Tokmanni Group Oyj · OMXHEX:TOKMAN
Tokmanni Group Oyj — Shareholder Meeting (May 2020)
37 slides from Tokmanni Group Oyj's shareholder meeting presentation, May 7, 2020
Slide 1: Annual General Meeting 2020
Annual General Meeting 2020 7 May 2020
Slide 2: CEO Review
CEO Review Mika Rautiainen
Slide 3: Main focus in 2019: Improving profitability
MAIN FOCUS IN 2019: Improving profitability All-time high year
Slide 4: Tokmanni's Executive Group
Tokmanni’s Executive Group Mika Rautiainen Markku Pirskanen Sirpa Huuskonen Timo Heimo Tuomas Hyvärinen CEO CFO HR Director Director, Information Purchasing Director Management and Supply Chain Mathias Kivikoski Harri Koponen Janne Pihkala Matti Korolainen Sales and Marketing Store Network and Direc
Slide 5: Tokmanni is the no. 1 general discount retailer in Finland
Tokmanni is the no. 1 general discount retailer in Finland Over 1 million 192 customer visits per Stores in Finland week 944 MEUR 3,700 Revenue 2019 Employees 5 7.5.2020 / TOKMANNI - Annual General Meeting 2020
Slide 6: Highlights in 2019
Highlights in 2019
Slide 7: We converted acquired stores under Tokmanni brand
We converted 12 acquired stores under Tokmanni brand and opened 5 new Tokmanni stores. 7 7.5.2020 / TOKMANNI - Annual General Meeting 2020
Slide 8: We launched new private label product ranges
We launched 2 new private label product ranges, Pisara and Perfekt+. 8 7.5.2020 / TOKMANNI - Annual General Meeting 2020
Slide 9: We increased direct imports and batch buying from the Far East
We increased significantly direct imports and batch buying from the Far East. 9 7.5.2020 / TOKMANNI - Annual General Meeting 2020
Slide 10: We achieved significant savings in property maintenance and product loss
We achieved significant savings in property maintenance, product loss and work arrangements. 10 7.5.2020 / TOKMANNI - Annual General Meeting 2020
Slide 11: We improved business conditions and efficiency in our stores
We improved business conditions and efficiency in several different functions in our stores. 11 7.5.2020 / TOKMANNI - Annual General Meeting 2020
Slide 12: We increased online sales by almost 50%
We increased online sales by almost 50%, and significant cost savings were achieved by renewing the online packaging line. 12 7.5.2020 / TOKMANNI - Annual General Meeting 2020
Slide 13: Employees participated in customer service training
More than 3,300 Tokmanni employees participated in Tokmanni's customer service training. 13 7.5.2020 / TOKMANNI - Annual General Meeting 2020
Slide 14: As a result:
As a result: Sales increased Gross margin improved Ratio of expenses to net sales decreased 14 7.5.2020 / TOKMANNI - Annual General Meeting 2020
Slide 15: Financial Figures and Financial Statement 2019
Financial Figures and Financial Statement 2019
Slide 16: 2019: Strong improvement of profitability
2019: Strong improvement of profitability • Revenue grew by 8.5% (9.3%) to EUR 944.3 million (870.4) • Like-for-like revenue grew by 4.3% (5.6%) • Comparable gross profit totalled EUR 325.3 million (295.0) and comparable gross margin 34.4% (33.9%) • Comparable operating expenses were EUR 197.9 milli
Slide 17: Tokmanni's revenue is growing strongly
Tokmanni’s revenue is growing strongly Revenue development, % Like-for-like revenue development, % 9,3 8,5 5,6 4,3 2,9 2,7 2,7 -0,1 -0,6 -1,3 2015 2016 2017 2018 2019 17 7.5.2020 / TOKMANNI - Annual General Meeting 2020
Slide 18: Revenue development
Revenue development 944 870 797 776 755 734 713 692 656 635 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 MEUR 18 7.5.2020 / TOKMANNI - Annual General Meeting 2020
Slide 19: Comparable gross profit improved
Comparable gross profit improved 325,3 • The gross profit improvement was mainly 295,0 due to professional sourcing and the sales structure • The share of direct imports and private labels of total sales continued to develop 33,9 % 34,4 % positively in Q4/2019 34,4 % 33,9 % 35,2 % 34,4 % 2018 2019 C
Slide 20: Strong EBIT development
Strong EBIT development Comparable EBIT, MEUR 70,4 51,9 2018 2019 Comparable EBIT margin, % 2018 2019 6,0 % 7,5 % 20 7.5.2020 / TOKMANNI - Annual General Meeting 2020
Slide 21: Balance sheet, cash flow and financial position
Balance sheet, cash flow and financial position • Inventories amounted to EUR 222.8 million (190.5) – The increase was due to growth in store network, later start 222,8 of winter and planned increases in SKUs 190,5 • Due to the increase in inventories, cash flow decreased slightly year-on-year and w
Slide 22: Net capital expenditure
Net capital expenditure Net capital expenditure, MEUR • Capital expenditure was mainly focused on – the expansion of the store network 19,8 – renovations of stores 15,4 – the development of digital services • Capital expenditure is expected to be around EUR 15 million in 2020 2018 2019 22 7.5.2020 /
Slide 23: Online sales
Online sales
Slide 24: Online sales grew strongly
Online sales grew strongly • Tokmanni’s online revenue grew by 43.5% in 2019, but share of total revenue is still small, 0.6% (0.5%) • The competitive advantages of Tokmanni's online store – Low prices – Wide and surprising product assortment – Nationwide store network enables fast, reliable deliver
Slide 25: Sustainable Discount Retailer
Sustainable Discount Retailer
Slide 26: Highlights 2019
Highlights 2019 • We started comprehensive cooperation with the Finnish Red Cross • To thank Tokmanni’s employees for their good work, we paid them 1.4 million euros in sales rewards • We joined the international CDP climate evaluation • Our Corporate Responsibility Report 2018 was awarded the “Rise
Slide 27: Highlights 2019
Highlights 2019 • 52 own factory audits • Emissions -14.5% • 96% of factories in high risk countries BSCI audited • We saved over a million plastic bags worth of film plastics 27 7.5.2020 / TOKMANNI - Annual General Meeting 2020
Slide 28: We will offer our customers more responsible choices
We will offer our customers more responsible choices • We will increase certification of our high-risk raw materials (e.g. organic cotton), as well as the number of well-known responsibility labeled products (e.g. vegan) in our selection • We invest in knowing the production conditions and related r
Slide 29: Key focus 2020
KEY FOCUS 2020: Strengthening discount retailer business model Adapting to changing market environment
Slide 30: Targets that drive Tokmanni's business
Targets that drive Tokmanni’s business Sales growth 1 mrd € revenue Improving profitability 9% comparable EBIT margin Inspiring working environment Best place to work in retail Building good future Most sustainable discount retailer 30 7.5.2020 / TOKMANNI - Annual General Meeting 2020
Slide 31: Q1/2020: good performance
Q1/2020: good performance • Revenue grew by 5.8% (8.3%) to EUR 199.0 million (188.1) • Like-for-like revenue grew by 4.4% (4.1%) • Comparable gross profit totalled EUR 63.8 million (58.6), comparable gross margin was 32.1% of revenue (31.2%) • Comparable EBIT was EUR 0.3 million (-2.2), representing
Slide 32: Highlights Q1/2020
Highlights Q1/2020 • Like-for-like revenue developed very well despite the lack of a normal winter season in southern Finland • Positive comparable EBIT for the first time in Tokmanni’s history achieved due to good sales performance, improved gross margin and efficient operations • Due to the COVID-
Slide 33: Impacts of coronavirus on business in Q1/2020
Impacts of coronavirus on business in Q1/2020 • Tokmanni-Europris Shanghai trading company started daily monitoring in January, delivery delays at worst 3-4 weeks, currently the situation has been normalized • Grocery sales have increased since the start of hoarding • After the restrictions came int
Slide 34: Key measures during a coronavirus epidemic
Key measures during a coronavirus epidemic • Measures to promote safety in stores, warehouses and offices • Contingency plans in stores, logistics centre and office • Close contact with the Tokmanni-Europris sourcing company based in China • Adjusting the business to meet the lower customer visits i
Slide 35: Impacts of coronavirus epidemic on Tokmanni's business
Impacts of coronavirus epidemic on Tokmanni’s business Q1 Initial impact Q2 Significant impact Q3 Stabilization Q4 Recovery • Customer visits are falling, average basket size is • Return to normal opening • Delivery delays from increasing • Start of the Christmas China 3-4 weeks hours season • Addit
Slide 36: Tokmanni's outlook for 2020
Tokmanni’s outlook for 2020 • Due to the uncertainty caused by the coronavirus, the economic and industry’s outlook has changed rapidly. • Since it is still difficult to assess the financial impact of the exceptional situation, Tokmanni Group Corporation will not issue guidance for 2020. • Once visi
Slide 37: Thank you!
Thank you! ir@tokmanni.fi tokmanni.fi