Tokmanni Group Oyj · OMXHEX:TOKMAN
Tokmanni Group Oyj — Q4 2020 Earnings Presentation
26 slides from Tokmanni Group Oyj's earnings presentation, Feb 12, 2021
Slide 1: Q4/2020 and year 2020 results
– Mika Rautiainen, CEO | Markku Pirskanen, CFO | 12 February 2021 1 12.2.2021
Slide 2: Q4/2020 highlights
• Revenue grew by 14.6% (6.1%) and was EUR 326.5 million (284.8) • Like-for-like revenue for stores grew by 13.4% (3.1%) • Comparable gross was margin 36.8% (35.2%) • Comparable EBIT amounted to EUR 45.3 million (32.0), 13.9% of revenue (11.2%) • Cash flow from operating activities amounted to EUR 8
Slide 3: Year 2020 highlights
• Revenue grew by 13.6% (8.5%) to EUR 1,073.2 million (944.3) • Like-for-like revenue grew by 12.3% (4.3%) • Comparable gross margin was 34.6% (34.4%) • Comparable EBIT amounted to EUR 100.2 million (70.4), representing 9.3% of revenue (7.5%) • Cash flow from operating activities was to EUR 151.1 mi
Slide 4: Q4/2020 and year 2020
4 12.2.2021 / TOKMANNI - Q4/2020 ja vuosi 2020
Slide 5: Year 2020 highlights: customers, profitability, responsibility
Best place to work in retail ASIAKKAAT Best customer satisfaction in retail LIIKEVAIHTO 1 billion € KANNATTAVUUS Comparable EBIT margin VASTUULLISUUS Tokmanni values people and environment 5 12.2.2021 / TOKMANNI - Q4/2020 and year 2020
Slide 6: Employee safety and wellbeing
• Special attention to Tokmanni employees safety (17 coronavirus infections) • Decision in March: no layoffs • 397 new employees were recruited • EUR 3.7 million bonuses paid for all employees • 3,400 employees participated in Tokmanni trainings 6 12.2.2021 / TOKMANNI - Q4/2020 ja vuosi 2020
Slide 7: Safe and easy shopping in stores
• Safe and easy shopping in Tokmanni’s stores • Investment in low prices and wider assortment • Tokmanni’s customer service was highly appreciated • Customers visits grew by 3.2% and average basket 10.1% • Share of new customer 20% • Online sales grew by 124%: leisure, garden, cosmetics 7 12.2.2021
Slide 8: Assortment and low prices boosted revenue
• Tokmanni’s continuous work to expand and improve the assortment boosted revenue • The lowest price level continued to strengthen our customer confidence • Focus on employee satisfaction and customer service improved our customer experience • Tokmanni – the most trusted discounter brand in Finlan
Slide 9: Efficiency and productivity improvements
– • Sales growth improved efficiency and productivity • Store and supply chain efficiency improved significantly • Every Day Low Cost – continuous work for successful discounter retail • Tokmanni’s systematic work to improve company efficiency and productivity are bringing results 9 12.2.2021 / TOKM
Slide 10: Sustainability initiatives
• Tokmanni made several initiatives to support various charity organisations • We set ambitious science-based climate targets in line with 1.5c degrees and improved our Carbon Disclosure Project (CDP) rating • We signed the Bangladesh Accord on Fire and Building Safety which works towards increasing
Slide 11: Sales development vs non-grocery market
Sales development, % 20,0 19,2 16,0 12,0 14,6 10,2 13,1 11,0 8,0 10,9 9,9 7,8 8,0 8,3 5,8 7,6 4,0 6,1 4,5 4,4 3,6 3,9 4,0 2,3 0,0 1,9 1,4 1,6 0,6 1,1 -0,1 -1,1 -1,9 -4,0 -2,9 -8,0 -7,4 -7,0 -9,0 -12,0 -11,0 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/
Slide 12: Financials
12 12.2.2021
Slide 13: Revenue and comparable EBIT
1073,2 160,0 1 000,0 944,3 140,0 870,4 800,0 120,0 100,2 100,0 600,0 80,0 70,4 400,0 60,0 326,5 51,9 268,4 284,8 45,3 40,0 200,0 32,0 25,3 20,0 0,0 0,0 Q4/2018 Q4/2019 Q4/2020 2018 2019 2020 Revenue, MEUR Comparable EBIT, MEUR 13 12.2.2021 / TOKMANNI - Q4/2020 and year 2020
Slide 14: Comparable gross margin
• Gross margin fluctuated heavily during 2020 371,6 325,3 • In Q4/2020, comparable gross margin was 36.8% (35.2%) • In 1-12/2020, comparable gross margin was 34.6% (34.4%) 120,3 100,1 • Import-related freight costs were about 0.8% 35,2 % 36,8 % 34,4 % 34,6 % of revenue Q4/2019 Q4/2020 2019 2020 Comp
Slide 15: Private label share of sales
2020 (2019) 31,8 % (31,7 %) 68,2 % (68,3 %) Q4/2020 Private label’s share of sales was 34.3% (33.6%) 15 12.2.2021 / TOKMANNI - Q4/2020 and year 2020 * Includes private label products, products of exclusive distribution and non-branded products
Slide 16: Q4/2019 Q4/2020 12.2.2021 / TOKMANNI - Q4/2020 and year 2020
29,9 % 28,6 % 25,6 % 26,6 % 11,3 11,8 10,2 10,6 16,8 18,6 16,5 15,0 Q4/2019 Q4/2020 2019 2020 16 12.2.2021 / TOKMANNI - Q4/2020 and year 2020
Slide 17: Operating expenses well in control
• Operating expenses were well in control in Comparable operating expenses, challenging environment MEUR • The largest item in operating expenses was 210,9 197,9 personnel expenses – Personnel expenses were EUR 122.1 million (114.0), or 11.4% of revenue (12.1%) – Higher sales volumes – Extra personn
Slide 18: Comparable EBIT margin and EBIT
Comparable EBIT margin, % 13,9 11,2 9,3 7,5 Q4/2019 Q4/2020 2019 2020 Comparable EBIT, MEUR Q4/2019 Q4/2020 2019 2020 32,0 45,3 70,4 100,2 18 12.2.2021 / TOKMANNI - Q4/2020 and year 2020
Slide 19: Cash flow and financial position
• Cash flow was EUR 151.1 million (84.0) Inventories, MEUR – Improved net result and good inventory management 222,8 225,7 • Cash and cash equivalents were EUR 78.1 million (29.1) at the end of 2020 • Interest-bearing debt totalled EUR 410.9 million (409.3), including EUR 100.0 million (100.0) in co
Slide 20: Net capital expenditure
• Some of the investments planned for 2020 were Net capital expenditure, MEUR postponed until 2021 due to the coronavirus pandemic 15,4 • Capital expenditure mainly focused on the expansion and development of store network 12,8 • Capital expenditure in 2021 is expected to be around EUR 16–18 million
Slide 21: 12.2.2021 / TOKMANNI - Q4/2020 and year 2020
21 12.2.2021 / TOKMANNI - Q4/2020 and year 2020
Slide 22: Revenue 2010-2020
1073 944 870 796 776 755 734 713 692 656 635 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Revenue, MEUR 22 12.2.2021 / TOKMANNI - Q4/2020 and year 2020
Slide 23: Outlook for 2021
• The behaviour of Tokmanni's customers and thus the future prospects will be strongly influenced by the coronavirus pandemic and the development of its treatment in 2021. • In the current circumstances, Tokmanni forecasts slight growth in revenue for 2021. • Group profitability measured in euros (c
Slide 24: Long-term growth targets and progress
Tokmanni aims for stable and profitable long-term growth Like-for-Like revenue growth Like-for-like revenue grew by 12.3% Over 200 stores 192 stores, 1 new store, net New about 5 p.a. 12 000 sqm annually Selling area increase by about 7,000 square meters, net Comparable EBIT margin 9% Comparable EBI
Slide 25: Invitation to virtual CMD
You are warmly welcome to Tokmanni’s virtual CMD to hear more about the elements of Tokmanni’s future growth and its revised strategic targets. More information: https://ir.tokmanni.fi/en/investors 25 12.2.2021 / TOKMANNI - Q4/2020 and year 2020
Slide 26: Investor relations contact
ir@tokmanni.fi | tokmanni.fi 26 12.2.2021