Tokmanni Group Oyj · OMXHEX:TOKMAN
Tokmanni Group Oyj — Non-Deal Roadshow (March 2019)
23 slides from Tokmanni Group Oyj's roadshow presentation, Mar 6, 2019
Slide 1: Roadshow London
Roadshow London 6 March 2019 1 6.3.2019 Tokmanni Roadshow London
Slide 2: Tokmanni today
Tokmanni today #1 1 million 188 870 MEUR 3,600 General Customer visits Stores in Revenue 2018 Employees discount retailer per week Finland in Finland +9,3% growth 2 6.3.2019 Tokmanni Roadshow London
Slide 3: 2018 - year of a positive turnaround
2018 - year of a positive turnaround • Strengthening Tokmanni strategy • Renewing management and organization • Improving customer confidence • All Tokmanni's employees involved in building customer confidence • Implementing a strong investment plan in store network, online business and store concep
Slide 4: Tokmanni's customer base, family households slightly overemphasized
Tokmanni’s customer base, family households being slightly overemphasized Whole population Tokmanni’s customers 43% 40% 17% 17% 16% 16% 13% 12% 7% 7% 5% 6% Family households Adult households Pensioners Adult singles Young singles Young couples 4 6.3.2019 Tokmanni Roadshow London Note: Tokmanni’s cus
Slide 5: Smart shoppers overemphasized and price insensitives underemphasized in Tokmanni's customers
Smart shoppers are overemphasized and price insensitives underemphasized in Tokmanni’s customers Whole population Tokmanni’s customers Smart shoppers 57% Compares always prices and buys the biggest part on discount or on sale Sale and discount addicts 45% Buys the biggest part on discount or on sale
Slide 6: Improving Tokmanni's customer confidence
Improving Tokmanni’s customer confidence • Unbeatable prices in destination categories and products • Wider assortment in destination categories • Renewing store concept in destination categories • Stronger marketing • Quarterly incentive program for the whole Tokmanni personnel 14 6 6.3.2019 Tokman
Slide 7: Tokmanni's like-for-like customer visits development
Tokmanni’s like-for-like customer visits development 3.0% 0.2% -0.1% -0.4% -1.0% -1.4% 2013 2014 2015 2016 2017 2018 7 6.3.2019 Tokmanni Roadshow London
Slide 8: Revenue development
Revenue development Revenue development Like-for-like revenue development 9.3% 5.6% 3.0% 3.0% 2.9% 2.7% 2.7% 0.0% -0.3% -0.1% -0.6% -1.3% 2013 2014 2015 2016 2017 2018 8 6.3.2019 Tokmanni Roadshow London
Slide 9: Tokmanni has a unique market position
Tokmanni has a unique market position Tokmanni’s distinctive positioning… …has 3 competitive advantages Better price image Value vs. hypermarkets Lidl Kärkkäinen Motonet Puuilo Gigantti Halpa-Halli Hong Kong Broader assortment width Price image Ikea Prisma City- market vs. specialty retailers H&M Cl
Slide 10: Tokmanni's and non-grocery market development
Tokmanni’s and non-grocery market development Sales development, % 12,0 10,9 11,0 8,0 7,8 8,0 4,5 4,0 4,4 1,9 0,0 1,1 1,4 1,6 -1,1 -4,0 -1,9 -2,9 -8,0 -7,4 -9,0 -12,0 -11,0 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Tokmanni Non-grocery market Source: FGTA FGTA STATISTICS DOESN’T INCLUDE ONLINE
Slide 11: Revenue development
Revenue development +9.3% +2.7% 900 800 870,4 700 775,8 796,5 600 500 +4.4% +8.0% 400 300 200 238,1 248,5 268,4 100 0 Q4/16 Q4/17 Q4/18 2016 2017 2018 Like-for-like revenue development, % Q4/16 Q4/17 Q4/18 2016 2017 2018 +0.8 -1.0 +4.7 -0.1 -1.3 +5.6 11 6.3.2019 Tokmanni Roadshow London
Slide 12: Comparable gross profit
Comparable gross profit +0.1% +10.1% 350 300 295,0 250 267,9 268,1 200 +3.1% +7.2% 150 100 83,5 86,1 92,3 50 0 Q4/16 Q4/17 Q4/18 2016 2017 2018 Comparable gross margin, % Q4/16 Q4/17 Q4/18 2016 2017 2018 35.1 34.6 34.4 34.5 33.7 33.9 12 6.3.2019 Tokmanni Roadshow London
Slide 13: Development of Private Labels and direct imports
Development of Private Labels and direct imports Brand category sales mix Import share of sales, % Private label and other Import through Shanghai 32% (32%) Other direct import 9,3 10,3 11,1 9,6 Branded products 68% (68%) 12,5 13,6 14,1 10,8 2015 2016 2017 2018 2015 2016 2017 2018 13 6.3.2019 Tokman
Slide 14: Comparable operating expenses
Comparable operating expenses +8.6% +4.1% 250 235,7 200 208,5 217,0 150 +2.6% +11.1% 100 50 57,2 58,7 65,2 0 Q4/16 Q4/17 Q4/18 2016 2017 2018 Comparable operating expenses, % Q4/16 Q4/17 Q4/18 2016 2017 2018 24.0 23.6 24.3 26.9 27.2 27.1 14 6.3.2019 Tokmanni Roadshow London
Slide 15: Comparable EBIT
Comparable EBIT -14.9% +19.7% 60,0 50,0 47,7 48,6 40,0 -2.6% +6.1% 40,6 30,0 20,0 23,6 25,0 24,4 10,0 0,0 Q4/16 Q4/17 Q4/18 2016 2017 2018 Comparable EBIT, % Q4/16 Q4/17 Q4/18 2016 2017 2018 9.9 10.1 9.1 6.1 5.1 5.6 15 6.3.2019 Tokmanni Roadshow London
Slide 16: Estimated impact of IFRS 16 standard
Estimated impact of IFRS 16 standard • IFRS 16 is adopted as of 1 January 2019 • As a result of the adoption of the standard, leases are transferred to the balance sheet as a liability and assets • Introduction of the standard is estimated to impact in balance sheet, result and key figures as follow
Slide 17: Main focus in 2019: Improving profitability
Main focus in 2019: IMPROVING PROFITABILITY 17 6.3.2019 Tokmanni Roadshow London
Slide 18: Tokmanni competitive advantages
Tokmanni competitive 1. Low prices advantages 4. Lean and efficient operation model 2. Inspiring and wide 3. Nationwide store network assortment combined with an online store 18 6.3.2019 Tokmanni Roadshow London
Slide 19: Tokmanni business drivers
Tokmanni business drivers CUSTOMERS Customer NPS >60 PERSONNEL Best place to work in retail REVENUE 1 billion € PROFITABILITY 9% Comparable EBIT margin SUSTAINABILITY Tokmanni values people and environment 19 6.3.2019 Tokmanni Roadshow London
Slide 20: Tokmanni's year 2019
Tokmanni’s year 2019 • Reducing the share of fixed costs • Strengthening supply chain and reducing real estate rentals and maintenance costs • Enhancing operations of stores • Increasing the gross margin • Increasing direct import and sales of own brands • Increasing batch sales • Improving product
Slide 21: Long-term goal: comparable EBIT margin about 9%
Long-term goal: comparable EBIT margin about 9% About 9% 1.0% - 2.0% 1.0% - 1.5% 6.1% EBIT-% 2018* Operating expenses Gross margin EBIT-% target improvement potential improvement potential * IFRS 16 impact of 0.5% has been taken into account 21 6.3.2019 Tokmanni Roadshow London
Slide 22: Tokmanni's updated long-term financial targets
Tokmanni’s updated long-term financial targets • Tokmanni’s goal is to continue to reinforce its position as the leading general discount retailer in Finland by making the most out of its key competitive advantages, which are its low perceived price image, wide and attractive assortment and good sho
Slide 23: Thank you!
Thank you! tokmanni.fi 23 6.3.2019 Tokmanni Roadshow London