Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Q1 2016 Earnings Presentation
22 slides from Verkkokauppa.com Oyj's earnings presentation, Apr 22, 2016
Slide 1: Verkkokauppa.com Oyj Q1/2016 - Today's Storefront
Verkkokauppa.com Oyj Q1/2016 22.4.2016, Samuli Seppälä, CEO TODAY’S STOREFRONT RETAIL IS GOING ONLINE. COME ALONG. Questions during or after the presentation - investors@verkkokauppa.com
Slide 2: Steady sales growth in tough retail market
Verkkokauppa.com Q1/2016 Steady sales growth in tough retail market Revenue growth of +15% and EBITDA +25% * One-time cost of 0.6m€ for unpaid holiday salaries *) EBITDA excluding non-recurring items
Slide 3: Verkkokauppa.com concept
Verkkokauppa.com concept FIRST LOWER PRICES CUSTOMER SITE “Probably always cheaper” JOURNEY WIDER PRIVATE - MODULAR BEST 24 H SELECTION IT AND ERP SYSTEM AVAILABILITY CONTINUOUS TRANSPARENT OPERATIONAL INNOVATION AND TRUSTED EFFIENCY ”We aim for the lowest prices utilizing lowest fixed costs”
Slide 4: Verkkokauppa.com concept
Verkkokauppa.com concept FIRST LOWER PRICES CUSTOMER SITE “Probably always cheaper” JOURNEY WIDER PRIVATE - MODULAR BEST 24 H SELECTION IT AND ERP SYSTEM AVAILABILITY CONTINUOUS TRANSPARENT OPERATIONAL INNOVATION AND TRUSTED EFFIENCY Capital efficiency Finland’s best and trusted Wide range of enable
Slide 5: Verkkokauppa.com's customer journey
Verkkokauppa.com’s customer journey ”We provide ”We aim for the Finland’s best lowest prices utilizing customer journey” lowest fixed costs” Trusted & Product Service & “Cheering!” Known sales Warranty Looking Attach C2C- information sales sales
Slide 6: Q1/2016 Income Statement
Verkkokauppa.com Q1/2016 Income Statement Q1/2016* Q1/2015* Change%* Revenue, € million 83.5 72.9 +15% Gross profit 13.1 11.8 +11% Gross margin 15.6% 16.1% Personnel expenses 6.0 5.4 +12% Other opex 4.4 4.2 +4% EBITDA 2.7 2.1 +25% EBITDA margin 3.2% 2.9% Depreciation and amortiz. 0.3 0.3 +17% EBIT 2
Slide 7: Q1/2016 Balance Sheet
Verkkokauppa.com Q1/2016 Balance Sheet • Inventory 39.3 (36.1) million euros on 31.3.2016, change +9%. • Cash flow from operat. activities 1-3/2016 was -4.2 (-12.5) million euros. • Capex 1-3/2016 were 0.2 (0.4) million euros . • Cash 20.8 (15.8) million euros on 31.3.2016. • Interest bearing debt 0
Slide 8: Q1/2016 Revenue: main sales growth drivers
Verkkokauppa.com Q1/2016 Revenue Q1 +15% main sales growth drivers • Verkkokauppa.com’s trusted concept • Retail continues going online • Bolder, growth-oriented pricing • Easy and convenient experience 60.6 mEUR 60.6 mEUR 68.0 mEUR 86.6 72.9 80.0 83.2 107.6 83.5 mEUR mEUR mEUR mEUR mEUR mEUR Q1/14
Slide 9: Webvisits last 15 months
Webvisits last 15 months ”We want to be the first site”
Slide 10: Verkkokauppa.com's gross margin and fixed costs
51.0% Verkkokauppa.com’s gross 45.3% margin and fixed costs 30 EBITDA 30.0% 3.1% 25 27.3% Gross margin% Fixed costs% of sales 20 20.9% 20.5% 19.7% 15 EBITDA 18.4% 17.0% 15.6% 3.2% 14.2% 10 12.5% 5 0% Retail in Finland Verk.com Qliro Group (SWE), Expert Asa Oy Gigantti Stockmann (w/o cars) 2014 2016/
Slide 11: Verkkokauppa.com's gross margin and fixed costs
EBITDA Verkkokauppa.com’s gross 30.0% 3.1% Gross margin% margin and fixed costs Fixed costs% of sales 27.3% 15 16.7% EBITDA EBITDA EBITDA 3.9% EBITDA EBITDA 15.5% 2.0% 14.6% 15.2% 15.4% 3.1% 2.8% 3.4% 10 12.9% 13.6% 12.4% 11.8% 11.8% 5 0% Verk.com Verk.com Verk.com Verk.com Verk.com Retail in Finlan
Slide 12: Verkkokauppa.com's Category Strategy
Verkkokauppa.com’s Category Strategy Verkkokauppa.com has continuously expanded into new categories • Track record of appr. one% market share gain per category per year. • Target to be in Finland’s top-3 etailers in each category. • Always probably cheaper price in each category. • Buying co-operati
Slide 13: Industry average category margins
Industry average category margins Fixed costs% of sales Margin avg. Gross margin% • Mobile Phones <5% 30 EBITDA • Computers or Tablets 10-15% 25 30.0% 3.1% • Televisions 20% 27.3% • Domestic Appliances 25% 20 • Musical Instruments 25% 15 • Tools (DIY) 25% 15.1% EBITDA 3.6% • Sporting Equipment 30-40
Slide 14: Forrester's or GfK's category forecasts
*) B2C/B2B-split **) Management estimate Forrester’s or GfK’s category forecasts Margin avg. Market-size (2014/15) Online% 2015 • Mobile Phones <5% 852 M€ 32.5% • Computers or Tablets 10-15% 585 M€ (271+314*) 54.8% • Televisions 20% 188 M€ 32.5% • Domestic Appliances 25% 438 M€ 14.4% • Musical Instr
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 when compared to the
Slide 16: Largest owners on 31.3.2016
Largest owners on 31.3.2016 Shares % 1 Seppälä Sipi Samuli 22 487 496 49,9 2 Keskinäinen Eläkevakuutusyhtiö Ilmarinen 2 612 728 5,798 3 Rite Ventures Finland Ab 2 367 576 5,254 4 Keva 2 138 000 4,744 5 Keskinäinen Työeläkevakuutusyhtiö Varma 2 065 932 4,584 6 Op-Delta -Sijoitusrahasto 1 265 661 2,80
Slide 17: Share development last 6 months
Share development last 6 months (21.4.2016)
Slide 18: Verkkokauppa.com
Verkkokauppa.com • Verkkokauppa.com is the best known, most visited and largest online retailer in Finland. • Verkkokauppa.com is profitable and operates with much lower fixed costs compared to other e-tailers and especially traditional retailers - thanks to its strong concept. • The company aims to
Slide 19: While traditional retail is increasing gross margin and fixed costs
While traditional retail sector is increasing gross margin and fixed costs ... 30 EBITDA EBITDA EBITDA 3.1% 29.1% ... we aim for lower 3.7% 29.1% 3.5% 30.0% 25 27.3% 20 25.3% 25.7% prices and costs! 15 EBITDA EBITDA EBITDA 15.7% 3.2% 15.4% 3.1% 15.1% 3.6% 10 12.6% 12.4% 11.5% 5 0% Retail in Finland
Slide 20: Q&A
Q&A Upcoming events: • Q2/2016, Friday 5 August 2016 • Q3/2016, Friday 21 October 2016 Quick links: • Investors English Summary - www.verkinvest.com • Company Releases mailing list in English - www.joinverk.com • Company Investor Webcasts - www.verklive.com Contacts: • Samuli Seppälä, CEO, samuli.se
Slide 21: Product highlight - Milla & Måns
Product highlight - Milla & Måns
Slide 22: Thank you!
Thank you! TODAY’S STOREFRONT RETAIL IS GOING ONLINE. COME ALONG.