Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Non-Deal Roadshow (June 2022)
28 slides from Verkkokauppa.com Oyj's roadshow presentation, June 2022
Slide 1: Verkkokauppa.com – the address of all passions
Verkkokauppa.com – the address of all passions June 2022 | Frankfurt roadshow arranged by Nordea Panu Porkka, CEO | Mikko Forsell, CFO | Marja Mäkinen, IR | Verkkokauppa.com Oyj
Slide 2: Today's agenda
Today´s agenda Verkkokauppa.com shortly Business review Q1 highlights Key financials Strategic development and market outlook Strategic cornerstones and development Priorities in 2022 2 Business outlook for 2022 and financial targets
Slide 3: Verkkokauppa.com - passionate pioneer of ecommerce
Verkkokauppa.com - passionate pioneer of ecommerce We are online-born – online is at the core of what we do, and what the company has been built around Startup Becoming a household brand in ecommerce Perfecting customer experience Road towards a billion 1998 2001 2011 2014 2016 2019 2020 2022 Verkko
Slide 4: A largest ecommerce player in Finland
A largest ecommerce player in Finland At the end of 2021 Personnel: Assortment: 80 million visits The most sustainable 825 employees >80,000 products in our webstore webstore in Finland* We have a solid track Sales channels1) Customer segments record of growth 575 7% 554 504 32% 21% 478 In 2021, Ver
Slide 5: Frictionless omnichannel experience
Frictionless omnichannel experience Which of these online shops have you bought something from in the past Highest customer loyalty Fast 24/7 automated 12 months? customer service Verkkokauppa.com 33% >120,000 65% Zalando.fi 26% Gigantti.fi 24% Avg. monthly active users of all customer contacts are
Slide 6: Superior delivery performance with room to push further
Over the past years we have established superior delivery performance and have room to push further as customer needs evolve >2 day delivery Within next day Same day delivery Store Logistics center Logistics hub & store combination We used to be more reliant on third- Our network covers
Slide 7: Sustainability is a key part of Verkkokauppa.com's operations
Sustainability is a key part of Verkkokauppa.com’s operations High-quality, safe products and selling products that customers actually need are at the heart of our operations Through our sustainable sales concept, we are able to keep the low level of product returns: 1% of the sold products were ret
Slide 8: Latest financials
-Com — Verkkokauppa PROBABLY ALWAYS CHEAPER
Slide 9: Challenging market environment in the 1st quarter
Challenging market environment in the 1st quarter Sales • Market continued challenging and consumer sales softer than expected • Overall revenue declined by -6.9% • B2B sales continued solid and increased by +12% • Export business declined -30.5%, as we stopped all sales to Russia • Online sales dec
Slide 10: Q1/2022: revenue declining in a challenging quarter
Q1/2022: revenue declining in a challenging quarter EUR million 1-3/2022 1-3/2021 Change, % 1-12/2021 Q1 revenue declined Revenue 124.8 134.0 -6.9% 574.5 by -6.9% Gross profit 19.3 21.7 -11.4% 91.2 Operating expenses Gross margin, % 15.4% 16.2% 15.9% higher due to logistics and Personnel expense
Slide 11: Balance sheet & Cash flow
Balance sheet & Cash flow At the end of March 2022: • Inventories were EUR 91.4 (79.9) million • Cash flow from operating activities was EUR -16.8 (-9.1) million • Investments during Q1 were EUR 1.4 (0.4) million • Mainly related to warehouse automation investment in Jätkäsaari • Cash, EUR 16.7 (32.
Slide 12: Key takeaways from the 1st quarter
Key takeaways from the 1st quarter Soft consumer demand throughout The acquisition of e-ville.com 1 the quarter, consumer uncertainties impacting purchasing behavior 4 online store was finalized The investment on Good performance in 2 B2B sales, increase of +12.0% 5 automated Jätkäsaari logistics hu
Slide 13: Update on strategy execution
Update on strategy execution
Slide 14: 2021-2025 strategy
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Slide 15: Strategy execution – developing our operations towards our targets
Strategy execution – developing our operations towards our targets Speed & Trust Assortment Experience Flexibility Frictionless omnichannel Delivery experience fuelled by Most transparent product The widest and most exciting experience built upon inhouse highest availability and information platform
Slide 16: Next steps taken on the journey towards long term targets
Next steps taken on the journey towards long term targets Warehouse automation E-ville.com acquisition Investment rationale • Autostore automation in Jätkäsaari was • Acquisition significantly accelerates Focus on speed up assortment finalized during the first quarter own brand product development,
Slide 17: In B2B we are following our planned trajectory
In B2B we are following our planned trajectory Increased interest from enterprise customer segment due to more comprehensive product & service mix • Good performance in B2B business • new services to new customers e.g. ‘Device as SMB Enterprise & Public a Service’ (ICT) concept Total office Best sec
Slide 18: Assortment development continuing despite challenging business environment
Assortment development continuing despite challenging business environment Assortment • Significant changes in consumer spending and buying behavior challenges us to agile and rapid commercial decisions • We continue to expand our assortment at a record pace, constantly looking into new possibilitie
Slide 19: A new payment method for our customers launched
Up to 45 days of interest-free A new payment method for and expense-free payment our customers launched period for each purchase Experience • The Verkkis-account (”Tili”) is a solution for easy transactions and payments • Tili was soft launched in mid-February and already 1,500 customers opened an a
Slide 20: Key Operational Priorities 2022
Key Operational Priorities 2022 In the challenging market environment, focus on sustainable business; keeping market share with profitable sales Finalization of the investment program to automate Jätkäsaari logistics for future scalability and growth Succesfull e-ville sourcing organization in
Slide 21: Business outlook
Business outlook
Slide 22: Consumer confidence continuing low in May
JULKINEN Consumer confidence continuing low in May • In May, expectations concerning consumers' own and Finland's economy continued very pessimistic. • Consumers had very few intentions in May to spend money on durable goods within the 12 months. The time was considered the least favorable ever for
Slide 23: Short-term business and market outlook
Short-term business and market outlook There is uncertainty about the The company's growth prospects The rise in inflation, as well as the future outlook in relation to for the current year are crisis in Ukraine, have further geopolitical conflicts in the world, considered challenging due to undermi
Slide 24: Guidance for 2022, Targets by the end of 2025
Guidance for 2022 Targets by the Dividend policy Updated on 23 March end of 2025 We continue to pay out a Revenue: EUR 530–590 million quarterly growing dividend (2021: EUR 574.5 million) Revenue: EUR 1 billion Comparable EBIT: EBIT margin: 5% Dividend in 2022: EUR 12–19 million Fixed costs: <10% of
Slide 25: Quarterly growing dividend to shareholders
Quarterly growing dividend to shareholders Dividend from 2021 financial year EUR EUR Record date Payment date 0.5 Dividend 0.060 28 March 2022 4 April 2022 0.45 0.45 Extra dividend - 0.4 0.34 0.060 1) 0.35 0.33 Additional Board’s authorization to pay quarterly dividend: 0.3 0.25 2nd instalment 0.061
Slide 26: More Information
More Information Investor Relations contacts: Links Marja Mäkinen Visit our Investors website: Head of Investor Relations & www.verkinvest.com Corporate Communications marja.makinen@verkkokauppa.com Join mailing list for Company releases: Financial events in 2022-23 +358 40 671 2999 www.joinverk.com
Slide 27: Disclaimer
This document is not an invitation to subscribe for or purchase any securities or make any investment decisions in respect of the Company or its securities. This document is not for publication or distribution, directly or indirectly, in or into Australia, Canada, the Hong Kong special administrativ
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