Lindex Group Plc Class B · OMXHEX:LINDEX
Lindex Group Plc Class B — Stockmann Group — Investor Day (September 2011)
12 slides from Lindex Group Plc Class B's investor day presentation, Sep 7, 2011
Slide 1: Doing business in Russia
Doing business in Russia Lauri Veijalainen Development Director for International Operations
Slide 2: General situation in Russia
General situation in Russia • GDP estimates: +4.0% in 2011; +3.5% in 2012 • Inflation estimates for 2011: opinions vary between 8.0%– 9.5% • RUB currently slightly weaker than anticipated vs. EUR • Oil price well-above 100 USD/barrel • Two important elections approaching: ‒ Duma elections in Decembe
Slide 3: Stockmann Group in Russia today: Department stores, Seppälä, Lindex, and Bestseller
Stockmann Group in Russia today: Department stores, Seppälä, Lindex, and Bestseller Department Stores Moscow 5 St Petersburg 1 Ekaterinburg 1 Seppälä 46 Ekaterinburg Lindex 15 Yaroslavl Department store, St Petersburg Seppälä, Seppälä, Lindex Shopping centre, department store, Bestseller 20 Seppälä,
Slide 4: The Group's operating model in Russia
The Group’s operating model in Russia • 90 locations and stores from St Petersburg to Novosibirsk, 3 time zones • 4 130 employees • Support functions, finance, IT and legal are centralised to Moscow for all Russian operations • 2 legal entities: ‒ ZAO Stockmann: Department store operations, fashion
Slide 5: Stockmann's experiences and reflections
Stockmann’s experiences and reflections CMD 7.9.2011 5
Slide 6: Background and initial reflections
Background and initial reflections • An extremely wide topic • A big difference between theory and reality, see e.g. www.doingbusiness.org • Has Russia moved forward during the past 10 years to be a more attractive place to invest in? • Legal environment has somewhat improved, tax legislation is mor
Slide 7: Moscow vs. the regions
Moscow vs. the regions Russia retail stock (sqm / 1 000 inhabitants) Annual volume of consumer spending for goods (per inhabitant) Moscow Russia (average) Great Britain Moscow Germany Source: CW Research CMD 7.9.2011 7
Slide 8: Evolution of the Moscow retail market
Evolution of the Moscow retail market New construction and rental rates Vacancy rate in shopping centres 2004–2011 Q4 2009–Q1 2011 $3,000 1000 4% $2,400 800 3% $1,800 600 '000 sq m 2% $1,200 400 1% $600 200 0% $0 0 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 2004 2005 2006 2007 2008 2009 2010 20
Slide 9: Some more reflections
Some more reflections • Inflation, CPI and generally the cost development are a challenge • Overheated HR market, salary development and staff rotation – fight for the best people is again escalating • Administrative burden and back office resources bigger than in other countries • Competition is ge
Slide 10: Retailer expansion
Retailer expansion Partner Retailers Direct Retailers Strong and continued interest in both Partner and Direct market entry CMD 7.9.2011 10
Slide 11: Moscow shopping centres under construction
Moscow shopping centres under construction 6 Moscow project pipeline 9 Name Expected year GLA, sq m 4 1 Outlet Village at Belaya Dacha 2011 38,000 2 River Mall 2011 85,000 3 Otrada 2011 70,000 3 5 4 Parus 2011 17,150 5 Kaleidoskop 2011-2012 35,000 6 Fashion House Outlet Centre 2012 26,765 7 Favorit
Slide 12: Observations – what has changed since 1998
Observations – what has changed since 1998 • Authorities are more approachable and sensible. It is more efficient and easier to discuss issues with them than 13 years ago • Authorities and administrations are more competent and reasonable, having a more constructive attitude with a possibility for a