Annual and Sustainability Report 2018/19
CLAS OHLSON 2018/19 1 Contents 2 This is Clas Ohlson 4 – Markets 6 The year in review 10 CEO’s statement
BUSINESS ENVIRONMENT 14 Drivers and trends 16 Stakeholder expectations
STRATEGY & TARGETS 18 Strategic framework 21 Targets and target fulfilment
OUR WAY OF WORKING 24 Business model 26 Governance and responsibility 32 Co-workers
OPERATIONS 38 A unique customer offering 44 – Purchasing 46 – Ambitious quality approach 48 – Our products and services 50 Outstanding customer service 51 – Available sales channels 60 Smart and simple 61 – Distribution 67 – Organisation and competence mix
ANNUAL REPORT 72 Directors’ Report 77 – Appropriation of earnings 78 – Risks and uncertainties 82 – Chairman’s statement 83 – Corporate governance 92 – Board of Directors 94 – Group management 96 Consolidated financial statements 99 Parent Company financial statements 102 Notes 122 Certification of the Annual Report 123 Auditor’s report 126 Sustainability report 128 Supplementary sustainability information 128 – Eight current target areas 130 – Our value chain 132 – Clas Ohlson’s contributions to the SDGs ABOUT THE ANNUAL REPORT Clas Ohlson presents financial and non-financial 136 – Sustainability risks information integrated in a single report. The report includes standard and specific 138 – GRI Index disclosures based on the GRI guidelines, Standards. The scope of the statutory 142 The share sustainability report is stated on page 126. The statutory annual report encompass- es the Directors’ Report and the financial statements on pages 72-122. 146 Quarterly data 147 Key ratio definitions and glossary 148 Alternative performance measures Clas Ohlson is a Swedish company and is subject to Swedish law. All values are 150 Ten-year overview stated in Swedish kronor (SEK). Values in millions of SEK are abbreviated MSEK 152 Store overview and thousands of SEK as SEK 000. Unless otherwise specified, figures in paren- 154 History thesis pertain to 2017/18. Data regarding markets and competition reflect Clas 156 Annual General Meeting and reporting calendar Ohlson’s own assessments if a specific source is not quoted. These assessments are based on the best and most recent factual data from published sources in the public sector and the consumer goods industry. This Annual Report has been prepared in Swedish and translated into English. In the event of any discrepancies between the Swedish and the English version, the former shall have precedence.
2 CLAS OHLSON 2018/19 THIS IS CLAS OHLSON
OUR MISSION To help and inspire people to improve their everyday life by offering smart, simple and practical solutions at attractive prices.
Welcome to Clas Ohlson!
In 1918, the entrepreneur Clas Ohlson founded attractive prices. We also urge our value chain to a mail order business in Insjön, Dalarna, Sweden, become more resource-efficient and we respect to which he gave his name. Today, Clas Ohlson is people and the environment in all parts of our a retail company with customers in five markets, operations. Our corporate culture, the Clas Ohl- about 5,000 co-workers, and sales of approxi- son spirit, is based on an approach inspired by our mately 8.8 billion SEK. A lot has happened since founder regarding how we treat our customers the beginning, but one thing has been the same and each other. all these years: every day, we want to help and inspire people to improve their everyday life by The Clas Ohlson share has been listed on Nasdaq offering smart, simple and practical solutions at Stockholm since 1999.
CLAS OHLSON 2018/19 3 THIS IS CLAS OHLSON | MARKETS
Clas Ohlson locations Stores Online We have 232 stores in four countries and our entire affordable product range for solving everyday practical problems is available around the clock at clasohlson.com. Employees
NORDIC REGION
NORWAY SWEDEN
Percentage of total sales 90 97