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COMPANY PRESENTATION OF THE FENIX OUTDOOR GROUP
President Martin Nordin2008-11-06
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BUSINESS CONCEPT
The business concept of Fenix Outdoor is to develop and market high quality and low-weight
outdoor products through a selected retail network with a high level of service and
professionalism to end-consumers with high expectations
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BUSINESS CONCEPT
Fenix Outdoor Group is created with the purpose of coordinating the efforts of the subsidiaries into one
entity, involving:
Utilization of synergies, centralized staff funct. Coordination of investment and marketing efforts. Managing business development and serving as a “think tank” to all operational parts of the group. Monitoring and evaluating of M&A opportunities.
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THE HISTORY OF THE FENIX OUTDOOR GROUP (1/2)
1950: The founder, Åke Nordin starts to develop outdoor equipment1960: Fjällräven AB is founded1963: The first ”thermo-tent” is sold1965: The G-1000 garment and the legendary ”Greenland jacket” is
introduced1975: Fjällräven founds a subsidiary in Germany1977: ”Kånken” – one of the world’s most sold backpacks –
is developed1979: Fjällräven established in Great Britain and Norway1983: Fjällräven is introduced on the Swedish OTC stock exchange1987: Subsidiary founded in Benelux 1988: The Fjällräven ”Forest line” is introduced
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THE HISTORY OF THE FENIX OUTDOOR GROUP (2/2)
1992: Fjällräven established in Japan1993: Fjällräven opens up a retail network in Stockholm, Oslo and
Amsterdam1998: The logistic centre in Holland is built out in order to serve
the whole of Europe 2001: Fjällräven acquires Tierra AB and the three retail chains
Friluftsbolaget, Naturkompaniet (Sweden) and Skandinavisk Høyfjellsutstyr (Norway).
2002: Primus is acquired. The Fjällräven Group changes its name to Fenix Outdoor Group.
2003 New logistic and warehouse opened in Holland1 Hanwag is acquired2007 Martin Nordin new president of Fenix Outdoor. CFO function
established. Skandinavisk Høyfjellsutstyr (Norway) is sold.
2008 JV established in China. Naturkompaniet opens up 20th shop, in Halmstad (totally 25 including franchise).
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ORGANISATION STRUCTURE
Fenix Outdoor AB (publ)Fenix Outdoor AB (publ)
RetailRetail
Natur-kompaniet
Natur-kompaniet
BrandsBrands
FjällrävenFjällräven TierraTierra
CFOCFO
Accounting Treasury
IT Logistics Facilities
Accounting Treasury
IT Logistics Facilities
PrimusPrimus
.
HanwagHanwag
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GROUP GOALS
Achieve an average profit margin before taxes of at least 10%
Achieve a average growth rate of at least 10% per annum in the next five years
Become one of the leading players in Europe in outdoor clothing and equipment
”Fenix Outdoor is aiming at strong
international growth while retaining an
outstanding profitability”
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GROWTH IN SALES AND PROFITMARGIN
-5%
0%
5%
10%
15%
20%
25%
2003 2004 2005 2006 2007 Q1-Q32008
Year
Gro
wth
an
d p
rofi
tmar
gin
Growth
Profit margin
Net sales Profit Growth Profit504,3 before tax in sales margin
Annual 2003 544,4 41,5 8% 8%Annual 2004 540,2 25,0 -1% 5%Annual 2005 655,5 67,6 21% 10%Annual 2006 742,8 83,0 13% 11%Annual 2007 845,0 120,1 14% 14%
Q1-Q3 2007 650,5 97,1 13% 15%Q1-Q3 2008 745,0 119,9 15% 16%
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HOW DO WE REACH OUR LONG TERM GOALS?
Fenix Outdoor Group will achieve its goals
in two ways
A European expansion based on a strong Nordic retail network and strong
brands, through organic growth:
- Marketing- Use retail feedback
- Establish new business on new markets
Expanding the brands division through acquiring additional outdoor
brands.
Use and develop our well-functioning logistic organisation as a platform for further expansion while maintaining profitability and using synergies
of scale
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Q1-Q3 2008
• Group net sales of 745,0 (650,5) MSEK, an increase of 15%.
• Group operating profit increased by 20%, for a total of 120,1 (100,2) MSEK.
• Group net profit after tax of 87,1 (62,1) MSEK.
• Earning per share after tax 6,56 (4,67) SEK. Below Fenix Outdoor vs OMXS as per 2008-11-05
SUMMARY FINANCIALS
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THE BRANDS DIVISION
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STRONG EUROPEAN MARKET POSITION
Germany 37,0% 34,5% 33,6%
Benelux 16,9% 17,1% 15,7%
Other Nordic 17,0% 18,0% 18,1%
Other Europe 12,5% 12,5% 12,5%
Sweden 10,5% 10,8% 12,6%
Other markets 6,1% 7,1% 7,5%
Turnover for Brands division on different markets
Q1-Q3 08 Q1-Q3 07 Annual 2007SUMMARY OF FACTS
Q1-Q3 2008
Net sales 571,9 (493,9) MSEK, an increase of 16%.
Operating result for Brands 107,4 (88,7) MSEK.
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THE BRANDS DIVISION - FJÄLLRÄVEN
The Fjällräven products are distributed through several selected retailers in countries where the company is represented
Fjällräven designs and develops a summer- and winter collection each year.
Fjällräven has a presence in more than 15 countries
Fjällräven has an excellent position to keep strong growth and profitability in the years to come
The brand awareness of Fjällräven is high on several European markets. In Sweden the brand awareness is over 90%. In Germany the brand awareness is over 25%.
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THE BRANDS DIVISION - TIERRA
The Tierra brand was founded in 1982 and is one of the leading brands in Scandinavia in the segment for high-tech clothing for demanding outdoor activities
The products are targeted at end-consumers with a strong interest in outdoor activities and that are expecting high functionality and extremely high quality products
Tierra has a presence in Sweden and Norway
Tierra is a complement to Fjällräven in the younger end-consumer segment with technical garments
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THE BRANDS DIVISION - PRIMUS
Primus was founded in 1892 and develops outdoor and camping equipment in the segments of boiling, heating and lighting, powered by gas and liquid fuels.
The Primus products are targeted at end-consumers demanding portable equipment for extreme conditions.
Primus is through pioneering research and development the leading manufacturer of boiling and lighting equipment for the outdoor market.
Primus has a world-wide presence
Primus largest markets are the USA, Scandinavia and Western Europe.
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THE BRANDS DIVISION - HANWAG
The firm Hanwag has been manufacturing Hanwag boots just north of Munich since 1921, gaining a worldwide reputation for the exceptional quality of their boots.
Hanwag has a world-wide presence
Hanwag´s largest markets are Germany and Holland.
Hanwag boots are sold in 16 countries across the world.
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THE RETAIL DIVISION
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THE RETAIL DIVISION
Naturkompaniet
25 stores A retail network of 25 stores in attractive sites
in Sweden, creates a solid base for growth. Last shop opened in Halmstad in September 2008.
Focus on selling well-known brands and high-quality products to end-consumers with high expectations of quality and functionality
A unique focus on the outdoor segment offering a wide range assortment of clothing, shoes, equipment, maps etc. is a competitive advantage over other retail networks focusing on general sports goods
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A BROAD RETAIL ASSORTMENT
The retail chains marketing and sells a broad assortment for an active outdoor life:
– Clothes (Tierra, Fjällräven, North Face, Patagonia, Haglöfs, Marmot etc.)
– Shoes and boots (Hanwag, Meindl, Teva etc.)– Technical equipment (Primus, Silva, Trangia etc.)– Other outdoor equipment including books and
maps
”The complete assortment of outdoor products is a competitive advantage towards other retailers only
focusing on sporting goods”
SUMMARY OF FACTS
Q1-Q3 2008
Net sales 173,1 (156,6) MSEK, an increase of 11%, for comparable units 3%. Operating result for Retail 12,7 (11,5) MSEK.
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THE BENEFITS OF A RETAIL NETWORK
Feedback from the end-consumer market Increased efficiency when developing new products Ability to act faster on changing market conditions Ability to accurately analyse the need for supplementary
brands Synergies in marketing (print and media costs)
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NATURKOMPANIET OUTDOOR CATALOGUE
Our most important sales tool
Two catalogues per year
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