Slide 1: Interim Report Q3 2019
INTERIM REPORT Q3 2019 Lauri Ratia, Executive Chairman Stockmann Group | 30 October 2019
Slide 2: Strategic transformation continues
STRATEGIC TRANSFORMATION CONTINUES • Rejuvenation programme progressing as planned • New strategy for Stockmann • New Lindex strategy launched, strategic options assessed • Board support for planned investment program • New organisation and key leaders in place • The cost savings projects on track •
Slide 3: Q3 2019 in brief
Q3 2019 IN BRIEF • Stockmann Group Group’s gross margin – Revenue EUR 225.3 million, down by 1.8% in comparable currency rates 56.4% (58.7) – Adjusted operating profit EUR 5.4 million (5.9, or 1.4 excluding Nevsky Centre) – Stockmann Retail and Real Estate divisions merged as of 1 July 2019 • Lindex
Slide 4: Stockmann
STOCKMANN Jari Latvanen CEO
Slide 5: Stockmann division, performance in Q3 2019
STOCKMANN DIVISION, PERFORMANCE IN Q3 2019 FINANCIALS QUARTERLY REVENUE Without IFRS 16 effect • Revenue EUR 78.2 million (85.5) EUR mill. 160 – Growth in the online store +14%, but revenue declined mainly due to the divestment of properties 120 80 • Gross margin 46.2% (46.6%) 40 • Operating costs E
Slide 6: Stockmann's strategic transformation continues
STOCKMANN’S STRATEGIC TRANSFORMATION CONTINUES • Strenghten Stockmann's position as the number one source of inspiration in fashion, beauty and home – Developing operations to offer excellent customer service and inspiring experiences – Clear focus on defined customer groups – Renewing selections fu
Slide 7: A completely renewed Loyal Customer programme was launched on 21 October 2019
• A completely renewed Loyal Customer programme was launched on 21 October 2019 • Six different Loyal customer levels based on purchases – The starting level is based on purchases made after October 2014 – Lifetime program, no dropping from one level to another – Points will be collected from every
Slide 8: Crazy Days key facts
• Crazy Days key facts – Campaign held 2–6 October 2019 in Finland, Estonia and Latvia +11% – Eight department stores, the online store sales in the online store hullutpaivat.com in Finland and crazydays.com in Estonia and Riga Healthier product • Campaign sales selection vs. last year – Total sales
Slide 9: Lindex
LINDEX Susanne Ehnbåge CEO
Slide 10: Lindex, performance in Q3 2019
LINDEX, PERFORMANCE IN Q3 2019 FINANCIALS QUARTERLY REVENUE • Revenue up by 0.4% to EUR 147.6 million (147.0) Without IFRS 16 effect – Same-store sales in comparable currencies increased by 3.3% EUR mill. 200 – Online sales increased by 24% 150 • Gross margin decreased to 61.9% (62.1) 100 • Operatin
Slide 11: Lindex way forward
LINDEX WAY FORWARD • Implementation of updated strategy – To further strengthening international growth and digital transformation • Continued online expansion and new franchising markets • Signed local partner for online sales in China • New business venture within Lingerie • New flexible store for
Slide 12: Stockmann
STOCKMANN Pekka Vähähyyppä CFO
Slide 13: Stockmann Group, financial performance in Q3 2019
STOCKMANN GROUP, FINANCIAL PERFORMANCE IN Q3 2019 • Revenue EUR 225.3 million (232.5) QUARTERLY REVENUE – Down by 1.8 % in comparable currency rates EUR mill. • Gross margin 56.4% (58.7) 400 – Down in both Lindex and Stockmann 300 200 • Operating costs down by EUR 36.6 million – Decrease mainly due
Slide 14: Stockmann Group, interest-bearing net debt
STOCKMANN GROUP, INTEREST-BEARING NET DEBT EUR mill. Divestment of the 900 Book House 831.5 800 Divestment of Nevsky 700 Centre 600 500 452,5 400 300 200 100 0 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Excl. IFRS 16 Excl. IFRS 16 Excl. IFRS 16 STOCKMANN
Slide 15: Group's rolling 12-month comparable operating profit
GROUP’S ROLLING 12-MONTH COMPARABLE OPERATING PROFIT* EUR mill. 40 Impact of Nevsky Centre 30 20 10 0 -10 -20 -30 1-12 4/2015- 7/2015- 10/2015- 1-12 4/2016- 7/2016- 10/2016- 1-12 4/2017- 7/2017- 10/2017- 1-12 4/2018- 7/2018- 10/2018- 2015** 3/2016** 6/2016** 9/2016** 2016 3/2017 6/2017 9/2017 2017 3
Slide 16: Key figures
KEY FIGURES Q3/2019 Q3/2018 1-9/2019 1-9/2018 1-12/2018 Equity ratio % 36.3 44.9 46.2 - Excluding IFRS 16 48.8 Net gearing % 125.8 74.4 64.4 - Excluding IFRS 16 58.8 Net financial items EUR mill. -13.1 -7.8 -40.4 -25.4 -34.6 Result for the period* EUR mill. -18.2 -13.8 -56.1 -36.7 -43.7 Earnings per
Slide 17: Market environment and outlook for 2019
MARKET ENVIRONMENT AND OUTLOOK FOR 2019 • The uncertainties in the global economy, due to eg. Brexit and the trade war between USA and China, remained in Q3 • Consumer confidence indicator in the Finnish economy has been negative from January 2019, but it was increasingly negative during Q3. The fas
Slide 18: Q&A Further information
Stockmann’s own new brand for men Q&A Further information stockmanngroup.com investor.relations@stockmann.com STOCKMANN 30.10.2019 18