Tokmanni Group Oyj · OMXHEX:TOKMAN
Tokmanni Group Oyj — Danske Copenhagen Winter Seminar (December 2020)
21 slides from Tokmanni Group Oyj's conference presentation, Dec 1, 2020
Slide 1: Finland's Leading General Discount Retailer
Finland’s Leading General Discount Retailer Tokmanni Investor Presentation Mika Rautiainen, CEO Markku Pirskanen, CFO 1 December 2020
Slide 2: Tokmanni is no. 1 general discount retailer in Finland
Tokmanni is no. 1 general discount retailer in Finland >1 million Length 1 157 km or 719 miles customer visits 192 stores in Finland per week 944 MEUR 3,900 revenue 2019 employees Width 542 km or 337 miles 2 1.12.2020 Tokmanni IR Presentation 2020
Slide 3: Current financial status 1-9/2020
Current financial status 1-9/2020 LFL revenue Comparable Revenue +11.8% gross margin +13.2% LFL customer visits +2.8% 33.7% (34.1%) Comparable Cash flow from EPS EBIT margin operating activities EUR 0.63 (0.41) 7.4% (5.8%) MEUR 61.5 (27.5) 3 1.12.2020 Tokmanni IR Presentation 2020
Slide 4: Like-for-like customer visits in stores
Like-for-like customer visits in stores 3,0 % 2,8 % 2,3 % 0,2 % -0,1 % -1,0 % -1,4 % 2014 2015 2016 2017 2018 2019 1-9/2020 4 1.12.2020 Tokmanni IR Presentation 2020
Slide 5: Like-for-like average basket
Like-for-like average basket 8,7 % 2,5 % 1,9 % 0,4 % 0,0 % -0,2 % -0,4 % 2014 2015 2016 2017 2018 2019 1-9/2020 5 1.12.2020 Tokmanni IR Presentation 2020
Slide 6: Tokmanni's and non-grocery market development
Tokmanni’s and non-grocery market development, % Sales development, % 20,0 19,2 16,0 12,0 10,2 13,1 11,0 8,0 10,9 9,9 7,8 8,0 8,3 5,8 7,6 4,0 6,1 4,5 4,4 3,6 3,9 4,0 0,0 1,9 1,4 1,6 0,6 1,1 -0,1 -4,0 -1,1 -1,9 -2,9 -8,0 -7,4 -7,0 -9,0 -12,0 -11,0 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19
Slide 7: Key figures
Key figures
Slide 8: Tokmanni's revenue development
Tokmanni’s revenue development 944 870 797 776 755 747 732 711 690 654 660 634 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1-9/2019 1-9/2020 8 1.12.2020 Tokmanni IR Presentation 2020
Slide 9: Comparable gross profit
Comparable gross profit • Comparable gross profit developed well in 2019, 251,4 comparable gross margin was 34.4% (33.9%) 225,1 • In 2020 there have been some challenges due to COVID-19 • Factors affecting gross margin-% – Apparel discount sales – Good sales of yard and garden furniture, and sports
Slide 10: 1-9/2020: Comparable EBIT development
1-9/2020: Comparable EBIT development Revenue, Comparable M€ EBIT, M€ 800,0 746,7 80,0 659,5 700,0 70,0 602,0 600,0 60,0 500,0 54,9 50,0 400,0 38,4 40,0 300,0 30,0 26,6 200,0 20,0 100,0 10,0 0,0 0,0 1-9/2018 1-9/2019 1-9/2020 Revenue Comparable EBIT 10 1.12.2020 Tokmanni IR Presentation 2020
Slide 11: Strategic target of comparable EBIT margin
Strategic target of comparable EBIT margin 9,0 % Key actions taken 0,5-1,5 % 7,5 % 0,5 -1,0 % Increasing gross margin 0,5 % • Direct import and private labels 1,0 % 6,0 % • Batch sales • Shrinkage and inventory Improving efficiency • Cost control • Supply chain • Real estate rentals and maintenance
Slide 12: Solid dividend track-record
Solid dividend track-record • Dividend policy: Tokmanni’s aim is to distribute around 70% of net income for each financial year in dividends, depending on the capital structure, financial position, general economic and business conditions and future prospects. 0,62 0,51 0,50 0,41 2016 2017 2018 2019
Slide 13: Towards 2021
Towards 2021 13 Tokmanni 1.12.2020 IR Presentation 2020
Slide 14: Smart shoppers are overemphasized in Tokmanni's customers
Smart shoppers are overemphasized and price insensitive underemphasized in Tokmanni’s customers Whole population Tokmanni’s customers 57% 45% 33% 31% 18% 9% 4% 3% Smart shoppers Sale and discount addicts Price insensitives Price comparers Note: Tokmanni’s customers = Customers that frequently visit
Slide 15: Tokmanni's customer base, family households slightly overemphasized
Tokmanni’s customer base, family households being slightly overemphasized Whole population Tokmanni’s customers 43% 40% 17% 17% 16% 16% 13% 12% 7% 7% 5% 6% Family households Adult households Pensioners Adult singles Young singles Young couples Note: Tokmanni’s customers = Customers that frequently v
Slide 16: Tokmanni's competitive advantages
Tokmanni’s competitive advantages • Low prices • Interesting and wide product selection • Service-minded and motivated employees • Nationwide store network combined with online store • Efficient and agile business model 16 1.12.2020 Tokmanni IR Presentation 2020
Slide 17: We are building destination categories
We are building destination categories We will significantly increase the sales of Home decoration private labels and kitchen Health, Home beauty improve- and well- ment being No. 1 in customer minds, customer reach or sales Cleaning and Clothing storage Garden 17 1.12.2020 Tokmanni IR Presentation
Slide 18: Tokmanni's strategic actions
Tokmanni’s strategic actions € Sources of growth Sources of profitability Sources of success • Destination categories • Private labels • Employees • Online store • Sourcing • Customers • Store network • Supply chain and • Sustainability inventories 18 1.12.2020 Tokmanni IR Presentation 2020
Slide 19: Tokmanni's online business
Tokmanni’s online business • Price level competitive with Amazon • Reliable service and support for Finnish customers • Nationwide store network in Finland • The main focus on expanding the product range and improving customer service 19 1.12.2020 Tokmanni IR Presentation 2020
Slide 20: Tokmanni's long-term financial targets
Tokmanni’s long-term financial targets Stable and profitable long-term growth Like-for-Like revenue growth Low single digit growth Target of over 200 stores Stores New about 5 p.a. 12 000 sqm annually Comparable EBIT margin Gradually increase to ~9% Net Debt / Comparable EBITDA In long-term below 3.
Slide 21: Thank you!
Thank you! ir@tokmanni.fi tokmanni.fi
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