Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Q4 2014 Earnings Presentation
19 slides from Verkkokauppa.com Oyj's earnings presentation, Feb 13, 2015
Slide 1: Today's Store Front
Verkkokauppa.com Oyj Q4/2014, 13.2.2015, Samuli Seppälä, CEO TODAY’S STORE FRONT RETAIL IS GOING ONLINE. COME ALONG. Questions during presentation - investors@verkkokauppa.com
Slide 2: Verkkokauppa.com Q4 sales +15.3%
Verkkokauppa.com Q4 sales +15.3% Continuing strong sales growth - boosted by good development in December while retail sector and more product categories are going online.
Slide 3: Retail is going online - Q4 sales +15.3%
Retail is going online - Q4 sales +15.3% E-commerce is natural development and evolution of retail business . Why are consumers buying online? • E-commerce offers customers lower prices ”15€ avg. savings enabled by lower fixed operating costs. per 100€” • Wider selection, without need to keep everyt
Slide 4: Verkkokauppa.com Q4 sales +15.3%
Verkkokauppa.com Q4 sales +15.3% • Revenue was 86.6 (75.1) million euros, +15.3% • Gross profit was 13.2 (11.9) million euros, +10.4% • Gross margin was 15.2% (15.9%) of revenue • Personnel expenses 5.7 (4.6) million, +22.7% • Depreciation and amortiz. 0.3 (0.2) million, +11.7% • Other operating exp
Slide 5: Verkkokauppa.com 1-12/2014 +15.9%
Verkkokauppa.com 1-12/2014 +15.9% • Revenue was 275.8 million euros, +15.9% • Gross profit was 42.6 (37.4) million euros, +14.0% • Gross margin was 15.4% (15.7%) of revenue • Personnel expenses 18.8 (16.4) million, +14.4% • Depreciation and amortiz. 1.0 (0.9) million, +8.3% • Other operat. expenses
Slide 6: Q4/2014 main sales growth drivers Q4 +15.3%
Verkkokauppa.com Q4/2014 main sales growth drivers Q4 +15.3% • Retail going online • Appliances, phones and televisions Revenue • Bolder, growth oriented pricing • 22 years of experience and visibility • NASDAQ First North -publicity • Brand marketing increased 57.1 mEUR 48.8 mEUR 57.0 mEUR 75.1 mEU
Slide 7: Verkkokauppa.com's sales margin and fixed costs
Verkkokauppa.com’s ”Long term low prices sales margin and fixed costs enabled by low fixed costs” 30 Sales margin% Fixed costs% of sales 25 20 15 EBITDA EBITDA EBITDA EBITDA 16.7% 2.0% EBITDA EBITDA 15.7% 3.2% 15.4% 3.9% 15.5% 15.2% 3.1% 14.6% 2.8% 3.4% 10 12.6% 12.4% 12.9% 13.6% 11.8% 11.8% 5 0 Ver
Slide 8: Verkkokauppa.com's sales margin and fixed costs
Verkkokauppa.com’s sales margin and fixed costs 30 Sales margin% Fixed costs% of sales 29.1% EBITDA 29.5% 29.3% 25 3.5% 25.7% 20 15 EBITDA 15.4% 3.1% 33.5% 46.6% 47.2% 47.3% 10 12.4% 14.3% 14.2% 5 0 Retail in Finland Verk.com Amazon (USA) Qliro Group (SWE), Anttila (FIN), Stockmann (FIN), (w/o cars)
Slide 9: Verkkokauppa.com's Q4/2014 fixed costs development
Verkkokauppa.com’s Q4/2014 fixed costs development • Long term low prices enabled by low fixed costs is one of the key growth elements for any e-commerce, including Verkkokauppa.com. • Verkkokauppa.com’s fixed costs% (other operating costs + personnel costs) increased +20.9% in Q4 being 11.8% of rev
Slide 10: Verkkokauppa.com Q4 balance sheet
Verkkokauppa.com Q4 balance sheet • Inventory 30.9 (23.2) million euros on 31.12.2014. • Cash flow 1-12/2014 was +19.1 (-2.2) million euros. • Capex 1-12/2014 was 0.7 (0.3) million euros . • Cash 35.3 (22.7) million euros on 31.12.2014. • Interest bearing debt 2.0 (7.2) million euros on 31.12.2014.
Slide 11: Finnish e-commerce visit comparison
Finnish e-commerce visit comparison
Slide 12: Largest 2015 (public) projects
Largest 2015 (public) projects • Company is currently recruiting manager for C2C (consumer-to- consumer) market place. C2C is all about attracting more traffic, increasing add-on and sales of new products and improving customer loyalty and experience. • Current logistics development is mainly focusi
Slide 13: New categories in 2015
New categories in 2015 • ”Probably always cheaper prices”, efficients logistics and leading low fixed costs base are the foundation for our plans for introducing new product categories during 2015. • Launched three new main categories in January 2015 - babies and family, tools (diy) and luggage and
Slide 14: Industry average product margins
Fixed costs% of sales Industry average product margins 30 Sales margin% • Mobile Phone 5% 29.1% EBITDA 25 3.5% • Tablet Computer 10% 25.7% • Television 20% 20 • Washing Machine 25% 15 • Hammers and Drills 25% 15.4% EBITDA 3.1% • Sporting Equipment / Watches 25% 10 12.4% • Protein Bars 30% 5 • Baby S
Slide 15: Medium-term targets and Business outlook
Medium-term targets The company retains its existing targets: • The company strives to grow faster than its operating market and targets an annual revenue growth of over 10 per cent in the medium-term. • The company’s objective is to improve its EBITDA margin in the medium-term compared to the level
Slide 16: Largest owners on 31.1.2015
Largest owners on 31.1.2015 Shares % 1 Seppälä Sipi Samuli 3 747 916 49,900 2 Rite Ventures Finland Ab 769 596 10,246 3 Keskinäinen Eläkevakuutusyhtiö Ilmarinen 384 788 5,123 4 Keskinäinen Työeläkevakuutusyhtiö Varma 344 322 4,584 5 Op-Delta -Sijoitusrahasto 235 278 3,133 6 Keva 168 000 2,237 7 Skog
Slide 17: Share development (8.2.2015)
Share development (8.2.2015)
Slide 18: Upcoming events and contacts
Upcoming events: Q&A • AGM, Wednesday 18th of March 2015 • Q1/2015, Friday 24 April 2015 • Q2/2015, Friday 7 August 2015 • Q3/2015, October 23 2015 Quick links: • Investors English Summary - www.verkinvest.com • Company Releases mailing list in English - www.joinverk.com • Company Investor Webcasts
Slide 19: Thank you!
Thank you! TODAY’S STORE FRONT RETAIL IS GOING ONLINE. COME ALONG.