Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Q4 2019 Earnings Presentation
23 slides from Verkkokauppa.com Oyj's earnings presentation, Feb 14, 2020
Slide 1: Nasdaq First North GM
NASDAQ FIRST NORTH GM Panu Porkka, CEO 14 February 2020 Questions during or after the presentation - investors@verkkokauppa.com
Slide 2: Today's Agenda
Today’s Agenda • Performance during Q4/2019 and FY2019 • Market development and trends • 2020 guidance and outlook • Key takeaways • Q&A
Slide 3: Verkkokauppa.com Q4 Highlights
Verkkokauppa.com Q4 Highlights • Revenue 159.9 million euros (10–12/2018: 155.9), growth of 3% • Operating profit 4.5 (5.9) million euros • 2019 dividend 0.214 (0.198) euro per share Operating profit • Revenue 1-12/2019 504 million euros in Q4 2019, EUR
Slide 4: Income Statement Q4
Income Statement Q4 EUR million Q4/2019 Q4/2018 Change, % Revenue 159.9 155.9 +3% Gross profit Gross margin 22.2 13.9% 22.9 14.7% -3% -6% “ Verkkokauppa.com's year-on-year quarterly revenue has been Personnel expenses -9.1 -8.4 +9% growing for 24 quarters. Other opex -7.5 -7.6 -0.4% Operating profit
Slide 5: Balance Sheet Q4 2019
Balance Sheet Q4 2019 • Inventory 66.7 (65.9) million euros on 31/12/2019 • Cash flow from operating activities +9.7 (8.9) million euros million • Cash 42.5 (46.7) million euros • Undrawn revolving credit facilities 20 million euros • 23.4% (23.0%) equity ratio
Slide 6: Sales Development
Sales Development • Strong performance during Black Friday, record sales in all channels • Customer demand slow before and after Black Friday • Tax refund changes impacted mid December sales negatively • Posti’s strike had a negative impact on customer demand regarding deliveries 115.5 mEUR 127.4 mE
Slide 7: Marketing Highlights Q4
Marketing Highlights Q4 • Second phase of the brand campaign started in October • Additional marketing efforts in toys category to strengthen our position in the new market situation • Successful Black Friday campaign again broke all visitor and sales records
Slide 8: Brand Success – Buzz Rankings Finland's Top10
Brand Success – Buzz Rankings Finland’s Top10 • Verkkokauppa.com the only new brand to achieve TOP10 position during 2019 “ YouGov’s BrandIndex Buzz Rankings 2019 Buzz scores are calculated by asking members of the public daily if they’ve heard anything positive or negative about a brand over the pa
Slide 9: Verkkokauppa.com 1-12/2019
Verkkokauppa.com 1-12/2019 EUR million 1-12/2019 1-12/2018 Change, % Revenue Gross profit Gross margin 504.1 73.9 14.7% 477.8 72.0 15.1% 5% 3% -3% “ Verkkokauppa.com reached a new milestone as revenue broke 500M barrier Personnel expenses -32.6 -30.3 +8% Other opex -25.5 -23.7 +8% Operating profit 1
Slide 10: Key Priorities 2019 – Summary
Key Priorities 2019 – Summary What we said What we did • Ball sports category launched with over • New category launch in spring 1300 new products and A-brands • Start of brand marketing to increase • Record amount of visitors in web awareness and top-of-mind (72M / +28%) and listing among Finland’s
Slide 11: Market Outlook
Market Outlook
Slide 12: E-commerce Global Development
E-commerce Global Development E-commerce share of all retail sales • In 2019, e-retail sales accounted for 14 percent of all retail sales worldwide million • This figure is expected to reach 22 2019 14% percent in 2023* • Outlook on Finnish economy - Projected GDP 1.0% 2020** - Projected purchasing
Slide 13: Amazon Speeds Up Online Growth
Amazon Speeds Up Online Growth Development in online purchase preference, Finland 2017-2019 vs. Amazon countries Source: Kuulas Helsinki/IPG Mediabrands
Slide 14: Targets and Future Development
“ Targets and Future Development Verkkokauppa.com’s vision is to be a Nordic leader in retail through cost-efficiency, brand image, own ecosystem and scalable business model
Slide 15: Outlook 2020 – Profitability Improvement
Outlook 2020 – Profitability Improvement • Project to improve and automate product Better web conversion and SEO, faster to information management and processes market with category expansion • Building up compentence in drop shipment Scalability of assortment and and optimising supply chain optimiz
Slide 16: Category and Delivery Development 2020
Category and Delivery Development 2020 • Continuous development of • Active search for best delivery the wide and attractive and logistical solutions for assortment scalability • Several new high-end A-brands • Same day deliveries with cut under negotiations of at 2PM in greater Helsinki area from Q
Slide 17: 2020 Guidance
2020 Guidance Revenue between Operating profit €510m - €530m €12m- €15m (2019 €504m) (2019 €11 m) Medium-term targets: Sales growth 10 - 20% per year, growing operating profit and operating margin of 2.5 - 4.5% Policy of paying out growing quarterly dividend
Slide 18: Nasdaq Helsinki Listing – Next Milestone
Nasdaq Helsinki Listing – Next Milestone • Company to start evaluating transfer to the Nasdaq Helsinki main market • Natural step after being listed in First North since 2014 • Goal is to widen shareholder base, increase share liquidity and improve brand awareness i o i s Ra to re th sto r 4. Net sa
Slide 19: Key Takeaways
Key Takeaways • New milestone achieved as • Financial situation solid with revenue exceeds 500 meur a growing dividend mark • Company focuses on • Next milestone preparation for profitability while building up Nasdaq Helsinki listing competences for future scalability • Company listed for the first
Slide 20: Slide 20
Slide 21: Thank You!
THANK YOU! Time for questions
Slide 22: More Information
More Information Upcoming events in 2020: Links: Contacts: Q1/2020, Friday 24 April 2020 Investors site Panu Porkka, CEO Q2/2020, Friday 24 July 2020 www.verkinvest.com panu.porkka@verkkokauppa.com Q3/2020, Friday 23 October 2020 Company Releases mailing list Mikko Forsell, CFO www.joinverk.com mikk
Slide 23: This document is not an invitation to subscribe for or purchase any securities
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