Verkkokauppa.com Oyj COMPANY RELEASE 12 February 2018 at 9:05

Verkkokauppa.com Oyj (the "Company") announced on 12 December 2018 in its company release that it will prepare its financial statements release and annual financial statements in accordance with the International Financial Reporting Standards (IFRS) for the period ended 31, December 2018. Previously the Company has prepared its financial statements, including interim reports, in accordance with the Finnish Accounting Standards (FAS).

The financial information in this release is based on IFRS standards effective as at 31, December 2018, however so that IFRS 16 Leases has been applied early. Verkkokauppa.com Oyj has adopted IFRS 16 fully retrospectively. IFRS 1 -standard (First-time Adoption of International Financial Reporting Standards) has been applied in the transition. Verkkokauppa.com Oyj has not applied any of the exemptions allowed by IFRS 1 in the transition.

Key differences to the Finnish Accounting Standards resulting from the transition to IFRS are described in accompanying notes to this company release. Additional information on the historical financial information prepared in accordance with FAS, is available in the audited historical financial statements and the unaudited interim financial information of the Company on the Company's website at www.verkkokauppa.com.

The financial information presented in this release is unaudited except for the income statement and statement of financial position prepared in accordance with FAS for the period ended 31, December 2017 and for the statement of financial position prepared in accordance with FAS for the period ended 31 December 2016.

Financial information

Verkkokauppa.com Oyj has prepared the following unaudited IFRS financial information to provide its investors comparative information on Verkkokauppa.com Oyj's income statement, financial position and key figures for the year ended 31 December 2017, for the interim periods in 2017 and 2018 and the financial position as at the IFRS transition date 1 January 2017.


Income statement 1 July-30 September 2018 and 1 January-30 September 2018

  Reference 1 Jul-
30 Sept 
2018
FAS 		Effect of
IFRS
adjustments,
total 		1 Jul-
30 Sept
2018
IFRS 		  1 Jan-
30 Sept
2018
FAS 		Effect of
IFRS
adjustments,
total 		1 Jan-
30 Sept
2018
IFRS
EUR thousand  
Revenue 1a) 116,772 102 116,874   321,499 482 321,981
                 
Other operating income   121 - 121   214 - 214
Materials and services 4b) -99,397 -119 -99,517   -273,173 279 -272,894
Employee benefit expenses 1b) -6,769 -274 -7,043   -21,147 -800 -21,947
Depreciation and amortisation 2) -306 -955 -1,261   -962 -2,869 -3,831
Other operating expenses 1a), 1b), 2) -7,024 1,550 -5,474   -20,626 4,481 -16,145
                 
Operating profit   3,397 304 3,702   5,804 1,573 7,377
                 
Finance income   1 - 1   7 - 7
Finance costs 2) -47 -362 -410   -73 -1,198 -1,271
                 
Profit before income taxes   3,351 -58 3,293   5,738 375 6,112
                 
Income taxes 5) -700 21 -678   -1,167 -55 -1,222
                 
Profit for the period   2,652 -37 2,615   4,571 320 4,891
                 
Profit for the period attributable to                
Equity holders of the company   2,652   2,615   4,571   4,891
                 
Earnings per share calculated
from the profit attributable to
equity holders 		               
Earnings per share, basic and
diluted (EUR) 		  0.06   0.06   0.10   0.11

Statement of other comprehensive income 1 July-30 September 2018 and 1 January-30 September 2018

  Reference 1 Jul -
30
Sept
2018
FAS 		Effect of
IFRS
adjustments,
total 		1 Jul
2018 -
30
Sept
2018
IFRS 		  1 Jan-
30
Sept
2018
FAS 		Effect of
IFRS
adjustments,
total 		1 Jan-
30
Sept
2018
IFRS
EUR thousand  
Profit for the period   2,652   2,615   4,571   4,891
                 
Items that will not be reclassified to profit or loss              
Changes in fair values of equity
investments 		3b)   -23 -23     -23 -23
Other comprehensive income after taxes,
total 		  -23 -23     -23 -23
Comprehensive income for the period 2,652 -23 2,592   4,571 -23 4,868
                 
Comprehensive income for the period              
Equity holders of the company   2,652   2,592   4,571   4,868

Statement of financial position 30 September 2018

    30 Sept 2018 Effect of IFRS
adjustments 		30 Sept 2018
EUR thousand Reference FAS IFRS
Non-current assets        
Intangible assets   909 - 909
Property, plant and equipment   2,066 - 2,066
Right-of-use assets 2) - 22,670 22,670
Equity investments 3b) 275 - 275
Deferred tax assets 5) - 1,131 1,131
Trade receivables 3a) 1,707 - 1,707
Other non-current receivables   437 - 437
Non-current assets, total   5,394 23,801 29,194
         
Current assets        
Inventories 4b) 52,258 -398 51,861
Trade receivables 3a) 13,746 - 13,746
Other receivables   927 - 927
Income tax receivables 1c)   778 778
Accrued income 1c) 7,391 -778 6,613
Cash and cash equivalents   25,975 - 25,975
Current assets, total   100,297 -398 99,900
         
Total assets   105,691 23,403 129,094
         
Equity        
Share capital   100 - 100
Treasury shares 1d) - -502 -502
Fair value reserve 3c) - -33 -33
Invested non-restricted equity fund   25,554 - 25,554
Retained earnings 1), 2), 3), 4), 5) 8,678 -3,509 5,169
Profit for the period   4,571 320 4,891
Total equity   38,902 -3,724 35,179
         
Non-current liabilities        
Lease liabilities 2) - 23,616 23,616
Deferred tax liabilities 5) - 9 9
Depreciation difference 4a) 47 -47 -
Provisions   675 - 675
Non-current liabilities, total   722 23,578 24,300
         
Current liabilities        
Lease liabilities 2) - 3,698 3,698
Advance payments received   2,664 - 2,664
Trade payables   48,173 - 48,173
Other current liabilities   4,900 - 4,900
Accrued liabilities  2) 10,330 -149 10,181
Current liabilities, total   66,067 3,549 69,615
         
Total liabilities   66,789 27,127 93,916
         
Total equity and liabilities   105,691 23,403 129,094

Income statement 1 April-30 June 2018 and 1 January-30 June 2018

  Reference 1 Apr -
30 June
2018
FAS 		Effect of IFRS
adjustments,
total 		1 Apr -
30 June
2018
IFRS 		  1 Jan -
30 June
2018
FAS 		Effect of
IFRS
adjustments,
total 		1 Jan -
30
June
2018
IFRS
EUR thousand  
Revenue 1a) 102,214 200 102,414   204,727 380 205,107
                 
Other operating income   73 - 73   93 - 93
Materials and services 4b) -87,593 204 -87,390   -173,776 399 -173,377
Employee benefit expenses 1b) -7,292 -253 -7,545   -14,379 -526 -14,904
Depreciation and amortisation 2) -325 -955 -1,279   -656 -1,914 -2,571
Other operating expenses 1a), 1b), 2) -6,702 1,443 -5,260   -13,602 2,930 -10,671
                 
Operating profit   374 639 1,012   2,407 1,269 3,676
                 
Finance income   2 - 2   5 - 5
Finance costs 2) -13 -413 -426   -26 -836 -862
                 
Profit before income taxes   363 225 588   2,387 433 2,819
                 
Income taxes 5) -77 -49 -125   -467 -76 -543
                 
Profit for the period   286 177 462   1,919 357 2,276
                 
Profit for the period
attributable to 		               
Equity holders of the
company 		  286   462   1,919   2,276
                 
Earnings per share
calculated from the profit
attributable to equity
holders 		               
Earnings per share, basic
and diluted (EUR) 		  0.01   0.01   0.04   0.05

Statement of other comprehensive income 1 April-30 June 2018 and 1 January-30 June 2018

  Reference 1 Apr - 30 June 2018 FAS Effect of IFRS adjustments, total 1 Apr - 30 June 2018 IFRS   1 Jan - 30 June 2018 FAS Effect of IFRS adjustments, total 1 Jan - 30 June 2018 IFRS
EUR thousand  
Profit for the period 286   462   1,919   2,276
                 
Comprehensive income for the period 286 - 462   1,919 - 2,276
                 
Comprehensive income for the period              
Equity holders of the
company 		  286   462   1,919   2,276


Statement of financial position 30 June 2018

    30 June
2018 		Effect of IFRS
adjustments 		30 June
2018
EUR thousand Reference FAS IFRS
Non-current assets        
Intangible assets   884 - 884
Property, plant and equipment   2,146 - 2,146
Right-of-use assets 2) - 23,537 23,537
Equity investments 3b) 316 -23 294
Deferred tax assets 5) - 1,106 1,106
Trade receivables 3a) 1,528 - 1,528
Other non-current receivables   437 - 437
Non-current assets, total   5,312 24,620 29,932
         
Current assets        
Inventories 4b) 53,556 -278 53,278
Trade receivables 3a) 11,481 - 11,481
Other receivables   724 - 724
Income tax receivables 1c)   755 755
Accrued income 1c) 6,283 -755 5,528
Cash and cash equivalents   21,302 - 21,302
Current assets, total   93,346 -278 93,068
         
Total assets   98,657 24,342 122,999
         
Equity        
Share capital   100 - 100
Treasury shares 1d) - -502 -502
Fair value reserve 3c) - -18 -18
Invested non-restricted equity fund   25,493 - 25,493
Retained earnings 1), 2), 3), 4), 5) 10,747 -3,535 7,212
Profit for the period   1,919 357 2,276
Total equity   38,259 -3,699 34,560
         
Non-current liabilities        
Lease liabilities 2) - 24,444 24,444
Deferred tax liabilities 5) - 9 9
Depreciation difference 4a) 47 -47 -
Provisions   588 - 588
Non-current liabilities, total   635 24,406 25,041
         
Current liabilities        
Lease liabilities 2) - 3,772 3,772
Advance payments received   2,365 - 2,365
Trade payables   41,868 - 41,868
Other current liabilities   4,318 - 4,318
Accrued liabilities  2) 11,212 -138 11,075
Current liabilities, total   59,764 3,634 63,398
         
Total liabilities   60,399 28,041 88,440
         
Total equity and liabilities   98,657 24,342 122,999

Income statement 1 January-31 March 2018

  Reference 1 Jan - 31
March
2018 FAS 		Effect of IFRS
adjustments,
total 		1 Jan - 31
March
2018 IFRS
EUR thousand
Revenue 1a) 102,513 180 102,693
         
Other operating income   20 - 20
Materials and services 4b) -86,183 195 -85,987
Employee benefit expenses 1b) -7,086 -273 -7,359
Depreciation and amortisation 2) -332 -960 -1,291
Other operating expenses 1a), 1b), 2) -6,899 1,488 -5,412
         
Operating profit   2,033 630 2,663
         
Finance income   4 - 4
Finance costs 2) -13 -423 -436
         
Profit before income taxes   2,024 208 2,232
         
Income taxes 5) -391 -27 -418
         
Profit for the period   1,633 180 1,813
         
Profit for the period attributable to        
Equity holders of the company   1,633   1,813
         
Earnings per share calculated from the
profit attributable to equity holders 		       
Earnings per share, basic and diluted (EUR) 0.04   0.04

Statement of other comprehensive income 1 January-31 March 2018

  Reference 1 Jan - 31
March
2018 FAS 		Effect of IFRS
adjustments,
total 		1 Jan - 31
March
2018 IFRS
EUR thousand
Profit for the period 1,633   1,813
         
Comprehensive income for the period 1,633 - 1,813
         
Comprehensive income for the period      
Equity holders of the company   1,633   1,813

Statement of financial position 31 March 2018

    31 March
2018 		Effect of IFRS
adjustments 		31 March
2018
EUR thousand Reference FAS IFRS
Non-current assets        
Intangible assets   868 - 868
Property, plant and equipment   2,284 - 2,284
Right-of-use assets 2) - 24,377 24,377
Equity investments 3b) 316 -23 294
Deferred tax assets 5) - 1,154 1,154
Trade receivables 3a) 1,475 - 1,475
Other non-current receivables   437 - 437
Non-current assets, total   5,380 25,509 30,889
         
Current assets        
Inventories 4b) 49,663 -482 49,181
Trade receivables 3a) 10,832   10,832
Other receivables   1,146 - 1,146
Income tax receivables 1c) - 220 220
Accrued income 1c) 4,873 -220 4,652
Cash and cash equivalents   27,985 - 27,985
Current assets, total   94,500 -482 94,018
         
Total assets   99,880 25,027 124,907
         
Equity        
Share capital   100 - 100
Fair value reserve 3c) - -18 -18
Invested non-restricted equity fund   25,493 - 25,493
Retained earnings 1), 2), 3), 4), 5) 13,274 -4,034 9,239
Profit for the period   1,633 180 1,813
Total equity   40,500 -3,873 36,627
         
Non-current liabilities        
Lease liabilities 2) - 25,241 25,241
Deferred tax liabilities 5) - 9 9
Depreciation difference 4a) 47 -47 -
Provisions   567   567
Non-current liabilities, total   614 25,203 25,817
         
Current liabilities        
Lease liabilities 2) - 3,842 3,842
Advance payments received   2,303 - 2,303
Trade payables   42,627 - 42,627
Other current liabilities   2,639 - 2,639
Accrued liabilities  2) 11,197 -145 11,052
Current liabilities, total   58,766 3,696 62,462
         
Total liabilities   59,380 28,899 88,280
         
Total equity and liabilities   99,880 25,027 124,907

Income statement 1 October-31 December 2017 and 1 January-31 December 2017 

  Reference 1 Oct-31
Dec 2017
FAS 		Effect of
IFRS
adjustments,
total 		1 Oct-31
Dec 2017
IFRS 		  1 Jan-31
Dec 2017
FAS 		Effect of
IFRS
adjustments,
total 		1 Jan-31
Dec 2017
IFRS
EUR thousand  
Revenue 1a) 127,398 12 127,410   431,804 66 431,870
                 
Other operating income   19 - 19   81 - 81
Materials and services 4b) -107,064 -257 -107,321   -369,485 65 -369,420
Employee benefit
expenses 		1b) -7,263 -289 -7,552   -25,042 -1,042 -26,084
Depreciation and
amortisation 		2) -366 -915 -1,281   -1,352 -3,232 -4,584
Other operating
expenses 		1a), 1b), 2) -7,156 1,651 -5,505   -24,305 5,902 -18,403
                 
Operating profit   5,568 203 5,770   11,701 1,759 13,460
                 
Finance income   342 -312 30   434 -312 123
Finance costs 2) -9 -423 -431   -51 -1,720 -1,771
                 
Profit before income taxes   5,901 -532 5,369   12,084 -272 11,812
                 
Appropriations 4a) 28 -28 -   28 -28 -
Income taxes 5) -881 19 -862   -2,330 -33 -2,363
                 
Profit for the period   5,048 -541 4,508   9,782 -333 9,449
                 
Profit for the period
attributable to 		               
Equity holders of the
company 		  5,048   4,508   9,782   9,449
                 
Earnings per share
calculated from the
profit attributable to
equity holders 		               
Earnings per share,
basic and diluted (EUR) 		  0.11   0.10   0.22   0.21

Statement of other comprehensive income 1 October-31 December 2017 and 1 January-31 December 2017

  Reference 1 Oct-31
Dec 2017
FAS 		Effect of
IFRS
adjustments,
total 		1 Oct-31
Dec 2017
IFRS 		  1 Jan-31
Dec 2017
FAS 		Effect of
IFRS
adjustments,
total 		1 Jan-30
Sept 2017
IFRS
EUR thousand  
Profit for the period 5,048   4,508   9,782   9,449
                 
Items that will not be
reclassified to profit or
loss 		               
Realized changes in fair
values of equity
investments 		3)   308 308     308 308
Changes in fair values
of equity investments 		3b)   -19 -19     -19 -19
Other comprehensive
income after taxes,
total 		    289 289     289 289
Comprehensive income for the
period 		5,048 289 4,796   9,782 289 9,738
                 
Comprehensive income for the
period 		             
Equity holders of the
company 		  5,048   4,796   9,782   9,738

Statement of financial position 31 December 2017

    31 Dec 2017 Effect of IFRS
adjustments 		31 Dec 2017
EUR thousand Reference FAS IFRS
Non-current assets        
Intangible assets   970 - 970
Property, plant and equipment   1,976 - 1,976
Right-of-use assets 2) - 24,589 24,589
Equity investments 3b) 316 -23 294
Deferred tax assets 5) - 1,182 1,182
Trade receivables 3a) 1,039 - 1,039
Other non-current receivables   437 - 437
Non-current assets, total   4,739 25,748 30,487
         
Current assets        
Inventories 4b) 47,689 -677 47,012
Trade receivables 3a) 11,396 - 11,396
Other receivables   1,242 - 1,242
Income tax receivables 1c)   115 115
Accrued income 1c) 6,933 -115 6,818
Cash and cash equivalents   51,878 - 51,878
Current assets, total   119,138 -677 118,461
         
Total assets   123,877 25,071 148,948
         
Equity        
Share capital   100 - 100
Fair value reserve 3c) - -18 -18
Invested non-restricted equity fund   25,493 - 25,493
Retained earnings 1), 2), 3), 4), 5) 5,475 -3,702 1,773
Profit for the period   9,782 -333 9,449
Total equity   40,850 -4,053 36,797
         
Non-current liabilities        
Lease liabilities 2) - 25,507 25,507
Deferred tax liabilities 5) - 9 9
Depreciation difference 4a) 47 -47 -
Provisions   637 - 637
Non-current liabilities, total   684 25,469 26,154
         
Current liabilities        
Lease liabilities 2) - 3,808 3,808
Advance payments received   2,558 - 2,558
Trade payables   63,149 - 63,149
Other current liabilities   4,626 - 4,626
Accrued liabilities  2) 12,009 -153 11,856
Current liabilities, total   82,343 3,654 85,997
         
Total liabilities   83,027 29,124 112,151
         
Total equity and liabilities   123,877 25,071 148,948

Income statement 1 July-30 September 2017 and 1 January-30 September 2017 

  Reference 1 Jul-
30 Sept
2017
FAS 		Effect of
IFRS
adjustments,
total 		1 Jul-
30 Sept
2017
IFRS 		  1 Jan-
30 Sept
2017
FAS 		Effect of
IFRS
adjustments,
total 		1 Jan-
30 Sept
2017
IFRS
EUR thousand  
Revenue 1a) 105,420 16 105,436   304,406 55 304,460
                 
Other operating income   23 - 23   62 - 62
Materials and services 4b) -91,547 -155 -91,702   -262,421 322 -262,099
Employee benefit expenses 1b) -5,695 -278 -5,973   -17,779 -753 -18,532
Depreciation and amortisation 2) -356 -812 -1,168   -985 -2,317 -3,303
Other operating expenses 1a), 1b), 2) -6,113 1,496 -4,617   -17,149 4,251 -12,898
                 
Operating profit   1,731 267 1,998   6,133 1,557 7,690
                 
Finance income   31 - 31   92 - 92
Finance costs 2) -23 -427 -450   -43 -1,297 -1,340
                 
Profit before income taxes   1,739 -160 1,579   6,183 260 6,442
                 
Income taxes 5) -353 32 -321   -1,449 -52 -1,501
                 
Profit for the period   1,386 -128 1,258   4,734 208 4,941
                 
Profit for the period
attributable to 		               
Equity holders of the company   1,386   1,258   4,734   4,941
                 
Earnings per share
calculated from the profit
attributable to equity holders 		               
Earnings per share, basic and
diluted (EUR) 		  0.03   0.03   0.11   0.11

Statement of other comprehensive income 1 July-30 September 2017 and 1 January-30 September 2017

  Reference 1 Jul- 30
Sept
2017 FAS 		Effect of IFRS
adjustments,
total 		1 Jul-
30
Sept
2017
IFRS 		  1 Jan-
30 Sept
2017
FAS 		Effect of IFRS
adjustments,
total 		1 Jan-
30
Sept
2017
IFRS
EUR thousand  
Profit for the period 1,386   1,258   4,734   4,941
                 
Comprehensive income for the period 1,386 - 1,258   4,734 - 4,941
                 
Comprehensive income for the period              
Equity holders of the company   1,386   1,258   4,734   4,941

Statement of financial position 30 September 2017

    30 Sept
2017 		Effect of IFRS
adjustments 		30 Sept
2017
EUR thousand Reference FAS IFRS
Non-current assets        
Intangible assets   1,036 - 1,036
Property, plant and equipment   1,767 - 1,767
Right-of-use assets 2) - 23,185 23,185
Equity investments 3b) 282 1 283
Deferred tax assets 5) - 1,168 1,168
Trade receivables 3a) 771 - 771
Other non-current receivables   438 - 438
Non-current assets, total   4,294 24,354 28,648
         
Current assets        
Inventories 4b) 46,954 -420 46,534
Trade receivables 3a) 10,273 -32 10,241
Other receivables   664 - 664
Income tax receivables 1c)   116 116
Accrued income 1c) 5,116 -116 5,000
Cash and cash equivalents   29,860 - 29,860
Current assets, total   92,867 -452 92,415
         
Total assets   97,160 23,902 121,063
         
Equity        
Share capital   100 - 100
Fair value reserve 3c) - 1 1
Invested non-restricted equity fund   25,493 - 25,493
Retained earnings 1), 2), 3), 4), 5) 7,413 -4,009 3,404
Profit for the period   4,734 208 4,941
Total equity   37,739 -3,801 33,939
         
Non-current liabilities        
Lease liabilities 2) - 24,584 24,584
Deferred tax liabilities 5) - 15 15
Depreciation difference 4a) 75 -75 -
Provisions   810 - 810
Non-current liabilities, total   885 24,524 25,409
         
Current liabilities        
Lease liabilities 2) - 3,250 3,250
Advance payments received   2,700 - 2,700
Trade payables   39,895 - 39,895
Other current liabilities   3,823 - 3,823
Accrued liabilities  2) 12,118 -71 12,047
Income tax liabilities   -    
Current liabilities, total   58,536 3,179 61,715
         
Total liabilities   59,421 27,703 87,124
         
Total equity and liabilities   97,160 23,902 121,063



Income statement 1 April-30 June 2017 and 1 January-30 June 2017 

  Reference 1 Apr-
30 June
2017
FAS 		Effect of
IFRS
adjustments,
total 		1 Apr-
30
June
2017
IFRS 		  1 Jan-
30 June
2017
FAS 		Effect of
IFRS
adjustments,
total 		1 Jan-
30 June
2017
IFRS
EUR thousand  
Revenue 1a) 99,014 22 99,036   198,986 38 199,024
                 
Other operating income   19 - 19   39 - 39
Materials and services 4b) -84,652 92 -84,560   -170,874 477 -170,397
Employee benefit expenses 1b) -5,979 -245 -6,224   -12,084 -475 -12,559
Depreciation and amortisation 2) -328 -797 -1,125   -630 -1,506 -2,135
Other operating expenses 1a), 1b), 2) -5,822 1,341 -4,481   -11,036 2,755 -8,281
                 
Operating profit   2,253 411 2,664   4,402 1,290 5,691
                 
Finance income   30 - 30   61 - 61
Finance costs 2) -12 -434 -446   -20 -870 -889
                 
Profit before income taxes   2,271 -23 2,248   4,443 420 4,863
                 
Income taxes 5) -473 5 -468   -1,096 -84 -1,180
                 
Profit for the period   1,799 -19 1,780   3,347 336 3,683
                 
Profit for the period
attributable to 		               
Equity holders of the
company 		  1,799   1,780   3,347   3,683
                 
Earnings per share
calculated from the profit
attributable to equity
holders 		               
Earnings per share, basic and
diluted (EUR) 		  0.04   0.04   0.07   0.08

Statement of other comprehensive income 1 April-30 June 2017 and 1 January-30 June 2017

  Reference 1 Apr-
30 June
2017
FAS 		Effect of
IFRS
adjustments,
total 		1 Apr-
30
June
2017
IFRS 		  1 Jan-30
June
2017
FAS 		Effect of
IFRS
adjustments,
total 		1 Jan-
30 June
2017
IFRS
EUR thousand  
Profit for the period 1,799   1,780   3,347   3,683
                 
Comprehensive income for the period 1,799 - 1,780   3,347 - 3,683
                 
Comprehensive income for the period              
Equity holders of the
company 		  1,799   1,780   3,347   3,683

Statement of financial position 30 June 2017

    30 June
2017 		Effect of IFRS
adjustments 		30 June
2017
EUR thousand Reference FAS IFRS
Non-current assets        
Intangible assets   1,144 - 1,144
Property, plant and equipment   1,771 - 1,771
Right-of-use assets 2) - 23,997 23,997
Equity investments 3b) 282 1 283
Deferred tax assets 5) - 1,136 1,136
Trade receivables 3a) 282 - 282
Other non-current receivables   219 - 219
Non-current assets, total   3,697 25,134 28,831
         
Current assets        
Inventories 4b) 47,677 -265 47,412
Trade receivables 3a) 7,484 -32 7,452
Other receivables   848 - 848
Accrued income   6,556 - 6,556
Cash and cash equivalents   21,929 - 21,929
Current assets, total   84,494 -297 84,197
         
Total assets   88,192 24,837 113,028
         
Equity        
Share capital   100 - 100
Fair value reserve 3c) - 1 1
Invested non-restricted equity fund   25,493 - 25,493
Retained earnings 1), 2), 3), 4), 5) 9,305 -4,009 5,296
Profit for the period   3,347 336 3,683
Total equity   38,246 -3,673 34,573
         
Non-current liabilities        
Lease liabilities 2) - 25,393 25,393
Deferred tax liabilities 5) - 15 15
Depreciation difference 4a) 75 -75 -
Provisions   810 - 810
Non-current liabilities, total   885 25,333 26,219
         
Current liabilities        
Lease liabilities 2) - 3,251 3,251
Advance payments received   2,252 - 2,252
Trade payables   31,082 - 31,082
Other current liabilities   2,583 - 2,583
Accrued liabilities 1c), 2) 13,144 -486 12,658
Income tax liabilities 1c) - 411 411
Current liabilities, total   49,061 3,176 52,237
         
Total liabilities   49,946 28,509 78,455
         
Total equity and liabilities   88,192 24,837 113,028

Income statement 1 January-March 31 2017

  Reference 1 Jan-31
March 2017
FAS 		Effect of IFRS
adjustments,
total 		1 Jan-31
March 2017
IFRS
EUR thousand
Revenue 1a) 99,971 17 99,988
         
Other operating income   19 - 19
Materials and services 4b) -86,222 385 -85,837
Employee benefit expenses 1b) -6,105 -230 -6,335
Depreciation and amortisation 2) -302 -708 -1,010
Other operating expenses 1a), 1b), 2) -5,214 1,415 -3,799
         
Operating profit   2,149 878 3,027
         
Finance income   31 - 31
Finance costs 2) -8 -435 -443
         
Profit before income taxes   2,172 443 2,615
         
Income taxes 5) -623 -89 -712
         
Profit for the period   1,549 354 1,903
         
Profit for the period attributable to        
Equity holders of the company   1,549   1,903
         
Earnings per share calculated from the profit
attributable to equity holders 		       
Earnings per share, basic and diluted (EUR)   0.03   0.04

Statement of other comprehensive income 1 January-March 31 2017

  Reference 1 Jan-31 March 2017 FAS Effect of IFRS adjustments, total 1 Jan-31 March 2017 IFRS
EUR thousand
Profit for the period   1,549   1,903
         
Comprehensive income for the period   1,549 - 1,903
         
Comprehensive income for the period        
Equity holders of the company   1,549   1,903

Statement of financial position 31 March 2017

    31 March
2017 		Effect of IFRS
adjustments 		31 March
2017
EUR thousand Reference FAS IFRS
Non-current assets        
Intangible assets   1,173 - 1,173
Property, plant and equipment   1,309 - 1,309
Right-of-use assets 2) - 21,365 21,365
Equity investments 3b) 282 1 283
Deferred tax assets 5) - 1,131 1,131
Trade receivables 3a) 255 - 255
Other non-current receivables   219 - 219
Non-current assets, total   3,238 22,497 25,735
         
Current assets        
Inventories 4b) 43,365 -357 43,008
Trade receivables 3a) 6,609 -32 6,578
Other receivables   1,230 - 1,230
Accrued income   7,641 - 7,641
Cash and cash equivalents   30,557 - 30,557
Current assets, total   89,402 -389 89,013
         
Total assets   92,639 22,109 114,748
         
Equity        
Share capital   100 - 100
Fair value reserve 3c) - 1 1
Invested non-restricted equity fund   25,493 - 25,493
Retained earnings 1), 2), 3), 4), 5) 12,054 -4,009 8,045
Profit for the period   1,549 354 1,903
Total equity   39,196 -3,654 35,542
         
Non-current liabilities        
Lease liabilities 2) - 23,473 23,473
Deferred tax liabilities 5) - 15 15
Depreciation difference 4a) 75 -75  
Provisions   810 - 810
Non-current liabilities, total   885 23,413 24,298
         
Current liabilities        
Lease liabilities 2) - 2,350 2,350
Advance payments received   2,347 - 2,347
Trade payables   36,443 - 36,443
Other current liabilities   1,512 - 1,512
Accrued liabilities 1c) 12,256 -281 11,975
Income tax liabilities 1c) - 281 281
Current liabilities, total   52,558 2,350 54,908
         
Total liabilities   53,443 25,763 79,206
         
Total equity and liabilities   92,639 22,109 114,748

Transition date statement of financial position 1 January 2017

    1 Jan 2017 Effect of IFRS
adjustments 		1 Jan 2017
EUR thousand Reference FAS IFRS
Non-current assets        
Intangible assets   1,222 - 1,222
Property, plant and equipment   1,397 - 1,397
Right-of-use assets 2) - 22,023 22,023
Equity investments 3b) 251 1 252
Deferred tax assets 5) - 1,220 1,220
Trade receivables 3a) 231 - 231
Other non-current receivables   121 - 121
Non-current assets, total   3,223 23,244 26,467
         
Current assets        
Inventories 4b) 44,044 -742 43,302
Trade receivables 3a) 7,475 -32 7,443
Other receivables   517 - 517
Accrued income   4,937 - 4,937
Cash and cash equivalents   41,692 - 41,692
Current assets, total   98,665 -774 97,892
         
Total assets   101,888 22,470 124,358
         
Equity        
Share capital   100 - 100
Fair value reserve 3c) - 1 1
Invested non-restricted equity fund   25,493 - 25,493
Retained earnings 1), 2), 3), 4), 5) 13,857 -4,009 9,848
Total equity   39,450 -4,008 35,441
         
Non-current liabilities        
Lease liabilities 2) - 24,017 24,017
Deferred tax liabilities 5) - 15 15
Depreciation difference 4a) 75 -75 -
Provisions   810 - 810
Non-current liabilities, total   885 23,957 24,842
         
Current liabilities        
Lease liabilities 2) - 2,522 2,522
Advance payments received   3,065 - 3,065
Trade payables   42,087 - 42,087
Other current liabilities   3,496 - 3,496
Accrued liabilities 1c) 12,906 -1,073 11,833
Income tax liabilities 1c) - 1,073 1,073
Current liabilities, total   61,553 2,522 64,075
         
Total liabilities   62,438 26,479 88,917
         
Total equity and liabilities   101,888 22,470 124,358

IFRS notes

Outlined below are the accounting policies that have had the most significant effects on the income statement, statement of financial position, and cash flow statement of Verkkokauppa.com Oyj due to the adoption of IFRS.

Verkkokauppa.com Oyj has control of, and owns all shares in, the Estonian company Arctecho Oü. Said company has not had any business activities for more than five years and the company does not have receivables from or liabilities to Verkkokauppa.com Oyj. Thus, Verkkokauppa.com Oyj will not prepare consolidated financial statements based on materiality. Therefore, Verkkokauppa.com Oyj will prepare separate financial statements according to IFRS.

Verkkokauppa.com Oyj has not applied any optional exemptions allowed by IFRS 1 -standard in the transition. Verkkokauppa.com Oyj has recognized all its lease agreements fully retrospectively and has not applied any exceptions allowed by IFRS 1.

  1. Changes in classification

a) Changes in classification of revenue recognition

According to FAS, the Company has presented the income of third-party financed Apuraha consumer financing service less credit losses in the revenue. According to IFRS, the Company presents the gross revenue because it is the principal in the transaction in respect to the customer. Thus, the credit losses deducted from revenue according to FAS are transferred to other operating costs in IFRS.

b) Voluntary personnel costs

According to FAS, the Company has presented all the voluntary personnel costs in other operating costs. In the IFRS financial statements, all personnel costs belonging to employee benefits are presented as part of personnel costs.

c) Income tax receivables and liabilities

According to FAS, the income tax receivables and liabilities based on the taxable profit of the year are presented as part of accrued income and accrued liabilities. In the transition to IFRS, these have been transferred to their respective line items in the balance sheet.

d) Treasury shares

In FAS financial statements, treasury shares have been presented as part of retained earnings in the primary financial statements. For the sake of clarity, the Company presents the treasury shares on a separe line in the IFRS primary financial statements.

  1. Leases

According to FAS, the Company has recognized lease expenses on a time apportionment basis in other operating costs in the income statement. At financial year-end, the lease obligations have been presented as off-balance sheet items as part of contingent liabilities. According to IFRS, for all leases, the Company must recognize the asset and liability corresponding to the present value of minimum lease payments in the balance sheet at the commencement date of the lease. The standard contains practical expedients, under which low-value leases and short-term leases (under 12 months) can be exempted from recognition. Verkkokauppa.com Oyj has decided to apply both of the expedients. The right-of-use asset and the lease liability, which are based on a right to control an asset and the lease liability, are calculated by discounting the future minimum lease payments. With the accounting treatment based on IFRS, the lease expenses presented in FAS are replaced with the depreciation of the right-of-use asset. In addition, the interest costs of the lease liabilities, which are presented in the finance costs in the income statement, are recognized. If lease payments have been accrued, they have been transferred from accrued liabilities to lease liabilities.

  1. Financial instruments
  2. Impairment of financial assets and financial guarantees

IFRS requires that the model of expected credit losses is applied in assessing and recognizing impairment of financial assets as well as financial guarantee contracts. According to IFRS, the Company has recognized the impairment losses in the opening balance based on the new model. In the FAS financial statements of 2017, the Company has recognized credit losses from receivables of the company-financed Apuraha consumer financing service according to the ageing of the receivable. In the transition to IFRS, the Company has developed impairment models also for other trade receivables as well as for financial guarantee contracts.

  1. Classification of equity investments at fair value through other comprehensive income

IFRS requires financial assets classification based on business model. In the transition to IFRS, the Company has assessed the business model of equity investments and has irrevocably decided to classify said equity investments at fair value through other comprehensive income. According to FAS, the Company has accounted for the investments at historical cost. In the third quarter of 2018, an impairment was made for one of the investments and recognized as finance costs under FAS.  According to IFRS, changes in fair values will be recognized in other comprehensive income. On disposal of equity investments, any accumulated related balance within other comprehensive income is reclassified as retained earnings.  

  1. Fair value reserve for equity investments classified at fair value through other comprehensive income

Fair value changes in equity investments, which have been recognized through other comprehensive income, are accumulated in the fair value reserve. When such equity investments are derecognized, the accumulated amounts from this reserve is transferred to retained earnings. According to FAS, the disposals of these investments have been recognized as finance costs or income in the income statement. In the IFRS transition, the gains from disposal of the equity investment recognized according to FAS was therefore transferred to retained earnings. 

  1. Other adjustments
  2. Depreciation difference

In the FAS financial statements, the Company had a depreciation difference that has been eliminated in the transition to IFRS to form part of retained earnings and deferred tax liabilities.

  1. Annual inventory rebates

Under FAS, not all the annual rebates have been allocated in full to the inventory cost. IFRS requires that in defining the inventory purchase costs, the annual rebates have been deducted from it. Because of this, the Company has adjusted the carrying amount of the inventory and has recognized deferred taxes on the adjustment. The effect in the income statement is shown in the materials and services -item, in change of inventories and, in change of deferred taxes.

  1. Share-based payments

In 2018, the Company's Board of Directors decided on establishing a share-based incentive plan for key management personnel. The first share-based incentive plan started in the end of June and covers a three-year commitment period (2018-2020). The matching share plan based on share investment has a cash and equity settled part. The plan has been classified in the IFRS transition as an equity- settled transaction, because Verkkokauppa.com Oyj will deduct, on behalf of the employee, from the share award such number of shares which covers taxes and tax-like charges paid in cash. This equity- settled shared-based payment was measured at grant date fair value and recognized as an expense over the three-year period (2018-2020) and in retained earnings. In FAS, the share-based payment has been recognized as an expense and booked as accrued liability. The amount expensed during 2018 was not significant (54 thousand euros).

  1. Deferred tax assets an liabilities

The Company has not recognized deferred taxes in its FAS financial statements for taxable temporary differences. All deferred taxes booked in the IFRS transition relate to temporary differences arising from the adjustments. In the deferred tax assets, the most significant deferred tax asset is related to the lease agreements and adjustments made to inventory.

     

The effect of IFRS adoption on statement of cash flows

Transition to IFRS mainly affects the cash flow from operating activities and cash flow from financing activities in the statement of cash flows, as realized rent payments are allocated to cash flow from operating activities for the portion corresponding to finance costs and to cash flow from financing activities for the portion corresponding to part payment of debt.

Summary of effects of IFRS transition on equity and profit for the period 2018

EUR Thousand Reference 30.9.2018 30.6.2018 31.3.2018
Equity FAS   38,902 38,259 40,500
         
IFRS adjustments:        
Leases 2) -3,611 -3,633 -3,648
Financial instruments 3) 23 -18 -18
Other adjustments 4) -135 -47 -206
Adjustments, total   -3,724 -3,699 -3,873
         
Equity IFRS   35,179 34,560 36,627


EUR Thousand Reference 1.1.-30.09.
2018 		1.7.-30.9.
2018 		1.1.-30.06.
2018 		1.4.-30.6.
2018 		1.1.-31.3.
2018
Profit for the period FAS   4,571 2,652 1,919 286 1,633
             
IFRS adjustments:            
Leases 2) 47 22 25 15 10
Financial instruments 3) 41 41      
Other adjustments 4) 232 -100 332 162 170
Adjustments, total   320 -37 357 177 180
             
Profit for the period IFRS   4,891 2,615 2,276 462 1,813

Summary of effects of IFRS transition on equity and profit for the period 2017

EUR Thousand Reference 31.12.2017 30.9.2017 30.6.2017 31.3.2017 1.1.2017
Equity FAS   40,850 37,739 38,246 39,196 39,450
             
IFRS adjustments:            
Leases 2) -3,658 -3,662 -3,658 -3,566 -3,612
Financial instruments 3) -18 -25 -25 -25 -25
Other adjustments 4) -376 -114 10 -63 -371
Adjustments, total   -4,053 -3,801 -3,673 -3,654 -4,008
             
Equity IFRS   36,797 33,939 34,573 35,542 35,441


EUR Thousand Reference 1.1. -
31.12.
2017 		1.10.-
31.12.
2017 		1.1. -
30.09.2017 		1.7.-
30.9.2017 		1.1.-
30.06.2017 		1.4.-
30.6.2017 		1.1.-
31.3.2017
Profit for the period FAS   9,782 5,048 4,734 1,386 3,347 1,799 1,549
                 
IFRS adjustments:                
Leases 2) -46 4 -50 -4 -46 -92 46
Financial instruments 3) -282 -282          
Other adjustments 4) -5 -263 258 -124 381 73 308
Adjustments, total   -333 -541 208 -128 336 -19 354
                 
Profit for the period IFRS   9,449 4,508 4,941 1,258 3,683 1,780 1,903

Key ratios (IFRS)

  1.1.-30.09.
2018 		1.7.-30.9.
2018 		1.1.-30.06.
2018 		1.4.-30.6.
2018 		1.1.-31.3.
2018
Revenue, thousand euros 321,981 116,874 205,107 102,414 102,693
Gross profit, thousand euros 49,087 17,358 31,730 15,024 16,706
Gross margin-% 15,2 % 14,9 % 15,5 % 14,7 % 16,3 %
EBITDA, thousand euros 11,208 4,962 6,246 2,291 3,955
EBITDA-% 3,5 % 4,2 % 3,0 % 2,2 % 3,9 %
Operating profit, thousand euros 7,377 3,702 3,676 1,012 2,663
Operating profit-% 2,3 % 3,2 % 1,8 % 1,0 % 2,6 %
Profit for the period, thousand euros 4,891 2,615 2,276 462 1,813
           
Equity ratio, % 27,8 % 27,8 % 28,6 % 28,6 % 29,9 %
Gearing, % 3,8 % 3,8 % 20,0 % 20,0 % 3,0 %
           
Basic earnings per share, euros 0.11 0.06 0.05 0.01 0.04
Diluted earnings per share, euros 0.11 0.06 0.05 0.01 0.04
Number of issued shares 45,065,130 45,065,130 45,065,130 45,065,130 45,065,130
Number of treasury shares 71,368 71,368 82,500 82,500 -
Weighted average number of shares
outstanding 		45,046,433 45,046,433 45,058,179 45,058,179 45,065,130
Diluted weighted average number of
shares outstanding 		45,096,433 45,096,433 45,058,179 45,058,179 45,065,130


  1.1.-31.12.
2017 		1.10. -
31.12.
2017 		1.1. -
30.09.
2017 		1.7.-30.9.
2017 		1.1.-30.06.
2017 		1.4.-30.6.
2017 		1.1.-31.3.
2017
Revenue, thousand euros 431,870 127,410 304,460 105,436 199,024 99,036 99,988
Gross profit, thousand euros 62,450 20,089 42,361 13,734 28,627 14,476 14,151
Gross margin-% 14,5 % 15,8 % 13,9 % 13,0 % 14,4 % 14,6 % 14,2 %
EBITDA, thousand euros 18,044 7,051 10,993 3,166 7,826 3,790 4,037
EBITDA-% 4,2 % 5,5 % 3,6 % 3,0 % 3,9 % 3,8 % 4,0 %
Operating profit, thousand euros 13,460 5,770 7,690 1,998 5,691 2,664 3,027
Operating profit-% 3,1 % 4,5 % 2,5 % 1,9 % 2,9 % 2,7 % 3,0 %
Profit for the period, thousand euros 9,449 4,508 4,941 1,258 3,683 1,780 1,903
               
Equity ratio, % 25,1 % 25,1 % 28,7 % 28,7 % 31,2 % 31,2 % 31,6 %
Gearing, % -61,3 % -61,3 % -6,0 % -6,0 % 19,4 % 19,4 % -13,3 %
               
Basic earnings per share, euros 0.21 0.10 0.11 0.03 0.08 0.04 0.04
Diluted earnings per share, euros 0.21 0.10 0.11 0.03 0.08 0.04 0.04
Number of issued shares 45,065,130 45,065,130 45,065,130 45,065,130 45,065,130 45,065,130 45,065,130
Weighted average number of
shares outstanding 		45,065,130 45,065,130 45,065,130 45,065,130 45,065,130 45,065,130 45,065,130
Diluted weighted average
number of shares outstanding 		45,065,130 45,065,130 45,065,130 45,065,130 45,065,130 45,065,130 45,065,130



Key ratios

In this release, Verkkokauppa.com Oyj presents certain key figures that are not accounting measures defined 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 financial periods. The Company's management believes that these key figures provide supplementing information on the statement of comprehensive income and financial position.

Alternative performance measures do not substitute the IFRS key ratios.

Formulas for key ratios

KEY RATIO DEFINITIONS   BASIS OF ALTERNATIVE PERFORMANCE MEASURES ADOPTED
GROSS PROFIT  

Revenue - materials and services

  		  Gross profit shows the
profitability of the sales
 

GROSS MARGIN, %

  		(Revenue - materials and services)
Revenue 		x 100 Gross margin measures the
profitability of the sales of
Verkkokauppa.com
EBITDA Operating profit + depreciation +
amortization 		  EBITDA shows the operational
profitability
 

EBITDA, %

  		(Operating profit + depreciation + amortization)
Revenue 		x 100 EBITDA measures the
operational profitability of
Verkkokauppa.com
 

OPERATING PROFIT

  		Result for the period before income taxes
and net finance income and costs 		  Operating profit shows result
generated by operating
activities
 

OPERATING MARGIN, %

  		Operating profit
Revenue 		x 100 Operating margin measures
operational efficiency of
Verkkokauppa.com
 

EQUITY RATIO, %

  		Total equity
Balance sheet total - advance payments received 		  Equity ratio measures
Verkkokauppa.com's solvency,
ability to bear losses and ability
to meet commitments in the
long run
 

GEARING, %

  		Interest bearing liabilities + lease liabilities - cash and cash equivalents - interest bearing receivables
Total equity 		x 100 Gearing measures the relation
of equity and interest-bearing
net debt of Verkkokauppa.com
and shows the indebtness of the
company
EARNINGS PER SHARE,
BASIC 		Profit for the period attributable to equity holders of the company
Weighted average number of shares outstanding 		   
EARNINGS PER SHARE, DILUTED Profit for the period attributable to equity holders of the company
Weighted average number of shares outstanding + dilutive potential shares 		   

The Company will publish its financial reports in 2019 in accordance with IFRS according to the schedule of the financial reporting, announced on 4 October 2018.

For more information, please contact:
Panu Porkka
CEO
panu.porkka@verkkokauppa.com
Tel. +358 10 309 5555

Jussi Tallgren
CFO
jussi.tallgren@verkkokauppa.com
Tel. +358 10 309 5555

Certified Adviser
Nordea Bank Abp
puhelinnumero +358 9 5300 6785

Distribution:

Nasdaq Helsinki
Principal media
www.verkkokauppa.com