Strategy for 2020 - 2022

22.5.20201

10.01.2020

Varusteleka’s Values:

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VARUSTELEKA SUPPORTS THE GOOD GUYS

The good guys never stray to the dark side. However, that isn’t

enough - those in the middle are happy as long as more bad doesn’t

happen in this world. Good guys go through the trouble of

ensuring that there is more good in this world.

VARUSTELEKA SUPPORTS THE GOOD GUYS

The good guys never stray to the dark side. However, that isn’t

enough - those in the middle are happy as long as more bad doesn’t

happen in this world. Good guys go through the trouble of

ensuring that there is more good in this world.

Varusteleka’s Vision:

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TOTAL WORLD DOMINATION

We are forerunners

• Continuously develop and try out

new and better ways to serve

our customers around the world

• We will be an international role

model

• We will dare to take risks

We are forerunners

• Continuously develop and try out

new and better ways to serve

our customers around the world

• We will be an international role

model

• We will dare to take risks

We are internationally known

• We will make Varusteleka known

as the best and most unique

shop to get good, durable

clothing and equipment

• Bring prosperity to Finland: Sell

more abroad than what we

import

We are internationally known

• We will make Varusteleka known

as the best and most unique

shop to get good, durable

clothing and equipment

• Bring prosperity to Finland: Sell

more abroad than what we

import

We are a growing and

profitable company

• Take care of business so that the

company has a solid foundation

• We are a company in which

employees may improve upon

their skills, may be proud of their

work, and enjoy being at work

• We will off-set our environmental

impact on a long run

• We are a company that functions

properly as a part of society

We are a growing and

profitable company

• Take care of business so that the

company has a solid foundation

• We are a company in which

employees may improve upon

their skills, may be proud of their

work, and enjoy being at work

• We will off-set our environmental

impact on a long run

• We are a company that functions

properly as a part of society

Varusteleka’s Mission:

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Take tasks head-on

• Be brave and take initiative

• Help the customer,

coworker, or affiliate to

succeed

Take tasks head-on

• Be brave and take initiative

• Help the customer,

coworker, or affiliate to

succeed

Do something you can be

proud of

• Try to always surpass

customers’, coworkers’,

and affiliates’ expectations

• Do things so well that you

want to tell others of your

accomplishments

Do something you can be

proud of

• Try to always surpass

customers’, coworkers’,

and affiliates’ expectations

• Do things so well that you

want to tell others of your

accomplishments

Share knowledge and

experiences

• We will be open about both

good and bad experiences

• Lead by example for our

customers, coworkers, and

affiliates

Share knowledge and

experiences

• We will be open about both

good and bad experiences

• Lead by example for our

customers, coworkers, and

affiliates

Full responsibility

We all have 100% responsibility to work according to our mission, take care of ourselves,

our own work ethics, and our behavior at work

Full responsibility

We all have 100% responsibility to work according to our mission, take care of ourselves,

our own work ethics, and our behavior at work

Strategic themes 2020-2022 Critical battles to win 2020: Impact:

Brand Level-Up!

Make Särmä, Särmä TST Jämä, and Terävä into

internationally-known brands

• Execute ”Brand Level-Up” project from bottom up. Basics in place and brand guidelines in action

• Execute Brand page project. Upgrade of Särmä, Särmä TST, Terävä ja Jämä pages in online store

• Create a plan for brand marketing for years 2020-2022

• Execution of first brand video

Number of

customers +++

Conversion +

Items/order +

America First!

Accelerate attack on the largest and most

important market in military and outdoors

segment

• Opening of the new sales channel: Amazon US

• Improve online store speed in US market: server in US soil

• Re-organize influencer marketing. Acquire new influencers and improve relationship with the existing

ones

Number of

customers +++

Conversion +

Winning Assortment!

Make the best possible assortment for the

customer. Not necessarily the widest, but the best

• Improve category management practices and create development plans for all categories for 2020-2022

• Renew category management toolbox (analytics, processes the works)

• Enhance supplier relationship management

• Improve product life cycle management and de-listing process in order to keep assortment fresh

• Expand warehouse capacity and automation

Conversion +++

Items/order ++

Climate Change. Now!

Reduce the environmental destruction caused by

Varusteleka and promote the circular economy

• Assess environmental impact and compensate 2019 carbon footprint

• Continuous improvement to reduce environmental impact according to Unethicality Program

• Expansion of circular economy model

Conversion +

Order Quantity +

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Strategy 2020-2022 in numbers:Our goal is swift but controlled growth that comes from increased customer numbers, better conversions, and the ability to offer more products per order

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Amount of orders (thousand) Turnover € (thousand)Items / Order

2019

113

109

4762

119

112

269

2020

124

2021

84

117

128

112

122

2022

4%

34%

4%

294

325

36210%

5.077

4.725

5.339

3.722

6.045

2019

5.039

2020

7.0326.584

5.263

6.905

2021

9.306

7.455

2022

22.100

+7%

+4%

+36%

14.493

16.700

19.200

+15%

Varusteleka.fi Varusteleka.com Store

CAGR

2019-2022

CAGR

2019-2022

CAGR

2019-2022

4,45 4,56 4,68 4,78

2019 20222020 2021

+2%

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Impacting Trends

Technology changes

everything

Scarce resources and

climate change

Informative and ethical

consumption

Well-being and

importance of free time

Global liberalism and

security policies

Death of traditional

marketing - content sells

Values:

VARUSTELEKA SUPPORTS

THE GOOD GUYS

Mission:

Take tasks head-on Do something you

can be proud of

Share knowledge

and experiences

Full responsibility

Vision:

TOTAL WORLD DOMINATIONWe are forerunners We are internationally

known

We are a growing and

profitable company

Strategy for achieving Total World Domination in

2020-2022:

Brand Level-Up!Make Särmä, Särmä TST Jämä, and Terävä into internationally-known brands

America First!Accelerate attack on the largest and most important market in military and outdoors

segment

Winning Assortment!Make the best possible assortment for the customer. Not necessarily the widest, but

the best

Climate Change. Now!Reduce the environmental destruction caused by Varusteleka and promote the circular

economy