Slide 1: Today's Store Front
Verkkokauppa.com Oyj Q1/2015, 24.4.2015, Samuli Seppälä, CEO TODAY’S STORE FRONT RETAIL IS GOING ONLINE. COME ALONG. Questions during or after the presentation - investors@verkkokauppa.com
Slide 2: Strong first quarter at Verkkokauppa.com, revenue grew 20%
Verkkokauppa.com’s Q1/2015 Strong first quarter at Verkkokauppa.com, revenue grew 20% at stagnant retail market
Slide 3: Retail is going online
Retail is going online E-commerce is natural development and evolution of retail business . Why are consumers buying online? • E-commerce offers consumers lower prices ”15€ avg. savings enabled by lower fixed operating costs. per 100€” • Wider selection, without need to keep everything in stock and
Slide 4: Verkkokauppa.com concept
Verkkokauppa.com concept Price according with Capital efficiency enabled by the leanest LOWER PRICES slogan - regardless operating model “Probably always cheaper” of sales channel WIDER BEST 24 H SELECTION AVAILABILITY Finland’s best source for Customer lifetime value TRANSPARENT AND maximisation -
Slide 5: Verkkokauppa.com Q1/2015 P&L
Verkkokauppa.com Q1/2015 P&L • Revenue was 72.9 (60.6) million euros, +20% • Gross profit was 11.7 (10.1) million euros, +16% • Gross margin was 16.1% (16.7%) of revenue • Personnel expenses 5.4 (4.4) million, +24% • Depreciation and amortiz. 0.3 (0.2) million, +17% • Other operating expenses 7.6 (3
Slide 6: Verkkokauppa.com Q1/2015 balance sheet
Verkkokauppa.com Q1/2015 balance sheet • Inventory 36.1 (28.1) million euros on 31.3.2015. • Cash flow 1-3/2015 was -19.5 (-7.4) million euros. • Investments 1-3/2015 was 0.4 (0.1) million euros . • Cash 15.8 (15.2) million euros on 31.3.2015. • Interest bearing debt 1.8 (2.6) million euros on 31.3.
Slide 7: Q1/2015 main sales growth drivers
Verkkokauppa.com Q1/2015 main sales growth drivers Q1 +20% • Retail going online Revenue • Bolder, growth oriented pricing • Changes in department stores • 23 years of experience and visibility • NASDAQ First North -publicity 57.1 mEUR 48.8 mEUR 57.0 mEUR 75.1 mEUR 60.6 mEUR 60.6 mEUR 68.0 mEUR 86.6
Slide 8: Finnish e-commerce visit comparison
Finnish e-commerce visit comparison Source: Similarweb.com
Slide 9: Gross margin and fixed costs
Verkkokauppa.com’s gross margin and fixed costs 30 Gross margin% Fixed costs% of sales 29.1% EBITDA 25 3.5% 25.7% 20 15 EBITDA EBITDA 15.4% 3.1% 16.1% 2.9% 44.2% 46.6% 47.2% 16.1% 29.4% 10 12.4% 13.2% 13.1% 5 0 Retail in Finland Verk.com Verk.com Qliro Group (SWE), Clas Ohlson (SWE) Stockmann (FIN),
Slide 10: Gross margin and fixed costs
Verkkokauppa.com’s ”+1% gross margin gross margin and fixed costs increase = +10% sales growth” 30 25 Gross margin% Fixed costs% of sales 20 15 EBITDA EBITDA EBITDA 16.7% EBITDA EBITDA EBITDA 2.9% 15.4% 3.9% 15.5% 2.0% 15.2% 16.1% 3.1% 14.6% 2.8% 3.4% 10 12.4% 12.9% 13.6% 11.8% 11.8% 13.2% 5 0 Verk.
Slide 11: Q1/2015 fixed costs and margin development
Verkkokauppa.com’s Q1/2015 fixed costs and margin development • Long term low prices enabled by low fixed costs is one of the key growth elements for any e-commerce, including Verkkokauppa.com. • New product categories typically have better gross margin compared older categories. Sales by consumer f
Slide 12: Largest projects
Largest projects • Own consumer financing and credit scoring services are still being developed. First first focus is in credit scoring and fraud detection services.Current consumer financing has increased, which has resulted as more commissions paid to the company. • Company is still developing own
Slide 13: New categories
New categories • Now total 26 main categories and over 50 000 articles. • ”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. • Launch of three new main categories in January 2015
Slide 14: 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 15: Largest owners on 31.3.2015
Largest owners on 31.3.2015 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 198 000 2,636 7 Sijo
Slide 16: Share development (22.4.2015)
Share development (22.4.2015)
Slide 17: Upcoming events and contacts
Upcoming events: Q&A • 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 - www.verklive.com Contacts: • Samuli Seppälä, CEO, samuli.seppala@v
Slide 18: Product highlight - GoZero
Product highlight - GoZero
Slide 19: Thank you!
Thank you! TODAY’S STORE FRONT RETAIL IS GOING ONLINE. COME ALONG.