Slide 1: Focus on cost efficiency in a declining market
Verkkokauppa.com Oyj – January-September 2023 Interim Report Focus on cost efficiency in a declining market 26 October 2023 | Panu Porkka, CEO | Verkkokauppa.com Oyj
Slide 2: 1-9/2023 results
1-9/2023 results › Market development › Q3 2023 performance › Strategy execution › Market outlook and guidance › Key takeaways 2 25.10.2023
Slide 3: Market development
Market development
Slide 4: Consumer confidence weakened in September
Consumer confidence weakened in September Index of wage and salary earnings* • In July-September, online shopping in Finland declined by nearly 40 percent, according to statistics compiled by Vilkas Group • According to Statistics Finland, consumer confidence indicator stood at -11.5 in September, h
Slide 5: Q3 & 1-9/2023 performance
Q3 & 1-9/2023 performance
Slide 6: Low demand after the summer impacting all channels
Low demand after the summer impacting all channels 2022 2023 Q3/2023 development Q1 Q2 Q3 Q4 Q1 Q2 Q3 Group revenue declined by -14.7% YoY and was EUR 117.4 million (137.8) -15% Customer segments Revenue, 154.9 EUR million 137.8 › Consumer segment declined by -11.1% 124.8 125.7 122.0 117.4 33.0 112.
Slide 7: Gross margin on a healthy level driven by assortment and pricing optimization measures
Gross margin on a healthy level driven by assortment and pricing optimization measures 2022 2023 Q3/2023 development Q1 Q2 Q3 Q4 Q1 Q2 Q3 Gross profit totaled EUR 18.7 million (20.1) and 15.9% of revenue (14.6%) 16.6% 16.7% 15.9% 15.4% 15.4% 14.6% 14.1% Gross profit and margin, EUR million › Gross m
Slide 8: Operative efficiency measures were offsetting the impact of low volumes into profit
Operative efficiency measures were offsetting the impact of low volumes into profit Q3/2023 development EUR million Q3/2023 Q3/2022 Change FY2022 › Despite continuing cost inflation, we Revenue 117.4 137.8 -14.7% 543.1 managed to reduce personnel and other operating costs in total by Gross profit 18
Slide 9: Successful inventory management
Successful inventory management Balance sheet & Cash flow on 30 September 2023 2022 2023 › Group inventory declined by -24% YoY and Q1 Q2 Q3 Q4 Q1 Q2 Q3 was EUR 72.0 million (94.8) › Investments during January-September Inventories, -24% were EUR 1.8 million (6.7). The main EUR million 91.4 94.8 86.
Slide 10: 1-9/2023 financial highlights
1-9/2023 financial highlights Revenue Gross profit Comparable EBIT Operating Cash flow EUR 352.2 million EUR 57.8 million EUR 4.6 million EUR 2.5 million -9.3% vs. 1-9/2022 (1-9/22: EUR 58.7 million) (1-9/22: EUR 2.8 million) (1-9/22: EUR -14.0 million) Gross margin 1-9/23: The items impacting compa
Slide 11: Strategy execution
ae. ‘Strategy execution =] Verkkokauppa Com
Slide 12: Profitability improvement program on track
Profitability improvement program on track Q1-Q3: Good progress continued and we Profitability improvement program: are ahead of the set plan capture full potential of core business quarterly estimate of impact timing Operational performance & Commercial excellence Over/under target Target EUR 5-8 c
Slide 13: Q3/2023 highlights in new strategic capabilities
Q3/2023 highlights in new strategic capabilities Highlights to follow Increased number of SKUs are priced automatically with a dynamic pricing Assortment solution. Work continues during Q4 Close to 100 percent of delisted stock has been now sold out New Verkkokauppa.com site was introduced during Q3
Slide 14: Vaihtokauppa offers an instant trade-in credit for the customers old device
Vaihtokauppa offers an instant trade-in credit for the customers old device, extends the lifespan of electronics Vaihtokauppa is an instant credit trade-in service through which 1. Instant credit to Tili customers can sell their old smartphones, laptops, tablets, and using smartwatches online or in-
Slide 15: Market outlook and guidance
Market outlook and guidance
Slide 16: Market outlook and short-term expectations
Market outlook and short-term expectations › Global macroeconomic factors such as inflation and increasing interest rates continue to weaken the purchasing power and investment ability of businesses towards the end of the year 2023 › There is ongoing uncertainty about the future outlook in relation
Slide 17: Financial guidance for 2023 – unchanged
Financial guidance for 2023 – unchanged In 2023, Verkkokauppa.com expects the revenue to decline and comparable EBIT to improve compared to 2022. In 2022, revenue was EUR 543.1 million and comparable EBIT EUR 3.5 million 17 25.10.2023
Slide 18: Key takeaways
Verkkokauppa _ PROBABLY ALWAYS CHEAPER Com
Slide 19: Key takeaways from the 3rd quarter
Key takeaways from the 3rd quarter › Market environment remained › Successful cost- and inventory management challenging during the third quarter in addition to healthy margin yielding in a small profitability improvement › With continued high interest rates, consumers continued to be cautious in ›
Slide 20: @verkkokauppa.com_sijoittajille
@verkkokauppa.com_sijoittajille Follow Verkkokauppa.com NEW Instagram account for our current and new shareholders! Please note, posts are in Finnish, targeted for our over 21,000 Finnish shareholders. 20 25.10.2023
Slide 21: Thank you
Verkkokauppa PROBABLY ALWAYS CHEAPER Com
Slide 22: More information
More information Upcoming Financial events Investor Relations Links Financial statements bulleting for the year 2023 on 8 February 2024 contacts Visit our Investors website www.verkinvest.com Marja Mäkinen The Financial Statements for 2023 during the Head of Investor Relations & week starting on
Slide 23: 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
Slide 24: Appendix
Appendix > Quarterly Key Figures
Slide 25: Quarterly Key Figures
Quarterly Key Figures Q1 Q2 2023 Q3 Q1-Q3 Q1 Q2 2022 Q3 Q4 Q1-Q4 Revenue, eur million 122.0 112.8 117.4 352.2 124.8 125.7 137.8 154.9 543.1 Gross profit, eur million 20.2 18.8 18.7 57.8 19.3 19.4 20.1 21.9 80.6 Gross margin-% 16.6 % 16.7 % 15.9 % 16.4 % 15.4 % 15.4 % 14.6 % 14.1 % 14.8 % EBITDA, eur
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