Verkkokauppa.com Oyj
Report of the Board
of Directors and
Financial Statements 2021
2021
Verkkokauppa.com has published four separate reports, which together
form the company’s Annual reporting for 2021. The reports are available
in Finnish and English, and the reporting components are the Company
brochure, Report of the Board of Directors and the Financial Statements,
Statement of non-financial information, and Corporate Governance
statement including the Remuneration report. The Statement of non-
nancial information is about company’s sustainability work and its
progress during 2021. Reports can be read and downloaded on the
Verkkokauppa.com website as separate pdf les.
Verkkokauppa.com’s Annual reporting 2021
Verkkokauppa.com Oyj
Corporate
Governance
Statement 2021
and Remuneration Report
2021
Verkkokauppa.com
– the address
of all passions
Company year 2021
2021
Verkkokauppa.com Oyj
Report of the Board
of Directors and
Financial Statements 2021
2021
KUVA
Sustainability at
Verkkokauppa.com
Statement of non-nancial
information 2021
2021
2021
2
Verkkokauppa.com · Report of the Board of Directors and Financial Statements 2021
Report of the Board of Directors 4
Financial Statements 2021 12
1 Income statement 12
2 Statement of comprehensive income 12
3 Statementofnancialposition 13
4 Statementofcashows 14
5 Statement of changes in equity 14
6 Accounting policies 15
6.1 Basic information on the Company 15
6.2 Basis of preparation 15
6.3 Accounting policies requiring judgment by
the management and key factors of uncertainty
related to estimates 15
6.4 EectsofIFRSstandardsthatbecome
eectiveduringorafterthenancialyear 16
7 Notestothenancialstatements 17
7.1 Segmentreporting 17
7.2 Revenuefromcontractswithcustomers 17
7.3 Other operating income 19
7.4 Materialsandservices 19
7.5 Employeebenets 19
7.6 Remunerationofkeymanagementpersonnel 19
7.7 Depreciation and amortization 21
7.8 Other operating expenses 21
7.9 Financeincomeandexpenses 21
7.10 Incometaxes 22
7.11 Earnings per share 22
7.12 Share-basedpayments 23
7.13 Intangibleassets 24
7.14 Tangible assets 26
7.15 Leases 27
7.16 Deferred tax assets and liabilities 30
7.17 Tradereceivablesandotherreceivables 31
7.18 Inventory 32
7.19 Cashandcashequivalents 32
7.20 Equity 33
7.21 Cashowinformation 35
7.22 Funding 36
7.23 Other current liabilities and accrued liabilitiest 40
7.24 Provisions 40
7.25 Transactionswithrelatedparties 41
7.26 Guarantees and commitments 41
7.27 Subsequentevents 41
Signaturesforthenancialstatements
and the Board of Directors’ report 42
Report of the Board of Directors
and Financial Statements 2021
2021
3
Verkkokauppa.com · Report of the Board of Directors and Financial Statements 2021
Report of the Board of Directors
Fiscal year 2021 in brief
The year 2021 provided some exceptional circumstances due to the
coronavirus pandemic. Verkkokauppa.com’s revenue grew by 3.8 percent
from previous year, totaling 574.5 million euros (553.6). This growth was
driven in particular by corporate sales, which increased by 19 percent,
year-on-year. The pandemic further boosted consumer preference for
online shopping, and online sales increased by 13.5 percent to previous
year. Operating prot increased by 0.7 million euros, totaling 20.3 million
euros (19.6), representing 3.5 percent of revenue (3.5%). Comparable
operating prot was 20.3 million euros (20.4) and prot for the period 15.1
million euros (14.6). In the comparison period, 0.8 million euros of costs
relating to the stock listing process impacted comparability.
Revenueandprotabilitydevelopment
In 2021, Verkkokauppa.com’s revenue grew by 3.8 percent year on
year, totaling 574.5 million euros (553.6).
The proceeds from consumer financing were 4.3 million euros
(3.6) including both interest income and fee income. The credit loss
allowance was 0.8 million euros (1.1) at the end of December.
Personnel costs increased in January–December by 2.8 percent to
36.6 million euros (35.6). The increase came mainly from IT as well
as from purchasing and assortment handling functions. During the
reporting period, other operating expenses increased slightly to 30.3
million euros (28.8).
In 2021, operating prot increased by 0.7 million euros, totaling
20.3 million euros (19.6), representing 3.5 percent of revenue (3.5%).
Comparable operating prot was 20.3 million euros (20.4) and prot
for the period 15.1 million euros (14.6). In the comparison period, 0.8
million euros of costs relating to the stock listing process impacted
comparability.
Earnings per share were 0.34 euros (0.33) in January–December.
Keyeventsduringthescalyear
On 12 February 2021 Verkkokauppa.com announced its refined
strategy for the period 2021–2025. There are more about the strategy
in “Company strategy and nancial targets” section.
On 23 April 2021 Verkkokauppa.com announced its investment to
build a world-class automated urban logistics hub in Jätkäsaari, Helsinki
On 21 June 2021, the composition of the Shareholders’ Nomination
Board was announced comprising Samuli Seppälä, Founder of
Verkkokauppa.com, representing himself; Erkka Kohonen, Senior
Portfolio Manager, appointed by Varma Mutual Pension Insurance
Company; Jukka Järvelä, Senior Portfolio Manager, Mandatum Asset
Management, nominated by Mandatum Life Insurance Company
Limited and Arja Talma, the Chair of the Board of Directors acting as
an expert member.
On 29 September 2021 Verkkokauppa.com arranged a Capital
Markets Day.
Operating environment
According to the market research institute GfK, the consumer electronics
market grew only by 0.7 percent during year 2021 in Finland.
The COVID-19 pandemic affected people’s lives throughout the
year. Verkkokauppa.com beneted from the pandemic driven online
shift in consumer behavior, which was reflected in an increase in
online shopping. We believe that our customers’ transition to online
is permanent. On the other hand, as the pandemic intensied, stores
were quieter and travel restrictions affected the export business. The
epidemic caused general economic uncertainty in consumers, which
contributed to a decline in private consumption. As the pandemic
momentarily eased, consumption was directed to services such as
restaurants or travel. The pandemic posed challenges to the efciency
of the production chain and logistics, e.g. component shortages and
congestion in freight transport. However, we were able to prepare for
this by optimizing inventory and sourcing. Economic growth slowed
temporarily at the turn of the year, but GDP is expected to grow by 3.0
percent in 2022
*
.
*source: Economic survey from the Finland’s Ministry of Finance, winter 2021:
http://urn./URN:ISBN:978-952-367-886-6
2021
4
Verkkokauppa.com · Report of the Board of Directors
Finance and investments
Operating cash flow was 6.7 million euros (16.9). Operating cash
ow was impacted by change in working capital. Drivers for change
in working capital were mainly growth in inventories when mitigating
possible availability shortages, preparing for high season sales and
campaigns. Net nance costs were 1.3 (1.4) million euros.
The Company is solid. Liquid assets totaled EUR 20.9 (43.1) million.
Interest-bearing liabilities totaled EUR 20.1 (21.9) million including lease
liabilities. Interest-bearing net debts totaled EUR -0.8 (-21.2) million.
Equity ratio was 21.4 percent (24.5%).
Investments totaled 4.9 million euros (1.4) in January–December
2021. The majority of investments were directed to the Jätkäsaari
automation warehouse project. During the reporting period the
company capitalized 0.4 million euros (0.6) in salary costs. In January-
December, a dividend of EUR 20.1 million (9.6) in total was distributed
to shareholders.
Verkkokauppa.com has revolving credit facilities totaling 20 million
euros, which have not been utilized.
Financialkeygures
2021
2020 2019
Revenue, MEUR 575
554
504
Opertaing prot, % 3.5%
3.5%
2.2%
Comparable operating prot, % 3.5%
3.7%
2.2%
Equity ratio, % 21.4%
24.5%
23.4%
Gearing, % -2.2%
-52.2%
-52.1%
Investments, MEUR 4.9
1.4
1.2
Cash ow from the operations, as stated
in the cash ow statement, MEUR
6.7
16.9
9.7
Personnel at the end of the period 825
818
758
Personnel
During the reporting period, the number of employees increased, and
the total number of employees was 825 (818) at the end of December
2021. This includes both full- and part-time employees.
During 2021, Verkkokauppa.com has focused on developing the
competence of personnel, e.g. through supervisor coaching and
work community coaching, as well as purposeful improvement of the
employer image to attract and engage the right competencies in our
work community. The company has invested in the overall well-being
of personnel, e.g. occupational safety and the annual well-being survey
and the measures related to surveys’ results.
Non-nancialinformationstatement
Verkkokauppa.com reports on corporate responsibility matters in
compliance with legislation on the reporting of non-nancial information.
The information in this statement has not been veried by a third
party. The gures presented in the nancial statement and repeated
there have been audited. Report can be read and downloaded on the
Verkkokauppa.com website.
Information presented in the notes to
thenancialstatements
Information on the Company’s personnel and related parties are
provided in the notes to the nancial statements.
Share trading and shares
Verkkokauppa.com share (VERK) in Nasdaq Helsinki stock exchange
in 2021:
No. of
shared traded
Share of no. of
total shares, %
Total value,
EUR million
Last,
EUR
High,
EUR
Low,
EUR
Average,
EUR
20,923,735
46.4
170.9
7.13 10.34 6.61
8.17
Verkkokauppa.com Market Capitalization
and Shareholders
31 December 2021
Market capitalization (excl. own shares), EUR million 319.0
Number of shareholders 18,811
Nominee registrations and direct foreign shareholders, % 11.6
Households, % 53.2
Financial and insurance corporations, % 16.3
Other Finnish investors, % 18.8
At the end of the year, the company’s largest shareholders were Samuli
Seppälä (35.4%), Varma Mutual Pension Insurance Company (8.6%),
Mandatum Life Insurance Company Limited (4.9%), Ilmarinen Mutual
Pension Insurance Company (4.8%) and Nordea Small Cap Fund
(3.1%).
On 31 December 2021, the share capital was EUR 100,000 and
the total number of shares in the company was 45,065,130 including
323,397 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 0.72% of all shares. In January-December 2021,
the company transferred a total of 29,501 treasury shares as part of the
remuneration of Board members and key employees.
The Board holds a valid authorization to issue a maximum of
4,506,513 shares in a share issue by one or several decisions (share
issue authorization of 2021). The Board utilized its share issue
authorization solely for transferring shares as part of the remuneration
of Board members.
More information on Verkkokauppa.com shares and shareholders
as well as management shareholdings on the company can be found
on investor website.
2021
5
Verkkokauppa.com · Report of the Board of Directors
Flaggingnotications
On 22 July 2021, Verkkokauppa.com received a notification in
accordance with the Chapter 9, Section 10 of the Finnish Securities
Market Act. The notication of major holding was triggered by an option
agreement concluded on 21 July 2021 between Rite Ventures Finland
AB, a company ultimately controlled by Christoffer Häggblom, and
Samuli Seppälä regarding Verkkokauppa.com’s shares, under which
Rite has the right to buy a total of 4,400,000 shares of Verkkokauppa.
com from Samuli Seppälä. The call option is valid until 20 April 2022.
As a result of the agreement Christoffer Häggblom’s indirect holding
of Verkkokauppa.com’s shares and votes through nancial instruments
exceeded the 5 percent threshold and the holding of shares and votes,
both direct and indirect, together with the indirect holding through
nancial instruments exceeded the 10 percent threshold.
Capital markets day
On 29 September 2021, Verkkokauppa.com hosted its rst Capital
Markets Day in the company’s history. During the event, company
management presented the road toward a revenue of one billion euros,
strategy execution and how the company is capitalizing on the shift to
online by leveraging its most exciting assortment as well as company’s
own technology backbone. In addition, for the rst time, CO
2
emissions
from Verkkokauppa.com’s own activities were disclosed, in which
a signicant downward trend was seen thanks to energy efciency
measures and transition to renewable energy. A recording of the event
and presentation materials are available on the company’s investor
website.
Long-term incentive plans
Verkkokauppa.com has two share-based incentive plans for the CEO
and members of the Management Team, the Matching Share Plan
2018–2020 and the Performance Matching Share Plan 2020–2022.
For more detailed information on the share-based incentive plans, see
Note 7.12.
In March, the Board of Directors of Verkkokauppa.com resolved on
a directed share issue without consideration of the payment of share
rewards in the rst matching period of the Matching Share Plan 2018–
2020. The resolution was based on the authorization granted by the
Annual General Meeting held on 31 March 2020. In the directed share
issue without consideration, a total of 15,000 treasury shares were
transferred to ve key employees on 2 March 2021.
No new shares will be issued in connection with the payment of the
share rewards and therefore the resolution has no diluting effect. On 31
December 2021, Verkkokauppa.com Oyj held 323,397 treasury shares.
Board authorizations
The Annual General Meeting held on 25 March 2021 authorized the
Board of Directors to decide on the repurchase of a maximum of 4 506
513 shares of the company.
The Board was authorized to decide upon a share issue, or the issue
of shares owned by the company. This authorization is for maximum
of 4,506,513 shares. The Board was authorized to decide upon all the
conditions of the share isse.
Verkkokauppa.com also exercised its share issue authorizations
during the nancial year 2021 to transfer a total of 29,501 shares to
Board members as part of Board remuneration. The authorization will
be valid until the next Annual General Meeting, however no longer than
30 June 2022.
In addition to the above, the Board has no other authorizations valid
related to shares.
Verkkokauppa.com’s management team
On 24 August 2021, Verkkokauppa.com announced that the company
was strengthening its management team to support strategy
implementation and business development. Jyrki Tulokas was
appointed Chief Technology Officer of Verkkokauppa.com. Kalle
Koutajoki, Verkkokauppa.com’s Chief Sales Ofcer, was appointed to
the new position of Chief Strategy and Development Ofcer. Pekka
Litmanen was appointed as Chief Experience Ofcer (CXO). Henrik
Weckström, CTO, moved to a new role within the company.
As a result of these appointments, the Verkkokauppa.com
Management Team will comprise the following members as of 11
October 2021:
Panu Porkka, CEO
Mikko Forsell, CFO
Miika Heinonen, Logistics Director
Vesa Järveläinen, Commercial Director
Kalle Koutajoki, Chief Strategy and Development Ofcer
Pekka Litmanen, Chief Experience Ofcer
Seppo Niemelä, Marketing and Communications Director
Saara Tikkanen, HR Director
Jyrki Tulokas, Chief Technology Ofcer
Companystrategyandnancialtargets
On 12 February 2021, the company announced its updated strategy
and long-term (2021–2025) nancial targets. In line with the rened
strategy, Verkkokauppa.com is aiming for a revenue of EUR one billion
and a comparable operating prot (EBIT) margin of 5 percent by the end
of 2025. At the same time, Verkkokauppa.com continues its dividend
policy, according to which the company pays an increasing dividend to
its owners on a quarterly basis. We regularly report on the progress and
performance of the strategy in relation to the strategic goals.
Verkkokauppa.com’s vision is to remain a pioneer in e-commerce
for decades to come through continuous innovation and development.
Board of Directors
On 4 January 2021 Mikael Hagman resigned from Verkkokauppa.com’s
Board of Directors.
In accordance with the proposal of the Shareholders’ nomination
committee, the number of Board members was conrmed as seven.
Christoffer Häggblom, Kai Seikku, Samuli Seppälä and Arja Talma
were re-elected for the next term. Additionally, Mikko Kärkkäinen,
2021
6
Verkkokauppa.com · Report of the Board of Directors
Frida Ridderstolpe and Johan Ryding were elected as new members
for the next term.
At the Board of Directors’ constitutive meeting held after the Annual
General Meeting, Arja Talma was elected as Chairperson of the Board
of Directors of Verkkokauppa.com Oyj and Christoffer Häggblom as
Vice Chairperson of the Board.
Board members Kai Seikku (Chairperson), Arja Talma (Vice
Chairperson) and Christoffer Häggblom were elected as members
of the Audit Committee. Board members Christoffer Häggblom
(Chairperson), Kai Seikku and Arja Talma were elected as members
of the Remuneration Committee.
Annual general meeting 2021
The Annual General Meeting was held in Helsinki on 25 March
2021. The nancial statements for the year 2020 were approved, the
Remuneration Report was considered, and the Board members and
CEO were discharged from liability with respect to the nancial year
2020. It was resolved to pay a dividend of 0.056 euros per share and
an additional dividend of 0.22 euros per share (i.e., in total a dividend
of 0.276 euros per share). Dividends to be paid by the company total
12,345,341.17 euros.
The Board election is explained above in the section Board of
Directors.
The Authorized Public Accountant PricewaterhouseCoopers Oy
was elected as the auditor, with Authorized Public Accountant Ylva
Eriksson acting as the Principal Auditor
Dividend
On 25 March 2021, Verkkokauppa.com’s Annual General Meeting
resolved to pay a dividend of 0.056 euros per share and an additional
dividend of 0.22 euros per share. In total, the dividend payment was
0.276 euros per share (12,345,341.17 euros in total). The dividend
payment date was 7 April 2021.
The Annual General Meeting authorized the Board of Directors to
decide at its discretion the distribution of dividends not exceeding 0.174
euro per share to be paid in three instalments during 2021.
The Board resolved on 23 April 2021 to pay a dividend of 0.057 euros
per share, on 16 July 2021 to pay 0.058 euros per share, and on 22
October 2021 to pay 0.059 euros per share. Following the distribution
of dividends resolved on 22 October 2021, the Company does not have
any valid authorizations for distribution of dividends.
Corporate governance statement and remuneration
reports
Verkkokauppa.com publishes a separate corporate governance
statement and remuneration report for 2021 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.
Mostsignicantrisksanduncertainties
Verkkokauppa.com’s risks and uncertainties are mainly related to the
company’s industry and operating environment, its operations, as well
as the regulatory environment.
Competition in the consumer electronics market is fierce. As a
result, the Company’s operating result and protability are subject to
changes and uncertainties in the market and the industry, including
changes in consumer behavior and the development of the economy.
Changes in the competitive situation may be caused by the company’s
expansion to cover more and more new product categories. This may
also cause changes in the behavior of a new type of customer base.
The company’s business is seasonal and focused on the fourth quarter.
The company is also dependent on the uninterrupted operation of its
website and IT systems. The further development of the company
requires expertise and change management skills from key personnel.
The company is affected by risks associated with the implementation
of the business strategy or investments and corporate transactions.
Operational business risks include logistics and supply chain
management, as well as business continuity in the event of exceptional
situations. The geographical concentration of product manufacturers
into certain countries or areas in those countries increases risks related
to the supply chain and the availability of goods. Delays and disruptions
in the supply chain, logistics or information systems and uncertainties
related to logistics partners may have a negative impact on operations.
Every effort is made to manage these operational risks by developing
appropriate backup systems and alternative operating models, and by
investing in the uninterrupted operation of IT systems. Operational risks
are also covered by insurance policies.
Changes and increasing complexity in legislation may require
signicant changes in operations and may result in additional costs.
Noncompliance with laws may result in nes or claims for damages. The
company’s reputation, brand awareness and trust among consumers
are a competitive advantage – negative publicity related to, for example,
regulation or the product safety or sustainability of the Company’s
own brands could have adverse nancial impacts on the company.
In addition, Verkkokauppa.com aims to produce and publish reliable
and timely nancial information to the market. There is a risk that the
company’s reporting might fail to meet the requirements. A prolonged
business disruption or poor protability could impact the company’s
liquidity or nancial position. Restrictions caused by the pandemic and,
for example, remote working have increased the consumption of goods
instead of services. This distribution may level off once the pandemic
situation calms down.
The aforementioned risks and uncertainties may affect the
company’s operations, nancial position and performance positively
or negatively. The company’s Board of Directors has approved a risk
management operating model for the company based on the ISO 31000
standard. The risks are managed and governed in accordance with the
company’s risk management policy.
2021
7
Verkkokauppa.com · Report of the Board of Directors
Events after the reporting period
Verkkokauppa.com acquires e-ville.com online store
On 9 February 2022, Verkkokauppa.com announced the acquisition of
e-ville.com online store. The acquisition supports Verkkokauppa.com’s
strategy to strengthen and expand its assortment in own brands. The
purchase price amounts to approximately EUR 5.3 million, of which
EUR 3.3 million will be paid in cash and EUR 2.0 million in new shares
to be issued in a directed share issue to the seller at closing. The
parties have also agreed to additional purchase price installments of up
to approximately EUR 6.7 million payable solely if the combined sales
of own brand products exceeds set target levels during 2022, 2023 and/
or 2024. The total aggregate purchase price can amount to EUR 12.0
million at the maximum.
The transaction will close in the beginning of April 2022 and the
acquired business operations will be consolidated into Verkkokauppa.
com’s gures from the beginning of the second quarter of 2022. E-ville’s
operations are estimated to have a positive impact of EUR 5–8 million
on Verkkokauppa.com’s revenue in 2022.
Boardproposalforprotdistribution
The company’s distributable funds on 31 December 2021 were EUR
35,080,298.13.
The Board of Directors proposes to the Annual General Meeting that
Verkkokauppa.com Oyj’s prot of EUR 15,093,137.88 for the nancial
year be transferred to the retained earnings account. The Board of
Directors proposes to the Annual General Meeting that a total dividend
of EUR 0.246 per share be paid for the nancial year 2021, divided into
a dividend of EUR 0,060 per share to be paid in accordance with the
Annual General meeting. In addition to that, to authorize the Board of
Directors to decide at its discretion the distribution of quarterly dividend
in total not exceeding EUR 0.186 per share. The proposal is based on
the company’s result in 2021 and its liquidity position.
Verkkokauppa.com continues its dividend policy, according to which
the company pays an increasing dividend to its owners on a quarterly
basis.
Long-termnancialtargets
With the rened strategy, Verkkokauppa.com aims for a revenue of
one billion euro and a comparable operating prot (EBIT) margin of
5 percent by the end of 2025. At the same time, Verkkokauppa.com
will continue its policy of distributing a quarterly growing dividend to
shareholders.
Business outlook
Verkkokauppa.com’s business operations are estimated to develop
positively. The company believes that it will benet from online shift and
succeed in further growing its market share in the chosen categories.
The strong balance sheet enables the company to continue expanding
its operations in accordance with its strategy.
The company has beneted from the shifting consumer behavior
accelerated by the COVID-19 pandemic, as sales in the online channel
have shown growth. The company estimates that the increasing shift of
customers to online sales is permanent.
The effects of the COVID-19 pandemic will gradually begin to ease.
As travel opens up, we expect to see a reopening of export business.
At the same time it’s possible that consumers may direct their spending
towards services and travelling. We estimate that many side effects
caused by the pandemic, such as component shortages, may still
have an impact on the availability of some products through 2022. The
resurgence of the pandemic could lead to uncertainty in household
condence in the economy and this could have an impact on consumer
purchasing behavior.
The economic growth in the early part of the year will be slower
impacted by pandemic related restrictions
*
. We estimate that this may
have an impact on consumers behavior and demand during rst half. In
addition to the pandemic, it’s more difcult to estimate the outlook and
predict the demand due to uncertainties related to overall economic
development, ination, availability of products and geopolitical situation.
Financial guidance for 2022
The company expects revenue to be between EUR 590–640 million
(EUR 574.5 million) and comparable operating prot to be between
EUR 19–25 million (EUR 20.3 million) in 2022.
*source: Economic survey from the Finland’s Ministry of Finance, winter 2021:
http://urn./URN:ISBN:978-952-367-886-6
2021
8
Verkkokauppa.com · Report of the Board of Directors
Distribution of shareholders at 31 December 2021
Size of shareholding, shares
Number of
shareholders
% of
shareholders
Number of
shares % of shares
1 - 100 9,640 51.2
374,378
0.8
101 - 500 6,219 33.1
1,572,646
3.5
501 - 1 000 1,615 8.6
1,246,336
2.8
1 001 - 5 000 1,124 6.0
2,286,015
5.1
5 001 - 10 000 107 0.6
794,015
1.8
10 001 - 50 000 76 0.4
1,445,772
3.2
50 001 - 100 000 6 0.0
368,724
0.8
100 001 - 500 000 12 0.1
3,148,029
7.0
500 001 - 12 0.1
33,829,215
75.1
Total 18,811 100.0
45,065,130
100.0
Nominee registered 9
5,204,934
11.55
Shareholder breakdown by sector at 31 December 2021
Number of
shareholders
% of
shareholders
Number of
shares % of shares
Private corporates 487 2.6
2,105,124
4.7
Financial and insurance institutions 34 0.2
9,922,037
22.0
Public entities 6 0.0
6,047,359
13.4
Non-prot organizations 59 0.3
325,944
0.7
Households 18,178 96.6
23,992,928
53.2
Non-Finnish shareholders 47 0.3
2,671,738
5.9
Total 18,811 100.0
45,065,130
100.0
Major shareholders at 31 December 2021
Shareholder Number of shares % of shares
Seppälä Sam Samuli 15,957,000 35.41
Keskinäinen Työeläkevakuutusyhtiö Varma 3,865,932 8.58
Mandatum Henkivakuutusosakeyhtiö
2,194,311
4.87
Keskinäinen Eläkevakuutusyhtiö Ilmarinen 2,174,309 4.82
Nordea Nordic Small Cap Fund
1,411,669
3.13
Sijoitusrahasto Evli Suomi Pienyhtiöt 1,280,000 2.84
Skogberg Ville Johannes 634,266 1.41
Danske Invest Finnish Equity Fund 610,000 1.35
Keskinäinen Vakuutusyhtiö Kaleva 566,475 1.26
Op-Suomi Pienyhtiöt 485,603 1.08
10 biggest shareholders, total 29,179,565 64.75
Other shareholders 15,885,565 35.25
Total
45,065,130
100.0
2021
9
Verkkokauppa.com · Report of the Board of Directors
Alternative performance measurement
In this release, Verkkokauppa.com Oyj presents certain key gures that
are not accounting measures dened under IFRS and therefore are
considered as Alternative Performance Measures (APM). Verkkokauppa.
com Oyj applies in the reporting of alternative performance measures
the guidelines issued by the European Securities and Market Authority
(ESMA).
Verkkokauppa.com Oyj uses alternative performance measures
to reflect the underlying business performance and to enhance
comparability between nancial periods. The company’s management
believes that these key gures provide supplementing information on
the income statement and nancial position.
Alternative performance measures do not substitute the IFRS key
ratios.
Key performance indicators
Financial key gures
2021
2020 2019
Revenue, thousand euros 574,514
553,636
504,113
Gross prot, thousand euros 91,191
88,413
73,874
Gross margin, % 15.9%
16.0%
14.7%
EBITDA, thousand euros 25,279
24,593
16,330
EBITDA, % 4.4%
4.4%
3.2%
Operating prot, thousand euros 20,296
19,583
11,290
Operating prot, % 3.5 %
3.5 %
2.2 %
Comparable operating prot,
thousand euros
20,296
20,390
11,290
Comparable operating prot, % 3.5%
3.7%
2.2%
Prot for the period, thousand euros 15,093
14,622
7,810
Equity ratio, % 21.4%
24.5%
23.4%
Gearing, % -2.2%
-52.2%
-52.1%
Personnel at the end of the period 825
818
758
Share performance indicators
2021
2020 2019
Basic earnings per share, EUR
0.34
0.33
0.17
Diluted earnings per share, EUR
0.33
0.32
0.17
Number of issued shares
45,065,130
45,065,130
45,065,130
Number of treasury shares
323,397
352,898
81,296
Weighted average number of shares outstandaing
44,731,007
44,906,590
44,983,834
Dilutes weighted average number of shares outstandaing
45,204,923
45,544,173
45,042,007
Equity per share, EUR
0.79
0.90
0.81
Dividend per share, EUR*
0.246
0.450
0.21
Payout ratio, %
73%
138%
123%
Effective dividend yield, %
3.5%
6.3%
6.1%
Price per earnings ratio (P/E ratio)
21.13
21.87
20.31
Lowest share price
6.61
2.49
2.85
Highest share price
10.34
7.90
4.46
Average share price
8.17
4.95
3.67
Period end share price
7.13
7.12
3.53
Market value of the shares at period end, MEUR
321.3
320.9
159.1
The number of traded shares
20,923,735
26,714,366
6,813,481
Traded shares of all shares, %
46.4%
59.3%
15.1%
* 2021: Board of directors’ proposal including dividend payment authorization
2021
10
Verkkokauppa.com · Report of the Board of Directors
Formulas for key ratios
Gross prot
Revenue – materials and services
Gross margin, %
(Revenue – materials and services) / Revenue
x 100
EBITDA
Operating prot + depreciation + amortization
EBITDA, %
(Operating prot + depreciation + amortization) / Revenue
x 100
Operating prot (EBIT)
Result for the period before income taxes and net
nance income and costs
Operating margin (EBIT), %
Operating prot / Revenue
x 100
Items affecting comparability
Material items which are not part of normal operating activities such as expenses related to
possible transfer to ofcial list of Nasdaq Helsinki, restructuring costs including workforce
redundancy and other restructuring costs, impairment losses of xed assets, gain or losses
recognized from disposals of xed assets/businesses, transaction costs related to business
acquisition, compensations for damages and legal proceedings
Comparable operating prot
Operating prot before taxes and nancial net adjusted with items affecting comparability
Comparable operating prot margin %
Comparable operating prot / revenue
Equity ratio, %
Total equity / Balance sheet total – advance payments received
x 100
Interest-bearing net debt
Lease liabilities – cash and cash equivalents
Gearing, %
Lease liabilities – cash and cash equivalents / Total equity
x 100
Investments
Increases in intangible assets, property, plant and equipment during the nancial period
Earnings per share, Basic
Prot for the period attributable to equity holders of the company Weighted average number
of shares outstanding
Earnings per share, diluted
Prot for the period attributable to equity holders of the company /
Weighted average number of shares outstanding + dilutive potential shares
Equity per share
Equity / Number of shares at reporting day
Dividend per share
Dividend / Number of shares at reporting day revised by share split
Dividend payout ratio, %
Dividend per share revised by share split / Earnings by share revised by share split
x 100
Effective dividend yield %
Dividend per share / Share price at reporting day
x 100
Price per earnings ratio (P/E ratio)
Share price at reporting day / Earnings per share
Traded shares of all shares, %
The number of changed share during the reporting period /
The average number of share during the reporting period
x 100
Reconciliation of alternative key ratios
EUR thousand 2021 2020
Operating prot 20,296 19,583
- advisory costs related to transfer to ofcial list
of Nasdaq Helsinki
- 807
Comparable operating prot 20,296 20,390
2021
11
Verkkokauppa.com · Report of the Board of Directors
1 Income statement 2 Statement of comprehensive income
EUR thousand Note
2021
2020
Revenue
7.2
Other operating income
7.3
Materials and services
7.4
-483,323
-465,222
Employee benet expenses
7.5
-36,570
-35,560
Depreciation and amortization
7.7
-4,983
-5,010
Other operating expenses
7.8
-30,263
-28,818
Operating prot
Finance income
7.9
Finance costs
7.9
-1,352
-1,423
Prot before income taxes
Income taxes
7.10,7.16
-3,856
-3,550
Prot for the nancial year
Prot for the nancial year attributable to
Equity holders of the company 15,093
Earnings per share calculated from the prot attributable to
equity holders
Earnings per share, basic (EUR)
7.11
Earnings per share, diluted (EUR)
7.11
EUR thousand Note
2021
2020
Prot for the nancial year 15,093 14,622
Comprehensive income for the nancial year
Comprehensive income for the nancial year attributable to
Equity holders of the company 15,093 14,622
The notes are an integral part of these nancial statements.
Financial Statements 2021
2021
12
Verkkokauppa.com · Financial Statements 2021
3 Statementofnancialposition
EUR thousand Note
31 Dec 2021
31 Dec 2020
Non-current assets
Intangible assets
7.13
Property, plant and equipment
7.14
Right-of-use assets
7.15
Equity investments
7.22.2
Deferred tax assets
7.16
Trade receivables
7.17
Other non-current receivables 425
Non-current assets, total
Current assets
Inventories
7.18
Trade receivables
7.17
Other receivables
7.17
Accrued income
7.17
Cash and cash equivalents
7.19
Current assets, total
Total assets
EUR thousand Note
31 Dec 2021
31 Dec 2020
Equity
Share capital
Treasury shares
-1,611 -2,206
Invested unrestricted equity fund
Retained earnings
-3,838 2,217
Prot for the nancial year
Total equity
7.20
Non-current liabilities
Lease liabilities
7.15
Provisions
7.24
Non-current liabilities, total
Current liabilities
Lease liabilities
7.15
Advance payments received 5,761 8,475
Trade payables 77,609 70,171
Other current liabilities
7.23
Accrued liabilities
7.23
Income tax liabilities 1,738 1,463
Current liabilities, total
Total liabilities
Total equity and liabilities
The notes are an integral part of these nancial statements.
2021
13
Verkkokauppa.com · Financial Statements 2021
4 Statementofcashows 5 Statement of changes in equity
EUR thousand Note
2021
2020
Cash ow from operating activities
Prot before income taxes
Adjustments
Depreciation and impairment
7.7
Finance income and costs
7.9
Other adjustments
Cash ow before change in working capital
Change in working capital
Increase (-)/decrease (+) in non-current non-interest-bearing trade receivables
-615
-1,309
Increase (-)/decrease (+) in trade and other receivables
-5,892
-4,371
Increase (-)/decrease (+) in inventories
-12,419
-8,682
Increase (+)/decrease (-) in current liabilities
Cash ow before nancial items and taxes
Interest paid
-155
-66
Interest received
Interest of lease liabilities
-1,198
-1,323
Income tax paid
-3,521
-1,970
Cash ow from operating activities
Cash ow from investing activities
Purchases of property, plant and equipment -3,951
-769
Purchases of intangible assets -903
-587
Cash ow from investing activities
-4,854
-1,356
Cash ow from nancing activities
Increase (+)/decrease (-) in lease liabilities -3,868
-3,821
Dividends paid -20,129
-9,597
Acquisition of treasury shares -
-1,505
Cash ow from nancing activities -23,996
-14,923
Increase (+)/decrease (-) in cash and cash equivalents -22,182
Cash and cash equivalents at beginning of nancial year
Cash and cash equivalents at end of nancial year
7.19
The notes are an integral part of these nancial statements.
EUR thousand Note A B C D E F
Equity 1 Jan 2021
-2,206
Prot for the nancial year
Changes in fair values of equity investments
Comprehensive income for the nancial year, total
Dividend distribution
7.20
Acquisition of treasury shares
Disposal of treasury shares – Board fees
Share-based incentives
7.12
Transactions with owners, total - 595 122 - -20,677 -19,960
Equity 31 Dec 2021 100 -1,611 25,938 0 11,255 35,683
Equity 1 Jan 2020
-701
Prot for the nancial year
Changes in fair values of equity investments
Comprehensive income for the nancial year, total
Dividend distribution
7.20
-9,597
-9,597
Acquisition of treasury shares
-1,505
-1,505
Disposal of treasury shares — Board fees
Share-based incentives
7.12
Transactions with owners, total
-1,505
-9,239
-10,635
Equity 31 Dec 2020
-2,206
A Share capital
B Treasury shares
C Invested unrestricted equity fund
D Fair value reserve
E Retained earnings
F Total equity
2021
14
Verkkokauppa.com · Financial Statements 2021
6 Accounting policies
To improve the readability and understandability of the financial
statements, Verkkokauppa.com Oyj presents some of the accounting
policies as part of these notes, highlighted in gray text boxes. The
accounting policies repeat the text of the standard if the Company
considers it necessary in order to understand the application of said
policies.
6.1 Basic information on the Company
Helsinki. The business identity code of the Company is 1456344-5 and
it is domiciled in Helsinki , F inland . The registered address of its head
ofce is T y ynenmere nkatu 11, 00220 Helsinki , Finland .
The Board of Directors of the Company approved these nancial
statements for publication at its meeting on 1 March 2022. In
accordance with the Finnish Corporate Act, shareholders have the right
to approve or reject the nancial statements at the Annual General
Meeting held after the publication of the nancial statements. It is also
possible to decide upon changes to the nancial statements at the
Annual General Meeting.
6.2 Basis of preparation
These nancial statements have been prepared in accordance with
the International Financial Reporting Standards (IFRS) and their
interpretations (SIC and IFRIC) adopted for use in the EU on 31
December 2021. The notes to the nancial statements comply with
Finnish accounting and corporate legislation that supplements IFRS.
The financial statements have been prepared on a historical
cost basis, except for equity investments that are measured at fair
value through other comprehensive income, share-based payments
measured at fair value at the grant date, and lease liabilities and right-
of-use assets discounted at the present value.
The financial statements are presented in euros, which is the
company’s functional and presentation currency. Transactions
denominated in foreign currencies are converted into the functional
currency at the exchange rates prevailing on the dates of the
transactions. Receivables and liabilities denominated in foreign
currencies are converted at the exchange rates prevailing on the
balance sheet date. Exchange rate differences arising from operating
activities are recognized as adjustments to purchases and exchange
rate differences in cash and cash equivalents are recognized in
nancing income and expenses.
The gures in the nancial statements are presented in thousands
of euros. The gures are rounded, and therefore the sum of individual
gures may deviate from the aggregate amount presented.
6.3 Accounting policies requiring judgment by the
management and key factors of uncertainty
related to estimates
The preparation of financial statements in accordance with IFRS
requires management to exercise judgment related to the selection and
application of accounting policies.
In addition, management must make forward-looking accounting
estimates and assumptions that may affect the amounts of assets,
liabilities, income and expenses recognized during the reporting period.
The actuals may differ from said estimated amounts. The Company has
taken into account the possible impact of the COVID-19 pandemic on
its nancial reporting.
Since the outbreak of the COVID-19 pandemic, the Company has
launched several initiatives with the aim of ensuring business continuity
and staff safety. The Company is monitoring and reporting on the
COVID-19 situation on a frequent basis. The COVID-19 pandemic
has been a constantly evolving situation and its impact on economic
developments, consumer demand and consumer purchasing behavior,
business sales and wholesale trade has been difcult to assess. Since
March 2020, the company has monitored its financial customers’
payment behavior and the development of account receivables on a
daily basis, and has managed credit limits and potential credit losses.
No significant changes in customer payment behavior have been
observed. In addition, the COVID-19 pandemic has not had a signicant
impact on the inventory revenue period or the write-down of inventories.
There have been no signicant changes in the Company’s leases or
payment terms as a result of the COVID-19 pandemic that would have
affected the company’s right-of-use assets or their lease liabilities.
The current strong cash position and unused revolving credit facilities
(EUR 20 million) will secure business continuity even under these
exceptional circumstances.
Management judgment related to the choice and application
of accounting policies
Management is required to make judgment-based decisions relating
to the selection and application of IFRS accounting policies. This
relates in particular to cases where IFRS contain alternate methods
of recognition, measurement and/or presentation. The following entail
signicant judgment:
Segment reporting
The management of Verkkokauppa.com Oyj has exercised judgment in
applying the consolidation criteria to combine the operating segments
into a single reportable segment. Customers are the same in all
operating segments that offer the same goods and services under
the same terms in one main market, i.e. Finland. At the core of the
Company’s business model is a strong integration of webstore and
2021
15
Verkkokauppa.com · Financial Statements 2021
retail stores, joint support functions serving the entire business as well
as the volume benets enabled by centralized business.
Key factors of uncertainty related to estimates
The estimates and assumptions are based on historical knowledge
and/or other justiable assumptions that are considered reasonable at
the time of preparing the nancial statements. It is possible that actual
results may differ from the estimates used in the nancial statements.
The factors of uncertainty and assumptions made related to estimates
that may give rise to a signicant risk of change in the carrying values
of assets and liabilities relate to the following items:
Measurement of leases
The amount of the lease liabilities and the right-of-use assets to be
recognized in the balance sheet is signicantly affected by the discount
rate used in calculating their present values and by the inclusion of
options to extend the lease. The management of the Company has
taken into account the Company’s business model in relation to
physical trading locations in an ever-changing business environment
when assessing the likelihood of extension options being exercised.
The management has taken into consideration the changes in the
nancial position of the Company when dening the risk premium of
the company-specic discount rate.
Measurement of inventories
A significant part of the Company’s balance sheet is inventories
consisting of goods intended for sale. Inventories bear the risk of
the recoverable amount being below cost. To assess the risk, the
management of the Company regularly monitors the item turnover rates
and compares the sale price with the inventory value. A write-down
is recognized if the sale price of an item at the reporting date is lower
than its cost in the balance sheet. In addition, the Company separately
recognizes write-down for older items according to the inventory dates.
Risk of credit losses of company-nanced Apuraha consumer
nancing service receivables
The Company offers Apuraha financing to its customers. These
receivables involve a risk of credit loss. The Company recognizes
expected credit losses using the provision matrix model. The
provision matrix is described in more detail in the note on Financial
risk management 7.22.3. The sufciency of credit loss percentages is
monitored regularly. The assessment of the expected level of credit
losses and the sufciency of credit loss rates is based on changes in
customer payment behavior and the level of actual credit losses.
Rebates related to inventory
The amount and timing of inventory-related rebates are subject to
uncertainty. The realization of contractual targets creates uncertainty
in the amount of the purchase credit to be recognized. Management
regularly assesses the amount of target purchase credits to be
recognized by monitoring both actual purchase volumes and potential
rebates. In case the contract period extends beyond the balance sheet
date, the amount to be amortized includes management estimates.
Provisions
The Company recognizes provisions related to the following items:
product warranties and third-year warranties. Estimates are made
as to the likelihood and amount of the provisions being realized. The
management of the Company regularly assesses the amount of costs
incurred based on historical actuals.
6.4 EectsofIFRSstandardsthatbecomeeective
duringorafterthenancialyear
No IFRS amendments, IFRIC interpretations, or annual improvement
or amendment to IFRS issued on or after 1 January 2021 have had a
material impact on the 2021 nancial statements.
In addition, no IFRS that come into effect later and would affect the
result, nancial position or notes of Verkkokauppa.com Oyj were known
at the balance sheet date.
2021
16
Verkkokauppa.com · Financial Statements 2021
7 Notestothenancialstatements
7.1 Segment reporting
Verkkokauppa.com Oyj reports on the operating segments in a manner
consistent with the internal reporting to the chief operating decision
maker. The chief operating decision maker of Verkkokauppa.com Oyj
is the Board of Directors together with the CEO. The chief operating
decision maker is responsible for allocating resources to operating
segments and evaluating their performance.
Verkkokauppa.com Oyj has one reportable segment. All the
aggregated operating segments share similar characteristics.
Customers are the same in all operating segments that offer the same
goods and services under the same terms in one main market, i.e.
Finland. At the core of the Company’s business model is a strong
integration of webstore and retail stores, joint support functions
serving the entire business as well as the volume benets enabled by
centralized business.
Due to the large number of customers and the nature of the
business, sales to a single customer did not exceed 10 percent of total
revenue in 2021 nor in 2020. The total revenue of the Company is
mainly generated in one geographical area, Finland.
7.2 Revenuefromcontractswithcustomers
Revenue streams
The revenue streams of the Company consist of the sale of goods and
services. The product range consists of more than 80,000 products from
26 main product areas that the company sells to consumers through its
own webstore and four retail stores in Finland. The services offered for
sale by the Company include installation and maintenance services,
subscriptions and visibility sales. The customers of Verkkokauppa.com
Oyj are both consumers and businesses.
Revenue recognition from sale of goods
The sale of goods to the customer through the retail stores is recognized
as revenue upon handover of the good when control is transferred. If
the customer has chosen delivery, the sale is recognized when the
customer assumes control of the goods.
The transaction price for sale of goods consists of the list price of
the goods, the variable consideration for the right of return and the
transportation fee where the customer has chosen delivery. In relation
to the right of return, the company uses the expected value method to
calculate the return of products within 32 days of the right of return, and
recognizes the refund liability (included in accrued liabilities) and the
asset (included in accrued income) related to the returned goods.
Verkkokauppa.com Oyj offers its customers various payment methods,
the most important of which is Apuraha customer nancing. However,
regardless of the method of payment, the price of the good is always the
same. By paying through the Apuraha service, the customer is granted
the ability to pay for their purchase in installments and Verkkokauppa.com
Oyj receives interest on the capital loaned. In addition to Verkkokauppa.
com Oyj, a third party may also act as the nancier. Since the end of
2020, customers have also been offered a supplier credit purchase
nancing solution, which is supplied by Salus Group Oy.
In cases where the customer chooses Apuraha as the payment
method and a third party acts as the financier, the revenue from
the nancing of the customer is treated as a variable element of the
transaction price. The management of the Company considers that
the estimate of this variable consideration is limited. If the revenue
from customer nancing were recognized at the time of the transfer of
control, a signicant reversal of sales revenue could potentially occur.
Thus, Verkkokauppa.com Oyj recognizes the revenue from customer
nancing on a monthly basis according to the actuals.
In the case that Verkkokauppa.com Oyj nances a customer, the
income from the nancing component is recognized accordingly on a
monthly basis according to the actual performance. Verkkokauppa.com
sells all its overdue receivables on a “continuous trade” basis, where
all receivables overdue for more than 60 days are sold to third parties.
This reduces the risk of company receivables.
The contracts with customers of Verkkokauppa.com Oyj do not
contain any separate performance obligations that are to be recognized
as income in different periods. The product warranties offered by the
Company, third-year warranty and own-brand warranties are treated
as assurance-type warranties because they do not render additional
service to the customer. Assurance-type warranties are recognized as
provisions. Detailed principles can be found in the note on Provisions
7.24.
Revenue recognition of sale of services
Revenue from the sale of customer contracts for installation and
maintenance services is recognized when the service is performed.
The duration of rendering services is short and the duration of the
services is usually dened in hours. Revenue from visibility sales is
mainly recognized by the company over time, based on the passage of
2021
17
Verkkokauppa.com · Financial Statements 2021
time. The time-based method of determining the degree of fulllment
is equivalent to an input. The customer will benet from the visibility
during the service. The transaction price of service sales contracts
does not contain variable elements but mainly consists of xed prices.
A customer contract receivable is recognized if the billing for visibility
services is less than the revenue recognized on an accrual basis. An
asset based on a customer agreement is presented as part of accrued
income in the balance sheet.
Gift cards
Verkkokauppa.com sells gift cards in the amount chosen by the
customer. When a gift card is sold, a gift card liability is recorded. When
the gift card is redeemed, sales revenue is recognized. Unredeemed
gift cards are recognized as revenue when they expire. Gift cards are
valid for one year from the date of purchase.
Presentation of revenue
Verkkokauppa.com Oyj presents in its net sales the sales revenue
from customer contracts, net of indirect taxes. Verkkokauppa.com
Oyj is the principal for the products and services it sells, except for
subscriptions sold on behalf of telecommunications operators, in which
case Verkkokauppa.com acts as agent and presents the commission
portion in the revenue.
The management of Verkkokauppa.com Oyj has exercised judgment
in classifying company-nanced Apuraha customer funding revenue
as revenue rather than nancial income. The interpretation of the
management of the Company is that offering customer nancing is an
integral part of the Company’s business and business model.
The visibility the Company sells in-store, online and in various
advertising media is presented as part of revenue, as it is part of the
business model of Verkkokauppa.com Oyj and its ordinary business.
To the extent that the consideration received is linked to the purchase
volume of Verkkokauppa.com Oyj, the consideration received for
visibility is mainly presented as purchase adjustments.
Disaggregation of revenue
The Company’s revenue consists of revenue from the sale of customer
contracts. Other types of income are specied in the notes on Other
operating income 7.3 and Finance income and costs 7.9. The Company’s
entire revenue is generated in its functional currency, the euro, and in
one main market area, Finland.
Timing of satisfying performance obligations
Revenue recognized at one point in time relates to the sale of goods.
For services, the Company mainly recognizes revenue over time
EUR thousand
2021
2020
At a point in time 569,424 549,062
Over time 5,090 4,574
Revenue, total 574,514 553,636
Revenue by external customer location
EUR thousand
2021
2020
Finland 534,954 506,185
Rest of the world 39,560 47,451
Revenue by external customer location 574,514 553,636
Income recognized from customer nancing
The company presents all income from customer nancing as part of
revenue in the primary nancial statements.
The following table shows the income from company-funded
Apuraha client nancing recognized during the nancial year, broken
down into interest income recognized using the effective interest rate
method and other income. Other income consists of other fees.
EUR thousand 2021 2020
Interest income recognized using effective
interest rate method
2,778 2,034
Other income from company-nanced customer
nancing
1,540 1,558
Income from company-funded Apuraha, total 4,318
3,592
Contract assets and liabilities
EUR thousand
31 Dec 2021
31 Dec 2020
Contract assets 1,807 1,685
Contract liabilities 2,128 2,248
The contractual assets relate to uninvoiced but already rendered
services at the balance sheet date as well as assets related to the
right of return. The contractual assets related to services already
rendered are transferred to trade receivables when they are invoiced.
The invoicing interval depends on the customer contract. On average,
the invoicing frequency is three months. There have been no signicant
changes in contractual assets between the reporting periods.
Contract liabilities include the gift card liability and a repayment
liability related to the right of return. Verkkokauppa.com gift cards are
valid for one year from the date of purchase. Unredeemed gift cards
are recognized as revenue when they expire. Verkkokauppa.com offers
a 32-day right of return. The refund liability linked to the right of return
is canceled at the end of the refund period. Contract liabilities have
decreased in respect of refund liability due to a reduction in the relative
amount of repayments.
During the nancial year 2021, the amount recognized as revenue
at the beginning of the period, included in the contract liabilities, was
EUR 1,480 thousand (1,101).
2021
18
Verkkokauppa.com · Financial Statements 2021
7.3 Other operating income
In other operating income, the Company presents rental income, capital
gains and other income that is not directly related to the Company’s
ordinary business operations.
Lease income is related to the sublease of right-of-use asset items.
The related accounting policies are described in more detail in the note
on Leases 7.15.
EUR thousand 2021 2020
Lease income from subleasing right-of-use
assets
530
413
Other income 392
145
Other operating income, total 922
558
7.4 Materials and services
EUR thousand 2021 2020
Purchases during the nancial year 494,566
473,082
Change in inventories -12,419
-8,682
External services 1,177
822
Materials and services, total 483,323
465,222
7.5 Employeebenets
Obligations related to short-term employee benets
Short-term employee benets include wages, including benets in kind
and annual leave pay payable within 12 months. Short-term employee
benets are recognized for work performed up to the balance sheet
date under other liabilities and are measured at the amount expected
to be paid when the liabilities are settled.
Pension obligations
The pension plan of Verkkokauppa.com Oyj is a dened contribution
plan. Contributions to dened contribution pension schemes are paid to
pension insurance companies, after which the Company no longer has
any other payment obligations. Contributions to dened contribution
pension plans are recognized as an expense in the income statement
for the nancial year to which they relate.
EUR thousand
2021
2020
Wages and salaries 29,285 28,856
Pension expenses – dened contribution plans 4,921 4,402
Share-based payments 198 357
Other personnel-related expenses 1,051 955
Voluntary employee benets 1,538 1,340
Total employee benets before capitalization 36,994
35,909
Capitalized employee benets for
the nancial year
Wages and salaries -353 -296
Pension expenses – dened contribution plans -58 -44
Other personnel-related expenses -12 -9
Capitalized employee benets for
the nancial year
-423
-350
Total employee benets 36,570
35,560
Capitalized employee benets are mainly related to the development of
the Company’s enterprise resource planning system, which is described
in more detail in note 7.13 Intangible assets, and to the logistics
automation of the Jätkäsaari warehouse.
2021
2020
Number of employees at the end of
the nancial year
825
818
The number of employees includes both full-time and part-time
employees. The amount does not include temporary agency workers.
Information on management’s employee benets is presented in the
note on Remuneration of key management personnel 7.6.
Share-based payment is described in more detail in Share-based
payments 7.12 in the notes to the nancial statements.
7.6 Remuneration of key management personnel
Key management personnel include the members of the Board of
Directors, the president and CEO, and the members of the Executive
Board.
The Board’s Remuneration Committee prepares a frame of reference
for the remuneration, fees and other benets of the president and CEO
and the Executive Committee, and the Board of Directors decides
on the CEO’s remuneration and other benets. The Chairman of the
Board of Directors approves the remuneration and other benets of the
Executive Board, which is subordinate to the president and CEO.
Remuneration of the CEO and the management team
Short-term employee benets
The short-term employee benets of the president and CEO consist
of a xed salary and benets in kind (such as a company car and
phone) and an incentive bonus for achieving nancial and operational
objectives. The short-term employee benets of the Management Team
consist of basic salary and benets in kind (such as a company car and
phone), and an incentive bonus for achieving nancial and operational
objectives.
The short-term compensation scheme consists of an annual bonus
program with performance criteria (incentive bonus). The performance
criteria and the determination of the remuneration are decided annually
by the Board based on the proposal of the Remuneration Committee.
The 2021 performance criteria were based on 25% of 2021 revenue
and 75% of the Company’s comparable operating prot. In addition,
the Board of Directors may, at its discretion, decide to pay other lump
sums (bonus).
2021
19
Verkkokauppa.com · Financial Statements 2021
Post-employment benets
The CEO or members of the Management Team do not have any post-
employment benets.
Benets payable in the event of termination
The notice period of the president and CEO is 12 months. If the company
terminates the CEO, the CEO will receive compensation corresponding
to a xed salary of six months, pursuant to the CEO agreement. As a
rule, the notice period for other members of the Management Team is
six months and the corresponding compensation for certain persons
corresponds, as a rule, to six months’ salary at the time of termination
of contract.
Share-based incentives
The company has two separate share-based incentive schemes
for the CEO and the Management Team, the Matching Share Plan
2018–2020 and the Performance Matching Share Plan 2020–2022.
The plans are designed to align the objectives of shareholders and
management to increase the long-term value of the Company, to
encourage management to invest personally in the Company’s shares,
to engage executives in the Company and to provide them with a
competitive remuneration package based on the acquisition, earning
and accumulation of the Company’s shares.
The programs are described in more detail in the note on Share-
based payments 7.12
The following table shows the remuneration of the president and
CEO and the Executive Committee, as well as the shareholdings
and holdings as a percentage of the total share capital. The amounts
presented are performance-based. The share-based payments are
based on an estimate of their realization at the end of the year. The
performance share-based payment includes the cost effect on the
nancial year, regardless of the time of the share transfer.
Management remuneration
2021
EUR thousand
Panu Porkka,
CEO
Management
Team
2021,
total
Short-term employee
benets
Fixed basic salaries and
fringe benets
442 1,247 1,688
Incentive bonus 120 241 361
Statutory pension 92 245 337
Share-based payments
Share-based payments 60 164 224
Total 714 1,897 2,611
Shareholding, pcs 90,000 183,922 273,922
% of shares 0.20% 0.41% 0.61%
2020
EUR thousand
Panu Porkka,
CEO
Management
Team
2021,
total
Short-term employee
benets
Fixed basic salaries and
fringe benets
454 1,215 1,669
Incentive bonus - - 0
Statutory pension 69 186 255
Share-based payments
Share-based payments 102 256 357
Total
625
1,657 2,282
Shareholding, pcs 85,000 234,038 319,038
% of shares 0.19% 0.52% 0.71%
Remuneration of the Board of Directors
The Annual General Meeting of Verkkokauppa.com Oyj elects the
members of the Board of Directors annually and decides on their
remuneration. The term of ofce of the members shall run until the
close of the next Annual General Meeting. The members of the Board
of Directors are not members of the share-based remuneration scheme,
nor are they employed by Verkkokauppa.com Oyj.
The remuneration of the members of the Board of Directors consists
of annual fees paid on the basis of their membership of the Board of
Directors and committee fees paid either as an annual fee or as meetings
fees. The fees vary depending on the member’s role as Chair or Member
of the Board or Committee. In addition, the members of the Board of
Directors are reimbursed for reasonable actual travel and accommodation
expenses and other possible costs related to Board and Committee work.
The Annual General Meeting of Verkkokauppa.com Oyj decided on
25 March 2021 that half of the annual remuneration of the members of
the Board will be paid in shares of the Company after each quarterly
announcement and the remaining part of the annual remuneration
will be paid in cash, which will cover the taxes arising from the
remuneration. During the nancial year 2021, the company transferred
14,501 (25,318) treasury shares for the payment of the fees. Shares
issued as fees do not have any restrictions on ownership or disposal.
The following table shows the total remuneration of the Board of
Directors. The amounts presented are performance-based.
.
EUR thousand
2021
2020
Board members, 31 Dec 2021
Arja Talma
, Chair of the Board 77 45
Christoffer Häggblom
, Vice Chair of the Board,
Chair of the Remuneration Committee
76 84
Kai Seikku
, Chairman of the Audit Committee 52 51
Samuli Seppälä
36 45
Mikko Kärkkäinen
(member since 25 Mar 2021) 26 -
Frida Ridderstolpe
(member since 25 Mar 2021) 26 -
Johan Ryding
(member since 25 Mar 2021) 26 -
Robert Burén
(member until 25 Mar 2021) 10 35
Mikael Hagman (member until 4 Jan 2021) 1 35
Remuneration of the Board of Directors, total 331
295
2021
20
Verkkokauppa.com · Financial Statements 2021
The following tables show the shareholdings and holdings of the Board
of Directors.
Shareholding, pcs
2021
2020
Arja Talma
, Chair of the Board
15,290
11,612
Christoffer Häggblom
, Vice Chair of the Board,
Chair of the Remuneration Committee
26,669
23,228
Kai Seikku
, Chairman of the Audit Committee
146,564
144,498
Samuli Seppälä
15,957,000
18,288,342
Mikko Kärkkäinen
(member since 25 Mar 2021)
1,098
-
Frida Ridderstolpe
(member since 25 Mar 2021)
1,098
-
Johan Ryding
(member since 25 Mar 2021)
608
-
Robert Burén
(member until 25 Mar 2021) -
17,612
Mikael Hagman (member until 4 Jan 2021) -
14,724
Number of shares, total
16,148,327
18,500,016
% of shares
2021
2020
Arja Talma
, Chair of the Board 0.03%
0.03%
Christoffer Häggblom
, Vice Chair of the Board,
Chair of the Remuneration Committee
0.06%
0.05%
Kai Seikku
, Chairman of the Audit Committee 0.33%
0.32%
Samuli Seppälä
35.41%
40.58%
Mikko Kärkkäinen
(member since 25 Mar 2021) 0.00%
-
Frida Ridderstolpe
(member since 25 Mar 2021) 0.00%
-
Johan Ryding
(member since 25 Mar 2021) 0.00%
-
Robert Burén
(member until 25 Mar 2021) -
0.04%
Mikael Hagman (member until 4 Jan 2021) -
0.03%
% of shares, total
35.83%
41.05%
7.7 Depreciation and amortization
EUR thousand
2021
2020
Intangible assets
Development costs 283 321
Other intangible assets 93 23
Amortization of intangible assets, total 375
344
Property, plant and equipment
Machinery and equipment 823 755
Other tangible assets 136 129
Depreciation of tangible assets, total 959
884
Right-of-use assets
Premises and facilities 3,577 3,594
Machinery and equipment 72 189
Depreciation of right-of-use assets, total 3,650 3,783
Depreciation and amortization, total 4,983 5,010
7.8 Other operating expenses
EUR thousand
2021
2020
Premises maintenance and operation costs 6,305 5,203
Financial transactions expenses 2,246 2,246
Marketing 8,389 7,988
Administrative services 10,298 8,563
Other expenses 3,024 4,818
Other operating expenses, total 30,263 28,818
Auditor fees
EUR thousand
2021
2020
Statutory audit 104 92
Other services - 214
Auditor fees, total
104
307
The audit firm selected by the Annual General Meeting is
PricewaterhouseCoopers Oy. Other non-audit services provided by
PricewaterhouseCoopers Oy in 2020 consisted mainly of consultancy
services related to the Company’s listing on the main stock exchange.
7.9 Finance income and expenses
Finance income
EUR thousand 2021 2020
Interest income 5 11
Finance income, total 6
11
Finance costs
EUR thousand
2021
2020
Lease liability interest 1,198 1,323
Other interest costs 30 19
Other nance costs 45 47
Exchange rate differences on cash and cash
equivalents
79 33
Finance costs, total 1,352
1,423
In addition to nancial income and costs, exchange rate differences
have been recognized as adjustments to purchases for the nancial
year.
2021
21
Verkkokauppa.com · Financial Statements 2021
7.10 Income taxes
Taxes calculated on the basis of the taxable prot for the nancial year,
tax adjustments for earlier reporting periods as well changes in deferred
tax liabilities and assets are recognized in the income taxes item in the
income statement. The tax effect of items recognized directly in equity
is respectively recognized as part of equity. The current tax charge is
calculated based on taxable income at the rate xed on the balance
sheet date.
Income taxes in the income statement
EUR thousand 2021 2020
Current taxes 3,796
3,712
Change in deferred taxes 60
-162
Income taxes, total 3,856
3,550
Taxes entered with a positive value are recognized as expenses and
taxes with a negative value are recognized as income.
The company has no pending tax disputes.
Reconciliation of the effective tax rate
EUR thousand
2021
2020
Prot before income taxes 18,949
18,171
Taxes calculated at the Finnish tax rate, 20,0% 3,790
3,634
Effect of tax-exempt income and non-deductible
expenses
66
-85
Income taxes recognized in the income
statement, total
3,856
3,550
The Finnish corporate tax rate was 20 percent in the nancial statements
for the nancial years 2021 and 2020.
Taxes related to other comprehensive income items
2021
EUR thousand Before taxes Tax effect After taxes
Changes in fair values of equity
investments
- - -
Other comprehensive income
items of the nancial year, total
0 0 0
2020
EUR thousand Before taxes Tax effect After taxes
Changes in fair values of equity
investments
- - -
Other comprehensive income
items of the nancial year, total
0 0 0
Changes in deferred tax assets and liabilities are presented in the note
on 7.16 Deferred tax assets and liabilities.
7.11 Earnings per share
Basic earnings per share are calculated by dividing the result for the
nancial year attributable to the shareholders by the weighted average
number of shares outstanding during the financial year. For the
calculation of diluted earnings per share, the weighted average number
of shares takes into account the dilutive effect of all potentially dilutive
shares.
2021
2020
Earnings per share, basic
Prot for the year attributable to shareholders,
EUR thousand
15,093 14,622
Weighted average number of outstanding
shares, pcs
44,731,007 44,906,590
Basic earnings per share, EUR 0.34 0.33
Earnings per share, diluted
Prot for the year attributable to shareholders,
EUR thousand
15,093 14,622
Potentially dilutive shares of share-based
incentive plan, pcs
473,916 637,583
Diluted weighted average number of
outstanding shares, pcs
45,204,923 45,544,173
Diluted earnings per share, EUR 0.33 0.32
Further information on the number of shares is presented in the note
on Equity 7.20.
2021
22
Verkkokauppa.com · Financial Statements 2021
7.12 Share-based payments
The Company has a share-based incentive plan that is classied as
equity-based payment arrangement with a net settlement feature. The
Company will, on behalf of the employee, withhold an amount of shares
of the share reward that will cover the taxes and parascal charges paid
in cash.
The benets granted under the plan are measured at the fair value
the share of Verkkokauppa.com Oyj at the grant date and are amortized
over the earning and commitment periods. The expense is presented
in the employee benet expenses. For equity-settled share-based
payment arrangements, an increase corresponding to the expense
entry in the income statement is recognized in equity.
Information on the share-based incentive plan
The Company has two separate share-based incentive plans for the
CEO and members of the Management Team, the Matching Share
Plan 2018–2020 and the Performance Matching Share Plan 2020–
2022. The plans are designed to align the objectives of shareholders
and management to increase the long-term value of the Company, to
encourage management to invest personally in the Company’s shares,
to engage executives in the Company and to provide them with a
competitive remuneration package based on the acquisition, earning
and accumulation of the Company’s shares.
Matching Share Plan 2018–2020
Under the Matching Share Plan 2018–2020, a person may earn an
additional number of shares, as determined by the Board of Directors,
based on their investment in Verkkokauppa.com Oyj shares. The
Matching Share Plan has two commitment periods: 2018–2020 and
2019–2021. The fees to be paid for the commitment period 2018–2020
correspond to the value of a maximum of 50,000 Verkkokauppa.com
Oyj shares and for the commitment period 2019–2021 to the value of
a maximum of 45,000 Verkkokauppa.com Oyj shares, including the
proportion payable in cash.
In March 2021, the Board of Directors decided on a directed free
share issue in order to pay the share rewards under the Matching
Share Plan 2018–2020 for the rst commitment period 2018–2020. On
2 March 2021, a total of 15,000 treasury shares were transferred to
ve key personnel in accordance with the terms of the plan. In addition,
part of the remuneration was paid in cash to cover taxes and parascal
charges incurred by the participant in connection with the remuneration.
No new shares were issued at the time of payment of the share premium
and the decision, therefore, had no dilutive effect.
Performance Matching Share Plan 2020–2022
Under the Performance Matching Share Plan 2020–2022, a person
can earn additional shares based on their investment in Verkkokauppa.
com Oyj shares and the Total Shareholder Return (TSR) of the share.
The Performance Matching Share Plan includes one earnings period
covering the calendar years 2020–2022. The reward to be paid to the
participant shall be determined by the achievement of the TSR target
levels set by the Board of Directors. A maximum of three additional
performance-based matching shares will be paid as a reward for
each allocated share. Participation and remuneration are subject
to the condition that the participant will allocate freely transferable
company shares held by it to the program or acquire company shares
up to an amount determined by the Board of Directors. The payment
of the premium shall also be based on the duration of the participant’s
employment or service at the time of payment of the premium. As a
general rule, the premium shall not be paid if the employment or service
of the participant ends before the payment of the premium.
The program covers seven people, the Managing Director and
six members of the Management Team. The participant is entitled to
receive gross shares on the basis of the plan, but receives a net amount
of shares after the withholding of the advance. The company will retain
some of the shares in order to pay appropriate withholding tax to the
tax authorities. The rewards payable under the plan are estimated to
be equivalent to the value of approximately 540,000 Verkkokauppa.com
Oyj shares (gross amount).
2019–2021 Plan
Grant date
2 Jan 2019/ 25 Feb 2019/ 17 Sep 2019
Vesting start date 1 Jan 2022
Vesting conditions
Share ownership and
employment
Payment method
Shares and cash
Share price at grant date, EUR 4.23/4.07/3.28
Fair value of share at grant date, EUR* 4.87/4.71/3.92
Estimated number of participants at
end of vesting period, %
100%
Estimate change in shares associated
with the plan, %
2%
Number of plan participants
7
2020–2022 Plan
Grant date 7 Feb 2020
Vesting start date 1 Jan 2023
Vesting conditions
Share ownership and
employment
Payment method
Shares and cash
Share price at grant date, EUR 3.60
Fair value of share at grant date, EUR* 4.19
Estimated number of participants at
end of vesting period, %
100%
Estimate change in shares associated
with the plan, %
2%
Number of plan participants 7
* The fair value of the share at the grant date is the current value of the share less
the estimated dividends to be paid out during the commitment period.
2021
23
Verkkokauppa.com · Financial Statements 2021
Effect of share-based payments on the operating result
EUR thousand 2021 2020
Expenses related to share-based payments in
the income statement
198
357
Total 198
357
Effect of share-based payments on the balance sheet
EUR thousand
2021
2020
Recognized in equity 506
550
Total 506
550
7.13 Intangible assets
Intangible assets of Verkkokauppa.com Oyj consist of capitalized
development costs and other intangible assets.
An intangible asset is recognized when its cost can be measured
reliably and it is probable that the economic benets associated with
the asset will ow to the company. The residual values and the useful
lives of the assets shall be reviewed at least at the end of each nancial
year and adjusted, if necessary, to reect changes in the expectations
of economic benets. The Company has no intangible assets with an
indenite useful life and no interest costs related to the acquisition of
assets that have been capitalized as part of the cost of acquisition.
Annual impairment tests are carried out on intangible assets that
are not yet ready for use. In addition, on every balance sheet date, the
management of the Company assesses whether there is any evidence
of impairment regarding other intangible assets. In case such evidence
is present, an estimate is made of the recoverable amount of the asset,
which is the fair value of the asset less costs of disposal or a higher
value in use. In many cases, the recoverable amount is determined
for the cash-generating unit to which the asset belongs. Impairment
is recognized in the income statement. The recognized impairment
losses are reversed if there has been a change in the estimates used
to determine the recoverable amount of the asset. Cancellation is up
to the amount that would have been assigned to the asset’s carrying
amount less depreciation if no impairment loss had been recognized in
previous years.
Research and development expenditure
Research and development costs are expensed in the accounting period
in which they are incurred, except for development costs that meet the
criteria for capitalization. Development expenditure is capitalized as an
intangible asset when it can be demonstrated how the development
project will generate probable economic benets and the expenditure
incurred during the development phase can be measured reliably.
Capitalized development costs are presented as a separate item and
amortized over their useful life. Development expenditure previously
expensed is not capitalized in subsequent periods.
The Company has a self-developed enterprise resource planning
(ERP) system, the development costs of which are capitalized by the
Company to the extent that the capitalization criteria are deemed to be
met. The direct costs of production have been capitalized as acquisition
costs. Capitalized development costs are amortized on a straight-line
basis over their useful life. The estimated economic impact of capitalized
development expenditure is three years.
Other intangible assets
Other intangible assets are recorded in the balance sheet at their
original cost and amortized on a straight-line basis over their useful
lives. The economic life of intangible assets has been estimated at
ve years. The intangible assets of the Company consist mainly of
intangible rights, IT software and licenses.
2021
24
Verkkokauppa.com · Financial Statements 2021
EUR thousand
Development costs
Other intangible assets
Advance payments
and work in progress
Tot al
Cost 1 Jan 2021 2,896 1,268 348
4,511
Increases 350 509 45 903
Disposals -
-
- 0
Transfers between items -
-
- 0
Cost 31 Dec 2021 3,246 1,777 392
5,415
Accumulated amortization and impairment 1 Jan 2021 -2,461 -1,215 - -3,676
Accumulated amortization on disposals
-
-
- 0
Transfers between items - - - 0
Amortization for the nancial year -283 -93 - -375
Accumulated amortization and impairment 31 Dec 2021 -2,743 -1,308 -
-4,051
Carrying amount 1 Jan 2021 435 53 348 835
Carrying amount 31 Dec 2021
502
469
392
1,364
EUR thousand Development costs Other intangible assets
Advance payments
and work in progress Total
Cost 1 Jan 2020 2,650 1,268 6 3,924
Increases 246 - 348 593
Disposals - - -6 -6
Transfers between items - - -
0
Cost 31 Dec 2020 2,896 1,268 348 4,511
Accumulated amortization and impairment 1 Jan 2020 -2 140 -1,193 - -3,332
Accumulated amortization on disposals - - - 0
Transfers between items - - - 0
Amortization for the nancial year -321 -23 - -344
Accumulated amortization and impairment 31 Dec 2020 -2,461 -1,215 - -3,676
Carrying amount 1 Jan 2020 510 75 6 592
Carrying amount 31 Dec 2020
435
53
348
835
Capitalized development costs relate to the development of new
features of the Company’s ERP system.
The company has no investment commitments in relation to
intangible assets.
2021
25
Verkkokauppa.com · Financial Statements 2021
7.14 Tangible assets
The tangible assets of Verkkokauppa.com Oyj include land, servers,
other ofce and warehouse equipment and devices, as well as basic
improvements to rental premises.
Tangible assets have been valued in the balance sheet at the original
cost less depreciation and impairment. Tangible assets are depreciated
on a straight-line basis over the useful life of the asset from the moment
the asset is put into use. Real estate is not subject to depreciation. The
estimated useful lives of tangible assets are as follows:
Machinery and equipment 3–10 years
Other tangible assets 5–10 years
The residual values and the useful lives of the assets shall be reviewed
at least at the end of each nancial year and adjusted, if necessary, to
reect changes in the expectations of economic benets.
Normal maintenance and repair costs are recognized in the income
statement as an expense at the time they are incurred. Signicant
improvements or additional investments are capitalized as part of the
cost of the asset and amortized over the remaining useful life of the
capital asset if it is probable that future economic benets associated
with the asset will ow to the company. Gains on sales from the write-
offs and disposals of tangible assets are presented in other operating
income in the income statement, and losses in other operating expenses
in the income statement. The Company has no interest expenses
related to the acquisition of assets that would have been capitalized as
part of the cost of acquisition.
The same principles apply to the assessment of impairment as for
intangible assets. The principles are described as part of the notes on
intangible assets.
EUR thousand
Land
Machinery and
equipment
Other tangible
assets
Advance payments
and work in progress
Tot al
Cost 1 Jan 2021
2 7,323 2,792 75
10,191
Increases
- 1,394 220 2,337 3,951
Disposals
- - - - 0
Transfers between items
- - - - 0
Cost 31 Dec 2021
2 8,717 3,012 2,412
14,142
Accumulated amortization 1 Jan 2021
- -5,640 -2,330 - -7,970
Accumulated amortization on disposals
- -
-
-
0
Transfers between items
- - -
-
0
Amortization for the nancial year
- -823 -136 - -959
Accumulated amortization 31 Dec 2021
- -6,463 -2,465 -
-8,928
Carrying amount 1 Jan 2021
2 1,683 462 75 2,222
Carrying amount 31 Dec 2021
2
2,254
546
2,412
5,214
EUR thousand Land
Machinery and
equipment
Other tangible
assets
Advance payments
and work in progress Tot al
Cost 1 Jan 2020
2 6,720 2,745 -
9,467
Increases
- 598 47 80 725
Disposals
- - - - 0
Transfers between items
- 5 - -5 0
Cost 31 Dec 2020
2 7,323 2,792 75
10,191
Accumulated amortization 1 Jan 2020
- -4,885 -2,200 - -7,086
Accumulated amortization on disposals
- - - - 0
Transfers between items
- - - - 0
Amortization for the nancial year
- -755 -129 - -884
Accumulated amortization 31 Dec 2020
- -5,640 -2,330 -
-7,970
Carrying amount 1 Jan 2020
2 1,834 545 0 2,381
Carrying amount 31 Dec 2020
2
1,683
462
75
2,222
The company has no investment commitments in relation to
tangible assets.
2021
26
Verkkokauppa.com · Financial Statements 2021
7.15 Leases
Leases wherein the Company is the lessee
Recognition of leases
At the time the contract was entered into, the Company will assess
whether the contract is a lease or whether the contract contains a lease
element. The Company recognizes a right-of-use asset and a lease
liability at the inception of the lease, except for leases with a short
lease term (less than 12 months) and leases with a low value. Rental
costs for short-term and low-value leases are recognized in the income
statement under other operating expenses on a straight-line basis over
the term of the lease.
Measurement and recognition of lease liability
The lease liability is measured at the present value of the lease
payments not paid at the commencement date of the contract. The
lease payments are discounted at the interest rate implicit in the lease
if that interest rate can be easily determined. If the interest rate cannot
be easily determined, the interest rate of the Company’s incremental
borrowing rate shall be used.
The lease agreement for the Jätkäsaari real estate, which covers
approximately 79% of the balance sheet of the lease liabilities, has
used the interest rate implicit in the lease contract. In other lease
agreements, the interest rate of the Company’s incremental borrowing
rate has been used as the discount rate. The changes in the Company’s
nancing position have been taken into consideration in determining the
incremental borrowing rate in determining the risk premium. Discount
rates vary between 1.3% and 7.0%.
The lease payments included in the value of the lease liability at the
commencement date consist of xed payments less available incentives
related to lease contracts, variable rent based on index, purchase
option exercise prices (when reasonably certain), amounts of residual
value guarantees and penalties for termination of lease contracts, if the
lease term has taken into account that the lessee exercises the option
to terminate the lease.
There are no termination options in the leases of Verkkokauppa. com
Oyj that have been taken into account in the calculation. Lease contracts
with purchase options are related to machinery and equipment and are
not signicant.
The lease liability is measured at amortized cost using the effective
interest method. Revaluation of the lease liability shall be carried out
if there is a change in the lease term, the use of the purchase option
becomes or ceases to be reasonably certain, the index used to calculate
variable lease payments changes or if there is a change in the expected
payments on the basis of residual value guarantees. The discount rate
to be used for the revaluation depends on the nature of the change.
The payments for all the leases of the Company real estate and
facilities are linked to the cost-of-living index. The Company will make
revaluations of its lease liability and the right-of-use asset when the
index changes.
In those contracts where the lease component and the non-lease
component must be separated, the distinction is made on the basis
of relative stand-alone selling prices. The Company has ofce space
leases in which the lease component is separated from the service
component. The stand-alone price is based on the estimated levels of
capital rents for the region in question.
The lease term used to calculate the lease liability is the period
during which the lease is non-cancelable, plus the period of the renewal
or termination option if it is reasonably certain that the lessee will
exercise the renewal option or not exercise the termination option. The
Company has extension options related to its real estate. These are not
taken into account in the lease term. The decision on extension options
is made on a commercial basis when the lessor is to be informed of
the use of the extension option. The management of the Company has
taken into consideration the business model of the Company and the
agility expected in it in relation to the physical market place in an ever-
changing business environment when assessing the probability of the
realization of extension options.
Measurement of right-of-use assets
The right-of-use asset is measured at cost at the commencement date
of the lease. The cost comprises the initial amount of the lease liability
at the commencement date, the lease payments less the incentives
received under the lease, the initial direct costs and any costs of
restoration.
The Company has not recognized the initial direct costs in its leases.
The amounts of restoration costs are estimated to be immaterial given
the nature of the business and no provision has been recognized for
them.
The Company measures the right-of-use assets in accordance
with the cost model. Under the cost model, a right-of-use asset is
measured at cost less accumulated depreciation and adjusted for
the remeasurement of the lease liability. The right-of-use assets are
depreciated on a straight-line basis over the useful life of the asset
from the moment the asset is put into service In case the lease term is
shorter than the useful life, depreciations are done over the lease term.
The estimated depreciation periods are as follows:
Machinery and equipment 4–7 years
Real estate and premises 2–15 years
Subleases
The Company has short-term sublease agreements, which are
recognized as income on a straight-line basis over the lease term.
Lease income is presented in other operating income in the income
statement. These sublease agreements are not material.
2021
27
Verkkokauppa.com · Financial Statements 2021
Description of the Company’s lease portfolio
The Company’s lease portfolio consists of real estate and facilities
leases, as well as leased cars. The real estate lease means the
Jätkäsaari real estate that comprises the stores as well as the logistics,
ofce and other spaces. In other aspects, the retail stores are real
estate leases.
The lease agreements include several short options for future
extension. The leases are not linked to revenue but to the cost-of-living
index and are, therefore, taken into account in the calculation of the
lease liability. The leases do not include residual value guarantees or
purchase options.
The Company’s current car leasing contracts represent a marginal
proportion of the lease portfolio.
Right-of-use assets
EUR thousand Premises and facilities Machinery and equipment Tot al
Cost 1 Jan 2021 33,181 1,671 34,852
Increases 1,202 - 1,202
Disposals - -9 -9
Increase/decrease due to remeasurement 887 - 887
Cost 31 Dec 2021 35,269 1,662 36,931
Accumulated amortization 1 Jan 2021 -15,961 -1,544 -17,505
Accumulated amortization on disposals - - -
Amortization for the nancial year -3,577 -72 -3,650
Accumulated amortization 31 Dec 2021 -19,538 -1,616 -21,154
Carrying amount 1 Jan 2021 17,220 127 17,347
Carrying amount 31 Dec 2021 15,731 45 15,776
EUR thousand Premises and facilities Machinery and equipment Tot al
Cost 1 Jan 2020 30,810 1,759 32,569
Increases 2,173 48 2,221
Disposals - -139 -139
Increase/decrease due to remeasurement 198 3 201
Cost 31 Dec 2020 33,181 1,671 34,852
Accumulated amortization 1 Jan 2020 -12,367 -1,432 -13,799
Accumulated amortization on disposals - 77 77
Amortization for the nancial year -3,594 -189 -3,783
Accumulated amortization 31 Dec 2020 -15,961 -1,544 -17,505
Carrying amount 1 Jan 2020 18,443 327 18,770
Carrying amount 31 Dec 2020 17,220 127 17,347
The remeasurements carried out in 2021 and 2020 relate to index
increases in lease contracts and to renegotiated leases.
2021
28
Verkkokauppa.com · Financial Statements 2021
Lease liabilities
Maturity analysis, contractual undiscounted cash ows
EUR thousand
31 Dec 2021
31 Dec 2020
Less than one year 5,055
4,958
From one to ve years 18,048
20,686
Over ve years -
261
Undiscounted lease liabilities, total 23,103
25,906
Lease liabilities in the balance sheet
EUR thousand
31 Dec 2021
31 Dec 2020
Current lease liabilities 4,034
3,883
Non-current lease liabilities 16,105
18,045
Lease liabilities, total 20,139
21,928
Items recognized in the income statement
EUR thousand 2021 2020
Depreciations on right-of-use assets 3,650
3,783
Interest on lease liabilities 1,198
1,323
Lease income from subleasing right-of-use
assets
530
413
Expenses related to leases of low-value assets 57
55
Items recognized in the cash ow statement
EUR thousand
2021
2020
Total cash outow for leases -5,065
-5,144
2021
29
Verkkokauppa.com · Financial Statements 2021
7.16 Deferred tax assets and liabilities
The deferred tax is calculated from the temporary differences between
the carrying amount and the tax base, using either the tax rate in force
at the balance sheet date or a known tax rate that will come into force
at a later date. A deferred tax asset is recognized only to the extent that
it is probable that future taxable prot will be available against which the
temporary difference can be utilized.
Change in deferred tax assets
EUR thousand 1 Jan 2021 Recognized through prot or loss Recognized in equity 31 Dec 2021
Leases 898 -46
-
851
Inventories 90 12
-
102
Share-based payments 110 -9
-
101
Provisions 153 26
-
179
Unused tax depreciation 99 -43
-
56
Deferred tax assets, total 1,350 -60 0 1,289
EUR thousand 1 Jan 2020 Recognized through prot or loss Recognized in equity 31 Dec 2020
Leases 914 -16 -
898
Inventories 88 2 -
90
Share-based payments 39 71 -
110
Provisions 154 -2 -
153
Unused tax depreciation - 99 -
99
Deferred tax assets, total 1,194 155 0
1,349
Change in deferred tax liabilities
EUR thousand 1 Jan 2021 Recognized through prot or loss Recognized in equity 31 Dec 2021
Depreciation difference 0
-
- 0
Deferred tax liabilities, total 0 - - 0
EUR thousand 1 Jan 2020 Recognized through prot or loss Recognized in equity 31 Dec 2020
Depreciation difference 7 -7 -
0
Deferred tax liabilities, total 7 -7 -
0
2021
30
Verkkokauppa.com · Financial Statements 2021
7.17 Trade receivables and other receivables
Trade receivables are receivables arising from goods or services sold
to customers in the ordinary course of business. Other receivables are
contract assets, other accrued income and nancial assets with xed
or determinable payments that are not quoted in an active market.
Trade receivables and other receivables are classified as current
assets if customer payment in respect of them is expected within
one year. Otherwise, they are presented as non-current assets. Non-
current trade receivables are receivables related to Apuraha funding
and in current trade receivables they represent approximately 62%
(2020; approximately 65%) of the balance sheet value of current trade
receivables.
The principles relating to impairment are explained in the note on
Financial risk management.7.22.3
Changes in the contractual assets are explained in the note on Revenue
from contracts with customers 7.2.
EUR thousand
31 Dec 2021
31 Dec 2020
Non-current
Trade receivables
3,817
3,201
Other non-current receivables
425
425
Non-current receivables, total
4,241
3,626
Current
Trade receivables
23,124
18,650
Contract assets
1,807
1,685
Other accrued income
6,820
7,761
Other receivables
3,699
1,462
Current receivables, total
35,450
29,558
Non-current and current receivables, total
39,692
33,184
Aging analysis of trade receivables
31 Dec 2021 31 Dec 2020
EUR thousand
Trade receivables
Loss allowance
Trade receivables Loss allowance
Not due 22,771 229
17,964
656
Past due 1–60 days 4,629 280
4 878
357
Past due 61–120 days 135 87
84
61
Past due over 121 days 233 233
49
49
Total 27,769 829
22,975
1,123
The bad debt allowance for trade receivables as at 31 December
reconcile to opening bad debt allowance as follows
EUR thousand
2021
2020
Opening bad debt allowance at 1 January 1,123
559
Increase in bad debt allowance recognized in
prot or loss during year
354
2,184
Receivables written of during the year as
uncollectible
-1,081
-1,189
Unused amount reversed 433
-432
Closing bad debt allowance at 31 December 829
1,123
During the nancial period, the Company recognized net credit losses
on trade receivables totaling EUR 806 (1,670) thousand. Verkkokauppa.
com sells all its overdue receivables on a “continuous trade” basis,
where all receivables overdue for more than 60 days and nanced by
the Company itself are sold to third parties. This reduces the Company’s
accounts receivable risk.
2021
31
Verkkokauppa.com · Financial Statements 2021
7.18 Inventory
The Company’s inventory consists of nished goods for sale, in-store
demonstration equipment and serviced products.
Inventories are valued at the lower of cost or net realizable value. Net
realizable value is the estimated selling price in the ordinary course of
business less the estimated costs of completion and selling expenses.
The cost of inventory is determined using the rst-in, rst-out (FIFO)
method. The cost includes direct costs incurred in connection with the
acquisition, net of rebates.
The revenue rate of products and the possible reduction of the net
realizable value below cost are regularly assessed and, if necessary,
an impairment of inventories is recorded. In addition, the Company
separately recognizes write-down for older items according to the
inventory dates.
EUR thousand
31 Dec 2021
31 Dec 2020
Goods 87,803 75,384
Total 87,8 03 75,384
The company has recorded a total of EUR 1.6 (1.8) million in inventories.
The entries have adjusted the book value of the inventory to reect its
actual net realizable value.
7.19 Cash and cash equivalents
Cash and cash equivalents consist of cash assets and balances on
bank accounts. Cash and cash equivalents belong to the category
of nancial assets measured at amortized cost. No impairment is
recognized on cash and cash equivalents, as the cash is held with well-
rated Nordic banks and the related impairment is considered immaterial.
EUR thousand
31 Dec 2021
31 Dec 2020
Cash in hand and at banks 20,917 43,099
Total 20,917 43,099
The Company’s cash assets were fully available at the balance sheet
date.
2021
32
Verkkokauppa.com · Financial Statements 2021
7.20 Equity
Treasury shares
The acquisition of treasury shares, together with the related costs, is
presented as a deduction of equity.
Dividend distribution
The dividend proposed by the Board of Directors to the Annual General
Meeting has not been deducted from equity, but instead is recognized
on the basis of the decision of the Annual General Meeting.
Share capital and treasury shares
Outstanding shares,
pcs (1,000)
Number of treasury
shares, pcs (1,000)
Number of shares,
pcs (1,000)
Share capital carrying
amount, EUR thousand
1 Jan 2021 44,712 353 45,065 100
Transfer of treasury shares, Board of Directors’ remuneration 15 -15 - -
Transfer of treasury shares, share-based incentive scheme 15 -15 - -
31 Dec 2021 44,742 323 45,065 100
Outstanding shares,
pcs (1 000)
Number of treasury
shares, pcs (1 000)
Number of shares,
pcs (1 000)
Share capital carrying
amount, EUR thousand
1 Jan 2020
44,984
81
45,065
100
Acquisition of treasury shares -297 297 - -
Transfer of treasury shares, Board of Directors’ remuneration 25 -25 - -
31 Dec 2020
44,712
353
45,065
100
Verkkokauppa.com Oyj has one share class. The share has no nominal
value. Each share entitles its holder to one vote at the Annual General
Meeting. All issued shares have been fully paid out. At the end of the
nancial year 2021, the share capital of Verkkokauppa.com Oyj was
EUR 100,000 and the number of shares was 45,065,130 including
323,397 (352,898) treasury shares held by the Company. During
the nancial year, the Company did not acquire any treasury shares
(compared to the acquisition of 296,920 treasury shares in 2020).
Fair value reserve
The fair value reserve is a fund that is based on equity investments
measured at fair value.
Invested unrestricted equity fund
The invested unrestricted equity fund includes the subscription price of
the shares to the extent that they are not entered into share capital on
the basis of a separate decision.
Capital management
The aim of the Company’s capital management is to support the
business through an optimal capital structure by ensuring normal
operating conditions. The Company assesses the development and
adequacy of its capital structure and equity ratio. Capital management
aims to ensure cost-effectively the Company’s operating conditions at a
competitive level in all business cycles, adequate risk-bearing capacity
and good debt management and dividend payment capacity. The
objective of capital management is to increase shareholder value and
achieve the best possible prot.
The Company has not applied for a credit rating from any external
credit rating institution. Capital management is based on continuous
monitoring of the objectives set by the Board and of the external
financing and defined thresholds, as well as on the approval and
implementation of balancing measures in case of any deviations.
On the basis of the information it is provided, the Board of Directors
evaluates the effects of any deviation and takes the necessary capital
2021
33
Verkkokauppa.com · Financial Statements 2021
management decisions. The Company’s net gearing target is dened
and monitored as part of normal reporting. The ratio of net liabilities
to equity is -2.2% (-52%) as one of the key indicators for the overall
management of the balance sheet. The Company evaluates nancing
needs on a case-by-case basis considering the cyclical nature of
business as well as potential business acquisitions.
At the end of the nancial year 2021, the Company had revolving
credit facilities totaling EUR 20 million that had not been utilized. The
terms of the covenants are described in note 7.22.3 Financial risk
management.
EUR thousand
2021
2020
Net debt 778
21 171
Total shareholders’ equity 35,683
40,549
Net debt to equity ratio 2.2%
52.2%
The ratio of net debt to equity remained negative (-2.2%). Both net debt
and gross assets decreased during the nancial year 2021.
Dividends
Dividends paid
2021
For the previous year
Date of payment
Dividend per share, EUR
7 Apr 2021 0.276
4 May 2021 0.057
27 July 2021 0.058
2 Nov 2021 0.059
Total dividends, EUR thousand
20,129
2020
For the previous year Date of payment Dividend per share, EUR
9 Apr 2020
0.052
6 May 2020
0.053
4 Aug 2020
0.054
3 Nov 2020
0.055
Total dividends, EUR thousand
9,597
Dividend proposed
The Board of Directors will propose to the Annual General Meeting
that a dividend of EUR 0.246 per share be paid for the nancial year
2021, with a dividend of EUR 0.060 per share paid in connection with
the Annual General Meeting. In addition, the Board of Directors is
authorized to decide on a total quarterly dividend of EUR 0.186 per
share.
2021
34
Verkkokauppa.com · Financial Statements 2021
7.21 Cashowinformation
Breakdown of net debt and net debt changes in the nancial statements.
The Company has no interest-bearing debt.
Net debt reconciliation
EUR thousand
2021
2020
Cash 20,917
43,099
Gross debt -20,139
-21,928
Net debt 778
21,171
Liabilities from nancing activities Other assets
EUR thousand Leases Total
Cash and cash
equivalents Tot al
Net debt 1 Jan 2020 -23,434 -23,434 42,495 19,061
Cash ows 3,821 3,821 604 4,425
Acquisitions 2,221 2,221 2,221
Changes in index -4,536 -4,536 -4,536
Net debt 31 Dec 2020 -21,928 -21,928 43,099 21,171
Cash ows 3,868 3,868 -22,182 -18,315
Acquisitions 1,202 1,202 1,202
Changes in index -3,280 -3,280 -3,280
Net debt 31 Dec 2021 -20,139 -20,139 20,917 778
The Company’s net debt as of 31 Dec 2021 was negative EUR 778
thousand.
2021
35
Verkkokauppa.com · Financial Statements 2021
7.22 Funding
Financial assets
The main nancial assets of the Company are trade receivables and
cash and cash equivalents.
Classication and measurement
On initial recognition, the Company classies nancial assets into
the following measurement categories: nancial assets measured at
amortized cost and nancial assets measured at fair value through
other comprehensive income. Classication depends on the business
model used to manage nancial assets and contractual terms for cash
ows. Financial assets are derecognized when the right to receive
contractual cash ows has expired and the signicant risks and rewards
of ownership of the nancial asset have been transferred outside of the
Company.
Verkkokauppa.com Oyj has made an irrevocable decision to
measure equity investments at fair value through other comprehensive
income. Changes in fair value are recognized in other comprehensive
income. Dividends are recognized in the prot and loss account under
nancial income. Changes in the fair value of equity investments are
presented in other comprehensive income and are not subsequently
reclassied to prot or loss when the investment is derecognized.
Verkkokauppa.com Oyj records changes in fair value in the fair value
reserve of equity, from which they are transferred to retained earnings
upon sale.
Financial assets measured at amortized cost are items that are
held to collect contractual cash ows and whose cash ows are solely
payments of principal and interest. This category includes trade and
other receivables of Verkkokauppa.com Oyj, which consist of non-
current lease insurance receivables. Trade receivables are initially
recognized in the transaction price if they do not contain a signicant
financing component. Other receivables in the group are initially
recognized at fair value plus transaction costs and measured at
amortized cost using the effective interest method. A gain or loss on
a nancial asset measured at amortized cost is recognized in prot or
loss when the asset is derecognized or impaired. Impairment losses
on trade and other receivables are recognized in the income statement
under other operating expenses.
Impairment of nancial assets
Impairment is described in more detail in the note on Financial risk
management 7.22.3.
Financial liabilities
The nancial liabilities of the Company are trade payables and lease
liabilities. The recognition and measurement principles of these are
described in the respective notes related to them, Other current liabilities
and accrued liabilities 7.23 and Leases 7.15.
The company has no external interest-bearing liabilities.
Financial guarantee contracts
A financial guarantee contract is an agreement that obliges the
guarantor to make certain payments to compensate the holder for a
loss incurred when a specied debtor fails to make payment when it is
due under the original or amended terms of a debt instrument.
The Company has had two guarantee agreements with nancial
institutions that acted as financiers for the Apuraha consumer
nancing service. Under the guarantee agreement, the nancier and
Verkkokauppa.com Oyj together share a jointly agreed portion of the
income and credit losses incurred. The Company no longer has a
receivable in the balance sheet because the receivable ceases to exist
once the money has been received from the nancing company. The
guarantee risk associated with the guarantee contract is described in
more detail in the note on 7.22.3 Financial risk management.
Impairment of nancial guarantee contracts
The Company recognizes an expected credit loss from the nancial
guarantee contract. The impairments are described in more detail in the
note on 7.22.3 Financial risk management.
2021
36
Verkkokauppa.com · Financial Statements 2021
7.22.1 Financial assets and liabilities by measurement category
31 Dec 2021
Recognized at fair
value through other
comprehensive income
At amortized
cost
Lease
liabilities
Carrying
amount
EUR thousand
Non-current nancial assets
Equity investments (level 3) 266 - - 266
Trade and other receivables* - 4,241 - 4,241
Non-current nancial assets, total
266
4,241
-
4,508
Current nancial assets
Trade receivables - 23,124 - 23,124
Cash and cash equivalents - 20,917 - 20,917
Current nancial assets, total
-
44,041
-
44,041
Financial assets by measurement
category, total
266 48,282 - 48,549
Non-current nancial liabilities
Lease liabilities (level 2) - - 16,105 16,105
Non-current nancial liabilities, total - - 16,105 16,105
Current nancial liabilities
Lease liabilities (level 2) - - 4,034 4,034
Trade payables - 77,609 - 77,609
Current nancial liabilities, total
-
77,609
4,034
81,644
Financial liabilities by measurement
category, total
- 77,609 20,139 97,749
31 Dec 2020
Recognized at fair value
through other compre-
hensive income
At amortized
cost
Lease
liabilities
Carrying
amountEUR thousand
Non-current nancial assets
Equity investments (level 3)
266 - - 266
Trade and other receivables*
- 3,626 - 3,626
Non-current nancial assets, total
266
3,626
-
3,892
Current nancial assets
Trade receivables
- 18,650 - 18,650
Cash and cash equivalents
- 43,099 - 43,099
Current nancial assets, total
-
61,750
-
61,750
Financial assets by measurement
category, total
266 65,375 0 65,642
Non-current nancial liabilities
Lease liabilities (level 2)
- - 18,045 18,045
Non-current nancial liabilities, total
- - 18,045 18,045
Current nancial liabilities
Lease liabilities (level 2) - - 3,883 3,883
Trade payables - 70,171 - 70,171
Current nancial liabilities, total
-
70,171
3,883
74,054
Financial liabilities by measurement
category, total
0 70,171 21,928 92,099
Level 2 includes interest-bearing liabilities and derivatives and level 3 investments in unquoted shares and funds.
* Other receivables include non-current receivables presented in the balance sheet, which include rental guarantee
receivables classied as nancial assets.
There have been no transfers between valuation groups during the
nancial year or in the comparison year. The balance sheet values of
trade receivables and other receivables classied as nancial assets
are substantially equivalent to their fair values.
2021
37
Verkkokauppa.com · Financial Statements 2021
7.22.2 Information on equity investments
The Company has equity investments classied as fair value through
other comprehensive income. The Company has irrevocably classied
these investments in this category because they are considered
strategic from a business perspective.
Determining fair values
Level 1: Fair values are based on quoted (unadjusted) prices of
identical assets or liabilities traded on active markets.
Level 2: Financial instruments are not traded on active and liquid
markets, but their fair values can be calculated on the basis
of market data.
Level 3: Measuring of nancial instruments is not based on veriable
market data, nor are other factors affecting the fair value of
the instruments available or veriable.
31 Dec 2021 31 Dec 2020
EUR thousand
Level 2
Level 3
Level 2 Level 3
Financial assets
Equity investments - 266
-
266
Total
0
266
0
266
The equity investments in level 2 include shares for which the Company
receives an OTC market price.
The equity investments in level 3 include unquoted shares. The fair
value is estimated for the shares and, if necessary, the change in fair
value is recognized. No change in fair value has been recognized on
the basis of an estimate. There have been no changes in fair value
levels during the nancial year or the comparison year.
Level 3 reconciliation statement
EUR thousand 2021 2020
Equity investments
Carrying amount 1 Jan 266 266
Increases - -
Disposals - -
Carrying amount 31 Dec 266
266
7.22.3 Financial risk management
General information
In its business operations, Verkkokauppa.com Oyj is exposed to
nancial risks, mainly consisting of securing funding, liquidity, credit,
counterparty and foreign exchange rate risks. The objective of managing
these risks is to reduce the uncertainty that changes in financial
markets may cause in earnings, cash ows and value. Financial risks
are managed as part of the Company’s risk management process.
Verkkokauppa.com Oyj does not have a separate treasury function;
instead, the CFO is responsible regarding the Company’s funding,
management of liquidity, relations with nanciers and funding risks. The
Audit Committee monitors the development of the Company’s funding
situation. The Company does not have a separately approved nancial
policy.
Funding and liquidity risk
The Company seeks to secure access to nance and sufcient liquidity.
A business that generates positive cash ow and a solid management
of net working capital enable an optimal capital structure, availability
of funding and no net debt. The Company continuously assesses and
monitors the amount of nancing required for the business in order
to provide the Company with sufcient liquid assets to nance its
operations and to pay outstanding payables. In accordance with normal
seasonal uctuations, cash ow and payables peak at the turn of the
year and are at their lowest at the end of the second quarter.
The company has no interest-bearing liability. According to the
maturity analysis, the most signicant part of the liabilities is due
upfront within one year. Trade payables are always due within less
than one year because they have short payment terms. The maturities
of the lease liabilities depend on the contract and are due in equal
installments over the term of the contract. However, a signicant part of
the lease liabilities will be due within less than ve years. The maturity
and maximum liability of the nancial guarantee contracts depend
on the creditworthiness of the customer and the percentage of the
allocation applicable to the nancial guarantee contract. The maturity
is distributed among several counterparties. The maximum period of
credit granted to a single customer is three years.
Contractual cash ows based of nancial liabilities and nancial
guarantee contracts
31 Dec 2021
EUR thousand <1 year 1–5 years >5 years Total
Lease liabilities 5,055 18,048 - 23,103
Trade payables 77,609 - - 77,609
Total 82,664 18,048 0 100,712
31 Dec 2020
EUR thousand <1 year 1–5 years >5 years Tot al
Lease liabilities
4,958
20,686
261
25,906
Trade payables
70,171
-
-
70,171
Total
75,129
20,686
261
96,077
The balance sheet contains liquid assets of 12%. The Company
diversies the risk of nancing (counterparty risk) by entering into
various binding revolving credit facilities with large Nordic banks with
solid ratings. By varying the amounts as well as the term of the revolving
credit facilities, the Company manages the counterparty and maturity
risk. It is also Company policy to maximize the use of cash discounts in
the current interest environment.
2021
38
Verkkokauppa.com · Financial Statements 2021
At the end of the nancial year 2021, the Company’s liquidity reserve
consisted of liquid funds. At the end of the nancial year, liquid funds
amounted to EUR 20,917 (43,099) thousand. The funds were distributed
among various bank accounts and were immediately available for
withdrawal.
Verkkokauppa.com announced on 1 July 2019 that it had agreed on
revolving credit facilities (RCF) totaling EUR 20 million. Of these, EUR
15 million are for three years and EUR 5 million for ve years. Ordinary
covenants are applied to the conditions of committed revolving credit
facilities (among others, equity ratio and interest-bearing net liabilities in
relation to the EBITDA). The equity ratio is always above 25% and the
ratio of net liabilities to operating prot does not exceed 3.3. According
to the agreement, nancial covenants are calculated in accordance
with the accounting principles applied by the Company in preparing
its nancial statements for 2017 (Finnish Accounting Standards, FAS).
The company has changed its accounting principles by adopting IFRS
accounting standards. The Company undertakes to provide the lender
with a statement of the differences between the accounting principles
used in the calculation of the financial covenants (FAS) and the
Company’s ofcial or half-yearly nancial statements (IFRS).
At the balance sheet date, the company has unused committed
revolving credit totaling EUR 20 million. The Company has been able
to meet the conditions of the covenants.
Credit and counterparty risk
Credit risks arise when a counterparty is unable to meet its contractual
obligations, causing the Company to suffer a nancial loss. Trade
receivables and other receivables expose the Company to credit risk.
The most signicant credit risk relates to the company-funded Apuraha
consumer nancing service.
The Company’s main credit risk consists of trade receivables from
company-funded Apuraha consumer financing and ordinary trade
receivables from companies. The open position is larger and longer
for company-financed Apuraha receivables than for conventional
corporate trade receivables. As a result, the credit risk of a company-
nanced Apuraha is greater than that of a conventional corporate
trade receivable. The rotation of trade receivables is also faster for
corporate trade receivables. The Company has dened a credit policy
for customer receivables with the aim of increasing protable sales
in advance, identifying and managing credit risks. The credit policy
dictates the minimum principles of Verkkokauppa.com Oyj’s credit
sales and debt recovery. The credit risk is determined by the Credit
Committee of the Company.
The Company has credit policies in place for its own customer
financing, which describe the principles of risk-taking and risk
management. Furthermore, the Company has credit rules that dene,
among other things, the principles of making credit-granting decisions,
the amount of credit limits and the measurement principles of trade
receivables. The Board of Directors regularly monitors the development
of customer financing. The Credit Committee is responsible for
reporting on the nancial risks to the Board. The risk of customer-
nancing receivables is not concentrated but consists of a large amount
of receivables with a maximum capital of EUR 3,000. To minimize
the credit risk, the customer’s credit report and any credit history are
checked before a credit-granting decision is made.
Verkkokauppa.com sells all its overdue receivables on a “continuous
trade” basis, where all receivables overdue for more than 60 days are
sold to third parties. This reduces the risk of company receivables. The
credit loss allowance related to trade receivables decreased to EUR 0.8
(1.1) million.
The counterparty risk involved with cash and cash equivalents is
managed through depositing the cash and cash equivalents in accounts
with large Nordic banks with solid ratings. The Company’s cash and
cash equivalents are fully available. The counterparty risk arising from
purchasing activities is managed through using, when necessary,
letters of credit as payment method, thus ensuring contractual delivery.
The Company’s letters of credit are documentary credits.
Impairment
The most signicant nancial assets of the Company subject to the
expected credit loss model required by IFRS 9 are cash and cash
equivalents, traditional trade receivables from companies and the
receivables from the company-nanced Apuraha consumer nancing
service. In addition, it is necessary to apply the impairment model
to the nancial guarantee contracts. The Company’s cash and cash
equivalents are deposited in accounts with solid Nordic banks and
are consequently not recognized for impairment. In addition to the
aforementioned financial assets, the contract assets are subject
to impairment. The management of the Company monitors the
development of counterparty risk.
The Company recognizes a lifetime expected credit loss on trade
receivables using a simplied method (matrix model). The model based
on expected credit losses is anticipative, and the expected portion of
credit losses is based on the amounts of historical credit losses. The
historical credit loss percentage is adjusted when necessary, taking
into account the macroeconomic impact on customers’ ability to pay.
The expected credit losses over the entire life of the receivable are
calculated by multiplying the gross value of the trade receivables
with the expected loss portion in all maturity classes. In addition, at
each reporting date, the Company assesses whether there is further
evidence of impairment of an asset, for instance due to insolvency.
In these cases, the Company recognizes the impairment immediately.
Impairment losses are recognized in other operating expenses in the
income statement. Recoverable credit losses are recognized in other
operating expenses in the income statement.
The Company has dened different matrix models for standard
trade receivables from corporates and for company-nanced Apuraha
consumer financing service receivables due to their different risk
characteristics. The clients of the company-nanced Apuraha consumer
nancing service are individuals.
To determine the credit default rates for individual customers in
the company-financed Apuraha consumer financing service, the
customers’ historical payment behavior, the aging of receivables and
2021
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Verkkokauppa.com · Financial Statements 2021
their development were examined. The percentages of credit losses are
regularly updated based on historical credit losses and the 12-month
rolling model. The maximum exposure to credit risk corresponds to the
total amount of trade receivables. The Company has not received any
guarantees regarding trade receivables. Expected credit losses are
recognized as reducing trade receivables.
During the nancial year 2021, the company dissolved its impairment
reservations made in 2020 on trade receivables (EUR 311 thousand)
and consumer account receivables (EUR 150 thousand) based on
changes in the market caused by the COVID-19 pandemic.
When determining the credit loss rates for corporate customers, the
customer’s historical payment behavior, the aging of receivables and
their development were examined.
Changes in expected credit losses are recognized in other operating
expenses in the income statement. The total net credit losses
recognized in 2021 amounted to EUR 806 (1,670) thousand.
Foreign exchange rate risk
Foreign exchange rate risk is the uncertainty of cash ows, prot and
balance sheet resulting from changes in foreign exchange rates.
The currency risk of Verkkokauppa.com Oyj arises mainly from the
purchase of goods, as the company has purchasing activities in several
different currencies. However, the management of the Company does
not consider the foreign exchange rate risk to be signicant, as most
purchases are made in euros. In respect of purchases made in foreign
currencies, trade payables in the balance sheet are exposed to foreign
exchange rate risk. In addition, the Company has advance payments in
foreign currency in the balance sheet, with short open positions.
Foreign exchange risk is managed from a commercial point of view
through rapid inventory turnover and by seeking to transfer possible
exchange rate changes into sales prices or by changing supplier. The
Company does not hedge against foreign exchange rate risk. Revenue
is not exposed to foreign exchange rate risk, as all revenue is generated
in euros.
The company has a currency account in US dollars (USD). The
foreign exchange rate risk on the foreign currency account relates to
exchange differences arising from the conversion of cash and cash
equivalents at the closing rate. Exchange rate differences in cash
and cash equivalents are presented in Note 7.9 Financial income and
expenses.
At the end of the financial year 2021, the amount of currency-
denominated open trade payables amounted to EUR 209 (91) thousand.
Exchange rate differences in accounts payable were irrelevant in 2021
and the comparison year.
7.23 Other current liabilities and accrued liabilitiest
EUR thousand
31 Dec 2021
31 Dec 2020
Contract liabilities 2,128 2,248
Accrued personnel expenses 7,302 8,404
Other accrued liabilities 12,476 9,636
Withholding tax liability 994 1,087
VAT liability 7,596 8,960
Other current liabilities and accrued
liabilities, total
30,496 30,335
Payables related to contracts with customers are presented in the note
on 7.2 Revenue from contracts with customers.
7.24 Provisions
A provision is recognized when the Company has a present legal or
constructive obligation as a result of a past event, it is probable that
an outow of resources will be required to settle the obligation and
a reliable estimate can be made of the amount of the obligation. The
amount recognized as a provision represents the best estimate of
the management with regard to the expenditure required to settle the
obligation at the end of the reporting period. At each balance sheet
date, the management assesses the amount of the provisions and
updates them to reect the best estimate at the balance sheet date.
Changes in provisions are recognized in the income statement in the
same line item where the original provision was recognized. Provisions
have not been discounted due to the minor effect of such discounting.
The provisions recognized by the Company relate to the Company’s
own product guarantees and the third-year warranty.
A warranty reserve is recognized at the time of sale of a product
based on management’s estimate of the product degradation rate,
which is based on historical experience. A provision for expected credit
losses is recognized based on historical actuals. The prot-sharing
model adopts the expected credit loss model according to IFRS 9, the
principles of which are described in more detail in the note on 7.22.3
Financial risk management.
EUR thousand
2021
2020
Provisions 1 Jan 766 660
Increases in provisions 134 107
Decreases in provisions -5 -
Reversal of unused provisions - -
Provisions 31 Dec
896
766
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40
Verkkokauppa.com · Financial Statements 2021
7.25 Transactionswithrelatedparties
Verkkokauppa.com Oyj’s related parties are considered to include the
members of the Board of Directors and the CEO of Verkkokauppa.com
Oyj and other members of the Management Team of Verkkokauppa. com
Oyj, close family members of the aforementioned persons and
controlling entities of the aforementioned persons. Transactions with
related parties have been carried out under normal commercial terms.
Transactions with related parties
EUR thousand 2021 2020
Sales of goods and services
To key management personnel and their
related parties
86
77
Purchases of goods and services
From key management personnel and their
related parties
-
1
EUR thousand 31 Dec 2021 31 Dec 2020
Closing balances from purchases/sales of
goods/services
Trade receivables from key management
personnel and their related parties
-
9
Trade payables to key management
personnel and their related parties
-
-
7.26 Guarantees and commitments
EUR thousand
31 Dec 2021
31 Dec 2020
Collateral given for own commitments
Guarantees 3,463
3,082
Other commitments and contingent liabilities 9
8
7.27 Subsequent events
On 9 February 2022, Verkkokauppa.com announced the acquisition of
e-ville.com online store. The acquisition supports Verkkokauppa.com’s
strategy to strengthen and expand its assortment in own brands. The
purchase price amounts to approximately EUR 5.3 million, of which
EUR 3.3 million will be paid in cash and EUR 2.0 million in new shares
to be issued in a directed share issue to the seller at closing. The
parties have also agreed to additional purchase price installments of up
to approximately EUR 6.7 million payable solely if the combined sales
of own brand products exceeds set target levels during 2022, 2023 and/
or 2024. The total aggregate purchase price can amount to EUR 12.0
million at the maximum.
The transaction will close in the beginning of April 2022 and the
acquired business operations will be consolidated into Verkkokauppa.
com’s gures from the beginning of the second quarter of 2022. E-ville’s
operations are estimated to have a positive impact of EUR 5–8 million
on Verkkokauppa.com’s revenue in 2022.
2021
41
Verkkokauppa.com · Financial Statements 2021
SignaturesforthenancialstatementsandtheBoardofDirectors’report
Helsinki, 1 March 2022
Arja Talma
Chair of the Board
Christoffer Häggblom
Vice Chair of the Board
Kai Seikku
Board member
Samuli Seppälä
Board member
Frida Ridderstolpe
Board member
Johan Ryding
Board member
Mikko Kärkkäinen
Board member
Panu Porkka
Managing Director
2021
42
Verkkokauppa.com · Financial Statements 2021
Report on the Audit of the Financial Statements
Opinion
In our opinion the nancial statements give a true and fair view of the
company’s nancial position and nancial performance and cash ows
in accordance with International Financial Reporting Standards (IFRS)
as adopted by the EU and comply with statutory requirements.
Our opinion is consistent with the additional report to the Audit
Committee.
What we have audited
We have audited the nancial statements of Verkkokauppa.com Oyj
(business identity code 1456344-5) for the year ended 31 December
2021. The nancial statements comprise:
• balance sheet, income statement, statement of comprehensive
income, statement of changes in equity, statement of cash ows
and notes, including a summary of signicant accounting policies
Basis for Opinion
We conducted our audit in accordance with good auditing practice in
Finland. Our responsibilities under good auditing practice are further
described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report.
We believe that the audit evidence we have obtained is sufcient
and appropriate to provide a basis for our opinion.
Independence
We are independent of the company in accordance with the ethical
requirements that are applicable in Finland and are relevant to our audit,
and we have fullled our other ethical responsibilities in accordance
with these requirements.
To the best of our knowledge and belief, the non-audit services that
we have provided to the company are in accordance with the applicable
law and regulations in Finland and we have not provided non-audit
services that are prohibited under Article 5(1) of Regulation (EU) No
537/2014. The non-audit services that we have provided are disclosed
in note 7.8 to the Financial Statements.
Our Audit Approach
Overview
• Overall materiality: € 4.6 million
• Audit scope: The audit scope includes
Verkkokauppa.com Oyj
• Timing of revenue recognition
• Valuation of inventories
As part of designing our audit, we determined materiality and assessed
the risks of material misstatement in the financial statements. In
particular, we considered where management made subjective
judgements; for example, in respect of signicant accounting estimates
that involved making assumptions and considering future events that
are inherently uncertain.
Materiality
The scope of our audit was inuenced by our application of materiality.
An audit is designed to obtain reasonable assurance whether the
nancial statements are free from material misstatement. Misstatements
may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to
inuence the economic decisions of users taken on the basis of the
nancial statements.
Based on our professional judgement, we determined certain
quantitative thresholds for materiality, including the overall materiality for
the nancial statements as set out in the table below. These, together
with qualitative considerations, helped us to determine the scope of our
audit and the nature, timing and extent of our audit procedures and to
evaluate the effect of misstatements on the nancial statements as a
whole.
Overall materiality
EUR 4.6 million
How we determined it
0.8% of the company´s net sales
Rationale for
the materiality
benchmark applied
We chose revenue as the benchmark because,
in our view, it is the benchmark against which the
performance of the company is most commonly
measured by users. We chose 0.8% which is within
the range of acceptable quantitative materiality
thresholds in auditing standards.
How we tailored our audit scope
We tailored the scope of our audit, taking into account the industry
in which the company operates, and the accounting processes and
controls.
Verkkokauppa.com Oyj does not have any subsidiaries and, thus,
it does not prepare consolidated accounts. Our audit scope includes
Verkkokauppa.com Oyj.
Auditor’s Report (Translation of the Finnish Original)
To the Annual General Meeting of Verkkokauppa.com Oyj
Materiality
Audit Scope
Key Audit
matters
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Verkkokauppa.com · Auditor’s Report
Key Audit Matters
Key audit matters are those matters that, in our professional judgment,
were of most signicance in our audit of the nancial statements of the
current period. These matters were addressed in the context of our
audit of the nancial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
As in all of our audits, we also addressed the risk of management
override of internal controls, including among other matters
consideration of whether there was evidence of bias that represented a
risk of material misstatement due to fraud.
Key audit matter in the audit How our audit addressed the key audit matter
Timing of revenue recognition
Refer to note 7.2 of the nancial statements
The company´s revenue, EUR 575 million, consist of sale of goods and services.
The transaction price of sale of goods consists of the list price of the goods, the
variable consideration related to the right to return, as well as the transportation
fee. The sale of goods is recognized when the customer assumes control of
the goods. When a customer is paying using Apuraha nancing, the company
recognizes the revenue from customer nancing on a monthly basis according
to the actuals.
The transaction price for service contracts with customers consists mainly of
xed prices. The company recognizes revenue from service contracts with
customers when the service has been rendered or over time.
Verkkokauppa.com´s revenue comprise a large amount of transactions and
revenue is a signicant item in the nancial statements. Management exercises
judgement e.g. when dening the variable consideration related to sale of goods.
Given the factors described above, we have considered timing of revenue
recognition to be a key audit matter.
Our audit procedures included test of controls related to timing of revenue
recognition and test of details procedures. Our test of details included e.g. the
following procedures:
• We gained an understanding of the nature of the revenue streams and
different contractual terms used.
• We assessed the Company’s accounting policies over revenue recognition.
• We compared the accounting treatment of a sample of sales transactions and
variable consideration to the terms of underlying contracts.
• We tested a sample of sales transactions against incoming cash.
• We tested a sample of sales invoices recorded in December 2021 and January
2022 to evaluate that revenue had been recognised in the right period.
• We compared selected accounts receivable balances against payments
received after the period end.
Valuation of inventories
Refer to note 7.18 of the nancial statements
Inventories form a signicant part of the company’s assets, amounting to
EUR 87.8 million as of 31 December 2021.
Inventories are measured at the lower of cost and net realizable value.
The cost of inventory is assigned by using the FIFO (rst-in, rst-out) method.
The cost contains direct costs of purchase less rebates.
The goods inventory turnover and possible reduction in the net realizable value
below cost is assessed regularly and a write-down of inventories is recognized
when necessary. In addition, the company recognizes a write-down of aged
products, based on days in stock.
Inventories are a signicant item in the nancial statements. Management
exercises judgement and applies assumptions when estimating the need for an
obsolescence provision. Given the factors described above, we have considered
valuation of inventories to be a key audit matter.
Our audit procedures included test of controls and test of details procedures
related to valuation of inventories. Our test of details included e.g. the following
procedures:
• We assessed the adequacy of the obsolescence provision and checked
adherence to the company’s accounting policy.
• We compared, on a sample basis, the value of inventory items against
purchase invoices and sales invoices to ensure that inventory items are
measured at the lower of cost and net realizable value.
• For a sample of warehouses, we attended the physical stock-take counting or
reconciled third party conrmations with the accounting records
There are no signicant risks of material misstatement referred to in Article 10(2c) of Regulation (EU) No 537/2014 with respect to the nancial statements.
2021
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Verkkokauppa.com · Auditor’s Report
Responsibilities of the Board of Directors and
the Managing Director for the Financial Statements
The Board of Directors and the Managing Director are responsible for
the preparation of nancial statements that give a true and fair view
in accordance with International Financial Reporting Standards (IFRS)
as adopted by the EU and comply with statutory requirements. The
Board of Directors and the Managing Director are also responsible
for such internal control as they determine is necessary to enable
the preparation of nancial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the nancial statements, the Board of Directors and
the Managing Director are responsible for assessing the company’s
ability to continue as a going concern, disclosing, as applicable,
matters relating to going concern and using the going concern basis
of accounting. The nancial statements are prepared using the going
concern basis of accounting unless there is an intention to liquidate the
company or to cease operations, or there is no realistic alternative but
to do so.
Auditor’s Responsibilities for
the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the
nancial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with good
auditing practice will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be
expected to inuence the economic decisions of users taken on the
basis of these nancial statements.
As part of an audit in accordance with good auditing practice, we
exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
nancial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain
audit evidence that is sufcient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the company’s internal control.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures
made by management.
• Conclude on the appropriateness of the Board of Directors’ and the
Managing Director’s use of the going concern basis of accounting
and based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast
signicant doubt on the company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related
disclosures in the nancial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the company to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the
nancial statements, including the disclosures, and whether the
nancial statements represent the underlying transactions and
events so that the nancial statements give a true and fair view.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit and
signicant audit ndings, including any signicant deciencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance,
we determine those matters that were of most signicance in the audit of
the nancial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless
law or regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest
benets of such communication.
2021
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Verkkokauppa.com · Auditor’s Report
Other Reporting Requirements
Appointment
We were rst appointed as auditors by the annual general meeting
on 15 March 2016. Our appointment represents a total period of
uninterrupted engagement of 6 years.
Other Information
The Board of Directors and the Managing Director are responsible for
the other information. The other information comprises the report of the
Board of Directors.
Our opinion on the nancial statements does not cover the other
information.
In connection with our audit of the financial statements, our
responsibility is to read the other information identied above and,
in doing so, consider whether the other information is materially
inconsistent with the nancial statements or our knowledge obtained
in the audit, or otherwise appears to be materially misstated. With
respect to the report of the Board of Directors, our responsibility also
includes considering whether the report of the Board of Directors has
been prepared in accordance with the applicable laws and regulations.
In our opinion
• the information in the report of the Board of Directors is consistent
with the information in the nancial statements
• the report of the Board of Directors has been prepared in
accordance with the applicable laws and regulations.
If, based on the work we have performed on the other information
that we obtained prior to the date of this auditor’s report, we conclude
that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Helsinki 1 March 2022
PricewaterhouseCoopers Oy
Authorised Public Accountants
Ylva Eriksson
Authorised Public Accountant (KHT)
2021
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Verkkokauppa.com · Auditor’s Report
Verkkokauppa.com
empowers its customers to follow their passion by providing a wide product assort-
ment of around 80,000 products. Verkkokauppa.com Oyj serves its retail and corpo-
rate customers through its webstore, megastores, 24h kiosk and network of collection
points as well as fast deliveries and various services. As Finland’s most popular and
most visited domestic online retailer, its deliveries cover around 75 percent of the Fin-
nish population within the next day. The Company has four megastores: in Oulu, Pirk-
kala, Raisio, and Helsinki, where its headquarters is also located. Verkkokauppa.com
employs more than 750 people and its shares are listed on the Nasdaq Helsinki stock
exchange with the ticker VERK.
linkedin.com/company/verkkokauppa.com twitter.com/verkkokauppacom facebook.com/verkkokauppacom/ instagram.com/verkkokauppacom/