Slide 1: Strong growth in online and corporate sales
Verkkokauppa.com Oyj January – September 2021 Interim Report Strong growth in online and corporate sales 22 October 2021 | Panu Porkka, CEO, Verkkokauppa.com Oyj
Slide 2: January-September 2021 results
January-September 2021 results Business review Development in Q3 and January – September 2021 Key financials Strategic overview Strategic cornerstones Trust, assortment & experience - our value proposition Business outlook for 2021 and financial targets Key takeaways 2
Slide 3: 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 4: 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 Revenue EUR million 120.0 Online sales +18.7% 200 +9.1% 106.4 176 100.0 150 134 141 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 5: Q3/2021: Robust revenue growth
Q3/2021: Robust revenue growth EUR million 7-9/ 7-9/ Change, % 1-9/ 1-9/ Change, % FY 2020 2021 2020 2021 2020 33rd consecutive growth quarter Revenue 141.0 129.3 9.1% 405.6 377.6 7.4% 553.6 Gross profit 20.9 20.9 -0.3% 65.0 61.8 5.3% 88.4 Robust revenue growth of 9.1% Gross margin, % 14.8% 16.2
Slide 6: 1-9/2021: Verkkokauppa.com had a brisk growth during first 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 6 4.11.2021
Slide 7: Balance sheet & Cash flow
Balance sheet & Cash flow At the end of September 2021: • Inventories were EUR 79.2 (65.7) million • Cash flow from operating activities was EUR 2.0 (6.5) million • Investments during Q1-Q3 were EUR 3.0 (0.9) million • Cash, EUR 21.8 (36.5) million • Equity ratio 22.4% (25.9%) • Undrawn revolving cr
Slide 8: Update on strategy execution
Update on strategy execution
Slide 9: Strategy execution – developing our operations towards our targets
Strategy execution – developing our operations towards our targets Speed & Trust Assortment Experience Flexibility Frictionless omnichannel Delivery experience fuelled by Most transparent product The widest and most exciting experience built upon inhouse highest availability and information platform
Slide 10: 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 11: 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 12: New innovations released
New innovations released Experience New Search User interface Product recommendations Customer care Hundreds of new search Based on image similarity Order splitting, when all the filters Find and recommend items in the order are not Clear performance benefits items that looks the same immidiately av
Slide 13: Continuous progress in sustainability work
Continuous progress in sustainability work Trust GHG emissions We promote responsible working 700 scopes 1 & 2 conditions and environmental practices -17% throughout the supply chain 600 By joining amfori BSCI, we are able -30% 500 to further develop this aspect -36% especially in private label sour
Slide 14: Business outlook
Verkkokauppa «Com Business outlook
Slide 15: 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 16: 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 17: Key takeaways from 3rd quarter
Key takeaways from 3rd quarter Solid performance in our All focus on upcoming season 1 B2B business, sales +22,0% 4 and ensuring attractive campaigns fueled by good availability The online shift in retail 2 continued, our online sales 5 Our investment on automated increased by +18.7% Jätkäsaari logi
Slide 18: More Information
More Information Investor Relations contacts: Links Marja Mäkinen Visit our Investors website: Head of Investor Relations & www.verkinvest.com Corporate Communications marja.makinen@verkkokauppa.com Join mailing list for Company releases: Upcoming events in 2022-23 +358 40 671 2999 www.joinverk.com
Slide 19: This document is not an invitation to subscribe for or purchase any securities
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
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