Slide 1: Half Year Financial Report 2019
HALF YEAR FINANCIAL REPORT 2019 Lauri Ratia, Executive Chairman Stockmann Group | 9 August 2019
Slide 2: Strategic transformation is progressing
STRATEGIC TRANSFORMATION IS PROGRESSING LINDEX • Strategy and business plan for 2019–2023 approved • Further strengthening international growth and digital transformation • Board of Directors has decided to investigate strategic alternatives for the ownership STOCKMANN • Stockmann Retail and Real Es
Slide 3: Jari Latvanen appointed Stockmann's new CEO
JARI LATVANEN APPOINTED STOCKMANN’S NEW CEO • Born 1964, MBA, Finnish citizen • Previous work experience: – HKScan Oyj, CEO and President, 2016–2018 – Stora Enso, Executive Vice President, Head of Consumer Board, 2014–2016 – Findus, Chief Executive Officer Fincus Nordic, 2010–2014 – Nestlé Czech Rep
Slide 4: Pekka Vähähyyppä appointed Stockmann's new CFO
PEKKA VÄHÄHYYPPÄ APPOINTED STOCKMANN’S NEW CFO • Born 1960, M.Sc. (Econ.), EMBA, Finnish citizen • Previous work experience: – Finnair plc, CFO, 2015–2019 – Finnair plc, Interim CEO, 2018 – Stockmann plc, Executive Vice President and CFO, 2008–2015 – Stockmann plc, CFO, 2000–2008 – Nestlé Nordic and
Slide 5: Q2 2019 in brief
Q2 2019 IN BRIEF • Stockmann Group Group’s gross margin – Revenue down by 12.1% in comparable currency rates 58.6% (58.2) – Adjusted operating result EUR 16.2 million (23.8, or 19.3 excluding Nevsky Centre) • Lindex – Comparable revenue down by 2.5%, growth in the online store 23% – Improved gross m
Slide 6: Stockmann Group
STOCKMANN GROUP Kai Laitinen CFO
Slide 7: Stockmann Group, financial performance in Q2 2019
STOCKMANN GROUP, FINANCIAL PERFORMANCE IN Q2 2019 • Revenue EUR 242.3 million (279.4) QUARTERLY REVENUE – Down by 12.1% in comparable currency rates EUR mill. • Gross margin 58.6% (58.2) 400 – Up in both Lindex and Stockmann Retail 300 200 • Operating costs down by EUR 29.8 million – Decrease mainly
Slide 8: Stockmann Group, interest-bearing net debt
STOCKMANN GROUP, INTEREST-BEARING NET DEBT EUR mill. Divestment of the 900 831.5 Book House 800 Divestment of Nevsky 700 Centre 600 500 431.6 400 300 200 100 0 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Excl. IFRS 16 Excl. IFRS 16 STOCKMANN 9.8.2019 8
Slide 9: Group's rolling 12-month adjusted operating profit
GROUP’S ROLLING 12-MONTH ADJUSTED OPERATING PROFIT EUR mill. Impact of Nevsky 40 Centre EUR 10.2 million 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- 2015* 3/2016* 6/2016* 9/2016* 2016 3/2017 6/2017 9/2017 2017
Slide 10: Impact of IFRS 16 (Q2)
IMPACT OF IFRS 16 Excluding Reported IFRS 16 items IFRS 16 items Reported EUR million, quarterly 4–6/2019 4–6/2019 4–6/2019 4–6/2018 Revenue 242.3 -0.5 242.8 279.4 EBITDA 45.6 25.5 20.0 43.5 Adjusted EBITDA 51.6 25.5 26.0 37.7 Depreciation 35.3 21.7 13.6 13.9 Operating result (EBIT) 10.2 3.8 6.4 29.
Slide 11: Impact of IFRS 16 (YTD)
IMPACT OF IFRS 16 Excluding Reported IFRS 16 items IFRS 16 items Reported EUR million, YTD 1–6/2019 1–6/2019 1–6/2019 1–6/2018 Revenue 449.5 -1.1 450.6 481.8 EBITDA 59.5 51.0 8.5 30.8 Adjusted EBITDA 66.3 51.0 15.3 27.1 Depreciation 70.7 43.4 27.3 28.1 Operating result (EBIT) -11.2 7.6 -18.8 2.7 Adj
Slide 12: Key figures
KEY FIGURES Q2/2019 Q2/2018 1-6/2019 1-6/2018 1-12/2018 Equity ratio % 37.2 45.7 46.2 - Excluding IFRS 16 50.3 Net gearing % 121.7 72.6 64.4 - Excluding IFRS 16 54.6 Net financial items* EUR mill. -13.6 -8.8 -27.3 -17.5 -34.6 Result for the period* EUR mill. -5.5 8.0 -37.9 -22.9 -43.7 Earnings per s
Slide 13: Market environment and outlook for 2019
MARKET ENVIRONMENT AND OUTLOOK FOR 2019 • The general economic situation was moderate in Finland during the second quarter. The consumer confidence declined clearly, but was still at a good level – Fashion market in Finland in January–June was -1.5% (1–6/2018: -1.0%, source: Fashion and Sport Commer
Slide 14: Lindex
LINDEX Susanne Ehnbåge CEO
Slide 15: Lindex, performance in Q2 2019
LINDEX, PERFORMANCE IN Q2 2019 FINANCIALS QUARTERLY REVENUE • Revenue down by 6.0% to EUR 154.0 million (163.8) Without IFRS 16 effect – Same-store sales in comparable currencies decreased by 2.5% EUR mill. 200 – Online sales increased by 23% 150 • Increased gross margin 64.3% (63.7) 100 • Operating
Slide 16: Lindex way forward
LINDEX WAY FORWARD • Updated strategy for 2019–2023 approved – Further strengthening international growth and digital transformation • Sales growth and continued good cost control in focus • Important autumn season start – Strong commercial fashion offer with relevant products for the period – Well
Slide 17: Stockmann Retail
STOCKMANN RETAIL Tove Westermarck Chief Operating Officer
Slide 18: Stockmann Retail, performance in Q2 2019
STOCKMANN RETAIL, PERFORMANCE IN Q2 2019 FINANCIALS QUARTERLY REVENUE Without IFRS 16 effect • Revenue EUR 84.9 million (104.7) EUR mill. 150 – Revenue down by 19.0% due to the timing of the Crazy Days campaign in Finland and renewal in Tallin Delicatessen 100 • Gross margin 46.7% (45.4) 50 • Operat
Slide 19: Stockmann Retail's way forward
STOCKMANN RETAIL’S WAY FORWARD • Targeting a Fashion & Style authority position – Clear focus on a core target customer, modern working professional – Renewing Fashion, Home and Beauty offering – our promise: inspiring quality – Create newness with relevant, sustainable and unique brands – Several n
Slide 20: Renewed Jumbo department store will open in 2020
RENEWED JUMBO DEPARTMENT STORE WILL OPEN IN 2020 Picture: Suunnittelutoimisto Amerikka Oy STOCKMANN 9.8.2019 20
Slide 21: Real Estate
REAL ESTATE Elena Stenholm Director, Real Estate
Slide 22: Real Estate, financial performance in Q2 2019
REAL ESTATE, FINANCIAL PERFORMANCE IN Q2 2019 FINANCIALS QUARTERLY REVENUE Without IFRS 16 effect • Revenue EUR 10.5 million (17.5) EUR mill. 20 – Down due to the divestment of the Book House property in Helsinki and the Nevsky Centre property in St Petersburg 15 10 • Net operating income from own p
Slide 23: Real Estate, Stockmann-owned properties
REAL ESTATE, STOCKMANN-OWNED PROPERTIES • Fair value of the department store properties: EUR 681.0 million (1 January 2019) • Gross leasable area (GLA) 88 000 sqm, of which Stockmann Retail is using 73% • Occupancy rate 98.0% (99.4) • Combining Stockmann Retail and Real Estate to offer a unified cus
Slide 24: Q&A, further information
Q&A Further information stockmanngroup.com investor.relations@stockmann.com STOCKMANN 9.8.2019 24