Kamux Quarterly Results Presentation January March 2020 May 15, - - PowerPoint PPT Presentation

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Kamux Quarterly Results Presentation January March 2020 May 15, - - PowerPoint PPT Presentation

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Kamux Quarterly Results Presentation January March 2020 May 15, 2020 CEO Juha Kalliokoski Group Controller Milla Krpnen Table of Contents Interim Report Presentation Q1 2020 Outlook and Financial Q1 in Brief Financial Development

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Kamux — Quarterly Results Presentation January―March 2020

May 15, 2020 CEO Juha Kalliokoski Group Controller Milla Kärpänen

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Table of Contents Interim Report Presentation Q1 2020

Q1 in Brief Financial Development Outlook and Financial Targets Summary

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Kamux Vision

#1 used car retailer

in Europe

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Kamux Q1 2020 in Brief

Revenue increased by

17.0% to EUR 167.4

million (143.0) Gross profit increased by 10.0% to EUR 18.3 million (16.6) Adjusted operating profit declined by -15.2 % to EUR 4.0 million (4.7) We opened a new car showroom in Niittykumpu in Espoo Internationalization proceeded strongly. Total revenue increased in Sweden by

34.1% to EUR 44.8 million

and in Germany by

41.3% to EUR 15.2 million

Like-for-like showroom revenue growth was

1.0% (-4.4 %)

1. 2. 3. 4.

5.

6.

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Kamux Grew Faster than the Market during Q1

Market Market size (2019) Kamux’s market share Market development during Q1 Kamux’s position and development during Q1 Finland ~0.5 million cars ~8.0% #1 We estimate that the used car market increased compared to the previous year. Kamux maintained its market leader position. Sweden ~1.2 million cars ~0.5% Top 10 We estimate that the used car market increased compared to the previous year. Kamux’s position is among the ten largest used car dealers. Germany ~7.2 million cars ~0.0% We estimate that the used car market declined from the previous year. Kamux grew its market share.

  • The corona pandemic and

measures related to it affected people’s mobility, behaviour and purchase power.

  • New passenger car

registrations in European Union declined by -25.6% (Q1).

  • In used car sales, the volume

effects varied by operator.

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The Used Car Market is Large and Fragmented

Finland, Sweden and Germany: EUR 100 BILLION

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  • Ensuring the safety of customers in showrooms
  • Ensuring the health of employees with work arrangements, open communication
  • Contingency plans for different scenarios, taking into account the spread of the

pandemic and possible restrictions related to it in different markets

  • Balancing supply and demand by managing closely purchases and managing supply

chain

  • Efficiency of digital services
  • Adjustments of marketing, customer relationship communication
  • Cutting costs
  • Re-evaluating and postponing development projects
  • Securing cash reserves and ensuring a good financial position
  • No lay-offs, special lockdown arrangements in Germany

Key measures during corona pandemic

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SLIDE 8

The Role of Digital was Highlighted in Q1/2020

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Kamux Q1 2020 — Strong Revenue Growth 17.0%

  • The growth was based on the sales of new

showrooms, Autosilta acquisition and like-for-like showrooms.

  • Adjusted operating profit (EBIT) Q1 2020 decreased

by -15.2 % and it was EUR 4.0 million (4.7).

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

20 40 60 80 100 120 140 160 180 200 Q4 Q1 Q2 Q3 +17,0% 2017 2018 2019 2020 1 2 3 4 5 6 7 8 9 Q1 Q2 Q3 Q4

  • 15,2%

2018 2017 2020 2019

  • The gross profit and operating profit was impacted

by an exceptionally large write-down of inventory related to market situation caused by corona pandemic, profit impact of EUR 1.6 million.

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Number of Cars Sold Grew by 16.7% during Q1 2020

Sold Cars (pcs)

616 636 746 833 1 064 1 122 1 054 1 123 1 346 1 290 1 547 1 448 1 620 1 518 1 753 1 993 2 132 2 385 2 236 8 325 9 246 8 522 9 337 9 486 10 328 9 066 9 688 10 615 12 213 10 888 10 937 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 11 433 Q3 19 Q2 19 13 441 15 409 11 379 434 Q2 17 14 395 499 495 11 083 482 Q4 17 10 294 Q1 18 Q2 18 Q1 20 Q3 18 491 Q1 19 Q4 19 12 187 Q3 17 9 882 14 227 12 564 11 220 Q4 18 +16,7% Finland Sweden Germany

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Integrated Services Revenue Grew Q1 2020

Integrated Services Revenue

6 4 2 4 2 8 5 6 1 10 3 12 5,4% Q3 19 Q3 17 5,3% 7,9 5,0% MEUR Q3 18 % 5,1% Q1 18 Q2 17 8,6 4,7% 5,3% 6,4 Q4 19 4,7% Q4 17 4,7% 5,0% Q2 18 9,4 5,8 6,0% Q4 18 Q1 19 6,1 5,0% Q2 19 4,8% 5,6 6,1 6,8 7,8 7,1 8,9 Q1 20 Kamux Plus Finance fees and insurance commissions Integrated services % of Revenue

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Showrooms on May 15, 2020

2020 FINLAND SWEDEN GERMANY OPENINGS 2020

Q1 Espoo Niittykumpu 1 Openings by country after the reporting period Tornio Stockholm Kaltenkirchen 3 Showrooms totally, 15 May 2020 50 18 7 75

Openings published

Göteborg >> Sundsvall Värmdö Lübeck 3

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Financial Development

Milla Kärpänen, Group Controller

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Financial position and cash reserves in the exceptional operating environment

  • Improved cost and inventory management
  • In March, the five-year credit facility

agreement of EUR 40 million was renewed

  • EUR 10.0 million of RCF in use in March
  • Despite RCF

, the equity ratio remained strong and was 44.9%

  • Return on equity improved compared to

the previous year and it was 23.6 %

  • The first instalment of the dividend EUR

0.12 was paid on 30 April 2020

Several measures to secure result and cash reserves

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SLIDE 15

Key Figures

(MEUR) 1−3/ 2020 1−3/ 2019 Change, % 1−12/ 2019 Revenue 167.4 143.0 17.0 % 658.5 Gross profit 18.3 16.6 10.0 % 79.6 as percentage of revenue, % 10.9 % 11.6 % 12.1% Operating profit (EBIT) 4.0 4.6

  • 14.7 %

25.3 as percentage of revenue, % 2.4 % 3.2 % 3.8% Adjusted operating profit 4.0 4.7

  • 15.2 %

25.4 as percentage of revenue, % 2.4 % 3.3 % 3.9% Revenue from integrated services 8.9 7.1 25.8 % 32.9 as percentage of revenue, % 5.3 % 5.0 % 5.0% Sales growth of like-for-like showrooms, % 1.0 %

  • 4.4 %

6.3% Inventory turnover, days 44.8 48.6

  • 7.8 %

44.5 Return on equity (ROE), % 23.6 % 22.0 % 25.3% Return on capital employed (ROI), % 13.2 % 12.9 % 16.7% Equity ratio, % 44.9 % 45.6 % 45.1%

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Strong Revenue Growth Q1 2020

  • The number of used cars sold by Kamux in

the first quarter grew by 16.7% and totaled 14,227 cars (12,187).

  • Kamux’s revenue grew by 17.0% in Q1

2020.

  • The increase in revenue was driven by

new showrooms, business acquisition and like-for-like showrooms.

  • Like-for-like sales growth in Q1 was 1.0%

(-4.4%).

Revenue (EUR million)

20 40 60 80 100 120 140 160 180 200 Q1 18 Q4 17 Q2 17 Q3 17 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 +17,0%

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Kamux Finland — Strong Revenue Growth in Q1 2020

  • Revenue grew by 12.5% compared to the previous year

and was EUR 121.9 million (108.3).

  • Gross margin increased to EUR 14.5 million (13.5). or

11.9 % (12.5%) of revenue.

  • Operating profit declined by -1.7% compared to

previous year and was EUR 5.8 million (5.9), or 4.8% (5.5) of revenue.

  • Integrated services revenue increased to EUR 7.7

million (6.3), or 6.3% (5.8) of revenue.

  • Like-for-like showroom sales remained at previous

year’s level.

  • The showroom in Niittykumpu in Espoo was opened.

Revenue (EUR million) Operating Profit (EUR million)

20 40 60 80 100 120 140 Q1 Q2 Q3 Q4 +12,5% 2020 2018 2017 2019 2 4 6 8 10 Q3 Q2 Q1 Q4

  • 1,7%

2017 2020 2018 2019

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Kamux Sweden — Very Strong Revenue Growth Continued Q1 2020

  • Total revenue grew 34.1% compared to the previous

year and was EUR 44.8 million (33.4).

  • Operating profit decreased compared to the previous

year and was EUR 0.1 million (0.2) and 0.3% (0.7) of total revenue.

  • Revenue of the integrated services increased to EUR

0.8 million (0.6), or 2.6% (2.4) of external revenue.

  • Like-for-like showroom sales remained at previous

year’s level. Revenue (EUR million) Operating Profit (EUR million)

10 20 30 40 50 Q1 Q2 Q3 Q4 +34,1% 2017 2018 2020 2019

  • 1,0
  • 0,5

0,0 0,5 1,0 Q4 Q2 Q3 Q1

  • 36,3%

2017 2018 2019 2020

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Kamux Germany — Very Strong Revenue Growth Continued Q1 2020

  • Total revenue grew by 41.3% compared to the

previous year and was EUR 15.2 million (10.8).

  • Operating loss increased compared to the

previous year and was EUR -0.7 million (-0.4), or

  • 4.9 % (-3.9) of total revenue.
  • Integrated services revenue increased to EUR 0.4

million (0.2), or 2.9% (2.4) of external revenue.

  • Like-for-like showroom sales increased.

Revenue (EUR million) Operating Income (EUR million)

0,0 2,5 5,0 7,5 10,0 12,5 15,0 17,5 Q1 Q2 Q3 Q4 +41,3% 2017 2018 2019 2020

  • 1,0
  • 0,8
  • 0,6
  • 0,4
  • 0,2

0,0 Q3 Q2 Q1 Q4 2017 2019 2018 2020

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Net Working Capital Decreased and Inventories Increased with the Number of Stores

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

10 20 30 40 50 60 70 80 Q4 19 Q1 17 Q1 18 Q2 17 Q3 17 Q4 17 Q1 20 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19

  • 2,8%

10 20 30 40 50 60 70 80 Q4 19 Q2 18 Q1 17 Q2 17 Q3 17 Q1 20 Q4 17 Q1 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 +10,3%

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Cash Flow from Operations Decreased

Cash Flow from Operations (EUR million) Change (EUR million) to Comparison Period

  • 6
  • 4
  • 2

2 4 6 8 10 12 14 16 18 20 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20

2

  • 4
  • 2

2 4 6 8 10 12 14 16 18 20 Cash Flow from Operations Q1 2019 Changes in working capital Adjustments 1 6 Financial items and taxes Cash flow from

  • perations Q1

2020 1

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Investments in Knowledge Management Continued

  • In line with our strategy, we have systematically

invested in growth.

  • Kamux seeks to gain a significant competitive

advantage by investing in leading with knowledge as well as digital customer and business processes.

  • Investments were directed as follows:
  • Digital functions: developing the CRM-ERP

system, analytics, data management and financial management systems

  • Autosilta acquisition
  • Personnel: recruitment and training
  • Internationalization: investments in

international growth

Investments (EUR million) Group Functions (EUR million)

0,0 0,5 1,0 1,5 Q1 18 Q2 17 Q4 17 Q1 17 Q2 18 Q3 17 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 0,0 0,5 1,0 1,5 2,0 Q4 19 Q4 18 Q1 17 Q2 17 Q4 17 Q3 19 Q3 17 Q1 18 Q2 18 Q3 18 Q1 19 Q2 19 Q1 20

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Outlook and Financial Targets

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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 The global corona pandemic and the restrictions and regulations related to it have caused significant changes to Kamux’s operating environment, leading to the company publishing a stock exchange release on March 20, 2020, informing that it is not likely that Kamux will reach its medium-term targets in 2020. No changes have been made to the medium-term targets set by the Board of Directors because of the situation.

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Dividend Development

  • The AGM approved Board of Directors’ proposal

for a dividend of EUR 0.23 per share payable in two instalments in April (EUR 0.12) and in October

  • The AGM authorized the Board of Directors to

decide on the payment or the cancellation of the payment of the second dividend instalment

  • In connection with the decision making of the payment
  • f the second dividend instalment, the Board shall

evaluate among others the impacts of the corona pandemic on the Company’s solvency, cash flow and the development of the capital adequacy.

  • Dividend was 48% of the net profit (44%)

Paid dividends (EUR millions)

1 2 3 4 5 6 7 8 9 10 2020 2016 2017 2018 2019 2020 1. erä 2020 2. erä +43,4%

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SLIDE 26

Summary

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Summary Q1/2020

Revenue increased by

17.0 %

to EUR 167.4 million (143.0) Gross profit increased by 10.0 % to EUR 18.3 million (16.6) Adjusted operating profit declined by -15.2 % to EUR 4.0 million (4.7) Very strong international growth continued

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Questions?

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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.