XPEL, Inc. · NASDAQ:XPEL
XPEL — Investor Presentation (May 2020)
25 slides from XPEL's investor presentation, May 27, 2020
Slide 1: Form 8-K Current Report
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 May 27, 2020 Date of Report (date of earliest event reported) XPEL, INC. (Exact name of registrant as specified in its charter) Nevad
Slide 2: Item 7.01 Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure XPEL, Inc. intends to use the materials attached to this report as Exhibit 99.1 in upcoming investor presentations. The furnishing of these materials is not intended to constitute a representation that such furnishing is required by Regulation FD or other securitie
Slide 3: Investor Presentation May 2020
INVESTOR : “XPEL MAY 2020
Slide 4: Forward-Looking 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 5: The Leader in Protective Films
THE IN PROTECTIVE FILMS AUTOMOTIVE PAINT PROTECTION FILMS AUTOMOTIVE WINDOW TINT HOME & OFFICE WINDOW FILMS
Slide 6: A Brand Built Over Years
A BRAND OVER 20 YEARS HEADQUARTERED IN SAN ANTONIO, TX FOUNDED IN 1997 NASDAQ: XPEL 300 FULL TIME EMPLOYEES 2400+ CUSTOMERS GLOBAL OPERATIONS
Slide 7: History That Continues to Set the Standards
HISTORY THAT TO SET THE STANDARDS PARASOL “PEL CANADA ASIA OFFICE ACQUISITION (an ULTIMATE PRIME |_. ULTIMATE Lt tthe Si Hea CENTRE 1998-2007 2010 2011 2014 2015 2016 2017 2018 2019 2020 | NasnaQg ARCHITECTURAL GLASS SOLUTIONS GiESB ers) STANDARD oven “XPEL SPE yg XTREME [een eunean FUSION INT PROTE
Slide 8: 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 9: Complete Ultimate Paint Protection Film Coverage
COMPLETE ULTIMATE PAINT PROTECTION FILM COVERAGE
Slide 10: Ultimate Paint Protection Film, Window Film and Ceramic Coating
ULTIMATE PAINT PROTECTION FILM Invisible, Cut-To-Fit Protection Film Protects from Rock Chips Bug Acids, and Road Debris Damage Professionally Installed New-Car Product AUTOMOTIVE WINDOW FILM Film for Heat Rejection, Security and Appearance 4 Core Lines of Film, Something For Everyone High-End Produ
Slide 11: 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 . FACTORS INF
Slide 12: Design Access Program, Training and Brand Presence
Cloud-Based Application Updated Daily with 80,000 Vehicle Applications Pre-Cut Film Prevents Cutting on Car DESIGN ACCESS PROGRAM Reduces Installation Time, Material Waste CERTIFIED TRAINING Essential to New Customer Success and Industry Growth Corporate Training Facilities in 5 Countries PPF, Autom
Slide 13: Non-Automotive Surface Protection
| NON-AUTOMOTIVE SURFACE PROTECTION Solar Control and and Residential Ap curity for Commercial ications Set, But Similar Profile PROTECTION FILM >untertops and M Distinct Custome ‘0 Automotive t t utomotive instantly Evaluating Ni lications to Elevat Anti-Microbial Surface Protection Large Addr New
Slide 14: XPEL Revenue
XPEL REVENUE PRODUCT re) INSTALLATION re) REVENUE 94 % SERVICE REVENUE 6 Yo $150 - $375 / CAR = ees SERVICE “aap” ~- LOCATIONS © & INTERNATIONAL ls EENADE DISTRIBUTORS — $800 - $2500 $600 - $1500 / CAR / CAR am END END NEW CAR CONSUMER CONSUMER © DEALERSHIP 12
Slide 15: Growth Strategy and International Operations
Operations in 9 Countries Build Out Sales Team In Under-penetrated Geographies High Visibility At Premium Events Advertising Placement In Media Consumed By Car Enthusiasts Find Opportunities That Leverage The Channel and Brand Find Opportunities That Leverage Existing Products & Technology Acquire S
Slide 16: Revenue
REVENUE IN MILLIONS 129.9M $130,000 s $120,000 18.2% ) 109.9M $110,000 s $100,000 $90,000 $80,000 $70,000 $67.3M $60,000 29.9%) $50,000 24.8%) $40,000 $30,000 $28.4M $20,000 2015 2016 2017 2018 2019 12020 YTD IFRS U.S. GAAP
Slide 17: Revenue by Region 2019
2019 BY REGION CANADA 13.8% UNITED STATES 46.5% °0@ OTHER 0.2% CONTINENTAL EUROPE 5.7% MIDDLE EAST / AFRICA 2.4% ASIA PACIFIC Ye 3.4% Ning.
Slide 18: Gross Margin
GROSS MARGIN IN MILLIONS 45,000 sass $43.5M $40,000 0.0% $33.4M $35,000 40.0% 30,000 $ ares 36.3% $25,000 30.0% Gross Gross MARGIN MARGIN s % $20,000 $16.7M a $15,000 $14.0M $12.3M $10.3M 10.0% $10,000 * $5,000 0.0% 2015 2016 2017 2018 2019 Q1 2020 YTD IFRS U.S. GAAP 16
Slide 19: EBITDA
EBITDA IN MILLIONS $20,000 $15,000 EBITDA $ $10,000 $5,000 $1,000 @1 2020 YTD 100.0% 95.0% 90.0% 85.0% 80.0% 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
Slide 20: Net Income
NET INCOME IN MILLIONS $15,000 $14.0M 50.0% 45.0% 40.0% $10,000 $8.7M 55.0% NET 30.0% NET INCOME INCOME $ 25.0% % $5,000 20.0% 15.0% $2.2M $1.6M 10.0% $15M 10.8% $1.0M 7.9% 5.0% $1,000 3.6% 4.2% 1.5% 2015 2016 2017 2018 2019 Q12020 YTD 0.0% IFRS U.S. GAAP 18
Slide 21: Strong Balance Sheet
“Moep i. STRONG U.S. GAAP - IN MILLIONS CASH « CASH EQUIVALENTS $4.0M $11.5M $14.8M NET WORKING CAPITAL $12.5M $24.5M $28.5M ACCOUNTS RECEIVABLE $5.6M $7.2M $7.3M TOTAL INVENTORY $10.8M $15.1M $18.8M TOTAL ASSETS $30.5M $51.6M $61.7M TOTAL DEBT CASH FLOW FROM OPS (YTD) $6.8M $11.0M $0.3M i)
Slide 22: 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 23: Appendix
APPENDIX
Slide 24: Non-GAAP Measures
NON - GAAP MEASURES U.S. GAAP - IN MILLIONS NET INCOME INTEREST TAXES DEPRECIATION AMORTIZATION EBITDA THREE MONTHS ENDED Mar 31, 2020 $1,611,354 $30,558 $426,379 $270,317 $233,896 $2,572,504 Mar 31, 2019 $1,860,003, $28,706 $565,588 $200,818 $184,548 $2,839,963 YEAR ENDED Dec 31, 2019 Dec 31, 2018
Slide 25: XPEL Contact
“XPEL San Antonio, TX USA +1 210-678-3700 XPEL.COM COMPLETE: PROTECTION, UNSEEN.