Marimekko Oyj · OMXHEX:MEKKO
Marimekko Oyj — Investor Day (September 2022)
65 slides from Marimekko Oyj's investor day presentation, Sep 14, 2022
Slide 1: Capital Markets Day
MARIMEKKO Capital Markets Day 14 September 2022 © Marimekko 1
Slide 2: Agenda of the day
Agenda of the day Opening of the event Mika Ihamuotila Scaling up Marimekko! Marimekko strategy period 2023–2027: SCALE Tiina Alahuhta-Kasko Determined sustainability efforts support our long-term success Riika Wikberg Sharpened creative vision to speak to a wider global audience Rebekka Bay Acceler
Slide 3: 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 4: Scaling up Marimekko! Strategy period 2023–2027: SCALE
Scaling up Marimekko! Marimekko strategy period 2023–2027: S-C-A-L-E TIINA ALAHUHTA-KASKO, PRESIDENT AND CEO 14 September 2022 © Marimekko 4
Slide 5: 70-year-old lifestyle design house
70-year-old lifestyle design house 14 September 2022 © Marimekko 5
Slide 6: Our mission is to empower people to be happy as they are
Our mission is to empower people to be happy as they are and bring joy to their everyday lives through bold prints and colors. 14 September 2022 © Marimekko 6
Slide 7: Bold prints and colors as our unique DNA and differentiating factor
Bold prints and colors as our unique DNA and differentiating factor 14 September 2022 © Marimekko 7
Slide 8: Our customers are empowered and open-hearted urban explorers
Our customers are empowered and open-hearted urban explorers, conscious consumers, who march to their own beat in life. 14 September 2022 © Marimekko 8
Slide 9: Marimekko lifestyle today: Fashion, Bags & accessories, Home
Marimekko lifestyle today: Fashion, Bags & accessories, Home 14 September 2022 © Marimekko 9
Slide 10: Three product lines offering a unique lifestyle experience
Three product lines offering a unique lifestyle experience and balancing seasonal differences and cyclicality Marimekko net sales by channel (M€) Marimekko net sales by product line (M€) 152 152 2% 125 124 125 20% 124 112 2% 2% 112 102 1% 102 25% 53% 22% 2% 43% 26% 49% 28% 44% 74 52% 74 43% 3% 38% 4
Slide 11: Key markets Northern Europe, the Asia-Pacific region and North America
Key markets Northern Europe, the Asia-Pacific region and North America → Online store serving customers in 35 countries. → Some 150 Marimekko stores and shop-in-shops with flagship stores in Helsinki, Stockholm, New York, Tokyo and Sydney. → Global brand collaborations with leading brands. All in
Slide 12: Proven track record
Proven track record KEY MILESTONES ACHIEVED IN STRATEGY PERIOD 2018–2022 14 September 2022 © Marimekko 12
Slide 13: Successful execution of strategy seeking stronger profitable growth
Successful execution of strategy seeking markedly stronger profitable growth by speaking to a broader global target audience Brand and collection Accelerating New customer Strengthened Top brand modernization to digital business to acquisition key city ecosystems to collaborations to appeal to a wid
Slide 14: Strong performance throughout strategy period with 2021 record year
Strong performance throughout strategy period with 2021 record year exceeding previous long-term financial goals +20% of international brand sales CAGR 2017–2021 demonstrating expanded global presence of Marimekko Marimekko brand sales (M€) Marimekko net sales (M€) Marimekko comparable operating pro
Slide 15: Continued profitable growth enabling stable dividend payouts
Continued profitable growth and strong financial position enabling stable dividend payouts Earnings per share and dividend payout* Net debt / EBITDA at the year end*** Long-term financial goal: 120%** The intention is to pay a yearly dividend. Percentage of 0.72 Long-term earnings per share allocate
Slide 16: Rising to midcap: market capitalization development
Rising to midcap: Strong results reflected in market capitalization development 688 501 369 290 168 82 2017 2018 2019 2020 2021 H1/2022 Market capitalization at the end of period, €M 14 September 2022 © Marimekko 16
Slide 17: Marimekko's performance among the top of the industry despite the pandemic
Marimekko’s performance among the top of the industry despite the pandemic 60 Ranking high especially in 50 relative profitability, 40 Sales dev. 2021 to 2019 (%) after luxury 30 players 20 10 0 -10 -20 -30 -40 -40 -30 -20 -10 0 10 20 30 40 2021 EBIT margin (%) Competitor benchmarking of sales devel
Slide 18: SCALE
With a proven recipe for success, the next phase on our journey is all about scaling up! SCA L E 14 September 2022 © Marimekko 18
Slide 19: SCALE strategic success factors
Net sales +15% Comparable operating profit margin 20% SCALE Determined SUSTAINABILITY efforts support Sharpened CREATIVE VISION to Accelerating growth in ASIA LOVE for Marimekko Life END-TO-END DIGITALITY to boost omni- Strategic success factors our long-term speak to a channel growth success wider
Slide 20: Determined sustainability efforts support our long-term success
S C A L E Determined sustainability efforts support our long-term success RIIKA WIKBERG, CHIEF BUSINESS DEVELOPMENT OFFICER 14 September 2022 © Marimekko 20
Slide 21: Sustainability and timeless design are deeply rooted in our values
Sustainability and timeless design are deeply rooted in our values “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 14 Sep
Slide 22: Sustainability efforts strongly support our long-term success
Sustainability efforts strongly support our long-term success Reinforcing Marimekko’s competitiveness and desirability 85% 34% of consumers indicate that of consumers are willing to they have shifted their pay more for sustainability 1 purchasing behavior towards being more sustainable in the past f
Slide 23: Aiming to be at the forefront of more sustainable products and practices
OUR AMBITIOUS SUSTAINABILITY JOURNEY Aiming to be at the forefront of developing more sustainable products and practices Joy in the Our own printing community factory as a test lab Wear, care and repair Marimekko’s sustainability vision is founded on three guiding principles: Timeless design brings
Slide 24: Timeless design brings joy for generations to come
PRINCIPLE 1/3 Timeless design brings joy for generations to come Sustainability is part of our DNA at Marimekko. Our design philosophy and our operations have for over 70 years been based on longevity: we want to offer our customers timeless, functional and durable products that bring them long-last
Slide 25: Marimekko Pre-loved secondhand marketplace launched
Marimekko Pre-loved secondhand marketplace launched to help consumers prolong the life of our products • A community-driven peer-to-peer and business-to-consumer marketplace for pre- loved Marimekko items to bring joy to existing and completely new Marimekko customers • A dedicated vendor profile (s
Slide 26: The products of tomorrow leave no trace
PRINCIPLE 2/3 The products of tomorrow leave no trace Several initiatives ongoing to significantly reduce greenhouse gas (GHG) emissions in our entire value chain by the end of 2025 OWN OPERATIONS MORE SUSTAINABLE MATERIALS LOGISTICS GHG emission GHG emission GHG emission -40% reduction in own CO2e
Slide 27: Collaborating on sustainability innovations
We are dedicated to promote and collaborate on sustainability innovations, including new technologies, materials and business models New materials & dyeing innovations New services & business models New production & business processes 2ND COTTON & HAND SUPPLY VISCOSE SERVICE CHAIN ALTERNATIVES TRACE
Slide 28: Marimekko commits to Science Based Targets initiative
Marimekko commits to Science Based Targets initiative to further reduce greenhouse gas emissions On our sustainability journey, each milestone is followed by a new goal • Marimekko will set science-based targets that support the Paris Climate Agreement goals of limiting global warming to well below
Slide 29: Positive change through fairness & equality
PRINCIPLE 3/3 Positive change through fairness & equality Fairness and equality have always been important principles for Marimekko and we want to promote their implementation and see to it that our entire value chain is built on these principles. Our strong values and common principles as well as c
Slide 30: Sharpened creative vision to speak to a wider global audience
S C A L E Sharpened creative vision to speak to a wider global audience REBEKKA BAY, CREATIVE DIRECTOR 14 September 2022 © Marimekko 30
Slide 31: Ready-to-wear as the communicational spearhead of the Marimekko lifestyle
Sharpened creative vision to speak to a wider global audience Ready-to-wear as the communicational spearhead of the Marimekko lifestyle Our sharpened creative vision and new assortment strategy enable fully integrated design vision, communications and commercial strategy throughout collection develo
Slide 32: Archetypes, blocks and modularity in the assortment strategy
Archetypes, blocks and modularity represent key building blocks of the new implemented assortment strategy ARCHETYPES BLOCKS MODULARITY Collection Relaxed a-line A Line Slim a-line Classics Own Channel Fit & Exclusives Flare Lunar New Slim straight Relaxed straight Year Straight Japan Exclusives Tim
Slide 33: Creating recognizability in archetype silhouettes
Creating recognizability in archetype silhouettes – as much as in prints Spring 2022 2.9.2022 © Marimekko 33
Slide 34: Sustainable design principles as foundation of sustainability vision
Sustainable design principles as foundation of ambitious sustainability vision SUSTAINABLE LIFESTYLE VISION Sustainability embedded in the design principles: designing for circularity, upcycling and recycling, material innovations, raw materials, chemical free tanning, natural dyes and traceability
Slide 35: Meeting consumer needs in Asia will be a key success factor
Meeting consumer needs in Asia will be a key success factor RELEVANT ARCHETYPES: Identifying and implementing the most important archetype silhouettes for consumers in Asia and understanding preferences in color and print. CONVERTING FIT AND SIZE: Identifying and implementing the most important fits
Slide 36: Accelerating growth in Asia
S C A L E Accelerating growth in Asia HEIDI CHENG, HEAD OF MARKET AREA, JAPAN 14 September 2022 © Marimekko 36
Slide 37: Asia as the most important geographical area for international growth
Asia as the most important geographical area for international growth GROWING MARKET BRAND FIT PROVEN TRACK RECORD High growth potential in Asia thanks to Our unique brand story and design language Successful loose franchise partnership continuing urbanization, growing middle class, with joyful aest
Slide 38: Proven loose franchise partnership model in Asia
Proven loose franchise partnership model in Asia Current partner model allows building a global brand and scaling up growth with low risk and capex investments Unique Local market omnichannel store and consumer Components of proven partner model in Asia: experience expertise • Partner opening (capex
Slide 39: Opportunities for continued growth in existing markets
Opportunities for continued growth in existing markets Existing markets still have significant opportunity for new store openings and growth of digital sales given large population and growth Online store Marimekko Population 2 Long-term GDP opened stores 1 growth forecast 3 Greater 2019 18 1,411 M4
Slide 40: Building on established brand presence in Japan
Building on established brand presence in Japan with experiential and inspiring retail spaces to attract new target audience 14 September 2022 © Marimekko 40
Slide 41: Building brand excitement and community around the Marimekko lifestyle
Succesfully building brand excitement and community around the Marimekko lifestyle 14 September 2022 © Marimekko 41
Slide 42: Asia provides attractive opportunities for opening new markets
Asia provides attractive opportunities for opening new markets in the long-term Young population, high mobile and social media use and growing Key criteria for selection of potential new markets in Asia: • Economic: GDP per capita, GDP growth and ease of doing business as middle class fueling increa
Slide 43: Our key markets each play a distinct role
Our key markets each play a distinct role in the global Marimekko ecosystem North America Scandinavia Finland Sales & image Sales & image Strong home market contributor contributor – – – Fueling international Introducing our Introducing our growth. brand to the next brand to the next Helsinki as the
Slide 44: Omnichannel key city strategy fueling local and global demand
Omnichannel key city strategy fueling both local and global demand Approaching main markets via key cities with global relevance Helsinki Copenhagen Selected stores Seamless and Stockholm to capture sales exciting digital and inspire with experience to meaningful experience gain reach and and commun
Slide 45: Love for Marimekko Life
S C A L E Love for Marimekko Life SANNA-KAISA NIIKKO, CHIEF MARKETING OFFICER AND TANYA STROHMAYER, CHIEF PEOPLE OFFICER 14 September 2022 © Marimekko 45
Slide 46: Cultivating love for Marimekko life
Cultivating love for Marimekko life, both within our growing customer community and internally within our Marimekko team, is our top priority 1 2 3 4 Value-based, Creative brand Brand Growing the unique brand story experiences that collaborations to Marimekko with optimism and connect the introduce
Slide 47: Connecting with customers through our value-based brand story
Connecting with our customers through our value-based, unique brand story with optimism and the art of printmaking at heart 1 Leveraging Marimekko’s heritage and values as anchors of our empowering brand story to respond to consumers’ increasing need for optimism and hope in the volatile and uncerta
Slide 48: Creative brand experiences connecting lifestyle with local art and culture
Standing out with creative brand experiences that connect the Marimekko lifestyle with local art, culture and communities 2 Building on Marimekko’s unique artistic foundation and link to culture by connecting with globally and locally interesting communities, creatives and institutions. Further elev
Slide 49: Introducing Marimekko to new audiences with brand collaborations
Introducing Marimekko to new audiences internationally with global and local brand collaborations 3 Top-tier global brand collaborations that grow international brand awareness and crystallize positioning. Selected local brand collaborations that increase local relevance and connect Marimekko to the
Slide 50: Growing the Marimekko phenomenon together with our customers
Growing the Marimekko phenomenon together with our customers 4 Social media and PR representing key communication channels for Marimekko. Deepening the relationships and engagement with our customers around the world with our community program and active community management. Growing our brand story
Slide 51: Creating joy through strong values and purpose-driven culture
5 Creating joy through our strong values and purpose-driven culture, and creative and entrepreneurial mindset 5 Our meaningful purpose and values, culture fostering creativity and internal entrepreneurship as well as efforts to promote diversity, equity and inclusion create a strong foundation for M
Slide 52: End-to-end digitality to boost our growth and efficiency
S C A L E End-to-end digitality to boost our growth and efficiency KARI HÄRKÖNEN, CHIEF DIGITAL OFFICER 14 September 2022 © Marimekko 52
Slide 53: Omnichannel Direct-to-Consumer at the core of distribution strategy
Omnichannel Direct-to-Consumer at the core of our distribution strategy Direct-to-Consumer (DTC) Marimekko online store and omnichannel retail, operated by the company or its partners, at the core of distribution strategy Physical & online retailers Brand collaborations Select, growingly online, Str
Slide 54: A digital-enabled seamless omnichannel customer journey is key
A digital-enabled seamless omnichannel customer journey is key Digital first mindset in go-to-market strategies and ecommerce an important driver of growth. WeChat Learning from the most competitive online markets: (Mainland China) the US and China Live Tmall commerce (Mainland China) → Continuous
Slide 55: Solid set of omnichannel capabilities in place
We already have a solid set of omnichannel capabilities in place to further build on Finland International 1 Feature in development. Proof of concept in place pending international Store product Check online whether product is rollout availability available in a selected store √ √ 2 Return online pu
Slide 56: Physical stores as hearts of brand culture
While we think digital first, physical stores play an important role as the hearts of brand culture, fueling also online growth Even in the digitalized world, physical stores play a significant part in the omnichannel customer journey not only as sales channels but as hearts of brand culture, inspir
Slide 57: Accelerating the wider digitalization of Marimekko
We will work actively to accelerate the wider digitalization of Marimekko as new technologies and data bring opportunities benefiting our entire value chain Examples of potential future solutions: Design Supply chain Logistics Sales & Service 3D Design expansion Artificial intelligence Increased use
Slide 58: Raised long-term financial goals
Raised long-term financial goals ELINA ANCKAR, CHIEF FINANCIAL OFFICER 14 September 2022 © Marimekko 58
Slide 59: Targeting strong profitability by scaling growth
Targeting strong profitability by scaling growth Annual growth in net sales 15% earlier: over 10% UPDATED Comparable operating profit earlier: 15% margin 20% LONG-TERM FINANCIAL GOALS: Ratio of net debt to EBITDA at unchanged year end max. 2 The intention is to pay a yearly unchanged dividend; perce
Slide 60: Key growth drivers 2023–2027
Key growth drivers 2023–2027 Continuing Lifestyle Accelerating Expanding Gaining market growth of assortment international reach and share in the digital and catering to wide sales growth by Exploring acquiring new strong home omnichannel price points – increased opening of new customers market Finl
Slide 61: Key profitability drivers 2023–2027
Key profitability drivers 2023–2027 → SCALE: targeting sales growth across market areas with focus on Asia as the most important geographical area for international growth → Drivers impacting relative sales margin • Increased pricing power as a result of strengthened brand equity and desirability •
Slide 62: Potential for operational leverage through scale
Illustrative example: Potential for operational leverage through scale Scale benefits via Logistics increased efficiency achieved from e.g. process automation Scaling up growth in Design Scale benefits in design and Sales ecommerce and in Asia product development in our partner-operated supported by
Slide 63: Managing possible downturn with stronger brand and collections
Managing possible downturn with stronger than ever Marimekko brand and collections → Leveraging brand hype with commercial excellence: dynamic omnichannel retailing and customer success management in wholesale. → Fostering globally growing, loyal customer base with strong customer relationship manag
Slide 64: Recap of the day: Why invest in Marimekko?
Recap of the day: Why invest in Marimekko? TIINA ALAHUHTA-KASKO, PRESIDENT AND CEO 14 September 2022 © Marimekko 64
Slide 65: Attractive opportunity to scale profitable growth of global brand
RECAP OF THE DAY: 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