Kamux Oyj · OMXHEX:KAMUX
Kamux Oyj — Q3 2023 Earnings Presentation
30 slides from Kamux Oyj's earnings presentation, Nov 10, 2023
Slide 1: Revenue grew and adjusted operating profit increased significantly
Revenue grew and adjusted operating profit increased significantly Interim Report for January–September 2023 CEO Tapio Pajuharju CFO Marko Lehtonen Q3 2023 NOVEMBER 10, 2023 1
Slide 2: Kamux 20 years in October 2023
Kamux 20 years in October 2023 Landmark of 500,000 sold cars achieved during Q3 2023. Q3 2023 NOVEMBER 10, 2023 2
Slide 3: The iconic Kamux Beetle has made a comeback
The iconic Kamux Beetle has made a comeback and will tour Finland throughout the 20-year anniversary Q3 2023 NOVEMBER 10, 2023 3
Slide 4: Table of contents
Table of contents Interim Report for January–September 2023 Market position, Outlook and Financial Q3 in brief Q3 Highlights, financial targets, development Strategy Summary Q3 2023 NOVEMBER 10, 2023 4
Slide 5: Kamux Vision: #1 used car retailer in Europe
Kamux Vision #1 used car retailer in Europe Q3 2023 NOVEMBER 10, 2023 5
Slide 6: Solid performance with all-time high volumes, operating profit gradually improving
Solid performance with all-time high volumes, operating profit gradually improving 1 3 5 Revenue increased Adjusted operating profit Revenue from integrated services by 7.9% to EUR 282.4 increased by 36.6% to increased to EUR 13.6 million (13.0), or million (261.7) boosted EUR 7.1 million (5.2), or
Slide 7: Used car market growth picking up in Q3, but volumes still below 2021 levels
Used car market growth picking up in Q3, but volumes still below 2021 levels Market Market Kamux Market development in Q3 2023 Kamux position and size market development in Q3 2023 New passenger car (2022) share registrations across Finland ~0.6 million ~8.0% We estimate that the market Kamux mainta
Slide 8: Kamux is Europe's fifth largest used car retailer
Kamux is Europe’s fifth largest used car retailer Largest used car dealers in Home # of operating Pcs in 2022 – Kamux Europe in 2022 country countries estimate* A lot happened in the Constellation Group UK 22 90,000–100,000 used car market in 2022. Aures Holdings Czechia 4 89,100 Industry consolidat
Slide 9: Strong volume growth not fully visible in revenue, operating profit improving
Strong volume growth not fully visible in revenue, operating profit improving as actions start to deliver Revenue (EUR million) Adjusted operating profit (EUR million) 280 13 260 12 240 11 220 10 200 9 180 8 160 7 140 6 120 100 5 80 4 60 3 40 2 20 1 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2023 20
Slide 10: All-time high number of cars sold with Finland breaking records
All-time high number of cars sold with Finland breaking records in three consecutive months Sold cars (pcs) +14.2% 20,000 19,364 18,699 1,567 18,000 1,422 17,215 16,760 16,728 16,952 16,242 1,414 16,000 15,733 1,490 1,397 15,601 15,688 1,223 3,529 1,099 15,324 1,401 4,106 1,248 1,280 14,681 1,300 14
Slide 11: Kamux Plus growth solid, finance fees challenged by increased interest rates
Kamux Plus growth solid, finance fees challenged by the increased interest rates Revenue from integrated services MEUR 16 15.3 10% 13.6 9% 14 12.9 12.8 13.0 12.4 11.8 8% 11.5 12 6.9 % 10.7 7% 10.2 9.9 10 9.4 5.3 % 6% 5.1 % 5.2 % 5.2 % 5.0 % 5.0 % 4.9 % 4.8 % 8 4.3 % 5% 4.2 % 4.5 % 4% 6 3% 4 2% 2 1%
Slide 12: New openings and showrooms
New openings and showrooms FINLAND SWEDEN GERMANY TOTAL Lielahti and Hatanpää combined. Värmdö showroom Q1/2023 -1 Utility vehicles in closed Tampere to Lakalaiva Raahe showroom Düren showroom Q2/2023 +-0 closed end of May opened Halmstad and Q3/2023 Linköping to larger Heide relocated +-0 premises
Slide 13: Kamux Finland — all-time high volumes boosted revenue
Kamux Finland — all-time high volumes boosted revenue, profitability improving steadily Revenue (EUR million) Operating Profit (EUR million) • Revenue increased by 17.6% compared to the previous year and was EUR 199.0 million (169.2). Revenue growth was due to 250 +17.6% 12 the increase in number of
Slide 14: Kamux Sweden — profitability improvement continuing
Kamux Sweden — profitability improvement continuing, topline somewhat affected by lack of cars Revenue (EUR million) Operating Profit (EUR million) • Total revenue decreased by -1.8% compared to the previous year and was EUR 77.3 million (78.7). -1.8% 90 2.0 • Gross margin increased compared to the
Slide 15: Kamux Germany — strong revenue growth, process improvements not yet visible
Kamux Germany — strong revenue growth, but process improvements not yet visible in operating profit Revenue (EUR million) Operating Profit (EUR million) • Total revenue increased by 10.3% compared to the previous year and was EUR 27.1 +10.3% million (24.6). External revenue increased by 30 1.0 9.7%.
Slide 16: Strategy review and update are ongoing
Strategy review and update are ongoing – ready to be published in spring 2024. Q3 2023 NOVEMBER 10, 2023 16
Slide 17: Kamux Way — cornerstones of our way of operating
Kamux Way — cornerstones of our way of operating Seamless omni- Utilizing data and Efficient processes, Developing channel customer leading with scalability and store capabilities and experience knowledge strategy continuous learning and services Trust and Systems for Industrialised Induction afford
Slide 18: Financial development
Financial development Q3 2023 NOVEMBER 10, 2023 18
Slide 19: Gradual recovery of used car markets boosting volumes, helping revenue and margins
Gradual recovery of used car markets boosting volumes, helping Kamux’s revenue and margins grow • Average price per car slightly lower than previous year, impacting revenue • Gross margin per car was EUR 1,517, improving from the previous year • Operating leverage is working, though operating expens
Slide 20: Key Figures
Key Figures (MEUR) 7-9/2023 7-9/2022 Change, % 1–9/2023 1–9/2022 Change, % 1–12/2022 Revenue 282.4 261.7 7.9% 760.5 745.8 2.0% 968.7 Gross profit 29.4 24.2 21.5% 76.4 72.9 4.8% 94.1 as percentage of revenue, % 10.4% 9.2% 10.0% 9.8% 9.7% Operating profit (EBIT) 6.8 5.2 31.0% 11.3 15.4 -26.6% 17.0 as
Slide 21: Improved inventory management
Improved inventory management Net Working Capital (EUR million) Inventories (EUR million) 130 150 -1.5% -4.5% 140 120 110 130 120 100 110 90 100 80 90 70 80 60 70 50 60 50 40 40 30 30 20 20 10 10 0 0 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322
Slide 22: Strong cash flow from Operating activities
Strong cash flow from Operating activities Cash Flow from Operating Activities Components of Cash Flow from Operating Activities (EUR million) Q3 2023 (EUR million) 30 14 0.0 25 12 3.6 20 15 13.9 10 10 8 5 5.5 0 6 4.8 -5 4 -10 -15 2 -20 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 0 P
Slide 23: Moderate investments in showroom upgrades and IT systems
Moderate investments in showroom upgrades and IT systems, more digital capabilities in-house Investments (EUR million) • Kamux seeks to gain a significant competitive advantage by investing in 2.5 leading with knowledge and making 2.0 strategic real estate investments 1.5 • More focus on building in
Slide 24: Dividend from 2022
Dividend from 2022 • AGM decided that a dividend of EUR 0.15 per share (EUR 0.20 per share) be paid • Earnings per share were EUR 0.27 (0.49) • Payout ratio is 55% (41%) • Dividend was paid in two instalments • EUR 0.05 per share was paid on May 2, 2023 • EUR 0.10 per share was paid on October 31, 2
Slide 25: Outlook and financial targets
Outlook and financial targets Q3 2023 NOVEMBER 10, 2023 25
Slide 26: Financial Targets 2021–2023
Financial Targets 2021–2023 Indicator Target Actual Kamux will update its strategy and financial (from Feb 26, 2021) 1-9/2023 targets at the beginning of 2024 Revenue growth Over 20% 2.0% annually Adjusted Annually increasing EUR 12.5 million • Revenue growth of over 20% annually operating profit (1
Slide 27: Outlook for 2023
Outlook for 2023 In 2023, Kamux expects its adjusted operating profit to grow from the year 2022, when the adjusted operating profit was EUR 17.5 million. Q3 2023 NOVEMBER 10, 2023 27
Slide 28: Solid performance with all-time high volumes, operating profit gradually improving
Solid performance with all-time high volumes, operating profit gradually improving 1 3 5 Revenue increased Adjusted operating profit Revenue from integrated services by 7.9% to EUR 282.4 increased by 36.6% to increased to EUR 13.6 million (13.0), or million (261.7) boosted EUR 7.1 million (5.2), or
Slide 29: Thank You!
Thank You! Q3 2023 NOVEMBER 10, 2023 29
Slide 30: Disclaimer
Disclaimer It should be noted that Kamux and its business are exposed to various risks and uncertainties, and certain statements herein which are not historical facts, including without limitation, those regarding expectations for market growth and developments; expectations for growth and profitabi