Lindex Group Plc Class B · OMXHEX:LINDEX
Lindex Group Plc Class B — Stockmann Group — Investor Day (September 2012)
20 slides from Lindex Group Plc Class B's investor day presentation, Sep 12, 2012
Slide 1: Capital Markets Day
Capital Markets Day 12 September 2012 Hannu Penttilä CEO
Slide 2: Stockmann Group today
Stockmann Group today •! 150 years of history – founded in 1862 •! 16 department stores and 715 fashion stores in 16 countries •! Over 100 million customers every year •! 15 457 employees in 15 countries •! 59 169 shareholders on Nasdaq OMX Helsinki 2
Slide 3: Two strong business divisions
Two strong business divisions Department Store Division Share of revenue 61% in 1-6/2012 16 department stores and 31 other stores in 4 countries; 3 distance retail stores EUR 606 million Fashion Chain Division Share of revenue 39% in 1-6/2012 682 stores in 16 countries (Lindex 459, Seppälä 223); 2 o
Slide 4: Stockmann Group's strategy 2013–2017: Heading for profit (vol. 2)
Stockmann Group’s strategy 2013–2017: Heading for profit (vol. 2) •! Historical investment phase is over; now it’s time to deliver the results! •! Core of the strategy as before: profitable growth in present and new markets •! New Group structure by establishing the Fashion Chain Division ! More cla
Slide 5: Long-term financial targets remain unchanged
Long-term financial targets remain unchanged •! The Stockmann Group’s financial targets were set in 2008, before the financial crisis •! Very ambitious, but still achievable •! Not realistic to reach them by 2015 in the current market environment •! Return on capital employed: a minimum of 20% •! Op
Slide 6: Focus on cash flows and the balance sheet
Focus on cash flows and the balance sheet •! Improved cash flows thanks to a close follow-up of stock levels, a lower level of capital expenditure and improved profitability of the business ! Operating cash flow in 1-6/2012: EUR 14.9 million (1-6/2011: -74.6 million) •! Interest-bearing liabilities
Slide 7: Maturity profile of the Group's interest-bearing liabilities
Maturity profile of the Group’s interest-bearing liabilities EUR mill. 400 350 300 250 200 150 100 50 0 2012 2013 2014 2015 2016+ Loans from financial institutions Pension loans Commercial papers Finance leases In addition, the Group has EUR 332 million in undrawn, long-term committed credit facilit
Slide 8: Shareholders and Loyal Customer share options
Shareholders and Loyal Customer share options •! Shareholders 59 169 Shareholder structure on 31 August 2012 Distribution of shares Households •! Loyal Customer 2008 share option programme completed Foundations ! 0.9 million shares subscribed (1.2 million share options were International subscribed
Slide 9: Stockmann Group's strategy 2013–2017: Heading for profit (vol. 2)
Stockmann Group’s strategy 2013–2017: Heading for profit (vol. 2) Strong unique brands •! Clear brand identities •! Target groups, product ranges, store concepts according to brand Department Store and Fashion Chain Divisions Increasing Store profitability Multi-channel retailing retail space Effici
Slide 10: Strategic actions
Strategic actions Strategic aim Department Store Division Fashion Chain Division Increasing Itäkeskus relocation in 2013, Expansion in current and new retail space Tampere enlargement in 2014, markets: 15-20 stores annually. Tapiola relocation and New franchising markets for enlargement in 2016. Lin
Slide 11: Stores in 16 countries, operations in 21 countries
Stores in 16 countries, operations in 21 countries ICELAND FINLAND NORWAY SWEDEN ESTONIA RUSSIA LATVIA LITHUANIA POLAND CZECH REPUBLIC UKRAINE SLOVAKIA CROATIA SERBIA BOSNIA AND HERZEGOVINA TURKEY CHINA PAKISTAN UNITED ARAB BANGLADESH SAUDI ARABIA EMIRATES INDIA Department Store Division, Lindex and
Slide 12: Revenue by market in Q2 2012
Revenue by market in Q2 2012 12
Slide 13: Currency effects
Currency effects •! 65% of total purchases in 2011 in EUR •! 24% of total purchases in other currencies than EUR, with a transaction risk •! 11% of total purchases in other currencies than EUR for local use, no transaction risk •! 45% of sales in 2011 in foreign currencies (SEK, RUB, NOK, LAT, etc.)
Slide 14: Operations in Russia
Operations in Russia •! Store network: 7 department stores, 1 shopping centre, 21 Lindex stores, 44 Seppälä stores, 10 Bestseller stores, 1 Stockmann concept store and 1 outlet •! Revenue up 20 per cent to EUR 175.6 million in January-June 2012 ! Bestseller’s revenue 22.5 million in 2011, down 35 pe
Slide 15: Development of the operating profit in Russia
Development of the operating profit in Russia EUR mill. 25 Selling Zara franchising 20 operations 15 10 5 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 -5 -10 Closing down Smolenskaya -15 department store -20 -25 New dep. stores 2 1 1 2 1 15
Slide 16: Future outlook for Russia
Future outlook for Russia •! Targeting a positive full-year operating profit, excluding Bestseller, in 2012 •! Market in Russia likely to continue to perform better than in the Nordic countries ! Oil price has a key role in general economic development and consumer purchasing behaviour •! Russia’s W
Slide 17: 2012 – Where are we now?
2012 – Where are we now? •! Unresolved European debt crisis continuously the headline news in media •! Some signs of weakening consumer confidence in Finland •! Russia and the Baltic countries continuously developing positively •! Stockmann Group has been able to grow and improve the operating profi
Slide 18: Revenue in August 2012
Revenue in August 2012 EUR mill, exclusive VAT 8/2012 Change, % 1-8/2012 Change, % Department Store Division, Finland 64.4! 1.1! 527.2! 2.6! Department Store Division, international operations 27.6! 7.2! 254.4! 15.0! Department Store Division, total 92.0! 2.9! 781.6! 6.3! Fashion Chain Division, Fin
Slide 19: Outlook for the rest of 2012
Outlook for the rest of 2012 •! Challenging to assess the outlook, especially long-term retail market, due to unstable world economy and the unresolved European debt crisis ! Indications of weakening consumer behaviour in particular in Finland where consumers’ confidence in their own economy has dec
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