Slide 1: Half Year Financial Report 2016
HALF YEAR FINANCIAL REPORT 2016 Stockmann Group | 12 August 2016
Slide 2: Agenda
AGENDA STRATEGY & Q2 2016 PERFORMANCE GROUP AND STOCKMANN RETAIL – LAURI VEIJALAINEN REAL ESTATE – BJÖRN TEIR LINDEX – INGVAR LARSSON STOCKMANN 12.8.2016 2
Slide 3: Highlights in Q2 2016
HIGHLIGHTS IN Q2 2016 • Fifth consecutive quarter when the Stockmann Group’s operating result improved Gross margin • Lindex achieved its all-time high second quarter revenue and result: 54.5% operating profit EUR 28.1 million (EUR 18.6 million) • Stockmann’s own offering is now fully focused on fas
Slide 4: Growth by focusing on key product areas: new women's accessories in Helsinki flagship
GROWTH BY FOCUSING ON KEY PRODUCT AREAS: NEW WOMEN’S ACCESSORIES IN HELSINKI FLAGSHIP • High engagement product category inside the largest product area, fashion • Modern inspiring shopping environment • Differentiation from competition: • New premium brands in own selection, some not available earl
Slide 5: Targeting a positive EBIT for retail in 2018
TARGETING A POSITIVE EBIT FOR RETAIL IN 2018 EFFICIENCY NEW LEANER NEW DISTRIBUTION PROGRAMME ORGANISATION CENTRE – New support functions with – Headcount to be reduced with – Annual cost savings EUR 5.5 personnel reductions in 2015 around 300 people in Finland million, or EUR 3.5 including and spri
Slide 6: New leaner structure and organisation
NEW LEANER STRUCTURE AND ORGANISATION • Management Teams of the Stockmann Group and Stockmann Retail were merged in June • Directors for Store Operations, Delicatessen, Supply Chain and Human Resources appointed • Target is to considerably flatten the organisational structure, eliminate overlaps and
Slide 7: Group's financial performance in Q2 2016
GROUP’S FINANCIAL PERFORMANCE IN Q2 2016 • Revenue EUR 352.7 million (EUR 351.0 million) QUARTERLY REVENUE – In continuing product areas and businesses, revenue was up by 6.8% EUR mill. – Up 12.6% in Finland due to the timing of the Crazy Days campaign 500 – Up 2.5% in other countries due to good gr
Slide 8: Key figures
KEY FIGURES 1–6/2016 1–6/2015 1-12/2015 Equity ratio % 46.0 44.6 46.1 Gearing % 76.2 85.3 72.1 Net financial costs EUR mill. 8.9 9.1 21.2 Result for the period EUR mill. -33.3 -59.3 -88.9 Earnings per share EUR -0.50 -0.82 -1.24 Net earnings per share, EUR -0.35 -0.94 -2.43 including discontinued op
Slide 9: Market environment and outlook for 2016
MARKET ENVIRONMENT AND OUTLOOK FOR 2016 • Economic situation continued to be uncertain in Finland: low consumer purchasing power, retail market environment continued to be weak • Relatively stable development expected in Sweden, Norway and the Baltic countries • Overall increasing competition in all
Slide 10: Stockmann Retail
STOCKMANN RETAIL STOCKMANN 12.8.2016 10
Slide 11: Actions to secure sales development
ACTIONS TO SECURE SALES DEVELOPMENT Focus on first-class customer experience in fashion, beauty, food and home products Improving selection in New stockmann.com Refurbishing key product areas • Revamped online store store premises • Major changes in product to be launched in the • Women’s accessorie
Slide 12: Stockmann Retail in Q2 2016
STOCKMANN RETAIL IN Q2 2016 • Revenue EUR 168.7 million (EUR 169.2 million) QUARTERLY REVENUE – Revenue up 10.8% in continuing product areas and businesses due to the timing of the Crazy Days campaign in Finland EUR mill. 300 • Gross margin 40.2% (40.2%) 200 – Excluding the effect of the Crazy Days
Slide 13: Real Estate
REAL ESTATE STOCKMANN 12.8.2016 13
Slide 14: Broadening offering in the department stores
BROADENING OFFERING IN THE DEPARTMENT STORES • RECENT OPENINGS – Isku-Vallila-Värisilmä home decoration shop in the Helsinki Book Building – UMA Esplanadi co-working place operated by Techopolis in the Helsinki Book Building – Smörre Gastrobar in Helsinki flagship store – Rebranded Power electronics
Slide 15: Real Estate in Q2 2016
REAL ESTATE IN Q2 2016 • Fair value of the properties QUARTERLY REVENUE – 1 January 2016: EUR 918.2 million EUR mill. – 30 June 2016: EUR 909.5 million 20 – Nevsky Centre treated as an investment property and not depreciated 15 • Occupancy rate 96.7% (99.2%) 10 – Lower occupancy rate in Tallinn due
Slide 16: Lindex
LINDEX STOCKMANN 12.8.2016 16
Slide 17: Highlights in Q2 2016
HIGHLIGHTS IN Q2 2016 • Lindex achieved its all-time high Q2 revenue and result – Operating profit up EUR 9.5 million • Successful collections and campaigns – Positive sales development particularly in Sweden, Norway and Finland – Greater clarity in women’s wear concept and collections – Successful
Slide 18: International expansion
INTERNATIONAL EXPANSION • Store network on 30 June 2016: – 479 stores in 17 countries, 4 61 of which 38 franchising stores 102 – 2 new stores opened in Q2 2016 – 6 stores closed in Q2 2016 209 10 9 • Target for 2016: 8 – Total number of stores to decline 2 5 – All stores in Russia now closed 26 9 3
Slide 19: Lindex in Q2 2016
LINDEX IN Q2 2016 • Revenue up 0.6% to EUR 175.6 million (EUR 174.6 million) QUARTERLY REVENUE – At comparable exchange rates up 3.4%, or 4.3% in comparable stores EUR mill. – All-time high sales in Q2 200 150 • Gross margin 65.0% (62.9%) 100 – Increase due to lower markdowns and the timing of the m
Slide 20: Strong autumn campaigns to come
STRONG AUTUMN CAMPAIGNS TO COME • Women’s wear Fall Fashion Heroes, including an extended size range for all concepts • Own design collection in October where 10% of sales goes to the fight against breast cancer • Introduction of Holly & Whyte for kids wear STOCKMANN 12.8.2016 20
Slide 21: Further information
FURTHER INFORMATION: www.stockmanngroup.com investor.relations@stockmann.com STOCKMANN 12.8.2016 21