Kamux — Quarterly Results Presentation January ―March 2019 May 10, 2019 CEO Juha Kalliokoski Interim CFO Milla Kärpänen
Table of Contents Quarterly Results Presentation Q1/2019 Outlook and Financial Q1/2019 in Brief Financial Development Summary Targets
Kamux Vision #1 used car retailer in Europe
Kamux Q1 2019 in Brief 1. 3. 5. Internationalization proceeded strongly. Revenue Adjusted operating Revenue increased in Sweden by 38.6% increased to EUR profit was close to to EUR 33.4 million and in Germany by 143.0 million last year's level EUR 66.6% to EUR 10.8 million 4.7 million (4.8) (128.7) Like-for-like We opened new car showrooms Gross profit increased by showroom revenue in Oulu Limingantulli, 13.7% to declined -4.4 % Klaukkala, Kajaani, EUR 16.6 million (14.6) 2. (8.8%) 4. 6. Karlskrona and Norrtälje
Kamux’s Market Position Strengthened in Q1, Power Sources Much Discussed in Finland Market size Kamux’s Kamux’s position and development Market (2018) market share Market development during Q1 during Q1 Finland ~0.5 million ~8.0% We estimate the market Kamux maintained its market cars #1 declined slightly. Market was leader position. affected by public discussion around power sources picked up in Finland before the parliamentary election. Sweden ~1.2 million ~0.5% We estimate the market Kamux grew strongly and cars Top 10 declined slightly. strengthened its position among the ten largest used car dealers. Germany ~7.2 million ~0.0% We estimate the used car Kamux grew its market share. cars market remained unchanged.
Kamux Q1 2019 — Revenue Increased 11.1% Adjusted Operating Profit (EUR million) Revenue (EUR million) +11.1% 160 7 140 6 -3.0% 120 5 100 4 80 3 60 2 40 1 20 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 2019 2017 2018 2019 Adjusted operating profit (EBIT) Q1 2019 decreased by -3.0 • The growth was fully organic and it was based on the • and it was EUR 4.7 million (4.8) which is close to last year's sales of new showrooms. level.
Number of Cars Sold Grew by 7.1% Sold Cars (pcs) +7.1% 14 000 12 564 12 187 12 000 11 433 11 379 11 220 11 083 10 294 9 882 9 698 10 000 8 000 10 328 9 688 9 337 9 486 9 066 9 246 8 522 6 000 8 325 8 255 4 000 2 000 1 753 1 620 1 518 1 547 1 448 1 346 1 290 1 123 1 025 746 616 636 482 495 499 418 434 491 0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Suomi Ruotsi Saksa
Integrated Services Revenue Continued to Grow Q1 2019 Integrated Services Revenue MEUR % 6,0% 12 6 5,3% 5,1% 5,0% 5,0% 5,0% 4,8% 4,7% 4,7% 10 5 7,8 8 4 7,1 6,8 6,4 6,1 6,1 5,8 6 5,6 3 5,4 4 2 2 1 0 0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Finance fees and insurance commissions Sales of Kamux Plus Integrates services % of Revenue
Financial Development
Key Figures (MEUR) 1−3/2019 1−3/2018 Change, % 1−12/2018 Revenue 143.0 128.7 11.1% 527.8 Gross profit 16.6 14.6 13.7% 64.9 11.6% 11.3% 12.3% as percentage of revenue, % 4.6 4.8 -3.1% 18.9 Operating profit (EBIT) Adoption of IFRS 16 effects in Q1/19: 3.2% 3.7% 3.6% as percentage of revenue, % Adjusted operating profit 4.7 4.8 -3.0% 21.9 Excluding IFRS 16 effects as percentage of revenue, % 3.3% 3.7% 4.1% Operating Profit (EBIT) decreased by • 7.1 6.1 16.5% 27.1 Revenue from integrated services 2.7% and amounted to EUR 4.7 million as percentage of revenue, % 5.0% 4.7% 5.1% and 3.3% of revenue. Sales growth of like-for-like showrooms, % -4.4% 8.8% 5.6% Inventory turnover, days 48.6 45.6 6.7% 49.6 Return on equity was 22.2%, • Return on capital employed 16.0% and Return on equity (ROE), % 22.0% 26.2% 22.9% Equity ratio 61.6%. 12.9% 18.8% 16.2% Return on capital employed (ROI), % Equity ratio, % 45.6% 58.9 % 60.0%
Kamux’s Revenue Grew 160 +11.1% • The number of used cars sold by Kamux in 140 the first quarter grew by 7.1% 120 and totaled 12,187 cars (11,379). 100 • Kamux’s revenue grew by 11.1% Q1 2019. 80 • The increase in revenue was driven by new 60 showrooms. 40 • Like-for-like sales growth in Q1 was -4.4% 20 (8.8%). 0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19
Kamux Finland — Stable Growth Revenue (EUR million) Revenue grew by 4.7% compared to the previous +4.7% • 120 year and was EUR 108.3 million (103.5). 100 • Gross margin increased to EUR 13.5 million 80 60 (12.4) and 12.5 % (12.0%) of revenue. 40 Operating profit close to last year’s level EUR 5.9 • 20 0 million (6.0) and 5.5% (5.8%) of revenue. Q1 Q2 Q3 Q4 Excluding IFRS 16 effect the operating profit • 2017 2018 2019 remained at previous year’s level EUR 6.0 million. Operating Profit (EUR million) • Oulu Limingantulli showroom was opened in January, Kajaani in February and Klaukkala in 8 -2.0% March. In April, we announced the opening of 6 Forssa showroom 4 Like-for-like showroom growth declined. • 2 0 Q1 Q2 Q3 Q4 2017 2018 2019
Kamux Sweden — Strong Revenue Growth Continued Revenue (EUR million) Revenue grew 38.6% compared to the • +38.6% previous year and was EUR 33.4 million 35 30 (24.1). 25 Operating profit was EUR 0.2 million (0.1) • 20 15 and 0.7% (0.5%) of revenue. 10 5 • Adoption of IFRS 16 had no effect on 0 Q1 Q2 Q3 Q4 operating profit. 2017 2018 2019 • Karlskrona showroom was opened in January and Norrtälje in March. In April, we Operating Profit (EUR million) announced the opening of Helsingborg 1,0 showroom 0,5 Like-for-like showroom revenue increased • 0,0 slightly. -0,5 -1,0 Q1 Q2 Q3 Q4 2016 2017 2018
Kamux Germany — Very Strong Revenue Growth Continued Revenue (EUR million) +66.6% 12 Revenue grew by 66.6% compared to the • 10 8 previous year and was EUR 10.8 million (6.5). 6 • Operating loss was EUR -0.4 million (-0.5). 4 2 Adoption of IFRS 16 had no material effect on • 0 operating profit. Q1 Q2 Q3 Q4 In January we announced the fifth showroom • 2017 2018 2019 opening in Tostedt in Germany and in May the Operating Profit (EUR million) sixth opening in Heide. 0,0 Like-for-like showroom growth was very strong. • -0,2 -0,4 -0,6 -0,8 -1,0 Q1 Q2 Q3 Q4 2017 2018 2019
Net Working Capital and Inventories Grew Net Working Capital (EUR million) Inventories (EUR million) 70 +26.3% 80 +24.5% 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19
Cash Flow from Operations was Positive in Q1 Cash Flow from Operations (EUR million) 10 8 6 4 2 0 -2 -4 -6 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Cash Flow from Operations Special Items IFRS 16 effect Net working Capital Change Cash Flow from Operations excluding Special Items, IFRS 16 effect and Net Working Capital Change
Investments in Growth Continued According to Strategy Investments (EUR million) 1,0 In line with our strategy, we have systematically invested in our future 0,5 Personnel: recruitment and training • 0,0 Internationalization: the necessary resources • Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 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 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19
Outlook and Financial Targets
Outlook and Financial Targets € € € Revenue growth of Distribute dividends of Kamux does not EBIT margin of over 10% annually at least 30% of net publish a short-term at least 4% in 2019-2022 profits outlook 2019-2022 Revenue Profitability Dividend Policy Outlook
Dividend Development Paid dividends (EUR millions) 7 33.4% 6 Dividend paid for the financial year • 5 2018 was EUR 0.16 per share (0.12) 4 Dividend was 44% of the net profit 3 • (40%) 2 1 0 2016 2017 2018 2019
Summary
Summary Q1/2019 Gross profit increased Revenue grew to by 13.7% to EUR EUR 143.0 16.6 million (14.6) million (128.7) Internationalization Adjusted operating profit continued very was EUR 4.7 million (4.8) strongly: revenue increased in Sweden by 38.6% and in Germany by 66.6%
Questions?
Disclaimer It should be noted that Kamux and its Since these statements are based on current business are exposed to various risks and plans, estimates and projections, they uncertainties, and certain statements involve risks and uncertainties that may herein which are not historical facts, cause actual results to materially differ from including without limitation, those those expressed in such forward-looking regarding expectations for market growth statements. All statements are based on the and developments; expectations for management’s best assumptions and beliefs growth and profitability; and statements in light of the information currently available preceded by “believes”, “expects”, “anticipates”, “foresees”, or similar to it and Kamux assumes no obligation to expressions, are forward-looking publicly update or revise any forward-looking statements. statement except to the extent legally required.
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