Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Q2 2020 Earnings Presentation
22 slides from Verkkokauppa.com Oyj's earnings presentation, Jul 24, 2020
Slide 1: Verkkokauppa.com Q2 2020
Verkkokauppa.com Q2 2020 Finland’s most popular webstore 24.7.2020 | Panu Porkka Questions during or after the presentation - investors@verkkokauppa.com
Slide 2: Today's Agenda
Today’s Agenda • Key Figures Q2/2020 • Sales and Profitability Development • Competitive Advantage’s • Market Outlook 2020 • Key Takeaways • Q&A 2 23.7.2020
Slide 3: Income Statement Q2
Income Statement Q2 EUR million Q2/2020 Q2/2019 Change, % Revenue 123.1 107.9 14.1% Gross profit 21.4 15.3 39.7% • 26th consecutive growth quarter Gross margin 17.4% 14.2% 22.4% Personnel expenses -8.4 -8.1 3.7% • Record Operating Other opex -7.5 -5.9 27.5% profit, increase of +4.2meur Operating pro
Slide 4: Sales Development in Q2
Sales Development in Q2 140 Revenue, € million 123.1 120 • Sales channel development driven by 107.9 strong web sales (web visitors Q2 +33%) 102.4 99.0 100 • During Q2 the number of new online customers grew by +39% 80 • Good availability and multiple delivery options meeting our customers' needs 60
Slide 5: Profitability Development in Q2
Profitability Development in Q2 • Sales mix having a positive impact on margin • Strong sales increase in higher margin categories • Improved stock turnover • Optimized online marketing to build up exposure and traffic 5 23.7.2020
Slide 6: Balance Sheet & Cash Flow 30.6.2020
Balance Sheet & Cash Flow 30.6.2020 • Inventory 56.7 (52.9) million euros on • Cash flow from operating activities 1-6/2020 +1.0 (-13.4) million euros • Investments 1-6/2020 were 0.7 (0.8) million euros • Cash 34.9 (26.1) million euros • Equity ratio 27.4% (27.7%) • Undrawn revolving credit faciliti
Slide 7: 2020 Guidance - updated
2020 Guidance - updated • Revenue Operating profit • €520m - €545m €13m- €18m (2019 €504m) (2019 €11 m) • Prior guidance Revenue €510m-€530m and Operating profit €12m-€15m 7 23.7.2020
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: Nasdaq Helsinki
Nasdaq Helsinki • June 5, 2020 Verkkokauppa.com shares listed on Nasdaq Helsinki’s Official List • Opportunity to reach new potential owners and develop company’s awareness through Nasdaq Helsinki • Better exposure for foreign investors 9 23.7.2020
Slide 10: 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 • 37 million visits during H1 • Cornerstone in Finnish retail, built to utilize changing environment and market situation • Local hero ready for the Amazon opportunity leading i
Slide 11: Fast and Seamless Customer Experience
Fast and Seamless Customer Experience • Search engine updated, wisdom of the crowd gives better results with fewer search words • New Product Information system deployed improving search with more attributes • New Customer Data Platform up and running for better customer segmentation • Online Outlet
Slide 12: Wide Assortment and Best Availability
Wide Assortment and Best Availability • Launch of cordless outdoor power tools in April • Lots of new smaller categories and new brands added to the assortment • Jacuzzis, Minn Kota Trolling motors, Garden pools, E- scooters, Webasto charging stations, Sonos audio products, DJI Enterprise drones, Tr
Slide 13: Development of Delivery Options
Development of Delivery Options • Same day deliveries • 3h delivery price reduced from 39,99€ to 24,99€ in January • Same day delivery as a new option in great Helsinki area since January and in Tampere region since June (16,99€) à +665% growth in same day deliveries during Q2 • Strong growth in dem
Slide 14: Key Development Priorities in 2020
Key Development Priorities in 2020 • Maintaining safety, securing operations and reacting to changing market situation due to COVID-19 • Continuing brand marketing to increase awareness and top-of-mind to secure future growth and maximize opportunities • Development of superior product information c
Slide 15: Market Outlook
Market Outlook :
Slide 16: Market Development
Market Development Consumers who have shopped online in the previous two months %, by category and country • Shift to online can be seen in all Nordic countries • In Finland 67% have shopped online during the pandemic* • 35% of Finns have shifted to a higher share of online shopping during the pande
Slide 17: Changing Consumer Behaviour
Changing Consumer Behaviour Retail going online Fast and seamless Multible delivery options Social responsibility New customer groups experience Expectations for same Support your local – introduced to web Mobility the first option for day and next day trend increasing everyday most consumers delive
Slide 18: Key Takeaways
Key Takeaways • Solid performance across all • Uncertainties regarding H2 due to operation in H1 market and COVID-19 • COVID-19 impacting consumer development demand in several categories and • Guidance updated for 2020 due to shifting sales towards online strong H1 • Improved category management •
Slide 19: GZR Progressiv-e 275+ electric bike, 19"
GZR Progressiv-e 275+ -sahképyéra, 19"
Slide 20: More Information
More Information Contacts Links Upcoming events in 2020 Panu Porkka, CEO Investors site Q3/2020, Friday 23 October 2020 panu.porkka@verkkokauppa.com www.verkinvest.com Mikko Forsell, CFO Company Releases mailing list mikko.forsell@verkkokauppa.com www.joinverk.com IR Company Investor Webcasts invest
Slide 21: 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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