Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Q3 2018 Earnings Presentation
20 slides from Verkkokauppa.com Oyj's earnings presentation, Oct 26, 2018
Slide 1: Verkkokauppa.com Q3 2018
Verkkokauppa.com Q3 2018 26.10.2018, Panu Porkka, CEO TODAY´S STOREFRONT RETAIL IS GOING ONLINE. COME ALONG. Questions during or after the presentation - investors@verkkokauppa.com
Slide 2: Agenda
Agenda • Q3/2018 • 2018 outlook • Market development and trends • Key takeaways • Q&A
Slide 3: Verkkokauppa.com Q3 2018
Verkkokauppa.com Q3 2018 Q3 revenue €117m (+11%) EBITDA* €3.7m (+77%) Market share gains in most categories**, up to 40% in a certain category Q3 dividend €0.047 (Q2 2018 €0.046) *) Comparable EBITDA **) Source: GfK
Slide 4: Q3 2018 Income Statement
Verkkokauppa.com Q3 2018 Income Statement Q3 2018 Q3 2017 Ch % Revenue, € million 116.8 105.4 +11% Gross profit 17.4 13.9 +25% Gross Margin 14.9% 13.2% Personnel expenses -6.8 -5.7 +19% Other opex -7.0 -6.1 +15% EBITDA 3.7 2.1 +77% EBITDA margin 3.2% 2.0% Operating profit (EBIT) 3.4 1.7 +96% Net pro
Slide 5: Q3 2018 sales drivers
Verkkokauppa.com Q3 2018 sales drivers • Additional campaigning and marketing • Aggressive pricing • Raisio megastore opened March 8 • Retails continues going online • Finnish economy returning to growth, GDP +3.0% 2018* 67.9 83.2 92.6 105.4 116.8 • Tough CE market** in 7-8/2018 mEUR Q3/14 mEUR Q3/1
Slide 6: 30/9/2018 Balance Sheet
Verkkokauppa.com 30/9/2018 Balance Sheet • Inventory 52.3 (47.0) million euros on 30/9/2018, change +11.3% • Cash flow from operating activities -18.4 (-4.1) million euros • Investments 1-9/2018 was 1.0 (1.2) millions euros • Equity ratio 38.0% (40.2%) • Cash 26.0 (29.9) million euros, no interest b
Slide 7: Highlights in Q3 2018
Highlights in Q3 2018 • Larger campaign themes with wide assortment of product categories • Successful launch of new iPhone Xs • Esports events in all stores • Events in Verkkokauppa.com stores showcasing our product diversity (Hauvantai, Tenavatempaus) • Outlet auctions going strong
Slide 8: 1-9/2018
Verkkokauppa.com 1-9/2018 1-9/2018 1-9/2017 Ch % Revenue, € million 321.5 304.4 +5.6% Gross profit 48.3 42.0 +15% Gross Margin 15.0% 13.8% Personnel expenses -21.1 -17.8 +19% Other opex -20.6 -17.1 +20% EBITDA 6.8 7.1 -4.9% EBITDA margin 2.1% 2.3% Operating profit (EBIT) 5.8 6.1 -5.4% ”Higher revenu
Slide 9: 2018 outlook
Verkkokauppa.com 2018 outlook 2018 guidance revenue between €460m - €500m (2017 €432m) and comparable EBITDA €11 - €14m (2017 €13 m). Medium-term targets of net sales growth of 10-20% per year, growing EBITDA and EBITDA margin of 3-5%. Policy of paying out growing, quarterly dividend.
Slide 10: Growth drivers for H2/2018
Growth drivers for H2/2018 • Positive outlook on Finnish economy (GDP +3.0% 2018 *) • Q4 CE market expected to remain tough and competitive (7-8/2018 +1.9% **) • Increasing market shares in existing categories • Improvement of brand marketing, media mix and added campaigning • Fourth megastore in Ra
Slide 11: 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. • Target to be Top 3 e-tailer in each category in Finland • New categories are planned for 2019 • “Probably always cheaper” pri
Slide 12: Verkkokauppa.com's gross margin and fixed costs
Verkkokauppa.com´s gross margin and fixed costs 20% 15% 2.6% 4.7% 3.0% 2.5% 2.0% 10% 16.0% 14.5% 13.2% 14.4% 13.8% 11.3% 11.9% 11.2% 11.4% 11.3% 5% 0% Q1 2017 (sales +20 %) Q2 2017 (sales +24 %) Q3 2017 (sales +14 %) Q4 2017 (sales +10 %) Verkkokauppa.com 2017 (sales 16%) 20% 15% 2.3% 0.7% 3.2% 10%
Slide 13: Business model with lower fixed costs
Verkkokauppa.com´s business model with lower fixed costs 35% 30% 30.3% 25% 27.5% 25.9% 25.0% 20% 20.9% 20.6% 20.6% 18.9% 15% 14.9% 14.4% 10% 11.7% 11.4% 5% 0% Retail in Finland (w/o cars) Verk.com Q3 2018 Verk.com 2017 Gigantti 2017/2018 Power Finland 2017 Amazon EU SARL 2016 2016 (total €37b) (sale
Slide 14: Global online share forecast 2015-2021
Global online share forecast 2015-2021* E-commerce share of total global retail sales from 2015 to 2021 20% 18% 17,5 % 2016 Retail e-commerce shares: Finland 10%, 16% 15,5 % UK 17%, USA 14%, Germany 14% 14% (source: CRR) 13,7 % Verkkokauppa.com aims 11,9 % to take large part of 12% retail (~€40b) go
Slide 15: Mobile users are growing
Mobile users are growing Yes, i have bought online using mobile device in the last 60% 50% 40% 30% 50% 51% 46% 20% 38% 31% 10% 21% 0% 15-24 years 25-34 years 35-44 years 45-54 years 55-65 years 66-75 years ”40 % of Finnish have used mobile device for online shopping during the last three months. ” S
Slide 16: Web visits last 12 months (desktop and mobile)
Web visits last 12 months (desktop and mobile)
Slide 17: Key takeaways
Key takeaways • Revenue growth in Q3 +11% inline with company guidance • Aggressive market share growth in a competitive market • Raisio megastore contributing in sales growth • Growth in H2 significantly higher than H1 • Main focus is growth also for the future RETAIL IS GOING ONLINE. COME ALONG.
Slide 18: Air Hogs Thunder Trax
A Air Hogs Thunder Trax >- e> kauko-ohjattava ajoneuvo L.O.L.-ylldtyspallot LEGO Friends 41347 —Heartlake Cityn lomanviettopaikka ey LEGO Creative Toolbox Scruffaluvs-lemmikki Sisaltaa yli 840 osaa Yli 7-vuotiaille
Slide 19: Thank you and Q&A
Thank you and Q&A Upcoming events: • Q4/2018, Friday 15 February 2019 • Q1/2019, Friday 10 May 2019 • Q2/2019, Friday 9 August 2019 • Q3/2019, Friday 25 October 2019 Links: • Investors site - www.verkinvest.com • Company Releases mailing list - www.joinverk.com • Company Investor Webcasts - www.verk
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