Slide 1: Verkkokauppa.com Q2 2019
Verkkokauppa.com Q2 2019 09.08.2019, Panu Porkka, CEO Finland’s most popular webstore NASDAQ FIRST NORTH Questions during or after the presentation - investors@verkkokauppa.com
Slide 2: Today's agenda
Today´s agenda • Q2/2019 report • H2 2019 outlook • Emerging consumer trends • Key takeaways • Q&A
Slide 3: Verkkokauppa.com Q2 2019
Verkkokauppa.com Q2 2019 Q2 revenue 108€m (+5%) Operating profit 0.2€m (-82%) Strong market share gains, while total market decreased by -0.5%* 2019 Q2 dividend 0.05€ (2018 Q2 0.046€) *) Source: GfK
Slide 4: Verkkokauppa.com Q2 2019 Income Statement
Verkkokauppa.com Q2 2019 Income Statement Q2 2019 Q2 2018 ch % Revenue, € million 107.8 102.4 +5% Gross profit 15.3 15.0 +2% Gross Margin 14.2% 14.7% Personnel expenses -8.1 -7.5 +8% Other opex -5.9 -5.3 +12% Operating profit 0.2 1.0 -81% Operating margin 0.2% 1.0% Net profit -0.2 0.5 -133% “Verkkok
Slide 5: Verkkokauppa.com Q2 2019 sales drivers
Verkkokauppa.com Q2 2019 sales drivers • Succesful summer season sales • Renewed marketing mix incl. nationwide Revenue TV-advertising continuing • Matching the price driven market to keep gaining market share* in a decreasing market 80.0 80.1 99.0 102.4 107.8 • Increased marketing budget to secure
Slide 6: Verkkokauppa.com 30/6/2019 Balance Sheet
Verkkokauppa.com 30/6/2019 Balance Sheet • Inventory 52.9 (53.3) million euros on 30/6/2019, change -1% • Cash flow from operating activities -13.4 (-23.4) million euros • Investments 1-6/2019 was 0.1 (0.6) millions euros • Equity ratio 26.5% (28.6%) • Cash 26.1 (21.3) million euros, no interest bea
Slide 7: Highlights in Q2 2019
Highlights in Q2 2019 • Launch of ball sports with over 1300 products • Start of brand campaing to raise brand awareness and develop the image of our assortment • Strong growth in seasonal product groups • Bikes, Electric Scooters, Grilling, Air Cooling products and fans
Slide 8: Verkkokauppa.com's gross margin and fixed costs
Verkkokauppa.com´s gross margin and fixed costs 15.0% 12.7% 2.8% 16.3% 11.7% 15.1% 12.3%
Slide 9: Verkkokauppa.com 2019 guidance - unchanged
Verkkokauppa.com 2019 guidance - unchanged 2019 guidance revenue between €500m - €550m (2018 €478m) and operating profit €11 - €17m (2018 €13.3 m). Medium-term targets sales growth between 10-20% per year, growing operating profit and operating margin of 2.5-4.5%. Policy of paying out growing, quart
Slide 10: Outlook for H2/2019
Outlook for H2/2019 • Consumer Electronics (CE) market expected to remain price driven and competitive, total market likely not to grow in H2 • Outlook on Finnish economy (GDP +1.6% 2019 *) • New categories will attract new customer groups to the website and stores • Planning for the upcoming season
Slide 11: Verkkokauppa.com's targets and category developments
Verkkokauppa.com´s targets and category developments Target to be leading retailer in the Nordics • Continuous development of the wide and attractive assortment • Keeping our customer promise “Probably always cheaper” in all major categories • Increased Private Label share of product assortment to s
Slide 12: Emerging Consumer Trends
Emerging Consumer Trends By 2025, more than half the world will have grown up in A DIGITAL FIRST MINDSET Millennials are 24% of global population 53% of Belgians will be Millenials or younger Goo le Source: https://www.populationpyramid.net/sweden/2025/ P pop py!
Slide 13: Emerging Consumer Trends
Emerging Consumer Trends #1 priority is to improve MOBILE SITE SPEED Sessions © Bounce rate 8 Bounce rate (%) 24°27 30 33 46 99 42 45 48 51 Load time (in seconds) 4 57 160 621 G6 69 72 75 7e 81 G4 87 90 93 G6 99
Slide 14: Emerging Consumer Trends
Emerging Consumer Trends Ecommerce is big in dollar terms Holic ellen lite} CAS Sy Quarterly US ecommerce revenue ($bn) 6 150 5 4 100 5} 2 50 0 Ecommerce 9% 0 Mar 99 Mar 02 Mar 05 Mar 08 Mar 11 Mar 14 Mar 17 Retail
Slide 15: Web visits last 12 months (desktop and mobile)
Web visits last 12 months (desktop and mobile)
Slide 16: Key takeaways
Key takeaways • Verkkokauppa.com only one out of top-3 CE-retailers to grow during 2018 • Revenue growth continuing despite weak market • Aggressive market share growth in a price driven market • Faster than market growth will need investments in pricing and marketing • Profitability expected to be
Slide 17: Xiaomi Roborock
Xiaomi Roborock 2 -pdlynimurirobotti
Slide 18: Thank you and Q&A
Thank you and Q&A Upcoming events in 2019: • Q3/2019, Friday 25 October 2019 Links: • Investors site - www.verkinvest.com • Company Releases mailing list - www.joinverk.com • Company Investor Webcasts - www.verklive.com Contacts: • Panu Porkka, CEO panu.porkka@verkkokauppa.com • Jussi Tallgren, CFO,
Slide 19: 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