Lindex Group Plc Class B · OMXHEX:LINDEX

Lindex Group Plc Class B — Stockmann Group — FY2022 Earnings Presentation

25 slides from Lindex Group Plc Class B's earnings presentation, Feb 24, 2023

  1. Slide 1: Financial Statements 2022

    FINANCIAL STATEMENTS 2022 Jari Latvanen, CEO Stockmann Group | 24 February 2023

  2. Slide 2: Achievements in 2022

    STOCKMANN GROUP IN FULL-YEAR 2022 ACHIEVEMENTS IN 2022 • Revenue and operating result clearly improved regardless the difficult market situation • Successful implementation of the restructuring plan - undisputed restructuring debts paid • Investment in growth and efficiency with a new 110 MEUR Linde

  3. Slide 3: Determined measures taken to compensate impacts from difficult market situation

    STOCKMANN GROUP IN Q4 2022 DETERMINED MEASURES TAKEN TO COMPENSATE IMPACTS DERIVING FROM DIFFICULT MARKET SITUATION • Stockmann Group Group’s revenue, EUR million – Revenue -1.8% to EUR 272.6 million (277.5) 272.6 (277.5) – Adj. operating result decreased by EUR 3.5 million to EUR 26.1 million (29.6

  4. Slide 4: Annual revenue and operating result clearly improved

    STOCKMANN GROUP IN FULL-YEAR 2022 ANNUAL REVENUE AND OPERATING RESULT CLEARLY IMPROVED Group’s revenue, EUR million • Stockmann Group 981.7 – Revenue +9.2% to EUR 981.7 million (899.0) (899.0) – Adj. operating result increased by EUR 11.5 million to EUR 79.8 million (68.3) Group’s adjusted operating

  5. Slide 5: Fashion and Lindex division driving Stockmann Group

    STOCKMANN GROUP IN FULL-YEAR 2022 FASHION AND LINDEX DIVISION DRIVING STOCKMANN GROUP REVENUE 2022 BY DIVISION REVENUE 2022 BY MARKET EUR 981.7 million Stockmann Baltics & 33% other countries 17% Finland 33% Norway Lindex 67% 14% REVENUE 2022 Rental income and other 3% Food 4% Home 5% Beauty Sweden

  6. Slide 6: Stockmann Division

    STOCKMANN STOCKMANN DIVISION DIVISION

  7. Slide 7: Revenue increased thanks to more visitors in the B&M stores

    STOCKMANN DIVISION, PERFORMANCE IN Q4 2022 REVENUE INCREASED THANKS TO MORE VISITORS IN THE B&M STORES QUARTERLY REVENUE EUR mill. • Revenue +0.7% to EUR 100.4 million (99.7) 120 – Brick-and-mortar stores +3.1% due to higher numbers of visitors 100 – Share of online sales was 14.7% (16.7) 80 60 • Gr

  8. Slide 8: Solid annual revenue growth and improved result

    STOCKMANN DIVISION IN 2022 SOLID ANNUAL REVENUE GROWTH AND IMPROVED RESULT • Solid revenue growth +10.0% to EUR 320.6 million (291.6) – Higher sales +14.6% in brick-and-mortar stores , increased visitor levels +22.4% – Significant increase in non-merchandise income – Strong annual sales in fashion,

  9. Slide 9: Focus on profit, customers and sustainability

    STOCKMANN DIVISION, WAY FORWARD FOCUS ON PROFIT, CUSTOMERS AND SUSTAINABILITY • Targeting profitability – Investments and focus on digital growth and omnichannel capabilities – Increase of non-merchandise income incl. rental & commission income as well as media sales – Cost consciousness • Execution

  10. Slide 10: Lindex

    LINDEX Susanne Ehnbåge Lindex CEO

  11. Slide 11: Lindex revenue & result increased in Swedish krona

    LINDEX DIVISION, PERFORMANCE IN Q4 2022 LINDEX REVENUE & RESULT INCREASED IN SWEDISH KRONA • Revenue EUR 172.2 million (177.8) QUARTERLY REVENUE – Revenue down by 3.2% and up by 4.5% in SEK EUR mill. – Sales in brick-and-mortar stores up by 0.6% 200 – Digital sales down by 7.0% 150 – Share of digita

  12. Slide 12: All time high sales and full year result

    LINDEX DIVISION, PERFORMANCE IN 2022 ALL TIME HIGH SALES AND FULL YEAR RESULT • Strong revenue growth +8.8% to EUR 661.1 million (607.4) – Sales up by 14.1% in SEK – Reached over SEK 7 billion in sales – milestone in the company’s history – Sales increased in all markets and business areas – Strong

  13. Slide 13: Strong development in growth and profitability

    LINDEX DIVISION SALES AND ADJ. OPERATING MARGIN 2019-2022 STRONG DEVELOPMENT IN GROWTH AND PROFITABILITY • Sales improvement EUR MILLION 2019–2022 700 13.6% 14.0% 13.2% – In EURO 14,8% (576 => EUR 661 million) 12.0% – In SEK 15.6% 650 (6.1 => SEK 7.0 billion) 10.0% • Adj. operating margin improvemen

  14. Slide 14: Weak Swedish krona vs both US dollar and euro

    CURRENCY FLUCTUATION 2021-2022 WEAK SWEDISH KRONA VS BOTH US-DOLLAR AND EURO US Dollar to Swedish Krona Increase with approx 25% Euro to Swedish Krona Increase with approx 10% STOCKMANN 24.2.2023 14

  15. Slide 15: Continue growing and stand strong

    LINDEX DIVISION, WAY FORWARD CONTINUE GROWING AND STAND STRONG • Proceeding our cost saving actions and flexible approach – Review priorities, costs and development projects • Long-term strategy with ambitious targets to reach – Investments for global, digital and sustainable growth – Major investme

  16. Slide 16: Stockmann Group

    STOCKMANN GROUP Annelie Forsberg CFO

  17. Slide 17: Despite difficult market situation Q4 revenue and result stood strong

    STOCKMANN GROUP, FINANCIAL PERFORMANCE IN Q4 2022 DESPITE DIFFICULT MARKET SITUATION Q4 REVENUE AND RESULT STOOD STRONG QUARTERLY REVENUE EUR mill. 300 • Group Revenue down by 1.8% EUR 272.6 million (277.5) – In same EUR/SEK currency as last year ~ 3.1% 200 – Lindex division, EUR 172.2 million (177.

  18. Slide 18: Revenue increased and profit reached new levels

    STOCKMANN GROUP, FULL-YEAR FINANCIAL PERFORMANCE REVENUE INCREASED AND PROFIT REACHED NEW LEVELS FULL-YEAR REVENUE • Group Revenue up 9.2% to EUR 981.7 million (899.0) EUR mill. – In same EUR/SEK currency as last year ~12.8% 1000 – Lindex division - all-time high revenue 800 • SEK 7.0 billion (6.1),

  19. Slide 19: Lindex division profitability all time high and Stockmann division improves steadily

    STOCKMANN GROUP, ANNUAL ADJUSTED OPERATING PROFIT LINDEX DIVISION PROFITABILITY ALL TIME HIGH AND STOCKMANN DIVISION IMPROVES STEADILY EUR mill. 100.0 80.0 60.0 40.0 20.0 0.0 -20.0 -40.0 -60.0 2019 2020 2021 2022 Lindex Stockmann STOCKMANN 24.2.2023 19

  20. Slide 20: Cash flow from operations continues on good level

    STOCKMANN GROUP CASH FLOW FROM OPERATIONS CONTINUES ON GOOD LEVEL Cash Flow Q4 2022 Cash Flow YTD EUR mill. 350 EUR mill. 250 24 2 300 77 -18 200 27 -16 250 25 168 -21 -3 214 150 140 200 -63 168 -40 150 -12 100 100 50 50 0 0 sh WC sh nts cy IT WC sh ate s nts ans cts IT sh s axe ec t EB en Ca Ca EB

  21. Slide 21: Positive interest-bearing net debt position continues

    STOCKMANN GROUP, INTEREST-BEARING DEBT EXCL IFRS16 LEASES POSITIVE INTEREST-BEARING NET DEBT POSITION CONTINUES Divestment Divestment Long-term Conversion of unsecured Divestment Divestment Divestment EUR mill. of the of Nevsky credit facilities debt to senior secured of the of the of the Book House

  22. Slide 22: Equity ratio further improves and cash position strong

    STOCKMANN GROUP, BALANCE SHEET ITEMS EQUITY RATIO FURTHER IMPROVES AND CASH POSITION STRONG Percentage 60 Equity ratio, % 50 53.4 40 40.9 30 Incl IFRS 27.3 Excl IFRS 20 20.6 10 0 Q4 2019 Q4 2020 Q4 2021 Q4 2022 31.12.2019 31.12.2020 31.12.2021 31.12.2022 Cash and cash equivalents EUR mill. 24.9 152.

  23. Slide 23: Adj. earnings per share stable - despite more shares

    STOCKMANN GROUP, EARNINGS PER SHARE ADJ. EARNINGS PER SHARE STABLE - DESPITE MORE SHARES EUR mill. Adjusted earnings per share EUR 60.0 0.40 0.35 0.32 50.0 0.30 40.0 0.20 30.0 0.10 20.0 0.00 10.0 -0.10 0.0 2019 2020 2021 2022 -0.20 -10.0 -20.0 -0.30 -30.0 -0.40 -40.0 -0.48 -0.50 -0.53 -50.0 -0.60 Ad

  24. Slide 24: Guidance and outlook for 2023

    GUIDANCE AND OUTLOOK FOR 2023 Guidance for 2023 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

  25. Slide 25: Q&A Further information

    Q&A Further information stockmanngroup.com investor.relations@stockmann.com STOCKMANN 24.2.2023 25

Stockmann Group — FY2022 Earnings Presentation on 6ix