Leifheit AG · XETR:LEI
Leifheit — 9M 2021 Earnings Presentation
48 slides from Leifheit's earnings presentation, Nov 11, 2021
Slide 1: Investor & Analyst Meeting
Investor & Analyst Meeting 11 November 2021
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 9M 2021
Executive Summary 9M 2021 Group turnover up 12% vs last year Germany turnover up 20% vs last year EBIT up 8.1% vs last year EBIT at € 3.0 m in Q3 affected by distortions in the global supply chains Gross margin down from 44.7% to 42.7% Free cash flow soaring to € 7.1 m Investor and Analyst meeting N
Slide 4: Strong 9M 2021 – but distortions in the global supply chains weigh on EBIT
Strong 9M 2021 – but distortions in the global supply chains weigh on EBIT in the third quarter Good business performance in Q3 2021 - Successful TV campaigns in selected markets - Normalization of consumer behavior compared with the prior-year period, which was significantly affected by COVID-19 -
Slide 5: Leifheit makes top quality household products, designed in Germany
Leifheit makes top quality household products, designed in Germany Profi Floor Wiper CLEAN TWIST Pegasus 150 Linomatic 500 Deluxe 4.7 stars 4.6 stars 4.6 stars 4.5 stars Investor and Analyst meeting November 2021 5
Slide 6: 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 in € 1.50 1,50 Dividend payments 1984 - 2020* 1,00 1.00 0,50 0.50 0,00 0.00 Bonus/special dividend Dividend *2020 Proposal Strong financial structure Strong long-term stock per
Slide 7: Implementation of Scaling up success strategy leads to significant higher level of turnover
Implementation of Scaling up success strategy leads to significant higher level of turnover Group turnover development by quarters in € m >+5% +16% • Q3 2021: Slight decline against the backdrop of prior-year’s Corona 70 special demand boost in Q3 + Q4 58 59 • Compared to pre-pandemic level 59 57 57
Slide 8: Implementation of Scaling up success strategy leads to significant higher level of turnover
Implementation of Scaling up success strategy leads to significant higher level of turnover Group turnover development by quarters in € m 90 86 • Q3 2021: Slight decline against the 80 backdrop of prior-year’s Corona 70 72 70 70 69 special demand boost in Q3 + Q4 70 65 63 62 64 62 • Compared to pre-
Slide 9: Double-digit growth in FY 2020 and 9M 2021
Double-digit growth in FY 2020 and 9M 2021 Group turnover development in % 22 16% 12% 17 12 7 2% 2 -3 0% 0% -1% -8 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 9M 2021 Investor and Analyst meeting November 2021 9
Slide 10: The strategy works. 2019 to 2021 guidance shows CAGRs on turnover and EBIT
The strategy works. 2019 to 2021 guidance shows CAGRs of +11% on turnover and +33% on EBIT Group turnover Group EBIT in € m in € m ~11 % -23 % - 0,4 % CAGR CAGR 22.1 300 CAGR 272 18.8 18.8 237 237 250 234 234 200 13.1 ~33% CAGR 150 9.9 100 50 0 2016 2017 2018 2019 2020 2021e 2016 2017 2018 2019 2020
Slide 11: Bottlenecks and enormous price increases for raw materials and shipping containers
Bottlenecks and enormous price increases for raw materials and shipping containers Polypropylene: +86% Flat steel: +131% Seafreight: +599% ABS plastics: +65% yoy Oct. 2020/2021 yoy Oct. 2020/2021 yoy Oct. 2020/2021 yoy Oct. 2020/2021 Aluminium (LME): +76% Stainless Steel: +77% Packaging: +57% yoy Oc
Slide 12: Operating result (EBIT) increase by 8.1% in 9M 2021 despite burdens in the third quarter
Operating result (EBIT) increase by 8.1% in 9M 2021 despite burdens in the third quarter, gross margin 2 pps down yoy 9M 2020 9M 2021 ∆ Group turnover €m 201.9 226.0 11.9 % Gross margin % 44.7 42.7 -2.0 pps Foreign currency result €m -0.6 0.6 > 100 % EBIT €m 15.4 16.6 8.1 % EBIT margin % 7.6 7.3 -0.
Slide 13: Measures to improve working capital are paying off
Measures to improve working capital are paying off, inventory value up due to procurement price effects in € m Q3 2020 Q3 2021 ∆ Cash flow from operating activities 4.6 11.2 6.6 Cash flow from investment activities -4.9 -4.0 0.9 Cash flow from financing activities -0.5 -10.3 -9.8 Free cash flow1 -0.
Slide 14: Measures to improve working capital are paying off
Measures to improve working capital are paying off, inventory value up due to procurement price effects Group liquidity 1.12.2020 vs. 0.09.2021 in € m • No noteworthy effects +5.8 +0.9 from aging of receivables in +11.5 +0.8 connection with COVID-19 -4.9 38.8 -2.7 • Rise in trade receivables due -4.
Slide 15: Our purpose? Happy consumers!
Our purpose? Happy consumers! Better Value for Money Investor and Analyst meeting November 2021 15
Slide 16: We call our strategy “Scaling up success”
We call our strategy “Scaling up success” Focus KPIs Growth Profitability Level of Completion 1 • Invest in pre-tested and scalable high ROI 2019 2020 2020+ consumer advertising Create consumer on profitable best sellers Concept Realisation Impact Revenue demand • Launch new products only if margin
Slide 17: 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 9M 2021 5,0 Leifheit 2019 0,0 Marketing spend 0 5 10 15 20 25 30 35 40 1 Source: Annual reports 2020 Investor and Anal
Slide 18: In 2020 we tested massive advertising spend in several countries with strong results
1 In 2020 we tested massive advertising spend in several countries with strong results Turnover development selected TV markets Group turnover 2020 in € m +35% +20% +52% +18% +33% Netherlands Belgium Switzerland Poland Romania Investor and Analyst meeting November 2021 18
Slide 19: Scaling-up TV advertising to France and Italy successful in 2021
1 Scaling-up TV advertising to France and Italy successful in 2021 Turnover development selected TV markets Group turnover 9M 2021 in € m +11% +33% +21% +15% +21% Belgium Italy France Czech Republic Poland Investor and Analyst meeting November 2021 19
Slide 20: Encouraged by strong results in TV advertising test countries we took the approach to Germany
1 Encouraged by strong results in TV advertising test countries we took the approach to our #1 market Germany Investor and Analyst meeting November 2021 20
Slide 21: New strategy led to positive turnaround in Germany
1 New strategy led to positive turnaround in Germany away from the recent downward trend Group turnover development in Germany in % 46 36 +20% 26 +15% 16 6 +3% +1% -4 -4% -4% -14 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 9M 2021 Investor and Analyst meeting November 2021 21
Slide 22: Scaling up the approach to Soehnle
1 Encouraged by strong advertising results on brand Leifheit, we scaled up this approach to Soehnle Turnover development Soehnle scales product category in % • Print campaign in H2 2021 focuses on Soehnle Page Profi 300 digital kitchen scale, which was awarded with “very good” test result. 27 • TV c
Slide 23: We are successfully expanding our distribution network
2 We are successfully expanding our distribution network Permanent listings in 1,200 additional supermarkets in the DACH region Investor and Analyst meeting November 2021 23
Slide 24: International expansion: German heritage products are 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-Inde shows how positively products “Made in ...” fro
Slide 25: We need to compensate growing raw material and cargo cost with price increases
4 We need to compensate growing raw material and cargo cost with price increases in order to improve gross margins again % of Group FY 2018 FY 2019 FY 2020 9M 2020 9M 2021 Change turnover Consumer marketing 0.7% 1.7% 5.5% 4.7% 6.5% +1.8 pp ✓ Other marketing 5.4% 4.6% 3.6% 3.8% 2.7% -1.0 pp ✓ R&D 2.3
Slide 26: Illustrative turnover development July - December
If new strategy enabled 10% sales CAGR, then there would be a temporary sales decline in H2 2021 against the backdrop of a Corona special boost in H2 2020. In H2 2022 sales would return to +10% CAGR. Turnover development July - December Leifheit Group in € m -5% +10% +26% 14 18 11 11 +10% +10% Coron
Slide 27: EBIT forecast 2021 adjusted
EBIT forecast 2021 adjusted Forecast 2021 Group turnover at least +5% Turnover Household at least +6% Turnover Wellbeing Slight decrease (prev. at least +7%) Turnover Private Label Slight increase Group EBIT €m 15 – 20 (prev. €m 20 – 24) Free Cashflow €m 4 – 8 (prev. €m 10 – 14) • Free Cashflow fore
Slide 28: Scaling up success
ee a SCALING | = SUCCESS is = i y/ @ (« e. : Y = ee & a y
Slide 29: Annex
Annex
Slide 30: Growth in Household and Wellbeing segments continued following large-scale advertising
Annex Growth in Household and Wellbeing segments continued following large-scale advertising Group turnover by segment Group turnover by segment 9M 2020 vs 9M 2021 in € m 9M 2021 10.4% 80.8% Household 250 Private Label 8.8% 226.0 Wellbeing 201.9 23.6 Wellbeing Private Label 200 22.1 19.8 18.5 Househ
Slide 31: Continued strong turnover growth in Germany through successful TV advertising campaigns
Annex Continued strong turnover growth in Germany through successful TV advertising campaigns Group turnover by region Group turnover by region 9M 2020 vs 9M 2021 in € m 9M 2021 120 2.7% 12.2% Germany 102.0 45.1% 100 Central Europe 90.4 85.0 82.9 Eastern Europe 80 Rest of the world 40.0% 60 • Growth
Slide 32: 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 Kitchen Goods 3% Laundry Care Germany 13% Eastern 39% 45% Turnover by Europe 12% Turnover product by region cat
Slide 33: Our 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 34: Distribution in all relevant distribution channels
Annex Distribution in all relevant distribution channels Blue Chip client base Distribution channels Turnover 2020 in % (previous year’s figures) Electro Others 3 (3) 6 (5) Cash & Carry 3 (3) Hypermarket Importers/ 27 (29) Exporters Top 10 8 (8) Customers Turnover 2020: account for 50% of Leifheit’s
Slide 35: Number of employees at a stable level
Annex Number of employees at a stable level Employee development Employees by region 31 Dec 31 Dec 2020 7.3% Private Label Germany 1.200 12.9% 1,106 1,098 Wellbeing 36.7% Czech Republic 148 137 Household 1.000 France 52 47 Other countries 800 43.1% 600 906 914 400 200 0 2019 2020 Investor and Analys
Slide 36: Long-term financial overview
Annex Long-term financial overview 2016 2017 2018 2019 2020 Group turnover €m 237.1 236.8 234.2 234.0 271.6 Profitability ▪ Gross margin % 47.5 46.4 43.6 43.1 45.0 ▪ Cash flow from operating activities €m 21.8 7.2 10.2 15.9 4.0 ▪ Free cash flow €m 14.3 1.5 3.7 10.1 -5.5 ▪ EBIT €m 22.1 18.8 13.1 9.9
Slide 37: Long-term financial overview
Annex Long-term financial overview 2016 2017 2018 2019 2020 Per share1 Net result for the period, EPS2 € 1.53 1.35 0.88 0.61 1.32 Free cash flow € 1.51 0.16 0.39 1.06 -0.57 Dividend € 1.05 1.05 1.05 0.55 1.05 Special dividend € 0.40 -- -- -- -- Investments €m 7.8 7.8 6.6 6.0 9.6 Depreciation €m 6.2
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 ividend per share / in € 2020: 2.4% 2016: 5.1% 2019: 2.3% 2015: 5.6% 2018: 5.9% 2014: 3.9% 2017: 3.8% 2013: 5.3% 1,50 Dividend for 2020: € 1.05 1,00 0,50 0,00 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
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 Air Humidifier Page Profi + Page Profi 300 Style Sense Compact 300 + Safe 300 Airfresh Hygro 500 Air Purifier Body analysis scales Blood pressure monitors AirFresh Clean 300 Shape Sense Connect 100 + 200 Systo Monitor 200 + 300 and Clea
Slide 42: Leifheit – more than 60 years of passion for housework
Annex Leifheit – more than 60 years of passion for housework 2010 1984 • ale 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 Kle
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 November 2021 • Joachim Loh, Haiger (GER), 10.31% 10.31% • MKV Verwaltungs GmbH, Grünwald (GER), 10.03% 10.03% • Leifheit AG Nassau (GER), treasury shares, 40.76% 4.87% 4.87% • Alantra EQMC Asset Management, SGIIC, SA, Ma
Slide 45: Financial calendar and contact
Annex Financial calendar and contact Dates 2021/2022 Contact 23 - 24 Nov 2021 Corporate Communications / Investor Relations German Equity Forum Phone: +49 2604 977-218 29 March 2022 Annual Report 2021 Email: [email protected] 11 May 2022 Quarterly statement for the period www.leifheit-group.com ending
Slide 46: Our ESG Principles: long-lasting products as essential aspect of sustainability
Our ESG Principles: long-lasting products as essential aspect of sustainability Investor and Analyst meeting Sustainability means for us responsibility towards environment and people, corporate integrity and finally: long-lasting and high-quality products. Environment Social Governance - Providing d
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 Most Valuable Germany‘s Most Sought-after Highest Level Germany‘s Best Company Products & Services of Trust Customer Hotline Sep 2020 Jan 2020 Oct 2020 Aug 2020 Deutschland Test / Focus Money IMWF Institut / F
Slide 48: Aktiengesellschaft Postfach 11 65 D-56377 Nassau
Aktiengesellschaft Postfach 11 65 D-56377 Nassau