next generation variety discount retailer
TRANSCRIPT
NEXT GENERATION VARIETY DISCOUNT RETAILER
10.9.20211 Tokmanni Presentation
10 September 2021
Tokmanni is no. 1 general discount retailer in Finland
Over 1 million customer visits
per week
195stores in Finland
1,073 MEUR
revenue in 2020
~4,000employees
10.9.20212 Tokmanni Presentation
Tokmanni has a unique market position
Tokmanni’s distinctive positioning*… …has 4 competitive advantages
Lidl
Motonet
Ikea
Gigantti
H&M
Clas Ohlson
Sokos Stockmann
City-
market
Prisma
Narrow Assortment Wide
Expensiv
eV
alu
eP
rice im
age
Variety discounters
Hypermarkets
Discounters
Specialty Retail
Department stores
Halpa-Halli
Rusta
KärkkäinenPuuilo
Low prices
Inspiring and wide assortment
Lean and efficient operation model
Nationwide store network
combined with an online store
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* Illustrative. Ball size reflects revenue.
Tokmanni Presentation
Tokmanni’s customer base, family households being slightly overemphasized
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Note: Tokmanni’s customers = Customers that frequently visit Tokmanni
Sources: TNS Mind 2018
Adult singles
17%
43%
Young couplesAdult 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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Smart shoppers are overemphasized and price insensitive underemphasized in Tokmanni’s customers
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Price insensitivesSmart shoppers Sale and discount addicts
33%
45%
57%
31%
18%
9%
Price comparers
4% 3%
Whole population Tokmanni’s customers
Note: Tokmanni’s customers = Customers that frequently visit Tokmanni
Sources: TNS Mind 2018Tokmanni Presentation
Private labels
No. 1 in customer minds, customer reach or sales
Tokmanni’s product assortment
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Home
improvement
Health, beauty
and well-being
Cleaning and
storage
Garden Apparel Home decoration
and kitchen
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Groceries
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TOKMANNI targets 2021–2025
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Customer confidence
and engagement
Widest possible
assortment
Lowest possible
prices
Fast and easy to shop
Personal and exciting
shopping experience
Friendly and knowledge-
able personnel
Sustainable choice
Tokmanni strategy 2021-2025: strong growth
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Customer confidence
and engagement
Widest possible
assortment
Lowest possible
prices
Fast and easy to shop
Personal and exciting
shopping experience
Friendly and knowledge-
able personnel
Sustainable choice
Tokmanni strategy 2021-2025: strong growth
SupplyChainDigitalization
Sourcingand buying
EVERY
DAY
LOW
COST
Revenue target – 1,500 mEUR in 2025
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2017 2018 2019 2020
797
870
944
1,073
2025
1,500
427 MEUR
• New stores
• Wider assortment and
new product areas
• Increasing B-to-B
• Successful combination
online and stores
EBIT target – 150 MEUR in 2025
10.9.2021 Tokmanni Presentation11 * Comparable EBIT for 2017 is not fully comparable as it does not include IFRS 16 calculations
70
2017* 2018 2019 2020 2025
150
41
52
100
50 MEUR
• Sales growth impact
• Increasing private labels
and direct imports
• Increasing supply chain
efficiency
• Improving cost-
effectiveness
• Digitalization
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COMPARABLE EBIT target 150 MEUR
EBIT 2020 Operating expenses
improvement potential
7.5–15.0 Meur
40.0 Meur
Sales growth
2.5–7.5 Meur
Gross margin improvement
potential
EBIT 2025
100 Meur
Target 150 Meur
Comparable EBIT
Store network*
Net debt/EBITDA
Dividend**
Revenue 1,500 MEUR
150 MEUR
> 220 stores in Finland
< 3.2
Approx. 70% of net result
Targets for Strategy period 2021-2025
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*Tokmanni’s goal is to increase the amount of stores every year around six new or relocated stores in Finland.
**The decision to distribute dividend is always dependent on capital structure, financial position, general economic and business conditions and future outlook.
Tokmanni Presentation
