Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Investor Presentation (August 2021)
31 slides from Verkkokauppa.com Oyj's investor presentation, Aug 27, 2021
Slide 1: Empowering customers to follow their passion
Verkkokauppa.com Oyj Empowering customers to follow their passion 27 August 2021, Helsingin Osakesäästäjät ry, Vanajanlinna Mikko Forsell, CFO | Marja Mäkinen, IR | Verkkokauppa.com Oyj
Slide 2: Disclaimer
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 This document is not for publication or distribution, directly or indirectly, in or into Australia, Canada, the Hong Kong special ad
Slide 3: Agenda
Agenda Verkkokauppa.com in brief Latest financials Strategy update Business outlook Appendix 3
Slide 4: Verkkokauppa.com – The address of all passions
Verkkokauppa.com – The address of all passions (in 2020) In 2020: ✓ Revenue EUR 553.6 million Verkkokauppa.com is the largest webshop in Finland 1) ✓ Comparable Operating profit EUR 20.4 million ✓ 818 Employees ✓ Revenue EUR 553.6 million Balance sheet EUR 173.7 million Our values: Courage ✓ Compara
Slide 5: Passionate Pioneer of Ecommerce
Passionate Pioneer of Ecommerce We are an 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 1992 2019 1998 2011 2014 Company founded at Verkkokauppa.com
Slide 6: Why will our customers continue to shop at Verkkokauppa.com
Our purpose: empower customers to follow their passion Why will our Speed & customers Assortment Experience Trust Flexibility continue to shop first and foremost at Verkkokauppa.com The widest and most Frictionless Delivery experience Most transparent exciting assortment omnichannel fuelled by highe
Slide 7: We continue to be the pioneer in ecommerce and the #1 platform in Finland
We continue to be the pioneer in ecommerce and are proud to be the #1 platform in Finland 2020 BEST LARGEST RAPID GROWTH MOST VISITED ECOMMERCE ECOMMERCE1 IN ONLINE WEBSTORE EXPERIENCE €324m ~16% +87M #1 In online revenue Annual growth Annual online Voted as best p.a. in 2015-20 visits customer expe
Slide 8: Strongest ecommerce brand in Finland
We are transparent, interact with our customers, and have established ourselves as the strongest ecommerce brand in Finland 2020 Strongest ecommerce brand in Finland Most product Highest customer reviews satisfaction 25 >400,000 70 customer reviews NPS 19 15 Highest customer Lowest returns on loyalt
Slide 9: In June 2020, VERK share trading started in the main market of Nasdaq Helsinki
In June 2020, VERK share trading started in the main market of Nasdaq Helsinki Stock Exchange Owner sector distribution ✓ In 2014, company was listed in Nasdaq First North, and moved in the main list of Nasdaq 14.1 % Helsinki Stock Exchange in June 2020 Private investors (FI) ✓ Market Cap: EUR 378 m
Slide 10: Our Approach to sustainable business
Our Approach to sustainable business Environmental • 100% renewable energy in stores • Climate neutral deliveries through Posti partnership • Product return rate of only 1.0% • 316 tons of e-waste collected in 2020 We sell safe, long-lasting quality products Social and serve our customers in a Str
Slide 11: Q2 2021: Growth continued with record high second quarter operating profit
Q2 2021: Growth continued with record high second quarter operating profit
Slide 12: In Q2/2021, on-line sales grew by +15.1%
In Q2/2021, on-line sales grew by +15.1% 1) Our revenue growth exceeded market growth 3) Online sales grew by +15.1% y-on-y 1) EUR million EUR million 200 Y-on-y +6.1% in Q2 2021 106.4 176 100.0 80.3 77.9 150 125 134 123 130.5 129 75.0 67.7 68.6 60.4 100 50.0 50 25.0 0 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020
Slide 13: Q2/2021: 32nd consecutive growth quarter
Q2/2021: 32nd consecutive growth quarter EUR million 4-6/ 4-6/ Change, % 1-6/ 1-6/ Change, % FY 2020 2021 2020 2021 2020 ✓ 32nd consecutive Revenue 130.5 123.1 6.1% 264.5 248.3 6.5% 553.6 growth quarter Gross profit 22.4 21.4 4.8% 44.2 40.8 8.2% 88.4 ✓ 6th consecutive Gross margin, % 17.2% 17.4% 16.
Slide 14: Key takeaways from Q2
Key takeaways from Q2 Strong performance in our Solid financial position ensuring 1 B2B business sales, +38.4 % 4 growing quarterly dividend and future investments opportunities The online shift in retail Our investment on automated 2 continued, our online sales 5 Jätkäsaari logistics hub progress i
Slide 15: Update on strategy execution
Update on strategy execution
Slide 16: The road towards a billion – growth path primarily organic and online driven
The road towards a billion – our growth path is primarily organic and online driven Capitalize on the online shift Leverage our superior platform Capture our full potential in through assortment for current and new business profitability 1 Capitalize upon the acceleration 4 Double the B2B business 8
Slide 17: Capitalizing on the online shift – on a road towards a billion
By capitalizing on the online shift and leveraging our superior platform – we are on a road towards a billion Verkkokauppa.com revenue development, 2020-25E, EUR milj. ~100 ~1,000 ~100 ~250 FY20 Capitalize on the shift Double the B2B New business FY25 to online with our business (incl. services, exc
Slide 18: Our core categories will continue accelerated shift to online
Our core categories will continue accelerated shift to online Total addressable market Online addressable market Our categories size, 2020-25e, EUR bn size, 2020-25e, EUR bn Our core categories are… Our core ~EUR 900m …what we have built the categories market opportunity business around for the last
Slide 19: Expanding into adjacent categories with attractive margins
We have started to expand into adjacent categories with attractive margins and lower online penetration Total addressable market Online addressable market Our categories size, 2020-25e, EUR bn size, 2020-25e, EUR bn Our evolving categories are… Our current ~EUR 500m …where we already have started to
Slide 20: We continuously evaluate untapped opportunities
Additionally, we continuously evaluate untapped opportunities Total addressable market Online addressable market Our categories size, 2020-25e, EUR bn size, 2020-25e, EUR bn Untapped opportunities are… Untapped opportunities +2% ~EUR 800m …where we have a systemized way 7.1 market opportunity to ide
Slide 21: Room to again double the business in B2B
There is room for Verkkokauppa.com to again double the business in B2B Total addressable market size Verkkokauppa.com Capture fair share of the market through our unique per B2B segment, 2020, EUR m Market share, %, 2020 platform that meets today’s B2B customer needs Defined a dedicated B2B team in
Slide 22: Move fixed costs below 10% of revenue through scale and automation
Move fixed costs below 10% of revenue through increased scale and AI-driven automated operations Our focus to optimize Fixed costs, % fixed cost base of revenue1 Our first priorities Starting point of fixed costs at 11.5% already below key peers Fixed costs in FY20 11.5% Apply best-in-class logistic
Slide 23: Logistics: Speed & Flexibility
Logistics: Speed & Flexibility >2 day delivery Within next day Same day delivery Store Logistics center Logistics hub & store combination 2017 2020 Future >90% of ~70% of population population covered covered within within next day next day and >50% of population covered within same day We used to b
Slide 24: Our well-defined road towards a billion by 2025
Our well-defined road towards a billion by 2025 A We have a strong track record of growth and value creation B C D E We have a strong We grow our EBIT In present business We are passionate platform to capture a through scale, by model our investments about doing sustainable >10% share of the shiftin
Slide 25: Business outlook
Verkkokauppa | Business outlook
Slide 26: Short-term market outlook
Short-term market outlook The strong balance sheet Our operations are We believe to significantly enables us to expand our estimated to develop grow our market share in operations in accordance positively evolving categories with our strategy COVID-19 pandemic has The pandemic may still cause We exp
Slide 27: Financial targets and dividend policy - unchanged
Financial targets and dividend policy - unchanged Guidance for 2021 Targets by the end Dividend policy Revenue: EUR 570–620 million of 2025 Our goal is to continue to (2020: EUR 554 million) Revenue: EUR 1 billion pay out a quarterly growing Comparable operating profit: EBIT margin: 5% dividend EUR
Slide 28: More Information
More Information Contacts Links Marja Mäkinen Visit our Investors website: Head of Investor Relations & www.verkinvest.com Corporate Communications, Verkkokauppa.com Join mailing list for Company releases: www.joinverk.com marja.makinen@verkkokauppa.com Upcoming events in 2021 +358 40 671 2999 Watch
Slide 29: Appendix
Appendix Page 30 Quarterly growing dividend
Slide 30: Quarterly growing dividend to shareholders
Quarterly growing dividend to shareholders EUR Dividend from 2020 financial year 0.5 EUR Payment date 0.45 0.45 Dividend 0.056 0.4 0.35 0.33 Extra dividend 0.22 0.3 0.276 1) 7 April 2021 0.25 0.21 0.198 0.21 Additional Board’s authorization to pay quarterly dividend: 0.2 0.17 0.15 138% 1st instalmen
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