Verkkokauppa.com Oyj · OMXHEX:VERK
Verkkokauppa.com Oyj — Q2 2022 Earnings Presentation
23 slides from Verkkokauppa.com Oyj's earnings presentation, Jul 14, 2022
Slide 1: B2B a bright spot amidst soft consumer demand
Verkkokauppa.com Oyj Half-year Report January-June 2022 B2B a bright spot amidst soft consumer demand 14 July 2022 | Panu Porkka, CEO | Verkkokauppa.com Oyj
Slide 2: Q2 results presentation
Q2 results presentation Business review Q2 highlights Key financials Strategy execution and market outlook Strategic cornerstones and development Business outlook for 2022 and financial targets Key takeaways 2
Slide 3: B2B a bright spot in a soft consumer demand
B2B a bright spot in a soft consumer demand Sales • Market continued challenging and consumer confidence low • Overall revenue declined by -3.7% • Online sales declined by -3.6% following lower total sales • B2B sales continued solid and increased by +12.6% • Export business declined by -8.7% • Core
Slide 4: Q2/2022: Revenue and margin impacting profitability
Q2/2022: Revenue and margin impacting profitability EUR million 4-6/ 2022 4-6/ 2021 Change, % 1-6/ 2022 1-6/ 2021 Change, % 2021 Revenue 125.7 130.5 -3.7% 250.4 264.5 -5.3% 574.5 Q2 revenue declined by -3.7% Gross profit 19.4 22.4 -13.6% 38.6 44.2 -12.5% 91.2 Tight competition Gross margin, % 15
Slide 5: Q2/2022: Corporate business continued in a growth path, +12.6%
Q2/2022: Corporate business continued in a growth path, +12.6% The consumer market continues soft Online sales1) declined by overall sales decline EUR million Revenue EUR million 180.0 -3.7% 120.0 -3.6% 160.0 124.8 125.7 100.0 140.0 76.4 75.1 120.0 80.0 100.0 60.0 80.0 60.0 40.0 40.0 20.0 20.0 - 0.0
Slide 6: Balance sheet & Cash flow
Balance sheet & Cash flow At the end of June 2022: • Inventories were EUR 86.9 (78.5) million • Cash flow from operating activities was EUR -16.5 (-5.5) million • Investments during Q2 were EUR 4.3 (1.7) million • E-Ville acquisition • Warehouse automation investment in Jätkäsaari • Cash, EUR 15.9 (
Slide 7: Company aims for carbon neutrality in own operations by 2025
Company aims for carbon neutrality in own operations by 2025 We concluded the company's first carbon footprint calculation for all emissions (scope 1, 2 & 3) Two main elements of total emissions (scope 1, 2 Emissions from our own operations (Scope 1 & 2) & 3) comes from indirect operations Goal of c
Slide 8: Strategy execution – focus on the best possible customer journey
Strategy execution – focus on the best possible customer journey
Slide 9: We empower customers to follow their passion
We empower customers to follow their passion 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 (online & assortment
Slide 10: The best possible customer experience
The best possible customer experience Experience • We are renewing our eCommerce platform to strengthen superior customer experience and our brand perception • We are aiming to achieve top-of-mind and consumer preference throughout several categories • Offering the most inspiring content, product da
Slide 11: Verkkokauppa.com recent recognitions
Verkkokauppa.com recent recognitions Trust Verkkokauppa.com won Google’s ‘Project BOX 3.0’ Omni-channel CX benchmark in Finland • In June, for the second year in a row, Verkkokauppa.com was awarded as one of the most innovative companies in Finland • The Finnish Innovation Index has been developed t
Slide 12: Brand position durable
Brand position durable Trust Best positioned brand in e-commerce in Finland, most visited Finnish webstore Exceptionally positioned in YouGov Recommend Ranking compared to retail comparisons YouGov Brand Buzz - Positive talk about brands YouGov Brand Recommend sector rankings Net Score 1-6/2022*
Slide 13: Next steps for warehouse automation
Next steps for warehouse automation Speed & Flexibility Autostore at full speed Next, Packaging automation • Autostore automation in Jätkäsaari was • Next phase is to build packaging finalized during the first quarter automation during Q3 • Automation improves the capacity of the • Automated packagi
Slide 14: The continuously evolving assortment
JULKINEN The continuously evolving assortment Assortment • E-ville integration and own brand product sourcing in China proceed as planned with first co-sourced products arriving in shelves during Q4 • Today our assortment close to 90 000 articles • We continue to expand in evolving categories with a
Slide 15: Services complements customer experience
JULKINEN Services complements customer experience Standalone store Maintenance and Recycling and & online services Installation & repair services disposal services Over 20 000 passport set-up services photos during Q2 +13% growth in sales with recycling pick-up +22% growth in sales with installation
Slide 16: Business outlook
Business outlook
Slide 17: Consumer confidence in June on the lowest level ever
Consumer confidence in June on the lowest level ever • Expectations concerning consumer's own finance and Finland's economy were very Consumer confidence indicator pessimistic • In June, consumers had very little intention to spend money on durable goods. The time was considered the least favorable
Slide 18: Short-term business and market outlook
Short-term business and market outlook The strong acceleration in There is uncertainty about the The company's growth prospects inflation and rise in the interest future outlook in relation to for the current year are rates, as well as the crisis in geopolitical conflicts in the world, considered ch
Slide 19: Guidance for 2022, Targets by the end of 2025, Dividend policy
Guidance for 2022 Targets by the Dividend policy Updated on 13 July end of 2025 We continue to pay out a Revenue: EUR 530–570 million quarterly growing dividend (2021: EUR 574.5 million) Revenue: EUR 1 billion Comparable EBIT: EBIT margin: 5% Dividend in 2022: EUR 8–14 million Fixed costs: <10% of E
Slide 20: Key takeaways from the 2nd quarter
Key takeaways from the 2nd quarter Soft consumer demand throughout Automated logistics hub in Jätkäsaari 1 the quarter, consumer uncertainties impacting purchasing behavior 4 was finalized We have taken actions to mitigate Good performance in pressure on margin, cost levels and 2 B2B sales, increase
Slide 21: 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: Financial events in 2022-23 +358 40 671 2999 www.joinverk.com
Slide 22: 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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