4 cmd 2016 rimi baltic breakout final - ica gruppen...• convert 17 hypermarkets (hm) and 5...

15.12.2016

R I M I B A LT I CI N A S T R O N G P O S I T I O N F O R F U RT H E R

G R O W T H

EDGAR SESEMANN, CEO15 DECEMBER 2016

GROWING SALES, EBIT AND RETURNS SINCE 2008

9,3%

-2,4%

1,1%

3,9%5,2%

8,9%

12,1%

14,7% 14,8%

2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3 R12

ROCE

CAGR 4.5%

Development driven by:• New stores• Store upgrades• Improved logistics efficiency• Improved store operations• Improved purchase prices• Improved promotional efficiency

SOURCE: internal data

28

-6

5

2330

3542 44

52

-300

0

300

600

900

1 200

1 500

2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3 R12

MEUR

Net sales EBIT excl non-recurring items

..AND WITH ABOVE MARKET SALES GROWTH OVER LAST 12 QUARTERS

SOURCE: internal data; Government statistics

-2,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2012 2013 2014 2015 2016Food Market Rimi retail sales Rimi comparable retail sales Market Inflation

Percent (value)

*Retail sale in non-specialised stores with food, beverages or tobacco predominating

STRONG# 2 POSITION IN THE BALTIC REGION…

Overall market share 15% in 2015 and growing YTD 2016

SOURCE: government statistics; company annual reports

Maxima; 31%

Rimi; 15%

IKI; 7%Norfa; 5%

Coop; 6%

Selver; 4%

Prisma; 3%

Mego; 1%

Narvesen; 1%

Other; 27%

…COMPETING IN THREE DIFFERENT MARKETS

SOURCE: 2015 government statistics; company annual reports

EstoniaCompetitive market with 5 equallybig retailers

LatviaRimi current #1 after gainingmarket shares in 2016

LithuaniaRimi #4, market share growth in 2016. Lidl entry in 2016 has increased competitive pressure

Coop; 22%

Maxima; 19%

Rimi; 16%

Selver; 16%

Prisma; 9%

Other; 18%Maxima;

27%

Rimi; 27%

Top!; 9%

Mego; 5%

Elvi; 5%

Narvesen; 2%

Prisma; 2%

Other; 24% Maxima; 40%

IKI; 16%Norfa; 11%

Rimi; 7%

Prisma; 1%

Narvesen; 1%

Other; 25%

STRONG CUSTOMER SATISFACTION INDEX (CSI) –3.9 POINTS ABOVE BALTIC COMPETITION

77.0 (+3.1)

75.1 (+7.3)

72.5 (+1.2)

75.1 (+3.9)

Rimi totalRimi Brand

§ One of the strongest brands, with clear market leadership in Latvia

§ Well perceived by customers in Lithuania§ Beating average score in Estonia

SOURCE: CFI research, Sep-Oct 2016

BALTIC CUSTOMERS OF TOMORROW ARE SIMILARTO OTHER EUROPEAN CUSTOMERS

Urban and modern

population

Income will continue to

increase

Higher demandsfor broaderassortment

Less time –more stressed

Digital – always connected Healthy living

…and will continue to focus on price

CLEAR ACTIONS FOR CONTINUED GROWTH

Strengthen the store network Support price positioning through cost efficient supply chainImprove HMR assortment Develop unique private labels and grow sales Implement one brand strategy in Estonia, converting HD to RimiDevelop digital offeringStrengthen CRM/ loyalty programmes/ one to one marketing

OPTIMIZE AND STRENGTHEN STORE NETWORKStore openings 2016-2017: • 2016: 15 STORES• 2017: 10 STORES approx.

Continue to invest in store network and contribute to ICA Gruppen’s target to be climate neutral by 2020 by:• Convert 17 Hypermarkets (HM) and 5 Supermarkets (SM) cooling

systems to CO2 based systems in 2017• Target to convert all HMs and SM format stores by the end of 2020

into climate friendly CO2 based cooling systems• Green energy electricity agreements signed for 2017 for Rimi Baltic

owned properties


IMPROVING SUPPLY CHAIN EFFICIENCY – CENTRAL WAREHOUSE IN RIGA• Total area: 93,000 m2

• DC floor 69,000 m2 + mezzanine 7,700 m2• Battery charging & other technical areas 3,550 m2• RIMI office 9,950 m2• Fresh food hub for Latvia and central DC for all

countries re slow movers & non food

• Investment: 75 MEUR

• Construction: 2016 – 2020

• 7 independent building projects • 800 warehouse employees in total

• 121 docks

• 49,000 pallet locations + 45,000 picking locations

• 68 truck parking places

• Production facilities on mezzanine (2,000 m2)


BROAD RANGE OF PRIVATE LABELS WITH ICA SYNERGIES


FOCUSING ON PRIVATE LABEL VALUEIMPROVEMENT

PL sales share YTD 09.2016

+1.2%

PL Margin % 2015

PL Margin % 2016

I II III IV

PL Sales share % 2015 PL Sales share % 2016

PL margin %YTD 09.2016

+1.8%



Optimize and strengthen store network Cost efficient supply chain to be able to have good pricesHMR assortment innovative improvementDevelop unique private labels and grow sales One brand strategy, converting HD in Estonia Develop digital offeringCRM/ loyalty programmes/ one to one marketing

ONE BRAND STRATEGY CONVERTING HD STORES IN ESTONIA TO RIMI IN 2017

Common development of the converted stores with sales dropping before new costumers have been gained.When sales starts to increase store contribution becomes better than before.

This store wasnever profitible

before becoming a Rimi store

IN A STRONG POSITION FOR FURTHER GROWTH

Excellent track record

Strong position and agenda for continuous and further growth

LIDL entry increases Lithuanian competition

Long term strategy actions

Being in the Baltics for 20 years and looking forward to the next 20

4 cmd 2016 rimi baltic breakout final - ica gruppen...• convert 17 hypermarkets (hm) and 5...

Documents