Slide 1: Interim Management Statement Q1 2023
Interim Management Statement Q1 2023 Jari Latvanen, CEO Stockmann Group, 28 April 2023
Slide 2: Key highlights in Q1 2023
STOCKMANN GROUP IN Q1 2023 Key highlights in Q1 2023 Group’s revenue, EUR million 198.5 (196.1) • Stockmann Group had a positive start to the year. Group’s adjusted operating result, EUR million Sales and profitability improved in both divisions despite the headwind caused by the operating environme
Slide 3: Both divisions strengthened their sales and result
STOCKMANN GROUP, PERFORMANCE IN Q1 2023 Both divisions strengthened their sales and result QUARTERLY REVENUE QUARTERLY OPERATING RESULT EUR mill. EUR mill. Adjusted 300 277.5 272.6 269.0 40 35.4 244.0 32.9 237.8 29.6 228 30 26.8 26.1 198.5 22.0 196.1 20 200 155.7 10 0 100 -10 -3.7-2.4 -20 -21.1 -30
Slide 4: Lindex and Stockmann – Leading Nordic Fashion Houses
STOCKMANN GROUP Lindex and Stockmann – Leading Nordic Fashion Houses Distribution of the Group revenue by division, category and market, Q1 2023 REVENUE REVENUE REVENUE BY DIVISION BY CATEGORY BY MARKET Rental income and other Food 4% 4% Home 4% Beauty Baltics 9% & other countries 20% Finland Stockm
Slide 5: The Stockmann division
A The Stockmann division
Slide 6: Strong revenue growth and improved result for Stockmann division
STOCKMANN DIVISION, PERFORMANCE IN Q1 2023 Strong revenue growth and improved result for Stockmann division QUARTERLY REVENUE QUARTERLY OPERATING RESULT EUR mill. Adjusted EUR mill. 120 15 99.7 100.4 100 10 6.3 81.0 77.1 80 72.0 68.9 5 3.3 66.0 62.2 0 0.2 56.9 60 0 -1.5 40 -5 -4.0 20 -10 -7.3 -7.0 -
Slide 7: Strong sales growth and improved result
STOCKMANN DIVISION, HIGHLIGHTS IN Q1 2023 Strong sales growth and improved result • Strong revenue growth of +15.8% – Commercial campaigns boosted sales – The Crazy Days campaign with updated concept • Department stores becoming destinations offering inspiring and energising environment – Renewed ch
Slide 8: Strategic repositioning of Stockmann towards luxury and affordable luxury
STOCKMANN DIVISION, HIGHLIGHTS IN Q1 2023 Strategic repositioning of Stockmann towards luxury and affordable luxury proceeding – Louis Vuitton store opened in Stockmann’s Helsinki flagship store 8 28.4.2023
Slide 9: A new inspirational children's world opened in the Helsinki flagship store
STOCKMANN DIVISION, HIGHLIGHTS IN Q1 2023 A new inspirational children’s world opened in the Helsinki flagship store 9 28.4.2023
Slide 10: Strong focus on implementing customer-centric strategy for growth and profit
STOCKMANN DIVISION, WAY FORWARD Strong focus on implementing customer-centric strategy for growth and profit • Targeting profitability – Investments and focus on digital growth and omnichannel capabilities – Increase in non-merchandise income incl. rental & commission income as well as media sales –
Slide 11: The Lindex division
The Lindex division SUSANNE EHNBÅGE CEO
Slide 12: Continued high profitability at Lindex
LINDEX DIVISION, PERFORMANCE IN Q1 2023 Continued high profitability at Lindex QUARTERLY REVENUE QUARTERLY OPERATING RESULT Adjusted EUR mill. EUR mill. 200 188.0 39.0 168.9 166.9 177.8 172.2 40 162.0 32.3 31.2 150 134.0 30 24.3 23.0 126.5 22.5 20 98.7 100 10 5.5 5.6 50 0 -10 -7.6 0 -20 1-3 4-6 7-9
Slide 13: Sales growth despite challenging market situation
LINDEX DIVISION, HIGHLIGHTS IN Q1 2023 Sales growth despite challenging market situation • Sales growth in local currencies • Expanded product offering within the femtech brand Female Engineering • Piloting new services and circular business models • The 2022 sustainability report released, describi
Slide 14: Continuing global, digital and sustainable growth
LINDEX DIVISION, WAY FORWARD Continuing global, digital and sustainable growth • Challenging global market situation • Continuing Lindex’s femtech journey as well as developing new business and growth opportunities • Advancing the circular transformation to reach set goals • Investments and digital
Slide 15: Logistic setup today
LINDEX DIVISION, WAY FORWARD Logistic setup today • Congestion in Lindex’s logistic operations • Main automated distribution centre in Partille has reached storage and throughput capacity • Manual handling in e-com warehouse in Borås • Capacity constraints future growth • Complete central stock not
Slide 16: 16 28.4.2023
16 28.4.2023
Slide 17: Stockmann Group
Stockmann Group ANNELIE FORSBERG CFO
Slide 18: Both divisions strengthened their sales and result
STOCKMANN GROUP, PERFORMANCE IN Q1 2023 Both divisions strengthened their sales and result EUR mill. QUARTERLY REVENUE EUR mill. QUARTERLY OPERATING RESULT Adjusted 300 277.5 272.6 40 35.4 32.9 269.0 244.0 29.6 228.0 237.8 30 26.8 26.1 22.0 198.5 196.1 20 200 155.7 10 0 100 -3.7 -2.4 -10 -20 -21.1 0
Slide 19: Growth and continued profitability also on R12 basis
STOCKMANN GROUP, R12 FINANCIAL PERFORMANCE Growth and continued profitability also on R12 basis EUR mill. REVENUE R12 EUR mill. ADJUSTED OPERATING RESULT R12 1200 +4.7% 100 85.6 984.0 81.1 1000 960.5 921.6 939.5 80 777.9 800 60 600 39.8 40 31.1 400 20 200 0 0 -6.8 Q4 2019 Q1 2020 Q1 2021 Q1 2022 Q1
Slide 20: Profitability level of divisions remained unchanged
STOCKMANN GROUP Profitability level of divisions remained unchanged EUR mill. 120 100.0 100 93.3 91.3 90.0 90.0 80.3 80 70.8 62.1 60 47.1 40.9 42.9 39.6 40 36.2 33.5 20 2.9 0 -1.8 -5.1 -2.5 -2.3 -5.4 -5.1 -20 -9.9 -16.8 -17.8 -40 -33.7 -38.7 -60 -48.2 -49.7 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1
Slide 21: Total cash flow in Q1 2023
STOCKMANN GROUP Total cash flow in Q1 2023 EUR mill. 250 200 23 168 -26 150 -16 -33 103 100 -14 -1 50 0 Opening cash Adjusted EBITDA Lease payments Paid taxes Change in WC Investments Currency & other Ending cash Q1 2022 214 21 -22 -14 -60 -5 -3 131 – CAPEX Lindex Omnichannel distribution centre EUR
Slide 22: Continued positive interest-bearing debt position
STOCKMANN GROUP, INTEREST-BEARING DEBT EXCLUSIVE IFRS16 LEASES Continued positive interest-bearing debt position Conversion of unsecured debt to senior secured Divestment of the Book House bonds according to the restructuring programme Divestment of Nevsky Centre Divestment of the property in Tallin
Slide 23: Lease liabilities
STOCKMANN GROUP Lease liabilities after sale-and-leaseback Average lease period Lease Number left, liability Stores of stores years EUR mill. Stockmann Helsinki 1 19.0 189.8 city centre Stockmann 7 7.1 96.6 department premises Stockmann other 6.7 leases Lindex stores 405 1.9 280.9 Total 413 574.0 Al
Slide 24: Equity ratio, %
STOCKMANN GROUP, BALANCE SHEET ITEMS Equity ratio, % % 60 50 40 30 Incl. IFRS Excl. IFRS 20 10 0 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 31 March 2023 31 March 2022 31 December 2022 Cash and cash equivalents EUR mill. 102.5 130.
Slide 25: Adjusted earnings per share
STOCKMANN GROUP, EARNINGS PER SHARE Adjusted earnings per share EUR mil. EUR 60 0.6 0.35* 0.24 0.25 40 0.4 20 0.2 0 0 2019 2020 2021 2022 R12 March 2023 -20 -0.2 -40 -0.4 -0.53 -0.48 -60 -0.6 Adjusted net result Adjusted EPS * Number of shares: 114 008 608 R12 months 1-3/2023 1-3/2022 1-12/2022 31 M
Slide 26: Market Outlook for 2023
STOCKMANN GROUP Market Outlook for 2023 The current challenging geopolitical situation and the high inflation level are expected to continue. However, inflation is predicted to slow down compared to the latter part of the year 2022. The inflation together with high interest rates, is forecast to hav
Slide 27: Guidance for 2023
STOCKMANN GROUP Guidance for 2023 (unchanged) In 2023, Stockmann expects the Group’s revenue to be in the range of EUR 960–1 020 million and the Group’s adjusted operating result to be EUR 60–80 million, subject to foreign exchange rate fluctuation. The guidance is based on the assumption that the c
Slide 28: Q&A Further information
Q&A Further information stockmanngroup.com investor.relations@stockmann.com