Xpel, Inc. · NASDAQ:XPEL
Xpel — Investor Presentation (May 2020)
23 slides from Xpel's investor presentation, May 27, 2020
Slide 1: Investor Presentation May 2020
INVESTOR | “XPEL MAY 2020
Slide 2: Forward Statement
FORWARD STATEMENT This Presentation contains certain forward-looking statements in respect of various matters including upcoming events that involve known and unknown risks and uncertainties that are beyond the control of Management. Those risks and uncertainties include, among other things, risks r
Slide 3: The Leader in Protective Films
THE IN PROTECTIVE FILMS AUTOMOTIVE PAINT PROTECTION FILMS AUTOMOTIVE WINDOW TINT HOME & OFFICE WINDOW FILMS
Slide 4: A Brand Built Over Years
A BRAND BU!Li OVER 20 YEARS HEADQUARTERED IN SAN ANTONIO, TX FOUNDED IN 1997 NASDAQ: XPEL 300 FULL TIME EMPLOYEES 2400+ CUSTOMERS GLOBAL OPERATIONS
Slide 5: History That Continues to Set the Standards
HISTORY THAT TO SET THE STANDARDS OPEN PARASOL “XPEL CANADA ASIA OFFICE Sg . ACQUISITION <a ULTIMATE PRIME L. ULTIMATE Eire snooe ren PAINT PROTECTION FILM = CENTRE 1998-2007 2010 2011 2014 2015 2016 2017 2018 2019 2020 (SYMBOL: XPEL) STANDARD “XPEL wade ne NETHERLANDS OFFICE FUSION GERMANY OFFICE
Slide 6: Key Highlights
KEY HIGHLIGHTS Strong Recognition as Premium Brand Significant Domestic and International Market Opportunity Robust Growth, Profitability and Strong Balance Sheet High Insider Ownership Creates Firm Alignment with Shareholders Results Driven Management Team With Proven Track Record
Slide 7: Complete Ultimate Paint Protection Film Coverage
COMPLETE ULTIMATE PAINT PROTECTION FILM COVERAGE
Slide 8: Ultimate Paint Protection Film and Related Products
ULTIMATE PAINT PROTECTION FILM Invisible, Cut-To-Fit Protection Film m Rock Chips Acids, and Road D PRIME AUTOMOTIVE WINDOW FILM Film fo Securit asy Finished Maintenance and Cleaning CERAMIC COATING Opportunity for More Revenue Per Car
Slide 9: End Customer PPF Economics
END CUSTOMER PPF ECONOMICS COVERAGE - FULL CAR COVERAGE - FULL FRONT COVERAGE - PARTIAL HOOD Covers entire car. Covers entire painted front bumper, hood, fenders, Covers 6” - 12” of leading edge of hood. 4000 - $6000 headlights and backs of the painted mirrors. 100 - 200 * ‘ $1800 - $2500 sd FACTORS
Slide 10: Design Access Program and Certified Training
dated Daily with -Cut Film Prevents Cutting on Car DESIGN ACCESS PROGRAM Reduces Installation Time, Material Waste CERTIFIED TRAINING itial to and Indu Training Facilities ountrie Sponsorst nfluence Positions XPEL as the Premium Brand 10
Slide 11: Surface Protection Film
SURFACE PROTECTION PROTECTION FILM 1
Slide 12: XPEL Revenue: Product and Installation
XPEL REVENUE PRODUCT {e) INSTALLATION fo) REVENUE 94 % SERVICE REVENUE % $150 - $375 / CAR aaa SERVICE LOCATIONS Z UK CANADA @ saa $800 - $2500 $600 - $1500 /CAR /CAR END END NEW CAR ‘CONSUMER CONSUMER DEALERSHIP
Slide 13: Strategic Growth Initiatives
STRATEGIC Operations in 9 Countries Build Out Sales Team In Under-penetrated Geographies Jigh Visibility At Premium Events Advertising Placement In Media Consumed By Car Enthusiasts Find Opportunities That Leverage The Chann Find O aT and Brand pportunities That Le nology Existing Products Acquire S
Slide 14: Revenue
REVENUE IN MILLIONS $130,000 $120,000 $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $41.5M 24.8% $51.8M 29.9% $67.3M $109.9M 18.2% $129.9M $28.4M 2015 IFRS 2016 2017 2018 US. GAAP. 2019 (12020 YTD. 14
Slide 15: Revenue by Region 2019
2019 BY REGION CANADA 13.8% UNITED STATES 46.5% 2e@ OTHER 0.2% CONTINENTAL EUROPE 5.7% MIDDLE EAST / AFRICA 2.4% a < ‘ Li ASIA PACIFIC (3.4%
Slide 16: Gross Margin
GROSS MARGIN IN MILLIONS $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $43.5M $33.4M 36.3% 335% $16.7M $14.0M $12.3M $10.3M 2015, 2016 2017 2018 2019 '@12020 YTD. IFRS US. GAAP 50.0% 400% 30.0% 200% 10.0% 00% 16
Slide 17: EBITDA
L EBITDA IN MILLIONS $20,000 $15,000 EBITDA $ $10,000 $5,000 $1,000 $3.6M $4.4M $3.6M $18.7M $13.0M $2.6M 2015 IFRS 2016 2017 2018 US. GAAP 2019 @12020 YTD EBITDA 7
Slide 18: Net Income
NET INCOME IN MILLIONS $15,000 $14.0M $10,000 $8.7M NET INCOME $ $5,000 s22M $1.6M $1.5M 70.8% 1.0M stoo0 = — $ 7.9% zs s 15% 2015 2016 2017 2018, 2019 @1 2020 YTD IFRS US. GAAP 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% NET INCOME % 18
Slide 19: Strong Balance Sheet
“<MEEL STRONG U.S. GAAP - IN MILLIONS 2018 2019 2020 QTD $4.0M $11.5M $14.8M $12.5M $24.5M $28.5M $5.6M $7.2M $7.3M $10.8M $15.1M $18.8M $30.5M $51.6M $61.7 TOTAL DEBT CASH FLOW FROM OPS (yTb) $6.8M $11.0M $0.3M 19
Slide 20: Macro Growth
MACRO GROWTH Rock Chips Are Top Consumer Complaint Paint Protection Film Low Penetration to New Cars Sold Fragmented Market Provides Opportunity Ripe for Consolidation Dealerships Need Tangible, Profitable Products Window Film First Example of Leveraging Channel Opportunity Equivalent Opportunities
Slide 21: Appendix
APPENDIX
Slide 22: Non-GAAP Measures
NON - GAAP MEASURES U.S. GAAP - IN MILLIONS THREE MONTHS ENDED YEAR ENDED Mar 31, 2020 Mar 31, 2019 Dec 31, 2019 Dec 31, 2018 $1,611,354 $1,860,003 $13,995,072 $8,721,232 $30,558 $28,706 $96,646 $168,389 $426,379 $565,588 $2,955,356 $2,760,073 $270,317 $200,818 $915,918 $735,983 $233,896 $184,548 $7
Slide 23: XPEL - Complete Protection, Unseen
“XPEL San Antonio, TX USA +1210-678-3700 XPEL.COM COMPLETE PROTECTION, UNSEEN.