Slide 1: Q3 report
Q3 report 06 March 2024 Kristofer Tonström President & CEO Pernilla Walfridsson CFO 1
Slide 2: Agenda
• Business update • Financial development Agenda • Events after the reporting period • Summary • Q&A 2
Slide 3: Q3 highlights: sales +9%, improved operating profit
✓ Total sales* +9% to 3,233 MSEK, organic +12% ✓ Significantly improved operating profit at 422 MSEK ✓ Prioritised categories and product news driving growth ✓ Continued focus on efficiency and flexibility ✓ Q1-Q3 operating cash flow 1,597 MSEK (947) ✓ Solid financial position: net debt/EBITDA -0,5*
Slide 4: Business update
Business update 4
Slide 5: Strategy execution – growth plan 24/25
Strategy execution – growth plan 24/25 Organic growth 5% with Industry leading in 1 7-9% EBIT margin 2 sustainability – deliver on our people agenda and 2045 commitments Planet People Society 20/21 21/22 22/23 R12 Q3 23/24 5
Slide 6: Strategy execution – overview Q3 23/24
Strategy execution – overview Q3 23/24 Make assortment relevant A profitable and growing Expand the 12 months/year. online business. store network. ✓ All prioritised categories driving ✓ Online sales* +19% Q3 ✓ 4 new stores opened so far 23/24 growth ~50% of online orders ✓ 7 stores to open in Q4 ✓
Slide 7: Assortment relevance – all consumer missions driving growth
Assortment relevance – all consumer missions driving growth Tidy up Light up Create a conscious Connect & enjoy Fix your your home. your home. home environment. your home. home. Sustainability Spare parts Seasons Consumables assortment 7
Slide 8: All time high Christmas sales in a difficult market
All time high Christmas sales in a difficult market Clas Ohlson November and December sales 2,496 MSEK 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 Nov Dec 8
Slide 9: Brand strength
Brand strength • Efficient and relevant customer communication ‒ 5.4 million Club Clas members (+8%) ‒ Strong growth in younger member segments • Top of mind also when customer demand rapidly shifts ‒ Products connected to cold weather in Norway ‒ Prepping products in Sweden • Great interest in new
Slide 10: Delivering on store expansion plan
Delivering on store expansion plan New store, opened in 23/24 New store, planned opening in 23/24 Rebuilt store, re-opened in 23/24 Rebuilt store, planned re-opening in 23/24 New store, planned opening in 24/25 New target for 2024/25: net addition of approx. 10 new stores
Slide 11: Spares – a leading company within spare parts and accessories
Spares – a leading company within spare parts and accessories for electronics as well as batteries • Development according to plan – continued strong market trend and work in progress for joint value creation ‒ Sales in Q3: 179 MSEK • Consolidated into the Clas Ohlson Group one segment accounting as
Slide 12: Value for money assortment and great customer service
Value for money assortment and great customer service Customer Confidence Consumer Confidence development* development* Q: Howaffordable Q: How affordable dothink do you you the think the following following brands are? brands are? Net Promoter Score (NPS) 0.0 55* -5.0 -10.0 5% 61% 33% Clas Ohlson (
Slide 13: Financial development
Financial development 14
Slide 14: Strong sales development in stores and online
Strong sales development in stores and online Q3 Total sales, MSEK Online sales, MSEK • Total sales, excluding Spares, up 9% to 3,233 MSEK, organic sales up 12%, LFL up 12% • Online sales, excluding Spares, up 19% • Total sales, including Spares, 3,412 MSEK • Online sales, including Spares, 589 MSEK
Slide 15: Increasing sales in all markets
Increasing sales in all markets Sweden Norway Finland Organic Q3: +14% Q3: +13% Q3: +5% growth: Q1-Q3: +11% Q1-Q3: +12% Q1-Q3: +3% 16
Slide 16: Macro trends with business impact
Macro trends with business impact Spot prices for 40t containers from Asia to Gothenburg $18 000 Factors impacting Clas Ohlson: $16 000 $14 000 • Container shipping costs and raw material and commodity prices $12 000 $10 000 • Translation/transaction effects - sales instant effects and purchasing $8
Slide 17: Slightly improved gross margin
Slightly improved gross margin Currency Sourcing and hedging transportation Currency effects (USD/NOK) 38.2% 38.4% Sales mix Q3 2022/23 Q3 2023/24 18
Slide 18: Financial overview
Financial overview Share of selling expenses, Q3 24.5 Q3 Q3 Q1-Q3 Q1-Q3 MSEK 23/24 22/23 23/24 22/23 % (25.7%) Operating profit excl. non- 425 334 856 466 Administrative expenses, Q3 recurring items 50 Items affecting comparability -3 -119 -204 -154 MSEK Operating profit 422 215 651 312 (51 MSEK) EB
Slide 19: Well balanced inventory
Well balanced inventory • Inventory level: 2,303 MSEK (2,125) at the end of the period • Average inventory level LTM: 2,304 MSEK (2,394) • Inventory turnover rate DC: 5.6 (4.5) 20
Slide 20: Strong cash flow and solid financial position
Strong cash flow and solid financial position Q1-Q3 Q1-Q3 Approved credit facilities* 1,110 MSEK 23/24 22/23 MSEK Cash flow from operating activities, before 1,184 880 Of which utilised 0 MSEK change in working capital Change in working capital 413 67 Net debt/EBITDA excl. IFRS 16 Cash flow from ope
Slide 21: Events after the reporting period
Events after the reporting period 22
Slide 22: February sales development
February sales development • Total sales, excluding Spares, up 17% to 636 MSEK, organic sales up MSEK MSEK 19% and LFL up 19% Total 636 Online ‒ Sweden +18% organic 534 541 ‒ Norway +22% organic ‒ Finland +14% organic • Online sales, excluding Spares, +20% • Total sales, including Spares, 686 MSEK ‒
Slide 23: Summary
Summary 24
Slide 24: Executing on our strategic plan
Executing on our strategic plan • Challenging market and continued uncertainty around consumer spending • Relevant assortment, value for money and increased flexibility is key • Developing our sales channels ‒ Expanding the store network, new target set for 24/25: net addition of approx. 10 stores ‒
Slide 25: Sets mi ode
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