Marimekko Oyj · OMXHEX:MEKKO
Marimekko Oyj — Investor Day (September 2024)
25 slides from Marimekko Oyj's investor day presentation, Sep 11, 2024
Slide 1: Marimekko's SCALE strategy and key growth drivers
Marimekko’s SCALE strategy and key growth drivers Tiina Alahuhta-Kasko, President and CEO 11 September 2024 © Marimekko 1
Slide 2: Marimekko is a Finnish design house and lifestyle design brand
Marimekko is a Finnish design house and one of the first lifestyle design brands in the world. 11 September 2024 © Marimekko 2
Slide 3: Our purpose
OUR PURPOSE Empowering people to be happy as they are and bring joy to their everyday lives through bold prints and colors. 11 September 2024 © Marimekko 3
Slide 4: Bold prints and colors: art of printmaking as our DNA
BOLD PRINTS AND COLORS Art of printmaking as our unique DNA and differentiating factor 11 September 2024 © Marimekko 4
Slide 5: Timeless and long-lasting design
TIMELESS AND LONG-LASTING DESIGN “Marimekko is not about trendy fashion, with a few minor exceptions. We make lasting and timeless products. Timelessness may, however, occasionally come into fashion by chance, like now.” Armi Ratia, Founder of Marimekko, 1978 11 September 2024 © Marimekko 5
Slide 6: Our target customer
OUR TARGET CUSTOMER Our customers are empowered and open-hearted urban explorers, conscious consumers, who march to their own beat in life. 11 September 2024 © Marimekko 6
Slide 7: Marimekko lifestyle today
MARIMEKKO LIFESTYLE TODAY Fashion, Bags & accessories, Home 11 September 2024 © Marimekko 7
Slide 8: Marimekko around the world
MARIMEKKO AROUND THE WORLD Approaching main markets Northern Europe, North America and the Asia-Pacific region through key cities → Some 170 Marimekko stores with flagships in Helsinki, Stockholm, Copenhagen, New York, Tokyo and Sydney. → Online store in 38 countries. Marimekko products sold in ar
Slide 9: Competitive landscape
COMPETITIVE LANDSCAPE Marimekko’s relative profitability is high, just below luxury players, and net sales growth continued despite weaker macro economic market context especially in home market Finland 47% 25 20 1 Revenue dev. 2023 vs. 2022 (%) 15 10 5 0 -5 -10 -15 -22 -20 -18 -16 -14 -12 -10 -8 -6
Slide 10: Proven recipe for success
PROVEN RECIPE FOR SUCCESS Strong performance throughout the years demonstrates our ability for profitable growth even in weaker macro economic environment Marimekko brand sales (M€) Marimekko net sales (M€) Marimekko comparable operating profit (M€) 66% High outside CAGR 9% relative Finland in 2019–
Slide 11: Proven recipe for success: ROCE, net debt, dividends
PROVEN RECIPE FOR SUCCESS Continued profitable growth and strong financial position enables investments in growth as well as stable dividend payouts Return on capital employed (ROCE), % Net debt / EBITDA at the year end Earnings per share and dividend payout* 2.5 Target max 2.0 at year end 56%** 61%
Slide 12: Strategy period 2023-2027
STRATEGY PERIOD 2023–2027 With a proven recipe for success, the next phase on our journey is all about scaling up! 11 September 2024 © Marimekko 12
Slide 13: Long-term financial goals
LONG-TERM FINANCIAL GOALS Targeting strong profitability by scaling growth Annual growth in net sales 15% LONG-TERM Comparable operating profit margin 20% FINANCIAL GOALS: Ratio of net debt to EBITDA at year end max. 2 The intention is to pay a yearly dividend; percentage of earnings per share alloc
Slide 14: Key elements for long-term net sales growth
KEY ELEMENTS FOR LONG-TERM NET SALES GROWTH Due to the unique value proposition of Marimekko, there are several levers for sizing up the company DTC as core In addition to Beside current Possibility to scale distribution existing markets, loyal customers, lifestyle renowned channel, Scaling up sales
Slide 15: Scaling up by accelerating international sales
KEY ELEMENTS FOR LONG-TERM NET SALES GROWTH Scaling up by accelerating international sales across markets and gaining market share in Finland Customers Channels Markets Product line Marimekko net sales (M€) Grow customer base to speak DTC channels owned by Scale up sales in existing to a wider globa
Slide 16: Scalable business model with low risk
SCALABLE BUSINESS MODEL WITH LOW RISK Despite high growth potential, Marimekko has a low risk profile Low volatility of the Loose franchise partner model with low risk Loyal and growing customer business thanks to and capex needs in key role in expansion base accumulated over decades strong heritage
Slide 17: Accelerating growth in international markets, in particular Asia
KEY ELEMENTS FOR LONG-TERM NET SALES GROWTH Focus on accelerating growth in international markets, in particular in Asia Graph an illustrative example. Long-term annual net sales growth target: +15% 2023 act Finland Scandinavia EMEA North America APAC Long-term goal Market’s Strong home market Sales
Slide 18: Key elements for long-term comparable operating profit margin
KEY ELEMENTS FOR LONG-TERM COMPARABLE OPERATING PROFIT MARGIN Net sales acceleration the most important driver for relative profitability improvement Development of consumer confidence and purchasing power, particularly in Finland, global supply chain disruptions and the general inflation developmen
Slide 19: Lifestyle assortment with three product lines
LIFESTYLE ASSORTMENT WITH THREE PRODUCT LINES Ready-to-wear as communicational spearhead enables maximum leverage of the lifestyle concept Marimekko net sales by product line (M€) → Versatile lifestyle assortment, featuring different price points, allows serving a growing global audience 174 167 → T
Slide 20: Marimekko lifestyle expansion opportunities
MARIMEKKO LIFESTYLE EXPANSION OPPORTUNITIES There is a possibility in the longer term to scale the Marimekko lifestyle renowned for art of printmaking through new product categories, e.g. via licensing 11 September 2024 © Marimekko 20
Slide 21: Distribution channels
DISTRIBUTION CHANNELS Distribution channels contributing to sales and profitability in different ways Net sales Operating Sales and margin Channel Role per product* margin, %* components Marimekko net sales by channel (M€) Retail margin + Own omnichannel retail Key distribution channel wholesale mar
Slide 22: Our vision
OUR VISION To be the world’s most inspiring lifestyle design brand renowned for bold prints. 11 September 2024 © Marimekko 22
Slide 23: Why invest in Marimekko?
WHY INVEST IN MARIMEKKO? Attractive opportunity to scale profitable growth of global brand with low risk and capex Attractive Global lifestyle Proven opportunity to Expanding global brand with success recipe for Scalable business scale globally, brand phenomenon recognizable prints profitable growth
Slide 24: Disclaimer
Disclaimer The following information contains, or may be deemed to contain, “forward-looking statements”. These statements relate to future events or our future financial performance, including but not limited to strategic plans, potential growth, expected capital expenditures, future cash sources a
Slide 25: Marimekko Capital Markets Day
MARIMEKKO Capital Markets Day 11 September 2024 © Marimekko 25