Finlands Leading General Discount Retailer Tokmanni Investor - - PowerPoint PPT Presentation

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Finlands Leading General Discount Retailer Tokmanni Investor - - PowerPoint PPT Presentation

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Finlands Leading General Discount Retailer Tokmanni Investor Presentation September 2020 Tokmanni is no. 1 general discount retailer in Finland > 1 million Length 1 157 km or 719 miles 190 customer visits stores in Finland per week

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Finland’s Leading General Discount Retailer

Tokmanni Investor Presentation September 2020

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Tokmanni is no. 1 general discount retailer in Finland

Tokmanni IR Presentation 2020

>1 million

customer visits per week

190

stores in Finland

944 MEUR

revenue 2019

3,900

employees

4.9.2020 2

Width 542 km or 337 miles Length 1 157 km or 719 miles

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SLIDE 3

4.9.2020 Tokmanni IR Presentation 2020 3

Current financial status 1-6/2020

Revenue +13.3% LFL revenue +11.8%

LFL customer visits +2.2%

Comparable EBIT margin 6.4% (3.9%) Cash flow from

  • perating activities

MEUR 55.3 (9.5) Comparable gross margin 33.5% (33.4%) EPS EUR 0.34 (0.14)

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Tokmanni’s and non-grocery market development in Finland, %

  • 1,1

1,9 4,5 4,4 10,9 11,0 7,8 8,0 8,3 10,2 9,9 6,1 5,8 19,2

  • 9,0
  • 7,4
  • 11,0

1,1 1,4 1,6

  • 1,9
  • 2,9

4,0 0,6 7,6

  • 0,1
  • 7,0

3,6

  • 12,0
  • 8,0
  • 4,0

0,0 4,0 8,0 12,0 16,0 20,0 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Tokmanni Non-grocery market

4.9.2020 Tokmanni IR Presentation 2020 4

Sales development, %

The figures include the following member companies of FGTA: department store and hypermarket chains K-Citymarket, Prisma, Sokos, Tokmanni and Minimani. Source: The Finnish Grocery Trade Association.

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  • Low prices
  • Interesting and wide product selection
  • Service-minded and motivated employees
  • Nationwide store network combined with online store
  • Efficient and agile business model

Tokmanni’s competitive advantages

4.9.2020 Tokmanni IR Presentation 2020 5

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Tokmanni’s sources of competitive advantages

  • Emphasis on customers, awareness of prices and costs
  • Professional purchasing
  • Best place to work in retail
  • Easy and quick to reach
  • Cost-efficient supply chain and support functions

4.9.2020 Tokmanni IR Presentation 2020 6

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Tokmanni’s customer base, family households being slightly overemphasized

4.9.2020 Tokmanni IR Presentation 2020 7

Note: Tokmanni’s customers = Customers that frequently visit Tokmanni Sources: TNS Mind 2018

Adult singles 17% 43% Young couples Adult households 6% Family households 17% Pensioners 40% 16% Young singles 16% 12% 13% 7% 5% 7% Whole population Tokmanni’s customers

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We are building destination categories

Tokmanni IR Presentation 2020

  • No. 1

in customer minds, customer reach

  • r

sales

Home decoration and kitchen Health, beauty and well- being Clothing Garden Cleaning and storage Home improve- ment

We will significantly increase the sales of private labels

4.9.2020 8

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Sources of growth

  • Destination categories
  • Online store
  • Store network

Tokmanni’s strategic actions

Sources of profitability

  • Private labels
  • Sourcing
  • Supply chain and

inventories Sources of success

  • Employees
  • Customers
  • Sustainability

€

4.9.2020 Tokmanni IR Presentation 2020 9

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  • Price level competitive with Amazon
  • Reliable service and support for Finnish customers
  • Nationwide store network in Finland
  • Wider assortment in online under construction

4.9.2020 Tokmanni IR Presentation 2020 10

Tokmanni’s online business

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SLIDE 11

Financials

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Tokmanni’s revenue development – last 10 years

634 654 690 711 732 755 776 797 870 944

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

4.9.2020 Tokmanni IR Presentation 2020 12

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1-6/2020: Comparable EBIT development

391,3 428,0 484,9 11,1 16,5 30,9

0,0 5,0 10,0 15,0 20,0 25,0 30,0 35,0

1-6/2018 1-6/2019 1-6/2020

0,0 50,0 100,0 150,0 200,0 250,0 300,0 350,0 400,0 450,0 500,0

Revenue Comparable EBIT

Comparable EBIT, M€ Revenue, M€

4.9.2020 13 Tokmanni IR Presentation 2020

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Target of comparable EBIT margin is about 9%

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0,5 %

EBIT-% 2019 Operating expenses improvement potential EBIT-% 2018

6,0 %

Gross margin improvement potential

1,0 %

Gross margin improvement

9,0 %

Operating expenses improvement

0,5-1,5 % 0,5 -1,0 %

EBIT-% target

7,5 % Key actions taken

Increasing gross margin

  • Direct import and private labels
  • Batch sales
  • Shrinkage and inventory management

Improving efficiency

  • Cost control
  • Supply chain
  • Real estate rentals and maintenance
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SLIDE 15

Solid dividend track-record

  • Dividend policy: Tokmanni’s aim is to distribute around 70% of net income for each financial year in

dividends, depending on the capital structure, financial position, general economic and business conditions and future prospects.

4.9.2020 Tokmanni IR Presentation 2020 15

0,51 0,41 0,50 0,62

2016 2017 2018 2019

Dividend, EUR

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Tokmanni’s long-term financial targets

Stable and profitable long-term growth

Tokmanni IR Presentation 2020

Low single digit growth Like-for-Like revenue growth Target of over 200 stores New about 5 p.a. 12 000 sqm annually Stores Gradually increase to ~9% Comparable EBIT margin Net Debt / Comparable EBITDA In long-term below 3.2x

4.9.2020 16

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tokmanni.fi tokmanni.fi

Thank you!

ir@tokmanni.fi