Slide 1: Half Year Financial Report 2018
HALF YEAR FINANCIAL REPORT 2018 Stockmann Group | 16 August 2018
Slide 2: Q2 2018 in Brief
Q2 2018 IN BRIEF Group’s gross margin • Stockmann Group 58.2% – Adjusted operating result up by EUR 9.3 million – Strong performance at Lindex (56.1) • Lindex – Comparable sales up 4.5%, gross margin up by 3.1 %-points Group’s adjusted – Adjusted operating result up by EUR 8.3 million operating prof
Slide 3: Stockmann Group, Financial Performance in Q2 2018
STOCKMANN GROUP, FINANCIAL PERFORMANCE* IN Q2 2018 • Revenue down by 0.6%, to EUR 279.4 million (281.3) QUARTERLY REVENUE – Up in Lindex and Real Estate, down in Stockmann Retail EUR mill. – Weakened SEK exchange rate had a negative impact on the revenue 400 300 • Gross margin 58.2% (56.1%) 200 – Up
Slide 4: Rolling 12-Month Adjusted Operating Profit (EBIT)
ROLLING 12-MONTH ADJUSTED OPERATING PROFIT (EBIT) EUR mill. 40 30 20 10 0 -10 -20 -30 1-12 4/2015- 7/2015- 10/2015- 1-12 4/2016- 7/2016- 10/2016- 1-12 4/2017- 7/2017- 2015* 3/2016* 6/2016* 9/2016* 2016 3/2017 6/2017 9/2017 2017 3/2018 6/2018 STOCKMANN * 2015 includes Delicatessen in Finland 16.8.201
Slide 5: Key Figures
KEY FIGURES Q2/2018 Q2/2017 1-6/2018 1-6/2017 1-12/2017 Equity ratio % 45.7 46.9 43.0 Net gearing % 72.7 76.5 83.8 Net financial items* EUR mill. -8.8 -10.8** -17.5 -15.4** -31.1** Result for the period* EUR mill. 8.0 -1.1 -22.9 -28.0 -198.1*** Earnings per share* EUR 0.09 -0.03 -0.35 -0.42 -2.82***
Slide 6: Net Debt Clearly Down
NET DEBT CLEARLY DOWN IN Q2 2018 Divestment of Book House, EUR mill. working capital release and 900 improved profitability 800 Decline by EUR 178.5 mill. 700 600 500 400 300 200 100 0 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 STOCKMANN 16.8.2018 6
Slide 7: Market Environment and Outlook for 2018
MARKET ENVIRONMENT AND OUTLOOK FOR 2018 • Good GDP development and consumer confidence expected to continue in Finland and Sweden in 2018 • Purchasing behaviour changing due to digitalisation and increasing competition, which affects the fashion market negatively – In the first half of 2018, fashion
Slide 8: Lindex
LINDEX
Slide 9: Lindex, Highlights in Q2 2018
LINDEX, HIGHLIGHTS IN Q2 2018 • Increased sales in all markets and channels – Increased traffic, number of customers and average purchase • Continued very strong sales development in the online store • Improved customer offer having a positive impact on sales and gross margin development • Strong pr
Slide 10: Lindex, Financial Performance in Q2 2018
LINDEX, FINANCIAL PERFORMANCE IN Q2 2018 • Revenue up by 1.0% to EUR 163.8 million (162.1) QUARTERLY REVENUE – Same-store sales at comparable exchange rate up by 4.5% EUR mill. – Growth in all markets 200 • Gross margin 63.7% (60.6%) 150 – Up due to decreased markdowns 100 50 • Operating costs inclu
Slide 11: Lindex Store Network
LINDEX STORE NETWORK • Store network on 30 June 2018 7 62 – 484 stores in 18 countries, 100 of which 44 franchising stores – 6 stores opened and 8 closed 205 9 in Q2 2018 10 9 • Stores & markets in 2018 2 2 – Focus on optimising store locations 29 – Unprofitable stores will either move 12 to new loc
Slide 12: Lindex Way Forward
LINDEX WAY FORWARD • Profitability improvement program proceeding with full speed – Continuing to reduce costs and increase the gross margin – Strong focus on sales and profit improvement • Continued focus on optimising the store concept portfolio • Increased focus and investments in the e-commerce
Slide 13: Stockmann Retail
STOCKMANN RETAIL
Slide 14: Stockmann Retail, Highlights in Q2 2018
STOCKMANN RETAIL, HIGHLIGHTS IN Q2 2018 • Successful Crazy Days campaign in April • Growth in both non-food and food sales in the department stores in Tallinn and Riga • Inventories on a healthy level due to improved inventory management process – Smaller summer clearance sales than in 2017 • New br
Slide 15: Stockmann Retail, Financial Performance in Q2 2018
STOCKMANN RETAIL, FINANCIAL PERFORMANCE* IN Q2 2018 • Revenue EUR 104.7 million (109.1) QUARTERLY REVENUE – Revenue down by 4.0% EUR mill. – Smaller summer clearance sales than in 2017 200 • Gross margin 45.4% (45.8) 150 – Down due to timing of discounts in the clearance sales 100 50 • Operating cos
Slide 16: Strong Focus on Digital Development
STRONG FOCUS ON DIGITAL DEVELOPMENT • Online is Stockmann’s fastest growing sales channel • 56% growth in selection buyable at stockmann.com – Now 60 000 product items (8/2017: 39 000) – Target to significantly increase the number by the end of 2018 • Quicker delivery times and new delivery partners
Slide 17: Real Estate
REAL ESTATE
Slide 18: Real Estate, Highlights in Q2 2018
REAL ESTATE, HIGHLIGHTS IN Q2 2018 • Increased revenue and operating profit – Continued stable performance Stockmann Tallinn: • The Book House property in Helsinki sold in May 2018 25 years in business – Sales price: EUR 108.6 million on 7 June 2018 – Capital gain from the divestment: EUR 7.0 millio
Slide 19: Real Estate, Financial Performance in Q2 2018
REAL ESTATE, FINANCIAL PERFORMANCE IN Q2 2018 • Revenue EUR 17.5 million (16.8) QUARTERLY REVENUE – Higher rent levels in all markets EUR mill. 20 • Net operating income from own properties EUR 12.9 million (12.9) 15 – Average monthly rent EUR 38.58 per sqm (37.39) – Net rental yield in January–June
Slide 20: Real Estate, Stockmann-Owned Properties
REAL ESTATE, STOCKMANN-OWNED PROPERTIES Key figures 30.6.2018 Fair value of properties Gross leasable area 30.6.2018, EUR million 863.3 (GLA) 134 000 sqm, of which 38% in Finland Occupancy rate Helsinki department store Tallinn department store Occupancy rate 99.8 Occupancy rate 98.0 • Department st
Slide 21: Q&A
Q&A STOCKMANN 16.8.2018 21
Slide 22: Further Information
FURTHER INFORMATION STOCKMANNGROUP.COM INVESTOR.RELATIONS@STOCKMANN.COM