Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Naisten Oma Pörssiklubi (November 2021)
31 slides from Verkkokauppa.com Oyj's conference presentation, Nov 23, 2021
Slide 1: Empowering customers to follow their passion
Empovering customers to follow their passion 23 November 2021 | Naisten Oma Pörssiklubi, Pörssitalo Verkkokauppa.com Oyj | CFO Mikko Forsell | Head of IR Marja Mäkinen
Slide 2: Agenda
Agenda • Verkkokauppa.com today • Online shift • Our strategy • Latest financials • Business outlook 2 23.11.2021
Slide 3: A largest ecommerce player in Finland
A largest ecommerce player in Finland In 2020 Personnel: Assortment: 87 million visits The most sustainable 818 employees 70,000 products in our webstore webstore in Finland* We have a solid track Sales channels Customer segments record of growth 8% 554 18% 504 41% In 2021, Verkkokauppa.com 432 478
Slide 4: Frictionless omnichannel experience
Frictionless omnichannel experience Which of these online shops have you bought something from in the past Highest customer loyalty Fast 24/7 automated 12 months? customer service Verkkokauppa.com 33% >120,000 65% Zalando.fi 26% Gigantti.fi 24% Avg. monthly active users, of all customer contacts are
Slide 5: VERK has been trading for 17 months in the Nasdaq Helsinki
VERK has been trading for 17 months in the Nasdaq Helsinki In 2014, company was listed in Nasdaq First 13 % North, and moved in the main list of Nasdaq 53 % Helsinki Stock Exchange in June 2020. Private investors 14 % Corporates Market Cap is EUR 320 million (17 Nov 2021). Owner sector Financial and
Slide 6: Sustainability is at the core of our everyday business
Sustainability is at the core of our everyday business Environmental • 100% renewable electricity in own operations • Product return rate of only 1.0% • 316 tons of e-waste collected in 2020 We sell safe, long-lasting quality products and serve our Social customers in a knowledgeable, Strong empha
Slide 7: Online shift
Online shift
Slide 8: Consumer behaviour is changing faster and faster
Consumes behaviour is changing faster and faster AVG revenue per user in Finland 62% 73% +6.3% Online in Finland shopping Consumer do research €2 033 via smartphones 2020 1 online before major CARG €1 406 2020- purchase 1 2025 4.1M 74% 2020 2025 Ecommerce revenue is expected to show Estimated ecomme
Slide 9: Over the past years we have established superior delivery performance
Over the past years we have established superior delivery performance and have room to push further as customer needs evolve ◼ >2 day delivery ◼ Within next day ◼ Same day delivery ⚫ Store ⚫ Logistics center ⚫ Logistics hub & store combination We used to be more reliant on Our network covers majorit
Slide 10: Our strategy
Our strategy
Slide 11: Empower our customers to follow their passion
Our purpose is to Empower our customers to follow their passion Assortment Experience Speed & Flexibility Trust The widest and most exciting Frictionless omnichannel Delivery experience fuelled Most transparent product assortment in chosen experience built upon inhouse by highest availability and in
Slide 12: We have built clear competitive advantage in the 2020's ecommerce market
We have built clear competitive advantage in the 2020’s ecommerce market Local competitors Global benchmarks Netherlands Sweden Excellent customer experience and 25 19 15 n/a n/a strong brand (Brand index, 2020) ~34% Same day not Same day not Efficient fulfillment ~70% through Budbee available, next
Slide 13: Verkkokauppa.com ranked as a forerunner in customer experience and loyalty
Verkkokauppa.com ranked as a forerunner in customer experience and loyalty Customer Relationship Index study is the widest annual survey made to investigate customer experience and loyalty. Trust 3 700 consumers assessed the customer experience and loyalty to customers in different companies. Great
Slide 14: On a road towards a billion
By capitalizing on the online shift and leveraging our superior platform – we are on a road towards a billion Verkkokauppa.com revenue development, 2020-25E, €m ~100 ~1,000 ~100 ~250 FY20 Capitalize on the shift to Double the B2B New business FY25 online with our exciting business (incl. services, n
Slide 15: Our core categories will continue accelerated shift to online
1 2 3 Our core categories will continue accelerated shift to online Core categories Our core categories E.g. IT, Entertainment, Home appliances, Telecom are… …what we have built the Total addressable market size Online addressable market size business around for the 2020-25E, EUR billion 2020-25E, E
Slide 16: Evolving categories with attractive margins and lower online penetration
1 2 3 Evolving categories with attractive margins and lower online penetration Evolving categories Our evolving E.g. Toys, Sports & Nutrition, Home & Lighting, BBQ & Cooking, Baby & Family, Luggage & Travel, categories are… Pets. Excluding Food and Drink …where we already have Total addressable mark
Slide 17: Additionally, we continuously evaluate untapped opportunities
1 2 3 Additionally, we continuously evaluate untapped opportunities Untapped categories Untapped opportunities E.g. Home Interior, DIY & Garden, Health & Beauty, Light vehicles, Optics, Mechanical watches are… …where we have a systemized Total addressable market size Online addressable market size w
Slide 18: Our assortment is expanding
Our assortment is expanding Assortment We are expanding our assortment at a record pace Up to 100 new product launches daily We evaluate new possibilities on a daily basis pursuing to meet the evolving consumer demand We use growth hacking to find new trends to utilize in product development Current
Slide 19: Latest financials
Verkkokauprs -Com Q3 Latest fin
Slide 20: Solid 3rd quarter
Solid 3rd quarter Sales ✓ On-line sales continued to grow, +18.7% y-on-y ✓ Robust B2B sales with increase of +22.0% ✓ Good performance in core categories, such as TV and computers ✓ Also growth in several evolving categories like gaming, sports, toys and home & lighting ✓ Export sales turned back to
Slide 21: In Q3/2021, on-line sales grew by +18.7%
In Q3/2021, on-line sales grew by +18.7% 1) Market share gains in a competitive market Online shift continues EUR million EUR million Revenue 120.0 Online sales +18.7% 200 +9.1% 176 106.4 100.0 150 134 141 80.3 77.9 81.5 125 123 131 129 80.0 67.7 68.6 60.4 100 60.0 40.0 50 20.0 0 - Q1 Q2 Q3 Q4 Q1 Q2
Slide 22: 1-9/2021: brisk growth during first 9 months
1-9/2021: Verkkokauppa.com had a brisk growth during first 9 months +7.4% +21.8% +23.0% Revenue Online sales B2B sales + EUR 0.8 million +13.6% Comparable EBIT Earnings per share EUR 15.0 million EUR 0.25 22 23.11.2021
Slide 23: Business outlook
Business outlook
Slide 24: Short-term market outlook
Short-term market outlook Our operations are We believe to significantly As travelling opens, we will estimated to develop grow our market share in see a gradual opening of positively evolving categories export business We expect to further Component shortages and The strong balance sheet congested
Slide 25: Financial targets and dividend policy - unchanged
Financial targets and dividend policy - unchanged Guidance for 2021 Targets by the end Dividend policy Revenue: EUR 570–620 million of 2025 Our goal is to continue to (2020: EUR 554 million) Revenue: EUR 1 billion pay out a quarterly growing Comparable operating profit: EBIT margin: 5% dividend EUR
Slide 26: Key takeaways
Key takeaways We are born Online shift Most trusted Our winning online – clear provides huge brand and most strategy unlock market leader in opportunities visited site value growth growing business for future growth 26 23.11.2021
Slide 27: Thank You! Questions?
Thank You! Questions? Verkkokauppa |
Slide 28: Verkkokauppa.com - passionate pioneer of ecommerce
Verkkokauppa.com - passionate pioneer of ecommerce We are online-born – online is at the core of what we do, and what the company has been built around Startup Becoming a household brand in ecommerce Perfecting customer experience Road towards a billion 1998 2001 2011 2014 2016 2019 2020 Verkkokaupp
Slide 29: Quarterly growing dividend
Quarterly growing dividend Dividend from 2020 financial year EUR EUR Payment date 0.5 Dividend 0.056 0.45 0.45 Extra dividend 0.22 0.4 0.276 1) 7 April 2021 0.35 0.33 Additional Board’s authorization to pay quarterly dividend: 0.3 0.25 1st instalment 0.057 4 May 2021 0.21 0.21 0.198 0.2 0.17 2nd ins
Slide 30: Disclaimer
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 ad
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