Slide 1: Q2 report
Q2 report 06 December 2023 Kristofer Tonström President & CEO Pernilla Walfridsson CFO 1
Slide 2: Agenda
• Business update • Financial development Agenda • Events after the reporting period • Summary • Q&A 2
Slide 3: Q2 highlights: strong sales development, improved margin
✓ Continued strong sales development in Q2 with +10% organic growth ✓ Significantly improved gross margin and operating profit ✓ Continued focus on efficiency and flexibility ✓ Prioritized categories and product news driving growth ✓ H1 operating cash flow 520 MSEK (-201) ✓ +7% organic growth in Nov
Slide 4: Business update
Business update 4
Slide 5: Strategy execution – growth plan 24/25
Strategy execution – growth plan 24/25 Organic growth 5% with Industry leading in 1 7-9% EBIT margin 2 sustainability – deliver on our people agenda and 2045 commitments Planet People Society 20/21 21/22 22/23 R12 Q2 23/24 5
Slide 6: Strategy execution – overview Q2 23/24
Strategy execution – overview Q2 23/24 Make assortment relevant A profitable and growing Expand the 12 months/year. online business. store network. ✓ All prioritized categories driving ✓ Online sales +15% Q2 ✓ 10 new stores 23/24 on track growth ~50% of online orders ✓ 3 new and 4 rebuilt/moved stor
Slide 7: Assortment relevance – all consumer missions driving growth
Assortment relevance – all consumer missions driving growth Tidy up Light up Create a conscious Connect & enjoy Fix your your home. your home. home environment. your home. home. Sustainability Spare parts Seasons Consumables assortment 7
Slide 8: Product news creates interest in Clas Ohlson and stands for significant share of growth
Product news creates interest in Clas Ohlson and stands for significant share of growth 8
Slide 9: Value for money position and customer satisfaction key in uncertain market
Value for money position and customer satisfaction key in uncertain market Consumer Confidence development* Q: How affordable do you think the following brands are? Net Promoter Score (NPS) 5.0 57* 0.0 -5.0 Clas Ohlson 5% 58% 37% -10.0 -15.0 (34**) -20.0 Low price competitors average 7% 55% 39% -25.
Slide 10: Spares – a leading company within spare parts and accessories
Spares – a leading company within spare parts and accessories for electronics as well as batteries • The acquisition of Spares finalized on 8 November 2023 ‒ Consolidated into the CO Group as from 1 November 2023, i.e. Q3 • Category expert in spare parts and accessories for electronic devices ‒ trac
Slide 11: Financial development
Financial development 11
Slide 12: Strong sales development in stores and online
Strong sales development in stores and Online onlinesales, MSEK Total sales, MSEK Q2 • Total sales up 9% to 2,460 MSEK, organic sales up 10%, LFL up 10% • Online sales up 15% • The store network has decreased by 3 stores compared to last year Q1-Q2 Online share of total sales (R12), % • Total sales
Slide 13: Increasing sales in all markets
Increasing sales in all markets Sweden Norway Finland Organic Q2: +9% Q2: +13% Q2: +4% growth: Q1-Q2: +9% Q1-Q2: +12% Q1-Q2: +1% 13
Slide 14: Macro trends with business impact
Macro trends with business impact Spot prices for 40t containers from Asia to Gothenburg $18 000 Factors impacting Clas Ohlson: $16 000 $14 000 • Container shipping costs and raw material and commodity prices $12 000 $10 000 • Translation/transaction effects - sales instant effects and purchasing $8
Slide 15: Improved gross margin – great contribution from sourcing and transportation
Improved gross margin – great contribution from sourcing and transportation Sourcing and transportation Currency 41.3% Product and effects (USD) price mix 37.7% Q2 2022/23 Q2 2023/24 15
Slide 16: Financial overview
Financial overview Share of selling expenses, Q2 28.1 Q2 Q2 Q1-Q2 Q1-Q2 MSEK 23/24 22/23 23/24 22/23 % (30.3%) Operating profit excl. one- 277 112 431 131 Administrative expenses, Q2 off items 50 One-off items -31 0 -202 -35 MSEK Operating profit 245 112 230 96 (50 MSEK) EBIT-margin, Q2 Profit after
Slide 17: Well balanced inventory
Well balanced inventory • Inventory level: 2,614 MSEK (2,811) at the end of the period • Average inventory level LTM: 2,280 MSEK (2,319) • Inventory turnover rate DC: 5.1 (4.7) 17
Slide 18: Strong cash flow and solid financial position
Strong cash flow and solid financial position Q2 Q2 Approved credit facilities* 600 MSEK 23/24 22/23 MSEK Cash flow from operating activities, before 375 243 Of which utilised 100 MSEK change in working capital Change in working capital -183 -410 Net debt/EBITDA excl IFRS 16 Cash flow from operating
Slide 19: Events after the reporting period
Events after the reporting period 19
Slide 20: November sales development
November sales development • Total sales, excluding Spares, up 4% to 1,130 MSEK, organic sales MSEK MSEK up 7% and LFL up 6% Total Online ‒ Sweden +7% organic ‒ Norway +7% organic ‒ Finland +6% organic • Online sales, excluding Spares, +12% • Total sales, including Spares, 1,196 MSEK ‒ Online sales,
Slide 21: Summary
Summary 21
Slide 22: Executing on our strategic plan
Executing on our strategic plan • Challenging market and continued uncertainty around consumer spending • Relevant assortment, value for money and increased flexibility is key • Developing our sales channels ‒ Expanding the store network ‒ Growing online sales • Continued cost focus and simpler ways
Slide 23: Q&A
Q&A 23
Slide 24: eeeee
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