Slide 1: Today's Storefront
Verkkokauppa.com Oyj Q1/2017, 28.4.2017, Samuli Seppälä, CEO TODAY’S STOREFRONT RETAIL IS GOING ONLINE. COME ALONG. Questions during or after the presentation - investors@verkkokauppa.com
Slide 2: Verkkokauppa.com Q1/2017
SYOTA TILAUSNUMEROS! LAITTEESEEN an varastokerroksista tilausni
Slide 3: Strong 20% revenue growth (€100.1m), EBITDA +27% (€3.4m)
Verkkokauppa.com Q1/2017 Strong 20% revenue growth (€100.1m), EBITDA* +27% (€3.4m) Growth boosted by updated strategy Q1 dividend €0.041 (previous Q €0.040) *) Comparable EBITDA
Slide 4: Verkkokauppa.com Q1/2017 Income Statement
Verkkokauppa.com Q1/2017 Income Statement Q1/2017 Q1/2016 Ch% Revenue, € million 100.1 83.5 +20% Gross profit 14.7 13.1 +12% Gross margin 14.7% 15.6% Personnel expenses* -6.1 -6.0 +1% Other opex -5.2 -4.4 +19% EBITDA* 3.4 2.7 +27% EBITDA margin* 3.4% 3.2% Depreciation and amortiz. -0.3 -0.3 -2% EBIT
Slide 5: Verkkokauppa.com Q1/2017 Balance Sheet
Verkkokauppa.com Q1/2017 Balance Sheet • Inventory 43.4 (39.3) million euros on 31.3.17, change +10%. • Cash flow from operat. activities 1-3/2017 was -9.4 (-4.2) million euros. • Capex 1-3/2017 were -0.2 (-0.2) million euros . • Equity ratio 43.9% (44.3%) • Cash 30.6 (20.8) million euros, change +4
Slide 6: We are the most transparent low cost online retailer
We are the most transparent low cost online retailer .. while being probably always cheaper
Slide 7: Lower costs
Finland’s best Lower self-service driven by technology costs Highly efficient Three logistics “Probably high volume always megastores We don’t sell cheaper” products that can’t be handled highly efficiently; Cheaper prices clothing, DIY, fresh food, sub-10e products enabled by lowest fixed costs
Slide 8: More aggressive
More aggressive 2017 Including launch of two Efficient new main Vantaa warehouse fully categories operational Cheaper prices Relocation/ enabled by lowest expansion of fixed costs two stores
Slide 9: Retail market in 2020
E-commerce share of total global retail sales from 2015 to 2020Global online share 16% forecast 2015-2020* Retail 14.6% 14% market in 2020 13% Share of e-retail sales 12% 11.5% Verkkokauppa.com will take large part of the 10% future online growth in Finland 10% (€40b) of current level of 8.7% 2016 1
Slide 10: Shopper preferences online or in-store
1% Shopper prefencences of retail sales online or in-store move online every year in Finland, from the current 10% or €4b Source: Market Track (USA)
Slide 11: Stores
Stores The expansion work at the Oulu store and relocation of Pirkkala store continues. Work also continues on the plans to open one or two more new stores. Both Oulu and Pirkkala stores will be fully operational by the end of the summer in their new formats. High volume megastores
Slide 12: Verkkokauppa.com Q1/2017 sales drivers
Verkkokauppa.com Q1/2017 sales drivers • Retail continues going online • Updated aggressive strategy • Verkkokauppa.com’s trusted concept • Market share gains in most categories 72.9 80.0 83.2 107.6 83.5 80.1 92.6 115.3 100.1 • CE-market development +9% mEUR mEUR mEUR mEUR mEUR mEUR mEUR mEUR mEUR •
Slide 13: Verkkokauppa.com's gross margin and fixed costs
Verkkokauppa.com’s gross Gross margin % margin and fixed costs Fixed costs % of sales 30 EBITDA 30.2% 3.4% 25 27.5% Cheaper prices 26.4% enabled by lowest 20 fixed costs 22.6% 22.9% 15 19.2% 18.7% EBITDA EBITDA 15.8% 14.7% 3.4% 15.6% 3.2% 10 12.5% 11.3% 5 0% Retail in Finland Verk.com Verk.com Qliro
Slide 14: Web visits last 18 months
Web visits last 18 months ”Company sees C2C marketplace as a new way to increase web visits” gigantti.fi power.fi expert.fi
Slide 15: Apuraha
Get more inches and pixels with Apuraha gives you more choices and extra time to pay.
Slide 16: Medium-term targets; Business outlook and financial guidance
Medium-term targets The company retains its existing targets: • The company strives to grow faster than its operating market and targets an annual revenue growth of over 10 per cent in the medium term. • The company’s objective is to improve its EBITDA margin in the medium term when compared to the
Slide 17: Largest owners on 31 Mar 2017
Largest owners on 31 Mar 2017 Shares % 1 Seppälä Sipi Samuli 22 487 496 49.9 2 Keskinäinen Eläkevakuutusyhtiö Ilmarinen 2 419 451 5.369 3 Keva 2 171 000 4.817 4 Keskinäinen Työeläkevakuutusyhtiö Varma 2 065 932 4.584 5 Rite Ventures Finland Ab 1 967 576 4.366 6 Fondita Nordic Micro Cap Placeringsf 1
Slide 18: Share development last 12 months
Share development last 12 months (26 Apr 2017)
Slide 19: ... we aim for lower prices and costs!
While traditional retail sector is increasing gross margin and fixed costs ... EBITDA ... we aim for lower EBITDA 30 EBITDA 30.0% 3.1% 30.2% 3.4% 29.1% 3.5% 25 27.3% 27.5% prices and costs! 25.7% 20 15 EBITDA EBITDA EBITDA EBITDA 15.4% 3.1% 15.1% 3.6% 15.5% 3.8% 14.7% 3.4% 10 12.4% 11.5% 11.8% 11.3%
Slide 20: Q&A
Q&A Upcoming events: • Q2/2017, Friday 14 July 2017 • Q3/2017, Friday 20 October 2017 Quick links: • Investors site - now fully bilingual - www.verkinvest.com • Company Releases mailing list - www.joinverk.com • Company Investor Webcasts - www.verklive.com Contacts: • Samuli Seppälä, CEO, samuli.sep
Slide 21: New category highlight - lights and lighting fixtures!
New category highlight - lights and lighting fixtures!
Slide 22: Thank you!
THANK YOU!