Peter Grftehauge CEO founder of the Autorola Group Holding A/S - PowerPoint PPT Presentation

Peter Grøftehauge CEO founder of the Autorola Group Holding A/S

Autorola Company Snapshot… • Established in 1996 • World’s fastest growing online automotive remarketing company • Provide services to sellers in 25 countries and buyers in over 40 countries • Offered 240,000 vehicles in Europe during 2011 • Tailored solutions to industry • Autorola is “born online” and software driven

• Danish Market • European Market • NL Export • Making Money • Questions

Danish Market • Luxury Tax up to 180% • 4 out of 5 sold cars Second Hand

Denmark Sales Top 10 2012 1 VW UP 2 Toyota Aygo 3 Peugeot 107 4 Kia Picanto 5 Citroen C1 Chevrolet 6 Spark 7 Toyota Yaris 8 Toyota Avensis 9 Kia Rio 10 Opel Corsa October 2012: 70% New Sold Vehicles in Micro Segment

Dynamic Market constantly changing • Government regulations • Top 10 Autorola Importing Countries

Top 10 Importing countries from Autorola NL Government Regulations DE Umwältpremie 2009 PL Engine capacity > 2.0 18,6% registrationtax RO Finalised polluting tax in 2013, multiple criteria SK Since 1st of October 2012, registration tax based on engine capacity and Co2, and extra tax based on KW BE Company Cars, income added tax based on Co2 FR LT No stimulation activities CZ No special tax to influence Greener/smaller cars AT Import and purchase tax based on Co2 DK

Occasion markt Nederland Export percentage (Cijfers Autorola) 2008 2009 2010 2011 1% 1% 27% 56% Export Locale verkoop 120 100 80 60 40 20 0 2008 2009 2010 2011 2012

How to make money in 3 years with microsegment vehicles? • Precise sourcing strategy • Supply vs. Demand • Process optimization • Market knowledge

Key Indicator: Price / Market Price relative to competitive comparable cars. Retail asking price 100% Current market price An example ...

Price / market (DKK) 92% 184.900 95% 189.900 97% 194.900 100% 199.900 103% 204.900 105% 209.900 108% 214.900 1. Price correctly from day 1, and always have relative falling prices.

Good demand? Look at the details!

You need to optimize processes • Increase Stock Turn Rate • Clear Pricing Policy • Maximize International exposure

Market price over time Retail price (DKK) 220.000 100 200.000 Index 100 100 180.000 160.000 Days 0 15 30 45 60 75 90 105

Market price over time Retail price (DKK) 220.000 100 97 101 200.000 Index 100 104 100 Typical 99 180.000 98 160.000 0 15 30 45 60 75 90 105

Days Typical Typical2 Optimal 0-30 97 97 97 Market price over time 31-60 100 100 96 61-90 101 101 95 Retail price (DKK) 90+ 104 94 - 220.000 100 97 101 Index 100 200.000 104 Typical 100 Typical2 99 180.000 98 94 160.000 0 15 30 45 60 75 90 105

Days Typical Typical2 Optimal 0-30 97 97 97 Market price over time 31-60 100 100 96 61-90 101 101 95 Retail price 90+ 104 94 - (DKK) 220.000 Index 100 97 101 200.000 Typical 104 Typical2 97 99 OPTIMAL1 180.000 98 95 94 160.000 0 15 30 45 60 75 90 105 1. Old car sold 2. New car on stock

Days Typical Typical2 OPTIMAL 0-30 97 97 97 Market price over time 31-60 100 100 96 61-90 101 101 95 Retail price 90+ 104 94 - (DKK) 220.000 Index 100 97 101 Typical 200.000 104 Typical2 OPTIMAL1 97 99 180.000 98 OPTIMAL2 97 95 94 160.000 0 15 30 45 60 75 90 105 1. Old car sold 2. New car on stock

Main Conclusions When selling microsegment cars you need to: • Increase stock turn ratio • Clear repricing strategy • Buy the right cars • Buy and sell internationally • Sell wholesale vehicles to the market with the highest demand

Questions?