Slide 1: Financial Statements 2016
FINANCIAL STATEMENTS 2016 Stockmann Group | 15 February 2017
Slide 2: Year 2016: Operating result back to profit
YEAR 2016: OPERATING RESULT BACK TO PROFIT Gross margin • Stockmann Group 53.4% – Adjusted operating profit up by EUR 49 million – All divisions improved operating results – Target of the efficiency programme reached: operating costs down by EUR 66 million (50.6%) – Hobby Hall divested on 31 Decembe
Slide 3: Turnaround on track
TURNAROUND ON TRACK Stockmann Group, rolling 12-month adjusted operating profit (EBIT) 30 20 10 0 -10 -20 -30 -40 -50 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016 Q4/2016 STOCKMANN 15.2.2017 3
Slide 4: Focus on key businesses
FOCUS ON KEY BUSINESSES MERCHANDISE SALES 2016 REVENUE 2016 BY DIVISION Real Estate 5% Stockmann Food Retail 45% 15% Home Lindex 5% 50% Cosmetics REVENUE 2016 BY MARKET 9% Baltics, Russia and other countries 14% Finland Fashion 45% 71% Sweden and Norway All figures excluding Hobby Hall and discontin
Slide 5: Stockmann Group, financial performance in Q4 2016
STOCKMANN GROUP, FINANCIAL PERFORMANCE IN Q4 2016 • Revenue EUR 388.4 million (EUR 420.0 million) QUARTERLY REVENUE – Down by 6.5% in continuing product areas and businesses EUR mill. 500 • Gross margin 53.5 % (51.0 %) 400 – Improvements in both Stockmann Retail and Lindex 300 200 • Adjusted operati
Slide 6: Key figures
KEY FIGURES Q4/2016 Q4/2015 1–12/2016 1-12/2015 Equity ratio % 48.3 46.1 Gearing % 68.3 72.1 Net financial costs* EUR mill. 9.1 7.2 23.1 21.2 Result for the period EUR mill. 22.4 -19.1 -18.2 -88.9 Earnings per share EUR 0.29 -0.27 -0.33 -1.24 Net earnings per share, EUR 0.36 -1.26 -0.12 -2.43 includ
Slide 7: Market environment and outlook for 2017
MARKET ENVIRONMENT AND OUTLOOK FOR 2017 • In Finland, economy has slowly begun to recover. GDP is expected to grow slightly. Consumers’ purchasing power is not expected to increase. • In Sweden, GDP growth estimate remains on a higher level than in Finland. Steady growth in the fashion market stagna
Slide 8: Changes in sales reporting in 2017
CHANGES IN SALES REPORTING IN 2017 • Due to the new Market Abuse Regulation (MAR) and changes in the rules by the Nasdaq Helsinki, monthly sales figures are not regarded as Group’s revenue insider information anymore. – Sales development should be published as a press release, not as a stock in Janu
Slide 9: Entering the next phase: focus on customer experience
ENTERING THE NEXT PHASE: FOCUS ON CUSTOMER EXPERIENCE • Key focus for Stockmann is to create new reasons to visit our stores, in order to increase traffic and sales • We are on track to reach our target of achieving a positive operating profit for Stockmann Retail by the end of 2018 Customer Premium
Slide 10: Lindex
LINDEX STOCKMANN 15.2.2017 10
Slide 11: Lindex, highlights in 2016
LINDEX, HIGHLIGHTS IN 2016 • Best sales ever for the first half of 2016, all-time high result for Q2 • Successful campaigns and improvements in meeting the customer • Tough autumn with reduced traffic in the stores and high comparable sales figures • Reduced number of unprofitable stores and lower c
Slide 12: Lindex, financial performance in Q4 2016
LINDEX, FINANCIAL PERFORMANCE IN Q4 2016 • Revenue down 7.2% to EUR 171.3 million (EUR 184.6 million) QUARTERLY REVENUE – At comparable exchange rates down 4.7%, or 4.0% in comparable stores EUR mill. – Fantastic sales on Black Friday in November, but Christmas trade did not reach 200 its target par
Slide 13: International expansion
INTERNATIONAL EXPANSION • Store network on 31 December 2016 4 58 – 475 stores in 16 countries, 102 of which 39 franchising stores – 2 stores opened and 3 closed 209 10 in Q4 2016 9 – 13 stores opened and 25 closed 8 in full-year 2016 2 4 25 • New stores & markets in 2017 9 – Over 15 new own stores i
Slide 14: Lindex way forward
LINDEX WAY FORWARD • Strong sales focus with customer in center 4 58 • Launch of new assortment 102 strategy for all product areas in 209 10 order to achieve greater clarity 9 8 • Digital expansion and increased 2 4 focus on enhanced customer 25 experience online 9 3 7 2 1 Own stores 22 Franchising
Slide 15: Stockmann Retail
STOCKMANN RETAIL STOCKMANN 15.2.2017 15
Slide 16: Stockmann Retail, highlights in 2016
STOCKMANN RETAIL, HIGHLIGHTS IN 2016 • Operating result improved by approx. EUR 20 million – Efficiency programme generates cost savings according to plan • Withdrawal from non-profitable businesses affected revenue significantly – Changes in product mix and reduced store space – Department store op
Slide 17: Stockmann Retail, financial performance in Q4 2016
STOCKMANN RETAIL, FINANCIAL PERFORMANCE IN Q4 2016 • Revenue EUR 207.6 million (EUR 228.5 million) QUARTERLY REVENUE – Down by 8.3% in continuing product areas and businesses EUR mill. – Best development in the Baltic stores 300 – Revenue declined most in Oulu, where the store was closed on 31 Janua
Slide 18: Over 30 new brands and pop-ups in spring 2017
OVER 30 NEW BRANDS AND POP-UPS IN SPRING 2017 STOCKMANN 15.2.2017 18
Slide 19: The new Stockmann Tapiola will open on 16 March 2017
THE NEW STOCKMANN TAPIOLA WILL OPEN ON 16 MARCH 2017 • Completely new department store concept • Effective sales area 9 000 sqm in total • Broad walking boulevards, displaying seasonal themes, new arrivals and offers for loyal customers • Several new international and Finnish brands in the selection
Slide 20: Stockmann Tapiola, new location
STOCKMANN TAPIOLA, NEW LOCATION New department store Old department store STOCKMANN 15.2.2017 20
Slide 21: Stockmann Tapiola, new Delicatessen
STOCKMANN TAPIOLA, NEW DELICATESSEN • Focus on fresh food, high-quality products and convenience • Extensive service counters with generous offerings – open throughout the week, even Sundays • Personal and professional customer service • Food Market with a broad selection of ecological products and
Slide 22: Real Estate
REAL ESTATE STOCKMANN 15.2.2017 22
Slide 23: Real Estate, highlights in 2016
REAL ESTATE, HIGHLIGHTS IN 2016 • Fair value of department store properties increased by over EUR 30 million in 2016 • Stable increase in operating profit, partly due to reclassification of Nevsky Centre as an investment property • New high-end brands and services in the totally renewed street floor
Slide 24: Real Estate, financial performance in Q4 2016
REAL ESTATE, FINANCIAL PERFORMANCE IN Q4 2016 • Fair value of the properties EUR 950.1 million at year-end (EUR 918.2 QUARTERLY REVENUE million on 1 January 2016) EUR mill. 20 • Occupancy rate 99.1% (98.5%) 15 – Increase in Book House in Helsinki and in Tallinn 10 • Net operating income from Stockma
Slide 25: Real Estate, properties
REAL ESTATE, PROPERTIES Key figures Fair value of properties 31.12.2016 31.12.2016, EUR mill. Gross leasable area (GLA) 142 000 sqm, of which 42% in Finland Helsinki flagship building Book House, Helsinki 950.1 (918.2) Occupancy rate Occupancy rate 99.8 Occupancy rate 100.0 99.1% GLA 51 000 GLA 9 00
Slide 26: New cafés in the Helsinki flagship
NEW CAFÉS IN THE HELSINKI FLAGSHIP STOCKMANN 15.2.2017 26
Slide 27: Further information
FURTHER INFORMATION: www.stockmanngroup.com investor.relations@stockmann.com