Mekonomen Group January - December 2015 17 February 2016 - PowerPoint PPT Presentation

Mekonomen Group January - December 2015 17 February 2016

Financial performance God tillväxt Resultatet påverkat av betydande negativa valutaeffekter Flertal initiativ på gång för att säkra tillväxten 2

Fourth quarter 2015 EBIT: Revenue: SEK 109 M (145) SEK 1 447 M (1 373) EBIT margin: EBITA: 8 per cent (11) SEK 138 M (184) Revenue rose EBITA margin: 5 per cent 10 Per cent (13) Sales in comparable units +5 per cent 3

January - December 2015 EBIT: Revenue : SEK 616 M (639) SEK 5 761 M (5 390) EBIT margin: EBITA: 11 per cent (12) SEK 726 M (763) Revenue rose EBITA margin: 7 per cent 13 per cent (14) Sales in comparable units Proposed dividend +5 per cent SEK 7 per share 4

EBIT development 2015 5

The Norwegian krone has weakened Ska uppdateras A weakening of SEK / NOK exchange rate by one percentage point, other things being equal, gives a negative impact of SEK 8 M at Mekonomen Group's full-year profit after tax (based on the 2014 financial year). Measures to compensate the Source: Riksbanken impact on gross margin has been taken with effect from the fourth quarter 2015. (Swedish Central Bank) Exchange rate effects (translation effects) remain. 6

Group companies 7

MECA – fourth quarter 2015   The sales development of ProMeister EBIT: contributed to increased volumes SEK 49 M (57)*  Opus Equipment has contributed with  EBIT margin: SEK 36 M to the revenue and SEK 1 M 10 per cent (13) on EBIT  Underlying net sales:  Denmark has weighted down the result +15 per cent, affected by by SEK -11 M. Sales for the Danish Opus Equipment and Denmark export business was SEK 20 M  Strong sales increase for affiliated MECA Car Service workshops * Acquisition-related items attributable to Mekonomen AB’s direct acquisition of MECA have been reallocated from the MECA segment to “Other” . Comparative figures have been recalculated. 8

MECA January - December 2015   The sales development of ProMeister EBIT: contributed to increased volumes 245 MSEK (243)*  The cost reduction program  MECA excluding Denmark has implemented in 2014 has had a generated the best EBIT ever positive effect on earnings  EBIT margin:  Significant marketing and sales efforts 13 per cent (14) in the Danish export business has affected the operating profit by  Underlying net sales: SEK -31 M. Sales for the Danish export business was SEK 54 M, a +13 per cent, affected by Opus level which still is too low Equipment and Denmark   Weaker NOK exchange rate has Strong sales increase for affiliated negatively affected profit MECA Car Service workshops * Acquisition-related items attributable to Mekonomen AB’s direct acquisition of MECA have been reallocated from the MECA segment to “Other” . Comparative figures have been recalculated. 9

Mekonomen Nordic – fourth quarter 2015  Mekonomen Sweden EBIT: SEK 72 M (93) – EBIT: SEK 51 M ( 67 )  EBIT margin: 10 per cent (13) – EBIT margin: 10 per cent ( 14 )  Underlying net sales: – Quality assurance implemented earlier +4 per cent this year have led to a lower number of affiliated workshops with effect on sales to the customer group  ProMeister sales and new sales organisation contributed to increased Mekonomen Norway volumes in the segment other workshops – EBIT:  SEK 34 M (32) EBIT was negatively impacted by non- recurring costs mainly in Sweden of – EBIT margin: SEK 18 M (0) due to restructuring, 17 per cent (15) implementation of sales organisation, provisions for returns and inventory – Strong sales development to affiliated impairments workshops 10

Structural changes in Mekonomen Sweden New sales and customer-oriented organisation, recruitment and introduction of local district managers Establishment of new field sales force New store computer system rolled out in 15 stores by the end of 2015 Closure costs regarding two stores and one workshop 11

Mekonomen Nordic January - December 2015  EBIT: Mekonomen Sweden SEK 393 M (401) – EBIT:  EBIT margin: SEK 259 M ( 274 ) 13 per cent (14) – EBIT margin: 13 per cent ( 15 )  Underlying net sales: +5 per cent Mekonomen Norway  ProMeister sales contributed to increased volumes in the segment – EBIT: other workshops SEK 152 M (133)  Significant marketing investments – EBIT margin: 18 per cent (16)  Weaker NOK exchange rate has negatively affected profit 12

Sørensen og Balchen – fourth quarter 2015   EBIT: Positive sales development SEK 26 M (22)* to affiliated BilXtra workshops  EBIT margin:  Weaker sales to consumers 16 per cent (12)  Underlying net sales: -4 per cent * Acquisition-related items attributable to Mekonomen AB’s direct acquisition of Sørensen og Balchen have been reallocated from the Sørensen og Balchen segment to “Other” . Comparative figures have been recalculated. 13

Sørensen og Balchen January - December 2015  Weaker NOK exchange rate has  EBIT: negatively affected profit SEK 116 M (109)*  Favourable sales development to  Sørensen og Balchen has affiliated BilXtra workshops generated the best EBIT ever  EBIT margin: 16 per cent (15)  Underlying net sales: +6 per cent * Acquisition-related items attributable to Mekonomen AB’s direct acquisition of Sørensen og Balchen have been reallocated from the Sørensen og Balchen segment to “Other” . Comparative figures have been recalculated. 14

Market and growth 15

Market trend The Nordic spare parts market had a stable development in 2015 The new car sales in Sweden is at a historically high level with potential for more older cars in the car-fleet in the long term Potential for a slightly stronger market in 2016 16

Growth by customer group for the fourth quarter 2015 – Strong sales growth to workshop customers Affiliated workshops Other workshops Consumers Local currency Local currency Local currency +10% +11% +2% Nominal outcome Nominal outcome Nominal outcome +6% +7% -1% 17

Growth by customer group for January - December 2015 – strong growth in all customer groups Affiliated workshops Other workshops Consumers Local currency Local currency Local currency +11% +9% +5% Nominal outcome Nominal outcome Nominal outcome +9% +7% +4% 18

Distribution, customer groups 19

Stores 450 400 89 86 350 87 87 87 86 85 300 77 78 74 250 71 71 71 70 70 200 150 Ska uppdateras 257 254 238 230 220 206 196 192 192 100 189 187 50 0 2008 2009 2010 2011 2012 2013 2014 Q1 Q2 Q3 Q4 2015 2015 2015 2015 Mekonomen BilXtra MECA Egna Own 20

Workshops 2 600 2 400 2 200 546 570 628 2 000 626 638 657 676 1 800 225 243 1 600 219 232 233 236 1 400 244 426 246 378 420 355 338 1 200 363 298 274 296 261 1 000 199 800 1094 1097 1075 600 1033 1037 987 973 946 923 910 852 400 200 0 2008 2009 2010 2011 2012 2013 2014 Q1 Q2 Q3 Q4 2015 2015 2015 2015 Mekonomen MekoPartner BilXtra Speedy MECA Car Service Reduced number of Mekonomen workshops as an effect of the quality assurance which has been implemented as well as of fewer workshops in Denmark. Slightly increase in Speedy. Good development in MECA Car Service. 21

ProMeister ProMeister share of spare parts sale 16,0% 14,0% 13,5% 14,0% 13,4% 12,7% 12,8% 11,6% 11,7% 12,2% 12,5% 11,8% 12,0% 10,4% 10,0% 8,6% 8,4% 7,4% 8,0% 7,2% 6,6% 6,0% 4,0% 2,0% 0,0% 22

Focus 23

Focus Growth and innovation Continued focus on ProMeister, ProMeister Academy - Products och training Strategic projects – E-commerce platform for B2B and B2C, PIM (launched January 2016) Group-wide functions - Purchasing, category, supply chain and IT Continued quality assurance of workshops and concepts 24

Own secondary school for mechanics Start of own secondary school in the autumn 2017 in Stockholm and Lund Increase quality of the education, for example by including apprenticeship We demand 500 mechanics in the coming years. The school is one of Mekonomen Groups own channels to secure future competence 25

Synergies Logistics Logistics structure in addition to stores Current situation: Central warehouses in Eskilstuna and Strängnäs. Region warehouses in Gjovik, Oslo, Odense, Luleå and Helsinki New Supply Chain Director from 1 March with responsibility for streamlining the logistics structure 26

Quality and training in 2015 All workshops within MECA and Mekonomen affiliated to SFVF Introduction of management systems for monitoring quality and fast implementation of new laws and regulations Quality assurance of mechanics through ProMeister Academy 27

Customers as our ambassadors Would you recommend this workshop to others? Mekonomen MECA 100 100 95,61 % 94,97 % 80 80 60 60 40 40 20 20 5,03 % 4,39 % 0 0 Yes No Yes No 28

Capital Markets Day on March 14, 2016  March 14 2016, 08.30 – 13.00 CET  MECA Rosersberg - Norrsundavägen 202-204,192 72 Rosersberg Please register by e-mail to kapitalmarknadsdag@mekonomen.se no later than March 4, 2016. 29