Tokmanni Group Oyj · OMXHEX:TOKMAN
Tokmanni Group Oyj — Q1 2017 Earnings Presentation
16 slides from Tokmanni Group Oyj's earnings presentation, April 2017
Slide 1: January-March 2017 Business review
January-March 2017 Business review CEO Heikki Väänänen & CFO Sixten Hjort
Slide 2: Market continued to be weak at the beginning of 2017
Despite improvement in consumer confidence and other positive signals the market continued to be weak at the beginning of 2017 Sales development% 8,0 6,0 6,0 5,4 4,5 4,0 2,9 2,0 0,0 -0,7 -1,5 -2,0 -4,0 -3,7 -6,0 -7,1 -8,0 -8,1 -9,0 -10,0 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Non-grocery market Total market
Slide 3: Q1/2017 highlights – slow quarter, guidance unchanged
Q1/2017 highlights– slow quarter, guidance unchanged • Number of baskets increased by 3.9% • Revenue EUR 156.6 million (158.3), -1.1% • Like-for-Like revenue decreased by -3.8% – calendar impact more than -2% – mild winter impact more than -1% – shelf availability issues that are now under control •
Slide 4: 2017 is a busy new store year
2017 is a busy new store year Q1/2017 2017 • 163 stores across Finland at the end of the first quarter. • Tokmanni will open at least 12 net new stores and 2 • During the first quarter 2017, Tokmanni continued to relocated stores develop its store network and opened a new store in • Selling space wi
Slide 5: Operations are subject to seasonality
Tokmanni’s operations are subject to seasonality which leads to quarterly fluctuations in revenue and profitability Adj. Revenue EBITDA M€ M€ 30,0 300,0 27,3 26,4 24,4 25,0 250,0 20,0 18,1 17,3 17,3 200,0 15,2 15,0 13,5 12,9 150,0 10,0 100,0 5,0 2,0 1,8 2,2 - 1,5 50,0 0,0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/
Slide 6: Q1 revenue decreased -1.1%
Q1 revenue decreased -1.1% Revenue • Like-for-Like revenue decreased -3.8%: M€ • Calendar variation impact > -2% 200,0 • Mild winter season >-1% • Tokmanni continues to develop its assortment to be less weather dependent. -1.1% 156.6 • The number of baskets grew 3.9% to 158.3 9.8 million (9.4) -3.8%
Slide 7: Aggressive campaigning impacted gross profit
Aggressive campaigning impacted gross profit Adj. gross profit M€ 54,0 • The unfavorable development of the 52,0 gross margin was mainly attributable 52,5 +4.0%% to aggressive campaigning especially 50,0 in groceries and tecnochemicals 48,0 49,2 • Tokmanni has taken actions to bring 46,0 gross margi
Slide 8: Adjusted EBITDA EUR -1.5 million
Adjusted EBITDA EUR -1.5 million Adj. EBITDA M€ 2,5 • The unfavorable development of the 2,0 2,2 gross margin directly reflected in 1,5 adjusted EBITDA 1,0 • Slight increase in costs due to new 0,5 store openings 0,0 • Tight cost control continues Q1/16 Q1/17 -0,5 -1,0 -1,5 -1,5 -2,0 Adj. EBITDA Adj
Slide 9: Balance sheet, financing and cash flow
Balance sheet, financing and cash flow • Interest bearing debt EUR 172.6 million (300.3) • Net debt/adjusted EBITDA 2.6 (3.0), the weakening from the previous quarter is due to the seasonality of the operations • Cash flow from operating activities totaled EUR -37.9 million (-15.3) 9 Tokmanni Busine
Slide 10: Capital expenditure
Capital expenditure • Capital expenditure for the period January-March 2017 totaled EUR 2.3 million (1.4), which includes EUR 0.2 million of unfinished construction work relating to the Närpiö store. The store property will be sold to the real estate investor in the second quarter and the tied-up ca
Slide 11: Market outlook unchanged
Market outlook unchanged • The Finnish Finance Ministry predicts that GDP will grow by 0.9% in 2017 and 1.0% in 2018, but that the growth of private consumption will temporarily slowdown in 2017 as among others a result of accelerating inflation, wage development due to the Competitive Pact (KiKy) a
Slide 12: 2017 outlook unchanged
2017 outlook unchanged • Tokmanni’s expects good revenue growth for 2017 based on the revenue from new stores opened in 2016 and 2017 and low single digit Like-for Like revenue growth. • Group profitability (adjusted EBITDA%) is expected to improve from the previous year. 12 Tokmanni Business Review
Slide 13: CEO Heikki Väänänen to leave the company by end of September
Tokmanni Group’s CEO Heikki Väänänen to leave the company by the end of September • Tokmanni’s CEO Heikki Väänänen has decided to leave the company by 30 September 2017 • Tokmanni has initiated the successor recruitment process 13 Tokmanni Liiketoimintakatsaus tammi-maaliskuu 2017
Slide 14: Appendix: IR contacts and calendar
IR contacts: Head of IR Joséphine Mickwitz [email protected] tel: +358 20 728 6535 [email protected] IR CALENDAR Appendix 9 August January-June 2017 interim report October 25 January-September 2017 Business review
Slide 15: Adjustments affecting comparability
Adjustments affecting comparability Adjustments affecting comparability MEUR 1-3/2017 1-3/2016 1-12/2016 Gross profit 48.7 51.7 268.4 Changes in fair value of currency derivatives 0.6 0.7 -0.5 Adjusted Gross Profit 49.2 52.5 267.9 Operating expenses -53.1 -51.4 -207.4 Changes in fair value of electr
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