Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Q2 2017 Earnings Presentation
21 slides from Verkkokauppa.com Oyj's earnings presentation, Jul 14, 2017
Slide 1: Verkkokauppa.com Q2/2017 – Today's Storefront
Verkkokauppa.com Q2/2017, 14.7.2017, Samuli Seppälä, CEO TODAY’S STOREFRONT RETAIL IS GOING ONLINE. COME ALONG. Questions during or after the presentation - investors@verkkokauppa.com
Slide 2: Strong 24% revenue growth, EBITDA +103%
Verkkokauppa.com Q2/2017 Strong 24% revenue growth (€99m), EBITDA* +103% (€2.6m) Market share gains in most categories Q2 dividend €0.042 (previous Q €0.041) *) Comparable EBITDA 2
Slide 3: Verkkokauppa.com Q2/2017 Income Statement
Verkkokauppa.com Q2/2017 Income Statement Q2/2017 Q2/2016 Ch% Revenue, € million 99.0 80.1 +24% Gross profit 14.5 12.3 +18% Gross margin 14.6% 15.3% Personnel expenses* -6.0 -6.3 -6% Other opex -5.8 -4.7 +25% EBITDA* 2.7 1.3 +103% EBITDA margin* 2.7% 1.6% Depreciation and amortiz. -0.3 -0.3 +6% EBIT
Slide 4: Verkkokauppa.com Q2/2017 Balance Sheet
Verkkokauppa.com Q2/2017 Balance Sheet • Inventory 47.7 (41.0) million euros on 30/6/17, change +16%. • Cash flow from operating activities -14.2 (-2.9) million euros. • Capex 1-6/2017 was -1.0 (-0.5) million euros . • Equity ratio 45.0% (44.2%) • Cash 21.9 (20.5) million euros, change +7%; no inter
Slide 5: Finland's largest, best known online retailer
Verkkokauppa.com 2016 revenue Verkkokauppa.com €371m is Finland’s largest, Three best known and 49m mega- stores online most visited visits Over online retailer. ( 2016) 550 Own employees consumer Low- financing cost online Growth focus since 1992 5
Slide 6: Verkkokauppa.com – growth since 1992
Verkkokauppa.com - growth since 1992 2016 revenue €371m 2016 EBITDA €14m* 31 Dec 16 cash €42m 31 Dec 16 debt €0 140 mEUR 154 mEUR 173 mEUR 192 mEUR 225 mEUR 238 mEUR 276 mEUR 344 mEUR 372 mEUR 2017/Q2 dividend 1992 .... 2008 2009 2010 2011 2012 2013 2014 2015 2016 €0.041 *) EBITDA excluding non-recu
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: Prefer to buy In-Store vs Online
Sources: Market Track and IRO Research, Feb/Jun 2017 Prefer to buy In-Store vs Online Categories for which US and Finnish shoppers prefer to buy In-Store/Online. In-Store USA FIN Online USA FIN Major appliances 85% 88% 15% 12% Tools/hardware 77% 89% 23% 11% Electronics 69% 79% 31% 21% Apparel/footwe
Slide 9: The new Apuraha XXL gives month payment period
The new Apuraha XXL gives 60 month payment period for all purchases over 1 500 €. Verkkokaupp7,, PROBABLY ALWAYS CHEAPER =
Slide 10: Q2/2017 sales growth drivers
Verkkokauppa.com Q2/2017 Growth every quarter sales growth drivers • Retail continues going online • CE market* development +7% (4-5/17) • Updated aggressive strategy • Market share gains in most categories • Finnish economy returning to growth • Verkkokauppa.com’s trusted concept 48.8 mEUR Q2/13 60
Slide 11: Gross margin and fixed costs
Verkkokauppa.com’s gross Gross margin % margin and fixed costs Fixed costs % of sales 30 EBITDA 30.2% 3.4% 25 27.5% Cheaper prices enabled by lowest 25.0% 25.9% 20 fixed costs 23.1% 22.1% 15 18.7% EBITDA EBITDA 15.5% 3.8% 15.8% 2.7% 14.6% 10 11.9% 11.8% 5 0% Retail in Finland Verk.com Verk.com Gigan
Slide 12: Gross margin and fixed costs (2014–2015)
EBITDA 3.1% Verkkokauppa.com’s gross Gross margin % Fixed costs % of sales 30.0% margin and fixed costs 27.3% 15 16.7% EBITDA EBITDA EBITDA EBITDA 3.9% 15.5% 2.0% EBITDA 14.6% 2.8% 15.2% 3.4% 15.4% 3.1% 10 12.9% 13.6% 11.8% 11.8% 12.4% Retail in 5 Finland (w/o cars) 2014 0% (total €38b) Verk.com Ver
Slide 13: Gross margin and fixed costs (2016–2017)
Verkkokauppa.com’s gross Gross margin % Fixed costs % of sales 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% 5 Power Finland 2016 Record launch EBITDA! 0% Verk.com Verk.com Verk.com Verk.com Verk.c
Slide 14: Low margin electronics retailer comparison
Gross margin % Fixed costs % of sales Low margin electronics 22.1% 23.1% retailer comparison 15 18.7% EBITDA 15.8% Margin avg. 14.6% 2.7% 10 • Mobile phones <5% 11.9% • Computers or Tablets 10-15% 5 • Components 10-15% 0% • Gaming consoles 10-15% Verk.com Gigantti Finland 2015/2016 Power Finland 201
Slide 15: Web visits last 18 months
*) Visits from Finland, estimate Web visits last 18 months Amazon* gigantti.fi power.fi 15
Slide 16: Medium-term targets and dividend policy; business outlook
Medium-term targets and dividend policy • The company strives to grow faster than its operating market and targets an annual revenue growth of over 10 per cent in the medium term. • The company’s objective is to improve its EBITDA margin in the medium term when compared to the level of 2013. • The c
Slide 17: Largest owners on 3 Jul 2017
Largest owners on 3 Jul 2017 Shares % 1 Seppälä Sipi Samuli 22 487 496 49.9 2 Keskinäinen Eläkevakuutusyhtiö Ilmarinen 2 419 451 5.369 3 Keva 2 171 000 4.817 4 Keskinäinen Työeläkevakuutusyhtiö Varma 2 065 932 4.584 5 Rite Ventures Finland Ab 1 967 576 4.366 6 Op-Delta -Sijoitusrahasto 999 378 2.218
Slide 18: Share development last 12 months
Share development last 12 months (13 Jul 2017) 18 18
Slide 19: Q&A and upcoming events
Q&A Upcoming events: • Q3/2017, Friday 20 October 2017 Quick links: • Investors site - www.verkinvest.com • Company Releases mailing list - www.joinverk.com • Company Investor Webcasts - www.verklive.com Contacts: • Samuli Seppälä, CEO, samuli.seppala@verkkokauppa.com • Jussi Tallgren, CFO, jussi.ta
Slide 20: Thank you! Get the big picture
THANK YOU! Get the big picture... propably 55” always cheaper* LG 55LF592V 55” Smart Full HD LED televisio *verk.com/hintapuntari 20
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