Delticom Ag · XETR:DEX
Delticom — H1 2008 Earnings Presentation
28 slides from Delticom's earnings presentation, Aug 13, 2008
Slide 1: A Firm Grip. Investor and Analyst Presentation
A Firm Grip. Investor and Analyst Presentation on the Occasion of the Release of the Semi-Annual Results 2008 Hannover, 13th August 2008
Slide 2: Agenda
Agenda Delticom H1 08 at a Glance Business Model Seasonalities in Tyre Trading Financials Key Investment Highlights Investor Presentation Hannover, 13th August 2008 2
Slide 3: Agenda
Agenda Delticom H1 08 at a Glance Business Model Seasonalities in Tyre Trading Financials Key Investment Highlights Investor Presentation At a glance Business Model Seasonalities Financials Highlights Hannover, 13th August 2008 3
Slide 4: Delticom Profile
Delticom Profile Business model: Sale of car and motorcycle tyres over the Internet More than 2.2 million customers 93 online shops in 35 countries, operating on established web domains with high awareness Broad product range with more than 100 tyre brands and 25,000 tyre models Global net
Slide 5: Delticom H1 08 at a Glance
Delticom H1 08 at a Glance Revenues € 121.5 million 1 Redesign of the Tyre Distribution Chain ► (+ 19.2 % yoy) 2 International Growth Story ► Revenues + 29.3 % yoy in non-domestic markets EBIT: € 5.6 million 3 Operational Excellence at Low Costs ► (H1 07: € 5.4 million) Market share in Europe 4 Exce
Slide 6: Agenda
Agenda Delticom H1 08 at a Glance Business Model Seasonalities in Tyre Trading Financials Key Investment Highlights Investor Presentation At a glance Business Model Seasonalities Financials Highlights Hannover, 13th August 2008 6
Slide 7: Delticom is European Market Leader
Delticom is European Market Leader ► 93 online-shops in 35 countries Investor Presentation At a glance Business Model Seasonalities Financials Highlights Hannover, 13th August 2008 7
Slide 8: Internet
Internet Internet penetration Delticom service partners Source: GfK desk research Austria, October 2007 ► Internet penetration is long-term driver of Delticom sales Investor Presentation At a glance Business Model Seasonalities Financials Highlights Hannover, 13th August 2008 8
Slide 9: Tyres
Tyres Relevant: Passenger Car Tyre Replacement Market Europe € 10-12 billion / year USA € 12-15 billion / year Market share online 2007 (Germany) was 4% (2006: 3%) EuPD Research: proportion of German online retailers active in the „car and accessories“ segment only 2.8% „ADAC Reifenmonit
Slide 10: Divisions
Divisions eCommerce Wholesale (since 2000) (since 1999) Online shops (B2C / B2B) Knowledge about markets and prices Partners Synergies High volumes (wholesale, outsourcing, logistics) Entry in new countries Software solutions Investor Presentation At a glance Business Model Seasonalities Financials
Slide 11: Redesign of the Tyre Distribution Chain
Redesign of the Tyre Distribution Chain Pre-Delticom ► Delticom Redesign European Tyre Non-European Tyre European Tyre Non-European Tyre Manufacturers Manufacturers Manufacturers Manufacturers Wholesalers Delticom European Wholesalers Distribution Centers Retailers Small Garages Garages B2C Customer
Slide 12: Strategy
Strategy Customer Orientation Cost Leadership Growth Focus Secure sufficient supply in Lower purchase prices Utilize first-mover advantage peak times through closer through increased purchase through fast geographic co-operations with suppliers volume and early ordering expansion into new mark
Slide 13: Agenda
Agenda Delticom H1 08 at a Glance Business Model Seasonalities in Tyre Trading Financials Key Investment Highlights Investor Presentation At a glance Business Model Seasonalities Financials Highlights Hannover, 13th August 2008 13
Slide 14: 2007 vs. 2008 Relative Temperatures
2007 vs. 2008 Relative Temperatures ► Strong headwind for the tyre retailers: Bad weather in Q1 and Q2. Investor Presentation At a glance Business Model Seasonalities Financials Highlights Hannover, 13th August 2008 14
Slide 15: H1 Situation
H1 Situation Strong comparison base Q1/Q2 2007 Industry sources: No significant winter tyre sales in Q1 08. Supply overhang? Summer tyre sales in Q2 started very late: H1 –7.5 % units yoy Manufacturers cite increases in raw material costs and energy prices as a reason for announced price i
Slide 16: Saisonal Demand
Saisonal Demand ► Repurchases constitute important growth potential Investor Presentation At a glance Business Model Seasonalities Financials Highlights Hannover, 13th August 2008 16
Slide 17: Agenda
Agenda Delticom H1 08 at a Glance Business Model Seasonalities in Tyre Trading Financials Key Investment Highlights Investor Presentation At a glance Business Model Seasonalities Financials Highlights Hannover, 13th August 2008 17
Slide 18: Quarterly Revenues
Quarterly Revenues ► Fluctuations in growth rates: seasons, weather, base effects, strategy Investor Presentation At a glance Business Model Seasonalities Financials Highlights Hannover, 13th August 2008 18
Slide 19: Non-Domestic Markets are More and More Important
Non-Domestic Markets are More and More Important ► Delticom is an international tyre retailer Investor Presentation At a glance Business Model Seasonalities Financials Highlights Hannover, 13th August 2008 19
Slide 20: EBIT Bridge
EBIT Bridge ► Gross margin and operating leverage drive EBIT Investor Presentation At a glance Business Model Seasonalities Financials Highlights Hannover, 13th August 2008 20
Slide 21: EBIT Drivers
EBIT Drivers ► Delticom operations prepared for winter season 2008 Investor Presentation At a glance Business Model Seasonalities Financials Highlights Hannover, 13th August 2008 21
Slide 22: Working Capital Management
Working Capital Management ► Changes in working capital reflect seasonal patterns Investor Presentation At a glance Business Model Seasonalities Financials Highlights Hannover, 13th August 2008 22
Slide 23: Cash Bridge
Cash Bridge ► Delticom continues to be strongly self-financed Investor Presentation At a glance Business Model Seasonalities Financials Highlights Hannover, 13th August 2008 23
Slide 24: Outlook Q3 08 and FY 2008
Outlook Q3 08 and FY 2008 Q3 Marketing costs reduced, less aggressive pricing. Good current growth rates all over Europe. But: yoy growth will depend on start of winter tyre business. FY Extent of consumer price increases (if any) is unknown. Good margins and sufficient supply reduce EBI
Slide 25: Medium Term Outlook on Sales and Margins
Medium Term Outlook on Sales and Margins ... Large underlying European replacement tyre market Continued sales growth ... Currently low tyre online penetration rate in Europe, Delticom’s market share already 2 % can be expected due to… ... Growth from increasing penetration of existing and new geogr
Slide 26: Agenda
Agenda Delticom H1 08 at a Glance Business Model Seasonalities in Tyre Trading Financials Key Investment Highlights Investor Presentation At a glance Business Model Seasonalities Financials Highlights Hannover, 13th August 2008 26
Slide 27: Key Investment Highlights
Key Investment Highlights 1 Redesign of the Tyre Distribution Chain 2 International Growth Story 3 Operational Excellence at Low Costs 4 Excellent Growth Opportunities 5 Sustainable and Profitable Business Model Investor Presentation At a glance Business Model Seasonalities Financials Highlights Han
Slide 28: Vielen Dank!
Vielen Dank! Investor Relations: Melanie Gereke Delticom AG Brühlstr. 11 30169 Hanover, Germany eMail: ir@delti.com phone: +49-511-93634-8903 Rainer Binder Philip v. Grolman Frank Schuhardt CEO Logistics and USA eCommerce and Finance Investor Presentation At a glance Business Model Seasonalities Fin