Slide 1: Stockmann Group Interim Management Statement Q3 2023
Stockmann Group Interim Management Statement Q3 2023 Susanne Ehnbåge, CEO Annelie Forsberg, CFO 27 October 2023
Slide 2: Agenda
STOCKMANN GROUP Agenda • Business update • Financial development • Way forward • Q&A 2 27.10.2023
Slide 3: Business update
Business update 3
Slide 4: Stockmann commenced a strategic assessment
BUSINESS UPDATE Stock Exchange Release 25 Sep 2023 Stockmann commenced a strategic assessment • Crystallising shareholder value by refocusing the Group's business on Lindex – Lindex generates over two thirds of Stockmann Group’s revenue – Lindex is the main profit contributor in the Group • Stockman
Slide 5: Q3: Continued strong performance for Lindex
BUSINESS UPDATE Group’s revenue, EUR million Q3: Continued strong performance for Lindex; Stockmann Group’s third 226.9 (244.0) quarter adjusted operating result decreased slightly Group’s adjusted operating result, EUR million • Group’s revenue decreased due to negative currency impact and timing o
Slide 6: Lindex division
BUSINESS UPDATE Lindex division • Strong performance with significant profitability improvement • In local currencies, increased sales in all main markets and categories - womenswear the best performing category • Share of digital sales continued to increase, 19.4% (17.8) of Lindex’s sales • Growing
Slide 7: Stockmann division
BUSINESS UPDATE Stockmann division • The timing of the Crazy Days was the key reason for the Stockmann division's revenue decline • After the review period, the Crazy Days campaign performed well both in the department stores and online • Itis department store redesign finalised in early September,
Slide 8: Financial development
Financial development 8 27.10.2023
Slide 9: Lindex division – Development in Q1–Q3
FINANCIAL DEVELOPMENT Lindex division – Development in Q1–Q3 QUARTERLY REVENUE QUARTERLY OPERATING RESULT Adjusted EUR mill. EUR mill. 200 188.0 39.0 36.2 176.2 168.9 166.9 177.8 172.2 40 162.0 162.3 32.3 31.2 150 134.0 30 26.2 24.3 23.0 126.5 22.5 20 98.7 100 10 5.5 5.6 50 0 -10 -7.6 0 -20 1-3 4-6
Slide 10: Stockmann division – Development in Q1–Q3
FINANCIAL DEVELOPMENT Stockmann division – Development in Q1–Q3 QUARTERLY REVENUE QUARTERLY OPERATING RESULT EUR mill. Adjusted EUR mill. 120 15 99.7 100.4 100 10 6.3 81.0 75.8 77.1 80 72.0 68.9 5 3.3 62.2 66.0 64.7 0.2 0 56.9 60 0 -1.5 40 -5 -4.0 -3.5 -4.8 20 -10 -7.3 -7.0 -15 -12.1 0 1-3 4-6 7-9 1
Slide 11: Stockmann Group – Development in Q1–Q3
FINANCIAL DEVELOPMENT Stockmann Group – Development in Q1–Q3 EUR mill. QUARTERLY REVENUE EUR mill. QUARTERLY OPERATING RESULT Adjusted 300 277.5 272.6 40 35.4 32.9 269.0 31.6 252.0 244.0 29.6 30 26.8 26.1 228.0 237.8 22.0 20.6 226.9 198.5 196.1 20 200 155.7 10 0 -2.4 100 -10 -3.7 -20 -21.1 0 -30 1-3
Slide 12: Profitability level of divisions
STOCKMANN GROUP Profitability level of divisions Lindex impacted by exchange rates and Stockmann division by the Crazy Days timing EUR mill. Adjusted operating result rolling twelve months 120 100.0 100 93.3 91.3 90.0 90.0 91.0 87.3 80.3 80 70.8 62.1 60 47.1 40.9 42.9 39.6 40 36.2 33.5 20 2.9 0 -1.8
Slide 13: Total cash flow in Q3 and YTD 2023
STOCKMANN GROUP Total cash flow in Q3 and YTD 2023 EUR mill. EUR mill. 200 350 180 46 300 124 160 140 133 -30 250 -33 120 108 -25 03 200 100 -18 168 -02 00 -75 150 80 -48 108 60 100 -20 -06 -04 40 50 20 00 00 s ash nts A ash ng C nts r A ash nts s ash nts ng C r the axe the axe in W ITD in W ITD uri
Slide 14: Improved financial position – positive net debt
STOCKMANN GROUP Improved financial position – positive net debt Cash Conversion of unsecured Divestment of the EUR 108.0 mill. debt to senior secured bonds property in Tallinn (140.2) EUR mill. Divestment of the 200 property in Riga 100 119 100 73 61 36 36 Interest-bearing 0 liabilities (excl. IFRS)
Slide 15: Equity ratio further improved: +58.8% excl IFRS
STOCKMANN GROUP, BALANCE SHEET ITEMS Equity ratio further improved: +58.8% excl IFRS % 60 50 40 30 20 10 0 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Incl. IFRS Excl. IFRS 30.9.2023 30.9.2022 31.12.2022 Equity EUR mill. 364
Slide 16: Way forward
Way forward 16 27.10.2023
Slide 17: Lindex division – Continue to grow and transform
WAY FORWARD Lindex division - Continue to grow and transform • Multichannel development for global growth – Customer-oriented sustainable assortment and strong brand offerings – Growth in new and existing markets and channels • Continue our femtech journey, explore circular business models and new c
Slide 18: Stockmann division – Strengthen customer-centricity and improve profitability
WAY FORWARD Stockmann division - Strengthen customer-centricity and improve profitability • Customer-centric growth – Touch of luxury – new partners and brands to strengthen premium positioning – Value-driven development of loyalty programme – Development of department stores into inspiring destinat
Slide 19: Market Outlook for 2023
WAY FORWARD Market Outlook for 2023 • The current challenging geopolitical situation and the high inflation level are expected to continue. However, inflation is predicted to slow down compared to the latter part of the year 2022. The inflation together with high interest rates, is forecast to have
Slide 20: Guidance for 2023
WAY FORWARD Guidance for 2023 (unchanged) • In 2023, Stockmann expects the Group’s revenue to be in the range of EUR 940–1 000 million and the Group’s adjusted operating result to be EUR 65–85 million, subject to foreign exchange rate fluctuation. • The guidance is based on the assumption that the c
Slide 21: Welcome to the Stockmann Group's CMD
CAPITAL MARKETS DAY 2023 Welcome to the Stockmann Group’s CMD • 16 Nov 2023 at 13:00−16:30 EET in Allas Sea Pool and live webcast • Agenda: strategies and future ambition levels for both divisions • Sign up to Allas Sea Pool by 9 Nov 2023 via investor.relations@stockmann.com 21 27.10.2023
Slide 22: Q&A Further information
Q&A Further information stockmanngroup.com investor.relations@stockmann.com 22 27.10.2023