Slide 1: Weak quarter in a declining market
Verkkokauppa.com Oyj Interim Report January-September 2022 Weak quarter in a declining market 27 October 2022 | Panu Porkka, CEO | Verkkokauppa.com Oyj
Slide 2: Q3 2022 results
Q3 2022 results Business review Q3 highlights Key financials Strategy execution and market outlook Strategic cornerstones and development Business outlook for 2022 and financial targets Key takeaways 2
Slide 3: Operating environment continuing challenging
Operating environment continuing challenging Sales • Market continued challenging and consumer confidence was low • Overall revenue declined -2.3% • Online sales declined -3.5%, following dampened discretionary shopping • B2B sales continued solid and grew +5.0% • Export business grew +35.1% • Core
Slide 4: Q3/2022: Sales mix and costs impacting profitability
Q3/2022: Sales mix and costs impacting profitability EUR million 7-9/ 2022 7-9/ 2021 Change, % 1-9/ 2022 1-9/ 2021 Change, % 2021 Q3 revenue declined Revenue 137.8 141.0 -2.3% 388.2 405.6 -4.3% 574.5 -2.3% Gross profit 20.1 20.9 -3.6% 58.7 65.0 -9.7% 91.2 Margin was impacted Gross margin, % 14.6
Slide 5: Q3/2022: General economic uncertainty impacting the consumer market
Q3/2022: General economic uncertainty (the cost-of-living crisis) impacting the consumer market The consumer market continued soft, export rebounded to a level of previous year Online sales1) declined following overall sales decline EUR million Revenue -2.3% EUR million 200.0 -3.5% 120.0 124.8 125.7
Slide 6: Balance sheet & Cash flow
Balance sheet & Cash flow At the end of September 2022: • Inventories were EUR 94.8 (79.2) million • Cash flow from operating activities was EUR -14.0 (2.0) million • Investments during Q3 were EUR 1.0 (1.0) million • Packaging automation , click&collect service among others • Cash, EUR 13.1 (21.8)
Slide 7: We ensure that our products are safe, long-lasting and responsibly produced
We ensure that our products are safe, long- lasting and responsibly produced ESG Responsibility barometer 86% ESG • In August, we carried out an extensive customer 94% appreciates help in survey on the responsibility of electronics and online value longevity making stores, and we received more than
Slide 8: Strategy execution – focus on the best possible customer journey
Strategy execution – focus on the best possible customer journey
Slide 9: We empower customers to follow their passion
We empower customers to follow their passion Speed & Trust Assortment Experience Flexibility Frictionless omnichannel Delivery experience fuelled by Most transparent product The widest and most exciting experience built upon inhouse highest availability and information platform (online & assortment
Slide 10: Q3/2022 highlights in strategic development
Q3/2022 highlights in strategic development Completed initiatives Details to follow Sourcing capabilities integrated from e-ville Dropshipment capability and integrations with two largest distributors and 10+ suppliers Assortment Comprehensive consumer study & customer segmentation to enable more pr
Slide 11: Simultaneously improving operations scalability and customer experience through automation
Simultaneously improving operations scalability and customer experience through automation Speed & Flexibility + + Autostore warehouse system Packaging automation Pick-up lockers • Autostore was commissioned in Jätkäsaari • Automated packaging equipment • Pick-up lockers launched to end- during Q1/2
Slide 12: Business outlook
Business outlook
Slide 13: Consumer confidence hit rock bottom in September, however, online shopping shift is here to stay
Consumer confidence hit rock bottom in September, however, the long-term shift to shopping online is here to stay 10.0 % − The energy crisis, inflationary pressures, and rising 7.8 % 7.8 % 7.6 % 7.9 % interest rates weakened consumers' confidence in 8.0 % 7.0 % 5.8 % 5.7 % their own finances, and co
Slide 14: Short-term business and market outlook
Short -term business and market outlook • There is uncertainty about the future outlook in relation to geopolitical conflicts, the crisis in Ukraine and the macroeconomics • The company's growth prospects for the current year are considered challenging • The strong acceleration in inflation and rise
Slide 15: Short-term focus on improving core performance while building foundations for future profitability
Given the market context, short-term focus will be improving our 15 core performance, while building foundations for future profitability Short term 1. A Optimize core retail business and capture 3. B Diversify business portfolio and themes full potential across the value chain increase platform opp
Slide 16: Guidance for 2022 & third quarterly dividend
Guidance for 2022 & third quarterly dividend We updated our guidance Third quarterly for FY 2022 on 24 October 2022 dividend Revenue: EUR 530–560 million The Board decided that a (2021: EUR 574.5 million) divided of EUR 0.063 per Comparable EBIT: EUR 5–9 million share will be paid on 7 (2021: EUR 20
Slide 17: Key takeaways from the 3rd quarter
Key takeaways from the 3rd quarter We will focus in strengthening our core business and improving profitability – prioritizing customer service experience Soft consumer demand In Jätkäsaari, the warehouse 1 throughout the quarter, uncertainties weakened 4 automation was finalized with automated pack
Slide 18: Thank you
5 Soe 7, PROBABLY ALWAYS CHEAPER = com. Z, he
Slide 19: More Information
More Information Upcoming Financial events Investor Relations contacts Links Marja Mäkinen Visit our Investors website Interim report for January – September 2022 on 27 October 2022 Head of Investor Relations & www.verkinvest.com Corporate Communications Financial statements bulletin for the yea
Slide 20: 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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