odd molly q4 2017...retail •shops run by odd molly •stand-alone stores, shopping malls,...

ODD MOLLY Q4 2017Anna Attemark, CEO

Johanna Palm, CFO

1

AGENDAI. Intro

II. Q4

III. Full year

IV. Going forward

RETAIL IS CHANGING

…AND SO ARE WE

Design driven

100% wholesale

Deliveries 4 times / year

10% online selling 2012

✓ Customer focus

✓ 50% retail / 50% wholesale

✓ News every week

✓ 40% online selling 2017

DEVELOPMENT OVER TIME

Sales 2017

MSEK

432MSEK

Adjusted

Op. Margin 2017

0.3MSEK

-40,0

-20,0

0,0

20,0

40,0

60,0

80,0

0,0

50,0

100,0

150,0

200,0

250,0

300,0

350,0

400,0

450,0

500,0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Sales Operating profit

INTRODUCTION

FOURTH QUARTER 2017

6

Q4 2017 OPERATIONAL HIGHLIGHTS

• Market undergoing big transformation – requires adjustments

• Quarter marked by discounted sales periods

• Mid-season sales October

• Black Friday in November all time high

• End-of-year sales from 25 December

• E-commerce continue to drive growth

• CEO announced resignation and deputy CEO appointed as successor – shift latest August 2018

RETAIL

+5%

+1%

FINANCIALS

WHOLESALE

Q4 2017 FINANCIALS IN BRIEF

• Total operating revenue SEK 89.6 million (86.5)

• Gross profit margin 51.6 (60.0) impacted by sales periods

• Operating profit SEK -11.1 million (-0.3),

• Operating margin -12.4 percent (-0.3)

• Net profit SEK -9.2 million (0.8)

• EPS SEK -1.60 (0.14)

SALES GROWTH

+4%

51.6%

FINANCIALS

GROSS MARGIN

JANUARY – DECEMBER 2017 FINANCIALS IN BRIEF

• Total operating revenue SEK 432.1 million (423.2)

• Gross profit margin 53.9 percent (55.6)

• Operating profit SEK -4.5 million (24.5)

• SEK 0.3 million before one-off costs

• Operating margin -1.0 percent (5.8)

• Net profit SEK -6.3 million (17.7)

• EPS SEK -1.09 (3.08)

• Cash flow from operating activities SEK -0.5 million (6.6)

• Investments SEK 4.3 million (22.0)

• Board proposes no dividend for 2017

SALES GROWTH

+2%

GROSS MARGIN

53.9%

FINANCIALS

-12,0

-10,0

-8,0

-6,0

-4,0

-2,0

0,0

2,0

4,0

6,0

8,0

Operating

profit

Adjustments Finance net

and taxes

Changes in

working

capital

Cash flow

from

operating

activities

Investments Dividend Cash flow

Cash Flow Jan-Dec 2017

CASH FLOW JANUARY-DECEMBER 2017

FINANCIALS

MSEKCash Flow Jan-Dec Year-over-Year

Comparison

Cash flow from operating activities Jan-Dec 2016 6,6

Lower operating profit -29,0

Adjustments -0,5

Finance net and taxes -0,6

Change in inventory +0,0

Change in receivables +25,4

Change in current liabilities -2,4

-7,2

Cash flow from operating activities Jan-Dec 2017 -0,5

QUARTERLY DEVELOPMENT

0

50 000

100 000

150 000

Q1 Q2 Q3 Q4

Sales by Quarter

2014 2015 2016 2017

-15 000

-5 000

5 000

15 000

25 000

Q1 Q2 Q3 Q4

EBIT per quarter

2014 2015 2016 2017

0

100 000

200 000

300 000

400 000

500 000

Q4-13 Q4-14 Q4-15 Q4-16 Q4-17

LTM sales

-40 000

-20 000

0

20 000

40 000

Q4-13 Q4-14 Q4-15 Q4-16 Q4-17

LTM EBIT

FINANCIALS

FINANCIAL TARGETS – JANUARY-DECEMBER 2017

FINANCIALS

20%

40%

12%

ANNUAL AVERAGE GROWTH RATE EXCEEDING 20 PERCENT IN COMING YEARS

OPERATING MARGIN OF OVER 12 PERCENT OVER A BUSINESS CYCLE

EQUITY/ASSET RATIO AT LEAST 40 PERCENT OVER TIME

2%

50%

-1,0%

OUR SEGMENTS –RETAIL AND WHOLESALE

AN INCREASED SHARE OF RETAIL OVER TIME

Wholesale

2012

Full Year 2017

Wholesale

Retail

incl. oddmolly.com

Retail

SEGMENTS

• Clear shift in consumer behavior

• Market - campaign driven

• E-commerce growth driver

SALES SHIFT ONLINE

SEGMENTS

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Total sales split

Brick and mortar channels Online channels

RETAIL

• Shops run by Odd Molly

• Stand-alone stores, shopping malls, shop-in-shops in department stores

• Sweden, Norway, Finland

• Web shop

• Sale in some 40 countries

SEGMENTS

51%49%

2017 Sales

Retail Wholesale

Oct-Dec Oct-Dec Full year Full year

TSEK

2017 2016 2017 2016

Sales 48,762 46,223 221,150 195,142

Operating profit 3,966 10,077 30,972 42,717

Operating margin, % 8.1 21.8 14.0 21.9

WHOLESALE

• Reseller (shops and web shops)

• Some 30 countries

• Shop-in-shops with resellers

• Stores operated by resellers/partners

SEGMENTS

51%49%

2017 Sales

Retail Wholesale

Oct-Dec Oct-Dec Full year Full year

TSEK2017 2016 2017 2016

Sales 40,797 40,235 210,968 228,022

Operating profit 3,123 7,467 34,458 53,435

Operating margin, % 7.7 18.6 16.3 23.4

INTERNATIONAL EXPANSION AND DIGITAL FOCUS

• Increased focus on reaching new customers

• Online sales - no boundaries

• New agents in Germany, France and Austria

• Covering omni-channel resellers

• New representation in Great Britain

• Profitability and cost review throughout organisation

STRATEGY

OUR ASSORTMENT STRATEGY

ASSORTMENT :

NEWS

• Many deliveries

• Small clearcollections

RIGHT GARMENT IN

RIGHT TIME

• Maximumsellthrough

BALANCE

• Fashiontriangle

• Tops/bottoms

• Simple/decorated

• Productgroups

SELLINGFOCUS

• Selling

• Inviting

PRICE = WITHINREACH

• 85% <2000

• 95% ”within reach”

CUSTOMERFOCUS

• Bought lastseason?

• Want thisseason?

SOLID PLATFORM

COLLECTION STRATEGY –FANTASTIC CUSTOMER

OFFER

FOCUSED EXPANSION –CLEAR CONCEPT THAT IS

SUCCESSFUL IN NEW MARKETS

OMNI-CHANNEL OFFERING – CONCEPT THAT

FITS ALL CHANNELS

SALES SHIFT ONLINE

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Total sales split

Brick and mortar channels Online channels

RETAILL IS

CHANGING…

AND SO ARE WE

THANK YOU!