Verkkokauppa.com Oyj Financial Statements Review for 1 Jan - 31 Dec 2023: Solid performance in a highly price-driven market in the fourth quarter

FINANCIAL STATEMENTS REVIEW for 1 January - 31 December 2023

SOLID PERFORMANCE IN A HIGHLY PRICE-DRIVEN MARKET IN THE FOURTH QUARTER

Verkkokauppa.com Oyj FINANCIAL STATEMENTS REVIEW 8 February 2024, 8:00 a.m. EET

Verkkokauppa.com arranges two virtual news conferences on a result publication day. The news conference in Finnish will be held at 10:00 am Finnish time. The news conference for analysts and institutional investors in English will be at 11:00 am Finnish time. Details of the events and how to participate can be found at the end of this release.

This is a summary of Verkkokauppa.com's Financial Statements Review for 1 January - 31 December 2023. The complete report is attached to this release and also available at https://investors.verkkokauppa.com/en

Unless otherwise stated, the comparison figures in brackets refer to the corresponding period in the previous year (reference period). Figures are unaudited.

October - December 2023 in brief

• Revenue was EUR 150.6 million (154.9)
• Gross profit was EUR 23.1 million (21.9) or 15.3 % of the revenue (14.1 %).
• Operating profit (EBIT) was EUR 1.8 million (0.8) or 1.2 % of revenue (0.5 %)
• Comparable operating profit was EUR 1.6 million (0.8) or 1.1% of revenue (0.5 %)
• Net profit was EUR 1.2 million (0.5)
• Earnings per share were EUR 0.03 (0.01)
• Investments were EUR 0.2 million (2.6)
• Operating cash flow was EUR 17.8 million (15.5)

January - December 2023 in brief

• Revenue was EUR 502.9 million (543.1)
• Gross profit was EUR 80.9 million (80.6) or 16.1 % of the revenue (14.8 %).
• Operating profit (EBIT) was EUR 4.7 million (2.3) or 0.9 % of revenue (0.4 %)
• Comparable operating profit was EUR 6.1 million (3.5) or 1.2 % of revenue (0.6 %)
• The items impacting comparability were in total EUR 1.4 million (EUR 1.2 million), including EUR 1.2 million in restructuring costs
• Net profit was EUR 2.1 million (0.3)
• Earnings per share were EUR 0.05 (0.01)
• Investments were EUR 1.9 million (9.3)
• Operating cash flow was EUR 20.3 million (1.5)
• Board of Directors' dividend proposal to the Annual General Meeting: To improve the company's equity ratio, the Board of Directors proposes to the Annual General Meeting 2024 that Verkkokauppa.com deviates from its dividend policy and that no dividend be paid for the financial year 2023.

KEY RATIOS EUR million	10-12/2023	10-12/2022	Change		1-12/2023	1-12/2022	Change
Revenue	150.6	154.9	-2.8	%	502.9	543.1	-7.4	%
Gross profit	23.1	21.9	1.2	MEUR	80.9	80.6	0.3	MEUR
Gross margin, %	15.3%	14.1%	1.2	pp	16.1%	14.8%	1.2	pp
EBITDA	3.5	2.2	1.3	MEUR	11.1	7.8	3.2	MEUR
EBITDA, %	2.3%	1.4%	0.9	pp	2.2%	1.4%	0.8	pp
Operating profit	1.8	0.8	1.0	MEUR	4.7	2.3	2.4	MEUR
Operating margin, %	1.2%	0.5%	0.7	pp	0.9%	0.4%	0.5	pp
Comparable operating profit	1.6	0.8	0.8	MEUR	6.1	3.5	2.6	MEUR
Comparable operating margin, %	1.1%	0.5%	0.5	pp	1.2%	0.6%	0.6	pp
Net result	1.2	0.5	0.7	MEUR	2.1	0.3	1.7	MEUR
Investments	0.2	2.6	-2.4	MEUR	1.9	9.3	-7.3	MEUR
Operating cash flow	17.8	15.5	2.3	MEUR	20.3	1.5	18.8	MEUR

FINANCIAL GUIDANCE FOR 2024

Verkkokauppa.com expects revenue for 2024 to remain at the level of 2023 (2023: EUR 502.9 million) and comparable operating profit (comparable EBIT) to increase from 2023 (2023: EUR 6.1 million).

CEO PANU PORKKA'S REVIEW

In 2023, Verkkokauppa.com's operating environment was characterized by uncertainty about the curbing of inflation as well as the development of interest rates and energy prices which impacted the purchasing power of the consumers. Consumers' confidence in their own economy was weak throughout the year and private consumption fell clearly.

To ensure operational efficiency and improve competitiveness in a challenging market, the company launched a profit improvement program at the beginning of the year. The program focused on optimizing the assortment and improving the efficiency of inventory, supply flows and organizational structure. The profit improvement program achieved the targeted results and thus improved the profitability. We focused on lowering our cost base and inventory value to a healthy level, which led to significant improvement in cash flow. In 2023, comparable operating profit increased by EUR 2.6 million to EUR 6.1 million (EUR 3.5 million) and the company's revenue declined by 7.4 percent and totaled EUR 502.9 million (EUR 543.1 million).

In the last quarter of the year, the home electronics market declined by 5 percent compared to the same period last year. Verkkokauppa.com performed well in a declining market. Online sales picked up slightly from the previous year, and sales in core categories increased by 2 percent. Our private label sales were strong, growing by 29 percent in the fourth quarter. Intense price competition impacted gross margin, which was 15.3 percent for the quarter.

During the past year, several projects were carried out to provide a superior customer experience. The online store underwent the most significant renewal in the company's history. In the Helsinki metropolitan area of 600,000 inhabitants, deliveries of "60 minutes or less" were launched, and orders can now be picked up around the clock from the Helsinki store. In addition, we introduced a fully digital trade-in service, which lowers the threshold for recycling used phones and computers and enables a longer life cycle for the device.

In November, the company published an updated strategy to accelerate profitable, faster-than-market growth. Verkkokauppa.com's vision is to create a new normal for buying and owning. The cornerstones of the strategy are accelerating the online transition by making shopping fast, extremely convenient and affordable, new openings in terms of both assortment and new markets, and significant growth of the services business. In addition, the company will continue to increase automatization and develop its own operations and platform with the aim of improving profitability.

A big thank you for the past year goes to the personnel of Verkkokauppa.com. We have, with determination, improved our operations in a challenging demand situation. Today, our business is more profitable, and we are more competitive than previous year. The customer experience has improved during the year, as we are steadfast in our principle of always working on the customer's side and at their service. We believe in our community, transparency and professionalism, which means that every Verkkokauppa.com employee can serve customers every day with pride.

FINANCIAL DEVELOPMENT

REVENUE AND PROFITABILITY

EUR million	10-12/ 2023	10-12/ 2022	Change		1-12/ 2023	1-12/ 2022	Change
Revenue	150.6	154.9	-2.8	%	502.9	543.1	-7.4	%
Operating profit	1.8	0.8	1.0	MEUR	4.7	2.3	2.4	MEUR
Operating margin, % of revenue	1.2%	0.5%	0.7	pp	0.9%	0.4%	0.5	pp
- items related to comparability	-0.2	0.0	-0.2	MEUR	1.4	1.2	0.2	MEUR
Comparable operating profit	1.6	0.8	0.8	MEUR	6.1	3.5	2.6	MEUR
Comparable operating margin, % of revenue	1.1%	0.5%	0.5	pp	1.2%	0.6%	0.6	pp

Share of sales, %

	10-12/2023	10-12/2022	1-12/2023	1-12/2022
Customer segments
Consumer	72%	70%	70%	69%
B2B	22%	22%	23%	24%
Export	6%	8%	7%	7%
Sales channels
On-line	63%	61%	62%	61%
Off-line	31%	30%	32%	32%
Product categories
Core categories	87%	83%	86%	84%
Evolving categories	13%	17%	14%	16%
Website visits, million	22.6	24.4	72.4	82.4

Sales include orders and deliveries in transit. On-line and off-line sales exclude export sales.
Core categories includes IT (with sub product groups like computers, peripherals, components), Entertainment (TV and video, Audio and hifi, gaming and musical instruments), Mobile devices (telecom, cameras, and watches), and small & major domestic appliances. Evolving categories include sports, home and lightning, food and drink, toys, baby and family, BBQ and cooking, luggage and travel.

October-December 2023

In October-December 2023, Verkkokauppa.com's revenue declined by 2.8 percent year on year, totaling EUR 150.6 million (154.9). In a difficult market, sales for the consumer customer segment were on par with the previous year, while B2B sales declined by 2.9% and export sales declined by 30.1 percent. The consumer sales share of total sales was 72 percent (70%), and the B2B sales share was 22 percent (22%).

Sales of core categories increased by 1.5 percent and their share of sales was 87 percent (83 %). Sales of small domestic appliances were especially good during the quarter. Also, products in the IT- and gaming categories sold better than in the comparison period. Sales of evolving categories declined by 23.8 percent due to assortment optimization measures. Evolving product categories' share of Group sales was 13 percent (17%). Sales of private-label products were strong and increased by 28.7 percent.

Verkkokauppa.com's online sales were at the level of comparison period and represented 63 percent of all sales (61 %). The sales in stores declined by 2.6 percent and accounted for 31 percent (30%) of the company's sales. Export sales share of Group sales was 6 percent (8%).

The revenue from Verkkokauppa.com's self-financed customer financing services continued to grow, and totaled EUR 1.9 million (1.2), including interest income, fees, and commissions.

Personnel costs declined by 10.5 percent in October-December and amounted to EUR 9.9 million (11.1). The decline was mainly a result of the change negotiations carried out in the spring and the successful adaptation of store and logistics personnel to the current demand. Other operating expenses for the review period increased by 9.4 percent and amounted to EUR 9.7 million (8.9). Expenses were increased by credit losses on customer financing and related provisions, as well as higher marketing and external personnel costs in the campaign season.

The company's operating profit (EBIT) in October-December improved by EUR 1.0 million and totaled EUR 1.8 million (0.8). On the comparison period, EBIT was deteriorated by a write-down of EUR 1.6 million related to the inventory. EBIT share of revenue was 1.2 percent (0.5%). Comparable operating profit improved by EUR 0.8 million from the comparison period and was EUR 1.6 million (0.8). Comparability was impacted by EUR 0.2 million (-0.0) related to an earlier acquisition. The result for the period was EUR 1.2 million (0.5).

Earnings per share in the third quarter were EUR 0.03 (0,01).

January-December 2023

In January-December 2023, Verkkokauppa.com's revenue declined by 7.4 percent year on year, totaling EUR 502.9 million (543.1).

The revenue from customer financing services was EUR 6.8 million (4.7), including interest income, fees, and commissions.

Personnel costs declined by 8.8 percent in January-December and amounted to EUR 36.7 million (40.2). Personnel costs include EUR 1.0 million in restructuring costs. Other operating expenses were at the level of the comparison period and amounted to EUR 33.5 million (33.4). During the year, e.g. external warehouse and marketing costs declined whereas credit losses and related provisions increased. At the end of December, credit loss provisions amounted to EUR 1.2 million (0.8).

The company's operating profit (EBIT) in January-December improved by EUR 2.4 million and totaled EUR 4.7 million (2.3) and its share of revenue was 0.9 percent (0.4 %). Profitability was positively impacted by the profit improvement program, which improved the efficiency of assortment, inventory, and pricing optimization. In the comparison period, profitability was weakened by an inventory write-down of EUR 1.6 million. Comparable operating profit improved by EUR 2.6 million from the comparison period and was EUR 6.1 million (3.5). Items impacting comparability in the reporting period include a restructuring provision of EUR 1.2 million and EUR 0.2 million related to the acquisition. In 2022, comparability was impacted by EUR 1.2 million related to an acquisition. The result for the 2023 fiscal year was EUR 2.1 million (0.3).

Earnings per share in January-December were EUR 0.05 (0,01).

FINANCE AND INVESTMENTS

In 2023, the operating cash flow totaled EUR 20.3 million (1.5). Operating cash flow before the change in working capital was EUR 11.3 million (8.5). The company's net financial expenses were EUR 1.7 million (1.6).

Ordinary seasonal fluctuations are reflected in cash and cash equivalents, cash flow and accounts payable, which usually reach their highest levels at the end of the fourth quarter and their lowest levels at the end of the second quarter.

In January-December, investments totaled EUR 1.9 million (9.3). Investments were mainly aimed at the online renewal project and business analytics-related development. During the year, the company capitalized EUR 0.9 million (0.8) associated to wages and salaries.

At the end of December 2023, Verkkokauppa.com group had a total of EUR 21.3 million (24.1) of loans from financial institutions. The company has revolving credit facilities totaling EUR 25 million, which have not been utilized and are valid until 2025.

PERSONNEL

At the end of December 2023, the total number of employees was 677 (838). This includes both full and part-time employees.

In March 2023, change negotiations were completed in Verkkokauppa.com. To support the negotiations, the company offered both external training on living with change and internal training on change management. During the year, the company invested in the working atmosphere, and the job satisfaction rate of the personnel was measured four times. The continuous leadership index was also introduced as part of the atmosphere measurement. In 2023, a role structure was built for the equal management of the company's tasks and roles, aiming at fair pay and better career development.

SUSTAINABILITY

In 2023, Verkkokauppa.com advanced towards its targets in line with its sustainability program. The sustainability program is based on priorities and themes selected based on materiality. At the core of Verkkokauppa.com's sustainability work is selling products that customers need, while minimizing customer returns and wastage. Success is measured through the return rate of products, which was low, 0.7% (0.7).

In accordance with its sustainability program, Verkkokauppa.com supports its customers in making responsible choices and offers products and services that support the circular economy. The company launched the trade-in service, which promotes a circular economy and allows customers to sell their used electronic devices back, receiving a credit corresponding to the value of the device to their customer account. The service operates entirely online, which lowers the threshold for recycling functioning used devices and promotes the extension of the lifetime of electronic devices. The company expanded its range of used products to new categories and more than a hundred items.

Personnel responsibility was implemented by investing, among other things, in supporting those made redundant in change negotiations, developing roles and pay grades, and diversity work.

Verkkokauppa.com reports on its sustainability work in accordance with the requirements of the EU Directive on the Disclosure of Non-Financial Information (NFRD) and the Finnish Accounting Act as part of the Report by the Board of Directors. In addition, the company will publish a separate sustainability report in the spring 2024. The company actively monitors the evolving corporate responsibility legislation and prepares to report in accordance with the EU Corporate Sustainability Reporting Directive (CSRD) for the financial year 2024.

SHARE TRADING AND SHARES

Verkkokauppa.com share (VERK) in Nasdaq Helsinki stock exchange in January-December 2023:

No. of shares traded	Share of no. of total shares, %	Total value of traded shares, EUR million	Last, EUR	High, EUR	Low, EUR	Average, EUR
6,886,994	15.18	18,212,687	2.60	2.99	2.24	2.64

Verkkokauppa.com Market Capitalization and Shareholders

	31 December 2023
Market capitalization (excl. own shares), EUR million	117.5
Number of shareholders (of which nominee shareholders)	20,697 (8)
Nominee registrations and direct foreign shareholders, %	10.82
Households, %	56.12
Financial and insurance corporations, %	14.18
Other Finnish investors, %	19.02

At the end of December, the company's largest shareholders were Samuli Seppälä (34.2%), Varma Mutual Pension Insurance Company (8.5%), Ilmarinen Mutual Pension Insurance Company (4.8%), Mandatum Life Insurance Company Limited (4.8%), and Nordea Small Cap Fund (3.1%).

On 31 December 2023, the share capital was EUR 100,000 and the total number of shares in the company was 45,354,532 including 145,719 treasury shares held by the company. The treasury shares have no voting rights, and no dividend is paid on them. The treasury shares accounted for 0.32 percent of all shares. During January-December, the company transferred a total of 125,538 treasury shares as part of the remuneration of Board members and key employees.

Share-related authorizations
At the end of 2023, the Board had valid authorization to decide on the repurchase of a maximum of 4,535,453 own shares in one or several installments and to decide on a share issue of a maximum of 4,535,453 shares by one or more decisions. The proposed maximum authorized number represents ten percent of the total number of shares in the company.

More information about Verkkokauppa.com's shares and shareholders and management holdings can be found on the company's investor website https://investors.verkkokauppa.com/en

Flagging Notifications

On 1 October 2023, Verkkokauppa.com Oyj received notifications in accordance with Chapter 9, Section 10 of the Finnish Securities Market Act according to which the legal entity exercising the ultimate control of the shares subject to the flagging obligation has changed from Sampo Plc to Mandatum Plc in connection with the partial demerger of Sampo Plc on 1 October 2023. Due to the partial demerger, Sampo Plc's holding in Verkkokauppa.com Oyj fell below 5% and Mandatum Plc's holding exceeded 5%.

LONG-TERM INCENTIVE PLANS

Verkkokauppa.com had a share-based incentive plan for the CEO and members of the Management Team, the Performance Matching Share Plan 2020-2022. The program ended in 2022, but the last payment installment was made in May 2023.

11 May 2023 The Board of Directors of Verkkokauppa.com decided on a new share-based incentive plan (Performance Marching Share Plan 2023-2027) for the CEO and the members of the Management Team. The plan has three performance periods covering the financial years 2023-2025, 2024-2026 and 2025-2027. The Board of Directors decides annually on the commencement of the performance period and its details. The performance criterion for the first performance period 2023-2025 is Total Share Return.

The aim of the plan is to align the objectives of the shareholders and the management in order to increase the value of the company in the long-term, to encourage the management to personally invest in the company's shares, to retain the target group at the company, and to offer them a competitive incentive plan in which the participants may earn shares as a reward for performance and their personal investment.

No new shares will be issued in connection with the payment of the share rewards and therefore the resolution will not have a dilutive effect.

For more detailed information on the share-based incentive plan, see Note 1.11.

ANNUAL GENERAL MEETING 2023

The Annual General Meeting of Verkkokauppa.com Oyj was held in Helsinki on 30 March 2023. The AGM adopted the financial statements and discharged the members of the Board and the CEO from liability for the financial year 2022 and approved the company's remuneration report for governing bodies as well as authorized the Board to decide on a repurchase of the company's own shares and the issuance of shares. PricewaterhouseCoopers Oy was elected as the Company's auditor and as the auditor-in-charge will serve Mikko Nieminen. In addition, the AGM approved the Shareholders' Nomination Board's proposals concerning Board and auditor selection and remuneration. Also, the Articles of Association were amended such that the general meeting may be held as a so-called remote meeting.

Board composition in 2023
The AGM confirmed the number of Board members to be seven. Johan Ryding, Kai Seikku, Samuli Seppälä and Arja Talma (Chairperson) were re-elected. Additionally, Robin Bade, Henrik Pankakoski and Kati Riikonen were elected as new members.

The compositions of the Board committees were decided to be as follows: members of the Audit Committee are Kai Seikku (Chairperson), Arja Talma (Vice Chairperson), Henrik Pankakoski and Kati Riikonen. Members of the Remuneration Committee are Arja Talma (Chairperson), Robin Bade, Johan Ryding and Kai Seikku.

Verkkokauppa.com's stock exchange release published on 30 March 2023 on the decisions of the Annual General Meeting, is available on the company's investor website.

DIVIDEND

On 30 March 2023, Verkkokauppa.com Oyj's Annual General Meeting resolved that the Company deviates from its dividend distribution policy and that no dividend be paid for the financial year 2022.

MANAGEMENT TEAM

On 14 December 2023, Verkkokauppa.com appointed Satu Berlin, DSc (Econ.), as Verkkokauppa.com's new Chief HR Officer and member of the Management Team. Berlin will start in her position on 1 March 2024.

At the end of 2023, with the new appointment, Verkkokauppa.com's Management Team will consist of the following members:
Panu Porkka, CEO
Nina Anttila, Chief Supply Chain Officer
Satu Berlin, CHRO (as of 1 March 2024)
Mikko Forsell, CFO
Tatu Kaleva, Chief Commercial Officer
Pekka Litmanen, Chief Experience Officer
Jyrki Tulokas, Chief Strategy and Technology Officer
Suvituuli Tuukkanen, Marketing and Communications Director

PROFIT IMPROVEMENT PROGRAM AND CHANGE NEGOTIATIONS

On 16 January 2023, Verkkokauppa.com launched a profit improvement program to secure its profitability and initiated change negotiations. The annualized profit improvement goal was in total of EUR 10 million, of which around EUR 6 million was realized during 2023.

On 9 March 2023, Verkkokauppa.com completed the change negotiations. The negotiations covered the entire personnel of Verkkokauppa.com. As a result of the negotiations, the workforce in Verkkokauppa.com was reduced by 75 employees. In addition to personnel reductions, all company officers, senior officers, and management were temporarily laid off, for a period of 14 days. Through the measures was achieved approximately EUR 4 million in savings in personnel costs in 2023. The planned restructuring resulted in EUR 1.2 million in costs.

COMPANY STRATEGY

In November, Verkkokauppa.com updated its strategy for accelerating profitable growth for the period 2024-2028 and its financial targets for the strategy period. Verkkokauppa.com continues as a forerunner in the market with the vision of creating the new normal for buying and owning. Optimized product flows, automated intralogistics and distribution network enable the fastest deliveries on the market. Verkkokauppa.com's constantly expanding express delivery service is pioneering even by international standards and is fast increasing its share of all deliveries. The cornerstones of the strategy are growing the current business faster than the market, expanding the assortment as new openings, private label products and new markets; significant growth of the services business; and stronger profitability by continuously developing own operations and platform. The company will efficiently take advantage of market recovery and the new, sustainable business models will support the strengthening of our market position.

Financial targets

In 2024-2028 strategy period, the company aims for faster than the market, annual revenue growth (CAGR) of over 5 percent, an annual operating profit margin of over 5 percent and to reduce fixed costs to less than 10 percent of revenue by the end of 2028. The target is to pay out 60-80 percent of annual net profit in quarterly growing dividends.

To improve the company's equity ratio, the Board of Directors proposes to the Annual General Meeting 2024 that no dividend be paid for the financial year 2023.

CORPORATE GOVERNANCE STATEMENT AND REMUNERATION REPORTS

Verkkokauppa.com publishes a separate corporate governance statement and remuneration report for 2023 in accordance with the recommendations of the Finnish Corporate Governance Code. The report also covers other key areas of governance. The documents will be available on Verkkokauppa.com's website separately from the Board of Directors' report no later than the week beginning 26 February 2024 (week 9).

COMPOSITION OF THE SHAREHOLDERS' NOMINATION BOARD

At its organizational meeting on 27 June 2023, the following members of the Nomination Board were appointed: Samuli Seppälä, Founder of Verkkokauppa.com, representing himself; Erkka Kohonen (the Chair), Senior Portfolio Manager, appointed by Varma Mutual Pension Insurance Company; Jukka Järvelä, Head of Equities, Mandatum Asset Management, nominated by Mandatum Life Insurance Company Limited. Arja Talma participates as an expert member in the role of the Chairperson of the Board of Verkkokauppa.com Oyj.

EVENTS AFTER THE REPORTING PERIOD

On 18 January 2024, the Shareholders' Nomination Board announced its proposals to the Annual General Meeting planned for 4 April 2024. According to the proposal, the Board of Directors consists of seven members and the following persons be elected as members of the Board of Directors for a term expiring at the end of the Annual General Meeting 2025: The following are proposed to be re-elected: Robin Bade, Henrik Pankakoski, Kati Riikonen, Samuli Seppälä and Arja Talma, and the following are proposed as new members: Irmeli Rytkönen and Enel Sintonen.

All candidates are independent of the company and its significant shareholders, except Samuli Seppälä. The personal data of the proposed new members of the Board of Directors are available on the company's investor website at https://investors.verkkokauppa.com/fi/hallinnointi/yhtiokokous_2024.

The proposed members of the Board of Directors have informed that if elected, they will elect Arja Talma as the Chairman of the Board of Directors.

The Nomination Board proposes that the remuneration of the Board of Directors remains unchanged.

SHORT-TERM RISKS AND BUSINESS UNCERTAINTIES

Verkkokauppa.com's business operations involve risks and uncertainties related to its overall strategy, execution of corporate transactions and investments, sourcing operations, logistics, information technology, compliance, and other operational factors. These risks can impact the company's operations, financial position or performance and may require the company to make changes to its business model.

The demand for consumer electronics, availability of products, and competitive environment are factors that impact Verkkokauppa.com's business. The company faces risks related to changes in both consumer and B2B customer behavior and preferences, supply chain disruptions, and intensified competition from other players in the market.

Verkkokauppa.com is also subject to macroeconomic and geopolitical risks that could impact on its operations and financial performance. For example, the number of distributed denial-of-service attacks against companies has increased. Uncertainties related to intensified geopolitical conflicts, the crisis in Ukraine, and global macroeconomic factors such as inflation and the development of financial markets as well as changes in the employment situation can weaken purchasing power and investment ability of consumers and corporates. The Finnish economy is in recession, and economic development will continue to be weak in 2024. The economy is expected to start recovering towards the end of 2024*. The development of the economy may affect the company's operational or financial performance. At the moment, the visibility of economic development is limited.
* Bank of Finland, The Economic forecast, 19 December 2023.

FINANCIAL GUIDANCE FOR 2024

Verkkokauppa.com expects revenue for 2024 to remain at the level of 2023 (2023: EUR 502.9 million) and comparable operating profit (comparable EBIT) to increase from 2023 (2023: EUR 6.1 million).

BOARD PROPOSAL FOR PROFIT DISTRIBUTION

The dividend distribution policy of Verkkokauppa.com states, that the company's target is to pay out 60-80 percent of annual net profit in quarterly growing dividends.

To improve the company's equity ratio, the Board of Directors will propose to the Annual General Meeting 2024 that no dividend be paid for the financial year 2023.

ANNUAL GENERAL MEETING 2024

Verkkokauppa.com Oyj's annual general meeting 2024 is planned to be held on Thursday 4 April 2024 at 2 p.m. EET as a virtual-only AGM. The Board of Directors will summon the meeting separately with the stock exchange release later.

Helsinki, Finland, 8 February 2024

Verkkokauppa.com Oyj
Board of Directors

NEWS CONFERENCES

A press conference for analysts, investors and media will be held in Finnish over Livestream webcast on Thursday, 8 February 2024 at 10:00 a.m. (EET), in which Verkkokauppa.com's CEO Panu Porkka will present the developments in the reporting period.

A press conference in English will be held over Livestream webcast on Thursday, 8 February 2024 at 11:00 a.m. (EEST). Questions can be sent beforehand or during the presentation via e-mail to [e-mail].

Presentation materials for both events are available at https://investors.verkkokauppa.com/en/presentations. For both press conferences, the Livestream webcast is available at www.verklive.com or https://livestream.com/verkkokauppacom/events/10750606

COMPANY RELEASES AND EVENTS

Verkkokauppa.com will arrange events and publish its financial reports as follows:

• The Financial Statements for 2023 during the week starting on 26 February (week 9) in 2024
• Annual general meeting is planned to be held on Thursday 4 April 2024 at 2 p.m. EET as a virtual-only AGM
• Interim report for January - March 2024 on Thursday 25 April 2024
• Half-year financial report for January - June 2024 on Thursday 18 July 2024
• Interim report for January - September 2024 on Thursday 24 October 2024
• Financial statements bulletin for the year 2024 on Thursday 6 February 2025.

More information:
Panu Porkka, CEO, Verkkokauppa.com Oyj
[e-mail]

Mikko Forsell, CFO, Verkkokauppa.com Oyj
[e-mail]
Tel. [phone]

Marja Mäkinen, Head of Investor Relations and Corporate Communications, Verkkokauppa.com Oyj
[e-mail]
Tel. [phone]

Verkkokauppa.com (Nasdaq Helsinki: VERK) is Finland's leading online store, offering a wide range of products from home technology to leisure as well as business needs. Operating since 1992, the company is one of the oldest online retailers in the world, combining its online store and brick-and-mortar stores for an omnichannel customer experience. Verkkokauppa.com's four megastores are in Oulu, Pirkkala, Raisio and Jätkäsaari, Helsinki. To provide a superior customer experience, the company delivers products as fast as an hour to your door around the clock, utilizing automation and robotics. Verkkokauppa.com employs around 700 people. The company is listed on the Nasdaq Helsinki stock exchange, and it has more than 21,000 shareholders.