INVESTOR DAYS – 21-23 Nov, 2018
GENERAL PRESENTATION Raymond SU 1 CONTENTCONTENT
1. China macro-economics 2. SUPOR business overview 3. Product and market competition 4. Main levers
2 Sound macro-economic backdrop
Average growth rate over 4 years GDP growth driven by domestic at 6.8% consumption
GDP growth rate Consumption contribution to GDP growth 8.0% 100% 79% 80% 7.5% 67% 60% 59% 60% 7.0% 6.9% 6.9% 6.7% 6.7% 40%
6.5% 20%
6.0% 0% 2015 2016 2017 2018.1-9 2015 2016 2017 2018H1
Source: State Statistical Bureau 3 Consumption upgrade driven by strong structural fundamentals
Fast-growing middle-class Stronger consumption-ability by young generation Household number： Consumption in city (million) (tril.USD) 100% 100% 90% 7% 90% 80% 80% 33% 43% 44% 70% 54% 70% 52% 60% 60% 50% 50% 40% 40% 30% 91% 30% 67% 54% 56% 20% 42% 20% 48% 10% 10% 0% 0% 2010 2016 2020E 2011 2016 2021 Mass class Middle Class Wealthy Class Old Generation Young Generation Monthly disposable Monthly disposable Monthly disposable Consumer age 35+ Consumer age 18 - 35 income: income: income: < 12 TCNY 12~26 TCNY > 26 TCNY Source: McKinsey research 2017 Source: BCG research 2017 4 Robust momentum in the cookware market
RSP Mil. RMB
25000 2014-17 CAGR 7%
20000 19,459 18,102 16,862 16,035 15000
10000
5000
0 2014 2015 2016 2017
Source: GFK 2014-2017 5 Robust momentum in the small kitchen electric market
RSP Mil. RMB 2014-17 CAGR 6% 60,000 55,876 52,134 48,773 50,000 46,652
40,000
30,000
20,000
10,000
- 2014 2015 2016 2017
Source: CMM 2014-2017 6 CONTENTCONTENT
1. China macro-economics 2. SUPOR business overview 3. Product and market competition 4. Main levers
77 Where a Fascinating Journey begun…
Yuhuan Pressure Cooker Factory, 1987 8 Major milestones
Zhejiang Supor, 1994 Acquired three state owned Entered SDA, 2002 enterprises in Wuhan, 1996
Listed in Alliance with Entered South East Asia, 2008 SZ Stock Exchange, 2004 Groupe SEB, 2006 9 A decade of outstanding performances Supor total sales MRMB
16,000 YoY Sales +28% 14,187 14,000 13,394 2007-17 CAGR 17% 11,947 12,000 10,910 10,497 10,000 9,535 8,383 8,000 7,126 6,889
6,000 5,622 4,116 3,622 4,000 2,934
2,000
0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017.1-92018.1-9
Note: Chinese GAAP全称 10 A decade of outstanding performances Supor net profit MRMB
1,400 1,308 YoY +23% 1,200 1,134 1,103 2007-17 CAGR 20% 987 1,000 897
800 765 641 600 525 515 443 400 355 299 215 200
0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017.1-92018.1-9
Note: Chinese GAAP 11 A decade of outstanding performances Supor domestic sales MRMB
12,000 YoY +27% 10,212 10,359 10,000 2007-17 CAGR 18%
8,436 8,183 8,000 7,677
6,213 6,000 5,261 4,651 4,539 4,000 3,668 2,820 2,508 1,980 2,000
0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017.1-92018.1-9
Note: Chinese GAAP 12 A decade of outstanding performances Supor export group sales MRMB 4000 3,715 3500 YoY +11% 3,188 3,131 2,961 3000 2007-17 CAGR 36% 2,689 2,678 2,458 2500
2000 1,784 1,619 1500 1,095 1000 658 446 500 169 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017.1-9 2018.1-9 13 A decade of outstanding performances Cookware sales MRMB
6,000
5,110 5,000 2007-17 CAGR 11% YoY Sales +13% 4,535 4,481 4,052 4,220 4,000 3,701 3,728 3,359 3,113 3,000 2,893 2,195 1,900 2,000 1,793
1,000
0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017.1-9 2018.1-9
Note: Chinese GAAP 14 A decade of outstanding performances Electric appliance sales MRMB
10,000 YoY Sales +28% 9,077 9,000 8,873
8,000 7,466 2007-17 CAGR 23% 6,945 7,000 6,375 6,000 5,482
5,000 4,682
4,000 3,767 3,777
3,000 2,729 1,722 1,921 2,000 1,140 1,000
0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017.1-9 2018.1-9
Note: Chinese GAAP 15 2017 sales breakdown
Sales by Business Unit Sales by Business Type
Electric Cookware Export non-SEB appliances 36% Group Sales 2% 64% 28% Domestic 70%
Note: Electric appliances include small kitchen appliances business unit, and large kitchen appliance business unit 16 2007-2017 market capitalization & share price
Market Capitalization Share Price 50.00
40 40.00
30 30.00
20 20.00
10 10.00
0 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018,10
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018.10
Share Price 11.05 5.53 9.50 14.30 10.11 8.41 10.14 12.19 20.23 25.81 39.43 48.62 /year-end
Market Cap(BRMB)/ 10.6 5.5 9.2 13.8 9.6 7.9 9.2 10.8 17.6 22.1 33.2 39.9 year-end 17 CONTENTCONTENT
1. China macro-economics 2. SUPOR business overview 3. Product and market competition 4. Main levers
1818 A decade of category expansion in cookware
2007 2017 5 categories in Cookware 4 new categories in Cookware
1 category in Kitchenware 5 new categories in Kitchenware
19 Leadership market positions in cookware
Frypan
Pressure Wok Cooker
N° 1 Set Pot
Pottery Pot Steamer 20 Strong momentum in kitchenware
Drinkware Knife Lunch Box
Spatula Easy Storage Box
Kitchen Tools
21 Undisputed cookware market leader
Widening the gap vs ASD
2.3 X 2.4 X 2.3 X 2.2 X 2.0 X 2.7 X 1.9 X 2.4 X 1.6 X
2011 2012 2013 2014 2015 2016 2017 2017H1 2018H1
SUPOR ASD Source: ASD Annual Report 22 A decade of category expansion in SDA
2007 2017 5 categories in small 9 new categories in small Kitchen Electrics Kitchen Electrics
6 new categories in home & linen care (since 2014)
23 Outstanding market positions in kitchen electrics Induction Hob Rice N° 1 Cooker N° 2
Electrical Pressure Cooker Slow Baking Cooker Pan
Kettle Blender
N° 3 Hot Soymilk Pot Maker 24 Sharply strengthened market shares over the 10-year period in Kitchen Electrics
Market Share No.1 No.2 No.3 No.4 No.5 (2017/2007) Midea Supor Joyoung Panasonic Philips 42.71% 33.12% 12.15% 2.78% 1.31% RC +3.76% +18.11% NA -4.01% +0.09% Midea Supor Joyoung MAZUBA Galanz 50.21% 25.06% 18.24% 0.91% 0.60% IH +14.45% +14.26% +8.22% NA -4.19% Midea Supor Joyoung LUBY Galanz 44.62% 36.41% 13.89% 0.61% 0.34% EPC +3.36% +19.43% +12.52% +0.48% NA Midea Supor Joyoung Gelaide Philips 40.12% 23.25% 16.69% 3.00% 1.74% Kettle +9.38% +20.58% +11.92% -0.74% NA Joyoung Midea Supor Philips ASD 63.59% 20.10% 14.82% 0.42% 0.22% SMM -29.06% +20.01% NA NA NA Midea Supor Joyoung Panasonic Philips 41.69% 29.28% 19.18% 1.14% 0.89% 5 in Total +8.67% +18.69% +4.74% -0.68% +0.56%
Source: CMM, Dec 2007&2017 25 Strong momentum for young categories
Garment Air Purifier Steamer Vacuum Cleaner
N° 1
Mite Lint Iron Predator Remover
26 Important inroads in the Large Kitchen Appliance business
Gas Stove Range Hood Water Purification & related
Steam Sterilizer Oven Oven Steam Box
27 CONTENT
1. China macro-economics 2. SUPOR business overview 3. Product and market competition 4. Main levers
2828 Supor’s key success factors
Strong and continuous innovation
Sustained branding investment
Strong distribution partnership and retail execution
Continuously improved competitiveness
A group of highly motivated and committed people
29 Strong and continuous innovation
Solid innovation model adapting to Chinese demand, based on strong local consumer insights
Over 1,000 new products in 2017
Average product development cycle – 6 months
Holds 4,039 patents, out of which 244 are invention patents
Total 308 R&D engineers
384 MRMB R&D spending in 2017
30 Driving the transformation of wok
Alu Ceramic Fumeless Anti-Rust Iron Wok ThermoSpot Ti Pro Wok Wok 31 Driving the transformation of rice cookers’ inner pot
Spherical inner pot 1.0 Spherical inner pot 2.0 32 Cross-fertilization with Groupe SEB
Tefal Thermospot Pan Supor Thermospot Wok
Red dot as a temperature indicator, letting you know when your pan is preheated to the right temperature Control oil temperature to avoid smoke 33 Transforming a Chinese iconic product into a global success story
Electric Pressure Cooker Cookeo Multi-Cooker
34 Supor’s key success factors
Strong and continuous innovation
Sustained branding investment
Strong distribution partnership and retail execution
Continuously improved competitiveness
A group of highly motivated and committed people
35 Drive brand to be more relevant to younger generation
Product packaging upgrade New celebrity – Ning Chang
• Famous Taiwan actress • Good education background and sporty Store image (SI) upgrade • To support new category growth： Drinkware, LKA, HPC
36 Major campaigns in 2017 - Vacuum High-Speed Blender
Integrate 8 mainstream channels True vacuum, True nutrition Colors can never lie Spread to 614M+ people （8 TVs） TV + 259% HSB sales value （5 Smart TVs） OTT 2017FY YoY
（31 railway stations） （5 trains） OOH 605K units （3 major video platforms） OTV HSB Sales Volume 2017FY （Wechat + Feed Ads） Mobile
（KOL：Wechat + Weibo） Social
（2500+ online&offline stores） Store • First time to integrate 4 platforms (Tmall, JD, Suning, Gome) to exchange resources （3 TV live broadcast）Tmall 11.11party • First time to advertise on Tmall 11.11 evening party
Source: Agency & BU , Dec 2017 37 Major digital campaign in 2018 - Low noise High-Speed Blender
Data Marketing Practice of SUPOR Low Noise High-Speed Blender: Increase 90% CTR (in Market) by Focusing TA through Programmatic Buying
Data Resource Consumer profile Advertising CTR Avg
• Female In-depth Analysis Basic • Age：28-48 Info DMP GroupM - Media Use of TA •Social、Video、Entertainment • Lifestyle、Food、News App Use 1.81%
APPs • Food& Beverage、Health & - Based on Integration Fitness、Family & Child Care、 Video、Edu、House& Home、 of app SDK Interests News、Social、Sports、Vogue +90% above market On& Off Line Purchase • Chonging、Chengdu、Beijing、 level (0.95%) - Purchase Record Jinan、Xi’an、Nanjing、Tianjin、 - Product Type Region Zhengzhou、Shenyang、Dalian - ATV
• Media、Joyoung、Aux、 Philips、Vitamix Location Brand Preference - Where - Frequency
Notes：Programmatic Buying Data in Silent High-Speed Blender Project, Oct 15- 21, 2018，(Only 7 days Data, FYI) 38 Supor’s media spending going digital to drive relevancy and efficiency
2015 2016 2017
33% 38% 46% 54% 67% 62%
TV Digital
39 Supor, the Chinese consumers’ favorite kitchen brand
Unaided awareness: Supor ranking #1, Brand preference: Supor ranking #1, ahead of Midea by 7 pts ahead of Midea by 3 pts
43% 41% 39% 39% 40% 37% 37% 37% 36% 36% 36%36%
9% 8% 8% 8% 7% 8%
2% 2% 2% 2% 1% 1% 15 16 17 15 16 17 15 16 17 15 16 17 15 16 17 15 16 17 15 16 17 15 16 17 Midea Supor Joyoung ASD Midea Supor Joyoung ASD
Source：AC Nielsen 2017 40 Supor, the Chinese consumers’ favorite brand in kitchen electrics
Unaided awareness: Supor ranking #1 Brand preference: Supor ranking #1 ahead of Midea by 2 pts ahead of Midea by 3 pts
35% 36% 36% 36% 34% 33% 33% 34% 33% 34% 32% 31%
21% 19% 18% 14% 14% 14%
15 16 17 15 16 17 15 16 17 15 16 17 15 16 17 15 16 17 Midea Supor Joyoung Midea Supor Joyoung
Source：AC Nielsen 2017 41 Supor’ key success factors
Strong and continuous innovation
Sustained branding investment
Strong distribution partnership and retail execution
Continuously improved competitiveness
A group of highly motivated and committed people
42 Extensive distribution channels - Easy to reach
More than 300 distributors all over China
More than 60,000 retail points, covering 100% county cities
SUPOR – the strategic partner with mainstream e-commerce platforms like Tmall, JD and Suning.
43 Extensive presence on the Chinese territory via Supor Life stores
Map of Life stores nationwide Life store 10 Community store in city and county town Brand “showroom”, sales, service, and 6 10 20 experience center 18 24 3 47 First store opened in May, 2006 5 1 52 89 Owned by individuals 97 23 Total 670 exclusive Life stores in China 53 25 37 in 2017 17 7 24 40 7 14 20 9 5
44 Supor key success factors
Strong and continuous innovation
Sustained branding investment
Strong distribution partnership and retail execution
Continuously improved competitiveness
A group of highly motivated and committed people
45 Overview of Supor’s manufacturing sites
CW
SDA
SUPOR 2017 Info. . Production Volumes: 106 MPCS . Total number of Employees: 10,690 . Field: 880,149m2
WUHAN HANGZHOU SHAOXING YUHUAN
Vietnam
46 Supor’s industrial sites – Facts and figures
Cookware: SDA Production volumes 2017: 59 MPCS Production volumes 2017: 47 MPCS YUHUAN Site: HANGZHOU Site: Year:1994 Year:2004 Fields: 118,180 m2 Fields: 66,000 m2 Employee: 1,947 Employee: 2,256
WUHAN Site: SHAOXING Site: Year:2005 Year:2009 Fields: 201,094 m2 Fields: 420,985 m2 Employee: 1,843 Employee: 4,220
VIETNAM Site: SSEAC Site: Year:2008 Year:2017 Fields: 73,890 m2 Fields: 28,000 m2 Employee: 424 Employee: 504
47 August 2009
48 48 Focus on industry safety
No analysis 80 75 Number of loss time incidents
70 Lack of communication
60 Design defect 50 50 Lack of risk assessment of LTI
40 Lack of skills 32
Number 30 22 Material/machine failure
20 15 10 Unsafe practices repeated 10 Individual human factors 0 2013 2014 2015 2016 2017 2018(1-10) AIRBAKE I ALL-CLAD I ARNO I ASIAVINA I CALOR I CLOCK I EMSA I HEPP I IMUSA I KAISER I KRUPS I LAGOSTINA I MAHARAJA WHITELINE I MIRRO I MOULINEX I OBH NORDICA I PANEX I ROCHEDO I ROWENTA I SAMURAI I SCHAERER I SEB I SILIT I SUPOR I TEFAL I T-FAL I UMCO I WEAREVER I WMF 49
Supor key success factors
Strong and continuous innovation
Sustained branding investment
Strong distribution partnership and retail execution
Maintaining competitiveness through continuous improvement
A group of highly motivated and committed people
50 Highly motivated and committed people “Need pressure, not afraid of pressure, conquer pressure”
Total staff: 12,362
Management Staff Sale & 3% Marketing 11% Technology/ Research / Development 15%
64% Male vs 36% Female Average age: 32 Indirect Labor 11% University Graduates 4% 271 Gold Medal and 1034 Silver
Direct Labor Medal employees 67% 51 Supor, the story goes on: continued solid momentum
Ambitions Priorities
• Innovation • Continue to capture • Continued expansion in Tier 3-4 cities Chinese market’s brisk • Ongoing development in new categories dynamic • Capitalization on the online expertise
• Enhance Supor’s status of • More categories’ transfer to tape into strong industrial base for competence production advantage the Group
• Become a Marketing and R&D competence center • Startup with specific categories for Asia
52 Thank You
53 INVESTOR DAYS – 21-23 Nov, 2018
INNOVATION PRESENTATION Walson WANG CONTENTCONTENT
1. SDA market 2. Rice-cooker 3. More innovative products 4. Conclusion
2 Robust Supor SDA business growth
Sales (M RMB) 9,000 Domestic Group Export Non-Group Export 8,575
8,000 7,355 7,000 2007-17 CAGR +22% 6,371 6,000 5,483 5,000 4,663
4,000 3,729 3,768
3,000 2,684 6,304 5,401 1,909 4,700 2,000 1,699 4,062 3,415 1,130 3,139 2,943 2,358 1,000 1,734 1,050 1,507 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Organic +49% +50% +12% +41% +39% +1% +24% +18% +16% +15% +17% Growth* Strong momentum in offline market
CHINA SDA Offline Market Share Delta(12-18) 100% 11.8% 9.8% 8.6% 18.1% 14.9% Others -14.1pts 22.7% 21.1%
80% 22.3% 22.3% 22.1% 25.3% 24.8% JY -1.2pts 23.5% 24.0% 60% 29.3% 27.1% 28.0% 23.4% 17.7% 19.3% 21.7% SUPOR +11.6pts 40%
MD +3.8pts 20% 39.9% 39.8% 36.0% 35.6% 35.4% 36.4% 38.8%
0% 2012 2013 2014 2015 2016 2017 2018YTD
Source: CMM 2012-2018.9YTD 4 Outstanding market positions in large categories
N°1
33%
N°2
25% 26% 34% 37% 28%
N°3
26% 26% 16% Source: CMM 2012-2018.9YTD SDA business development roadmap
Start SDA, and enter into more new categories
Product innovation & differentiation
SDA New categories HPC
2002 2008 2014 6 SDA key success factors on innovation
Dedicated consumer insight
Full patent protection on innovation
Sustained investments in R&D
Strong innovation pool and research process
Efficient innovation system
Cross-fertilization with Groupe SEB
7 Consumer insight - leverage on Chinese traditional cooking intelligence into innovative products
Team + Food sensory evaluation expert Institut National Supérieur des Sciences Agronomiques
• Period: 24-month follow-up
Process • Panel: 40 families nationwide • Forum: 100 times with communities & experts • Test: >1000 consumers tasting
• Define what is the best rice • The key factor of cooking best rice is inner pot
8 Robust patent application
Patent Application Quantity
Utility Model Invention Design 2,721 177 Patent risk control and 390 innovation protection through the whole product life cycle 2013-17 CAGR +83% 2,154 Patent mining and layout to create patent pool 104 156 1,188 Combination of Trademark,
53 copyright and different types 117 of patents to protection 245 597 products 82 50 55 38 2013 2014 2015 2016 2017
9 Strong innovation pool
Product development dept.
Inputs Product Strategic research dept. marketing dept.
Filtering Triangle meeting
Assessment Pre-research Innovation committee
Next step Approved to research process Select & enter RP1 Product committee 10 SDA innovation system organization
HQ: CEO SDA BU: Innovation Committee GM Sales VGM Strategic Marketing Director Industrial VGM Director of innovation HZ Site GM system Elaine Zhou
Site technical OEM technical OEM purchasing Strategic deputy general Category director Industrial design director director purchasing director manager
Improve and optimize the process of innovation system.
Establish innovation evaluation system, rewards system.
Allocate internal and external innovation resources.
Coordinate innovation projects.
11 Cross-fertilization with Groupe SEB
Soup & Co Soymilk Maker Easy Soup
More compact, easier to clean and … €199 €99 CONTENTCONTENT
1. SDA market 2. Rice-cooker 3. More innovative products 4. Conclusion
13 SDA innovation example - rice cooker
Current market evaluation - Why need a new rice cooker inner pot
Consumer insight of Chinese cooker - How develop a new inner pot
Benefits from the rice cooker innovation - What achieved
14 Constant technological product upgrade to meet consumers’ upmarket needs
2002 2006 2008 2011 2013
China RC market development stages ③ ④ ① Conventional RC ② Computerized RC IH RC new developed IH RC fast grow
15 Rice cooker inner pot evolution
Flat Surface Heating Traditional Dome Heating Spherical Heating 3D Heating
1st Gen 2nd Gen 3rd Gen 4th Gen 5th Gen 6th Gen 7th Gen 8th Gen 9th Gen 10th Gen Aluminum Alloy AA Non-Stick Hard Anodized Hard Anodized Ceramic Steel + Ceramic 2.0 Spherical Titanized Shallow AA Non-Stick AA Aluminum Pot Spherical Pot Spherical Pot Composite Stainless Steel Before 2000 2001 2003 2005 2010 2011 2013 2016 2018 Consumer insight - Why spherical inner pot
Inner pot in market How to develop a new inner pot, based on traditional rice cooking New inner pot Spherical pot RC as a key growth driver…
Sales percentage of spherical pot RC 63% 59% 53%
43%
35%
9%
2013.8 2014 2015 2016 2017 2018.10
20 … leading to strong market share gains…
Market share
48%
43% Spherical pot 2.0
Launch Oct 2018 38% Spherical pot 1.0 upgrade
33% 33.9%
28% Spherical pot 1.0
23% 24.8% YTD market share +9.1pts 1st Launch Aug 2013
18% 年 年 年 年 年 年 年 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 月累计 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Jan-11 Jun-11 Jan-12 Jun-12 Jan-13 Jun-13 Jan-14 Jun-14 Jan-15 Jun-15 Jan-16 Jun-16 Jan-17 Jun-17 Jan-18 Jun-18 Feb-11 Mar-11 Feb-12 Mar-12 Feb-13 Mar-13 Feb-14 Mar-14 Feb-15 Mar-15 Feb-16 Mar-16 Feb-17 Mar-17 Feb-18 Mar-18 Dec-10 Aug-11 Sep-11 Nov-11 Dec-11 Aug-12 Sep-12 Nov-12 Dec-12 Aug-13 Sep-13 Nov-13 Dec-13 Aug-14 Sep-14 Nov-14 Dec-14 Aug-15 Sep-15 Nov-15 Dec-15 Aug-16 Sep-16 Nov-16 Dec-16 Aug-17 Sep-17 Nov-17 Dec-17 Aug-18 Sep-18 2011 2012 2013 2014 2015 2016 2017 May-11 May-12 May-13 May-14 May-15 May-16 May-17 May-18 9 年 2018
21 … and improved average retail price
RSP 580 Market Supor RSP 526 530
480 +70%
430 Spherical pot 1.0 Spherical pot 1.0 upgrade
380 1st Launch Aug 2013
330
280 RSP 309
230 … 年 年 年 年 年 年 年 月 9 年 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Jan-11 Jun-11 Jan-12 Jun-12 Jan-13 Jun-13 Jan-14 Jun-14 Jan-15 Jun-15 Jan-16 Jun-16 Jan-17 Jun-17 Jan-18 Jun-18 Feb-11 Mar-11 Feb-12 Mar-12 Feb-13 Mar-13 Feb-14 Mar-14 Feb-15 Mar-15 Feb-16 Mar-16 Feb-17 Mar-17 Feb-18 Mar-18 Dec-10 Aug-11 Sep-11 Nov-11 Dec-11 Aug-12 Sep-12 Nov-12 Dec-12 Aug-13 Sep-13 Nov-13 Dec-13 Aug-14 Sep-14 Nov-14 Dec-14 Aug-15 Sep-15 Nov-15 Dec-15 Aug-16 Sep-16 Nov-16 Dec-16 Aug-17 Sep-17 Nov-17 Dec-17 Aug-18 Sep-18 2011 2012 2013 2014 2015 2016 2017 May-11 May-12 May-13 May-14 May-15 May-16 May-17 May-18 2018
22 CONTENTCONTENT
1. SDA market 2. Rice-cooker 3. More innovative products 4. Conclusion
23 More innovative products - KE
First Digital LED display kettle
First Silent High speed blender
Dual pressure valve Fresh Breath EPC Anti-overflow IH First anti-overflow health pot
24 More innovative products - HPC
Dust monitor Pressure Art design Mite Remover Garment Steamer Garment Steamer
25 CONTENTCONTENT
1. SDA market 2. Rice-cooker 3. More innovative products 4. Conclusion
26 Supor, leverage on Chinese traditional cooking intelligence into innovative products
Ambition Priorities
• Continue innovation • Deep dive in consumer insight in mature categories • Penetrate into market-segmentation • Leverage on consumption upgrade
• Develop more new • Enter into emerging categories categories • Continue to create product differentiation
• Optimize Innovation • Continue investment on R&D system • Optimize the innovation process to enrich the innovation pool • Strengthen innovative product protection by patent barrier
27 Thank You
28
INVESTOR DAYS – 21-23 Nov, 2018
WMF CONSUMER IN CHINA Jack Pan CONTENT CONTENT
1. China premium cookware market 2. WMF Consumer in China 3. Key priorities
2 2 Market upmove driven by the rise of China’s middle-class
2017 Household Income Per City Household Number (Million) 2016-2030 Month (K RMB) CAGR% 2010 2016 2020F 2030F
Premium Market
Mainstream Market
Mass Market
<
McKinsey & Company 3 Robust Chinese premium cookware market
(M RMB) 2013-17 CAGR +9% 400.0
350.0
300.0
250.0
200.0 397.0 322.1 150.0 300.6 300.2 278.1 100.0
50.0
0.0 2013 2014 2015 2016 2017
Source: GFK, Premium Cookware Brands Market size, offline, 30 cities in China
4 Channel diversification of premium market: B2B and ecommerce as key drivers
Department Stores New Retail Channel Premium Outlet Premium Villages Boutique Stores
ecommerce
B2B/BL/TV
5 CONTENT CONTENT
1. China premium cookware market 2. WMF Consumer in China 3. Key priorities
6 6 WMF Consumer China integrated into Supor in 2017
WMF Consumer Goods Co., established, Acquisition of WMF by Groupe SEB Upgraded WMF retail store image and opened the first self-run retail store 2010 2016 2018
2011 2017 Began online business, opened WMF China Integrated into Supor. Aligned WMF TMALL flagship store Honored Germany’s No.1 brand in business model on Supor homewares by Euromonitor
7 Main product milestones
2010 2016 2018
Started with 4 moment 2011 Launched SDA 2017 Launch insulation product lines jugs and mugs (preparing, cooking, Launched NATURamic range Launched local for drinking & dining) local new products (e.g. Chinese woks)
8 Cookware-focused portfolio, gradually diversifying
20% 2017 sales SDA > €50m
80% Cookware
9 Sustained growth momentum in WMF brand awareness
Aided Brand Awareness 100% (Top 6 tier 1 and 2 cities only) 90% 86%
80% 79% 74% 75% 76% +7 pts 70% 73%
60% 54% 53% 52% 52% 50% 48% 50%
40% -5 pts 30% 27% 29% 30% 25% 22% 20% 15%
10% +15 pts
0% 2015Jan 2015Oct 2016Mar 2016Oct 2017Jun 2018Jun
Source: Consumer Survey conducted by third party agent; n=1200 in 6 tier 1 and 2 cities (Beijing, Shanghai, Guangzhou, Chonqing, Wuhan, Nanjing); respondents with minimum household income of RMB 10,000 and RMB 15,000 for tier 1 and 2 cities respectively 10 Solid Offline market share growth
GFK 2013-2018 YTD Premium Market Share (30 Cities) – Key Premium Brands +4.1 pts
28.4% 24.3% +4.9 pts 21.3% 21.0%
9.8%
4.9%
11 Source: GFK, 30 cities in China
Retail store layout in 2018
长春 吉林 乌鲁木齐
沈阳 秦皇岛 鞍山 呼和浩特 北京 唐山 天津 大连 大同 东营 阳泉 石家庄 烟台 潍坊 The First Retail 青岛 太原 Store opened 邯郸 济南 in Shanghai in 郑州 泰安 徐州 镇江 2010 西安 南京 南通 洛阳 江阴 常州 成都 合肥 上海 无锡 武汉 苏州 杭州 重庆 宁波 长沙 湘潭 南昌 贵阳 福州 Business model change 厦门 广州 南宁 Improve retail store productivity 昆明 142 stores 深圳 Prioritizing and accelerating growth in Self-run (55) 海口 ecommerce and B2B Distributor (87) 三亚 12 Fast platform expansion and store footprint adjustment
1 Online store in 2013
20 Online Stores in 10 Key Platforms in 2018
TAOBAO AMAZON TMALL JD.COM SUNING
Freshhema MEI.COM RED VIP.COM KAOLA
13 Doubling ecommerce stake in two years
8% 18%
2015 2017
ecommerce Retail Other
Note: other incl. B2B, TV, brand loyalty program 14 Enhance consumer relationship and satisfaction
Store as Media, Updated with New SI Brand Experiential Activities:
Social E-commerce & Content Marketing
15 CONTENT CONTENT
1. China premium cookware market 2. WMF Consumer in China 3. Key priorities
16 16 A more extensive coverage of all market segments
Cookware Drinkware Kitchen Electric
GSEB Competitor GSEB Competitor GSEB Competitor
Top
Premium
Entry / Mid
Mass
17 WMF + Supor: Global innovation mixed with local insights
WMF German Design DNA + Local product offering: Chinese Woks and Non-stick Range
18 WMF leveraging Supor’s R&D and industrial expertise…
R&D Design of local for local products Manufacturing Lower cost High quality standards
Supply chain Improved lead-time – divided by 2
19 … and a strong local IT Support
HR SYSTEM CRM SYSTEM BPM & SAP SYSTEM
IT PURCHASING AFTERSALES SYSTEM
20 New journey just begins…
21 Investors Day Coffee Business in China
PCM WMF & Schaerer
November, 2018 Agenda
1. Coffee market in China - Market Size & Consumption - Specifics & our answers - Competitive landscape
2. PCM Business China
3. luckin coffee – the first Chinese coffee unicorn
Page 1 Agenda
1. Coffee market in China - Market Size & Consumption - Specifics & our answers - Competitive landscape
2. PCM Business China
3. luckin coffee – the first Chinese coffee unicorn
Page 2 China – a coffee drinking country?
Page 3 1. Coffee market in China The inevitable rise of Chinese Coffee Market
Fast- Average growing income middle class
Higher Demand Affordability
The equation of China's increasing coffee consumption
Number of Coffee coffee consum- outlets ption
Availability Attractivity
Page 4 1. Market size & consumption – Higher demand The rise of the middle class has just begun
The Chinese middle class is … and it’s still growing already larger than in the USA…
Share of middle class adults (in mio.), 20151
The middle class (and therefore the main potential for coffee consumption) is already the largest in the world. In addition, the growth is expected to continue with a CAGR > 6 %
Source: Credit Suisse Wealth Report 2015 / Global Insight / Business Insider (Sep. 2016) Page 5 1. Market size & consumption - Affordability Higher income will lead to a democratization of coffee
Higher income will establish a much bigger target group that can afford coffee consumption
Source: Jing DATA(Jul,2018) Page 6 1. Market Size & Consumption - Availability Increase of potential coffee outlets in China
Number of coffee shops in China Convenience stores per 1M people 800 unit：1000x
200 180 600 140,9 106 400 100 85 200 31,8 15,9 0 0 2007 2012 2016 2017 2018E 2020E Korea Japan China
Compare to Japan & Korea, Convenience Stores in More than 40,000 coffee shops will open in the China still have a big potential. Therefore a solid next 2 years. growth in this segment can be expected
Source: CBN DATA(Jul,2018), Forward Business & Intelligence (Sep.2018) Page 7 1. Market Size & Consumption - Attractivity The importance of fresh coffee is still far behind many countries
Coffee consumption in selected countries (2017) Split of consumption 2017 (value) unit：cup/person/year Increase rate
900 750 China (Average); 800 15% 700 Global 87% 13% Fresh coffee 600 China (Tier1); 30% 500 400 Instant & canned 400 coffee 300 200 China 16% 84% 200 100 20 6 0 0% 50% 100% Europe USA Japan & China China Korea (Tier1) (Average)
Coffee consumption in China is still low, not only compared to Europe and US, but also to Japan & Korea. But according to the current growth rate (15 %), China will catch up. On top, coffee consumption still includes a lot instant & canned coffee, a switch to fresh coffee is expected
Source: Forward Business & Intelligence (Sep. 2018) Page 8 1. Coffee market in China Coffee is booming in China, the whole industry is growing fast
Market size of the Chinese coffee industry
1400 unit：billion CNY 1200 1000 1000
800
600
400 300
200 70
0 2015 2020 2025
The total market size of the Chinese coffee industry is expected to grow with a CAGR of roughly 30 %
Source: Forward Business & Intelligence (May,2018) Page 9 1. Coffee market in China Coffee’s evolution from the fringes to the mainstream of Chinese society
Women Why the China Market Matters Hanging out at coffee shops with the newest drinks in hand represents a new lifestyle choice for urban Chinese consumers. As their living standards improve, Chinese consumers like to explore new products and experiences—especially from the West.
Who & how do they drink coffee? In China coffee is more likely to be drunk after work whilst socializing by young, upper class females (40% of occasions).
Millennials (post-‘90s generation)
Source: Kantar Worldpanel’s Out-of-Home panel. Mobile Annual Total (MAT) ending June 2017. Page 10 1. Coffee market in China Outlook Chinese Coffee Machines Market
750 M€* China will be the second biggest Coffee Machine Market in the world
200 M€* Coffee Drinking 120 M€* becomes integral part The rise of coffee of society drinking
1999 2018 2022 2028 Starbucks brings Coffee to China
*Marketsize FAPCM (incl. Service) Source: Estin Studies (2018 – 2022), Estimation (2028) Page 11 Agenda
1. Coffee market in China - Market Size & Consumption - Specifics & our answers - Competitive landscape
2. PCM Business China
3. luckin coffee – the first Chinese coffee unicorn
Page 12 Specifics of the Chinese market Overview – Our solutions for the main trends Automation & Premiumisation & New Retail & IoT Global & local players Self-Serve Quality Mindset
1 2 3 4 Technology Leadership & Innovation Leadership in Premium brand & quality Global footprint with 2 Connectivity FAPCM products Bands and local presence
Page 13 Specifics of the Chinese market Four mega trends characteristic & reshaping China
New Retail & IoT
4 Trends reshaping CHINA Chinese Coffee Business
Page 14 Specifics of the Chinese market New Retail & IoT
New Retail & IoT
• >800 Mio. smart phone users • Mobile Payment (WeChat, AliPay…) & Delivery Services dominating • By 2021, 80% of smartphone users will use mobile payment at POS • Mobile Payment transaction >15 trillion USD (2017)
Page 15 Specifics of the Chinese market New Retail & IoT - Changing the coffee market
“The New Retail model is the best combination of self-collection <-> delivery and online <-> offline to achieve optimal balance between product, price and convenience” – luckin coffee -
Page 16 Specifics of the Chinese market New Retail & IoT - Our solutions
Page 17 Specifics of the Chinese market New Retail & IoT - Our solutions
Video available on youtube: https://www.youtube.com/watch?v=gGFxNvSDSR0
Page 18 Specifics of the Chinese market Four mega trends characteristic & reshaping China Automation & Self-Serve
4 Trends reshaping CHINA Chinese Coffee Business
Page 19 Specifics of the Chinese market Automation & Self-Serve
Automation & Self-Serve
• Rise of unmanned convenience stores and fully automated Food & Beverage concepts
Page 20 Specifics of the Chinese market Automation & Self-Serve – a big change for our customer segments
? Premium Coffee self-serve solutions for unmanned shop concepts
Page 21 Specifics of the Chinese market Automation & Self-Serve – high technology WMF based solutions
Video available on youtube: https://www.youtube.com/watch?v=t4r6nAkav9o
Cafe X – a completely new user experience through the combination of WMF Coffee machines with a robot
Page 22 Specifics of the Chinese market Automation & Self-Serve – Our solutions
Schaerer Premium Coffee Corner This is REAL coffee
Schaerer’s answer to a growing demand of premium Coffee-to-Go!
3 grinders = 3 bean types
Best Foam™ – premium fresh milk foam
2 milk types, 2 powder types, 4 syrup types
Chilled drinks (Hot&Cold)
32 inch HD landscape screen
Self-explaining user interface
Ambient lighting
Connected to Schaerer Coffee Link
Page 23 Specifics of the Chinese market Four mega trends characteristic & reshaping China
4 Trends reshaping CHINA Chinese Coffee Business
Premiumisation & Quality mindset
Page 24 Specifics of the Chinese market Premiumisation & Quality mindset
Premiumisation & Quality Mindset
• Booming middle class with growing quality mindset & spending • Consumption takes two paths, Western and Chinese • Lifestyle products are leveraged by social media such as WeChat
Page 25 Specifics of the Chinese market Premiumisation & Quality mindset – premium coffee concepts
Fresh & Future
Page 26 Specifics of the Chinese market Premiumisation & Quality mindset - The 5 waves of coffee
EUROPE
CHINA “In China, all 5 waves of coffee happening at the same time”
Page 27 Specifics of the Chinese market Premiumisation & Quality mindset – Our solutions
Breakthrough Innovation • 1st ever fully automatic with the “look & feel & taste” of a semi-automatic coffee machine • Delivering benchmark espresso quality • Cutting out the barista training
Page 28 Specifics of the Chinese market Premiumisation & Quality mindset – Our solutions
WMF Dynamic Milk Flexible Touch Schaerer Best Foam™ iPhone touch experience Milk foam of top barista on WMF coffee quality, fully automated, machines – individualize with consistently high your machine! quality.
WMF MyCoffee Plug & Clean Schaerer CoffeeMYsation Customer Our app that enables you convenience through to customize YOUR office easy of maintenance coffee - individualization is key!
Hot & Cold WMF CoffeeConnect Chilled coffee drinks Schaerer Coffee Link freshly brewed – Connectivity for service broader offerings for optimization and new our customers business models
Page 29 Specifics of the Chinese market Premiumisation & Quality mindset – Our solutions
Espresso 9000 S+ 5000 S 1500 S 1200 S 1100 S
300 cups/h 350 cups/h 250 cups/h 180 cups/h 100 cups/h 80 cups/h
Schaerer Barista Coffee Art Plus Coffee Soul Coffee Vito Coffee Prime Coffee Club 300 cups/h 250 cups/h 250 cups/h 150 cups/h 100 cups/h 80 cups/h
Hotel / Restaurant Coffee Shop QSR Segment Customer Customer C-Store Office
Page 30 Specifics of the Chinese market Four mega trends characteristic & reshaping China
4 Trends reshaping CHINA Chinese Coffee Business
Global & local players
Page 31 Specifics of the Chinese market Global & local players
Global Brands investing in the market Local brands adapting the concepts
Page 32 Specifics of the Chinese market Global & local players – Our solutions
Global Footprint Local Organization
Local subsidiaries Importers
11 subsidiaries and ~ 200 importers More than 20 People for globally PCM locally in China Approvals and contracts with many Shared Services & Facilities with WMF big global accounts Consumer Goods & WMF Hotel Supplies
Page 33 Specifics of the Chinese market Global & local players - Our solutions
PCM Business in China
Local PM
Local IT Global Local Service Functions Local KAM
Local Back office with strong strong with office Back Local Local Marketing link to the global functions in HQ in functions global the to link
Sales WMF Sales Schaerer
regional nationwide Key Accounts Key Account
2 Brand Strategy with with Strategy Brand 2 distributors distributors 2 Faces to the customer the to Faces 2
Page 34 Agenda
1. Coffee market in China - Market Size & Consumption - Specifics & our answer - Competitive landscape
2. PCM Business China
3. luckin coffee – the first chinese coffee unicorn
Page 35 Competitive landscape Besides the normal competitors, some new Chinese players are rising
Traditional
PCM Market
Page 36 Specifics of the Chinese market Overview – Our solutions for the main trends Automation & Premiumisation & New Retail & IoT Global & local players Self-Serve Quality Mindset
1 2 3 4 Technology Leadership & Innovation Leadership in Premium brand & quality Global footprint with 2 Connectivity FAPCM products Bands and local presence
Page 37 Agenda
1. Coffee market in China - Market Size & Consumption - Specifics & our answer - Competitive landscape
2. PCM Business China
3. luckin coffee – the first chinese coffee unicorn
Page 38 PCM Business in China Historical Timeline WMF PCM China
Groupe SEB acquires Continuous sales Outlook: WMF growth with a Accelerate multiple distributor End of partnership sales growth partnership network with DKSH for PCM 2016 2019 Till 2014
2005 2014 2018 Market Entry WMF KKR acquires WMF Appointment of new with own subsidiary in Start Exclusive Management Shanghai Distribution with WMF strengthens DKSH local organization Coordinated approach Schaerer and WMF
Page 39 PCM Business in China Go-to-Market Model – Sales Channels
Manufacturers Sales Channels Customers Consumers
Example:
Hotels
KA Direct Restaurant
Catering Travel Roasters
value is Office created here
Distributors QSR
C-Store Hotel Projects
Coffee Shop
Page 40 PCM Business in China Customer Success Stories in China
C-Store C-Store QSR QSR Coffee Shop Bakery
Page 41 PCM Business in China Key Facts of WMF PCM Business in China
Market Share Sales Mio. € 50 40 30 34 % 20 12 % 10 0 2014 2018 2014 2018
Installed Base Growth Rate (CAGR)
20000 2014 -> 2018 15000 10000 5000 63 % 0 2014 2018
Page 42 Agenda
1. Coffee market in China - Market Size & Consumption - Specifics & our answers - Competitive landscape
2. PCM Business China
3. luckin coffee – the first Chinese coffee unicorn
Page 43 luckin coffee – the first Chinese coffee unicorn The extraordinary success story of luckin started just 12 month ago
Nov. Jan. Jul. Nov. 2017 2018 2018 2018
Page 44 luckin coffee – the first Chinese coffee unicorn Expansion Rate in China – Starbucks vs. luckin coffee
7000 6000 6000 STARBUCKS LUCKIN COFFEE
5000
4000 3300 2935 3000 2500 2000 2000
1000
0 2016 2017 2018E 2022E
Page 45 luckin coffee – the first Chinese coffee unicorn Differences Starbucks vs. luckin
Affordability / Price Convenience
Page 46 luckin coffee – the first Chinese coffee unicorn Multi-type store strategy - “Any moment” “无限场景”
ELITE 旗舰店 ELITE flagship store RELAX 悠享店 RELAX leisure store PICKUP 快取店 PICKUP express-pickup store KITCHEN 外卖厨房店 KITCHEN delivery kitchen store
Page 47 Thank you!
INVESTOR DAYS – 21-23 Nov, 2018
SDA MARKET & PRODUCT OFFERING Elaine ZHOU 1 Robust Small Kitchen Electrics market growth
M RMB 60,000 CHINA SDA total market by categories (RSP M RMB) 55,876 1,484 52,134 1,791 BP 1,355 2,184 50,000 48,773 1,579 46,652 3,793 1,288 3,063 1,223 1,518 SC 42,985 1,472 4,431 4,346 5,954 39,909 39,306 40,226 1,124 1,092 4,476 Juicer 40,000 1,027 1,336 2,297 36,761 35,882 1,015 5,563 6,675 7,083 1,164 5,941 1,094 6,913 6,030 SMM 10,507 8,105 5,098 6,940 6,793 7,702 30,000 7,922 7,372 IH 10,097 9,650 9,629 6,549 6,324 9,825 15,186 6,367 EPC 10,847 8,626 4,029 20,000 6,440 5,111 6,775 7,102 3,625 2,453 Kettle 6,349 3,367 1,494 3,298 4,594 3,144 2,951 1,128 2,226 2,607 1,027 Blender 10,000 2,334 944 1,605 1,047 17,589 1,329 16,003 16,890 14,132 11,858 9,560 10,934 RC 8,185 7,983 8,547
- 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Annual growth (%) -2.4% +11.2% -1.5% +2.3% +6.9% +8.5% +4.5% +6.9% +7.2%
Source: CMM 2008-2017 2 Strong momentum in ecommerce
M RMB Online size Offline size
60000 55,876 52,134 48,773 50000 46,652 42,986 40,226 39,909 39,306 28,463 36,761 40000 35,882 31,302
33,633 30000 35,727
37,287 39,909 37,541 20000 39,306 36,761 35,882 27,413 10000 20,832 15,140 10,925 5,699 0 2,685 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Online% 7% 13% 23% 31% 40% 49%
Source: CMM 3 Consumption structure upgrade： Stable mature category market and rapidly developing new categories
Unit : % Sample volume: total=3,393 93 84 84 80
68
54 49 45 35 35 33 30 27 19 15 13 13 10 9
Mature Category Emerged Category Emerging Category
Note: 1. Data is from AC Nielsen Brand Research Report 2015. 2. SMM has increasingly replaced by high speed blender for 2 years. 4 Supor SDA domestic sales
M RMB 7,000 Supor SDA Domestic Sales (M RMB) 6,304
6,000 5,401 2007-17 CAGR +20% 5,000 4,700
4,062 4,000 3,415 3,139 2,943 3,000 2,358
2,000 1,734 1,507 1,050 1,000
- 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
5 Sustained Supor market share growth
CHINA SDA Offline Market by competitor (9 categories) Delta(12-18YTD) CHINA SDA Online Market by competitor (9 categories) Delta(15-18YTD) 100% 100% -14.1pts 11.8% 9.8% 8.6% Others 18.1% 14.9% 22.7% 21.1% Others -7.2pts 35.1% 35.1% 80% 22.4% 22.3% 80% 42.2% 39.1% 22.3% 25.3% JY -1.2pts 24.8% 23.5% 24.0% JY -4.2pts 60% 60% 29.3% 19.0% 18.9% 27.1% 28.0% 20.8% 23.4% SUPOR +11.6pts 19.3% 21.7% 23.1% 17.7% SUPOR +7.6pts 40% 40% 18.5% 20.5% 15.9% 12.9% MD +3.8pts 20% 39.8% 39.8% 20% MD +3.7pts 36.0% 35.6% 35.4% 36.4% 38.8% 27.4% 25.6% 21.9% 24.2%
0% 0% 2012 2013 2014 2015 2016 2017 2018YTD 2015 2016 2017 2018YTD
Offline TOP 3 brands market share: Online TOP 3 brands market share:
77.3% 91.4% 57.8% 64.9%
6 Source: CMM 2012-2018.9 & AVC 2015-2018.9 Strong momentum in distribution channels
More than 300 dealers national wide
Strategy partnership with all major retail banners
More than 60,000 offline retail points
Online sales on their ecommerce platforms
More than 4,000 after-sale service stations Key accounts, Electrical 11% specialists, 7%
Ecommerce , 49% Independen t retailers, 33%
7 Supor, the Chinese consumers’ favorite brand in Kitchen Electrics
SUPOR BRAND AWARENESS SUPOR, THE LEADING BRAND ON THE RISE PREFERENCE
36 36 36 35 34 34 33 34 33 33 31 32
21 19 18 14 14 14
Y15 Y16 Y17 Y15 Y16 Y17 Y15 Y16 Y17 Y15 Y16 Y17 Y15 Y16 Y17 Y15 Y16 Y17
SUPOR MIDEA JOYOUNG SUPOR MIDEA JOYOUNG
Source: AC Nielsen Brand Research Report 2017 8 KE preferences by category - Rice Cooker Supor gaining customer preference over the years
40 41 42 41 41 40 38 37 39 31
5 3 5 4 4
Y13 Y14 Y15 Y16 Y17 Y13 Y14 Y15 Y16 Y17 Y13 Y14 Y15 Y16 Y17
SUPOR MIDEA JOYOUNG
Unit： % Sample Volume：Y13=3,471; Y14=3,492; Y15=3,393;Y16=2,709；Y17=2,303
Source: AC Nielsen Brand Research Report 2017 9 KE preferences by category - Electric Pressure Cooker Supor way ahead of competition
47 44 44 46
35 34 28 30 30 30
6 7 5 6 4
Y13 Y14 Y15 Y16 Y17 Y13 Y14 Y15 Y16 Y17 Y13 Y14 Y15 Y16 Y17 SUPOR MIDEA JOYOUNG Unit： % Sample Volume：Y13=3,471; Y14=3,492; Y15=3,393;Y16=2,709; Y17=2,303
Source: AC Nielsen Brand Research Report 2017 10 KE preferences by category - High Speed Blender Supor ranking No.1 vs fierce competition
23 22 20
1 0
Y17 Y17 Y17 Y17 Y17
SUPOR MIDEA JOYOUNG AUX Westinghouse
Unit： % Sample Volume：Y13=3,471; Y14=3,492; Y15=3,393;Y16=2,709；Y17=2,303
Source: AC Nielsen Brand Research Report 2017 11 Supor, a reliable brand for Chinese consumers
Supor, recognized as being high-end, high-quality, reliable and smart
Unit : % 10 20 30 40 50 60 70 + 8.8 High-end 8.7 High-quality 8.5 Trustworthy
8.3 Clever Brand Image 7.7 Good after-sale service
6.5 Constantly innovative 6.2 Functional 6.0 Well-designed 6.0 Intelligent product 5.8 Sci-tech associated
Importance 5.3 Warm and caring 5.3 Friendly 4.7 Socially responsible 4.4 Green and healthy 4.1 Unique 3.7 New and vibrant - Supor Midea Joyoung ASD Base: Brand knower Sample volume: 2173 2182 2052 1103 12 Source: AC Nielsen Brand Research Report 2015 Benefits from innovative design
Reddot Award
CMF Design Award 2018
AWE Award 2017 Reddot Award
AWE Award 2016
iF DESIGN AWARD 2015
Reddot Award 2014
iF DESIGN AWARD Reddot Award
2013 Reddot Award 13 Kitchen Electrical product lines overview
NO.2 NO.2 NO.3 NO.2 Rice Electrical Blender Kettle Cooker Pressure Cooker
NO.2 NO.2 NO.1 Induction Baking Slow Hob Pan Cooker
14 Home & Linen Care product lines
NO.6 NO.1 NO.9 Vacuum Garment Air Cleaner Steamer Purifier
NO.3 NO.6 Steam Mite Iron Predator
15 Thanks
INVESTOR DAYS – 21-23 Nov, 2018
SHAOXING PLANT Junyou Shen 1 Shaoxing site - Supor’s largest SDA plant
Foundation--2007.08
Hangzhou site Wuhan Site Shaoxing site
Yuhuan Site
Vietnam Site Put into production--2009.10
15# 14#
2 Field: 420K M Put in using
Staff: 4,600 To be planned 2 2 Category development milestones
2012-2014
2009-2011
3 Category development milestones
EPC Fryer Bread Maker Kettle Health pot FCM Electrical cooking category Beverage2015 category-2017
High speed Induction hob Soy Milk Maker Slow Juicer Blender Easy go blender Food Preparation category 3 Steady ramp-up since 2009
Unit: Million RMB 7,000 Overall volumes produced > 33 M units
6,000 Growth driven mainly by kettle category
5,000
4,000
3,000
2,000
1,000
- 2009 2010 2011 2012 2013 2014 2015 2016 2017 SX Factory
4 Shaoxing, Groupe SEB’s centre of expertise in Kettles’
Unit: K pcs 14,500 14,000
11,100
9,000
7,600 6,300 5,100
3,050
2010 2011 2012 2013 2014 2015 2016 2017
5 Scale effect contribute to competitiveness
UPPH +60% 2017 VS 2012
PRU -22% 2017 VS 2012
UPPH: Unit product per person per hour 6 Strongly structured innovation process
Developing teams Research teams Expert teams
Electronic EPC IH Kettle Motor control Electric Motor- heating driven High speed Food Surface Fryer Injection blender processor finishing
FCM& Nutrition Toaster health
User scenario Category innovation Next 3 years Development direction analysis thinking development mapping
7 Improved and shortened time to market
100-day pilot project in 2018 250 New product R&D cycle（days）
200 97 Days
150 -43%
100 195 174 144 121 95 Days 50 112
0 2014 2015 2016 2017 2018YTD
8 International standardized testing center and quality assurance system
> 2000 M2 area >700 pcs test facilities > 50 testing engineers
QMS: ISO9001
OHSAS:18001
EMS: ISO14001 SX getting autonomous lab validation of SEB products Hand Packaging Kettle BM Fryer FCM Toaster Blender Food processor blender validate by SBU LAB DQNE IS Sur Tille Maryenne
Status √ √ √ √ √ √ ongoing ongoing ongoing 9 Strict quality process control
Example fryer
First of Second of Pilot Mass Mock-up Tooling Tooling Production Production
Test item: Test item: Test item: Test item: Test item: function，performance， Normal safety test Normal safety test，MQS safety test，performance Type test， short life construction &internal wire MQS &life test test，
Quantity : Quantity : Quantity : Quantity : Life test 1-2pcs Life test 4pcs，other test Life test 4pcs，other test Life test 6pcs, other test 4pcs 4pcs 6pcs
10 Implementing PCO & Lean improvement to enhance competitiveness
Unit: Million RMB PCO + LEAN savings close to 150 MRMB in 5 years 60 50 40 30 20 10 0 2013 2014 2015 2016 2017
2015 PRU
PRU change on Cookeo -12% in 2 years
2017 PRU
PCO：Product cost optimize 11 Launching improving system, Encouraging all people participation
Safety
Quality
Costs
z 2018 YTD: Delivery Got >19,000 proposals from staff All people participation >70% Involvement Getting>300 workshops In-direct labor participation >50% Environment Getting > 8M RMB savings
12 Labor efficiency steadily increasing
Total labor efficiency Direct labor efficiency
Total staff number Direct labor munber 4600 319 3800 Total per capita output value 1253 1260 direct labor per capita cost 4400 3600 300 287 1160 4200 267 3400 1088 4000 250 3200 1060 1010 3800 3000
960 3600 200 2800 2015 2016 2017 2015 2016 2017
13 Focus on employees’ working conditions: EHS improvement
E：reducing temperature and noise H：ergonomic 30%
18% improved 6% number cooling system coverage Jan Feb Mar Apr May Jun Jul Aug Sep Oct identification and improvement：
mute blow water harmful stoop turn-back substances person：VCS position：JSA (safety interview) (Job safety analysis) Direct labor: once per person/year Indirect labor: 2 times per person/year 14 Strengthen environmental management
Power Water Energy Gas
生产
Products
Wastes
Legal Basis Integrated Environmental 05Emergency应急准备 compliance files control monitoring preparation
15 Employee care & growing
Improving workshop working environment Assisting in the training of different staff Strict implementing 1 day off in every 7 Organizing diverse factory cultural life activities
Staff activities
Training
Factory celebration
An evening party celebrating the Spring Festival 16 Shaoxing as a benchmark
Safety Quality Innovation
Environment Cultural Overall
No. Association Part 1 National household appliances Standardization Technical Committee commissioner 2 China Association for Standardization vice-council member 3 China Household Electrical Appliances Association council member 4 IEC/MSB China expert committee commissioner Play a major role in category standards setting As a team leader in: EPC(performance)/ fryer performance test IH Energy efficiency standard/ SMM standard setting 17 Visiting route & reminder
15# 14#
Put in using To be planned
18
INVESTOR DAYS – 21-23 Nov, 2018
CW MARKET & PRODUCT OFFERING Shirley Chen 1 目录CONTENT
炊具总体市场介绍 CKW OVERALL MARKET INTRODUCTION
苏泊尔经营业绩及品牌表现 SUPOR SALES AND BRAND PERFORMANCE
苏泊尔业绩增长驱动及产品介绍 SUPOR SALES GROWTH DRIVES AND PRODUCT OFFERING
2 目录CONTENT
炊具总体市场介绍 CKW OVERALL MARKET INTRODUCTION
苏泊尔经营业绩及品牌表现 SUPOR SALES AND BRAND PERFORMANCE
苏泊尔业绩增长驱动及产品介绍 SUPOR SALES GROWTH DRIVES AND PRODUCT OFFERING
3 2017年中国炊具市场零售总额200亿元 20B RMB CKW market in China in 2017
Offline Online RSP Mil. RMB 25,000 2014-17 CAGR 7%
19,459 20,000 18,102 16,035 16,862 3,606 3,004 2,466 15,000 2,464
10,000 15,098 15,853 13,571 14,396 5,000
- 2014 2015 2016 2017
Date from: GFK China 4 炊具不同品类在中国消费者家庭的渗透率不同 Different penetration rates in Chinese households
96 93 93 90 84 77 69 63 61 51 47 42 37 POTTERY POT POTTERY WOK KNIFE PREPARATION STEAMER FRYPAN POT MILK SPATULA DRINKWARE POT LUNCH BOX LUNCH KETTLE 刀 炒 汤 PC 压 明
FOOD
锅 力 煎 火 保
具 铲 锅 蒸 奶
陶
锅 温 水 锅 保 水 勺 锅 锅
杯 鲜 壶 提 瓷
盒 锅 煲
5 目录CONTENT
炊具总体市场介绍 CW OVERALL MARKET INTRODUCTION
苏泊尔经营业绩及品牌表现 SUPOR SALES AND BRAND PERFORMANCE
苏泊尔业绩增长驱动及产品介绍 SUPOR SALES GROWTH DRIVES AND PRODUCT OFFERING
6 苏泊尔炊具在中国每年保持10%以上的持续稳定增长 Supor, growing steadily over 10% every year in China.
单位：百万元 4,500 Unit：MRMB 4,000+ 4,000 Kitchenware Cookware
3,500
3,000
2,500
2,000 1,500 1,200
1,000
500
- 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Growth Rate% 11.3% 19.2% 17.8% 7.8% 14.1% 16.2% 13.5% 15.2% 14.3%
7 2017年, 苏泊尔炊具在中国的销售超过3500万只 Over 35M pieces cookware sold in China in 2017
炊具主要8大品类：炒锅、压力锅、蒸锅、煎锅、汤奶锅、陶瓷煲、套装锅、水壶 8 Key Categories of CW including: Wok, PC, Steamer, Frypan, Pot, Pottery, Set, Kettle.
8 2017年，苏泊尔厨具在中国的销售超过1200万只 Over 12M pieces kitchenware sold in China in 2017
厨具主要四大品类：水杯、提锅、刀具、铲勺 4 Key Categories of KW including: Flask, Lunch box, Knife, Spatula
9 苏泊尔在中国是炊具行业第一品牌 SUPOR, the undisputable No.1 brand of CKW in China
100.0
15.2 13.0 90.0 17.8 24.8 28.4 25.6 33.9 80.0 40.1 28.9 70.0 25.6 36.8 60.0 31.1 28.7 23.9 31.9 OTHERS 50.0 23.0 ASD 40.0 SUPOR
30.0 59.2 58.1
42.2 44.1 45.4 45.8 20.0 39.7 36.9
10.0
0.0 PC WOK FRYPAN POT STEAMER POTTERY SETS TOTAL
Data source: GFK 30 cities YTD 2018 1-8 10 苏泊尔在炊具行业知名度排名第一 SUPOR has the highest brand awareness in Cookware
% • 基数sample base：所有被访者 all interviewee • 样本量sample capacity：总体total= 2,303；T1=820；T2=640；T3=452；T4=391 98 总认知 General awareness 94 93 95 95 95 95 94 94 94 93 89 90 89 86 无提示第一提及 Unaided first mentioned
56 51 48 49 43 42 41 41 39 39 39 36 36 33 34
9 8 9 10 7 1 1 1 1 0
Total T1 T2 T3 T4 Total T1 T2 T3 T4 Total T1 T2 T3 T4 Total T1 T2 T3 T4 苏泊尔SUPOR 美的MIDEA 九阳JOYOUNG 爱仕达ASD
11 苏泊尔的消费者喜好度保持最高并逐年提高 SUPOR, the Top One preferred brand
单位： % • 基数Sample base：所有被访者 all interviewees • 样本量Sample numbers：Y13=3,471; Y14=3,492; Y15=3,393; Y16=2,709; Y17=2,303 前两喜爱 Top two preferences 第一喜爱 Top one preference 62 63 64 64 59 60 59 54 52 53
24 22 22 22 20 40 38 37 39 36 35 36 36 36 7 31 4 5 3 4 8 9 8 8 2 3 1 2 2 7
Y13 Y14 Y15 Y16 Y17 Y13 Y14 Y15 Y16 Y17 Y13 Y14 Y15 Y16 Y17 Y13 Y14 Y15 Y16 Y17 苏泊尔SUPOR 美的MIDEA 九阳JOYOUNG 爱仕达ASD
12 目录CONTENT
炊具总体市场介绍 CW OVERALL MARKET INTRDUCTION
苏泊尔经营业绩及品牌表现 SUPOR SALES AND BRAND PERFORMANCE
苏泊尔业绩增长驱动及产品介绍 SUPOR SALES GROWTH DRIVES AND PRODUCT OFFERING
13 Your kitchen small issues Our attentively big solutions 你的厨房小事 我们的用心大事
14 以消费者“需求”出发，进行产品创新 Consumer needs, the key of our product innovation
谁是目标消费者? 消费者 consumer Who are target consumers? 如何产品创新？
How to innovate? 洞察什么需求？
What is consumer 产品 需求 insight? product needs
15 渗透率高的品类：细分需求，让消费者拥有更多 High penetration categories: lead our consumers to buy more.
“让消费者买更多” “Give consumers a reason to buy more”
16 炒锅：一家两锅 文武双炒（不粘锅+铁锅） Wok: double equipment in the kitchen (nonstick + iron)
Fume Non Fume Stick less stick 问题 解决方案 Problems Solutions Anti Rust Heavy Light rust
17 炒锅：一家两锅 文武双炒（不粘锅+铁锅） Wok: double equipment in the kitchen (nonstick + iron)
+
18 Red spot fumeless wok
Visible to oil temperature, goodbye to fume
19 专利 技术 Patented Groupe SEB Red spot technology
油温可见 油烟再见 Oil temperature indicator, no more fume 当锅内的温度达到180 ℃左右时，红点上的图案将会消失，火红点 变成全红色，成为一个实心的火红点，此时即为开始烹饪的最佳时刻。 When temperature reaches 180℃, the red spot at the bottom of the wok will disappear and become a plain spot, which shows the best time for cooking
Pre-heating Heating Cooking 20 Triply anti-rust Iron Wok
真不锈炒锅
铁锅有芯 得心应手 Triply layers Comfortable for stir fry
21 真不锈炒锅-芯铁技术 Zhen Buxiu Iron Wok 锅体采用 铁-铝-铁 1：3：1黄金配比，在高 温环境下进行多重特殊工艺处理，重组表面结 构，让您感受轻重称手、持久不生锈的铁锅爆 炒新体验。 Triply layers(iron/Alum/iron 1:3:1) with special treatment to realize light weight、nonstick and suitable for stir fry
22 每年有超过1000万家庭拥有苏泊尔炒锅 More than 10M new families buy a SUPOR wok every year
23 渗透率高的品类：消费升级，激发更新需求 High penetration categories: stimulate new demands by consumption upgrade
“给消费者一个购买苏泊尔的理由” “Give consumers a reason to buy SUPOR”
24 刀具：“黄金弧+黄金斩”----更锋利、斩切刀 Knife: “Golden arc + golden chop”--- Sharp Range Chip & Chop
双刃设计 斩切互不干扰 Twin-edge design, No interfere between chip and chop
25 切割更省力 Golden arc, Easy chipping
26 golden chop, Robust chopping
斩剁更强韧
27 渗透率低的品类：创造使用场景，激活新购需求 Low penetration categories: create scenarios to activate new needs.
“给消费者一个拥有的理由” “Give consumers a reason to try it. ”
28 Supor red spot fry pan Right temperature for better taste
持续贯彻
大平底， 更适合煎烙 烹饪，突出 煎锅特点
BIG-Flat for better frying
29 One frypan and one work, best “ for cooking 提 一 煎 由 高 煎 烙 于 一 煎 一 的 煎 煎 As the characteristics of the 锅 炒 烹 锅 一 和 ， 饪 自 frying pan is more suitable for 炒 轻 ， 身 炒 锅 松 做 的 frying and making a rich delicacy. ， 的 满 出 特 配 足 丰 点 烹 比 煎 富 ， 饪 One fry and one stir-fry for easier 率 炒 的 更 数量/口 Numbers to meet the cooking requirement, 刚 。 烹 美 适 煎锅的销量 炸 味 合 好 12000000 and to increase the ratio of 为炒锅的 。 ， ” 10000000 frypan and wok 57.42% 8000000
6000000 Frypan sales vs. Wok sales: 4000000 57.4 % 2000000
0 炒锅 煎锅 Wok Frypan 30 ◆ 快速——导热快（生活节奏快） Quick - fast heat conduction(fast pace of life) 5分钟 ◇ 健康——火红点控油温+环保涂层（一天 之计在于晨，防止油温过高使食物析出有害物质， 早餐 supor清晨就开始呵护您的健康） Healthy – red spot to control oil temperature + 5min- healthy coatings ◆ 易洁——不粘表面易清洁（早上时间紧， breakfast 没时间刷锅，晚上回家再清洁依旧轻松） Easy to clean – non-stick surface is easy to clean (time is tight in the morning, no time for wok clean, easy clean even at night )
31 开拓新品类，培育未来增长点 Develop new categories, to nurture further growth
“苏泊尔，给消费者更好的选择” “SUPOR, a better choice for consumers”
32 Color lid Pottery pot ▪盖无双
no crack even with violent temperature change from 650-20℃
6.5-class imported spodumene from Australia
33 上市4年时间成为陶瓷煲品类行业第一 Supor, NO.1 in the pottery category 4 years after launch
单位:K RMB
180,000 MS: 45%
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
- 2014年 2015年 2016年 2017年 2018年
34 抓住新生代年轻消费者 Capture the new generation of young consumers
品牌&产品年轻化、时尚化 Turn Supor into a younger, more fashionable brand
35 张钧甯 Zhang jun ning ×
温 知 时 暖 性 尚 w a r m intellective f a s h i o n
36 Supor AIR light weight thermos, Warm and light
37 2014-2018年5年销售额实现10倍增长 Drinkware 2018(e) revenue 10X that of 2014 单位:K RMB 400,000
350,000 2014 - 18 CAGR 80%
300,000
250,000
200,000
150,000
100,000
50,000
- 2014年 2015年 2016年 2017年 2018年
38 系列化，色彩化 Serialization and colorization
39 小家庭 Small Family
40 Thank You
Our objective: continue to consolidate our overall leadership 但是，我们将持续提升，永不止步。
41 Thank You
42 INVESTOR DAYS – 21-23 Nov, 2018
YUHUAN PLANT Jian Hu 1 Yuhuan – Outstanding location …where everything started
SH air 5hs
NB port 6hs SH port 10hs
NB Air 3hs SX WH HZ Damaiyu port 0.5hs YH VN WZ air 1.5hs SDA SZ port 18hs CW
Titre présentation & date 2 Category development milestones
Started manufacturing aluminum cookware with Cast aluminum launch new process of PTFE & Anodization
1980~1997 2002 2008
1997~ 2006 Launched 1st thermospot line from SEB 主创设计师 Best seller of 1996 in China Senior Interior Designer Responsible to draft the National Standard for pressure cooker New SS line launch
Titre présentation & date 3 NSEB, Constant sales expansion 15%
2500
SEB , 85% 2000 2008 -17 CAGR 8% 1500
1000
1,501
500 703
0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Sales(M RMB)
Titre présentation & date 4 Focus on Cookware with innovation
New design pressure cooker Material Mix Tefal Clipso Pressure Cooker Piles on series Easy pouring with 7 security systems Experience 单手操作，简便省力，安全耐用
2014 2015 2016 2017 2018
ALL Clad Sets 智巧可叠 Smart series NEW TS SS Fry pan Titanium Plasma 高硬度高耐磨且耐铁铲 多层叠加，节省空间、方便储存 made with cast aluminum
Cross fertilization with Groupe SEB on coatings, materials, Thermospot, Ingenio and industrial processes Titre présentation & date 5 Rolling-out OPS to drive constant savings
WORKSHOP QCC LEAN Six Sigma S Q Type of OPS E C project I D 200/Year 20/Year 20/Year 20/Year
PCO+ LEAN savings above 40M RMB in 5 years 12000 Save KRMB 10000 8000 6000 4000 2000 0 Y2013 Y2014 Y2015 Y2016 Y2017 Titre présentation & date 6 Constant improvement in productivity
Output value per person :KRMB/Year Output volume per person：KPCS/Year
2013 -17 CAGR 7.2% 2013 – 17 CAGR: 7.4% 800 16.0
700 14.0
600 12.0
500 10.0
400 8.0
300 6.0
200 4.0
100 2.0
0 0.0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Titre présentation & date 7 Quality assurance system
10 labs and 80 testing machines in 727m2. A professional quality control team of 63 people
Area & team Test range
All cookware test for global ranges qualification Food safety testing
GS.CE certificate Pressure cooker UL certificate Titre présentation & date 8 Outstanding management system to ensure sustainable development
Was recognized by Quality/Environment/Occupational health and safety systems as from 2004.
Titre présentation & date 9 Repeatedly praised
2013~2017 Julong Enterprises Award in Yuhuan city 2014 Zhejiang Famous brands 2014 Top 100 innovation on technology enterprises in Zhejiang 2015 High-tech personnel cultivation site in Taizhou 2015 Customers’Favorite Brand in China 2017 Certified by Zhejiang Made 2018 Famous Brand of Export in Zhejiang
Titre présentation & date 10 Reliable quality and social responsibility
Business No Audit Catalogs Customer Audit Date Result Dept. 1 Quality H. Kellermann GmbH & Co. KG 1.29 PASS NSEB 2 Quality 卓艺餐具用品（深圳）有限公司 3.28 PASS NSEB 3 Social responsibility Q.E.I.LIMITED 4.3 PASS NSEB
4 Anti-terrorist Marks and spencer 4.24 PASS NSEB
5 Social responsibility BIRGMA ASIA TRADING LIMITED 5.30 PASS NSEB 6 Social responsibility AMAZON EU SARL 6.1 PASS NSEB Anti-terrorist& 7 COSTCO 6.4 PASS SEB Social responsibility 8 Quality Walmart 8.2 PASS SEB 9 Quality AMAZON EU SARL 8.2-8.3 PASS NSEB 10 Social responsibility BSCI 8.8-8.9 PASS NSEB 11 Anti-terrorist WM SCAN 9.21 PASS SEB
Titre présentation & date 11 Constant improvement on safety
Organization Training Inspection Rewards VCS
Improved security Ensure all personnel involved All personnel are involved Establish a review and Managers and workers jointly management structure in safety training in safety inspection evaluation mechanism for promote safety improvement continuous safety improvement. 70 60 Minor injuries numbers reduced every year 50 40 30 20 10 0 Y2010 Y2011 Y2012 Y2013 Y2014 Y2015 Y2016 Y2017 Titre présentation & date 12 Constant improvement in environment protection Using electrical power Revamping of electric Using low energy Direct gas heating Solar and air energy compensation device heating equipment consumption equipment system utilization
0.2 0% Unit：TCE/10KRMB -2% -4% 0.15 -3% -3% -5% -3% -8% -6% -8% 0.1 -7% -13% -10% -12% -16% 0.05 -14% -16% 0 -18% 2010 2011 2012 2013 2014 2015 2016 2017 2018 Titre présentation & date 13 Stable team as a key pillar Total employees 2,152 in Oct.2018. Skill certificated workers take up 25%
≧20years: 9%
10Y~20Y: 20%
5Y~10Y: 25%
Titre présentation & date 14 Employee care & growing
Titre présentation & date 15 Employee care & growing
Titre présentation & date 16 Visiting route & reminder
For your Health &Safety B3： B1 & B2： ： B6 Warehouse Manufacturing 3 Manufacturing 1 Please Walk the Test sidewalk center 请走人行道
Please wear the PPE B7 Showroom S 请佩戴PPE Manufacturing B11 2 FDC
Please don't touch the product B10 P&R 勿擅自触碰在制品 B8 P&R Manufacturing 2 No photos 禁止拍照
Titre présentation & date 17 Thank You！
Titre présentation & date 18