Slide 1: Verkkokauppa.com Q3 2020
Verkkokauppa.com Q3 2020 Finland’s most popular webstore 23.10.2020 | Panu Porkka Questions during or after the presentation - investors@verkkokauppa.com
Slide 2: Today's Agenda
Today’s Agenda • Key Figures Q3/2020 • Sales and Profitability Development • Competitive Advantage’s • Amazon opportunity • Market Outlook 2020 • Key Takeaways • Q&A 2
Slide 3: Income Statement Q3
Income Statement Q3 EUR million Q3/2020 Q3/2019 Change, % Revenue 129.3 120.1 7.3% Gross profit 20.9 18.9 10.4% • 28th consecutive Gross margin, % of revenue 16.2% 15.7% 3.0% growth quarter Personnel expenses -8.1 -7.6 6.4% • All time high Other operating expenses -6.1 -5.9 4.3% operating profit, in
Slide 4: Sales Development in Q3
Sales Development in Q3 140 Revenue, € million • Sales channel development driven by 129.3 strong consumer web sales 120 120.6 • Number of new online users during Q3 105.4 116.8 grew by +20% 100 • Fast delivery options under high demand 80 (+267%) → accelerating transition towards online 60 • Strong
Slide 5: Profitability Development in Q3
Profitability Development in Q3 • Sales mix having a positive impact on margin, strong consumer sales while Export is declining • Strong sales increase in higher margin categories • Enriched data to improve stock turnover and decrease obsolide stock • Investments in new tools and processes to improv
Slide 6: Balance Sheet & Cash Flow 30.9.2020
Balance Sheet & Cash Flow 30.9.2020 • Inventory 65.7 (60.1) million euros on • Cash flow from operating activities 1-9/2020 +6.5 (-2.0) million euros • Investments 1-9/2020 were 0.9 (0.9) million euros • Cash 36.5 (34.4) million euros • Equity ratio 25.9% (25.6%) • Undrawn revolving credit facilitie
Slide 7: 2020 Guidance (updated on 24th of September)
2020 Guidance (updated on 24th of September) Revenue Comparable Operating €525m - €550m profit (2019 €504m) €17m - €21m (2019 €11 m) Previous guidance: Revenue €520m-€545m and Comparable Operating profit €13m-€18m 7
Slide 8: Vision: a Nordic leader in retail
Verkkokauppa.com’s vision is to be a Nordic leader in retail through cost-efficiency, brand image, own ecosystem and scalable business model
Slide 9: Strong Market Position in Changing Retail Landscape
Strong Market Position in Changing Retail Landscape • Best positioned brand in e-commerce in Finland, most visited website • 20 million visits during Q3, 57 million during Q1-Q3 • Consecutive consumer´s choice winner as the best online retailer in Finland 2020* • Local hero ready for the Amazon oppo
Slide 10: Fast and Seamless Customer Experience
Fast and Seamless Customer Experience • Search engine optimization through multiple updated category descriptions and content • AI pilot started/ongoing to improve and automate chat responses in customer care • Online Outlet feature completed / to be launched near weeks • Electronic shelf label pil
Slide 11: Wide Assortment and Best Availability
Wide Assortment and Best Availability • New site Verkkokauppa.fi launched to support local suppliers and to strengthen leadership as most desired generalist • MDA market moving online at a faster pace, supported by good availability and appealing assortment • Largest MDA assortment in Finland, addit
Slide 12: Fastest Deliveries in Finland
Fastest Deliveries in Finland • Same day & Express deliveries • Same day delivery as an option in great Helsinki area and in Tampere region with lowered price 14,99€ since September • 3h Express deliveries available already since 2014 → +267% growth in same day & Express deliveries during Q3 • Stron
Slide 13: Key Focus Areas for Q4
Key Focus Areas for Q4 • Monitoring development regarding COVID-19 situation closely to quickly take needed measures • Last load testing to secure online operations and experience during expected record peaks • Stronger focus on upcoming campaigns as consumption likely in favor of Retail (Singles Da
Slide 14: Amazon.se
Amazon.se
Slide 15: Verkkokauppa.com vs Amazon.se (& other pure players)
Verkkokauppa.com vs Amazon.se (& other pure players) Verkkokauppa.com is strong positioned against international pure players and local competitors due to it´s competitive advantages • Price • Continuous price matching against Amazon already in practise • Competitive price environment in Finland for
Slide 16: New market growth not consistent
New market growth not consistent 16
Slide 17: Local heros can succeed and grow alongside Amazon
Local heros can succeed and grow alongside Amazon • Tähän graafi jossa näkyy esim Bol.com kasvu jne 17 22.10.2020
Slide 18: Market Outlook
Market Outlook
Slide 19: Market Development
Market Development When did you last buy goods from an online store?* 19 *Source: Posti Big Online Shopping Survey, 07/2020, n=2380
Slide 20: Market Development
Market Development 20 Source: Posti Big Online Shopping Survey, 07/2020, n=2380
Slide 21: Key Takeaways
Key Takeaways • Strong performance across all • Guidance updated for 2020 due to operation continuing strong Q3 and full year outlook • Three consecutive record • Strong brand position supporting quarters in profit (Q3 all time high) traffic and perception • COVID-19 impacting consumer • Uncertainti
Slide 22: Don't forget the Christmas presents
Don’t forget the Christmas presents 22
Slide 23: More Information
More Information Contacts Links Upcoming events in 2021 Panu Porkka, CEO Investors site panu.porkka@verkkokauppa.com www.verkinvest.com Q4/2020 and year 2020 on Friday 12 February 2021 Mikko Forsell, CFO Company Releases mailing list mikko.forsell@verkkokauppa.com www.joinverk.com Q1/2021 on Friday
Slide 24: 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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