Tokmanni Group Oyj · OMXHEX:TOKMAN
Tokmanni Group Oyj — Q3 2017 Earnings Presentation
20 slides from Tokmanni Group Oyj's earnings presentation, Oct 25, 2017
Slide 1: Q3 2017 Business review
Q3 2017 Business review interim CEO Harri Sivula and CFO Markku Pirskanen
Slide 2: Q3 2017 Highlights – Good Revenue Growth 4.5%
Q3 2017 HIGHLIGHTS – GOOD REVENUE GROWTH 4.5% • Revenue grew 4.5%, EUR 195.4 million (187.0) – Like-for-Like revenue +0.8%, clearly above the market • One new store opened during the quarter • Comparable gross profit EUR 66.0 million (64.8), a comparable gross margin of 33.8% (34.7%) • Comparable EB
Slide 3: Market Challenges Continued
MARKET CHALLENGES CONTINUED Revenue development% 8,0 6,0 6,0 5,4 4,0 3,4 4,5 2,0 2,9 0,3 0,0 0,4 -0,3 -0,7 -2,0 -1,5 -1,4 -1,1 -2,0 -4,0 -3,7 -6,0 -7,1 -7,4 -8,1 -6,7 -8,0 -9,0 -10,0 -11,0 -12,0 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Non-grocery market excl. Anttila* Total market excl. Anttila* N
Slide 4: New stores as growth drivers
New stores as growth drivers 4 25.10.17 TOKMANNI Q3 and January-September 2017 Business Review
Slide 5: New store opened in Helsinki Citycenter shopping center in Q3
New store opened in Helsinki Citycenter shopping center in Q3 5 25.10.17 TOKMANNI Q3 and January-September 2017 Business Review
Slide 6: 6 new stores to be opened in Q4
6 new stores to be opened in Q4 • At the end of the third quarter Tokmanni had 169 stores across Finland • 1 new store opened in the Citycenter shopping center in Helsinki, 7 new and 2 relocated stores opened during the review period 1-9/17 • To date, Tokmanni has signed agreements for 2 new and 2 r
Slide 7: Financial development
FAZER ‘SININEN 320 Keo im. 4,75/pkt LUMENE KASVOJENPUHDIS- TUSTUOTTEET 100-200 mi (25,00-50,00/1, Valikoima vaihtelee myymaildittain. Norm. 6,50-8,50/kpI
Slide 8: Clearly faster than market growth
Clearly faster than market growth Q3 2017 revenue grew 4.5%, LFL 0.8% Revenue M€ +1.9% • New stores drove growth 537.6 547.9 • Positive Like-for-Like sales, +0.8% • The number of baskets grew 4.1% -1.5% +4.5% 187.0 195.4 +0.8% 1-9/16 1-9/17 Q3/16 Q3/17 LFL New stores 8 25.10.17 TOKMANNI Q3 and Janua
Slide 9: Q3/17 sales mix, direct sourcing and PL lower share of sales impacted gross profit
Q3/17 sales mix, direct sourcing and PL lower share of sales impacted gross profit Comparable gross margin Comparable % gross profit M€ 36,0 % 90 35,1 % 35,1 % 34,8 % 34,9 % 80 35,0 % 34,7 % 34,1 % 70 33,8 % 34,0 % 33,6 % 60 33,1 % 32,8 % 33,0 % 50 32,0 % 40 31,4 % 30 31,0 % 20 30,0 % 10 29,0 % 0 Q1
Slide 10: New stores increased opex
New stores increased opex Comparable opex share of sales, % 35,0 % 32,9 % 30,0 % 28,6 % 28,9 % 26,0 % 25,0 % 20,0 % 32,2 % 15,0 % 27,4 % 28,1 % 26,9 % 25,4 % 24,0 % 10,0 % 5,0 % 0,0 % Q1 Q2 Q3 Q4 1-9 1-12 2016 2017 10 25.10.17 TOKMANNI Q3 and January-September 2017 Business Review
Slide 11: Q3 2017 comp. EBITDA 16.2 MEUR, 8.3%
Q3 2017 comp. EBITDA 16.2 MEUR, 8.3% 40 35 35,5 30 25 26,3 20 15 18,1 16,2 10 5 0 1-9/16 1-9/17 Q3/16 Q3/17 Comparable EBITDA, M€ Comparable EBITDA, 6.6% 4.8% 9.7% 8.3% % 11 25.10.17 TOKMANNI Q3 and January-September 2017 Business Review
Slide 12: Balance sheet, financing and cash flow
Balance sheet, financing and cash flow • Interest bearing debt EUR 187.5 million (196.1) • Inventories EUR 189.5 million (169.5). The increase due to – the higher amount of stores in the network – lower than expected sales in the spring as well as – earlier than 2016 inventory build-up for the Chris
Slide 13: Capex
Capex • Net capital expenditure 7-9/2017 EUR 2.3 million (2.4). 1-9/2017 net capex EUR 3.8 million (5.3) – 1-9/17 number includes a repayment of EUR 2.9 million temporary financing related to the construction of the Närpiö store, which was returned when the store was completed • Gross capital expend
Slide 14: Tokmanni's short term outlook unchanged
Tokmanni’s short term outlook unchanged • Tokmanni expects revenue growth for 2017 based on the revenue from new stores opened in 2016 and 2017 • Revenue of like-for-like stores is expected to remain at the level of the previous year • Group profitability (comparableEBITDA%) is expected to decrease
Slide 15: Appendix
Appendix IR contact: Head of IR and Communication Joséphine Mickwitz [email protected] Tel: +358 20 728 6535, +358 400 784 889 [email protected]
Slide 16: Financial targets and dividend policy
Financial targets and dividend policy Long-term financial targets Historical performance 2014 2015 2016 Like-for-Like Tokmanni Group’s long-term target is to achieve low single Low single digit like-for-like net sales growth assuming current market Tokmanni -0,3% -0,6% -0,1% revenue digit conditions
Slide 17: Tokmanni's operations are subject to seasonality
Tokmanni’s operations are subject to seasonality: the second half of the year is generally stronger than the first half Comparable Revenue EBITDA M€ M€ 30,0 300,0 27,3 26,4 24,4 25,0 250,0 20,0 18,1 17,3 17,3 16,2 200,0 15,2 15,0 13,5 12,9 11,6 150,0 10,0 100,0 5,0 2,0 1,8 2,2 - 1,5 50,0 0,0 Q1/14 Q
Slide 18: Key figures
Key figures 7-9/2017 7-9/2016 Change% 1-9/2017 1-9/2016 Change% 1-12/2016 Revenue, MEUR 195.4 187.0 4.5% 547.9 537.6 1.9% 775.8 Like-for-like revenue development, % 0.8 -1.5 -0.1 Number of baskets, M 11.6 11.1 4.1% 33.1 31.9 3.7% 44.7 Gross profit, MEUR 66.2 64.7 2.2% 180.5 184.2 -2.0% 268.4 Gross m
Slide 19: Adjustments affecting comparability
As of the third quarter 2017, Tokmanni has adapted its terminology to market practice by replacing the term “adjusted” with Tokmanni “comparable”. Oy Adjustments affecting comparability MEUR 7-9/2017 7-9/2016 1-9/2017 1-9/2016 1-12/2016 Gross profit 66.2 64.7 180.5 184.2 268.4 Changes in fair value
Slide 20: TOKMANNI Q3 and January-September 2017 Business Review
20 25.10.17 TOKMANNI Q3 and January-September 2017 Business Review