Lindex Group Plc Class B · OMXHEX:LINDEX
Lindex Group Plc Class B — Stockmann Group — Q3 2020 Earnings Presentation
20 slides from Lindex Group Plc Class B's earnings presentation, Oct 30, 2020
Slide 1: Interim Management Statement Q3 2020
INTERIM MANAGEMENT STATEMENT Q3 2020 Jari Latvanen, CEO Stockmann Group | 30 October 2020
Slide 2: Corporate Restructuring Proceeds
CORPORATE RESTRUCTURING PROCEEDS • Stockmann plc decided to file for corporate restructuring proceedings on 6 April 2020 – After the first week of March, the coronavirus (COVID-19) epidemic in Europe caused significant changes in Stockmann Group’s operating environment – The strong sales growth in S
Slide 3: COVID-19 Has Affected the Performance Dramatically
COVID-19 HAS AFFECTED THE PERFORMANCE DRAMATICALLY • Stockmann Group’s strategy implementation developed as planned in the beginning of 2020. • Group sales in January–February were on a healthy level, but after the first week of March, the coronavirus changed the situation. The decline in customer v
Slide 4: Stockmann Group in Q3 2020
STOCKMANN GROUP IN Q3 2020 • Stockmann Group Group’s gross margin – Revenue EUR 207.6 million, down by 6.8% in comparable currency rates 57.4% (56.4) – Gross margin increased in Stockmann but declined in Lindex – Adjusted operating result EUR 13.9 million (5.4) – Cash amounted to EUR 132 million Gro
Slide 5: Stockmann Division
STOCKMANN DIVISION
Slide 6: Stockmann Division, Performance in Q3 2020
STOCKMANN DIVISION, PERFORMANCE IN Q3 2020 • Revenue EUR 61.6 million (77.7) QUARTERLY REVENUE – Revenue was down by 20.7% EUR mill. – Sales declined due to the ongoing coronavirus situation 150 – Growth in the online store 111.0% – Share of online sales was 7.1% for the quarter (2.7) 100 • Gross ma
Slide 7: Stockmann Division, Highlights in Q3 2020
STOCKMANN DIVISION, HIGHLIGHTS IN Q3 2020 • Visitor trend started to recover in Q3 – Coronavirus is still the main reason for the decline in sales • Stockmann’s Crazy Days campaign was held as an extended, 12 days long online campaign – The campaign was held from 30 September to 11 October 2020 – Th
Slide 8: Stockmann Division Way Forward
STOCKMANN DIVISION WAY FORWARD • Stockmann’s new webstore was successfully launched in October – A new platform enables furhter development – The webstore is developed together with the customers • The organisation is preparing to open the Christmas season – Christmas shop was opened on 23 October –
Slide 9: Stockmann's Updated Customer Centric Strategy
STOCKMANN’S UPDATED CUSTOMER CENTRIC STRATEGY OUR FIVE MUST WIN BATTLES 1 2 3 4 5 CUSTOMER NUMBER 1 GROUNDBREAKING STOCKMANN FINANCIAL RELATIONSHIP INSPIRATION OMNICHANNEL UNITED SUSTAINABILITY We aim to class leading We will be number We are developing Everyone is aiming We are building customer re
Slide 10: Stockmann's Updated Customer Centric Strategy: Strategic Goals
STOCKMANN’S UPDATED CUSTOMER CENTRIC STRATEGY 5 1. Improve profitability and capital allocation 2. Re-negotiate commercial footprint FINANCIAL SUSTAINABILITY 3. Improve focus on selected customer groups to increase full priced revenue Strategic goals 4. Drive growth in digital business 5. Improve co
Slide 11: Lindex
LINDEX Susanne Ehnbåge Lindex CEO
Slide 12: Lindex, Financial Performance in Q3 2020
LINDEX, FINANCIAL PERFORMANCE IN Q3 2020 • Revenue EUR 146.0 million (147.6) QUARTERLY REVENUE – Revenue down by 1.1% or down by 0.8% in comparable currency rates EUR mill. – Growth in online sales was 103.5% 200 – Share of online sales was 13.2% (6.4) 150 • Gross margin decreased to 60.8% (61.9) 10
Slide 13: Lindex, Highlights in Q3 2020
LINDEX, HIGHLIGHTS IN Q3 2020 • Focused on meeting the strong digital growth – Adjusting quickly to meet our customer’s expectations – Doubled the digital sales and even tripled for some markets – Launched on Zalando • Initiated a cost reduction program to future-proof Lindex • Exploring new circula
Slide 14: Lindex Way Forward
LINDEX WAY FORWARD • Continued development and actions enabling a strong performance and resilient Lindex • Implementing the cost reduction program – Adapt our business to meet the changing customer behavior and further strengthen our digital approach – Securing a profitable store portfolio • More t
Slide 15: Stockmann Group
STOCKMANN GROUP Pekka Vähähyyppä CFO
Slide 16: Group, Financial Performance in Q3 2020
STOCKMANN GROUP, FINANCIAL PERFORMANCE IN Q3 2020 • Revenue EUR 207.6 million (225.3) QUARTERLY REVENUE – Down by 6.8% in comparable currency rates EUR mill. • Gross margin 57.4% (56.4) 300 – Gross margin up in Stockmann but down in Lindex 200 • Operating costs down by EUR 14.9 million 100 • Operati
Slide 17: Group, Interest-Bearing Net Debt
STOCKMANN GROUP, INTEREST-BEARING NET DEBT EUR mill. Divestment of the 900 Book House 801.8 800 Divestment Long-term of Nevsky credit 700 Centre facilities 600 renegotiated 500 400 300 200 100 0 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020 Excl. Excl. Excl.
Slide 18: Key Figures
KEY FIGURES 7-9/2020 7-9/2019 1-9/2020 1-9/2019 1-12/2019 Equity ratio % 35.8 36.3 38.1 - Excluding IFRS 16 45.6 48.8 51.2 Net gearing % 104.4 125.8 112.4 - Excluding IFRS 16 47.5 58.8 48.4 Operating result EUR mill. 11.7 2.1 -21.9 -9.1 13.3 Net financial items EUR mill. -9.9 -13.1 -29.4 -40.4 -52.7
Slide 19: Outlook and Guidance for 2020
OUTLOOK AND GUIDANCE FOR 2020 • Outlook for 2020: Outbreak of the global coronavirus has caused significant changes in the operating environment of the Stockmann Group, with extreme decline in customer volumes and cash flow. The uncertainties in the global economy are expected to remain in 2020 and
Slide 20: Q&A, Further Information
Q&A Further information stockmanngroup.com [email protected] STOCKMANN 30.10.2020 20