Lindex Group Plc Class B · OMXHEX:LINDEX
Lindex Group Plc Class B — Stockmann Group — Investor Day (September 2012)
31 slides from Lindex Group Plc Class B's investor day presentation, Sep 12, 2012
Slide 1: Building up a Fashion Chain Division
Building up a Fashion Chain Division Göran Bille Director, Fashion Chain Division Capital Markets Day, 12 September 2012
Slide 2: Stockmann Group's new structure
Stockmann Group’s new structure Stockmann Group CEO Hannu Penttilä Corporate Management and Administration Fashion Chain Division Department Store Division Director Göran Bille Director Maisa Romanainen CEO CEO Göran Bille Nina Laine-Haaja 2
Slide 3: A strong business division focusing on fashion
A strong business division focusing on fashion Fashion Chain Division 684 stores in 16 countries Share of the Share of the Group’s revenue Group’s EBIT - Lindex 459, Seppälä 223 38% in 2011 55% in 2011 2 online stores: - www.lindex.com - www.seppala.fi 6 500 employees 150+ million visitors in stores
Slide 4: Two unique brands
Two unique brands •! Both the Lindex and Seppälä brands will be further developed •! Clear and differentiated brand identities •! Possibility to reach a wider target group with two brands •! Distinct core customer groups ! Lindex: Women interested in fashion ! Seppälä: Women, younger target group !
Slide 5: Accelerating growth
Accelerating growth •! Both fashion chains aim for a significant sales growth and international expansion •! Attractive brands and successful collections a key driver in achieving growth •! Expansion mainly on current markets ! Seppälä will also look at other countries where Lindex currently operate
Slide 6: Shared resources
Shared resources •! The new structure will strengthen operations – better use of the best resources •! Good experiences from the joint purchasing offices since 2008 •! Now common processes and deeper co-operation in other support functions (finance, IT, logistics, security, HR, CSR, communication et
Slide 7: FCD's action plan for 2012-2013
FCD’s action plan for 2012-2013 •! Consistent change management as a key success factor •! Further developing ways of cooperation and sharing best practices between Lindex and Seppälä – striving for operational excellence •! Finding the best operating model for Finance and IT •! Improving performanc
Slide 8: Focus in the coming years
Focus in the coming years Store Concept Assortment Seppälä Marketing Brand IT IT CSR Planning & Finance Purchasing Finance Security Challenger Synergies Project Communication Store management HR HR Logistics Logistics 8
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Slide 10: Lindex – a world-class fashion experience
Lindex – a world-class fashion experience •! Lindex is one of the leading fashion chains in Europe, with more than 450 stores in 16 countries and online store in 28 European countries •! Business idea is to offer inspiring affordable fashion to fashion-conscious women •! Founded in Alingsås, Sweden
Slide 11: Fashion offering
Fashion offering •! Product range covers a variety of fashion concepts within women’s and children’s wear, lingerie, and cosmetics •! The selection is characterized by well- considered details, the latest fashion trends and a fast turnover of new products •! Products with a high sense of fashion as
Slide 12: Collaboration with famous talents helps to build the fashion image
Collaboration with famous talents helps to build the fashion image •! Latest designer cooperation with the famous Italian fashion house Missoni resulted in a unique collection of 70 fashion items •! Lindex and Missoni cooperate to support breast cancer research •! Collection launch on 25 September 2
Slide 13: Store network – 459 stores in total
Store network – 459 stores in total •! 459 stores on 10 September 2012 ! Sweden 208 ! Norway 97 ! Finland 55 ! Baltic countries 25 ! Russia 21 ! Central Europe (Czech Republic, Slovakia, Poland) 24 ! Franchise 29 •! 13 new stores (net) since the beginning of 2012 ! Including 6 franchise stores •! Li
Slide 14: E-commerce
E-commerce •! Launch in 2007 •! 2011: 28 countries (EU + Norway) •! Multi-channel 24/7 •! Deliveries, exchanges and returns in stores •! Revenue growth +140% since 2008 Revenue 2007 2008 2009 2010 2011 14
Slide 15: Franchising
Franchising •! Since 2008 franchise business in the Middle East •! Since 2010 in the Balkan (Bosnia Herzegovina) •! Since 2011 in Reykjavik, Iceland •! 29 franchising stores in total •! New markets Serbia and Croatia in September 2012 •! Revenue growth +55% since 2009 Revenue 2008 2009 2010 2011 15
Slide 16: Future expansion
Future expansion Expansion in the eastern Central Europe and Russia to continue 2012: around 20 new own stores (incl. 4 Bestseller stores to be converted into Lindex stores in Russia) 2013–2014: target 20 stores annually, including franchise 16
Slide 17: Sustainability
Sustainability •! Lindex works today with tomorrow in mind: we are not only responsible for our products but through our long-term CSR work we also take responsibility for good working conditions, environmental sustainability, ethics, and human rights •! Code of Conduct and follow-up inspections of
Slide 18: 2012 – where are we now
2012 – where are we now •! Strong sales increase in all markets except from Sweden •! Increased market shares in all main markets in January-June •! Gross margin improved thanks to lower purchasing prices ! 62.5% in January-June (61.8%) •! Increased operating profit ! EUR 17.8 million in January-Jun
Slide 19: Market position in Sweden and Norway
Market position in Sweden and Norway Monthly sales growth in 2012 in Sweden Lindex Stores 10.0 HUI Industry total Change % 0.0 JAN FEB MAR APR MAY JUN JUL -10.0 2012 2012 -20.0 Monthly sales growth in 2012 in Norway 20.0 Lindex Stores HSH Industry total 15.0 Change % 10.0 5.0 0.0 -5.0 JAN FEB MAR AP
Slide 20: Focus areas in 2012
Focus areas in 2012 To reach our Vision “A World Class Fashion Experience” the following focus areas are the joint priorities during 2012 20
Slide 21: Slide 21
Slide 22: Seppälä – fashion your own way
Seppälä – fashion your own way •! Seppälä’s mission is to inspire and encourage people to enjoy fashion according to their own style •! Seppälä has 223 stores in 6 countries and an online store in Finland •! Seppälä was founded in 1930 when the first store was opened in Kouvola, Finland •! Seppälä b
Slide 23: Fashion offering
Fashion offering •! Products include fashion for women, men, young people and children as well as accessories, footwear, bags, and cosmetics •! Baby collection was launched in April 2012 •! Seppälä Collections are designed by 16 own designers, which makes up over 5 000 unique Seppälä products per ye
Slide 24: Store network
Store network •! 223 stores on 10 September 2012: ! Finland 137 ! Russia 44 ! Baltic countries 40 •! 4 store openings and 11 closings since the beginning of 2012 •! Closing of the operations in Ukraine by the end of 2012 •! The new FCD structure enables Seppälä to enter new markets in a cost- effici
Slide 25: E-commerce and Seppälä Club
E-commerce and Seppälä Club •! Online store opened in Finland in November 2011 •! First results are promising •! E-commerce has an important role in Seppälä’s expansion strategy •! Seppälä Club operates in 5 countries •! 900 000 Seppälä Club members •! Strong focus on the loyal customer group 25
Slide 26: 2012 – where are we now
2012 – where are we now •! Total revenue up in January-June, best development in the Baltic countries •! Market share increased in Finland from January until May •! Poor performance in Russia particularly in the summer •! Gross margin declined due to price- driven campaigns and markdowns ! 56.5% in
Slide 27: Changes with the new Fashion Chain Division
Changes with the new Fashion Chain Division •! Seppälä Brand renewal •! New ERP and financial systems from Lindex into use •! Synergies – Sharing best practices: Shared resources will accelerate growth and enable more cost efficient operations within Communication, IT, Finance, CSR, HR, Security, an
Slide 28: Where do we come from… Seppälä Heritage
! Seppälä Heritage ! Where do we come from… •! First in the market to introduce international fashion and youth trends •! Strong ideology that fashion is for everyone and everyone can look good •! Attitude and courage •! Unique spirit 28
Slide 29: The Seppälä Brand
The Seppälä Brand •! International focus Seppälä will develop a strong focus for being an international fashion chain, as the Fashion Chain Division opens many new possibilities for further expansion. This strategy will also help Seppälä to succeed in the current markets. •! Brand identity Seppälä’s
Slide 30: The Seppälä Brand
The Seppälä Brand •! Major focus on: ! Assortment strategy The current wide product assortment will be narrowed to respond to the needs of the target group. ! New marketing concept Will strengthen the international strategy and brand identity. ! New store concept A new store concept development is i
Slide 31: Time frame
Time frame 2012 Autumn 2013 Spring 2013 Autumn 2014–2015 •! Brand platform •! First renewals •! Seppälä •! New store •! Target group in collections Woman + By openings definitions can be seen Seppälä •! Entering new •! Assortment •! First step in the •! New marketing countries strategy new marketing