Marimekko Oyj · OMXHEX:MEKKO
Marimekko Oyj — FY2019 Earnings Presentation
35 slides from Marimekko Oyj's earnings presentation, Feb 13, 2020
Slide 1: Financial Statements 2019
Financial Statements 2019 TIINA ALAHUHTA-KASKO, 13 FEBRUARY 2020 13 February 2020 1 © Marimekko
Slide 2: A strong year 2019
A STRONG YEAR 2019 Net sales +12%, comparable operating profit +40% + Net sales rose by 12% with growth in all market areas. + Retail sales in Finland, wholesale sales and licensing income in the Asia-Pacific region as well as wholesale sales in EMEA especially contributed to growth. + Sales in Finl
Slide 3: Q4/2019: Net sales +17%, comparable operating profit +87%
Q4/2019 Net sales +17%, comparable operating profit +87% + Net sales up by 17%, growth primarily from retail and wholesale sales in Finland as well as increased wholesale sales and licensing income in the Asia-Pacific region. Wholesale sales growth in the Asia-Pacific due to part of the region’s Q4
Slide 4: Key figures 2019: Solid financial development
KEY FIGURES 2019 Solid financial development EUR million 10–12/2019 10–12/2018 Change, % 1–12/2019 1–12/2018 Change, % Net sales 34.7 29.7 17 125.4 111.9 12 International sales 12.8 11.4 12 54.3 48.3 12 % of net sales 37 38 43 43 Comparable EBITDA * 6.2 2.2 186 29.7 14.7 102 Operating profit 3.0 1.2
Slide 5: Net sales and operating profit
FINANCIAL STATEMENTS 2019 Net sales and operating profit 13 February 2020 5 © Marimekko
Slide 6: Q4/2019 Net sales +17% to EUR 34.7 million
Q4/2019 Net sales +17% to EUR 34.7 million (29.7) • retail sales +16% Quarterly net sales, EUR million • wholesale sales +15% 40 EUR million Q4 Q4 Change 34.5 34.7 International sales +12% 2019 2018 % • retail sales +6% 29.1 30 27.1 Finland 21.9 18.3 20 • wholesale sales +10% 29.8 29.7 28.2 • licens
Slide 7: Full year net sales +12% to EUR 125.4 million
FULL YEAR 2019 Net sales +12% to EUR 125.4 million (111.9) • retail sales +13% Cumulative net sales, EUR million • wholesale sales +8% 140 EUR million FY FY Change 125.4 International sales +12% 2019 2018 % 120 • retail sales +7% 100 90.7 111.9 Finland 71.2 63.5 12 • wholesale sales +11% • licensing
Slide 8: Sales increased in all market areas, strongest growth in fashion and bags
NET SALES 2019: EUR 125.4 MILLION (111.9) Sales increased in all market areas, with strongest growth in sales of fashion and bags & accessories Net sales by market area, 2019 (2018) Net sales by product line, 2019 (2018) 20% (19) 25% (24*) 37% (35) 7% (7) 57% (57) 10% (9) 7% (8) 38% (41*) Finland Sc
Slide 9: Global footprint: number of stores
Global footprint 56% OF MARIMEKKO STORES AND SHOP-IN-SHOPS LOCATED OUTSIDE HOME MARKET FINLAND AROUND 150 STORES IN 15 COUNTRIES, E-COMMERCE REACHING CUSTOMERS IN 32 COUNTRIES Global retail footprint 2019 Net sales by channel, e-commerce included 140 200 120 180 100 161 160 Number of stores 159 67 1
Slide 10: Marimekko stores at the end of 2019
151 Marimekko stores* at the end of 2019 180 160 140 120 100 80 60 40 20 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Asia-Pacific 21 22 27 37 46 52 60 65 70 67 North America 5 11 16 23 23 24 23 16 6 ** 6 EMEA 4 5 5 4 3 4 3 2 1 2 Scandinavia 8 10 12 13 10 11 10 12 11 10 Finland 46 42 48 56 62
Slide 11: Marimekko brand sales +1% to EUR 250.8 million
FULL YEAR 2019 Marimekko brand sales +1% to EUR 250.8 million (248.4) IN Q4, 61% OF BRAND SALES FROM OUTSIDE HOME MARKET (55) Brand sales by market area, 2019 (2018) 300 100 EUR million FY FY Change 251 2019 2018 % 250 248 80 Finland 94.1 81.2 16 199 193 International sales, % 200 177 Scandinavia 12
Slide 12: Q4 comparable operating profit improved significantly
Q4/2019 Comparable operating profit for Q4 improved significantly, boosted by sales growth Comparable operating profit 9 23 25 • Operating profit EUR 3.0 million (1.2), +144% 8 21 7.8 20 7 • Comparable operating profit EUR 3.0 million (1.6), +87% 6 EUR million 13 15 5 11 % 4 10 9 + Growth in net sal
Slide 13: Comparable operating profit for 2019 improved
FULL YEAR 2019 Comparable operating profit for 2019 improved due to sales growth and higher relative sales margin Comparable operating profit 18 18 • Comparable operating profit EUR 17.1 million (12.2), +40% 16 16 16 • Operating profit EUR 17.1 million (17.7), -3% 14 14 13 14 • Operating profit for
Slide 14: Key events in 2019
Key events in 2019 13 February 2020 14 © Marimekko
Slide 15: Key events in 2019
Key events in 2019 • Limited-edition collaboration collection with the Japanese global apparel retailer Uniqlo to build international brand awareness • Launch of Marimekko Kioski, a unisex streetwear collection • New leather bag line • Partial reissue of 2016 limited-edition Marimekko for Target col
Slide 16: New limited-edition collaboration collection with Uniqlo
New limited-edition collaboration collection with Uniqlo • As continuation to the success of the first collaboration collection designed jointly by the two companies in spring 2018, a new limited-edition collection for fall/winter 2019 featuring Marimekko’s bold prints and colours was launched. • Th
Slide 17: Marimekko Kioski – a unisex streetwear collection
Marimekko Kioski – a unisex streetwear collection • Marimekko Kioski features some of our most iconic prints on unisex streetwear which currently enjoys growing popularity in the fashion world. • Pre-launch at Dover Street Market in Ginza, Tokyo, with many of the items selling out in just hours. • T
Slide 18: New leather bag line
New leather bag line • New leather bag collection launched in August, inspired by the timeless design language of our classic bag styles. • The new range enables us to offer even more complete looks and outfits from our collections to our customers, expressing the Marimekko style to the fullest. • T
Slide 19: Marimekko prints part of Target's Anniversary Collection
Marimekko’s bold prints part of Target’s 20 Years of Design for All Anniversary Collection • Marimekko was featured as one of the 20 brand collaboration partners in the US retailer Target’s Anniversary Collection celebrating 20 years of designer partnerships. • The original 2016 limited-edition Mari
Slide 20: Personnel share issue in Finland
Personnel share issue in Finland • In March, a maximum of 150,000 new shares were offered for subscription to the personnel and to designers employed by the company on a freelance basis. • Half of those entitled to subscribe took part in the share issue. The terms were favourable. • A large proporti
Slide 21: Piloting a shoppable Marimekko home in Milan
Piloting a shoppable Marimekko home in Milan • Marimekko wants to challenge traditional forms of retail by combining physical and digital worlds into one inspiring and effortless customer experience. • During Milan Design Week in early April 2019, a new service concept was piloted by bringing a digi
Slide 22: Outlook for 2020
Outlook for 2020 13 February 2020 22 © Marimekko
Slide 23: Market outlook for 2020
Market outlook for 2020 Finland Also • Finland represents about half of the company’s net sales. • Marimekko has taken due action to control cases of grey exports, which will • Sales in Finland are expected to grow on the previous year. have a clear weakening impact on the company’s sales and earnin
Slide 24: Key drivers for growth in 2020
Key drivers for growth in 2020 • The key drivers of the company's growth are e-commerce, increasing the sales per square metre of existing stores in all markets and partner-led retail in Asia. • Nonrecurring promotional deliveries also have a significant impact on the company’s growth. • The aim is
Slide 25: Seasonality in 2020
Seasonality in 2020 Because of the seasonal nature of Marimekko’s business, the major portion of the company’s net sales and earnings are traditionally generated during the last two quarters of the year, and this is expected to be the case in 2020 as well, to a particularly large extent especially f
Slide 26: Financial guidance for 2020
Financial guidance for 2020 The Marimekko Group’s net sales for 2020 are forecasted to be higher than in the previous year. Comparable operating profit is estimated to be approximately at the same level as or higher than the year before. styjstyjs 26
Slide 27: Proposal for the 2019 dividend
STEADY DIVIDEND POLICY Proposal for the 2019 dividend On 31 December 2019, the parent company’s distributable Target: to distribute at least 50% of funds amounted to EUR 30,513,318.98; profit for the earnings per share annually 2 financial year was EUR 14,830,616.17. 1,8 1,6 The Board of Directors w
Slide 28: Appendices
Appendices 13 February 2020 28 © Marimekko
Slide 29: Income statement
FINANCIAL STATEMENTS 2019 Income statement EUR million 10–12/2019 10–12/2018 1–12/2019 1–12/2018 Net sales 34.7 29.7 125.4 111.9 Other operating income 0.1 0.2 0.6 6.5 Change in inventories of finished goods and work in progress -1.0 -0.3 0.4 1.2 Raw materials and consumables -12.6 -11.0 -45.4 -42.1
Slide 30: Balance sheet
FINANCIAL STATEMENTS 2019 Balance sheet EUR million 31.12. 31.12. EUR million 31.12. 31.12. 2019 2018 2019 2018 Non-current assets 41.6 4.9 Equity 38.9 40.0 Inventories 22.6 22.1 Financial liabilities 26.0 0.2 Other current assets 6.6 6.9 Other non-current liabilities 1.6 0.4 Cash and cash equivalen
Slide 31: Cash flow statement
FINANCIAL STATEMENTS 2019 Cash flow statement EUR million 1–12/2019 1–12/2018 Cash flow from operating activities before change in working capital 29.7 14.1 Change in working capital 2.9 1.5 Cash flow from operating activities before financial items and taxes 32.5 15.7 Financial items and taxes -3.6
Slide 32: Share price trend 2019
Share price trend 2019 13 February 2020 32 © Marimekko
Slide 33: Largest shareholders
Largest shareholders AS AT 31 DECEMBER 2019 Quoted on Nasdaq Helsinki Ownership structure by sector, % Shareholder No. of shares % Consumer goods and votes 12% PowerBank Ventures Ltd 1,017,700 12.52 - 1999, I list (Mika Ihamuotila) - 2002, main list 12% Moomin Characters Oy Ltd 453,740 5.58 Market c
Slide 34: For more information
For more information Tiina Alahuhta-Kasko, President and CEO Phone +358 9 758 71 tiina.alahuhta-kasko@marimekko.com Elina Anckar, CFO Phone +358 9 758 7261 elina.anckar@marimekko.com Anna Tuominen, Communications Director Phone +358 40 584 6944 anna.tuominen@marimekko.com 13 February 2020 34
Slide 35: marimekko.com
marimekko.com company.marimekko.com facebook.com/marimekkodesignhouse instagram.com/marimekko twitter.com/marimekkoglobal pinterest.com/marimekkodesign youtube.com/marimekkovideo 13 February 2020 35 © Marimekko