Leifheit AG · XETR:LEI
Leifheit — H1 2021 Earnings Presentation
45 slides from Leifheit's earnings presentation, Aug 11, 2021
Slide 1: Investor & Analyst Meeting
Investor & Analyst Meeting 11 August 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 H1 2021
Executive Summary H1 2021 Group turnover up 20% vs last year Germany turnover up > 30% vs last year Soehnle: first time with TV advertising. Turnover up > 20% vs last year EBIT up 55% vs last year Gross margin slightly down from 44.1% to 43.9% Free cash flow soaring to € EUR 10 m Analyst meeting Aug
Slide 4: Good H1 2021 – but effects of COVID-19 pandemic continue to be noticeable
Good H1 2021 – but effects of COVID-19 pandemic continue to be noticeable Good business performance in H1 2021 - Successful TV campaigns for Leifheit and Soehnle - Fast growth in online retail compensates Covid-19 closures of brick & mortar retail Nevertheless, effects of COVID-19 pandemic still cle
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 Analyst meeting August 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 1.50 1,50 Dividend payments 1984 – 2020 1,00 1.00 2020: 1,05 € 0,50 0.50 0,00 0.00 Bonus/special dividend Dividend Strong financial structure Strong long-term stock performance
Slide 7: Double digit growth in FY 2020 and first half 2021
Double digit growth in FY 2020 and first half 2021 Group turnover development in % 20% 22 16% 17 12 7 2% 2 -3 0% 0% -1% -8 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 H1 2021 Analyst meeting August 2021 7
Slide 8: EBIT and Earnings per share significantly up vs year before, Gross margin slightly down
EBIT and Earnings per share significantly up vs year before, Gross margin slightly down yoy H1 2020 H1 2021 ∆ Group turnover €m 130.4 156.3 19.9 % Gross margin % 44.1 43.9 -0.2 pps Foreign currency result €m -0.1 0.5 > 100 % EBIT €m 8.8 13.6 54.9 % EBIT margin % 6.8 8.7 1.9 pps Earnings before taxes
Slide 9: Raw material prices soared – no end of price rally in sight
Raw material prices soared – no end of price rally in sight Polypropylene: +100% Flat steel: +147% Seafreight: +~300% ABS plastics: +80% vs. prev. year vs. prev. year vs. prev. year vs. prev. year EUR/t Aluminium (LME): +54% Stainless Steel: +70% Packaging: +152% Glas plates: +33% vs. prev. year vs.
Slide 10: Measures to improve working capital show effect
Measures to improve working capital show effect, increased stock of top sellers to secure supply chain in € m H1 2020 H1 2021 ∆ Cash flow from operating activities -0.2 13.2 13.4 Cash flow from investment activities -2.4 -2.7 -0,3 Cash flow from financing activities -0.4 -10.3 -9.9 Free cash flow1 -
Slide 11: Dividend payout has been financed from Free cash flow in first half of 2021
Dividend payout has been financed from Free cash flow in first half of 2021 Group liquidity 31.12.2020 vs. 30.06.2021 in € m • No noteworthy effects +3.9 +4.1 +1.3 from aging of receivables in +9.5 connection with COVID-19 -0.8 • Increase in inventories due 38.8 -4.7 -2.9 39.0 planned growth and to
Slide 12: Our purpose? Happy consumers!
Our purpose? Happy consumers! Better Value for Money Analyst meeting August 2021 12
Slide 13: 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 14: 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 H1 2021 5,0 Leifheit 2019 0,0 Marketing spend 0 5 10 15 20 25 30 35 40 1 Source: Annual reports 2020 Analyst meeting A
Slide 15: 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 Analyst meeting August 2021 15
Slide 16: In H1 2021 we again achieved strong results in countries with massive TV spending
1 In H1 2021 we again achieved strong results in countries with massive TV spending Turnover development selected TV markets Group turnover H1 2021 in € m +25% +32% +36% +18% +45% Austria Italy France Czech Republic Ukraine Analyst meeting August 2021 16
Slide 17: 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 H2/2020 & H1/2021 Analyst meeting August 2021 17
Slide 18: 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 31 26 15 16 6 3 1 -4 -4 -4 -14 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 H1 2021 Analyst meeting August 2021 18
Slide 19: Scaled up advertising 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 Q3 2020 focused on Soehnle Page Profi 300 digital kitchen scales, which was awarded with “very good” test result. 27 • TV
Slide 20: We are successfully expanding our distribution network
2 We are successfully expanding our distribution network Permanent listings in 1,500 additional supermarkets in the DACH region and Italy Analyst meeting August 2021 20
Slide 21: International expansion: 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 22: 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 H1 2020 H1 2021 Change turnover Consumer marketing 0.7% 1.7% 5.5% 3.8% 5.6% +1.8 pp ✓ Other marketing 5.4% 4.6% 3.6% 3.5% 2.8% -0.8 pp ✓ R&D 2.3
Slide 23: If growth strategy enabled 10% sales CAGR, temporary sales decline in H2 2021
If growth 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 due to successful growth strategy. Turnover development July - December Leifheit Group in € m - onl
Slide 24: Forecast 2021 unchanged: Turnover and earnings growth
Forecast 2021 unchanged: Turnover and earnings growth Forecast 2021 Group turnover at least +5% Turnover Household at least +6% Turnover Wellbeing at least +7% Turnover Private Label Slight increase Group EBIT 20 – 24 €m Free Cashflow 10 – 14 €m Analyst meeting August 2021 24
Slide 25: Scaling success
ee a SCALING | = SUCCESS is = i y/ @ (« e. : Y = ee & a y
Slide 26: Annex
Annex
Slide 27: Strong growth in Household and Wellbeing segments following large-scale advertising
Annex Strong growth in Household and Wellbeing segments following large-scale advertising Group turnover by segment Group turnover by segment 6M 2020 vs 6M 2021 in € m 6M 2021 10.4% 80.8% Household 200 Private Label 8.8% 156.3 Wellbeing Wellbeing Private Label 150 130.4 16.2 13.8 Household 13.2 11.4
Slide 28: Strong turnover growth in Germany through successful TV advertising campaigns
Annex Strong turnover growth in Germany through successful TV advertising campaigns Group turnover by region Group turnover by region 6M 2020 vs 6M 2021 in € m 6M 2021 80 2.7% 11.3% Germany 70.1 44.8% 70 64.4 Central Europe 60 55.3 53.6 Eastern Europe 50 Rest of the world 41.2% 40 • Growth trend in
Slide 29: 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 14% Eastern 39% 45% Turnover by Europe 11% Turnover product by region cat
Slide 30: 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 31: Fortunately, hypers & discounters stayed open during Covid-19 retail shut-downs
Annex Fortunately, hypers & discounters stayed open during Covid-19 retail shut-downs 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:
Slide 32: 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 Analyst meeting Aug
Slide 33: 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 34: 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 35: 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 36: Committed to shareholder returns
Annex Committed to shareholder returns Long-term dividend development Dividend yield 1 Dividend 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 199
Slide 37: 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 38: 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 39: 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 40: 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 41: Significant free float and international investors
Annex Significant free float and international investors Shareholder structure August 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, Madr
Slide 42: Our ESG Principles: long-lasting products as essential aspect of sustainability
Our ESG Principles: long-lasting products as essential aspect of sustainability 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 durable, long-
Slide 43: 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 44: Financial calendar and contact
Annex Financial calendar and contact Dates 2021 Contact 11 Nov 2021 Corporate Communications / Investor Relations Quarterly statement for the period ending 30 September 2021 Phone: +49 2604 977-218 11 Nov 2021 Investor Conference Call Email: [email protected] 22 - 24 Nov 2021 German Equity Forum www.l
Slide 45: Aktiengesellschaft Postfach 11 65 D-56377 Nassau
Aktiengesellschaft Postfach 11 65 D-56377 Nassau