Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Investor Presentation (December 2019)
20 slides from Verkkokauppa.com Oyj's investor presentation, Dec 12, 2019
Slide 1: Verkkokauppa.com - Finland's most popular webstore
NASDAQ FIRST NORTH GM Verkkokauppa.com - Finland’s most popular webstore Panu Porkka, CEO 12 December 2019
Slide 2: Content
Content • Verkkokauppa.com in brief • Operating environment • Values and strategy • Financial highlights • Q&A
Slide 3: Finnish webstore pioneer since 1992
Finnish webstore pioneer since 1992 • Finland’s best known and most visited webstore • Four megastores in Finland 478 11% • Founded by Mr. Samuli Seppälä in his parent’s garage in 1992 million Revenue 2018, EUR Revenue growth in 2018 • “Probably always cheaper” customer promise • 65,000 products in
Slide 4: Operating environment
OPERATING ENVIRONMENT
Slide 5: Emerging consumer trends
Emerging consumer trends j iq ji retail soending Ecommerce is big in dollar terms ee Vol Ieee) ENA) Quarterly US ecommerce revenue ($bn) 6 150 5 4 100 3 Physical retail 2 50 Ecommerce 9% fe) Mar 99 Mar 02 Mar 05 Mar 08 Mar 11 Mar 14 Mar 17 Retail
Slide 6: Amazon speeds up online growth
Amazon speeds up online growth Development in online purchase preference, Finland 2017-2019 vs. Amazon countries Source: Kuulas Helsinki/IPG Mediabrands
Slide 7: Finnish eCommerce landscape
Finnish eCommerce landscape Which webstores have Finnish people bought goods from during the last 6 months: Source: Kantar TNS Internet panels June-July 2019
Slide 8: Finnish eCommerce landscape
Finnish eCommerce landscape Chosen by consumers as Finland’s ”Nevertheless we best domestic online store* pursue to be the best” • Brand, quality, price and assortment • Launched a new cloud-based • Customer experience search engine to continually personalize search experience • Combining e-commerce
Slide 9: Strategy
STRATEGY
Slide 10: Target to be leading retailer in the Nordics
Target to be leading retailer in the Nordics • Continuous develop the wide • Continuously improve and attractive assortment customer experience and increase the loyalty • Increase the share of Private Label in product assortment to • Proven business model to secure better profitability support futur
Slide 11: Financial highlights
FINANCIAL HIGHLIGHTS
Slide 12: Key figures
Key figures EUR million 1-9/2019 1-9/2018 Change, % 1-12/2018 Revenue 344.2 322.0 7% 477.8 Gross profit 51.7 49.1 5% 72.0 Gross margin 15.0% 15.2% -2% 15.1% Operating profit Operating margin Net profit Cash flow from operating 6.8 2.0% 4.6 -2.0 7.4 2.3% 4.9 -15.4 -8% -13% -6% 13.3 2.8% 9.3 8.9 “ Ver
Slide 13: Fixed costs as competitive advantage
Fixed costs as competetive advantage • Very low and scalable cost structure enables profitable growth and probably always cheaper prices vs. competitors
Slide 14: 2019 guidance
2019 guidance Revenue Operating profit €500m - €525m €11 - €15m (2018 €478m) (2018 €13.3 m) Medium-term targets: Sales growth 10 - 20% per year, growing operating profit and operating margin of 2.5 - 4.5% Policy of paying out growing quarterly dividend
Slide 15: Investment highlights
Investment highlights • Finland’s best known and most visited webstore • Gaining market share despite a very competitive market (1-9/2019 +7%) • Record profitability in Q3 due to sales mix, better conditions and healthy stock • Good financials (no debt and healthy cash position) • Steadily increasin
Slide 16: Thank you! Time for questions
THANK YOU! Time for questions
Slide 17: More information
More information Upcoming events in 2020: Links: Contacts: Q4/2019, Friday 14 February 2020 Investors site Panu Porkka, CEO www.verkinvest.com panu.porkka@verkkokauppa.com Company Releases mailing list Mikko Forsell, CFO www.joinverk.com mikko.forsell@verkkokauppa.com Company Investor Webcasts www.v
Slide 18: Shareholder base
Shareholder base Shareholder Shares % 1 Samuli Seppälä 22,290,096 49.56 2 Rite Ventures Finland Ab 2,172,576 4.82 3 Keva 2,171,000 4.82 4 Varma Mutual Pension Insurance Company 2,065,932 4.58 5 Nordea Nordic Small Cap (fund) 1,690,607 3.75 6 Ilmarinen Mutual Pension 1,067,723 2.27 Insurance Company
Slide 19: Steadily increasing quarterly dividend
Steadily increasing quarterly dividend EUR 0,07 0,06 0,05 0,04 0,03 0,02 0,01 * 0 3/2017 5/2017 7/2017 10/2017 4/2018 5/2018 8/2018 11/2018 4/2019 5/2019 8/2019 11/2019 * Includes an additional dividend of EUR 0.020 based on the EGM resolution
Slide 20: This document is not an invitation to subscribe for or purchase any securities or
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
Verkkokauppa.com — Investor Presentation (December 2019) on 6ix