Lindex Group Plc Class B · OMXHEX:LINDEX
Lindex Group Plc Class B — Stockmann Group — Q3 2016 Earnings Presentation
24 slides from Lindex Group Plc Class B's earnings presentation, Oct 28, 2016
Slide 1: Interim Report Q3 2016
INTERIM REPORT Q3 2016 Stockmann Group | 28 October 2016
Slide 2: Highlights in Q3 2016
HIGHLIGHTS IN Q3 2016 • Stockmann Group – Sixth consecutive quarter with improved operating result: for the first time in three Gross margin years a positive figure for Q3 54.8% – Efficiency programme progressing according to plan – Anna Salmi appointed Chief Customer Officer, with the responsibilit
Slide 3: Group's Financial Performance in Q3 2016
GROUP’S FINANCIAL PERFORMANCE IN Q3 2016 • Revenue EUR 288.9 million (EUR 317.9 million) QUARTERLY REVENUE – In continuing product areas and businesses, revenue was down by 5.5% EUR mill. – Down by 8.2 % in Finland and by 3.5 % in other countries 500 400 • Gross margin 54.8 % (51.8 %) 300 – Gross ma
Slide 4: Key Figures
KEY FIGURES 1–9/2016 1–9/2015 1-12/2015 Equity ratio % 45.4 43.8 46.1 Gearing % 80.8 89.9 72.1 Net financial costs EUR mill. 14.0 14.0 21.2 Result for the period EUR mill. -40.6 -69.7 -88.9 Earnings per share EUR -0.62 -0.97 -1.24 Net earnings per share, EUR -0.47 -1.17 -2.43 including discontinued
Slide 5: Market Environment and Outlook for 2016
MARKET ENVIRONMENT AND OUTLOOK FOR 2016 • Economic situation continues to be uncertain in Finland: low consumer purchasing power, retail market environment continuously weak • Relatively stable development expected in Sweden, Norway and the Baltic countries • Overall increasing competition in all ma
Slide 6: Possible Divestment of Nevsky Centre in St Petersburg
POSSIBLE DIVESTMENT OF NEVSKY CENTRE IN ST PETERSBURG Gross leasable area • The Board of Directors has decided to investigate a possible divestment of the sqm Nevsky Centre shopping centre 46 000 Usage by Stockmann • The shopping centre opened in the heart of St Petersburg in November 2010, and has
Slide 7: Stockmann Retail
STOCKMANN RETAIL STOCKMANN 28.10.2016 7
Slide 8: Stockmann Retail in Q3 2016
STOCKMANN RETAIL IN Q3 2016 • Revenue EUR 124.2 million (EUR 145.1 million) QUARTERLY REVENUE – Revenue down by 9.1% in continuing product areas and businesses EUR mill. 300 • Gross margin 40.2 % (38.4 %) 250 – Gross margin up due to more efficient buying, changes in product areas and 200 fewer pric
Slide 9: Crazy Days Campaign
CRAZY DAYS CAMPAIGN • The Crazy Days campaign was held in the department stores and online store in October, after the third quarter • Comparable sales down by 2 per cent in total – Finland down by 2 per cent – Baltics on a par with the previous year – Best growth in cosmetics in Finland and in food
Slide 10: Over 50 New Brands Introduced in Selection
OVER 50 NEW BRANDS INTRODUCED IN SELECTION STOCKMANN 28.10.2016 10
Slide 11: Renewals Ready in Helsinki and Turku in November
RENEWALS READY IN HELSINKI AND TURKU IN NOVEMBER STOCKMANN 28.10.2016 11
Slide 12: Real Estate
REAL ESTATE STOCKMANN 28.10.2016 12
Slide 13: Real Estate in Q3 2016
REAL ESTATE IN Q3 2016 • Fair value of the properties QUARTERLY REVENUE – EUR 904.3 million (1 January 2016: EUR 918.2 million) EUR mill. – Nevsky Centre treated as an investment property and not depreciated 20 • Occupancy rate 98.9% (98.7%) 15 – The renovated fifth floor in Tallinn now fully occupi
Slide 14: Renewed 5th Floor Opened in Tallinn Department Store
RENEWED 5TH FLOOR OPENED IN TALLINN DEPARTMENT STORE Gross leasable area Restaurants, travel, optician, sqm 5 jewellery, pharmacy, furniture 22 000 Home, children’s fashion, 4 toys, electronics 3 Women’s fashion Occupancy rate % 2 Men’s fashion 99.8 1 Delicatessen, cosmetics, flowers, café K1 Wareho
Slide 15: Several New Partners in Riga Department Store
SEVERAL NEW PARTNERS IN RIGA DEPARTMENT STORE Gross leasable area Home, restaurants, toys, sqm 4 electronics 16 000 Women’s and children’s 3 fashion 2 Men’s fashion, books, optician Occupancy rate % 1 Delicatessen, cosmetics, café 100 K1 Warehouse Usage by Stockmann Retail % 86 STOCKMANN 28.10.2016
Slide 16: New Food & Beverage Experiences to Our Customers
NEW FOOD & BEVERAGE EXPERIENCES TO OUR CUSTOMERS STOCKMANN 28.10.2016 16
Slide 17: Lindex
LINDEX STOCKMANN 28.10.2016 17
Slide 18: Highlights in Q3 2016
HIGHLIGHTS IN Q3 2016 • Operating profit up EUR 0.2 million in Q3 • Good sales during the summer, but a weak September • Kid’s wear: strong sales increase in August and a good introduction of Holly & Whyte • Launch of ”Reuse Recycle” possibility in all Nordic markets • Successful Autumn campaigns in
Slide 19: Lindex in Q3 2016
LINDEX IN Q3 2016 • Revenue down 6.2% to EUR 156.1 million (EUR 166.2 million) QUARTERLY REVENUE – At comparable exchange rates down 5.0%, or 4.3% in comparable stores EUR mill. – Sales increased in July and August, but decreased in September due to 200 exceptionally warm weather in the main markets
Slide 20: International Expansion
INTERNATIONAL EXPANSION • Store network on 30 September 2016: 4 61 – 476 stores in 16 countries, 102 of which 37 franchising stores – 1 new store opened in Q3 2016 209 10 – 4 stores closed in Q3 2016, 9 including closing operations in 8 the United Arab Emirates 2 4 25 • New stores and markets 9 – Ne
Slide 21: Campaigns and Activities for the Rest of the Year
CAMPAIGNS AND ACTIVITIES FOR THE REST OF THE YEAR • Important Pink Ribbon Campaign for the fight against breast cancer – The fourteenth year in a row • New Even Better Denim styles made from post consumer recycled cotton • Launch of the new store concept in Finland • Strong assortment and important
Slide 22: Lindex Christmas
LINDEX CHRISTMAS STOCKMANN 28.10.2016 22
Slide 23: Site Visit to Jussla Distribution Centre 23 November
SITE VISIT TO JUSSLA DISTRIBUTION CENTRE 23 NOVEMBER • For investors and analysts • Including tour and presentations by CEO and Management • Departure at 13:00 by bus from Helsinki city centre • Back to Helsinki at around 17:00 STOCKMANN 28.10.2016 23
Slide 24: Further Information
FURTHER INFORMATION: www.stockmanngroup.com investor.relations@stockmann.com STOCKMANN 28.10.2016 24