Year-End Report (September 2017 Augusti 2018) Gran Bille Peter - PowerPoint PPT Presentation

Year-End Report (September 2017 – Augusti 2018)

Göran Bille Peter Andersson Acting President & CEO CFO • Highlights Q4 & Full Year • Q4 & Full Year in numbers • Going forward • Questions 2

• Challenges at KappAhl – Price- and campaign strategies not sufficient during Q1-Q2 – Reformed supply chain not optimal. – Range to narrow • Market in transition – heavy competition 3

• Norway & Poland increased their contribution • Continued increase of Kids • Expanding store network – KappAhl 347 stores • Opened 4 / closed 4 / refurbished 23 – Newbie Store 22 stores • Opened 11 / closed 1 store • Successful expansion UK 4

• Intense development work with digital solutions – Omni-services evolves well – E-commerce increase 38% – Over 50% Click&Collect – Shop Online in Store increase – Launch of payment via Klarna in Store – Customer Experience Support increases customer service & contributes to sales 5

• Low summer stock already at beginning of quarter • Good season start Kids • To narrow offer Woman • One-offs affected negatively 6

• Sustainability labelled 57 (53)% • Implementation of scorecard for sustainable design • Members of the Sustainable Apparel Coalition • One Bag Habit reduced use of bags by 70% 7

8

MSEK Q4 ISO ∆ Sales 2016/2017 1 248 Like-for-like -20 -1,6% Opened / Closed -24 -1,9% FX-effects 35 2,8% Sales 2017/2018 1 239 -0,7% MSEK Q4 ACC ∆ Sales 2016/2017 4 916 Like-for-like -97 -2,0% Opened / Closed -97 -2,0% FX-effects 39 0,8% Sales 2017/2018 4 760 -3,2% 9

Q4 ISO Q4 ACC 17/18 16/17 ∆ 17/18 16/17 ∆ Sales (MSEK) 1 239 1 248 -0,7% 4 760 4 916 -3,2% Gross Profit (MSEK) 733 757 -3,2% 2 942 3 056 -3,7% Gross Margin (%) 59,2 60,7 -1,5 61,8 62,2 -0,4 Operating Profit (MSEK) 66 139 -52,5% 282 448 -37,0% Operating margin (%) 5,3 11,1 -5,9 5,9 9,1 -3,3 Operating Cash Flow (MSEK) -47 61 -108 294 572 -278 Equity ratio (%) 57,6 67,4 Growth (rolling 12 months %) -0,7 0,0 Inventory (MSEK) 764 726 5,2% 10

400 300 200 100 0 5 000 54% 4 750 53% 4 500 52% 4 250 51% 4 000 50% .15/16 Q4 .16/17 Q4 .17/18 Q4 Sales (r12) OH % 11

Operating Sales margin (MSEK) 5 000 10% 4 800 8% 4 600 6% 4 400 4% 4 200 2% 4 000 0% Q4 14/15 Q1 Q2 Q3 Q4 15/16 Q1 Q2 Q3 Q4 16/17 Q1 Q2 Q3 Q4 17/18 Q1 Q2 Q3 Q4 9

Activities for good quality in sales • Attractive brands & range – Expansion in Poland – Continued expansion for Newbie Store • Well-coordinated campaigns • Well-managed supply chain • Flexible stock levels • Cost control 13

14

These materials may contain forward-looking statements. If so, such statements are based on our current expectations and are subject to risks and uncertainties that could negatively affect our business. Please read our earnings report and our most recent annual report for a better understanding of these risks and uncertainties. 15