Slide 1: Interim Report 1 October 2019–30 June 2020
Interim Report 1 October 2019–30 June 2020 4 August 2020 CEO David Rönnberg CFO Robert Berglund
Slide 2: Agenda
Agenda • Group development • Segments • Financials and market outlook Musti Group | Interim report October 2019–June 2020 2
Slide 3: Strong profitable growth
Strong profitable growth Musti Group | Interim report October 2019–June 2020 3
Slide 4: Highlights in Q3/2020
Highlights in Q3/2020 • Group net sales totaled EUR 68.8 million (59.0 million), an increase of 16.6%. • Like-for-like sales growth was 11.5%. • Adjusted EBITA increased to EUR 6.4 (4.2) million, up by 54.3%. • Adjusted EBITA margin was 9.3% (7.1%). • Operating profit increased by 113.3% to EUR 4.2
Slide 5: Effects of COVID-19 on Musti's operations in Q3/2020
Effects of COVID-19 on Musti’s operations in Q3/2020 • Keeping staff and customers safe and maintaining the ability to deliver high- quality service have continued to be the top priorities during the third quarter. • Challenging societal and economic conditions proved the resilience of Musti’s busin
Slide 6: Q3: Net sales increased by 16.6% mainly driven by the increasing number of new customers
Q3: Net sales increased by 16.6% mainly driven by the increasing number of new customers Net sales and like-for-like growth Net sales: rolling 12 months Net sales by segment in Q3/2020 272 11% 13% 8% 15% 12% 246.6 10% 70.3 68.4 68.8 64.5 59.0 46% 44% Finland Sweden Norway Q3/19 Q4/19 Q1/20 Q2/20 Q3/
Slide 7: Q3: Adjusted EBITA increased by 54.3%
Q3: Adjusted EBITA increased by 54.3% Operating profit1, EUR million Adjusted EBITA, EUR million 5.0 • Adjusted EBITA increased by 14.0 % 4.2 4.5 54.3%to EUR 6.4 million 7.0 6.4 and adjusted EBITA margin was 14.0 % 4.0 12.0 % 9.3%. 6.0 12.0 % 3.5 The improvement was mainly due 10.0 % • 5.0 to an inc
Slide 8: Segments
Segments Musti Group |Interim report October 2019–June 2020 8
Slide 9: Finland: Strong net sales and result development in Q3
Finland: Strong net sales and result development in Q3 • Net sales increased by 10.0% to EUR 32.0 Net sales, EUR million, Adjusted EBITA, million driven by like-for-like growth of like-for-like growth, % EUR million and % 6.2% and growth from the stores opened 40. 0 % or acquired during the latest t
Slide 10: Sweden: Strong profitability with 68.1% growth in adjusted EBITA in Q3
Sweden: Strong profitability with 68.1% growth in adjusted EBITA in Q3 • Net sales increased by 16.8% to EUR Net sales, EUR million, Adjusted EBITA, 30.1 million driven by like-for-like like-for-like growth, % 4 EUR million and % 25. 0 % growth of 13.0%. Both stores and online generated strong like-
Slide 11: Norway: Strong sales growth with clear EBITA margin improvements
Norway: Strong sales growth with clear EBITA margin improvements • Net sales increased by 62.9% to EUR Net sales, EUR million, Adjusted EBITA, 6.6 million, driven by strong like- like-for-like growth, % EUR million and % for-like growth of 44.8% and ramp- 1.0 up of new stores. 35.0% 44.8% • Adjusted
Slide 12: Financials and market outlook
Financials and market outlook Musti Group | Interim report October 2019–June 2020 12
Slide 13: Net cash flow from operating activities decreased to EUR 2.2 million in Q3
Net cash flow from operating activities decreased to EUR 2.2 million in Q3 Cash flow from operating • Net cash flow from operating activities totaled EUR 2.2 (11.1) million. activities, EUR million Gearing, % • Gearing at the end of the reporting period 12 11.1 200 .0 % was 73.3% (30 September 2019:
Slide 14: Market outlook and financial targets
Market outlook and financial targets Musti believes that the trends driving the pet care market, such as the pet parenting megatrend and pet Financial targets population growth, will remain robust also during and Sales to reach at least EUR 350 million by the after the coronavirus pandemic. Growth f
Slide 15: Summary
Summary • Very strong third quarter of the financial year 2020. • Net sales grew by 16.6% to EUR 68.8 million. The increase was largely due to like-for-like growth of 11.5%, mainly driven by the increasing number of new customers joining the existing loyal customers. • Online sales increased by 36.7
Slide 16: Thank you!
More information Financial Statements release David Rönnberg, CEO October 2019– +46 70 896 6552 david.ronnberg@mustigroup.com September 2020 will be published on Robert Berglund, CFO 12 November +358 50 534 8657 robert.berglund@mustigroup.com 2020 Essi Nikitin, Head of IR and Communications +358 50
Slide 17: Appendix
Appendix Musti Group | Interim report October 2019–June 2020 17
Slide 18: Musti – the leading Nordic pet care specialist
Musti – the leading Nordic pet care specialist Leading Nordic Wide loyalty program Omnichannel business pet care specialist >1 million loyal customers, model2 #1 in Nordics, unique rich data on Nordic 290 stores, 22% market share1 pets and Pet Parents 20.7% of net sales generated through online chan
Slide 19: Strategic focus on Pet Parents across the Nordic countries
Strategic focus on Pet Parents across the Nordic countries MISSION We make the life of pets and their parents easier, safer and more fun. SEGMENTS Finland Sweden Norway Stable development as Further expansion and Store rollout with strong the most mature country convergence in efficiency ramp up and
Slide 20: Key figures
Key figures Q3 Q3 EUR millions or as indicated Change% 10/19– 10/18– Change% FY2019 4–6/20 4–6/19 6/20 6/19 Net sales 68.8 59.0 16.6 207.5 182.1 13.9 246.6 LFL sales growth, % 11.5% 11.3% 11.2% 10.8% 11.2% LFL store sales growth, % 4.3% 9.0% 7.1% 7.4% 7.8% Online share, % 25.0% 21.3% 22.7% 20.9% 20.
Slide 21: Over 1 million loyal customers
Over 1 million loyal customers 129 stores of which 111 directly = Own stores operated • Number of loyal customers = Franchise stores 123 stores increased to 1,107 thousand (979 of which 78 thousand on 30 June 2019) directly operated • At 30 June 2020 Musti had 290 stores (274), of which 227 (203) we
Slide 22: Musti offers the winning concept geared towards modern Pet Parents
Musti offers the winning concept geared towards modern Pet Parents Trusted expert advice High quality offering Omnichannel business model Growing suite of services • 93% of Musti’s staff are pet • Diverse, high quality • Seamless omnichannel • Hair and nail trimming parents themselves offering with
Slide 23: Responsibility at Musti
Responsibility at Musti We make the life of pets and their parents easier, safer and more fun. As a forerunner in our market, we want to do it responsibly. For us, this means putting the welfare of pets and people first, having high standards for quality, safety and expertise, as well as always look
Slide 24: 30-year track record – from traditional pet retail to full omnichannel
30-year track record – from traditional pet retail to full omnichannel 247 Net sales (EUR million) 216 170 145 103 Operational • Customer-centricity • Concept development • eCommerce focus platform and • Leveraging • Own brand products omni features customer data 78 25 FY1988 FY2010 FY2014 FY2015 FY