Verkkokauppa Com Oyj

Good morning everyone and welcome to Verkkokauppa.com's fourth quarter's income info. If you have any questions, you can send them to investors.verkkokauppa.com. The questions will be answered at the end of the presentation in the Q&A section. As always, the questions will be answered in the room by the CEO Jesper Blomster and the investor Elisa Forsman. As usual, I will start with a brief overview of the operating environment. After that, we will jump to the main topic of the report published this morning, which is the progress of the company's economic performance and strategy. After that, we will look at the results of this year, and at the end, we will look at the conclusions and questions that arise. If we start with the operating environment, actually throughout the year, the operating environment was quite challenging and difficult, but at the end of the year, we saw a bit of a flash in the pan. It's a bit of a double-edged sword, that consumer confidence in its own economic situation and its own employment situation is still at a very low level. Similarly, when we look at these larger markets, Management standards have been stable for a long time. Inflation is at a low level. Purchasing power has started to improve. We can see positive trends. At the end of the year, we also saw a small growth in the retail market and also in our consumer electronics market. But when we look at the market and our performance, we can say that we clearly won market and market shares. This is a good starting point for the first report of the morning. Trade development. Trade has increased by almost 20%, which is historically a very strong growth for us as well. The growth was wide-ranging. We saw growth in all channels, segments and categories. Suomenmarkkinassa pärjätään erittäin hyvin. Ennen kaikkea meidän strateginen kasvukanava, verkkokauppa kasvoi lähes 30%. In addition to winning market share in Finland, the company has been able to build new, profitable and sustainable growth also outside the Finnish border, in the Nordic countries and in a few Central European markets. In total, international growth is nearly 90%. In the Finnish market, our strategy is growing. The way to do business, the way to change consumer behavior, shows above all that quick operations are growing, and are being recommended in the past. In the last quarter, the growth of quick operations and trade-offs was nearly 90%, which is a very strong performance. And of course, in this last quarter, there are also two major season campaigns. During the Christmas season, Black Friday season and Black Friday campaign, our sales increased by 22%, which is clearly a stronger growth than our main competitors. The cash flow remained at a good level. Of course, cash euros increased significantly due to the increase in turnover. The sales cash percentage was at a good, stable level. Despite the fact that the time frame was very campaign-intensive, our campaign sales also increased significantly. We saw a tight price competition. We were able to We succeeded in the business plan, we got good commercial conditions with our goods operators, sensible, dynamic pricing, and all of these protected the supply chain. At the same time, our warehouse is on a very good level. Our warehouse circulation has improved, which means that there is no need to make excessive so that the stock levels could be sold out. The results show, of course, very good development of the exchange rate, at the same time with a good level. It is also good to note that the cost-effectiveness of the company is decreasing. Costs in relation to the exchange rate are developing moderately, i.e. the costs are not In relation to growth, volume-related costs are also in our business, and growth is seen mainly in growth quarters. All in all, we ended up with a turnover of 5.8 million euros, which is a significant improvement from the previous year. As I already mentioned, absolutely, the storage levels have increased. As a reminder at the end of the year, the equivalent of the balance sheet had to go down in the storage. At that time, we systematically drove the storage down, so that we were in a situation where we could buy a new, There was no need for that. On the contrary, we focus on profitability and growth in the beginning of the year. Of course, we are also excited if we estimate that there will be profitability in components or price pressure, then we will make actions at the beginning of the year, so that we can maintain good care of profitability throughout the year. The economic situation was strengthened in the past, if we can use such terms. The cash flow was good on a good level. It is good to note that the cash flow of the last year's comparison period significantly affected the downfall of the stock market, so without it, the stock market operated at the same level. The share price has systematically gone towards 25%, now over 23%. We have a very strong cash position of almost 50 million euros. Investments have been made of at least one million euros. Not because there is no goodwill or there are no targets. Our business model is so investment light, so it is not necessary to make large investments. Basically, investments are aimed at the usability of our network infrastructure, our architecture, our network trade, background systems and improving our quick-release capabilities. If we summarize the whole year, the development of the business exchange accelerated towards the end of the year, ending in a great 12.5% increase. At a good price level, Our business activity, which led to an extraordinary result of 14.8 million, is a significant improvement in revenue in the previous year with a good cash flow. In other words, we can all agree that the year has been economically successful. At the same time as, of course, it is extremely important to do economically sensible things, that in the company we develop business operations and build future growth and profitability capabilities. Our key task is to make it possible to change the trade sector in Finland, to speed up the transition of the online trade, e.g. with quick operation capabilities. Indeed, During the last quarter, the hours were increased by almost 90%, which tells us that we were able to get a change in terms of how the trade is done in Finland. The fact that it is growing is of course a great thing. Just as great is to say that customers are very satisfied with the service level at NPS, as high as 77%. In total, our quick-release capabilities already represent almost 25% of all our online sales, so that has made our business the largest in the industry. Se, että Suomessa pärjätään, voitetaan markkinaosuuksia, ei meille riitä. Se ei tyydytä meidän kasvuambitioita. Systemaattisesti ollaan rakennettu kyvykkyyttä kasvaa Suomen rajojen ulkopuolella. Nyt neljänneksen osalta hyvä suoriutuminen. growth on the outside of the Finnish border is nearly 90%. The main driver is the Swedish market, where growth is nearly 200%. In the Swedish market, we have two working cooperation models with market assets, CD-ON and Amazon. With Amazon, business has been done in a good way and we also succeeded in the Black Friday campaign. In addition, we have a few key activities in Central Europe. This will be continued throughout the year. Loppuvuonna on hyvä vetää yhteen myös vastuullisuustyötä. Vastuullisuus on meille sisäänrakennettu aina asiakkaan puolella. Meillä on ihan ok, että asiakas ei osta, kunhan asiakas ei tee turhia ostopäätöksiä ja sitä kautta ne ongelmat ratkaistaan asiakkaan etua varjelleen. Tästä hyvä A good statement is that even last year, only 0.7% of all products were sold. This means that we have a high quality selection, and that we serve our customers in our stores, always thinking about the customer's benefit. We are proud of that. At the same time last year, practically all of the emissions from our own operations were driven to zero, so we are moving to zero emissions. Naturally, we are moving the pressure to our goods operators and require them to carry their own cards in this important responsibility work. The next topic is very pleasant, and we are proud of it. The government has decided to present a share payment to the company meeting after three dry seasons. As a reminder, we have a share policy of 60-80% net profit. We aim to increase the amount of net profit. as a quarter share, and now according to the presentation, we would reach absolutely and in all, it is stated that 0.194 euros per cent from last year's income would be paid as a growing quarter share. So, at this point, thank you to all investors and owners for your trust and long-term interest. A few words about the expected value for this year. As I painted in the beginning, the expected value for this year is positive. We have also seen salary increases last year, and this year we will see that the interest rate ratio has been lightened. All major stocks are half the purchasing power. systematical recovery and according to the order of things, this is expected now that the consumers' savings cuts last year were again driven by the corona-preventing period, that part of this purchasing power is allocated to the consumption, to the retail, to the retail consumption and through that Of course, our expectation is that by winning market share and getting our share from that growth, this year will look positive. What we know is that we have a winning strategy, we have a winning business model, we have built credible skills to change the way of doing business in the domestic market and in addition to that, to seek profitable growth from outside Finland's borders. For this reason, it is no surprise that the company is also guiding the growth of the turnover in the last year. If I briefly summarize the whole presentation and a little bit of the year, the year ended with very positive marks, the trade-off accelerating to a good result. The strategy produces results, we win market shares, the whole year was very positive and for this reason the company returns to a share payment company. Pelon operating strategy has been implemented systematically for two years. We have built the skills to win market share in Finland and also to seek growth outside the borders of Finland. All in all, successful years. A big thank you to my team. In this regard, as a reminder, we intend to organize a capital market day in October, in which we will review the progress of our strategy, and perhaps at a more detailed level, what has been achieved so far. Now let's move on to the question section. We have received questions. Elisa, please go ahead.

Yes, I have one question. In the year 2025, the turnover increased by 12.5% and was supported especially by the company's key categories of IT and entertainment. When you expect a stronger sales growth in the year 2026, do you expect it to be of a wide variety, i.e. growth in each individual category, and are there significant differences between domestic and international growth expected?

Well, that was a multi-faceted question. Where to start? Well, if we start with the growth of the domestic market, for example, If you look at the last year, there were a few positive trends. There was the transition to HD, Windows 10, end of life, and the renewal of the hardware. But in the big picture, we haven't seen an absolute growth in consumption. We believe that the hardware, which is still Finnish consumers have an average of older people. This has been mainly renewed in 2020 and 2021. We believe that this has a positive effect on the whole, which is reflected positively in all categories. Of course, I can't promise or predict whether there will be growth at the individual category or subcategory level, but from a starting point of view, we are looking for growth on a large scale. We believe that growth will be achieved in the consumer segment and in the corporate segment. In addition, we have created quite a credible way to make international growth. The last four, in my opinion, were good expectations. I don't see any reason why it would stop there. The main reason is that the customers have equipment or stores that still sell them to the consumer in their own home market. It's not just a separate retail store, but a permanent business, especially in Sweden. We believe that the investments will also generate income this year.

Another question from the chat. Is there a special reason why Verkkokauppa.com should operate online or do you see a need for large investors?

Of course, a strong cash flow will give us a very strong position to operate in such a situation. We are quite fast in our purchase decisions. We are not necessarily tied to the same big companies' calendar. If we see a good opportunity to buy at a low price or we see that there is room in the market for some new product or new launch, we can act quickly. We have also negotiated our proposals in such a way that we have the opportunity to use cash payments, and with strong cash, cash payments can of course positively affect our cash flow. In that sense, growth always requires good balance. because it gives you the freedom to invest and to press the gas when the time is right. In that sense, we do need the cash. I'm not taking any investments from you. We have never taken any investments from you. At the moment, we don't have any active investment needs. What will happen to our own business? Last year we divested our consumer financing business because it was not our core business. We mainly want to focus on our core business, but whether there will be good investment targets this year, I don't know. If there are such things, of course we will look at them with interest. Good. It was nice to have questions at this point. Thank you all and I hope you have a very good day.