XPEL, Inc. · NASDAQ:XPEL
XPEL — Investor Presentation (July 2019)
25 slides from XPEL's investor presentation, July 2019
Slide 1: Investor Presentation July 2019
INVESTOR PRESENTATION JULY 2019
Slide 2: Forward Looking Statements
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 related to: share p
Slide 3: The Leader in Protective Films
AUTOMOTIVE PAINT PROTECTION FILMS AUTOMOTIVE WINDOW TINT ARCHITECTURAL WINDOW FILMS THE THE LEADER LEADER IN IN PROTECTIVE PROTECTIVE FILMS FILMS 3
Slide 4: A Brand Built Over 20 Years
HEADQUARTERED IN 2400+ CUSTOMERS SAN ANTONIO, TX OPERATIONS IN 5 COUNTRIES FOUNDED IN 1997 9 COMPANY OWNED NASDAQ: XPEL INSTALL CENTERS TSXV:XPEL.U 200 FULL TIME EMPLOYEES A BRAND BUILT OVER 20 YEARS 4
Slide 5: Global Footprint
MONTREAL, QUEBEC CANADIAN HEADQUARTERS LETCHWORTH, UNITED KINGDOM UK HEADQUARTERS YILAN, TAIWAN ASIA HEADQUARTERS SAN ANTONIO, TX US/GLOBAL HEADQUARTERS TILBURG, NETHERLANDS EUROPEAN HEADQUARTERS GUADALAJARA, MEXICO MEXICO HEADQUARTERS COMPANY OWNED INSTALLATION FACILITIES UNITED STATES - BOISE, ID
Slide 6: History That Continues to Set the Standards
OPEN PA R A S O L C A N A DA ASIA OFFICE ACQUISITION ULTIMATE ULTIMATE PLUS PA I N T P R O T E C T I O N F I L M A U T O M O T I V E W I N D OW F I L M PA I N T P R O T E C T I O N F I L M 1998-2005 2007 2010 2011 2014 2015 2016 2017 2018 2019 (SYMBOL: XPEL) STANDARD PA I N T P R O T E C T I O N F I
Slide 7: Competitive Differentiators
FILM TECHNOLOGY DISTRIBUTION INFRASTRUCTURE Self-healing, Durable & Stain Resistant Inventory In Several Locations Globally Ease of Installation Meets Just In Time Needs of Customers DAP SOFTWARE CUSTOMER SERVICE Unmatched Quality & Fit, Saves Installation, Software & Installer Time & Money Training
Slide 8: Key Investment Highlights
Strong Recognition as Premium Brand M TECHNOLOGY FIL DA Significant Domestic and International C E P I RV SO Market Opportunity SE FT WA R ME RE CUSTO Robust Growth, Profitability and Strong Balance Sheet MARKE PRODUCTS URE TIN High Insider Ownership Creates Firm CT G RU Alignment with Shareholders
Slide 9: Complete Protection
ULTIMATE PLUS PA I N T P R O T E C T I O N F I L M Protects Hoods, Bumpers, Fenders, Mirrors, Rocker Panels, Rear Wheel Impact and A-Pillars. COMPLETE PROTECTION 9
Slide 10: Automotive Products
ULTIMATE PLUS PA I N T P R O T E C T I O N F I L M A U T O M O T I V E W I N D OW F I L M C E R A M I C C O A T I N G Invisible, Cut-To-Fit Film for Heat Rejection, Hydrophobic Coating Protection Film Security and Appearance Applied to PPF and Painted Surfaces Protects from Rock Chips, 4 Core Lines
Slide 11: 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. headlights and backs of the painted mirrors. $4000 - $5000 $100 - 200 $1800 - $2500 PRICE DETERMINATION Complexity Of Insta
Slide 12: Architectural Window Films
ARCHITECTURAL WINDOW FILMS RX PROTECTION FILM SURFACE PROTECTION Solar Control and Security Anti-Microbial Surface Sell to a Variety of Niche for Commercial and Protection Non-Automotive Uses Residential Applications Screens, Electronics, Electronics, Stainless Steel, Distinct Customer Set, But Cons
Slide 13: The XPEL Difference
CERTIFIED BRAND TRAINING PRESENCE Cloud-Based Application Essential to New Customer Extensive On and Off-line Updated Daily with 80,000 Success and Industry Growth Marketing and Lead Vehicle Applications Generation Corporate Training Facilities Pre-Cut Film Prevents in 5 Countries Sponsorships, Even
Slide 14: XPEL Revenue Ecosystem
PRODUCT REVENUE 95 % INSTALLATION SERVICE REVENUE 5% $ 150 - $ 375 / CAR DIRECT - 65 % INDIRECT - 35 % SERVICE LOCATIONS US UK CANADA INTERNATIONAL DISTRIBUTORS 6 1 2 INDEPENDENT NEW CAR INSTALLERS DEALERSHIP $ 800 - $ 2500 $ 600 - $ 1500 / CAR / CAR END END NEW CAR CONSUMER CONSUMER DEALERSHIP XPEL
Slide 15: Strategic Initiatives
CONTINUE GLOBAL EXPANSION European Headquarters Established in 2017 Build Out Sales Team In Under-penetrated Geographies DRIVE GLOBAL BRAND AWARENESS High Visibility At Premium Events Advertising Placement In Media Consumed By Car Enthusiasts CHANNEL EXPANSION VIA ACQUISITION Acquire Select Installa
Slide 16: Annual Revenue
$109.9M $110,000 $100,000 $90,000 AGR $80,000 % C .8 $70,000 38 63.4% $67.3M $60,000 29.9% $51.8M $50,000 24.8% $41.5M $40,000 39.9% $29.6M $30,000 $24.7M $20,000 Q1 $10,000 2014 2015 2016 2017 2018 2019 IFRS U.S. GAAP ANNUAL REVENUE (IN MILLIONS) 16
Slide 17: Q1 2019 Sales by Region
CONTINENTAL EUROPE 5.8% UK CANADA 3.6% 12.5% UNITED STATES 50.6% CHINA 18.3% ASIA PACIFIC 3.5% LATIN AMERICA MIDDLE EAST / 1.9% AFRICA 3.6% OTHER .2% Q1 2019 SALES BY REGION 17
Slide 18: Gross Margin Trend
$40,000 50.0% $33.4M $35,000 40.0% $30,000 33.0% 31.2% 30.4% 29.7% $25,000 30.0% 27.1% 24.8% $20,000 GROSS $16.7M 20.0% GROSS MARGIN MARGIN $ % $15,000 $14.0M $12.3M 10.0% $10,000 $9.3M $8.2M Q1 $5,000 0.0% 2014 2015 2016 2017 2018 2019 IFRS U.S. GAAP GROSS MARGIN TREND (IN MILLIONS) 18
Slide 19: EBITDA Profile
$13.0M $13,000 85.0% $12,000 80.0% $11,000 75.0% 70.0% $10,000 65.0% $9,000 60.0% $8,000 55.0% 50.0% $7,000 45.0% $6,000 40.0% 35.0% $5,000 EBITDA $4.4M EBITDA 30.0% $ % $4,000 $3.6M $3.6M 25.0% $3.3M $3,000 20.0% $2.8M 15.0% $2,000 Q1 11.9% 11.5% 10.0% 11.1% $1,000 8.6% 8.5% 5.0% 5.4% 0.0% 2014 201
Slide 20: Net Income
$9,000 $8.7M 50.0% $8,000 45.0% $7,000 40.0% $6,000 35.0% NET $5,000 30.0% NET INCOME INCOME $ 25.0% % $4,000 $3.1M 20.0% $3,000 $2.2M 15.0% $1.9M $2,000 $1.5M Q1 10.0% 10.4% $1.1M $1,000 7.5% 7.9% 5.0% 3.6% 4.2% 1.5% 0.0% 2014 2015 2016 2017 2018 2019 IFRS U.S. GAAP NET INCOME (IN MILLIONS) 20
Slide 21: Strong Financial Position
2017 2018 Q 1 2019 CURRENT RATIO 1.45 2.48 2.15 NET WORKING CAPITAL $6.3M $12.5M $13.3M ACCOUNTS RECEIVABLE $5.4M $5.6M $5.9M TOTAL INVENTORY $10.5M $10.8M $13.6M TOTAL ASSETS $27.8M $30.5M $38.6M TOTAL DEBT $4.0M $1.8M $1.7M (EXCLUDES LEASE OBLIGATIONS) DEBT TO EQUITY RATIO 31.6 % 8.8 % 7.4% (EXCLU
Slide 22: Macro Growth Opportunities
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 Domestically
Slide 23: Appendix
APPENDIX
Slide 24: EBITDA Reconciliation
THREE MONTHS YEAR ENDED YEAR ENDED ENDED DEC 31, 2017 DEC 31, 2018 MAR 31, 2019 NET INCOME $994,330 $8,721,232 $1,860,003 INTEREST $328,402 $168,389 $28,706 TAXES $1,154,220 $2,760,073 $565,888 DEPRECIATION $594,712 $735,983 $200,818 AMORTIZATION $537,334 $642,801 $184,548 EBITDA $3,608,998 $13,028,
Slide 25: Complete Protection, Unseen.
San Antonio, TX USA +1 210-678-3700 XPEL.COM COMPLETE PROTECTION, UNSEEN.