Lindex Group Plc Class B · OMXHEX:LINDEX
Lindex Group Plc Class B — Q1 2024 Earnings Presentation
27 slides from Lindex Group Plc Class B's earnings presentation, April 2024
Slide 1: Interim Report for January-March 2024
Interim Report for January-March 2024 1
Slide 2: Agenda
Agenda • Business update • Financial development • Way forward • Q&A 2
Slide 3: Business update
Business update 3
Slide 4: Highlights Q1 2024
Highlights Q1 2024 Underlying revenue Parent company’s Good progress in growth, but the result name change from the restructuring was impacted by Stockmann plc to process: only one the timing of Crazy Lindex Group plc disputed claim left Days and freight costs 4
Slide 5: Group's underlying revenue developed positively – negative impact of Crazy Days' timing
Group’s underlying revenue REVENUE, M€ developed positively – negative impact of 250 -2.8% the Crazy Days’ timing • Lindex division outperformed the market* 198.5 192.8 200 • Lindex’s sales increased across all main markets in physical stores and digital channels 150 • Stockmann division’s revenue d
Slide 6: The Crazy Days timing and freight costs declined the Group result
ADJUSTED OPERATING RESULT, M€ The Crazy Days timing and freight costs declined the Group result -4.1 M€ • Lindex division’s profitability was negatively 0 affected by higher freight costs due to unexpected logistic challenges in -2 the Red Sea -2.4 • Stockmann division’s adjusted operating -4 result
Slide 7: Lindex continued to outperform the market
Lindex continued to outperform the market • Sales growth in both physical stores and digital channels with womenswear as the best performing category • Strong digital growth of 8.9% and increased digital share 22.9% (21.6) • Continued to expand market presence with partnerships • Good progress in on
Slide 8: Stockmann improved operational efficiency
Stockmann improved operational efficiency • Successful cost savings continued: comparable operating costs -1.6 M€ • Improved gross margin due to good inventory management • Further enhancing efficiency and simplifying structures, targeted annual savings of 2.7 M€ from 2025 onwards • Change negotiati
Slide 9: Accelerating climate actions while growing profitably
Accelerating climate actions while growing profitably -11% -41% -11% Total greenhouse gas Total greenhouse gas Less electricity in own emissions in 2023 emissions since 2017 operations in 2023
Slide 10: Guidance 2024
Unchanged Guidance 2024 In 2024, Lindex Group expects its revenue to increase by 1-3% in local currencies compared to 2023. The Group’s adjusted operating result is estimated to be EUR 70-90 million. Foreign exchange rate fluctuations may have a significant effect on the adjusted operating result. 1
Slide 11: Financial update
Financial update 11
Slide 12: Lindex's revenue growth outperformed the market
THE LINDEX DIVISION REVENUE, M€ Lindex’s revenue growth +3.3% outperformed the market 150 126.5 130.6 • Increased sales across all main markets 100 through both physical stores and digital 50 channels Q1 2023 Q1 2024 • Higher freight costs due to unexpected logistic challenges in the Red Sea and neg
Slide 13: Timing of Crazy Days affected Stockmann's performance
THE STOCKMANN DIVISION REVENUE, M€ Timing of Crazy Days affected 100.0 -13.6% Stockmann’s performance 72.0 62.2 50.0 • Timing of the Crazy Days campaign and reduced 0.0 store area of the Stockmann Itis department store Q1 2023 Q1 2024 decreased revenue THE STOCKMANN DIVISION • Gross margin increased
Slide 14: Changes in Group revenue and adjusted operating result
Changes in Group revenue and adjusted operating result CHANGES IN REVENUE, M€ CHANGES IN ADJUSTED OPERATING RESULT, M€ 0 220 4.2 -1 200 198.5 192.8 -9.8 -2 Due to the timing 180 of Crazy Days -2.4 -3 160 Mainly due to the -4 timing of Crazy Days -1.4 140 -5 120 -6 -2.4 100 -7 -0.3 -6.5 Q1 2023 Linde
Slide 15: Group key figures
Group key figures REVENUE, M€ ADJUSTED OPERATING RESULT, M€ -2.8% -4.1 M€ 250 0 198.5 192.8 200 -5 -2.4 150 -6.5 100 -10 Q1 2023 Q1 2024 Q1 2023 Q1 2024 -7.6 M€ -15.4 M€ 56.3% -0.10 € (-2.9) (19.5) (56.4) (0.13) operating result net result gross margin EPS
Slide 16: 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 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 -9.9 -7.0 -6.3 -8.7 -20 -12.0 -16.8 -17.8 -40 -33.7 -38.7 -60 -4
Slide 17: Operating free cash flow and capital expenditure
OPERATING FREE CASH FLOW, M€ Operating free cash flow 50 and capital expenditure 0 • Q1 cash flow is typically low due to higher -50 -40.5 -39.2 net working capital than at the beginning of Q1 2023 Q1 2024 the year • Investments in digitalisation projects and omnichannel development in both division
Slide 18: Changes in cash position
Changes in cash position By the end of Q1/2024, CHANGES IN CASH POSITION PER ITEM, M€ 83 M€ of the total omnichannel distribution centre investment 180 of 110 M€ has been paid 160 19 140 138 -25 120 100 -28 -07 84 -07 -03 80 -04 60 40 20 00 Opening Adjusted Change Lease CAPEX Paid/refund Other adj.
Slide 19: 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 0 11 -100 -234 -313 -274 -325 -278 Divestment of the -200 property in Helsinki -300 -400 Dive
Slide 20: Financial highlights Q1 2024
Financial highlights Q1 2024 Improved Revenue growth above Improved gross equity ratio market development margin and continued cost savings 20
Slide 21: Way forward
Way forward 21
Slide 22: Clear strategy for value creation
Clear strategy for value creation Transform to a Decouple cost Accelerate growth sustainable business from growth
Slide 23: Lindex – important launches supporting continued growth
Lindex – important launches supporting continued growth • New omnichannel distribution centre into operation during the autumn • Continue building a strong foundation for efficiency, flexibility and innovation • Digital store programme: new POS, Mobile first and refill by RFID in all stores • Digita
Slide 24: Customer-centric strategy to ensure profitability and future growth
Customer-centric strategy to ensure profitability and future growth Grow and leverage Ensure seamless Elevate offering loyal customer base omnichannel experience + Improve further operational efficiency + Expand revenue horizons
Slide 25: Stockmann – customer-centric commercial measures to improve profitability
Stockmann – customer-centric commercial measures to improve profitability • The number of active loyal customers is on a growth track • Enhancing personalisation in marketing communications • Elevating the unique omnichannel offering by adding luxury and premium brands • Exploring new revenue stream
Slide 26: Q&A Further information
Q&A Further information lindex-group.com investor.relations@stockmann.com 26
Slide 27: Next financial reports
Next financial reports Half Year Financial Report for January–June 19 July 2024 Interim Report for January–September 25 October 2024 27