Slide 1: Interim Report Q1 2016
INTERIM REPORT Q1 2016 Stockmann Group | 28 April 2016
Slide 2: Major steps taken in strategy implementation
MAJOR STEPS TAKEN IN STRATEGY IMPLEMENTATION NEW STRATEGIC DIRECTION ANNOUNCED IN DECEMBER 2014, IMPLEMENTATION STARTED AS OF 1 JANUARY 2015 New structure: Stockmann Retail, Real Estate and Lindex Own retail focused on fashion, cosmetics, home and food Real Estate properties revalued at their fa
Slide 3: Strategic actions will proceed with speed
STRATEGIC ACTIONS WILL PROCEED WITH SPEED Efficiency programme well under way for cost savings Renegotiating terms with suppliers for lower costs of goods Over 15 000 sqm store space released from Stockmann Retail Inventories reduced by approx. 70 million in 2015 New support function organis
Slide 4: Customer and efficiency will remain in focus
CUSTOMER AND EFFICIENCY WILL REMAIN IN FOCUS Strengthening omnichannel shopping experience Revamped Stockmann.com online store New digital tools and services in stores and online Renewed brand mix, new events, campaigns and seasonal pop-ups Investing in store environments Major refurbishment
Slide 5: Q1 2016 in brief
Q1 2016 IN BRIEF • Major steps in strategy implementation: key structural changes in non-core businesses are now made Gross margin – Divestment of Russian department stores completed, reported as discontinued operations in Q1 50.2% – Agreement signed for divesting Hobby Hall as of 1 January 2017, re
Slide 6: Group's financial performance in Q1 2016
GROUP’S FINANCIAL PERFORMANCE IN Q1 2016 • Revenue EUR 273.1 million (EUR 345.8 million) QUARTERLY REVENUE • Gross margin 50.2% (46.8%) EUR mill. 500 – Withdrawal of low-margin product areas in Stockmann Retail 400 – Timing of the Crazy Days campaign 300 – Divestment of Seppälä 200 100 • Operating c
Slide 7: Key figures
KEY FIGURES 1–3/2016 1–3/2015 1-12/2015 Equity ratio % 44.8 43.9 46.1 Gearing % 81.6 84.6 72.1 Net financial costs EUR mill. 4.3 4.1 21.2 Earnings per share, continuing EUR -0.46 -0.66 -0.60 operations, excluding NRI Net earnings per share, EUR -0.31 -0.78 -2.43 including discontinued operations Cas
Slide 8: Market environment and outlook for 2016
MARKET ENVIRONMENT AND OUTLOOK FOR 2016 • Economic situation remains uncertain in Finland: slow GDP growth, low consumer purchasing power • Relatively stable development expected in Sweden, Norway and the Baltic countries: somewhat higher GDP growth, competition increasing in the Baltics • Weak outl
Slide 9: Stockmann Retail
STOCKMANN RETAIL STOCKMANN 28.4.2016 9
Slide 10: Stockmann Retail in Q1 2016
STOCKMANN RETAIL IN Q1 2016 • Revenue EUR 135.2 million (EUR 197.9 million) QUARTERLY REVENUE – Revenue down by 26.5% in continuing product areas EUR mill. – Decline was mostly due to the timing of the Crazy Days campaign 300 – Weaker than expected sales in February, but good Paris campaign in March
Slide 11: Investments in omnichannel shopping
INVESTMENTS IN OMNICHANNEL SHOPPING Focus on first- class customer experience in fashion, cosmetics, food and home products Major changes in Voice of the customer Stockmann.com Helsinki flagship product areas are • Customer feedback • Revamped online store • 1st floor renovated from now completed. c
Slide 12: New and inspiring women's accessories department
NEW AND INSPIRING WOMEN’S ACCESSORIES DEPARTMENT OPENING IN AUGUST 2016 STOCKMANN 28.4.2016 12
Slide 13: Real Estate
REAL ESTATE STOCKMANN 28.4.2016 13
Slide 14: Real Estate in Q1 2016
REAL ESTATE IN Q1 2016 • Fair value of the properties QUARTERLY REVENUE – 1 January 2016: EUR 918.2 million EUR mill. – 31 March 2016: EUR 914.0 million 20 – Nevsky Centre treated as an investment property and not depreciated 15 • Occupancy rate 99.1% (99.0%) 10 5 • Usage of GLA in own properties: 5
Slide 15: New experiences to Stockmann customers
NEW EXPERIENCES TO STOCKMANN CUSTOMERS • Real Estate will continue to bring in attractive new tenants – Complementing the Stockmann product and services selection in department stores in all markets – Focus on tenants offering experiences, new services and unique offerings to customers • XS Toys in
Slide 16: Lindex
LINDEX STOCKMANN 28.4.2016 16
Slide 17: Building a world class fashion experience
BUILDING A WORLD CLASS FASHION EXPERIENCE • Successful campaigns – Launch of new communication concept: We Make Fashion Feel Good – Lindex customers as models in Bra-volution underwear campaign – Spring campaign with the famous model Sienna Miller • Renewing collections – Launch of Holly & White for
Slide 18: International expansion
INTERNATIONAL EXPANSION • Store network on 31 March 2016: – 483 stores in 18 countries, 4 61 of which 39 franchising stores 102 – 8 new stores opened in Q1 2016 – 12 stores closed in Q1 2016, 210 10 3 of which 7 in Russia 9 8 • Target for 2016: 2 5 – Total number of stores to decline 25 – The remain
Slide 19: Lindex in Q1 2016
LINDEX IN Q1 2016 • Revenue up 2.5% to EUR 130.2 million (EUR 127.0 million) QUARTERLY REVENUE – At comparable exchange rates up 2.7% EUR mill. – Good development particularly in Sweden 200 – Market share up in all Nordic countries 150 100 • Gross margin 58.4% (61.7%) – Increased markdowns compared
Slide 20: Hobby Hall
HOBBY HALL STOCKMANN 28.4.2016 20
Slide 21: New strong Finnish owner to Hobby Hall
NEW STRONG FINNISH OWNER TO HOBBY HALL • Hobby Hall has been a part of the Stockmann Group since 1985 • Defined as a non-core business during the Stockmann strategy work and process for finding a new owner started • Business will be sold to the Finnish family-owned SGN Group • Closing will take plac
Slide 22: New owner 1.1.2017: SGN Group
NEW OWNER 1.1.2017: SGN GROUP • Finnish family-owned business founded in 1933 36% Sports 38% • Known for its strong, international brands, e.g. for sports Agriculture and recreational goods, agriculture, industrial products • Operates e.g. in Finland (67%), Sweden and Russia (33%) • Revenue approx.
Slide 23: Setting up a new gear for Hobby Hall's growth
SETTING UP A NEW GEAR FOR HOBBY HALL’S GROWTH • SGN has actively searched for new businesses and opportunities for growth – Acquiring majority stake of Swedish Team Sportia sports equipment chain in 2014 and introducing Team Sportia chain into Finland: 6 branded stores to opened during April 2016, a
Slide 24: Thank you, happy first of May!
THANK YOU, HAPPY FIRST OF MAY! STOCKMANN 28.4.2016 24
Slide 25: Further information
FURTHER INFORMATION: www.stockmanngroup.com investor.relations@stockmann.com STOCKMANN 28.4.2016 25