Company presentation February 2020 First choice for anyone who - - PowerPoint PPT Presentation

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Company presentation February 2020 First choice for anyone who - - PowerPoint PPT Presentation

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Company presentation February 2020 First choice for anyone who wants to shop convenient, smart, big and at low price 3 Retail is changing 1980s 1990s 2000s Today Local stores One-stop shopping, Online retailing is born Omnichannel

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Company presentation

February 2020

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First choice for anyone who wants to shop convenient, smart, big and at low price

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1980s 1990s 2000s Today

Local stores One-stop shopping, larger malls Online retailing is born Omnichannel retail

Retail is changing

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In a world of winners and losers, variety retail is thriving

1 General retailers with wide discount range.

Source: Euromonitor International; see appendix for full presentation

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While online is challenging bricks-and-mortar… Variety retail has grown ~twice the speed of all retail

Online share of retail sales

Percent

Sales growth total vs. variety retail

CAGR 2012-17, constant 14 16 4 12 2 8 6 10 2017 2007 2012 +3.9 p.p. +5.4 p.p. +5.0 p.p. +10.8 p.p. +7.5 p.p. 3% 5.7% 6.5% 2% 4.7% 0.5% 2% 3% 6.5% 3% Variety retail1 Total retail

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Customers Logistics

  • More than 40 years of wholesaler experience
  • Efficient set-up and nationwide reach
  • New modern central warehouse from Q2 2019

Marketing

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Sourcing Stores

  • From more than 30 countries
  • Pan-Nordic agreement with ÖoB and Tokmanni
  • 1 million leaflets in distribution
  • Around 400 000 subscribers to digital newsletter
  • Cost-efficient locations and operations
  • 234 of 249 like-for-like (LFL) stores profitable in 2019
  • Track-record of 15 new or relocated stores p.a.
  • 32 million customer transactions in 2019
  • Widely recognised brand and price position1
1 Mediacom annual market survey

Norway’s #1 discount variety retailer

264

Stores

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Europris – 27 years with growth

7 NOK million 1 000 2 000 3 000 4 000 5 000 6 000 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 25 years of growth Store #250 Listing

  • n

Oslo Børs JV with Tokmanni and opened Shanghai sourcing

  • ffice

Acquired by Nordic Capital Central warehouse

  • pened in

Fredrikstadal Store #150 Acquired by IK Investment Partners Store #100 Founded by Wiggo Erichsen Wholesale agreement with Terje Høili AS

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With a strong brand

Source: Mediacom annual market survey Ranking among wide variety retailers (Biltema, Clas Ohlson, Coop OBS, Europris, Jernia, Jula, Jysk, Nille, Plantasjen, Rusta)

100% #1

Recognition Price perception

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2,7 % 2,3 % 2,4 % 0,9 % 0,8 % 0,5 % 7,0 % 5,4 % 4,1 % 3,1 % 2,2 % 4,4 % 0% 2% 4% 6% 8% 10% 0% 2% 4% 6% 8% 2014 2015 2016 2017 2018 2019 Market Europris Gap

LFL growth (%) % points

Europris LFL growth rate in excess of market growth rate in the period % points

Source: Kvarud analyse, Shopping Centre Index and Europris

4.3 3.1

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1.7 2.2 1.4 3.9

Like-for-like growth above the market

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Track record of above-market growth

1 Europris group figures, excl. IFRS 16 effects 2 Europris chain figures 3 Kvarud Analyse: Norwegian shopping centre index

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Revenue and EBITDA margin1 Total growth for Europris and market2,3

4,3 4,6 5,1 5,4 5,8 13% 14% 13% 12% 12% 11% 2014 2015 2016 2017 2018 2019 Revenue EBITDA margin 9,3% 8,4% 7,7% 6,0% 5,3% 6,4% 2014 2015 2016 2017 2018 2019 Europris Kvarud NOK billion 6,3

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Our strategic focus areas

Strengthen price and cost position Drive customer growth Improve customer experience

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Strengthen price and cost position Drive customer growth Improve customer experience

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Significant economies of scale from Nordic sourcing

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2013 Tokmanni sourcing agreement 2018 Europris acquires 20% of ÖoB 2020 Option to acquire remaining shares in ÖoB

Representing annual sales of NOK 18bn

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Futureproofing distribution

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Strengthen price and cost position Drive customer growth Improve customer experience

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Constant category evaluation and refining

16 Assortment

  • ptimisation

Redesigned packaging Campaign development Revitalised marketing Improved in-store communication In-store

  • ptimisation

Our proven category management tools

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Continuous improvement of seasonal concepts

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  • During the Christmas season, the

product range within seasonal lightening was further improved

  • Assortment for outdoor system lighting

was awarded “best in test” by Norwegian broadcaster TV2

  • Product range is developed and

sourced through the partnership with Tokmanni and ÖoB

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Strengthen price and cost position Drive customer growth Improve customer experience

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Bridging digital opportunities and physical stores

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  • Digital channels are an increasingly important

supplement to the physical store

  • Reach new and younger customer groups
  • Be relevant and build loyalty
  • Take ownership of the customer’s purchase process
  • Stepwise roll-out of cost-effective digital platform and

shift towards omnichannel strategy

  • Online is increasingly driving the whole purchase

process from discovery to delivery

  • Price, selection, delivery, payment, support and service

Europris’ 360⁰ customer vision

OUR CHANNELS

E-COMMERCE ONLINE ADVERTISING CRM CONTENT MARKETING SOCIAL MEDIA PR POSITIVE PRODUCT DIALOGUE STORE CUSTOMER SERVICE SEARCH ENGINE WEB CAMPAIGN LEAFLET

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0,84 1,04 1,25 1,56 2016 2017 2018 2019

10 18 32 42

2016 2017 2018 2019

The online growth experience so far

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  • Seamless and simple offering – the

key success factor

  • New e-commerce platform making

progress, launch in H1 2020

  • Centralised e-commerce mezzanine

picking at new Moss warehouse

  • Significantly improved product range

and service

  • A complimentary source for

revenue growth

  • Complementary to the store offering
  • Europris.no serves as driver for traffic

to physical stores and add-on sales Monthly traffic on Europris.no E-commerce revenue

Click & collect NOK 1 146 Store NOK 203 AVERAGE BASKET VALUE Home delivery NOK 765 NOK million Million visitors

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Drive customer growth by utilising existing store base and new opportunities

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The team at Europris Nordfjordeid

  • Two store relocations in the quarter
  • Nordfjordeid, Sogn og Fjordane
  • Voss, Hordaland
  • Three store expansions in the quarter
  • Vestkanten, Hordaland
  • Elnesvågen, Møre og Romsdal
  • Skien, Telemark
  • Six new stores opened in 2019
  • Five stores in pipeline for 2020 and beyond
  • Two of the stores are subject to local authority planning processes
  • New stores opened in 2018/2019 perform well measured on

a set of strict criteria's

  • Closing of the store at Grini postponed – Awaiting court

decision, case scheduled for 21-23 April

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On the quest to be the best

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The goal is to be the best in all four areas below

Price Concept Value chain and cost efficiency Execution and culture Number 1 in price perception in Norway, the fight for lower prices continues Continuous development, focus on customer need-based flow and distinct shop-in-shop Nordic sourcing, new warehouse and automation of operations to improve further Continue to build on our strong company culture and dedicated employees

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Be the best discount variety retailer in Europe

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Fogra Reklamefoto

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Q&A

Next event: Q1 presentation 23 April 2020