Tokmanni Group (TOKMAN) Investor Update summary

Partnership agreement and scope

• Signed exclusive license agreement granting rights to sell SPAR products and operate SPAR business in Finland, with multiyear cooperation beginning in 2025.

• SPAR products will be introduced in all Tokmanni stores during the first half of the year, with the first SPAR-branded store opening in summer 2025.

• All current fresh food stores will be converted to the SPAR concept, with at least two additional SPAR stores planned by year-end and standalone SPAR stores under consideration.

• Partnership aims to expand grocery assortment, introduce new products, maintain low prices, and generate value through better buying and procurement scale.

• Collaboration leverages SPAR's global purchasing power, operational expertise, and international brand to boost competitiveness and drive sustainable growth.

Strategic benefits and market impact

• Access to SPAR's purchasing power, operational concepts, and product range enhances competitiveness and supports lower prices.

• Expanded grocery assortment, new products, and one-stop shopping are expected to improve customer experience and loyalty.

• Partnership positions Tokmanni as a major player in the Finnish grocery market, with groceries accounting for over 50% of revenues and share increasing.

• Finnish grocery market is growing at a 5.3% CAGR, with Tokmanni's share at 3.3%.

• SPAR International will gain a foothold in Finland, leveraging Tokmanni's established brand and retail network.

Rollout plan and operational impact

• SPAR products will be available nationwide, with all Tokmanni stores offering them and the first SPAR-branded departments opening in summer 2025.

• Existing 20 fresh food stores will be converted to the SPAR concept, with new locations and standalone SPAR stores considered for future expansion.

• Synergies in procurement and store operations are prioritized to maximize benefits and operational efficiencies.

• CapEx for the rollout will be borne by Tokmanni, with investment plans adapting based on initial store performance.

• Main costs are related to store investments rather than the license agreement itself.