Lindex Group Plc Class B · OMXHEX:LINDEX
Lindex Group Plc Class B — Q2 2024 Earnings Presentation
27 slides from Lindex Group Plc Class B's earnings presentation, Jul 19, 2024
Slide 1: Half-year Financial Report January–June 2024
Half-year Financial Report January–June 2024 Susanne Ehnbåge, CEO Annelie Forsberg, CFO 19 July 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 Q2 2024
Key messages Q2 2024 Challenging market The Stockmann Science Based Targets situation in all key division improved initiative approved markets in June its result and Lindex Group’s increased revenue climate target Only one disputed Strategic assessment claim left continuing, in the restructuring exp
Slide 5: Lindex Group's twofold Q2: revenue ended on par
REVENUE, M€ Lindex Group’s twofold Q2: revenue ended on par 300.0 -0.2% • In April and May, revenue developed well 252.0 251.6 in both divisions 250.0 • In June, revenue decreased due to lower number of visitors in stores 200.0 • Preliminary fashion market data shows a declining trend for June 150.0
Slide 6: Q2 result impacted by planned growth investments
ADJUSTED OPERATING RESULT, M€ Q2 result impacted by planned growth investments -2.2 M€ 40.0 • Adjusted operating result impacted by 31.6 • planned higher costs for marketing 29.5 30.0 and digital development enabling future growth 20.0 • revenue decrease in June • The Stockmann division improved its
Slide 7: Lindex continued market expansion
Lindex continued market expansion • Continued expansion via online fashion platforms and introduction of Closely and Female Engineering brand, reaching new markets and customers • Launch of Lindex kidswear selection in the Stockmann department stores and online, capturing Group synergies • Progress
Slide 8: Stockmann improved throughout the quarter
Stockmann improved throughout the quarter • Successful Crazy Days campaign with strengthened omnichannel performance • Continued cost savings and investments in operational efficiency improvement • New organisation structure to support strategy implementation, estimated annual savings of 2.7 M€ from
Slide 9: Guidance 2024
Guidance 2024Updated 15 July 2025 In 2024, Lindex Group expects its revenue in local currencies to be in the range of -2% to +2% 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 adjus
Slide 10: Financial update
Financial update 10
Slide 11: Q2: The Lindex division's result impacted by challenging June and increased costs
LINDEX DIVISION REVENUE, M€ Q2: The Lindex division’s -3.7% result impacted by challenging 200.0 176.2 169.7 June and increased costs 150.0 • Revenue developed well in April and May, 100.0 but decreased due to a clear decline in visitor 50.0 numbers in stores in June in line with the market Q2 2023
Slide 12: Q2: Timing and success of Crazy Days improved Stockmann's performance
STOCKMANN DIVISION REVENUE, M€ Q2: Timing and success of +8.0% Crazy Days improved Stockmann’s performance 100.0 75.8 81.9 50.0 • Timing and success of the Crazy Days campaign increased the revenue 0.0 Q2 2023 Q2 2024 • Gross margin decreased to 44.4% (44.7) due to higher share of promotional sales
Slide 13: Q2: Changes in Group revenue and adjusted operating result
Q2: Changes in Group revenue and adjusted operating result CHANGES IN REVENUE, M€ CHANGES IN ADJUSTED OPERATING RESULT, M€ 280 35 3 .6 260 252 06 252 30 2. 0.3 2 .5 2 0 07 25 5. 220 Crazy Days Visitor 20 Crazy Days 200 decline Lower and cost in June revenue and savings 80 5 increased costs 60 0 0 5
Slide 14: Q2: Group key figures
Q2: Group key figures REVENUE, M€ ADJUSTED OPERATING RESULT, M€ -0.2% -2.2 M€ 300.0 252.0 251.6 40.0 31.6 250.0 29.5 30.0 200.0 20.0 150.0 10.0 100.0 0.0 Q2 2023 Q2 2024 Q2 2023 Q2 2024 20.3 M€ 7.0 M€ 60.0% 0.0 € (30.2) (13.8) (60.1) (0.09) operating result net result gross margin EPS
Slide 15: 1–6/2024: Changes in Group revenue and adjusted operating result
1–6/2024: Changes in Group revenue and adjusted operating result CHANGES IN REVENUE, M€ CHANGES IN ADJUSTED OPERATING RESULT, M€ 500 -1.3% 35 -6.2 M€ 30 2 50. . 50 2.3 3.7 25 00 23 0 00 20 07 Visitor Decline in fashion sales Mainly cost decline 5 savings 350 in June Lower revenue and 0 increased 300
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 83.5 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 -9.9 -7.0 -6.3 -8.7 -20 -12.0 -16.8 -17.8 -40 -33.7 -3
Slide 17: 1-6 2024: Operating free cash flow and capital expenditure
1-6 2024: Operating free cash flow and capital expenditure OPERATING FREE CASH FLOW, M€* CAPITAL EXPENDITURE (EXCL. IFRS 16 ITEMS), M€ 60.0 55.6 40.0 50.0 29.6 30.0 40.0 27.7 20.0 16.9 30.0 20.0 10.0 10.0 0.0 0.0 1-6 2023 1-6 2024 1-6 2023 1-6 2024 • Increased working capital due to higher accounts
Slide 18: Changes in cash position
Changes in cash position CHANGES IN CASH POSITION PER ITEM, M€ 03. M€ (132.7) 250 cash 73 200 2024 20 50 38 1–6 55 7 03 00 0 0 03 50 Opening djusted Change ease C aid refund Other adj. Currency nding cash . .202 B TD in C payments of ta es diffs. cash 30.6.202 300 250 80 03 200 2023 68 50 50 30 33 1
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 73 100 36 61 36 66 30 0 11 -100 -234 -313 -274 -325 -278 Divestment of the -200 property in Helsinki -300 -400 D
Slide 20: Financial highlights Q2 2024
Financial highlights Q2 2024 Revenue and gross Good revenue Adjusted operating margin on par despite development result improved challenging market in April and May, in every month situation in June decline in June of the quarter 20
Slide 21: Way forward
Way forward 21
Slide 22: Lindex: Clear strategy for value creation
Lindex: Clear strategy for value creation Transform to a Decouple cost Accelerate growth sustainable business from growth
Slide 23: Lindex: Important launches for reaching growth and profitability plan
Lindex: Important launches for reaching growth and profitability plan • Launch new omnichannel distribution centre in the autumn • Continue to invest in enabling future growth while focusing on cost efficiency • Strengthen our foundation for efficiency, flexibility and innovation • Continue implemen
Slide 24: Stockmann: Customer-centric strategy to ensure profitability and future growth
Stockmann: 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: Focus on operational efficiency improvement and customer
Stockmann: Focus on operational efficiency improvement and customer • Operational efficiency improvement as a high priority to ensure profitability • Secure continued progress in • Digitalisation and leveraging technology • Organisational and process efficiency • Strategic collaboration with supplie
Slide 26: Q&A Further information
Q&A Further information lindex-group.com investor.relations@stockmann.com 26
Slide 27: Next financial report
Next financial report Interim Report for January–September 25 October 2024 27