TODAY’S STORE FRONT · Qliro Group (SWE), etailer, 2015 Q1 (sales +6%) 13.1% 16.1% 44.2% 29.4% Clas Ohlson (SWE) 2014/2015 Q3 (sales +6%) ”Additional growth opportunities remain

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Verkkokauppa.com Oyj Q1/2015, 24.4.2015, Samuli Seppälä, CEO

Questions during or after the presentation - investors@verkkokauppa.com

Strong first quarter at Verkkokauppa.com, revenue grew 20% at stagnant retail market

Verkkokauppa.com’s Q1/2015

Retail is going online

E-commerce is natural development andevolution of retail business .

Why are consumers buying online?

• E-commerceoffersconsumerslower prices enabledbylowerfixedoperatingcosts.

• Wider selection, without need to keep everything in stock and needing less capital.

• Quicker and easier way of purchasing andfindinginformation.

• Notallretailbusinesscanbeprofitable - even online.

€>0?

”15€ avg. savings

per 100€”

Verkkokauppa.com concept

LOWER PRICES“Probably always cheaper”

Capital efficiency enabled by the leanest

operating model

Price according with slogan - regardless

of sales channel

WIDERSELECTION

BEST 24 HAVAILABILITY

TRANSPARENT AND CUSTOMER CENTRIC  

Finland’s best source for product information,

including >150 000 reviews

Customer lifetime value maximisation - a happy

customer will return

• Revenue was 72.9 (60.6) million euros, +20%• Grossprofitwas11.7(10.1)millioneuros,+16%• Gross margin was 16.1% (16.7%) of revenue

• Personnelexpenses5.4(4.4)million,+24%• Depreciation and amortiz. 0.3 (0.2) million, +17%

• Otheroperatingexpenses7.6(3.4)million,+122%,• Otheropexw/oTeosto4.2(3.4)million,+23%

• Non-recurringitemsrelatingtotheTeostodispute was4.3millioneurosonprofitbeforetaxesand 3.4millioneurosonEBITDA. • EBITDAwas-1.3(2.4)millioneuros,-154%,• EBITDAw/oTeosto2.1(2.4)millioneuros,-8%

• Operatingprofitwas-1.5(2.1)millioneuros,-172%• Operatingprofitwas-2.1%ofnetsales(3.5%)• Netprofitwas-2.4(1.3)millioneuros,-279%

Verkkokauppa.com Q1/2015 P&L

Verkkokauppa.com Q1/2015 balance sheet• Inventory36.1(28.1)millioneuroson31.3.2015.• Cashflow1-3/2015was-19.5(-7.4)millioneuros.• Investments1-3/2015was0.4(0.1)millioneuros.

• Cash15.8(15.2)millioneuroson31.3.2015.• Interestbearingdebt1.8(2.6)millioneuroson31.3.2015.• Banklimits5.5millioneuros(notbeingutilizedon31.3.2015).

• Company currently utilizes almost all cash discounts provided by suppliers.

• Private label products typically have higher gross margin, but also higher stock turn around, which increases inventory value.

• Company has bought more inventory with better, older USD-rate.

Verkkokauppa.com Q1/2015main sales growth drivers

• Retail going online• Bolder,growthorientedpricing• Changes in department stores

• 23yearsofexperienceandvisibility• NASDAQFirstNorth-publicity• Brandmarketingincreased

We had sales increases and market sharegains in almost all categories.

”Thecompanybelievesthatretailwillcontinue going online and that Verkkokauppa.com’s sales will continue to grow during 2015 despite the weak economic environment.”

Q1 +20%

Q1/13Q2/13Q3/13Q4/13Q1/14Q2/14Q3/14Q4/14Q1/15

60.6mEUR

60.6mEUR

75.1mEUR

57.1mEUR

57.0mEUR

48.8mEUR

Revenue

68.0mEUR

86.6mEUR

72.9mEUR

Finnish e-commerce visit comparison

Source: Similarweb.com

Verkkokauppa.com’s gross margin and fixed costs

RetailinFinland(w/ocars)2013(total39B€)

29.1%

25.7%

Gross margin% Fixed costs% of sales30

25

20

15

10

5

0Verk.com 2014

(sales +16%)

15.4%

12.4%

EBITDA 3.1%

EBITDA 3.5%

Stockmann(FIN),2014

(sales -9.5%)

46.6% 47.2%

QliroGroup(SWE),etailer,2015Q1

(sales +6%)

13.1%16.1%

44.2%29.4%

Clas Ohlson (SWE)2014/2015Q3

(sales +6%)

”Additionalgrowthopportunitiesremainnotjustinnewcategories,butalsoinconsumerelectronicsproductsasFinnishdepartmentstoresare

lessening their focus on consumer electronics and some other categories”

Verk.com 2015/Q1

(sales +20%)

16.1%

13.2%

EBITDA 2.9%

Sources:StatisticsFinland,SoliditetandD&B.Grossmarginincludeschangesintheinventoryandoutsideservices.EBITDAiswithoutTeostoone-time-cost.

Verkkokauppa.com’s gross margin and fixed costs

Verk.com 2014/Q1

(sales +6%)

30

25

20

15

10

5

0

16.7%

12.9%

Verk.com 2014/Q2

(sales+24%)

15.5%

13.6%

EBITDA 2.0%

EBITDA 3.9%

Verk.com 2014/Q3

(sales +19%)

14.6%

11.8%

EBITDA 2.8%

Verk.com 2014/Q4

(sales +15%)

15.2%

11.8%

EBITDA 3.4%

Verk.com 2014

(sales +16%)

15.4%

12.4%

EBITDA 3.1%

”+1% gross margin increase =

+10% sales growth”

Gross margin% Fixed costs% of sales

Sources:StatisticsFinland,SoliditetandD&B.Grossmarginincludeschangesintheinventoryandoutsideservices.EBITDAiswithoutTeostoone-time-cost.

Verk.com 2015/Q1

(sales +20%)

16.1%

13.2%

EBITDA 2.9%

Verkkokauppa.com’s Q1/2015 fixed costs and margin development• Longtermlowpricesenabledbylowfixedcostsisoneofthekey growth elements for any e-commerce, including Verkkokauppa.com.

• New product categories typically have better gross margin compared oldercategories.Salesbyconsumerfinancingincreasesgrossmargin.

• Company has invested in several growth-initiatives, which required hiring new key personnel, carrying out more marketing activities, andlaunchinganumberofnewprojects.

• There’salwayssomevariationisthegrossmarginorfixedcosts per day, per month or per quarter.

• Even when launching new product categories or growthprojects,companyretainsitsmedium-term targetofimprovingEBITDA%from2013level.

Largest projects• Ownconsumerfinancingandcreditscoringservicesarestillbeing developed.Firstfirstfocusisincreditscoringandfrauddetection services.Currentconsumerfinancinghasincreased,whichhasresulted as more commissions paid to the company.

• Company is still developing own consumer-to-consumer-market place. C2Cisallaboutattractingmoretraffic,increasingadd-onsalesand salesofnewproductsandimprovingcustomerloyaltyandexperience.

• Current logistics development is mainly focusing in adding possibility to add more (leased) warehouses or direct shipments from suppliers. Flexibilityisthekey.Smallnumberdirectshipmentsaredonedaily.

• Development of better sales, inventory and availability forecasting engines,bothforinternal(purchasing)andexternaluse. Newend-useravailabilityforecastingenginelaunchedinJanuary 2015.

New categories• Now total 26 main categories and over 50 000 articles.

• ”Probablyalwayscheaperprices”,efficientslogisticsandleading lowfixedcostsbasearethefoundationforourplansfor introducing new product categories during 2015.

• Launch of three new main categories in January 2015 - babies and family, tools (diy) and luggage and travel. GPS/Sports-categoryhasbeenrenamedasSportsandNutrition.

• Latestlaunchofwatchesasnewmaincategoryon1.4.2015.

• Newcategorieswillnothavesignificantshortterm impactonsalesorprofitability.

• Looking also for stronger sales growth in our own brands and products (private labels).

Medium-term targetsThecompanyretainsitsexistingtargets:

•Thecompanystrivestogrowfasterthanitsoperatingmarketandtargetsan annual revenue growth of over 10 per cent in the medium-term.

•Thecompany’sobjectiveistoimproveitsEBITDAmargininthemedium-term compared to the level in 2013.

•Thecompanystrivestosecureasufficientequityratiotofinancegrowthofits business and targets to maintain an equity ratio of over 25 per cent taking into consideration the nature and seasonality of the company’s business.

Business outlookThecompanyexpectsnetsalesandoperatingprofit,excludingone-offexpenses,togrowduring2015comparedtopreviousyear.

Largest owners on 31.3.2015 Shares %1SeppäläSipiSamuli 3747916 49,9002RiteVenturesFinlandAb 769596 10,2463KeskinäinenEläkevakuutusyhtiöIlmarinen 384788 5,1234KeskinäinenTyöeläkevakuutusyhtiöVarma 344322 4,5845Op-Delta-Sijoitusrahasto 235278 3,1336Keva 198000 2,6367SijoitusrahastoEvliSuomiPienyhtiöt 109829 1,4628SkogbergVilleJohannes 105711 1,4079HartwallCapitalOyAb 82710 1,10110SijoitusrahastoDanskeInvestSuomenPien. 82000 1,09211 Op-Suomi Pienyhtiöt 76 000 1,012 12SrDanskeInvestSuomiYhteisöosake 60000 0,79913ThominvestOy 39000 0,51914FonditaEquitySpicePlaceringsfond 35000 0,46615KeskinäinenVakuutusyhtiöKaleva 24000 0,320

Share development (22.4.2015)

Q&AUpcoming events:• Q2/2015,Friday7August2015• Q3/2015,October232015

Quick links:• InvestorsEnglishSummary-www.verkinvest.com• CompanyReleasesmailinglistinEnglish-www.joinverk.com• CompanyInvestorWebcasts-www.verklive.com

Contacts:• Samuli Seppälä, CEO, samuli.seppala@verkkokauppa.com• JussiTallgren,CFO,jussi.tallgren@verkkokauppa.com• investors@verkkokauppa.com

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