Slide 1: Financial Statements 2017
FINANCIAL STATEMENTS 2017 Stockmann Group | 14 February 2018
Slide 2: Highlights in 2017
HIGHLIGHTS IN 2017 Group’s gross margin • Stockmann Group 55.8% – Improved operating results in Stockmann Retail and Real Estate – Lindex performance not satisfying – firm actions initiated to improve sales and gross margin and reduce fixed costs (55.7) – Long-term credit facilities refinanced in th
Slide 3: Strategy focused on core strengths
STRATEGY FOCUSED ON CORE STRENGTHS Targeting a seamless Merchandise omnichannel focus on experience Geographic fashion, beauty focus on & home Increase resources in digitalisation in Brand focus Nordic & Baltic Divestment of Stockmann and Lindex on Stockmann countries Stockmann Delicatessen Expand f
Slide 4: Revenue in 2017
REVENUE IN 2017 MERCHANDISE SALES 2017 REVENUE 2017 BY DIVISION Real Estate Stockmann Food 6% Retail 38% Home 4% 6% Cosmetics 10% Lindex 56% REVENUE 2017 BY MARKET Baltics, Russia and other Finland countries 38% 17% Fashion 80% Sweden and Norway All figures excluding discontinued operations 45% STOC
Slide 5: Stockmann Group, financial performance in Q4 2017
STOCKMANN GROUP, FINANCIAL PERFORMANCE* IN Q4 2017 • Revenue EUR 315.7 million (348.0) QUARTERLY REVENUE – Revenue down 0.2% in comparable businesses EUR mill. – Stockmann Retail +0.4%, Lindex -1.0%, Real Estate +7.0% 400 300 • Gross margin 56.8% (55.8%) 200 – Up in Stockmann Retail but down in Lind
Slide 6: Key figures
KEY FIGURES Q4/2017 Q4/2016 1-12/2017 1–12/2016 Equity ratio % 43.0 48.3 Net gearing % 83.8 68.3 Net financial items* EUR mill. 10.9 2.6 -31.1** -23.1 Result for the period* EUR mill. -12.2 20.9 -198.1 -7.5 Earnings per share* EUR -0.19 0.27 -2.82 -0.18 Net earnings per share, EUR -0.20 0.36 -2.98 -
Slide 7: Market environment and outlook for 2018
MARKET ENVIRONMENT AND OUTLOOK FOR 2018 Market environment • Economic situations in Finland and Sweden are expected to improve with increasing GDP and customer confidence, but fashion market is not estimated to grow as rapidly, due to changing purchasing behaviour. • Retail outlook in the Baltic cou
Slide 8: Lindex
LINDEX
Slide 9: Lindex, highlights in 2017
LINDEX, HIGHLIGHTS IN 2017 • Total sales declined, though growth outside of the Nordic market • Profitability improvement programme launched • Strong increase in sales and visitors in the online store • Awarded Omnichannel of the year in Sweden – Release of Smart shopping app to strengthen the omnic
Slide 10: Lindex, financial performance in Q4 2017
LINDEX, FINANCIAL PERFORMANCE IN Q4 2017 • Revenue down 1.0% to EUR 169.6 million (171.3) QUARTERLY REVENUE – Comparable store sales -1.2% due to decrease in the Nordic countries EUR mill. 200 • Gross margin 61.9% (65.2%) 150 – Improvement from the previous quarters of 2017 – Higher markdowns than i
Slide 11: International expansion
INTERNATIONAL EXPANSION • Store network on 31 December 2017 7 60 – 490 stores in 18 countries, 99 of which 46 franchising stores – 10 stores opened and 2 closed 210 10 in Q4 2017 10 9 • Stores & markets in 2018 2 3 – Focus on optimising store locations 29 – Unprofitable stores will either move 12 to
Slide 12: Lindex way forward
LINDEX WAY FORWARD • Profitability Improvement Programme has started with full speed – Aim to reduce costs and increase the gross margin – Strong focus on sales and profit improvement – New sales programme in all countries to improve customer interaction • Launch of new vision and new visual express
Slide 13: Stockmann Retail
STOCKMANN RETAIL
Slide 14: Stockmann Retail, highlights in 2017
STOCKMANN RETAIL, HIGHLIGHTS IN 2017 • Operating result 2017 improved by EUR 18.5 million – Increased comparable revenue – Improved gross margin – Significantly less costs due to the 2016 efficiency programme • Strategic withdrawal from non-profitable businesses – Delicatessen’s business operations
Slide 15: Stockmann Retail, financial performance in Q4 2017
STOCKMANN RETAIL, FINANCIAL PERFORMANCE* IN Q4 2017 • Revenue EUR 136.2 million (167.1) QUARTERLY REVENUE – Revenue in comparable businesses up 0.4% EUR mill. – Finland down 0.2% in comparable businesses and Baltics up 2.6% 200 • Gross margin 47.3% (45.6 or 43.8 incl. Hobby Hall) 150 – Gross margin
Slide 16: Digital will be in focus in 2018
DIGITAL WILL BE IN FOCUS IN 2018 • E-commerce and reinforcing the omnichannel approach at the core • Online is Stockmann’s fastest growing sales channel – Revenue growth by over 15% in 2017 • Increasing investments in omnichannel to strengthen competitiveness – Increased resources in selected digita
Slide 17: Real Estate
REAL ESTATE
Slide 18: Real Estate, highlights in 2017
REAL ESTATE, HIGHLIGHTS IN 2017 • Fair value of properties increased by EUR 23 million in 2017 • Increased revenue and operating profit – Stable performance – Higher rental income particularly from Nevsky Centre – Fair value gain on the investment properties of EUR 4.0 million • Continuosly refurbis
Slide 19: Real Estate, financial performance in Q4 2017
REAL ESTATE, FINANCIAL PERFORMANCE IN Q4 2017 • Occupancy rate of own properties 99.7% (99.1%) QUARTERLY REVENUE • Net operating income from own properties EUR 12.2 million (11.1) EUR mill. 20 – Average monthly rent EUR 37.05 per sqm (32.86) 15 – Net rental yield in January–December 5.4% (4.9%) 10 •
Slide 20: Real Estate, Stockmann-owned properties
REAL ESTATE, STOCKMANN-OWNED PROPERTIES Key figures 1.1.2018 Fair value of properties 1.1.2018, EUR million Gross leasable area (GLA) 142 000 sqm, of which 42% in Finland Helsinki flagship building Book House, Helsinki 973.0 (1.1.2017: 950.1) Occupancy rate Occupancy rate 99.8 Occupancy rate 100.0 9
Slide 21: Helsinki flagship: no 1 living room in city centre
HELSINKI FLAGSHIP: NO 1 LIVING ROOM IN CITY CENTRE Best brand selection in town by Stockmann and partners Offering includes a broad range of shops, pop ups, cafés, restaurants, beauty and health services etc. Approx. 12 million visitors in 2017 Sales over EUR 300 million in 2017 Three new restaurant
Slide 22: Q&A
Q&A STOCKMANN 14.2.2018 22
Slide 23: Further information
FURTHER INFORMATION STOCKMANNGROUP.COM INVESTOR.RELATIONS@STOCKMANN.COM Annual Reviews, including Financial Statements to be published in the week starting 26 February 2018