Annual Report 2012/13 1918-1919 1919-1920 1923-1924 1927-1928 Contents
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Annual Report 2012/13 1918-1919 1919-1920 1923-1924 1927-1928 Contents The year in brief 1 CEO's statement 2 Strategic orientation 5 1930-1931 1932-1933 1934-1935 1936-1937 Market overview 9 Operations 13 Marketing 13 Our sales channels 16 Purchasing and product range 20 1939-1940 1943-1944 1945-1946 1948-1949 Own brands 21 Logistics, IT and security 22 Risks and uncertainties 24 Sustainable development 27 1951-1952 1954-1955 1957-1958 1961-1962 Our work to promote human rights 30 Our values and employees 36 Our responsibility for the environment 40 Clas Ohlson's GRI profi le 43 1963-1964 1966-1967 1968-1969 1972-1973 Shares and shareholders 45 Annual report Directors’ report 48 Corporate governance 50 1975-1976 1978-1979 1981-1982 1984-1985 Five-year summary 58 Comments 59 Consolidated income, comprehensive income and cash-fl ow statements 60 Consolidated balance sheet 1988-1989 1990-1991 1993-1994 1995-1996 and change in equity 61 Parent Company income, comprehensive income and cash-fl ow statements 62 Parent Company balance sheet and change in equity 63 1999-2000 2003-2004 2006-2007 Autumn & Winter Accounting policies and notes 64 2008-09 Certifi cation of the annual accounts 76 Audit report 77 Board of Directors and auditors 78 Spring & Summer Autumn & Winter Spring & Summer Autumn & Winter Senior Management 82 2009 2009-10 2010 2010-11 Quarterly results 84 A selection of catalogues Defi nitions 84 from 1918 to 2013 Addresses 85 Spring & Summer 2011-2012 2012-2013 2011 More people discover Clas Ohlson Clas Ohlson in one minute Our customers can make purchases in our 174 stores throughout Sweden, Clas Ohlson is a listed retail company Norway, Finland and the UK via our with great visions and ambitious goals. e-commerce platform, our catalogue or We are very proud of our origins, our by calling customer service. During the spirit and our strong customer focus. financial year, Clas Ohlson had 70 million With a broad and affordable range, visitors and 34 million customers. personal service and high availability, we assist our customers in finding so- The Clas Ohlson spirit is based on a lutions to practical, everyday problems. strong commitment to customers and employees. Equally important is the Our range comprises 15,000 pro- fact that we take responsibility and we ducts in the Hardware, Home, contribute to sustainable development. Multimedia, Electrical and Leisure ca- tegories. We also offer spare parts that Clas Ohlson has grown and reported a extend the service life of products and profit every year since 1918. Today, we that’s good for both your wallet and the have 4,280 employees and total annual environment. sales of SEK 6.5 billion. Practible solutions since 1918 In 1918, the founder Clas Ohlson established his first store, metres filled with products, inspiration and smart solutions for a small, 25-square-metre Falun Red cottage in Insjön. The everyday practical problems, no matter how large or small. store has been relocated and expanded over the years and, One of the most modern and efficient distribution centres in in May 2010, a store popularly known as “Mega-Clas” was the Nordic region is also located in Insjön with the capacity inaugurated close to the original premises at Hjultorget. The to handle the growing flow of goods to our stores in Sweden, world’s first Clas Ohlson store is now the world’s largest, with Norway, Finland and the UK, and to our Internet customers. our new and modern store concept and some 3,200 square Some key steps Norway More people discover Clas Ohlson Sweden during the year Finland UK China Clas Ohlson continued to refi ne the company’s sales and service channels and opened 17 new stores in the 2012/2013 fi nancial year. The company’s new e-commerce platform was also launched in all markets during the year, making it easy for customers to fi nd infor- mation, service and make purchases on their computers, tablets or mobile phones. Clas Ohlson launched the company’s fi rst loyalty programme, Club Clas, in spring 2013. The club is designed to reward loyal customers and provide opportunities for increased sales due to higher visitor frequency and above-average receipts. The programme also enables Sweden more effective marketing. More than 250,000 customers had joined the club by June 2013, making Club Clas one of the largest DIY clubs Start 1918. Number of stores: 73, including 5 new stores in Sweden! opened during the fi nancial year. Head offi ce and distribution centre. Number of employees: 2,179 (2,004, 2011/12). Sales: SEK 3,028 M (2,929, 2011/12). Norway Start 1985. Number of stores: 62, including 6 new stores opened during the fi nancial year. Number of employees: 1,340 (1,241, 2011/12). Sales: SEK 2,665 M (2,561, 2011/12). Finland Start 2002. Number of stores: 27, including 6 new stores In December 2012, Clas Ohlson was selected for the Nasdaq OMX opened during the fi nancial year. Number of employees: 407 Sustainability Index, which includes the most prestigious listed companies in terms of sustainability. During the fi nancial year, we took (327, 2011/12). Sales: SEK 563 M (517, 2011/12). further steps to improve our supplier responsibility, developed our product range to identify new, smart products and solutions that can UK save energy and resources and optimised our transport effi ciency to Start 2008. Number of stores: 12, no new stores opened reduce carbon dioxide emissions. during the fi nancial year. Number of employees: 300 (301, 2011/12). Sales: SEK 263 M (254, 2011/12). Read more about our continued UK expansion on page 19. China Shanghai and Shenzhen are the locations for Clas Ohlson’s purchasing and CSR offi ces. Operations in China were established in 2008 to strengthen Clas Ohlson’s purchasing operations and increase the share of purchases without intermediaries. Coming closer to suppliers and manufacturers During the year we continued to increase the proportion of direct permits us to reduce purchasing costs and gain greater purchases from manufacturers. This gives us greater control over control of compliance with our Code of Conduct. Number of design and quality and means that we can offer our customers even employees: 54 (47, 2011/12). more value for money. We can also ensure compliance with our Code of Conduct on site, where the manufacturing is carried out, and check that working conditions meet our requirements. International The year in brief expansion • Sales amounted to SEK 6,519 M (6,260), +4% • Operating profit amounted to SEK 431 M (561), -23% • Profit after tax amounted to SEK 332 M (400), -17% • Earnings per share amounted to SEK 5.23 (6.29), -17% • A proposed dividend of SEK 4.25 per share (4.25) • 17 new stores opened Key ratios 2012/13 2011/12 Change Net sales, SEK M 6,519 6,260 +4% Operating profit, SEK M 431 561 -23% Profit before tax, SEK M 420 551 -24% Profit after tax, SEK M 332 400 -17% Operating margin, % 6.6 9.0 -2.4 Return on equity, % 18.3 23.1 -4.8 Return on capital employed, % 23.2 27.9 -4.7 Equity/assets ratio, % 59.1 60.3 -1.2 Earnings per share, SEK 5.23 6.29 -17% Dividend per share, SEK 4.25* 4.25 0% Total number of stores 174 157 +11% Number of full-time equivalent 2,524 2,370 +6% employees * Proposed dividend Sales, SEK M Operating profit, SEK M 7500 600 591 561 6 519 503 507 6 260 500 6000 5 828 5 556 431 4 930 400 4500 300 3000 Clas Ohlson's vision is to develop a strong European retail 200 chain, characterised by high profitability and favourable 1500 100 value growth for our shareholders. We strive to become 0 0 the obvious choice for people searching for solutions to 08/09 09/10 10/11 11/12 12/13 08/0909/10 10/11 11/12 12/13 practical problems in daily life. During the fiscal year, we expanded by 4 per cent in a generally weak retail market in our countries of operation. Operating profit was SEK 431 M (561) affected by lower sales in comparable stores. Calendar Clas Ohlson received a number of new distinctions during the year, including most popular store in a shopping Interim report, first quarter 4 September 2013 centre (Drömgallerian 2012), Sweden’s second strongest retail brand (GFK 2012) and an award for being best in the Annual General Meeting for the 2012/13 financial year 7 September 2013 industry in a survey on sustainability (Sustainable Brands Insight 2013). Six-month report 11 December 2013 These distinctions give Clas Ohlson’s employees, in combination with our customers and shareholders, the Interim report, third quarter 12 March 2014 inspiration to continue developing the Company with the Year-end report for the ambition that more customers gain access to what Clas 2013/14 financial year 11 June 2014 Ohlson can offer! The year in brief 1 CEO's statement In the 2012/13 financial year, Clas Ohlson The year in review continued to strengthen our customer offe- What about the recently concluded financial year for Clas Ohlson? My description above applies to this year as well. A ring and took new steps toward achieving our great deal has happened, both major and minor events. We international retail chain vision. We continue are working every day to improve our customer offering to make it more attractive and even more competitive.