Slide 1: Stockmann Group Financial Statements 2023
Stockmann Group Financial Statements 2023 Susanne Ehnbåge, CEO Annelie Forsberg, CFO 9 February 2024
Slide 2: Agenda
STOCKMANN GROUP Agenda • Business update • Financial development • Way forward • Q&A 2 9.2.2024
Slide 3: Business update
Business update 3 9.2.2024
Slide 4: Highlights 2023
Highlights 2023 Improved adjusted Updated strategies Strengthened operating result and financial targets financial position EUR 80.0 (79.8) million for both divisions Strategic assessment Group’s climate target to crystallise Stockmann plc’s submitted to the Science shareholder value by restructurin
Slide 5: 2023: Adjusted operating result improved, record year for Lindex profitability
BUSINESS UPDATE 2023: Adjusted operating result improved, record year for Lindex profitability Revenue EUR 951.7 (981.7) million Adjusted operating result EUR 80.0 (79.8) million – Lindex division: EUR 633.1 (661.1) million, – Lindex division: EUR 90.3 (90.0) million, in local currencies +2.7% in lo
Slide 6: Fashion accounts for 80% of the Group's revenue
STOCKMANN GROUP Fashion accounts for 80% of the Group’s revenue Revenue split 2023 in EUR By division By market By categories 4% 3% 18% 5% 33% 35% 8% 13% 67% 34% 80% Stockmann Sweden Fashion Lindex Finland Beauty Home Norway Food Other Other 6 19 February 2024
Slide 7: Lindex division
BUSINESS UPDATE Lindex division Full year 2023 • Record in profitability and good sales growth 14.3% adjusted operating margin 2.7% sales growth in local currencies • Outperformed market growth, where sales increased both in physical and digital channels in all main markets, with lingerie the best p
Slide 8: Stockmann division
BUSINESS UPDATE Stockmann division Full year • Stronger focus on prioritising strategic must win areas to build a foundation for profitability and future growth • Improved result during the second half of the year • Successful cost-saving actions of EUR 7.7 million • Significant improvement in free
Slide 9: Financial development
Financial development 9 9.2.2024
Slide 10: Lindex division – Development in Q1–Q4 2023
FINANCIAL DEVELOPMENT Lindex division – Development in Q1–Q4 2023 QUARTERLY REVENUE QUARTERLY OPERATING RESULT Adjusted EUR mill. EUR mill. 200 188.0 39.0 36.2 176.2 168.9 166.9 177.8 172.2 168.2 40 162.0 162.3 32.3 31.2 150 134.0 30 26.2 24.3 23.0 126.5 22.5 22.3 20 98.7 100 10 5.5 5.6 50 0 -10 -7.
Slide 11: Stockmann division – Development in Q1–Q4 2023
FINANCIAL DEVELOPMENT Stockmann division – Development in Q1–Q4 2023 QUARTERLY REVENUE QUARTERLY OPERATING RESULT Adjusted EUR mill. Crazy Days Crazy Days EUR mill. 120 15 106.1 99.7 100.4 9.0 100 10 6.3 81.0 75.8 77.1 80 72.0 68.9 5 3.3 62.2 66.0 64.7 0.2 0.0 56.9 60 0 -1.5 40 -5 -4.0 -3.5 -4.8 20
Slide 12: Stockmann Group – Development in Q1–Q4 2023
FINANCIAL DEVELOPMENT Stockmann Group – Development in Q1–Q4 2023 EUR mill. QUARTERLY REVENUE EUR mill. QUARTERLY OPERATING RESULT Adjusted 300 277.5 272.6 40 35.4 32.9 269.0 274.3 31.6 252.0 244.0 29.6 30.2 26.8 237.8 30 26.1 228.0 226.9 22.0 20.6 198.5 196.1 20 200 155.7 10 0 -2.4 100 -10 -3.7 -20
Slide 13: Profitability levels of the divisions
FINANCIAL DEVELOPMENT Profitability levels of the divisions EUR mill. Adjusted operating result rolling twelve months 120 100.0 100 93.3 91.3 90.0 90.0 91.0 90.3 87.3 80.3 80 70.8 62.1 60 47.1 40.9 42.9 39.6 40 36.2 33.5 20 2.9 0 -1.8 -5.1 -2.5 -2.3 -5.4 -5.1 -9.9 -7.0 -6.3 -20 -12.0 -16.8 -17.8 -40
Slide 14: Operating free cash flow (excluding OCDC investment)
FINANCIAL DEVELOPMENT Operating free cash flow (excluding OCDC investment) EUR mill. EUR mill. Per division 2023 Per item 2023 100 200 180 90 87 180 80 160 71 70 -12 140 -4 60 120 50 100 11 40 80 -98 71 30 60 -22 20 40 10 20 0 0 Lindex division Stockmann division Group Costs Group EBITDA excl IAS Le
Slide 15: Improved financial position – positive net debt
FINANCIAL DEVELOPMENT Improved financial position – positive net debt Cash Conversion of unsecured Divestment of the EUR 137.5 mill. debt to senior secured bonds property in Tallinn (167.9) EUR mill. Divestment of the 200 property in Riga 100 119 100 73 61 66 36 36 Interest-bearing 0 liabilities (ex
Slide 16: Equity ratio further improved: +60.6% excl IFRS
FINANCIAL DEVELOPMENT Equity ratio further improved: +60.6% excl IFRS % 70 60 50 40 30 20 10 0 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Incl. IFRS 31.12.2023 31.12.2022 Equity EUR mill. 391.5 335.6 IFRS 16 Lease liabilities EUR mill. 587
Slide 17: Lindex division's progress on financial targets
BUSINESS UPDATE Lindex division’s progress on financial targets Target 2023 2022 3–5% annual local currency 2.7 10.9 revenue growth in the mid- term and reaching an annual revenue of SEK 10 billion by 2030, % 30% digital share of revenue 19.0 18.5 in the mid-term, % 15% adjusted operating 14.3 13.6
Slide 18: Stockmann division's progress on financial targets
BUSINESS UPDATE Stockmann division’s progress on financial targets Target 2023 2022 Revenue growth in line with -0.6 10.0 market* growth in the mid- term, % Reaching a positive free -12.0 -20.9 cash flow in the mid-term, EUR mill. 5% adjusted operating -2.0 -1.7 margin in the mid-term, % * Stockmann
Slide 19: Financial highlights 2023
Financial highlights 2023 Stockmann Group Record-breaking EUR 90.3 mill. adj. Significant Strengthened operating result improvement in financial and 14.3% adj. free cash flow position operating margin Continued strong Successful Improved growth in local cost savings equity ratio currencies of EUR 7.
Slide 20: Way forward
Way forward 20 9.2.2024
Slide 21: Lindex division: Clear strategy for value creation
Lindex division: Clear strategy for value creation Transform to a Decouple cost Accelerate growth sustainable business from growth 21
Slide 22: Lindex division – 2024, a year of important launches
WAY FORWARD Lindex division - 2024, a year of important launches • Launch new omnichannel distribution centre • Continue implement digital store program – Roll out new POS and RFID in all stores • Scale up e-commerce and marketplaces and grow with new sales channels • Digitalise our supply chain – I
Slide 23: Stockmann division: Customer centric strategy to ensure profitability and future growth
Stockmann division: Customer centric strategy to ensure profitability and future growth Grow and leverage Ensure seamless Elevate offering loyal customer base omnichannel experience + Improve further operational efficiency + Expand revenue horizons 23
Slide 24: Stockmann division – regaining profitability in 2024
WAY FORWARD Stockmann division - regaining profitability in 2024 • Elevate the unique omnichannel offering by adding focus on luxury and premium brands • Leverage loyal customer base by personalising offering and communications • Continue focus on cost efficiency • Invest in digitalisation to improv
Slide 25: Market Outlook for 2024 Guidance for 2024
WAY FORWARD Market Outlook for 2024 Guidance for 2024 The market environment in 2024 is expected to In 2024, the Stockmann Group expects its remain challenging. The macroeconomic situation revenue to increase by 1-3% in local currencies in Europe remains uncertain due to the continuing compared to 2
Slide 26: Q&A Further information
Q&A Further information stockmanngroup.com investor.relations@stockmann.com 26 9.2.2024