Lindex Group Plc Class B · OMXHEX:LINDEX
Lindex Group Plc Class B — Stockmann Group — Q1 2019 Earnings Presentation
22 slides from Lindex Group Plc Class B's earnings presentation, Apr 30, 2019
Slide 1: Interim Report Q1 2019
INTERIM REPORT Q1 2019 Lauri Ratia, Executive Chairman Stockmann Group | 30 April 2019
Slide 2: Stockmann Rejuvenation
STOCKMANN REJUVENATION • Stockmann Group’s largest division, Lindex, is estimated to continue its steady performance • Strategy reworked for Stockmann Retail and Real Estate during March-April 2019 • Starting a two-year process, of which Stockmann’s customers will see the outcome gradually • Changin
Slide 3: New Sustainable Business Model
NEW SUSTAINABLE BUSINESS MODEL • Substantial change to be made in Stockmann’s business model with a new simplified organisational structure • Aiming to reduce costs by at least EUR 40 million by spring 2021, of which a major part will be visible already in the 2020 result • More than 2/3 of cost sav
Slide 4: Stockmann Group, Planned New Structure
STOCKMANN GROUP, PLANNED NEW STRUCTURE Corporate Stockmann plc KEY PRINCIPLES governance Board of Directors Stockmann Retail and Real Corporate Management Estate are planned to be combined. Role of categories is planned to be strengthened. Both divisions have a clear CEO CEO management structure and
Slide 5: Q1 2019 in Brief
Q1 2019 IN BRIEF • Stockmann Group Group’s gross margin – Adjusted operating result improved 53.2% (55.1) – Interest-bearing net debt nearly halved, from EUR 801.8 million to EUR 457.1 million • Lindex – Comparable sales up by 2.8%, growth in the online store 41% – Improved gross margin and operatin
Slide 6: Stockmann Group
STOCKMANN GROUP Kai Laitinen CFO
Slide 7: Stockmann Group, Financial Performance in Q1 2019
STOCKMANN GROUP, FINANCIAL PERFORMANCE IN Q1 2019 • Revenue EUR 207.2 million (202.4) QUARTERLY REVENUE – Up by 4.2% in comparable currency rates EUR mill. • Gross margin 53.2% (55.1) 400 – Up in Lindex but down in Stockmann Retail 300 200 • Operating costs down by EUR 26.6 million 100 – Decrease ma
Slide 8: Group's Rolling 12-Month Adjusted Operating Profit
GROUP’S ROLLING 12-MONTH ADJUSTED OPERATING PROFIT EUR mill. 40 30 20 10 0 -10 -20 -30 1-12 4/2015- 7/2015- 10/2015- 1-12 4/2016- 7/2016- 10/2016- 1-12 4/2017- 7/2017- 10/2017- 1-12 4/2018- 2015* 3/2016* 6/2016* 9/2016* 2016 3/2017 6/2017 9/2017 2017 3/2018 6/2018 9/2018 2018 3/2019 STOCKMANN * 2015
Slide 9: Impact of IFRS 16
IMPACT OF IFRS 16 Excluding Reported IFRS 16 items IFRS 16 items Reported EUR million Q1/2019 Q1/2019 Q1/2019 Q1/2018 Revenue 207.2 -0.5 207.8 202.4 EBITDA 14.0 25.5 -11.5 -12.6 Adjusted EBITDA 14.8 25.5 -10.7 -10.6 Depreciation 35.4 21.7 13.7 -14.2 Operating result (EBIT) -21.4 3.8 -25.2 -26.9 Adju
Slide 10: Key Figures
KEY FIGURES Q1/2019 Q1/2018 1-12/2018 Equity ratio % 36.7 41.6 46.2 Net gearing % 123.7 94.4 64.4 Net financial items* EUR mill. -13.8 -8.7 -34.6 Result for the period* EUR mill. -32.4 -30.9 -43.7 Earnings per share* EUR -0.47 -0.45 -0.68 Cash flow from operating activities EUR mill. -20.1 -58.8 82.
Slide 11: Market Environment and Outlook for 2019
MARKET ENVIRONMENT AND OUTLOOK FOR 2019 • Retail growth is estimated to decline somewhat in Finland due to economic slowdown in Finland – Fashion market in Finland in January–March was +2.7% (Q1 2018: -2.3%, source: Fashion and Sport Commerce Association, TMA) • Retail growth is expected to continue
Slide 12: Lindex
LINDEX Susanne Ehnbåge CEO
Slide 13: Lindex, Performance in Q1 2019
LINDEX, PERFORMANCE IN Q1 2019 FINANCIALS QUARTERLY REVENUE Without IFRS 16 effect • Revenue down by 0.3% to EUR 114.5 million (114.8) EUR mill. 200 – Total sales in comparable currencies increased by 4.2% – Comparable sales increased by 2.8% 150 – Online sales increased by 41% 100 50 • Increased gr
Slide 14: Lindex Way Forward
LINDEX WAY FORWARD • Continued sales growth and profitability improvement in focus • High focus on e-commerce and digital development – Release of new e-commerce platform – Launch new online partnerships – Moving into new e-commerce warehouse premises • Inspiring summer collection in design collabor
Slide 15: Stockmann Retail
STOCKMANN RETAIL Tove Westermarck Chief Operating Officer
Slide 16: Stockmann Retail, Performance in Q1 2019
STOCKMANN RETAIL, PERFORMANCE IN Q1 2019 FINANCIALS QUARTERLY REVENUE Without IFRS 16 effect • Revenue EUR 88.0 million (76.3) EUR mill. 150 – Revenue up by 15.4% – Growth in the online store 119% due to the Crazy Days campaign 100 – Total Crazy Days campaign sales (March-April) down by 6% , despite
Slide 17: Demand Is Shifting
DEMAND IS SHIFTING Channels Products Consumer expectations Online Direct Trading up Casualization Demand for Demand for Demand for growth consumer or down newness sustainability personalization contact Finnish Brands seek to Consumers Trend towards Increased Consumer Consumer expects ecommerce estab
Slide 18: Stockmann Retail's Way Forward
STOCKMANN RETAIL’S WAY FORWARD Targeting a Fashion & Style authority position • Clear focus on a core target customer, modern working professional • Reset Fashion, Home and Beauty offering – Strengthen the premium selection – our promise: inspiring quality – Create newness with relevant, sustainable
Slide 19: Real Estate
REAL ESTATE Elena Stenholm Director, Real Estate
Slide 20: Real Estate, Financial Performance in Q1 2019
REAL ESTATE, FINANCIAL PERFORMANCE IN Q1 2019 FINANCIALS QUARTERLY REVENUE Without IFRS 16 effect • Revenue EUR 11.8 million (17.9) EUR mill. 20 – Down due to the divestment of the Book House property in Helsinki and the Nevsky Centre property in St Petersburg 15 10 • Net operating income from own p
Slide 21: Real Estate, Stockmann-Owned Properties in Q1 2019
REAL ESTATE, STOCKMANN-OWNED PROPERTIES IN Q1 2019 • Fair value of the department store properties: EUR 681.0 million (1 January 2019) • Gross leasable area (GLA) 88 000 sqm, of which Stockmann Retail is using 73% • Occupancy rate 98.9% • Target is to give more space to traffic-driving purposes, e.g
Slide 22: Q&A Further information
Q&A Further information stockmanngroup.com investor.relations@stockmann.com STOCKMANN 30.4.2019 22