Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — H1 2023 Earnings Presentation
27 slides from Verkkokauppa.com Oyj's earnings presentation, Jul 20, 2023
Slide 1: Solid implementation of profit improvement program continued
Verkkokauppa.com Oyj – January-June 2023 Half-year Report Solid implementation of profit improvement program continued 20 July 2023 | Panu Porkka, CEO | Verkkokauppa.com Oyj
Slide 2: H1 2023 results
H1 2023 results › Market development › Q2 & H1 2023 performance › Strategy execution › Market outlook and guidance › Key takeaways 2 19.7.2023
Slide 3: Market development
Market development
Slide 4: Consumer confidence unchanged during June
Consumer confidence unchanged during June Index of wage and salary earnings* • The salary index collapsed, biggest fall since 70´s energy crisis • Consumers’ expectations concerning economics were roughly unchanged in June. Intentions to spend money on durable goods weakened slightly compared to May
Slide 5: Verkkokauppa.com has become the leader in Finnish consumer electronics retail
In a challenging market, Verkkokauppa.com has become the leader in Finnish consumer electronics retail Revenue, latest published fiscal year, million EUR 543 525 319 Competitor #1 Competitor #2 01/2022- 05/2022- 01/2022- 12/2022 04/2023 12/2022 5 19.7.2023
Slide 6: Q2 & H1 2023 performance
Q2 & H1 2023 performance
Slide 7: The economic downturn continued to impact demand in all customer segments
The economic downturn continued to impact demand in all customer segments 2022 2023 Q2/2023 development Q1 Q2 Q3 Q4 Q1 Q2 Group revenue declined by 10.2% YoY and was EUR 112.8 million (125.7) -10% Revenue, Customer segments 154.9 EUR million 137.8 › Consumer segment declined by 10.3% 124.8 125.7 122
Slide 8: Solid gross margin driven by price and campaign optimization
Solid gross margin driven by price and campaign optimization 2022 2023 Q2/2023 development Q1 Q2 Q3 Q4 Q1 Q2 Gross profit totaled EUR 18.8 million (19.4) and 16.7% of revenue (15.4%) 16.6% 16.7% 15.4% 15.4% 14.6% 14.1% Gross profit and margin, EUR million › Gross margin improved due to optimized 20.
Slide 9: Clear profit improvement driven by numerous measures
Clear profit improvement driven by numerous measures implemented within the profit improvement program Q2/2023 development EUR million Q2/2023 Q2/2022 Change FY2022 › Decline in personnel costs was Revenue 112.8 125.7 -10.2% 543.1 mainly a result of the change Gross profit 18.8 19.4 -0.5 MEUR 80.6 n
Slide 10: Successful supply chain optimization
Successful supply chain optimization Balance sheet & Cash flow on 30 June 2023 2022 2023 › Group inventory declined by -20% YoY and Q1 Q2 Q3 Q4 Q1 Q2 was EUR 70.0 million (86.9) › Investments during H1 were EUR 1.3 million Inventories, -20% (5.7). The main investments were the EUR million 91.4 94.8
Slide 11: H1/2023 financial highlights
H1/2023 financial highlights Revenue Gross profit Comparable EBIT Operating Cash flow EUR 234.8 million EUR 39.1 million EUR 2.3 million EUR -0.4 million -6.2% vs. H1/2022 (H1/22: EUR 38.6 million) (H1/22: EUR 0.7 million) (H1/22: EUR -16.5 million) Gross margin H1/23: The items impacting comparabil
Slide 12: Strategy execution
ae. ‘Strategy execution =] Verkkokauppa Com
Slide 13: Profitability improvement program on track
Profitability improvement program on track Profitability improvement program: Q1-Q2: On track against plan capture full potential of core business quarterly estimate of impact timing Operational performance & Commercial excellence Over/under target Target EUR 5-8 cost savings million 4. Assortment o
Slide 14: Q2/2023 highlights in new strategic capabilities
Q2/2023 highlights in new strategic capabilities Highlights to follow First batch of SKUs are priced automatically with dynamic pricing solution Assortment Product assortment has been streamlined to approx. 70,000 SKUs and >90% of delisted stock has been sold out through H1/2023 efforts Inspirationa
Slide 15: Shopping experience taking leaps forward with our online site renewal
Shopping experience taking leaps forward with our online site renewal New home page, with personalized recommendations (categories and products) Upgraded category listing supporting ease of use Visual category pages offering relevant information and inspiration for shoppin Dynamic product listings t
Slide 16: One-hour express deliveries expanded to >600,000 residents
One-hour express deliveries expanded to >600,000 residents and the service is now available 24/7 › Doubled the delivery area, serving over 600 000 residents in Helsinki metropolitan area › Service available 24/7 hours, with improvements in Jätkäsaari operations and opening times › Customer satisfact
Slide 17: Market outlook and guidance
Verkkokauppa | ~~ Market ae | i outlook and _——— guidance \
Slide 18: Market outlook and short-term expectations
Market outlook and short-term expectations • Global macroeconomic factors such as inflation and the development of financial markets can weaken purchasing power and investment ability of consumers and corporates during H2 • There is ongoing uncertainty about the future outlook in relation to geopoli
Slide 19: Financial guidance for 2023 – unchanged
Financial guidance for 2023 – unchanged In 2023, Verkkokauppa.com expects the revenue to decline and comparable EBIT to improve compared to 2022. In 2022, revenue was EUR 543.1 million and comparable EBIT EUR 3.5 million 19 19.7.2023
Slide 20: Key takeaways
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Slide 21: Key takeaways from the 2nd quarter of 2023
Key takeaways from the 2nd quarter of 2023 › Continued high inflation and › During these tough times we have increasing interest rates have overtaken the market leader position in significantly impacted the purchasing Finland for the first time power › The largest renewal of our online shop is › We
Slide 22: Thank you
Verkkokauppa PROBABLY ALWAYS CHEAPER Com
Slide 23: More information
More information Upcoming Financial Investor Relations Links events contacts Visit our Investors website www.verkinvest.com Marja Mäkinen Head of Investor Relations & Interim report for January – September Corporate Communications Join the mailing list for Company 2023 on 26 October 2023 marja.mak
Slide 24: 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
Slide 25: Appendix
Verkkokauppa PROBABLY ALWAYS CHEAPER Com
Slide 26: Quarterly Key figures
Quarterly Key figures 2023 2022 Q1 Q2 Q1-Q2 2023 Q1 Q2 Q3 Q4 FY 2022 Revenue, eur million 122.0 112.8 234.8 124.8 125.7 137.8 154.9 543.1 Gross profit, eur million 20.2 18.8 39.1 19.3 19.4 20.1 21.9 80.6 Gross margin-% 16.6% 16.7% 16.6% 15.4% 15.4% 14.6% 14.1% 14.8% EBITDA, eur million 1.6 2.3 3.9 2
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