Tokmanni Group Oyj · OMXHEX:TOKMAN
Tokmanni Group Oyj — Q3 2016 Earnings Presentation
15 slides from Tokmanni Group Oyj's earnings presentation, Oct 26, 2016
Slide 1: January-September 2016 Business Review
January-September 2016 Business Review CEO Heikki Väänänen & CFO Sixten Hjort
Slide 2: Q3 Highlights: profitability improved, net sales at last year's level
Q3 Highlights: profitability improved, net sales at last year’s level, negotiations about Anttila store space proceeding Profitability improved • Gross margin improvement: more efficient sourcing, increase in direct imports and better campaign management • Cost management Revenue at last year’s leve
Slide 3: Turbulent markets – clearance sale can be seen in non-grocery market
Turbulent markets – clearance sale can be seen in non-grocery market Q3 sales development The sales of department stores and hypermarket chains increased by 4.5% in the third quarter of 2016 and 2.2% during the January-September 2016 period. The non-grocery market grew 6.0% during the third quar
Slide 4: Store network development
Store network development 2016 2017 • Tokmanni had 158 stores at the end of • During 2017, Tokmanni plans to open September 2016 approximately ten new or relocated stores, • During the third quarter 2016, Tokmanni corresponding to approximately 20,000 opened a new store in Ruoholahti in Helsinki squ
Slide 5: Q3 revenue at last year's level - year to date 2.7% growth
Q3 revenue at last year’s level- - year to date 2.7% growth Revenue M€ 600,0 +2.7% 537,6 • Q3 revenue at last 550,0 523.6 500,0 year’s level: 450,0 • According to Tokmanni’s 400,0 calculations, Anttila’s bankruptcy clearance 350,0 sales impacted sales by 300,0 -0.2% -0.4% approx. -2% 250,0 187.0 187
Slide 6: Adjusted gross profit improved thanks to sourcing and campaign management
Adjusted gross profit improved thanks to continuous development of sourcing and better campaign management Adj. gross profit M€ 200,0 • In accordance with 180,0 184,4 company strategy gross 177,6 +4.0%% 160,0 profit improved: 140,0 120,0 • more efficient sourcing 100,0 • increase in direct imports 8
Slide 7: Q3 adjusted opex increased slightly due to new stores and extended opening hours
Q3 adjusted opex increased slightly due to new stores and extended opening hours • Tight cost control continues • Opex increase mainly attributable to – new stores – extended opening hours • Operating expenses were impacted positively by Property, rents, Opex New stores and Extended Marketing Opex –
Slide 8: Improved gross margin and tight cost control support profitability development
Impoved gross margin and tight cost control support profitability development Adjusted EBITDA M€ 40,0 Improved profitability: 35,0 • efficient ramp-up of new stores 35,5 30,0 32,1 • more efficient sourcing 25,0 • increase in direct imports 20,0 • better campaign management 15,0 17,3 18,1 • cost mana
Slide 9: New finance structure reflected in Q3 financial costs
New finance structure reflected in Q3 financial costs 7-9/2016 7-9/2015 1-9/2016 1-9/2015 1-12/2015 Q3 financial costs reflect Net financial costs, MEUR -1,5 -5,3 -13,8 -15,8 -20,9 Tokmanni’s current Capital expenditure, MEUR 2,4 -3,9 5,3 3,9 9,0 Net debt / adjusted EBITDA 2,5 3,4 2,5 3,4 2,7 financ
Slide 10: Market outlook
Market outlook • Tokmanni expects the weak economic conditions to continue or to improve slightly in 2016. • Competition expected to remain high in the Finnish retail market in 2016. • The Anttila bankruptcy has disrupted the market during the third quarter but the effects will be smaller in the fou
Slide 11: Tokmanni's short term outlook unchanged
TOKMANNI’S SHORT TERM OUTLOOK UNCHANGED : Tokmanni estimates its revenue to grow based on the revenue from new and relocated stores opened in 2015 and 2016, and on revenue of like-for-like stores, which is expected to remain at the level of the previous year. 11 26.10.2016 TOKMANNI - January-Septemb
Slide 12: Appendix
Appendix 12 26.10.2016 TOKMANNI - January-September 2016 Business Review
Slide 13: Adjustments affecting comparability
Adjustments affecting comparability Adjustments affecting comparability MEUR 7-9/2016 7-9/2015 1-9/2016 1-9/2015 1-12/2015 Gross profit 64,7 63,3 184,2 176,8 257,5 Changes in fair value of currency derivatives 0,1 -0,1 0,2 0,8 0,6 Adjusted gross profit 64,8 63,2 184,4 177,6 258,1 Operating expenses
Slide 14: Tokmanni's revenue and profitability are subject to seasonality
Tokmanni’s revenue and profitability are subject to seasonality 30,0 250,0 26,4 25,0 24,4 200,0 20,0 18,1 150,0 17,3 17,5 15,0 15,2 13,5 12,9 100,0 10,0 50,0 5,0 2,0 1,8 2,2 0,0 0,0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/2016 Q3/2016 Revenue Adj. EBITDA 14 26.10.2016 TOKMANNI - Jan
Slide 15: Financial targets and dividend policy
Financial targets and dividend policy Long-term financial targets Historical performance 2013 2014 2015 1. Like-for-Like Tokmanni Group’s long-term target is to achieve low single Low single digit like-for-like net sales growth assuming current market Tokmanni 0.0% (0.3%) (0.6%) digit conditions Mar