Kamux Annual Results Presentation 2018 March 1, 2019 CEO Juha - PowerPoint PPT Presentation

Kamux – Annual Results Presentation 2018 March 1, 2019 CEO Juha Kalliokoski CFO Tapio Arimo

Table of Contents Annual Results Presentation 2018 Outlook and Financial Q4 and 2018 in Brief Financial Development Summary Targets

Kamux Vision #1 used car retailer in Europe

Kamux Q4 2018 in Brief 1. 3. 5. Internationalization proceeded strongly Revenue increased to Adjusted operating profit and revenue increased in Sweden by EUR 131.1 increased to EUR 4.3 35.9% to EUR 27.0 million and in million (114.3) million (3.3) Germany by 41.1% to EUR 8.2 million We opened new car showrooms in Gross profit increased Like-for-like showroom Järvenpää, Ahrensburg, by 22.7% to revenue growth was 0.7% (2.4%) Wentorf and Varberg and EUR 16.0 million (13.0) 2. 4. 6. announced several future showrooms in different countries

Kamux’s Market Position Strengthened in Q4 in a Challenging Operating Environment Market Market size Kamux’s Market development during Q4 Kamux’s position and development (2018) market share during Q4 Finland ~0.5 million ~8.0% The Finnish market was Kamux maintained its market cars #1 impacted by power source leader position, and we estimate debate and by the aftermath of we grew clearly faster than the taxation change based on WLTP market emission measurement in new cars. We estimate the market declined slightly. Sweden ~1.2 million ~0.5% The change in vehicle tax mixed Kamux grew strongly and cars Top 10 up the market in Sweden. We strengthened its position among the estimate the market declined ten largest used car dealers clearly. Germany ~7.2 million ~0.0% We estimate the used car Kamux grew its market share cars market declined slightly.

Kamux in Q4 2018 — Profitable Growth Continued Revenue (EUR million) Adjusted Operating Profit (EUR million) 160 7 14.7% 140 6 120 31.3% 5 100 4 80 3 60 2 40 1 20 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2018 2016 2017 2018 Revenue growth in Q4 2018 was on a good level Adjusted operating profit grew strongly in Q4 18 • • considering the market situation

Number of Cars Sold Grew by 9.0% Sold Cars (pcs) 14,000 9.0% 12,564 12,000 11,433 11,379 11,220 11,083 10,294 9,882 9,833 9,698 10,000 9,258 8,676 8,523 8,000 10,328 9,337 9,486 9,066 9,246 8,522 6,000 8,325 8,452 8,255 7,933 7,571 7,419 4,000 2,000 1,620 1,518 1,547 1,448 1,346 1,290 1,123 1,025 1,162 1,107 896 933 218 616 636 491 482 495 499 418 434 219 209 171 0 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 2018 Finland Sweden Germany

Integrated Services Revenue Continued to Grow Integrated Services Revenue MEUR % 6.0% 12 6 5.3% 5.3% 5.1% 5.0% 5.0% 4.8% 4.7% 4.7% 4.7% 4.7% 10 5 4.3% 7.8 8 4 6.8 6.4 6.1 6.1 5.8 6 5.6 3 5.4 5.2 5.0 4.9 4.2 4 2 2 1 0 0 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Finance fees and insurance commissions Sales of Kamux Plus Integrates services % of Revenue Q4 2018 finance fees and insurance commissions • included an additional fee in Finland

Kamux 2018 in Brief – a Year of Strong Growth despite the Market Challenges 1. 3. 5. Internationalization proceeded strongly and Revenue increased Adjusted operating profit revenue increased in Sweden by 39.3% to EUR 16.0% to EUR increased to EUR 21.9 101.9 million and in Germany by 31.8% to EUR 527.8 million (454.9) million (18.6) 30.1 million We opened 8 new car Gross profit increased Like-for-like showroom showrooms in total, 3 in Finland, by 20.5% to revenue growth was 3 in Sweden and 2 in Germany 5.6% (-4.9 %) EUR 64.9 million (53.8) 2. 4. 6.

Kamux in 2018 — Profitable Growth Continued Adjusted Operating Profit (EUR million) Revenue (EUR million) MEUR % 16.0% 550 25 8.0 +17.5% +12.4% 500 7.0 3.4% 450 20 6.0 400 350 5.0 4.4% 15 4.1% 4.1% 300 4.0 250 10 3.0 200 150 2.0 5 100 1.0 50 0 0 0.0 2016 2017 2018 2016 2017 2018 Revenue growth increased in 2018 Adjusted operating profit grew strongly in 2018 • •

Number of Sold Cars Grew by 13.8% Sold Cars (pcs) 13.8% 50 000 46 596 +12.9% 45 000 40 957 40 000 36 290 35 000 30 000 38 217 25 000 34 348 31 375 20 000 15 000 10 000 6 133 5 000 4 784 4 098 2 246 1 825 817 0 2016 2017 2018 Finland Sweden Germany

Integrated Services Revenue Continued to Grow Integrated Services Revenue MEUR % 40 6 5,1% 5,0% 35 4,8% 5 30 27,1 4 25 22,8 19,3 20 3 15 2 10 1 5 0 0 2016 2017 2018 Finance fees and insurance commissions Integrated services % of revenue Sales of Kamux Plus

Financial Development Tapio Arimo CFO

Key Figures 10-12/ 10-12/ 1-12/ 1-12/ (MEUR) Change, % Change, % 2018 2017 2018 2017 Revenue 131.1 114.3 14.7 % 527.8 454.9 16.0 % Gross profit 16.0 13.0 22.7 % 64.9 53.8 20.5 % as percentage of revenue, % 12.2 % 11.4 % 12.3 % 11.8 % Operating profit (EBIT) 3.9 3.3 20.3 % 18.9 16.2 16.5 % as percentage of revenue, % 3.0 % 2.9 % 3.6 % 3.6 % Adjusted operating profit 4.3 3.3 31.3 % 21.9 18.6 17.5 % as percentage of revenue, % 3.3 % 2.9 % 4.1 % 4.1 % Revenue from integrated services 7.8 6.1 28.4 % 27.1 22.8 18.5 % as percentage of revenue, % 6.0 % 5.3 % 5.1 % 5.0 % Sales growth of like-for-like showrooms, % 0.7 % 2.4 % 5.6 % -4.9 % Inventory turnover, days 49.6 46.8 6.0 % Return on equity (ROE), % 22.9 % 26.6 % Return on capital employed (ROI), % 16.2 % 17.2 % Equity ratio, % 60.0 % 57.2 % Earnings per share, basic, EUR 0.08 0.05 70.0% 0.37 0.30 21.9%

Kamux’s Revenue Grew 14.7% in Q4 2018 160 • The number of used cars sold by Kamux in 14.7% 140 the fourth quarter grew by 9.0% and totaled 11,220 cars (10,294). 120 • Kamux’s revenue grew by 14.7% Q4 2018. 100 • The increase in revenue was driven by new 80 showrooms, expansions of existing 60 showrooms and like-for-like revenue growth. 40 • Like-for-like sales growth in Q4 was 0.7% 20 (2.4%). 0 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

Kamux Finland — Stable Growth Revenue (EUR million) 11.6% +13.6% +14.3% +10.8% Revenue grew by 12.6% in 2018 compared to • 120 100 the previous year and was EUR 419.1 million 80 (372.4). 60 40 20 • Gross margin increased to EUR 54.3 million 0 Q1 Q2 Q3 Q4 (46.4) and 13.0% (12.5 %) of revenue. 2016 2017 2018 Operating profit increased to EUR 24.1 million • Operating Profit (EUR million) (23.1) and 5.8% (6.2%) of revenue. 8 6 Like-for-like showroom growth was positive. • 4 2 0 Q1 Q2 Q3 Q4 2016 2017 2018

Kamux Sweden — Very Strong Revenue Growth Continued Revenue (EUR million) 34.5% +35.9% +51.2% Revenue grew by 39.3% in 2018 compared to • +38.0% 30 25 the previous year and was EUR 101.9 million 20 (73.2). 15 10 5 • Operating profit was EUR 0.9 million (-0.1) 0 Q1 Q2 Q3 Q4 and 0.9% (-0.1%) of revenue. 2016 2017 2018 Linköping, Västerås and Varberg showrooms • Operating Profit (EUR million) were opened in 2018. 1.0 0.5 Like-for-like showroom revenue growth was • 0.0 strong. -0.5 -1.0 Q1 Q2 Q3 Q4 2016 2017 2018

Kamux Germany — Revenue Growth Continued Revenue (EUR million) 42.2% +41.1% 10 • Revenue grew by 31.8% compared to the +21.6% +21.2% 8 previous year and was EUR 30.1 million (22.8). 6 4 Operating loss was EUR -1.8 million (-1.9). • 2 0 Q1 Q2 Q3 Q4 • Development of Kamux’s concept and processes 2016 2017 2018 has proceeded well and we opened Ahrensburg Operating Profit (EUR million) and Wentorf showrooms in Q4 in Germany. 0.0 Like-for-like showroom growth was very strong. • -0.2 -0.4 -0.6 -0.8 -1.0 Q1 Q2 Q3 Q4 2016 2017 2018

Net Working Capital and Inventories Grew Net Working Capital (EUR million) Inventories (EUR million) 70 80 28.6% 23.7% 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

Cash Flow from Operations Cash Flow from Operations (EUR million) 10 8 6 4 2 0 -2 -4 -6 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Cash Flow from Operations Special Items Net Working Capital Change Cash Flow from Operations excluding Special Items and Net Working Capital Change

Investments in Growth Continued According to Strategy Investments (EUR million) 1.5 In line with our strategy, we have systematically invested in our future 1.0 0.5 Personnel: recruitment and training • 0.0 Internationalization: the necessary resources • Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 to grow internationally Digital functions: developing the CRM-ERP • Group Functions (EUR million) system, analytics, data management and financial management systems 2.0 1.5 1.0 0.5 0.0 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

Dividend Proposal and Annual General Meeting The Board of Directors will propose to the • AGM a dividend of EUR 0.16 per share (0.12) Earnings per share was EUR 0.37 (0.30) in • 2018 The proposed dividend is 44% (40%) of net • profit The Annual General Meeting will be held on • April 12, 2019 in Helsinki