Lpp S.a. · GPW:LPP
Lpp — 1Q22/23 Earnings Presentation
30 slides from Lpp's earnings presentation, Jun 15, 2022
Slide 1: 1Q22/23 Results Presentation
1Q22/23 1Q22/23 RESULTS PRESENTATION GDAŃSK, JUNE 15, 2022
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) was prepared by LPP SA (the “Company”) with a due care. Still, it may contain certain inconsistencies or omissions. The Presentation does not contain a complete or thorough financial analysis of the Company and does not present its standing or prospe
Slide 3: Key corporate events
1Q22/23 3 01 1Q22/23 PRESENTATION Key corporate events
Slide 4: Return to business operations in Ukraine
Return to business operations in Ukraine 1Q22/23 4 re-opening of e-store deliveries of new collections in Ukraine in April 2022 resuming operations to traditional stores (limited range, only of stores in western Ukraine from June 2022 prepayments) 1Q22/23 PRESENTATION At the same time, we continue t
Slide 5: Disposal of the Russian subsidiary c. PLN 50m
Growing risk of Russia's 01.22 attack on Ukraine Russia’s invasion on Disposal of 02.22 Ukraine 1Q22/23 03.22 Closing down all stores the Russian subsidiary in Russia 5 Decision to sell The sale agreement includes, among others: 04.22 the Russian’s business • the buyer's inability to use LPP brand n
Slide 6: Presence in countries
Presence in 38 countries 5 31 20 23 1 25 1Q22/23 969 Open as at 18 As at 30.04.2022 No. of stores 13.06.2022 105 159 6 70 21 LPP GROUP 1,760 94% 44 17 41 109 Poland 969 100% 15 38 34 6 Europe 577 100% Other regions 214 49% Number of stores at the end of 1Q22/23 does not include 3 stores in Russia, s
Slide 7: Logistics improvements
Logistics improvements LAUNCH OF BRZEŚĆ KUJAWSKI DISTRIBUTION CENTRE • Storage capacity: 40m pieces of goods 1Q22/23 • Servicing up to 1,000 stores simultaneously • 700 employees 7 • 75 ths m2 of floorspace • Capacity to send up to 8m pieces of clothing and accessories per week • Undergoing BREEAM c
Slide 8: Sinsay online development
Sinsay online development Launch of own Sinsay application - the second brand after Reserved. Sinsay in TOP5 most popular mobile 1Q22/23 applications in Poland. 8 Launch of Sinsay e-commerce in Greece, Italy and Spain on April 19, 2022. 1Q22/23 PRESENTATION Strong sales results: PLN 6.5m in May 2022
Slide 9: Back to formal
Back to formal 1Q22/23 9 After two years of pandemic, we see a noticeable increase in interest in formal clothing (with the return to office and business meetings). Demand favors more formal collections like 1Q22/23 PRESENTATION the ones offered by Reserved and Mohito brands.
Slide 10: 1Q22/23 financial results
1Q22/23 10 02 1Q22/23 PRESENTATION 1Q22/23 financial results
Slide 11: Impact of pandemics on 1Q21/22 and war on 1Q22/23
Impact of pandemics on 1Q21/22 and war on 1Q22/23 2021 2022 Shopping centers open all month. On February 24, Shopping centers open in Poland. Russia's aggression on Ukraine (closing stores February Faster recovery of traffic than the year before. in Ukraine). Negative impact on demand and consumer s
Slide 12: No more restrictions in 1Q22/23
No more restrictions in 1Q22/23 1Q22/23 12 1Q22/23 PRESENTATION
Slide 13: Disposal of the Russian subsidiary has a sizeable impact on financial statements
Disposal of the Russian subsidiary has a sizeable impact on financial statements 1Q21/22 1Q21/22 1Q22/23 (before restatement, full consolidation (after restatement, Russian subsidiary (Russian subsidiary as assets held of the Russian subsidiary) as assets held for sale) for sale) 1Q22/23 Russian sub
Slide 14: Towards omnichannel
Towards omnichannel OFFLINE ONLINE 1Q22/23 1,760 32 stores countries 14 -3.5% 0.0% m2 revenues +51.3% LFLs 25 38 +29.1% countries GROUP COUNTRIES REVENUES 1Q22/23 PRESENTATION Data for 1Q22/23 does not include Russia, the YoY dynamics refer to data for 1Q21/22 before restatement.
Slide 15: Growth in Group revenues despite limited Russian sales
Growth in Group revenues despite limited Russian sales GROUP REVENUES OMNICHANNEL REVENUES (PLN m) 3,913.4 4,122.8 PLN m 1Q21/22 1Q22/23 YoY 3,643.1 before restatement 906.8 1,272.8 3,034.2 LPP GROUP 2,350.3 3,034.2 29.1% 793.2 2,445.7 2,350.3 Reserved 956.4 1,078.1 12.7% 1Q22/23 2,129.3 2,094.4 988
Slide 16: Billion revenues from e-commerce
Billion revenues from e-commerce ONLINE SALES ONLINE BY REGIONS (PLN m) (PLN m, 1Q21/22 before restatement) PLN 988.1m 1,272.8 PLN 988.3m 140.4 10.8 988.3 988.1 906.8 1Q22/23 778.1 793.2 0,0% 548.8 443.3 621.2 16 445.9 384.0 404.6 428.6 1Q21/22 1Q22/23 1Q20/21 2Q20/21 3Q20/21 4Q20/21 1Q21/22 2Q21/22
Slide 17: Foreign revenues similar to domestic ones
Foreign revenues similar to domestic ones REVENUES BY REGIONS IN 1Q22/23 1Q22/23 FLOORSPACE (PLN m, 1Q21/22 before restatement) (by regions, 1Q21/22 before restatement) Poland 1,459 +60% YoY ths m2 1Q21/22 1Q22/23 YoY LPP GROUP 1,511.7 1,458.1 -3.5% 1Q22/23 Europe 1,377 +98% YoY 17 Poland 584.4 687.
Slide 18: Gross margin and inventory impacted by situation in the East
Gross margin and inventory impacted by situation in the East QUARTERLY GROUP GROSS PROFIT MARGIN INVENTORY AND INVENTORY/M2 4,000 2,057 2,529 2,800 60.6% 3,500 2,400 1,702 3,000 56.6% 3,864 2,000 1,614 1,490 1,439 55.4% 2,500 1,455 3663 1Q22/23 1,266 1,223 1,600 58.3% 2,000 2,962 55.5% 2,311 1,200 1
Slide 19: Costs/m2 growth below revenue
Costs/ m2 growth below revenue COSTS OF OWN STORES/ M2 SG&A COSTS/ M2 (IAS17) (IFRS16) +17.4% YoY 400 69% 80% 45% 42% 49% 47% 195 51% 38% 37% 47% 350 70% 160 167 166 166 300 60% 148 150 144 156 56 141 250 50% 1Q22/23 51 55 49 60 57 48 44 338 53 49 47 200 353 40% 38 47 262 245 275 293 292 40 38 49 53
Slide 20: Quarter impacted by war on the East
1Q21/22 1Q21/22 Quarter impacted PLN m, IFRS16 (before (after 1Q22/23 YoY restatement) restatement) by war on the East Revenues 2,350.3 1,815.3 3,034.2 67.1% Gross profit margin 55.5% 54.6% 53.3% -1.3pp. on sales • Double-digit YoY increases in sales despite closing down of stores SG&A costs 1,200.7
Slide 21: Safe indebtedness level
Safe indebtedness level NET DEBT CAPEX (PLN m, IFRS16) (PLN m) 1Q21/22: 3 796.3 1Q21/22: PLN 263m 1Q20/21: PLN 252m 3 269.4 PLN 192m 3 035.1 2 905.6 2 954.2 2 800.1 3 017.4 134.2 114.5 2 440.8 1Q22/23 53.3 1 910.4 94.2 70.0 74.4 21 46.1 33.8 69.8 275.7 263.4 238.9 181.5 191.2 189.0 145.6 145.4 91.8
Slide 22: Executive summary 1Q22/23
Executive summary 1Q22/23 1Q22/23 1 High sales dynamics despite the situation related to the outbreak of the war in Ukraine. 22 2 Rebound in sales in traditional stores. 3 Billion e-commerce revenues. 4 Liabilities exceeding inventory. 5 Disposal of Russian business. 1Q22/23 PRESENTATION
Slide 23: 2022/23 + outlook
1Q22/23 23 03 1Q22/23 PRESENTATION 2022/23 + outlook
Slide 24: 2022/23 targets
2022/23 targets Over PLN 16bn of revenues, +13% YoY. Fall in floorspace to 1,878 ths m2 (assuming no Russia and Ukraine). Targets Emphasis on Sinsay, over 400 new stores this year. 1Q22/23 PLN 5bn online sales. 24 Lower gross profit and operating margin. PLN 1 bn capex (out of which PLN 63
Slide 25: Sources of LPP's growth in upcoming years
3 sources of LPP’s 25 growth in upcoming years : //RESERVED ONLINE //SINSAY STORES //SINSAY ONLINE Network of Sinsay’s LPP’s advantage lies 1Q22/23 PRESENTATION Brand development traditional stores (smaller in a proven online sales on European markets. cities, retail parks, value for model in the va
Slide 26: A dividend paying company
1Q22/23 26 A dividend General Meeting of LPP’s Shareholders held on May 20, 2022 decided on net profit distribution. paying company Dividend date (i.e. the date on which the list of shareholders entitled to dividend is established) was set at May 30, 2022. Our goal is to regularly Dividend payment (
Slide 27: Towards decarbonisation
Towards decarbonisation 1Q22/23 27 In May 2022, LPP was the first Polish clothing company to join the global Science Based Targets initiative supporting the private sector in efforts to combat global warming. Objective: • short-term - creating a decarbonisation strategy whose goals will be verified
Slide 28: Q&A
1Q22/23 PRESENTATION 28 1Q22/23 Q&A 04
Slide 29: Glossary
Poland Retail sales in Poland and other sales of LPP SA. CEE Region including: Czech Republic, Slovakia, Hungary. Baltic Region including: Lithuania, Latvia, Estonia. CIS Region including: Russia (in 1Q22/23 as assets held for sale, sold in 2Q22/23), Ukraine, Belarus and from 2018 also Kazakhstan. S
Slide 30: Contact
discoverlpp company/lpp-sa discoverlpp discoverlpp Contact GDAŃSK HQs CONTACT FOR INVESTORS CONTACT FOR MEDIA WWW.LPPSA.COM Łąkowa 39/44, 80-769 Gdańsk Email: Email: media@lppsa.com Tel. +48 58 76 96 900 LPP.investor.relations@lppsa.com Email: lpp@lppsa.com