Lindex Group Plc Class B · OMXHEX:LINDEX
Lindex Group Plc Class B — Q3 2024 Earnings Presentation
28 slides from Lindex Group Plc Class B's earnings presentation, Oct 25, 2024
Slide 1: Interim Report July–September 2024
Interim Report July–September 2024 Susanne Ehnbåge, CEO Henrik Henriksson, CFO 25 October 2024 1
Slide 2: Agenda
Agenda • Business update • Financial update • Way forward • Q&A 2
Slide 3: Business update
Business update 3
Slide 4: Key messages Q3 2024
Key messages Q3 2024 The fashion market Stockmann division remained volatile in continued its track of Initiatives for future- the Group’s key proofing progressed profitability markets improvement Only one disputed Strategic assessment claim left continuing, in the restructuring expected to be progr
Slide 5: Fashion market development
Fashion market development SWEDEN HUI Industry total 9% Swedbank Pay transaction data 5% 5% 5% 4% 4% 4% 2% 2% 1% 2% 2% 1% 1% 0% 0% 0% -2% -2% -3% -2% -6% -9% • Fashion market continued to be volatile -10% -12% and challenging in Lindex Group’s key markets. -19% SEP -23 OCT-23 NOV-23 DEC-23 JAN-24 F
Slide 6: Q3: Lindex Group's revenue decreased slightly
REVENUE, M€ Q3: Lindex Group’s revenue decreased slightly 250.0 -2.1% 226.9 222.1 • Group’s revenue was impacted mainly by logistical challenges and decrease 200.0 in fashion sales • In Lindex Group’s key markets, the fashion market remained volatile 150.0 • Exceptionally warm weather impacted the G
Slide 7: Q3: Result impacted by lower revenue and increased costs
ADJUSTED OPERATING RESULT, M€ Q3: Result impacted by lower revenue and increased costs -4.8 M€ 25.0 • The Group’s adjusted operating result 20.6 declined due to the lower revenue and 20.0 increased costs in the Lindex division 15.8 15.0 • Gross profit declined slightly due to a decrease in revenue a
Slide 8: Lindex: increased headwinds while future-proofing business
Lindex: increased headwinds while future-proofing business • Profitability weakened by logistical challenges, higher share of promotions and increased costs • Strong digital growth in line with the strategy, presence on marketplaces further expanded • New operating model introduced to secure Lindex’
Slide 9: Stockmann improved despite the challenging market
Stockmann improved despite the challenging market • Profitability improved as a result of successful cost efficiency measures • Overall fashion market clearly declined in the division’s key markets • Operational efficiency enhanced by new automated packing solution for e-com, data-driven staff plann
Slide 10: Guidance 2024
Guidance 2024 (specified on 25 October 2024) In 2024, Lindex Group expects its revenue in local currencies to be in the range of -2% to +0% compared to 2023. The Group’s adjusted operating result is estimated to be EUR 70–80 million. Foreign exchange rate fluctuations may have a significant effect o
Slide 11: Financial update
Financial update 11
Slide 12: Q3: The Lindex division's result impacted by logistical challenges
LINDEX DIVISION REVENUE, M€ Q3: The Lindex division’s result -1.8% impacted by logistical challenges 200.0 162.3 159.3 150.0 • Revenue decreased due to lower stock availability 100.0 caused by logistical challenges in the latter part of 50.0 the quarter Q3 2023 Q3 2024 • In local currencies, revenue
Slide 13: Q3: Overall fashion market declined clearly in Stockmann's key markets
STOCKMANN DIVISION REVENUE, M€ Q3: Overall fashion market -2.8% declined clearly in Stockmann’s 100.0 64.7 62.9 key markets 50.0 • Revenue decline was impacted by the sales decrease in the division’s biggest category, 0.0 fashion Q3 2023 Q3 2024 • Gross margin increased to 45.3% (44.4) STOCKMANN DIV
Slide 14: Q3: Changes in Group revenue and adjusted operating result
Q3: Changes in Group revenue and adjusted operating result CHANGES IN REVENUE, M€ CHANGES IN ADJUSTED OPERATING RESULT, M€ 3 . Logistical Lower .3 . challenges fashion . sales Lower Cost revenue and efficiency increased measures costs Q3 3 Lindex Stockmann Q3 Q3 3 Lindex Stockmann Q3
Slide 15: Q3: Group key figures
Q3: Group key figures REVENUE, M€ ADJUSTED OPERATING RESULT, M€ -2.1% -4.8 M€ 250.0 226.9 222.1 40.0 200.0 30.0 20.6 20.0 15.8 150.0 10.0 100.0 0.0 Q3 2023 Q3 2024 Q3 2023 Q3 2024 . M€ . M€ 58.2% . € (20.3) (8.7) (58.5) (0.05) operating result net result gross margin EPS
Slide 16: 1–9 2024: Changes in Group revenue and adjusted operating result
1–9 2024: Changes in Group revenue and adjusted operating result CHANGES IN REVENUE, M€ CHANGES IN ADJUSTED OPERATING RESULT, M€ -1.6% . . -11.0 M€ .3 . . Fashion 3 Decline in market’s fashion volatility and sales 3 logistical challenges Lower gross Cost profit and efficiency 3 increased measures co
Slide 17: The divisions' profitability levels
The divisions’ profitability levels ADJUSTED OPERATING RESULT ROLLING TWELVE MONTHS, M€ EUR mill. 120 100.0 100 93.3 91.3 90.0 90.0 91.0 90.3 87.3 88.9 80.3 83.5 78.4 80 70.8 62.1 60 47.1 42.9 39.6 40 36.2 33.5 20 0 -1.8 -5.1 -2.5 -2.3 -5.4 -5.1 -5.8 -5.5 -9.9 -7.0 -6.3 -8.7 -20 -12.0 -16.8 -17.8 -4
Slide 18: 1–9 2024: Operating free cash flow and capital expenditure
1–9 2024: Operating free cash flow and capital expenditure OPERATING FREE CASH FLOW, M€* CAPITAL EXPENDITURE (EXCL. IFRS 16 ITEMS), M€ 10.0 2.9 60.0 53.6 0.0 -10.0 40.0 25.2 -20.0 20.0 -30.0 -40.0 0.0 -50.0 -40.5 1-9 2023 1-9 2024 1-9 2023 1-9 2024 • Inventories were EUR 198.6 (193.3) million • CAPE
Slide 19: Changes in cash position
Changes in cash position CHANGES IN CASH POSITION PER ITEM, M€ . M€ (108.0) 3 cash 2024 1–9 3 3 3 3 pening djusted hange Lease aid refund ther adj. urrency nding cash . . IT in payments of taxes diffs. cash 3 . . 3 3 33 2023 1–9 pening djusted hange Lease aid refund ther adj. urrency nding cash . .
Slide 20: Good financial position for future growth
Good financial position for future growth NET DEBT EXCL. IFRS 16 ITEMS, M€ Conversion of unsecured debt to senior secured bonds EUR mill. Divestment of the 200 property in Tallinn 100 119 100 73 36 61 36 66 30 0 11 -7 -100 -234 -313 -274 -325 -278 Divestment of the -200 property in Helsinki -300 -40
Slide 21: Q3 2024 financials summary
Q3 2024 financials summary Revenue decreased Result impacted by Adjusted operating slightly in challenging logistical challenges result improved market environment and increased costs in Q3 and 1-9 2024 21
Slide 22: Way forward
Way forward 22
Slide 23: Lindex: Clear strategy for value creation
Lindex: Clear strategy for value creation Transform to a Decouple cost Accelerate growth sustainable business from growth
Slide 24: Lindex new omnichannel distribution centre enabling future growth
Lindex new omnichannel distribution centre enabling future growth • Extensive testing made in preparation for go-live in Q4 2024 • Planned to be operational on a large scale during 2025 supporting efficiency and growth thanks to a significant capacity increase • One stock operation to enable sales a
Slide 25: Lindex - Important launches for successful growth
Lindex - Important launches for successful growth • Investments driving future growth while focusing on cost efficiency • Continue implementing the digital store program to enhance operational efficiency • Grow in e-commerce and marketplaces as well as through new sales channels • Digitalise our sup
Slide 26: Stockmann: Customer-centric strategy to ensure profitability and future growth
Stockmann: Customer-centric strategy to ensure profitability and future growth Elevate offering: Grow and Optimise Improve Increase focus leverage omnichannel operational on premium and loyal customer performance efficiency luxury base
Slide 27: Stockmann: Strategy execution with focus on profitability and operational efficiency
Stockmann: Strategy execution with focus on profitability and operational efficiency • Customer-centric offering development with focus on premium & luxury, Helsinki flagship and e-com leading the way • Operational and cost efficiency as high priority to improve profitability in volatile market • Di
Slide 28: Q&A Further information
Q&A Further information lindex-group.com investor.relations@stockmann.com 28