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

Q4 and 2018 in Brief Financial Development Outlook and Financial Targets Summary

Kamux Vision

#1 used car retailer

in Europe

Kamux Q4 2018 in Brief

Revenue increased to EUR 131.1 million (114.3) Gross profit increased by 22.7% to EUR 16.0 million (13.0) Adjusted operating profit increased to EUR 4.3 million (3.3) We opened new car showrooms in

Järvenpää, Ahrensburg, Wentorf and Varberg and

announced several future showrooms in different countries Internationalization proceeded strongly and revenue increased in Sweden by

35.9% to EUR 27.0 million and in

Germany by 41.1% to EUR 8.2 million Like-for-like showroom revenue growth was

0.7% (2.4%)

1. 2. 3. 4.

5.

6.

Kamux’s Market Position Strengthened in Q4 in a Challenging Operating Environment

Market Market size (2018) Kamux’s market share Market development during Q4 Kamux’s position and development during Q4 Finland ~0.5 million cars ~8.0% #1 The Finnish market was impacted by power source debate and by the aftermath of taxation change based on WLTP emission measurement in new

• cars. We estimate the market

declined slightly. Kamux maintained its market leader position, and we estimate we grew clearly faster than the market Sweden ~1.2 million cars ~0.5% Top 10 The change in vehicle tax mixed up the market in Sweden. We estimate the market declined clearly. Kamux grew strongly and strengthened its position among the ten largest used car dealers Germany ~7.2 million cars ~0.0% We estimate the used car market declined slightly. Kamux grew its market share

Kamux in Q4 2018 — Profitable Growth Continued

• Revenue growth in Q4 2018 was on a good level

considering the market situation

• Adjusted operating profit grew strongly in Q4 18

20 40 60 80 100 120 140 160 Q3 Q1 Q2 Q4 14.7% 2016 2017 2018 1 2 3 4 5 6 7 Q3 Q1 Q2 Q4 31.3% 2016 2017 2018

Revenue (EUR million) Adjusted Operating Profit (EUR million)

Number of Cars Sold Grew by 9.0%

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

Sold Cars (pcs)

Integrated Services Revenue Continued to Grow

8 6 12 2 2 4 3 6 10 4 5 1 MEUR Q1 18 5.1% 6.1 Q3 18 7.8 4.9 5.0% % 4.8% 4.3% Q1 16 4.7% Q2 16 4.7% Q3 16 6.0% 5.3% Q2 17 Q4 16 5.4 Q1 17 4.7% 4.2 5.3% Q4 17 4.7% 5.0% Q2 18 5.0 Q3 17 5.6 5.8 6.1 6.4 6.8 Q4 18 5.2 Finance fees and insurance commissions Sales of Kamux Plus Integrates services % of Revenue

Integrated Services 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

Revenue increased

16.0% to EUR 527.8 million (454.9)

Gross profit increased by 20.5% to EUR 64.9 million (53.8) Adjusted operating profit increased to EUR 21.9 million (18.6) We opened 8 new car showrooms in total, 3 in Finland, 3 in Sweden and 2 in Germany Internationalization proceeded strongly and revenue increased in Sweden by 39.3% to EUR 101.9 million and in Germany by 31.8% to EUR 30.1 million Like-for-like showroom revenue growth was

5.6% (-4.9 %)

1. 2. 3. 4.

5.

6.

Kamux in 2018 — Profitable Growth Continued

• Adjusted operating profit grew strongly in 2018

550 300 100 50 150 200 350 250 400 450 500 2016 2017 2018 +12.4% 16.0% 5 10 7.0 6.0 1.0 3.0 15 4.0 20 5.0 25 8.0 2.0 0.0 2018 MEUR 2017 % 4.4% 2016 4.1% 4.1% 3.4% +17.5%

Revenue (EUR million) Adjusted Operating Profit (EUR million)

• Revenue growth increased in 2018

Number of Sold Cars Grew by 13.8%

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

Sold Cars (pcs)

Integrated Services Revenue Continued to Grow

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

Integrated Services Revenue

Financial Development

Tapio Arimo CFO

Key Figures

(MEUR) 10-12/ 2018 10-12/ 2017 Change, % 1-12/ 2018 1-12/ 2017 Change, % 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

• The number of used cars sold by Kamux in

the fourth quarter grew by 9.0% and totaled 11,220 cars (10,294).

• Kamux’s revenue grew by 14.7% Q4 2018.
• The increase in revenue was driven by new

showrooms, expansions of existing showrooms and like-for-like revenue growth.

• Like-for-like sales growth in Q4 was 0.7%

(2.4%).

20 40 60 80 100 120 140 160 Q3 17 Q2 16 Q1 17 Q1 16 Q3 16 Q4 16 Q2 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 14.7%

Kamux Finland — Stable Growth

• Revenue grew by 12.6% in 2018 compared to

the previous year and was EUR 419.1 million (372.4).

• Gross margin increased to EUR 54.3 million

(46.4) and 13.0% (12.5 %) of revenue.

• Operating profit increased to EUR 24.1 million

(23.1) and 5.8% (6.2%) of revenue.

• Like-for-like showroom growth was positive.

20 40 60 80 100 120 Q1 Q3 Q2 Q4 +13.6% +14.3% 11.6% +10.8% 2016 2017 2018

Revenue (EUR million)

2 4 6 8 Q4 Q1 Q2 Q3 2017 2016 2018

Operating Profit (EUR million)

Kamux Sweden — Very Strong Revenue Growth Continued

• Revenue grew by 39.3% in 2018 compared to

the previous year and was EUR 101.9 million (73.2).

• Operating profit was EUR 0.9 million (-0.1)

and 0.9% (-0.1%) of revenue.

• Linköping, Västerås and Varberg showrooms

were opened in 2018.

• Like-for-like showroom revenue growth was

strong.

5 10 15 20 25 30 Q2 Q1 Q3 Q4 +51.2% +38.0% 34.5% +35.9% 2016 2017 2018

Revenue (EUR million)

0.0

• 1.0
• 0.5

0.5 1.0 Q3 Q2 Q1 Q4 2016 2017 2018

Operating Profit (EUR million)

Kamux Germany — Revenue Growth Continued

• Revenue grew by 31.8% compared to the

previous year and was EUR 30.1 million (22.8).

• Operating loss was EUR -1.8 million (-1.9).
• Development of Kamux’s concept and processes

has proceeded well and we opened Ahrensburg and Wentorf showrooms in Q4 in Germany.

• Like-for-like showroom growth was very strong.

2 4 6 8 10 Q2 Q3 Q4 Q1 +21.2% +21.6% 42.2% +41.1% 2016 2018 2017

Revenue (EUR million)

• 0.8
• 0.6

0.0

• 0.4
• 1.0
• 0.2

Q3 Q1 Q2 Q4 2016 2017 2018

Operating Profit (EUR million)

Net Working Capital and Inventories Grew

10 20 30 40 50 60 70 Q4 17 Q1 17 Q2 16 Q4 16 Q1 16 Q3 16 Q1 18 Q2 17 Q3 17 Q2 18 Q3 18 Q4 18 23.7%

Net Working Capital (EUR million) Inventories (EUR million)

10 20 30 40 50 60 70 80 Q2 17 Q1 16 Q2 16 Q3 17 Q3 16 Q4 16 Q1 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 28.6%

Cash Flow from Operations

• 6
• 4
• 2

2 4 6 8 10 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q3 18 Q2 18 Q4 18

Cash Flow from Operations (EUR million)

Cash Flow from Operations Cash Flow from Operations excluding Special Items and Net Working Capital Change Special Items Net Working Capital Change

Investments in Growth Continued According to Strategy

In line with our strategy, we have systematically invested in our future

• Personnel: recruitment and training
• Internationalization: the necessary resources

to grow internationally

• Digital functions: developing the CRM-ERP

system, analytics, data management and financial management systems

0.0 0.5 1.0 1.5 Q3 16 Q2 16 Q4 16 Q2 18 Q1 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q3 18 Q4 18

Investments (EUR million)

1.5 0.0 0.5 1.0 2.0 Q3 17 Q1 16 Q2 16 Q4 16 Q3 16 Q1 17 Q2 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

Group Functions (EUR million)

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

Outlook and Financial Targets

Outlook and Financial Targets

Kamux does not publish a short-term

• utlook

Revenue growth of

• ver 10 % annually

2019-2022 EBIT margin of at least 4 % in 2019-2022 Distribute dividends of at least 30% of net profits

Revenue Profitability Dividend Policy

€ €

€

Outlook

Summary

Summary 2018

Revenue grew to EUR 527.8 million (454.9) Profitability improved – adjusted operating profit EUR 21.9 million (18.6) Like-for-like showroom revenue growth 5.6 % (-4.9) Internationalization continued very strong – Sweden achieved clearly positive EBIT

Questions?

Disclaimer

It should be noted that Kamux and its business are exposed to various risks and uncertainties, and certain statements herein which are not historical facts, including without limitation, those regarding expectations for market growth and developments; expectations for growth and profitability; and statements preceded by “believes”, “expects”, “anticipates”, “foresees”, or similar expressions, are forward-looking statements. Since these statements are based on current plans, estimates and projections, they involve risks and uncertainties that may cause actual results to materially differ from those expressed in such forward-looking

• statements. All statements are based on the

management’s best assumptions and beliefs in light of the information currently available to it and Kamux assumes no obligation to publicly update or revise any forward-looking statement except to the extent legally required.