INTERIM REPORT January June 2016 HISTORY TRADITION AND TECHNOLOGY - - PowerPoint PPT Presentation

INTERIM REPORT

January – June 2016

HISTORY

TRADITION AND TECHNOLOGY

Lauritz Christensen Auktioner was established in 1885. Bengt Sundström bought the company in 1998 and on 9 December 1999 launched www.lauritz.com as a bold pioneer within the world of

• nline auctions. His aspiration was and is

to revolutionize the auction business.

MISSION

QUALITY AUCTIONS ONLINE

Lauritz.com offers all the best attributes from traditional auctions of art, design, antiques and home luxury - online.

VISION

AUCTIONS TO THE PEOPLE

Lauritz.com would like to inspire everyone to sell and buy at auction in all countries where there is an IKEA.

A major growth driver is to establish new auction houses. New auction houses signed for in Q2

• Karlstad-HammaröAuktionsverk, online auctions
• New partner in Denmark
• Copenhagen, Rovsingsgade

– Conditional sales-lease back agreement, new HQ and branch Stockholms Auktionsverk (SAV) opens in Globen from February

• Consignment to both Lauritz.com and SAV in same branch
• +35% growth after co-branding
• Considering same concept in other Lauritz.com houses in Sweden

Lauritz.com opens in Spain

• Partner in Spain from next year (signed in July)

GEOGRAPHICAL EXPANSION

Digital catalogue

• Launched at Stockholms Auktionsverk
• Replacing physical catalogue
• Cutting costs of DKK 4m in 2016

Development of decentral management

• 27 branch managers (primarily partners)
• Alligning managent skills among local branch managers
• Maturing sales management skills to secure growth
• Lauritz.com University new training introduced

OTHER MAJOR ACTIVITIES

• Increased earnings on turnover on auction
• EBITDA + by 7 %
• Adjusted EBITDA +22 %

– New commission structure – Cost optimization – Digitalizing catalogues

• EBT +DKK19.9m from -15,4m to 4.5m

– Unrealized exchange rate gain DKK 9.5m

ADJUSTED EBITDA, EBITDA & EBT

• Turnover on auctions 2015

DKK 1,084m

• First half-year DKK 521m
• Turnover on auctions -11,6 %
• The last 12 month - 6,3 %

TURNOVER ON AUCTION

TURNOVER ON AUCTION DEVELOPMENT(1. HY)

• Used items online are stable
• Physical auctions

– DKK 33m (-32%) – Fine art Stockholms Auktionsverk – Strategic shut down of Stadsauktioner HAV

• QXL

– DKK 18m (-41%) – Higher quality, new commisions structure

• Brand new items

– DKK 9m (-14%) – From producers, shops – New evaluation principle

• Increased by DKK 0,1m first half year 2016 compared to first-half year 2015
• Fluctuates depending on mix between owned and partner-driven auction

houses1

• One-to-one, revenue has increase by 3.6 % despite turnover decrease of 11.6 %

proving the increased revenue margin from turnover on auctions

REVENUE

1) In Q2 2015 two additional auction houses were owned by Lauritz.com while these two in Q2 2016 are partner-driven. Owned auctionhouses include all revenue from commissions and fees but also the costs related to running the auction house while partner-driven aiction houses include a part of the commissions and fees as revenue however with no costs to run the auction house.

DEPRECIATION, DKKM (1. HY)

• Primarily an increase in

depreciation on developed software with two larger project implemented second half 2015

FINANCIAL INCOME / EXPENSES, DKKM (1. HY)

• Net financials expenses decreased by

DKK 20.3m. Development is primarily due to fluctuations in exchange rate DKK/SEK as bond debt is in SEK while reporting currency is DKK

• Exchange rate DKK/SEK

30 Jun 2016 = 78.94 31 Dec 2015 = 81.22 30 Jun 2015 = 80.96

• Interest rate in 2015 and 2016 = 7,5%

• Cash position as of 30 June is DKK

148.7m

• Cash flow from operating activities is

DKK 4.8m in Q2 YTD 2016 versus DKK -14.0m in Q2 YTD 2015 which mainly is due to a deferred payment related to the acquisition of Karlstad- Hammarö Auktionsverk per Q2 2016 and seasonality change in amounts due to sellers.

• Cash flow from financing activities is

DKK 146.0m in Q2 YTD 2016 versus DKK 1.9m in Q2 YTD 2015. The increase is primarily due to the capital increase in connection with the IPO of Lauritz.com Group A/S 22 June 2016 and the full repayment of the receivable from the parent company.

CASH FLOW 1. HY 2016 VS 1. HY 2015, DKKM

EQUITY, DKKM

• The capital increase from IPO

improves Equity ratio from 2.8% to 11.8% and an even further subsequent strong improvement in July 2016 happened with the partial repayment of bond debt in the amount of DKK 82m

LIABILITIES, DKKM

• Bond debt has decreased by

DKK 13.9m.

• Subsequent a decrease of

further DKK 82m in bond debt has happened in July 2016