ROADMAP PLANET PEOPLE PROSPERITY ENVIRONMENTAL IMPACT DIVERSITY & INCLUSION RESPONSIBLE PURCHASING OF OPERATIONS Percentage of women SUPPLY CHAIN TRANSPARENCY 25.3% Reduction in GHG* emissions -34% vs. 2019 in management Rate of signature of the responsible in 2023 100% Sco
Slide 17: Progress update on the 3-year plan 2025 One Way
Progress update on the 3-year plan 2025 One Way PRESENTATION OF 2023 ANNUAL RESULTS
Slide 18: A 3-year plan based on 3 pillars
2025 ONE WAY A 3-year plan based on 3 pillars Customers SOMFY Teams Performance Reliable supply chain Skills’ development Robust & sustainable growth Innovative & sustainable offers Smart ways of working Markets’ development Rich & unique customer experience Diversity & Inclusion Excellence in execu
Slide 19: New and unique connected offers
CUSTOMERS 2025 ONE WAY New and unique Reliable supply chain connected offers Innovative & sustainable offers Rich & unique customer experience To address the challenges of reducing the carbon footprint, energy consumption and digitalisation New range of Zigbee 3.0 products New range of bi-directio
Slide 20: New and unique connected offers
CUSTOMERS 2025 ONE WAY New and unique Reliable supply chain connected offers Innovative & sustainable offers Rich & unique customer experience To address the challenges of reducing the carbon footprint, energy consumption and digitalisation RS100 Solar io Within a fast-growing solar market Amy® su
Slide 21: New Somfy pro website
CUSTOMERS 2025 ONE WAY New Somfy pro website Reliable supply chain To improve the digital experience for our Innovative & sustainable offers professional customers Rich & unique customer experience A single access portal for all services and containing all Somfy information Easy access to any info
Slide 22: A portfolio of brands redesigned to be closer to customer needs
CUSTOMERS 2025 ONE WAY A portfolio of brands Reliable supply chain redesigned to be even Innovative & sustainable offers Rich & unique customer experience closer to customer needs while creating a virtuous ecosystem A variety of solutions offered to our professional customers and consumers, in lin
Slide 23: A new partnership
CUSTOMERS 2025 ONE WAY A new partnership Reliable supply chain To address market challenges and help Innovative & sustainable offers reduce the impacts of climate change Rich & unique customer experience Optimising thermal comfort for consumers Expanding the ecosystem with Netatmo’s Smart Weather St
Slide 24: Rolling out the SOMFY culture
SOMFY 2025 ONE WAY TEAMS Rolling out the SOMFY Skills’ development culture Smart ways of working To strengthen employees’ sense of belonging Diversity & Inclusion and engagement Listening to customers, supporting them with their challenges to satisfy their requirements. Doing everything to understan
Slide 25: The Group's Executive Committee
PERFORMANCE 2025 ONE WAY The Group’s Executive Robust & sustainable growth Committee Markets’ development To support the roll-out of the 2030 Excellence in execution Ambition strategic roadmap Pierre Valérie Tobias Sébastien Bénédicte Jean- Bruno Bruno Guillaume Ribeiro Dixmier Schaper Picot Simond
Slide 26: Digitalisation of processes
PERFORMANCE 2025 ONE WAY Digitalisation Robust & sustainable growth of processes Markets’ development SAP roll-out Excellence in execution Improving the efficiency of our internal processes and our operational excellence through a unified digital infrastructure to better serve our customers. In 20
Slide 27: Outlook for the 2024 financial year
Outlook for the 2024 financial year PRESENTATION OF 2023 ANNUAL RESULTS
Slide 28: 2024 Outlook
2024 OUTLOOK Environment that remains uncertain and unstable in 2024 Continued roll-out of the strategic plan and investments in structuring projects while pursuing operational excellence and process efficiency against a backdrop of budgetary restraint Long-term positive trends through the pos
Slide 29: Appendix
Appendix PRESENTATION OF 2023 ANNUAL RESULTS
Slide 30: Definitions
DEFINITIONS In real terms: at actual consolidation method and scope, and actual exchange rates On a like-for-like basis: at constant consolidation method and scope, and constant exchange rates Current operating margin (COR/Sales): ratio of current operating result to sales Net financial debt