Lindex Group Plc Class B · OMXHEX:LINDEX
Lindex Group Plc Class B — Stockmann Group — Q3 2018 Earnings Presentation
23 slides from Lindex Group Plc Class B's earnings presentation, Oct 26, 2018
Slide 1: Interim Report Q3 2018
INTERIM REPORT Q3 2018 Lauri Veijalainen, CEO Stockmann Group | 26 October 2018
Slide 2: Q3 2018 in brief
Q3 2018 IN BRIEF • Stockmann Group Group’s gross margin – Adjusted operating result up by EUR 7.3 million 58.7% – Lindex nearly doubled its operating profit to EUR 10.8 million • Lindex (56.2) – Comparable sales up 2.7%, gross margin up by 2.2 %-points – Operating result up by EUR 5.3 million Group’
Slide 3: Stockmann Group, financial performance in Q3 2018
STOCKMANN GROUP, FINANCIAL PERFORMANCE* IN Q3 2018 • Revenue down by 3.9%, to EUR 232.5 million (242.0) QUARTERLY REVENUE – Down due to currency effects, up 0.3% in comparable currency rates EUR mill. 400 • Gross margin 58.7% (56.2) 300 – Up both in Lindex and Stockmann Retail 200 • Adjusted operati
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- 10/2017- 2015* 3/2016* 6/2016* 9/2016* 2016 3/2017 6/2017 9/2017 2017 3/2018 6/2018 9/2018 STOCKMANN * 2015 includes Delicatessen in
Slide 5: Key figures
KEY FIGURES Q3/2018 Q3/2017 1-9/2018 1-9/2017 1-12/2017 Equity ratio % 44.9 41.9 43.0 Net gearing % 74.4 95.0 83.8 Net financial items* EUR mill. -7.8 -4.8** -25.4 -20.1** -31.1** Result for the period* EUR mill. -13.8 -158.0*** -36.7 -186.0*** -198.1*** Earnings per share* EUR -0.21 -2.21*** -0.56
Slide 6: Net debt
NET DEBT Divestment Impact of the EUR mill. of the Book sale of Nevsky 900 House Centre, effective in 800 2019 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 Q3/2018 STOCKMANN 26.10.2018 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 Q3 2018, fashion market in Finl
Slide 8: Lindex
LINDEX Susanne Ehnbåge CEO
Slide 9: Lindex, highlights in Q3 2018
LINDEX, HIGHLIGHTS IN Q3 2018 • Continued increase in sales and profitability – Strong autumn season start in all business areas – Increased traffic, number of customers and average purchase • Very strong development in the online store, sales up by 65% • Profitability Programme reaching the savings
Slide 10: Lindex, financial performance in Q3 2018
LINDEX, FINANCIAL PERFORMANCE IN Q3 2018 • Revenue down by 2.8% to EUR 147.0 million (151.1) QUARTERLY REVENUE – Same-store sales at comparable exchange rate up by 2.7% EUR mill. – Growth in all markets except Poland and UK 200 – Increased market share in main markets 150 • Gross margin 62.1% (59.9)
Slide 11: Lindex store network
LINDEX STORE NETWORK • Store network on 30 September 2018 7 61 – 476 stores in 18 countries, 96 of which 41 franchising stores – 4 stores opened and 12 closed 205 9 in Q3 2018 10 9 • Stores & markets in 2018 2 2 – Focus on optimising store locations 29 – Unprofitable stores will either move 12 to ne
Slide 12: Lindex way forward
LINDEX WAY FORWARD • Profitability Programme proceeding with full speed – Continuing to reduce costs and increase the gross margin – Strong focus on sales and profit improvement • Strong commercial assortment to secure the Christmas sales • Continued focus on optimising the store concept portfolio •
Slide 13: Stockmann Retail
STOCKMANN RETAIL Maiju Niskanen Director, Store Operations
Slide 14: Stockmann Retail, highlights in Q3 2018
STOCKMANN RETAIL, HIGHLIGHTS IN Q3 2018 • Small summer clearance sale improved the gross margin, but reduced revenue – inventories on a healthy level • Successful Loyal Customer campaigns in September • Focus on strong marketing statements – Gender neutral pop-up store One Way gained a lot of intern
Slide 15: Stockmann Retail, financial performance in Q3 2018
STOCKMANN RETAIL, FINANCIAL PERFORMANCE* IN Q3 2018 • Revenue EUR 75.4 million (81.2) QUARTERLY REVENUE – Revenue down by 7.2 % EUR mill. – Small clearance sale in July and slowly started autumn sales 200 • Gross margin 46.6% (44.2) 150 – Up due to small clearance sale 100 50 • Operating costs down
Slide 16: Digital acceleration at the core of the strategy
DIGITAL ACCELERATION AT THE CORE OF THE STRATEGY Extending the product selection: From 30 000 SKUs B2C in 2017 to MARKET New 110 000 PLACE Click & Collect by the end of 2018 point open until 24:00 together with in the Helsinki Faster & smoother digital partners department store Whole Helsinki stockm
Slide 17: Real Estate
REAL ESTATE Lauri Veijalainen CEO
Slide 18: Real Estate, highlights in Q3 2018
REAL ESTATE, HIGHLIGHTS IN Q3 2018 • Increased revenue and operating profit – Continued stable performance – Revenue up even without the Book House that was divested in May 2018 • Agreement to sell Nevsky Centre property in St. Petersburg signed in October 2018 – Closing is subject to approval from
Slide 19: Divesting two Stockmann-owned properties in 2018
DIVESTING TWO STOCKMANN-OWNED PROPERTIES IN 2018 BOOK HOUSE in Helsinki NEVSKY CENTRE in St. Petersburg GLA: 8 861 m2 GLA: 46 000 m2 Sold on 24 May 2018 Transaction closing by the end of 2018 Sales price: EUR 108.6 million Sales price: EUR 171 million Buyer: AEW Europe City Retail Fund Buyer: PPF Re
Slide 20: Real Estate, financial performance in Q3 2018
REAL ESTATE, FINANCIAL PERFORMANCE IN Q3 2018 • Revenue EUR 16.7 million (16.5) QUARTERLY REVENUE – Higher rent levels and new tenants EUR mill. 20 • Net operating income from own properties EUR 12.5 million (12.6) 15 – Average monthly rent EUR 38.10 per sqm (36.61) – Net rental yield in January–Sep
Slide 21: Real Estate, Stockmann-owned properties
REAL ESTATE, STOCKMANN-OWNED PROPERTIES Key figures 30.9.2018 Fair value of the department store properties: EUR 677 million Gross leasable area (GLA) 88 000 sqm, of which Stockmann Retail was using 73% Occupancy rate 99.4% Helsinki department store Tallinn department store Riga department store Occ
Slide 22: Christmas 2018
CHRISTMAS 2018
Slide 23: Further information
FURTHER INFORMATION STOCKMANNGROUP.COM INVESTOR.RELATIONS@STOCKMANN.COM