Slide 1: Verkkokauppa.com Oyj Q2/2014
Verkkokauppa.com Oyj Q2/2014 - 8.8.2014 Samuli Seppälä, CEO
Slide 2: Uniquely Positioned for Consumer Channel Shift
Uniquely Positioned for Consumer Channel Shift Verkkokauppa.com believes that its lower cost structure compared to other traditional retailers, inexpensive prices, position as the best-known Finnish online retail brand* and own IT-system are strengths that secure the Company’s position as a winner w
Slide 3: Verkkokauppa.com's customer promise
Verkkokauppa.com’s customer promise Price according with Capital efficiency enabled by the leanest LOW PRICES slogan - regardless operating model “Probably always cheaper” of sales channel WIDEST BEST 24 H ASSORTMENT AVAILABILITY Finland’s best source for Customer lifetime value TRANSPARENT AND maxi
Slide 4: Everyday Online Retail Company
Everyday Online Retail Company • We want to be with the consumer - every day. • We must give more reasons to consumers to visit us - every day. • Company plans to establish food & drink purchasing team during fall. • Company sees that instead of opening new stores, there is more need for new types o
Slide 5: Verkkokauppa.com Q2 main growth drivers
Verkkokauppa.com Q2 main growth drivers +24.2% • ”Probably always cheaper prices” • Digitalization / retail going online Revenue • 22 years of experience • First North IPO -publicity in April • Windows XP -support ended in April 57.1 48.8 57.0 75.1 60.6 60.6 • Launch of PINS-loyalty card in May mEUR
Slide 6: PINS
PINS Almost one million PINS-card holders. (activated cards)
Slide 7: Verkkokauppa.com's revenue
Verkkokauppa.com’s Strictly private and confidential revenue Established in 1992, Verkkokauppa.com has evolved from a pioneer in online retail into a Finnish market leader in multichannel retail Continuous growth has enabled Verkkokauppa.com to evolve into a powerhouse in Finnish consumer electronic
Slide 8: Q2/2014
Verkkokauppa.com’s Q2/2014 • Verkkokauppa.com revenue grew by 24.2%. • Verkkokauppa.com’s revenue and profitability developed very well during the second quarter due to inexpensive prices, digitalization and retail business moving online. • The Company also increased significantly its brand marketin
Slide 9: Q2/2014
Verkkokauppa.com’s Q2/2014 • At the same time the Company’s typical challenges are in managing growth and ensuring efficient logistics and a good product availability and a good customer experience. • The Company is also concerned about current developments in the retail business in Finland and the
Slide 10: Q2/2014
Verkkokauppa.com’s Q2/2014 • Revenue was 60.6 (48.8) million euros, growth 24.2% • Operating profit was 1.0 (0.3) million euros, growth 222.9% • Operating profit was 1.6% of net sales (0.6%) • Net profit (loss) was -0.4 (0.1) million euros • Earnings per share were -0.05 (0.02) euros • Operating pro
Slide 11: Q2/2014 key ratios
Verkkokauppa.com’s Q2/2014 Key ratios 4-6/2014 4-6/2013 1-6/2014 1-6/2013 1-12/2013 Net sales, € thousands 60,620 48,807 121,178 105,860 238,013 EBITDA, € thousands 1,219 523 3,555 2,060 7,526 EBITDA, % 2.0% 1.1% 2.9% 1.9% 3.2% Operating profit, € thousands 982 304 3,092 1,615 6,640 Operating profit
Slide 12: Gross margin and fixed costs
Verkkokauppa.com’s gross margin and fixed costs 30 Gross margin% Fixes costs% of net sales 29.2% 25 25.2% 20 15 16.7% 15.7% 15.5% 10 13.1% 12.6% 12.9% 13.6% 12.7% 5 0 Retail in Finland Verkkokauppa.com Verkkokauppa.com Verkkokauppa.com Verkkokauppa.com 2012 2012 2013 2014/Q1 2014/Q2 Sources: Statist
Slide 13: Retail trade sales in Finland
Retail trade sales in Finland 1-6/2014 8 6 4 2 +14.5% 0 -0.1% -1.0% -1.9% -2 -2.9% -4 Finnish Finnish Finnish GfK 1-6/2014 Verkko- Sources: Retail Trade Retail Trade Retail Trade (CE-market kauppa.com 1-5/2014 5/2014 6/2014 Finland) 1-6/2014
Slide 14: Near future projects
Near future projects • Company plans to establish new customer financing team. The larger supply and wider use of customer financing services in particular may increase sales margins in the future. First results might be expected in 2015. • Company has currently open position for purchasing manager
Slide 15: NASDAQ:VERK
http://www.nasdaqomxnordic.com/aktier/microsite?Instrument=HEX100175&name=Verkkokauppa.com%20Oyj NASDAQ:VERK
Slide 16: Medium-term targets
Medium-term targets The company retains it existing targets: • The company strives to grow faster than its operating market and targets an annual net turnover growth of over 10 per cent in the medium-term. • The company’s objective is to improve its EBITDA margin in the medium-term compared to the l
Slide 17: Thank you!
Q&A Thank you! • Quarterly report 1–9/2014 (Q3 2014) on Friday 24 October 2014 • Financial year 2014 release on Friday 13 February 2015 Samuli Seppälä, CEO, samuli.seppala@verkkokauppa.com Jussi Tallgren, CFO, jussi.tallgren@verkkokauppa.com
Slide 18: Xbox One PlayStation 4
Xbox One PlayStation 4 499,90 429,90