Somfy SA — Q3 2020 Earnings Presentation
42 slides from Somfy SA's earnings presentation, October 2020
Slide 1: Investor Presentation October 2020
INVESTOR PRESENTATION October 2020 1
Slide 2: Somfy Overview
SOMFY OVERVIEW Investor Presentation 2020 2
Slide 3: Background
BACKGROUND § Growing aspiration of people throughout the world to enjoy safe, healthy and environmentally friendly living spaces § Confirmation of the importance of comfortable and responsible housing underlined by the pandemic and climate change § Addressing the need for comfort, security and effic
Slide 4: Profile
PROFILE § Global leader in opening and closing automation for both residential and commercial buildings (motors, remote controls, sensors, control panels) • Addressing the residential and commercial construction and renovation markets • Compatible with all major existing installations, i.e. blinds,
Slide 5: 50 Years of Innovation and Partnerships
50 YEARS OF INNOVATION AND PARTNERSHIPS MOTORISATION AUTOMATION DIGITALISATION 1969 1987 1st TV campaign 1st subsidiary 2016 2019 2020 1981 1998 2006 2010 2015 2016 Somfy Push – Pull 1st automation Smart ILÔ by Somfy ILMO, Smart & Connexoon Protect Window 1st “all in model 1st Smooth one” security p
Slide 6: Long-Term Growth
LONG-TERM GROWTH Sales growth 1 600,0 1 400,0 1 200,0 1 000,0 800,0 600,0 +6.2% (2) 400,0 ) +7.1% (2 200,0 +4.8% (1) 0,0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Group sales Dooya (1) Average growth over the period (2) Average proforma growth over the period includi
Slide 7: Long-Term Profitability
LONG-TERM PROFITABILITY Change in current operating profit and current operating margin 250 25,0 +€88.5m (+76.1%) between 2005 and 2019 200 20,0 150 15,0 100 10,0 50 Change in 5,0 consolidation Increase in capex Economic crisis and overheads scope 0 0,0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2
Slide 8: Industrial Footprint
INDUSTRIAL FOOTPRINT Poland Sopem - Kraków (production site) France Somfy - Cluses (production site and research centre) China Simu - Gray (production site Dooya - Ningbo and test centre) (production site) LianDa - Zhejiang (production site) Italy Bft - Schio (production site) Way - Galliera Tunisia
Slide 9: Markets
MARKETS § Multitude of growth drivers • Demand for comfort and security • Awareness of climate and energy issues • Widespread adoption of motors and automation • Increased usage due to the boom in connected objects • Growth of new industrialised countries § Synergies between the various distribution
Slide 10: Markets (continued)
MARKETS (continued) Individual housing EMEA 68% of the global motorisation market 37% Americas 63% Asia - Pacific 11% of the global 21% of the global motorisation market Collective housing motorisation market 26% 37% 63% 74% Commercial buildings Parking New build Renovation 10
Slide 11: Markets (continued): Fields of activity
MARKETS (continued) Fields of activity 11
Slide 12: Potential of the interior motorisation market
MARKETS (continued) Potential of the interior motorisation market AMERICAS EMEA ASIA 34 m 58 m 65 m 2m 1.3 m 2.7 m A GROWING MARKET 13% average growth rate between 2010 & 2018 12
Slide 13: Potential of the home automation market
MARKETS (continued) Potential of the home automation (smart home) market 49.5 m 36.8 m North America Europe Average growth rate ($): Average growth rate (€): +24.8% p.a. +23.4% p.a. 22.3 m 12.9 m 2018 2023 2018 2023 13
Slide 14: Markets (continued): home equipment penetration
MARKETS (continued) HEATING ALARMS 10% of homes fitted with LIGHTING 3 products 34% of homes fitted with 8% of homes fitted with 5 light sources 1 alarm SENSORS 29% of homes fitted with 4 sensors GARAGE 511,977 SOMFY 13% of homes fitted with 1 motor CONNECTED HOUSEHOLDS GATE 9% of homes fitted with
Slide 15: Customers and Partners
CUSTOMERS AND PARTNERS Home automation & IT Partners Window & Door Shutter & Awning Partners Partners & KA Removing Comfort and Energy Efficiency YESTERDAY effort TODAY security & Air Quality Handle Motors Exterior & Interior Exterior & Interior automation remote management thanks to radio control s
Slide 16: Sustainable Development
SUSTAINABLE DEVELOPMENT Investor Presentation 2020 16
Slide 17: Core of the Group's Strategy
CORE OF THE GROUP’S STRATEGY ENVIRONMENTAL IMPACT REDUCTION 4 cornerstones of ENGAGEMENT OF OUR EMPLOYEES BETTER WAYS OF LIVING sustainable FOR SOCIETY development CONSUMER CARE ETHICS AND REGULATIONS PERMEATE THESE FOUR CORNERSTONES. 17
Slide 18: Environmental Impact Reduction
ENVIRONMENTAL IMPACT REDUCTION GREEN PRODUCTS Taking action with the eco-design of our products and prioritising materials and components with low greenhouse Green gas emissions Green Suppliers Adopting the principles of the circular Design economy Green + Manufacturing Green Green GREEN OPERATIONS
Slide 19: Environmental Impact Reduction: 2019 Key Figures
ENVIRONMENTAL IMPACT REDUCTION: 2019 KEY FIGURES 50% 61 7.2% in 2 years 88% of Somfy products on sale Somfy product ranges reduction in CO₂ emissions of IT equipment was worldwide at 1 January are certified related to the electricity reused in 2019, 2020 were eco-designed “Act for Green®”, consumpti
Slide 20: Better Ways of Living for Society
BETTER WAYS OF LIVING FOR SOCIETY Supports charities to help combat poor housing, thanks to two levers for action in France and internationally. PEOPLE FINANCE Involving people and adding meaning through an employee • International financial endowment engagement programme - during working hours - in
Slide 21: Better Ways of Living for Society (continued)
BETTER WAYS OF LIVING FOR SOCIETY (continued) Doubling of donations to support access to decent housing through community crowdfunding Є3,413,603 311 14,900 91% donated to charities projects supported donations success rate Through our partners 21
Slide 22: Focus on 2020 HY Results
FOCUS ON 2020 HY RESULTS Investor Presentation 2020 22
Slide 23: Business Continuity Planning (COVID-19)
BUSINESS CONTINUITY PLANNING (COVID-19) Rapid rollout of a set of measures to deal with the crisis and balance the safety of employees with business continuity Operations Workforce Finance • Implementation of a remote • Signing of an agreement between management and the • Reduction of the dividend w
Slide 24: Rollout of Charitable Initiatives (COVID-19)
ROLLOUT OF CHARITABLE INITIATIVES (COVID-19) Stepping up of initiatives to support local non-profit organisations and regional communities during the crisis A COMMITTED COMPANY INCREASED SUPPORT FOR THE “LES PETITES DONATION OF EQUIPMENT TO HELP PIERRES” ENDOWMENT FUND COMBAT THE PANDEMIC support fo
Slide 25: Highlights
HIGHLIGHTS § New structure and new Executive Committee introduced in early January § Abrupt change in environment and reversal of trend midway through the half-year due to the health crisis § Suspension of operations at several manufacturing sites in late March and gradual restart early April § Mass
Slide 26: Key Figures
KEY FIGURES § Sales: €568.9m (-7.5%) § Current operating margin 18.0% (-70 bps) § Net profit: €80.9m (-11.3%) § Cash flow: €117.7m (+0.2%) § Net financial surplus: €325.6m (+€15.1m compared with 31/12/2019) 26
Slide 27: Sales
SALES Data in € millions 30/06/18 30/06/19 30/06/20 Change 2020/19 Sales 586.1 615.1 568.9 -7.5% § Strong growth in January and +2.7% 615.1 +4.9% -7.5% 586.1 February in most markets 568.9 -7.2% like-for-like § Almost universal downturn in mid- Q2 332.0 March due to the severity of the 315.4 +2.1% +
Slide 28: Sales (continued)
SALES (continued) Total -7.2% -3.3% Northern Europe Central Europe (of which Germany) +6.7% (+8.1%) +19.7% Eastern Europe -17.2% France § Central and Eastern Europe held Southern -22.1% Europe up very well -9.3% § Fairly marked decline in the other North -10.3% regions, but all returned to growth Am
Slide 29: Current Operating Result
CURRENT OPERATING RESULT Data in € millions 30/06/19 30/06/20 Change 2020/19 Sales 615.1 568.9 -7.5% Current operating result 114.9 102.6 -10.7% Current operating margin (COR/Sales) 18.7% 18.0% -70 bps COR/Sales § Decline in current operating result 18.7% COR/Sales COR/Sales slightly higher than fal
Slide 30: Condensed Income Statement
CONDENSED INCOME STATEMENT Data in € millions 30/06/19 30/06/20 Change 2020/19 § Expected but contained decline in Sales 615.1 568.9 -7.5% current operating result Current operating result 114.9 102.6 -10.7% § Limited impact of non-recurring Non-recurring operating items (0.7) (0.8) N/S and financia
Slide 31: Update on Dooya
UPDATE ON DOOYA Data in € millions 30/06/19 30/06/20 Change 2020/19 § Slight fall in sales, thanks to a sharp upturn Sales* 89.2 84.9 -4.8% in the second quarter, after a severe decline First quarter 43.0 35.1 -18.2% in the first quarter due to the progression of the health crisis in China and Asia
Slide 32: Overview of Results
OVERVIEW OF RESULTS § Resilience of sales § Limited decline in net profit § Profitability maintained at a high level § Further illustration of the soundness of the business model 32
Slide 33: Condensed Cash Flow Statement
CONDENSED CASH FLOW STATEMENT Data in € millions 30/06/19 30/06/20 Cash flow 117.4 117.7 § Stable cash flow, maintained at a high Change in working capital requirements (39.1) (28.6) level Other cash flows 1.1 0.9 § Limited increase in working capital Net cash flow from operating activities 79.4 90.
Slide 34: Condensed Balance Sheet
CONDENSED BALANCE SHEET Data in € millions 30/06/19 31/12/19 30/06/20 Equity 939.6 1,012.8 1,044.4 Long-term borrowings 54.8 45.0 49.2 Provisions and retirement commitments 38.2 39.1 40.8 § Financial ratios preserved Other non-current liabilities 16.3 17.5 17.6 § Decrease in working capital Permanen
Slide 35: Overview of Financial Position
OVERVIEW OF FINANCIAL POSITION § Major financial ratios preserved § Stable net financial surplus § Availability of authorised credit facilities (€184 million) 35
Slide 36: Focus on 2020 Q3 Sales
FOCUS ON 2020 Q3 SALES Investor Presentation 2020 36
Slide 37: Sales
SALES Data in € millions Q3/20 r 30/9/20 r like-for-like like-for-like Central Europe 73.7 +14.0% 200.6 +9.3% Northern Europe 44.4 +32.0% 114.8 +7.8% § Continuation, with unexpected intensity and strength, of the North America 32.6 +27.2% 82.0 +2.8% recovery seen at the end of the first Latin Americ
Slide 38: 2030 Ambition Vision
2030 AMBITION VISION Investor Presentation 2020 38
Slide 39: Strategic Framework
STRATEGIC FRAMEWORK 2030 AMBITION THE PREFERRED PARTNER FOR WINDOW AND DOOR AUTOMATION Forward-looking in Smart 1 Living 2 Rising value to customers • Supporting the transformation of the building • Putting customers at the centre of the industry organisation • Safeguarding market share while antici
Slide 40: Business Line – A New Segmentation to Manage the Product Ranges
BUSINESS LINE – A NEW SEGMENTATION TO MANAGE THE PRODUCT RANGES Core business Accelerators Add-ons Strengthen leadership in the core Optimise the value proposition and Develop alternative revenue streams. business. business performance. Gain market share and adopt a Innovate, develop brands, digital
Slide 41: Outlook for the 2020 Financial Year
OUTLOOK FOR THE 2020 FINANCIAL YEAR Investor Presentation 2020 41
Slide 42: Outlook for the Year
OUTLOOK FOR THE YEAR § Improved confidence in the Group’s fundamentals and the Ambition 2030 transformation project, notably as a result of the lessons learnt from the pandemic (further demonstration of the importance of the digitalisation of homes and commercial buildings, as they are vehicles for