Slide 1: Today's Storefront - Verkkokauppa.com Q4 2017
Verkkokauppa.com Q4 2017 9.2.2018, Samuli Seppälä, CEO TODAY’S STOREFRONT RETAIL IS GOING ONLINE. COME ALONG. Questions during or after the presentation - investors@verkkokauppa.com
Slide 2: Q4 revenue growth +10% (€127m), EBITDA -14% (€5.9m)
Verkkokauppa.com Q4 2017 Q4 revenue growth +10% (€127m), EBITDA* -14% (€5.9m) Market share gains in most categories, up to 3 percentage points** Q4 dividend €0.044 (previous Q €0.043) *) Comparable EBITDA **) Source: GfK 2
Slide 3: Verkkokauppa.com Q4 2017 Income Statement
*) Comparable Verkkokauppa.com Q4 2017 Income Statement Q4 2017 Q4 2016 Ch% Revenue, € million 127.4 115.5 +10% Gross profit 20.3 18.7 +9% Gross margin 16.0% 16.2% Personnel expenses* -7.2 -6.1 +19% Other opex -7.2 -5.7 +26% EBITDA* 5.9 6.9 -14% EBITDA margin* 4.7% 6.0% Operating profit (EBIT)* 5.7
Slide 4: Verkkokauppa.com Q4 2017 Balance Sheet
Verkkokauppa.com Q4 2017 Balance Sheet • Inventory 47.7 (44.0) million euros on 31/12/17, change +8%. • Cash flow from operating activities 20.1 (+18.6) million euros. • Investments 1-12/2017 was -1.7 (-1.0) million euros . • Equity ratio 33.8% (40.0%) • Cash 41.7 (30.8) million euros, change +35%;
Slide 5: Verkkokauppa.com 2018 guidance
Verkkokauppa.com 2018 guidance 2018 guidance revenue between €460m - €500m (2017 €432m) and comparable EBITDA €11 - €14m (2017 €12.9m). Policy of paying out growing, quarterly dividend. Medium-term targets of net sales growth of 10-20% per year, growing EBITDA and EBITDA margin of 3-5%. 5
Slide 6: Verkkokauppa.com rolling 12 months
*) Comparable Verkkokauppa.com rolling 12 months 2016 2017 Ch% Revenue, € million 371.0 431.8 +16% Gross profit 57.9 62.3 +8% Gross margin 14.4% 15.6% Personnel expenses* -24.4 -25.0 +3% Other opex* -19.6 -24.3 +24% EBITDA* 14.5 13.1 -10% EBITDA margin* 3.9% 3.0% Operating profit (EBIT)* 12.6 11.7 -
Slide 7: Retail market in 2020
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 2020 13% Share of e-retail sales 12% 11.5% Verkkokauppa.com aims take large part of 10% future growth of online retail 10% in Finland (~€40b), as it grows from curre
Slide 8: Verkkokauppa.com's targets and categories
Verkkokauppa.com’s targets and categories Continuous and systematic expansion into new categories that are fully suitable for low-cost online model and efficient logistics. • Medium-term target of 10-20% revenue growth and EBITDA margin of 3-5% is split between 26 main categories with some being mor
Slide 9: Verkkokauppa.com Q4 2017 sales growth drivers
Verkkokauppa.com Q4 2017 Growth every quarter sales growth drivers • Retail continues going online • CE market* development +6% (Q4/17) • New bigger Pirkkala and Oulu stores • Market share gains in most categories, up to 3pp • Finnish economy returning to growth, GDP +3% Additional future growth dri
Slide 10: New megastore in Raisio (Turku region) opening end of Q1 2018
New megastore in Raisio (Turku region) will be opened end of Q1 2018 10
Slide 11: Verkkokauppa.com's gross margin and fixed costs
Verkkokauppa.com’s gross Gross margin % margin and fixed costs Fixed costs % 30 EBITDA 3.8% 30.3% 25 27.5% Cheaper prices enabled by lowest 25.0% 25.9% 20 fixed costs 23.1% 22.1% 15 18.1% EBITDA EBITDA 16.0% 4.7% 15.6% 14.4% 3.0% 10 11.3% 11.4% 5 0% Retail in Finland Verk.com Verk.com Gigantti Power
Slide 12: Verkkokauppa.com's gross margin and fixed costs by quarter
EBITDA 3.8% 30.3% Verkkokauppa.com’s gross Gross margin % Fixed costs % 27.5% margin and fixed costs 15 EBITDA EBITDA EBITDA 1.6% EBITDA EBITDA 15.6% 3.2% 15.3% 15.6% 4.6% 15.3% 15.5% 3.8% 5.1% 13.7% 10 12.5% 11.8% 11.0% 10.2% Retail in 5 Finland Power Finland 2016 Record launch EBITDA! (w/o cars) 2
Slide 13: Web visits last 15 months (desktop and mobile)
Web visits last 15 months (desktop and mobile) gigantti.fi Amazon* power.fi *) Visits from Finland, estimate 13
Slide 14: Web Traffic from Finland (desktop only available)
Web Traffic from Finland (desktop only available) Gigantti.fi Amazon.com Power.fi 14
Slide 15: Largest owners on 31 Jan 2018
Largest owners on 31 Jan 2018 Shares % 1 Seppälä Samuli Sipi 22 487 496 49.900 2 Keskinäinen Eläkevakuutusyhtiö Ilmarinen 2 304 509 5.114 3 Keva 2 171 000 4.817 4 Varma Keskinäinen Eläkevakuutusyhtiö 2 065 932 4.584 5 Rite Ventures Finland Ab 1 967 576 4.366 6 Fondita Nordic Micro Cap Placeringsf 1
Slide 16: Share development last 12 months (8 Feb 2018)
Share development last 12 months (8 Feb 2018) http://www.nasdaqomxnordic.com/aktier/microsite?Instrument=HEX100175 16
Slide 17: ... we aim for lower prices and costs!
While the traditional retail Gross margin % sector is increasing gross Fixed costs % margins and fixed costs ... EBITDA EBITDA ... we aim for lower EBITDA 30 3.4% 3.8% 30.0% 3.1% 30.2% 30.3% 25 27.3% 27.5% 27.5% 20 prices and costs! 15 EBITDA EBITDA EBITDA EBITDA 15.4% 3.1% 15.1% 3.6% 15.5% 3.8% 14.
Slide 18: Thank you & Q&A
Thank you & Q&A Upcoming events: • AGM, Wednesday 21 March, 2018 • Q1/2018, Friday 4 May 2018 • Q2/2018, Friday 10 August 2018 • Q3/2018, Friday 26 October 2018 Links: • Investors site - www.verkinvest.com • Company Releases mailing list - www.joinverk.com • Company Investor Webcasts - www.verklive.
Slide 19: 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