Slide 1: Today's Storefront
Verkkokauppa.com Oyj Q4/2016, 10.2.2017, Samuli Seppälä, CEO TODAY’S STOREFRONT RETAIL IS GOING ONLINE. COME ALONG. Questions during or after the presentation - investors@verkkokauppa.com
Slide 2: Verkkokauppa.com Q4/2016
Verkkokauppa.com Q4/2016
Slide 3: Sales and profit grew, growing quarterly dividend policy proposed
Verkkokauppa.com Q4/2016 Sales and profit grew, growing quarterly dividend policy proposed Dividend proposal 0.166 eur (0.15) for 2016 Revenue +7%, €115.3m (€107.6m) EBITDA +14%, €5.9m (€5.2m) EPS* €0.10 (€0.08) *) Comparable EPS
Slide 4: Verkkokauppa.com Q4/2016 Income Statement
Verkkokauppa.com Q4/2016 Income Statement Q4/2016 Q4/2015 Ch% Full 2016 Revenue, € million 115.3 107.6 +7% 371.5 Gross profit 17.6 16.3 +8% 57.4 Gross margin 15.3% 15.2% 15.5% Personnel expenses -6.1 -6.2 -1% -24.4 Other opex -5.7 -5.0 +14% -19.6 EBITDA* 5.9 5.2 +14% 14.1 EBITDA margin* 5.1% 4.8% 3.
Slide 5: Verkkokauppa.com Q4/2016 Balance Sheet
Verkkokauppa.com Q4/2016 Balance Sheet • Inventory 44.0 (38.7) million euros on 31.12.16, change +14%. • Cash flow from operat. activities 1-12/2016 was 18.6 (5.1) million euros. • Capex 1-12/2016 were -1.0 (-1.3) million euros . • Equity ratio 39.5% (45.2%) • Cash 41.7 (30.8) million euros, change
Slide 6: We are the most transparent low cost online retailer
We are the most transparent low cost online retailer .. while being probably always cheaper
Slide 7: Lower costs
Finland’s best Lower self-service driven by technology costs Highly efficient Three logistics “Probably high volume always megastores We don’t sell cheaper” products that can’t be handled highly efficiently; Cheaper prices clothing, DIY, fresh food, sub-10e products enabled by lowest fixed costs
Slide 8: More aggressive 2017
More aggressive 2017 Including launch of two Efficient new main Vantaa warehouse fully categories operational Cheaper prices Relocation/ enabled by lowest expansion of fixed costs two stores
Slide 9: Retail market in 2021
E-commerce share of total global retail sales from 2015 to 2020 Global online share 16% forecast 2015-2020 Retail 14.6% 14% market in 2021 13% Share of e-retail sales 12% 11.5% 10% 10% 8.7% Verkkokauppa.com will take large part of 8% 7.4% the future online growth in Finland (€40b) 6% 2015 2016* 2017
Slide 10: Verkkokauppa.com Q4/2016 sales drivers
Q4 +7% Verkkokauppa.com Q4/2016 sales drivers • CE-market development +2%* • Retail continues going online • Verkkokauppa.com’s trusted concept • Fast deliveries from local warehouses 86.6 72.9 80.0 83.2 107.6 83.5 80.1 92.6 115.3 • Easy and convenient experience mEUR mEUR mEUR mEUR mEUR mEUR mEUR m
Slide 11: Verkkokauppa.com's gross margin and fixed costs
Verkkokauppa.com’s gross Gross margin % 43.6% margin and fixed costs Fixed costs % of sales 39.7% 30 EBITDA 30.2% 3.4% 25 27.5% 26.4% Cheaper prices 20 enabled by lowest 22.5% 22.9% fixed costs 15 18.7% EBITDA 16.8% 15.3% 15.8% 5.1% 10 10.2% 5 0% Retail in Finland Verk.com Qliro Group (SWE), Gigantt
Slide 12: Web visits last 18 months
Web visits last 18 months ”Verkkokauppa.com seeks more aggressive growth in 2017” gigantti.fi huuto.net power.fi expert.fi
Slide 13: Apuraha
Apuraha ”The company expects to improve its EBITDA margin in the medium term by increasing share of higher margin categories and private labels in the sales mix and the increa- sing the share of the Apuraha consumer financing services. ”
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 when compared to the
Slide 15: Largest owners on 31 Dec 2016
Largest owners on 31 Dec 2016 Shares % 1 Seppälä Sipi Samuli 22 487 496 49.9 2 Keskinäinen Eläkevakuutusyhtiö Ilmarinen 2 542 784 5.642 3 Keva 2 171 000 4.817 4 Keskinäinen Työeläkevakuutusyhtiö Varma 2 065 932 4.584 5 Rite Ventures Finland Ab 1 967 576 4.366 6 Op-Delta -Sijoitusrahasto 1 208 515 2.
Slide 16: Share development last 6 months
Share development last 6 months (31 Jan 2016)
Slide 17: While traditional retail sector is increasing gross margin and fixed costs ...
While traditional retail sector is increasing gross margin and fixed costs ... 30 EBITDA EBITDA EBITDA 3.1% 30.2% 3.4% ... we aim for lower 29.1% 3.5% 30.0% 25 27.3% 27.5% 20 25.7% prices and costs! 15 EBITDA EBITDA EBITDA 15.4% 3.1% 15.1% 3.6% 15.5% 3.8% 10 12.4% 11.5% 11.8% 5 0% Retail in Finland
Slide 18: Q&A
Q&A Upcoming events: • Q1/2017, Friday 28 April 2017 • Q2/2017, Friday 14 July 2017 • Q3/2017, Friday 20 October 2017 Quick links: • Investors English Summary - www.verkinvest.com • Company Releases mailing list in English - www.joinverk.com • Company Investor Webcasts - www.verklive.com • The inves
Slide 19: Product highlight - Evolver!
Product highlight - Evolver!
Slide 20: Thank you!
Sony PlayStation 4 Pro 1 Tt -pelikonsoli Hinta tai Apurahalla (23 kk) *verk.com/hintapuntari