Europris Asa · OSL:EPR
Europris Asa — SEB Nordic Seminar 2024
17 slides from Europris Asa's conference presentation, Jan 10, 2024
Slide 1: Company presentation
Company presentation January 2024 CEO Espen Eldal
Slide 2: Disclaimer
Disclaimer This presentation has been produced by Europris ASA (the "Company") exclusively for information purposes. This Presentation has not been approved, reviewed or registered with any public authority or stock exchange. Further to the aforementioned, this presentation is the result of an effor
Slide 3: Norway's #1 discount variety retailer
Norway’s #1 discount variety retailer Strong brand and loyal customer base Low prices and powerful marketing and campaign engine Proven category management model 282 stores Expanding store network and e-commerce operation 3
Slide 4: A growing loyal customer base
A growing loyal customer base #MER customers >5x 1 422 000 1 258 000 1 033 000 687 000 278 000 1.4 million customer club members YE 19 YE 20 YE 21 YE 22 Per Sep 23 36 million transactions LTM Sep 2023 4
Slide 5: Powerful marketing and campaign engine
Powerful marketing and campaign engine Prices for our front-page products are unbeatable … … and customers know it Where do you think you can get a bargain1? Europris Competitor #1 #2 #3 #4 #5 #6 #7 Competitor #8 Weekly leaflet with circulation to about 1 million households 1 MediaCom Brand Tracker
Slide 6: Established price leadership
Established price leadership Well positioned in current tough market environment Recognised as a price leader Which chains do you think have generally low prices1? • Low-price concept well suited for the current tough Europris market environment Competitor #1 → Consumer confidence at low levels, wit
Slide 7: Champion of the seasons
Champion of the seasons Seasonal campaigns and store layouts aligned Shifting focus according to seasons Which chains do you think have a seasonal range1? Europris Competitor #1 #2 #3 #4 #5 #6 #7 Competitor #8 1 MediaCom Brand Tracker 2022, across Europris, Clas Ohlson, Nille, Jysk, Biltema, Coop OB
Slide 8: Strong and improving customer impression
Strong and improving customer impression Overall impression of Europris1 65% 33% 25% 6% 2007 2022 Positive Negative Neutral 1 MediaCom Brand Tracker from 2007 to 2022 8
Slide 9: Europris has consistently outperformed the market
Sales growth 28% % year-on-year change Variety retail in Norway1 Europris chain2 19% 9% 8% 7% 8% 6% 6% 5% 5% 5% 5% 5% 4% 3% 2% 2% 2% 0% -1% 2014 2015 2016 2017 2018 2019 2020 2021 2022 Per Sep-23 1 Virke retail index (using figures reported by Statistics Norway) 2 Europris chain (both directly opera
Slide 10: Our growth story
NOK 9.7bn Our growth story 1992 LTM 2023 Note: sales for the Europris chain (directly operated and franchise stores), Lunehjem (consolidated as of March 2021), Lekekassen (consolidated as of August 2021) and the Strikkemekka group (consolidated as of July 2022) 10
Slide 11: Track record of profitable growth
Track record of profitable growth Revenue, gross margin and net profit margin NOK billion, % 9.4 9.0 ▪ More customers and higher basket values 8.6 8.0 ▪ Category upgrades driving growth ▪ New stores and store upgrades 6.2 5.8 47% 46% 45% ▪ Acquisitions adding to the total 43% 43% 43% ▪ Scale benefit
Slide 12: Private labels support growth
Private labels support growth Private label revenue and share of total sales Share of total sales Private label sales, NOK bn 44% 45% 42% 42% 40% 40% 3,8 4,0 3,6 3,3 2,5 2,7 0% 2018 2019 2020 2021 2022 LTM Sep-23 Private labels add variety, new price points and sustainable alternatives → increasing
Slide 13: Our key strategic focus areas
Our key strategic Improve customer focus areas experience Strengthen price and cost position Drive customer growth Act responsibly 13
Slide 14: Long-term financial and operational ambitions
Long-term financial and operational ambitions Growth Continue to deliver like-for-like growth above the market over time Target to open a net average of five new stores per year, depending on availability of locations which Number of new stores meet strict return requirements, and the potential for
Slide 15: Investment highlights
Investment highlights 1 2 3 4 5 Clear market Strong track record Well managed with Clear operational Committed to leader in a with over 30 years proven ability to and financial profitable growth growing market of consecutive adapt to changing strategy and cash segment growth market conditions distri
Slide 16: Q&A
Q&A Next event: Q4 presentation 1 February 2024
Slide 17: Alternative performance measures (APMs)
Alternative performance measures (APMs) APMs are used by Europris for annual and periodic financial reporting in order to provide a better understanding of the group’s financial performance. APMs are considered as well- know and frequently used by users of the financial statements and are also used