Leifheit AG · XETR:LEI
Leifheit — Q1 2021 Earnings Presentation
41 slides from Leifheit's earnings presentation, May 11, 2021
Slide 1: Investor & Analyst meeting May 11, 2021
Investor & Analyst meeting May 11, 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 Q1 2021
Executive Summary Q1 2021 Group turnover up 25.5% to € 86.2 m Germany growing Q3 +33%, Q4 +41%, Q1 +38% Soehnle up 27.5% with effective TV campaign EBIT almost doubled yoy: up 96% to € 8.3 m Gross margin improved from 44.7% to 45.2% No cash flow improvement yet due to strongly growing turnover and h
Slide 4: Very good Q1 2021 – but effects of COVID-19 pandemic continue to be noticeable
Very good Q1 2021 – but effects of COVID-19 pandemic continue to be noticeable Very good start to the 2021 financial year - Successful start of new TV campaigns for Leifheit and Soehnle - Fast growth in online retail compensates Covid-19 closures of brick & mortar retail Nevertheless, effects of COV
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 May 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 0,50 0.50 0,00 0.00 Bonus/special dividend Dividend *2020 Proposal Strong financial structure Strong long-term stock performa
Slide 7: New strategy transforms Leifheit into a growing business
New strategy transforms Leifheit into a growing business Group turnover development in % 40 +28.4% +25.5% 30 +22.6% 20 +6.8% +7.9% 10 +2.3% 0 -0.1% -1.1% -0.1% -10 -20 FY 2016 FY 2017 FY 2018 FY 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Analyst meeting May 2021 7
Slide 8: EBIT and Earnings per share almost doubled vs year before
EBIT and Earnings per share almost doubled vs year before. Gross margin further improved Q1 2020 Q1 2021 ∆ Group turnover €m 68.7 86.2 25.5 % Gross margin % 44.7 45.2 0.5 pps Foreign currency result €m -0.2 0.3 > -100 % EBIT €m 4.3 8.3 96.0 % EBIT margin % 6.2 9.7 3.5 pps Earnings before taxes (EBT)
Slide 9: Growth-related higher Working Capital affected liquidity
Growth-related higher Working Capital affected liquidity in € m Q1 2020 Q1 2021 ∆ Cash flow from operating activities -9.6 -11.4 -1.8 Cash flow from investment activities -1.6 -0.8 0.8 Cash flow from financing activities -0.2 -0.1 0.1 Cash and cash equivalents at the end of reporting period 39.0 26.
Slide 10: Negative cash flow behind turnover growth, increased inventories and seasonal effects
Negative cash flow behind turnover growth (trade receivables), increased inventories (prepare future growth and secure supplies during pandemic) and seasonal effects Group liquidity 31.12.2020 vs. 31.03.2021 in € m 1.9 • Increase in trade receivables 5.8 as a result of turnover growth • No noteworth
Slide 11: Our purpose? Happy consumers!
Our purpose? Happy consumers! Better Value for Money Analyst meeting May 2021 11
Slide 12: 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 13: 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 Q1 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 M
Slide 14: 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 May 2021 14
Slide 15: In Q1 2021 we again achieved strong results in countries with massive TV spending
1 In Q1 2021 we again achieved strong results in countries with massive TV spending Turnover development selected TV markets Group turnover Q1 2021 in € m +31% +46% +54% +24% +22% Austria Italy France Czech Republic Romania Analyst meeting May 2021 15
Slide 16: 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 & Q1/2021 Analyst meeting May 2021 16
Slide 17: 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 % 40.7 38.3 36 32.8 26 16 6 2.5 0.7 -4 -4.1 -0.4 -2.3 -4.4 -14 FY 2016 FY 2017 FY 2018 FY 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Analyst meeting May 2021 17
Slide 18: Encouraged by strong advertising results on brand Leifheit, we scaled up this 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 51.6 with “very good” test result. 50,
Slide 19: 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 Analyst meeting May 2021 19
Slide 20: While spending more on consumer advertising, we continue to drive down all other cost
4 While spending more on consumer advertising, we continue to drive down all other cost % of Group FY 2018 FY 2019 FY 2020 3M 2020 3M 2021 Change turnover Consumer marketing 0.7% 1.7% 5.5% 5.0% 6.5% +1.5 pp ✓ Other marketing 5.4% 4.6% 3.6% 3.8% 3.6% -0.2 pp ✓ R&D 2.3% 2.4% 2.1% 1.7% 1.6% -0.1 pp ✓ L
Slide 21: Forecast 2021 Turnover and earnings growth
Forecast 2021 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 May 2021 21
Slide 22: Scaling up success
ee a SCALING | = SUCCESS is = i y/ @ (« e. : Y = ee & a y
Slide 23: Annex
Annex
Slide 24: 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 3M 2020 vs 3M 2021 in € m 3 M 2021 10.0% 80.9% Household 100 Private Label 9.1% 86.2 Wellbeing Wellbeing Private Label 8.6 68.7 7.9 5.6 Household 6.2 50 • Tur
Slide 25: 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 3M 2020 vs 3M 2021 in € m 3M 2021 45 2.4% 10.8% Germany 39.7 40.7% 40 35.1 Central Europe 35 28.7 Eastern Europe 30 28.2 Rest of the world 46.1% 25 20 • Growth trend
Slide 26: 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 2% Laundry Care Germany 13% 36% Eastern Europe 46% Turnover by Turnover 10% product by region cat
Slide 27: Our European production footprint ensured reliable supply to customers
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 28: 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 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: accou
Slide 29: 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 May
Slide 30: 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 31: 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 Dividend2 € 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 32: 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 33: Committed to shareholder returns
Annex Committed to shareholder returns Long-term dividend development Dividend yield 1,2 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 €2 1,00 0,50 0,00 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993
Slide 34: 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 35: 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 36: 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 37: 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 38: Significant free float and international investors
Annex Significant free float and international investors Shareholder structure May 2021 • Joachim Loh, Haiger (GER), 10.31% 10.31% • MKV Verwaltungs GmbH, Grünwald (GER), 10.03% 10.03% • Leifheit AG Nassau (GER), treasury shares, 4.87% 4.87% • Alantra EQMC Asset Management, SGIIC, SA, Madrid (ES), 4
Slide 39: Financial calendar and contact
Annex Financial calendar and contact Dates 2021 Contact 2 Jun 2021 Corporate Communications / Investor Relations Annual General Meeting 11 Aug 2021 Phone: +49 2604 977-218 Financial report for the first half-year ending 30 June 2021 Email: [email protected] 11 Nov 2021 Quarterly statement for the peri
Slide 40: 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 41: Aktiengesellschaft Postfach 11 65 D-56377 Nassau
Aktiengesellschaft Postfach 11 65 D-56377 Nassau