Lindex Group Plc Class B · OMXHEX:LINDEX
Lindex Group Plc Class B — Stockmann Group — H1 2023 Earnings Presentation
24 slides from Lindex Group Plc Class B's earnings presentation, Jul 21, 2023
Slide 1: Stockmann Group Half-year Financial Report 2023
Stockmann Group Half-year Financial Report 2023 Susanne Ehnbåge, CEO Annelie Forsberg, CFO 21 July 2023
Slide 2: Agenda
STOCKMANN GROUP Agenda - Introduction - Business update - Financial development - Way forward - Q&A 2 21.7.2023
Slide 3: The new Stockmann Group CEO
INTRODUCTION Susanne Ehnbåge: The new Stockmann Group CEO On 12 May 2023, Stockmann’s Board of Directors appointed Susanne Ehnbåge as CEO for the Stockmann Group – Joined Lindex as CEO in 2018 Group Management Team consists of • Susanne Ehnbåge CEO Stockmann Group & CEO Lindex • Annelie Forsberg CFO
Slide 4: The Lindex division and fashion are driving the Group
STOCKMANN GROUP TODAY The Lindex division and fashion are driving the Group 438 BY DIVISION Lindex and Stockmann stores Lindex stores Stockmann 33% FASHION STORES Lindex 67% 8 DEPARTMENT STORES 18 BY MARKET Finland 17% 33% B&M STORES IN COUNTRIES Sweden 14% 34 Norway Other 36% OWN E-COMMERCE IN MARK
Slide 5: Business update
Business update 5 21.7.2023
Slide 6: Stockmann Group business update: Q2 highlights
BUSINESS UPDATE Group’s revenue, EUR million Stockmann Group - Highlights in the second quarter 252.0 (269.0) Challenging market conditions Group’s adjusted operating result, EUR million 31.6 Group’s revenue on par - -0.5% in local currency and -6.3% in EUR (35.4) - Heavy currency impact from weak S
Slide 7: Lindex division
BUSINESS UPDATE Lindex division • Digital and physical sales growth with improved profitability • Expensive US Dollar, raw material prices and inflation impacted operations – but were successfully mitigated • Increased number of customers • Lingerie best performing category • Continued our femtech j
Slide 8: Stockmann division
BUSINESS UPDATE Stockmann division • Revenue increased during the first half-year with a strong Q1 growth, decreased in Q2 • Increased number of new loyalty programme members and improved customer satisfaction • Customer-driven development of department stores into inspiring destinations • Strengthe
Slide 9: Financial development
Financial development 9 21.7.2023
Slide 10: Macrotrends impacting our business
FINANCIAL DEVELOPMENT Macrotrends impacting our business EURO to SEK Factors impacting +16% the Stockmann Group • Currency effects • EUR/SEK vs PY +12% EUR/SEK vs PPY +16% • USD/SEK vs PY +6% USD/SEK vs PPY +27% USD to SEK • Raw material prices +27% • Container and freight prices • Inflation • Custo
Slide 11: Lindex – Sales growth in LC and improved profitability
FINANCIAL DEVELOPMENT Lindex – Sales growth in LC and improved profitability 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 40 162.0 32.3 31.2 150 134.0 30 24.3 23.0 126.5 22.5 20 98.7 100 10 5.5 5.6 50 0 -10 -7.6 0 -20 1-3
Slide 12: Stockmann division – Sales increase Q1-Q2
FINANCIAL DEVELOPMENT Stockmann division – Sales increase Q1-Q2 QUARTERLY REVENUE QUARTERLY OPERATING RESULT EUR mill. Adjusted EUR mill. 120 15 99.7 100.4 100 10 6.3 81.0 75.8 77.1 80 72.0 68.9 5 3.3 66.0 62.2 0 0.2 56.9 60 0 -1.5 40 -5 -4.0 -3.5 20 -10 -7.3 -7.0 -15 -12.1 0 1-3 4-6 7-9 10-12 -20 1
Slide 13: Stockmann Group – Impacted by reporting currency
FINANCIAL DEVELOPMENT Stockmann Group – Impacted by reporting currency EUR mill. QUARTERLY REVENUE EUR mill. QUARTERLY OPERATING RESULT Adjusted 300 277.5 272.6 40 35.4 32.9 269.0 31.6 252.0 244.0 29.6 26.8 237.8 30 26.1 228.0 22.0 198.5 196.1 20 200 155.7 10 0 -2.4 100 -10 -3.7 -20 -21.1 0 -30 1-3
Slide 14: Profitability level of divisions – Lindex impacted by reporting currency
STOCKMANN GROUP Profitability level of divisions – Lindex impacted by reporting currency EUR mill. Adjusted operating result rolling twelve months 120 100.0 100 93.3 91.3 90.0 90.0 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 -20 -16.8 -
Slide 15: Total cash flow in Q2 and YTD 2023
STOCKMANN GROUP Total cash flow in Q2 and YTD 2023 EUR mill. EUR mill. 300 200 30 180 250 78 160 55 -3 -25 140 -16 -3 -6 133 200 -6 -51 120 168 103 -30 100 150 -18 133 -6 -7 80 100 60 40 50 20 00 00 h A s ts s g r h as h TD A WC nt s nt s es rin g he r as h as TD WC e nt en ax e rin ot he as e e ax
Slide 16: Strong financial position – positive net debt
STOCKMANN GROUP Strong financial position – positive net debt Cash Conversion of unsecured Divestment of the EUR 132.7 mill. debt to senior secured bonds property in Tallinn (EUR 184.6 mill. 06/2022) EUR mill. Divestment of the 200 property in Riga 100 119 100 73 36 61 Interest-bearing 0 liabilities
Slide 17: Equity ratio further improved: +58.4% excl IFRS
STOCKMANN GROUP, BALANCE SHEET ITEMS Equity ratio further improved: +58.4% excl IFRS % 60 50 40 30 20 10 0 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Incl. IFRS Excl. IFRS 30 June 2023 30 June 2022 31 December 2022 Equity E
Slide 18: Earnings per share
STOCKMANN GROUP, EARNINGS PER SHARE Earnings per share R12 months 1-6/2023 1-6/2022 1-12/2022 30 June 2023 Average number of shares, undiluted and diluted Thousand 156 021 154 618 155 189 155 885 Earnings per share, undiluted and diluted * EUR 0.21 0.54 0.65 0.33 Operating result EUR mill. 27.3 124.
Slide 19: Way forward
Way forward 19 21.7.2023
Slide 20: Lindex division – Continue to grow and stay resilient
WAY FORWARD Lindex division - Continue to grow and stay resilient • Growth on new and existing markets – Customer-oriented sustainable assortment – Explore and pilot new sales channels – Launch of new innovative femtech products from our Female Engineering brand • Stay resilient and transform the bu
Slide 21: Stockmann division – Strengthen customer-centricity and improve profitability
WAY FORWARD Stockmann division - Strengthen customer-centricity and improve profitability • Customer-centric growth – Touch of luxury – partner collaboration and offering – Refurbishment of the Helsinki flagship store – Attracting and activating loyalty members – Smooth omnichannel experience throug
Slide 22: Market Outlook for 2023
WAY FORWARD Market Outlook for 2023 The current challenging geopolitical situation and the high inflation level are expected to continue. However, inflation is predicted to slow down compared to the latter part of the year 2022. The inflation together with high interest rates, is forecast to have a
Slide 23: Guidance for 2023
WAY FORWARD Guidance for 2023 (updated on 17 July 2023) In 2023, Stockmann expects; The Group’s revenue to be in the range of: EUR 940–1 000 million (formerly 960 – 1 020) The Group’s adjusted operating result to be: EUR 65–85 million (formerly 60-80) subject to foreign exchange rate fluctuations. T
Slide 24: Q&A Further information
Q&A Further information stockmanngroup.com investor.relations@stockmann.com 24 21.7.2023