Q Business review Interim CEO Harri Sivula and CFO Markku Pirskanen

Transcription

1 Q Business review Interim CEO Harri Sivula and CFO Markku Pirskanen

2 Q1 IN BRIEF: REVENUE GREW 10.9%, EBITDA% IMPROVED Revenue totaled EUR million (156.6), 10.9% Like-for-Like revenue grew 6.1%, clearly above the market Comparable gross profit totaled EUR 54.6 million (49.2), 31.4% of revenue (31.4%) Comparable EBITDA totaled EUR 0.8 million (-1.5), 0.5% of revenue (-0.9%) Comparable EBIT totaled EUR -2.8 million (-5.2), -1.6% of revenue (-3.3%) Cash flow from operating activities totaled EUR million (-37.9) Earnings per share was euros (-0.12) TOKMANNI GROUP CORPORATION Q1 2018

3 GOOD MARKET DEVELOPMENT Sales development, % 8,0 6,0 4,0 2,0 0,0-2,0-4,0-6,0-0,7 5,4 2,9 4,5 6,0-1,5-3,7 0,4-2,0 6,3 2,6 1,1 1,4-8,0-10,0-12,0-7,1-7,4-8,1-9,0-11,0 Q1/16 Q2/16 Q3/16 Q4/16 * Q1/17 Q2/17 Q3/17 Q4/17 * Q1/18 Non-grocery market Total market Source: FGTA TOKMANNI GROUP CORPORATION Q1 2018

4 STORE NETWORK DEVELOPMENT At the end of the first quarter, Tokmanni had 175 stores across Finland During the first quarter 2018, Tokmanni enlarged two of its stores the selling space of the Raahe and Pieksamäki stores increased by approximately 1,600 square meters In 2018, Tokmanni will invest more heavily in the maintenance of our store network than in the previous years among others Tokmanni s largest store in Joensuu is undergoing a large refurbishment The fresh grocery stores are also being refurbished. Tokmanni has 12 fresh grocery stores around Finland According to Tokmanni s definition a store is considered a new or relocated store in its opening year and in the following calendar year. On average a new store is profitable in approximately 12 months and reaches full capacity in approximately 24 months. Store amount Selling space at end of Schedule change (approx.) period 2017 Total Q Q Q Q Total TOKMANNI GROUP CORPORATION Q1 2018

5 OTHER OPERATIONAL DEVELOPMENTS The online store was moved to a new platform and increasing the online assortment started The goal is to progressively increase the number of products online significantly Tokmanni will continue to actively develop its digital services Tokmanni continued to develop its marketing and advertising sharpening its direct advertising increasing its store-specific advertising in social media focusing more strongly on the marketing and advertising of its own brands 5

6 Financial development Q1/18 6

7 REVENUE GREW 10.9%, LIKE-FOR-LIKE GROWTH 6.1% Revenue M % -3.8% Like-for-Like revenue grew strongly, 6.1%: focused on reinforcing our strong discounter position and fortifying customer trust timing of Easter supported growth comparable quarter 2017 weak Amount of customer visits grew 6.9% and average basket size 3.8% Q1/16 Q1/17 Q1/18 Like-for-Like Revenue New Store Revenue 7

8 Q1/18 GROSS MARGIN IMPROVED 10.8%, MARGIN AT LAST YEAR S LEVEL Sales mix and Easter impacted ,0 % ,1 % 34,9 % 34,7 % 35,1 % 34,1 % 33,8 % 34,6 % 35,0 % 34,0 % 33,0 % ,5 31,4 % 86,1 31,4 % 32,0 % ,5 67,1 64,8 49,2 66,8 66,0 54,6 31,0 % 10 30,0 % 0 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 29,0 % Comparable Gross profit Comparable Gross Margin,% 8

9 RELATIVE OPERATING EXPENSES DECREASED 70,0 60,0 50,0 32,2 % 27,4 % 25,4 % 24,0 % 32,9 % 28,6 % 26,0 % 23,6 % 35,0 % 31,5 % 30,0 % 25,0 % 40,0 20,0 % 30,0 20,0 51,0 52,7 47,6 57,2 51,6 56,0 50,7 58,7 54,7 15,0 % 10,0 % 10,0 5,0 % 0,0 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Comparable operating expenses Comparable operating expenses, % 0,0 % 9

10 Q1/18 COMPARABLE EBITDA IMPROVED Y-O-Y 35,0 11,5 % 11,5 % 12,0 % 30,0 25,0 20,0 15,0 10,0 5,0 0,0-5,0 9,7 % 7,9 % 8,3 % 5,9 % 27,3 28,6 1,4 % 15,2 18,1 16,2 11,6 0,5 % 2,2-0,9 % 0,8 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17-1,5 Q2/17 Q3/17 Q4/17 Q1/18 Comparable EBITDA Comparable EBITDA, % 10,0 % 8,0 % 6,0 % 4,0 % 2,0 % 0,0 % -2,0 % 10

11 BALANCE SHEET, FINANCING AND CASH FLOW Tokmanni s inventories totaled EUR million (173.1) at the end of the first quarter The growth of the store network was the primary reason for inventory growth Interest bearing debt totaling EUR million (172.6) The growth in interest bearing debt was due to the timing of the dividend payment Cash flow from operating activities totaled EUR million (-37.9) At the end of March 2018, cash and cash equivalents amounted to EUR 13.8 million (17.2) Net debt/comparable EBITDA was 3.2 (2.7) 11

12 CAPITAL EXPENDITURE Net capital expenditure for the period January-March 2018 totaled EUR 1.4 million (1.5) In our investment program for 2018, we will invest more heavily in the maintenance of our store network than in the previous years, especially in updating our grocery stores, and in Tokmanni s digital services Capital expenditure related to new store openings will be lower than in the previous Capital expenditure is expected to be at the level of depreciation in TOKMANNI GROUP CORPORATION Q1 2018

13 TOKMANNI S SHORT TERM OUTLOOK 2018 UNCHANGED Tokmanni s expects good revenue growth for 2018 based on the revenue from new stores opened in 2017 and stores to be opened in 2018 and low single digit Like-for Like revenue growth. As of 2018 Tokmanni s online revenue is included in the Group s Like-for-Like revenue Group profitability (comparable EBITDA%) is expected to improve from the previous year TOKMANNI GROUP CORPORATION Q1 2018

14 For the spring and summer seasons Tokmanni offers plenty of new products, including Branded and Private Label products related to barbecuing, gardening and home improvement! LIITTEET 14

15 APPENDIX 2018 publication: January-June 2018 Half Year Financial review, August 9th 2018 January-September 2018 Business review, October 24th 2018 IR contact: 15

16 Financial targets and dividend policy Long-term financial targets Historical performance 1. Like-for-Like revenue growth Tokmanni Group s long-term target is to achieve low single digit like-for-like net sales growth assuming current market conditions Low single digit Tokmanni -0.6% -0.1% -1.3% Market -1.7% 1.1% -0.5% Non-grocery market -5.6% -1.4% -6.1% 2. New stores Tokmanni Group s target is to, on average, expand by approx. 12,000 square meters of new store space annually, consisting of c. 5 net new stores, expansions and relocations c. 5 p.a. 12,000 sqm New stores Closed stores Store size reduction Relocations Sqm Comparable EBITDA margin (%) Tokmanni Group s long-term target is to progressively expand to a comparable EBITDA margin of approximately 10% driven by improving gross margin levels and stable operating expenses in relative terms Progressively reaching ~10% Tokmanni 7.7% 8.1% 6.9% 4. Net Debt / Comparable EBITDA Tokmanni Group intends to maintain an efficient long-term capital structure, defined as net debt in relation to comparable EBITDA of below 2.0x <2x ND/ comp. EBITDA x 1.8x 2.4x 5. Dividend policy Tokmanni targets a dividend payout ratio of approximately 70 percent of the net result of Tokmanni subject to capital structure, financial condition, general economic and business conditions and future prospects c. 70% Board proposal for financial period ending : 0.41 euro per share 16

17 Key figures 1-3/ /2017 Change% 1-12/2017 Revenue, MEUR % Like-for-like revenue development, % Number of customer visits, M % 46.4 Gross profit, MEUR % Gross margin, % Comparable gross profit, MEUR % Comparable gross margin, % Operating expenses, MEUR % Comparable operating expenses, MEUR % EBITDA, MEUR % 53.1 EBITDA, % Comparable EBITDA, MEUR % 55.0 Comparable EBITDA, % Operating profit (EBIT), MEUR % 38.8 Operating profit margin EBIT, % Comparable EBIT, MEUR % 40.6 Comparable EBIT, % Net financial items, MEUR % -5.8 Net capital expenditure, MEUR % 8.1 Net debt / comparable EBITDA * Net cash from operating activities, MEUR Return on capital employed, % Return on equity, % Number of shares, weighted average during the financial period (thousands) Earnings per share (EUR/share) Personnel at the end of the period Personnel on average in the period * Rolling 12 months comparable EBITDA 17

18 Tokmanni Oy Adjustments affecting comparability MEUR 1-3/ / /2017 Gross profit Changes in fair value of currency derivatives Comparable Gross Profit Operating expenses Changes in fair value of electricity derivatives Loss on real estate sales Comparable operating expenses EBITDA Operating profit (EBIT) Changes in fair value of currency derivatives Changes in fair value of electricity derivatives Loss on real estate sales Comparable EBITDA Comparable operating profit (adj. EBIT)

19 THANK YOU! 19