Slide 1: Q4 report
Q4 report 05 June 2024 Kristofer Tonström President & CEO Pernilla Walfridsson CFO 1
Slide 2: Agenda
• Business update • Financial development Agenda • Events after the reporting period • Strategy update and summary • Q&A 2
Slide 3: Highlights Q4 & FY 2023/24
✓ Q4 total sales* 2,167 MSEK, organic +13% ✓ Q4 operating profit at 65 MSEK ✓ FY 2023/24 total sales* 10,232 MSEK, organic +11% Highlights Q4 ✓ FY operating profit at 717 MSEK, operating margin +7.0% ✓ Operating cash flow 1,489 MSEK (941) & FY 2023/24 ✓ Solid financial position: net debt/EBITDA -0.2
Slide 4: Business update
Business update 4
Slide 5: Strategy execution – key targets
Strategy execution – key targets Organic growth 5% with Industry leading in 1 7-9% EBIT margin 2 sustainability – deliver on our people agenda and 2045 commitments Planet People Society 20/21 21/22 22/23 23/24 5
Slide 6: Strategy execution – overview Q4 23/24
Strategy execution – overview Q4 23/24 Make assortment relevant A profitable and growing Expand the 12 months/year. online business. store network. ✓ All prioritised categories driving ✓ Q4 online sales* +11% ✓ Net addition of 6 stores in Q4 growth ~50% of online orders ✓ 2 more stores opened in May
Slide 7: Growth in all prioritised product categories
Growth in all prioritised product categories Tidy up Light up Create a conscious Connect & enjoy Fix your your home. your home. home environment. your home. home. Sustainability Spare parts Seasons Consumables assortment 7
Slide 8: Continued high pace in renewing the assortment
Continued high pace in renewing the assortment Approx. • Record no. of product news in 2023/24 4,500 new products ‒ Driving customer interest and sales growth • High relevance in all seasons and customer situations • Attracting new customer segments and building depth in our product niches 8 Selecti
Slide 9: Store expansion according to plan…
Store expansion according to plan… • New stores well received by customers • Continued positive trend in LFL sales • Stores and e-com supporting each other • Reduced cost base an enabler for profitable growth by store expansion going forward Target for 2024/25: net addition of approx. 10 new stores
Slide 10: …and building a more robust store portfolio
…and building a more robust store portfolio • Relocation of existing stores • Renegotiations of existing store contracts • Optimised assortment • Optimised sales area (+/-) • Optimised storage area (+/-)
Slide 11: Value for money assortment and great customer service
Value for money assortment and great customer service Customer Confidence development* Q: Howaffordable Q: How affordable dothink do you you the think the following following brands are? brands are? Net Promoter Score (NPS) Consumer Confidence development* 10.0 58* 5.0 4% 66% 30% Clas Ohlson 0.0 -5.
Slide 12: Financial development
Financial development 12
Slide 13: Sales development well above targets
Sales development well above targets Total sales, MSEK Online sales, MSEK Q4 • Total sales, excluding Spares, up 12% to 1,998 MSEK, organic sales up 13%, LFL up 12% • Online sales, excluding Spares, up 11% • Total sales, including Spares, 2,167 MSEK • Online sales, including Spares, 414 MSEK FY 2023
Slide 14: Strong sales in all markets
Strong sales in all markets Sweden Norway Finland Organic Q4: +12% Q4: +16% Q4: +7% growth: Q1-Q4: +11% Q1-Q4: +13% Q1-Q4: +3% 14
Slide 15: Macro trends with business impact
Macro trends with business impact Spot prices for 40t containers from Asia to Gothenburg $18 000 Factors impacting Clas Ohlson: $16 000 $14 000 • Container shipping costs and raw material and commodity prices $12 000 $10 000 • Translation/transaction effects - sales instant effects and purchasing $8
Slide 16: Improved gross margin
Improved gross margin Product/ Sourcing and price mix Currency transportation effects incl. hedging Spares 39.4% 38.8% Q4 2022/23 Q4 2023/24 16
Slide 17: Financial overview
Financial overview Share of selling expenses, Q4 34.0 Q4 Q4 Q1-Q4 Q1-Q4 MSEK 23/24 22/23 23/24 22/23 % (35.9%) Operating profit excl. non- 65 -7 921 459 Administrative expenses, Q4 recurring items 42 Items affecting comparability 0 0 -204 -154 MSEK Operating profit 65 -7 717 305 (40 MSEK) EBIT-margi
Slide 18: Well balanced inventory
Well balanced inventory • Inventory level: 2,448 MSEK (2,177) at the end of the period • Average inventory level LTM: 2,356 MSEK (2,397) • Inventory turnover rate DC: 5.9 (4.5) 18
Slide 19: Strong cash flow and solid financial position
Strong cash flow and solid financial position Q1-Q4 Q1-Q4 Approved credit facilities* 1,110 MSEK 23/24 22/23 MSEK Cash flow from operating activities, before 1,352 1,001 Of which utilised 0 MSEK change in working capital Change in working capital 137 -60 Net debt/EBITDA excl. IFRS 16 Cash flow from
Slide 20: Investments
Investments FY 2023/24 • Total investments 554 MSEK (123) • Spares Europe acquisition 431 MSEK 554 • New stores and refurbishments 80 MSEK (41) • IT systems 3 MSEK (36) Outlook 2024/25 231 228 • Investments in store openings and store refurbishments to increase 158 123 • Investments in IT to increas
Slide 21: Events after the reporting period
Events after the reporting period 21
Slide 22: May sales development
May sales development MSEK • Total sales, excluding Spares, 772 up 15% to 772 MSEK, organic sales Total 670 up 13% and LFL up 10% 630 ‒ Sweden +12% organic ‒ Norway +17% organic ‒ Finland +7% organic • Total sales, including Spares, 848 MSEK • Store network increased by 10 stores compared to end of
Slide 23: Proposed dividend
Proposed dividend 6.25 • Proposed dividend 4.25 SEK per share (1.50) to be distributed as two separate payments of SEK 2.125 SEK • Strong EPS development enables increased dividend 6.75 6.25 • Dividend in line with dividend policy At least 50 per cent of earnings per share after tax, with 4.25* cons
Slide 24: Strategy update and summary
Strategy update and summary 24
Slide 25: Financial targets and framework
Sales Operating margin Financial targets 5% Clas Ohlson targets to achieve 7-9% The company is targeting and framework an organic sales growth of 5% per year a reported operating margin* of 7-9% per year * i.e incl IFRS16 Dividend policy Net debt/EBITDA >50% Dividends are to comprise at <2x Net debt
Slide 26: Strategic position
Strategic position Competitive advantages Leveraging competitive advantages • • • • • • Tidy up Light up Create a conscious Connect & enjoy Fix your your home. your home. home environment. your home. home. 26
Slide 27: Focus areas 2024/25 for profitable growth
Focus areas 2024/25 for profitable growth Make assortment relevant A profitable and growing Build a robust 12 months/year. online business. store network. Drive profitable growth with prioritised Drive profitable growth by a developing Drive profitable growth by opening new product niches that build
Slide 28: Executing on our strategic plan – positioned for sustainable and profitable growth
Executing on our strategic plan – positioned for sustainable and profitable growth • Strong development throughout 2023/24 ‒ Strategic initiatives yield results • Assortment relevance key growth driver ‒ Record number of product news in 2023/24, big focus also 2024/25 • Continued focus on developing
Slide 29: Q&A
Q&A 29
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