Slide 1: Duell Corporation Half-Year Financial Report September 2022-February 2023
Duell Corporation Half-Year Financial Report September 2022-February 2023 April 5, 2023 Jarkko Ämmälä, CEO Pellervo Hämäläinen, IR
Slide 2: A leading Nordic and European powersports aftermarket distributor
A leading Nordic and European powersports aftermarket distributor 7.0% (10.5) Tampere 124 M€ (77) Duell’s established markets Net sales Adjusted EBITA Duell’s growth markets 9/2021–8/2022 9/2021–8/2022 Frölunda Key figures* • 150,000 SKUs • 500 brands Veghel, Deventer New Milton • 600 suppliers Sale
Slide 3: All powersports accessories from motorbikes to marine
All powersports accessories from motorbikes to marine Technical and spare parts 2/3 Personal equipment 1/3
Slide 4: Strong presence in all dealer channels
Strong presence in all dealer channels Sales split by customer type E-commerce Retailers Specialty shops % 25% of net 75% Repair and spare parts shops sales Powersports equipment manufacturers
Slide 5: Business Report
Business Report Q2 (December 2022-February 2023) H1 (September 2022-February 2023) 5
Slide 6: Q2: Challenging market conditions continue
Q2: Challenging market conditions continue • Constant currency growth was -2.5% Net sales decreased • Integration of the acquisitions by -5.7% proceeding as planned • Adjusted EBITA margin decreased to 3.8% (7.7%) EBITA EUR 1.0 million, • Gross margin improved from EBITA margin 3.4% Q1 22.3% to Q2 2
Slide 7: Summary of Q2 and H1 2023 financials
Summary of Q2 and H1 2023 financials Q2 2023 Q2 2022 H1 2023 H1 2022 Key figures and ratios FY 2022 (12/2022- (12/2021- (9/2022- (9/2021- (9/2021- EUR thousand 2/2023) 2/2022) 2/2023) 2/2022) 8/2022) Net sales Q2 Net sales 25,543 27,103 51,294 54,237 123,991 • Nordics -8.2% Net sales growth, % -5.7
Slide 8: Seasonality is typical in Duell's sales by quarters
Seasonality is typical in Duell's sales by quarters Quarterly net sales development, EUR million Quarterly adjusted EBITA, EUR million and adjusted EBITA, % margin 40 16 35,1 34,6 14 13,4 35 12 11,5 30 27,2 27,1 10 25,8 25,5 8,5 24,5 8,6 25 8 7,2 7,7 19,4 6,8 5,1 20 6 17,2 15,7 3,8 3,3 3,0 4 15 2,0
Slide 9: Acquisition of TranAm
Acquisition of TranAm The acquisition Company background • Acquisition is part of Duell’s growth strategy supporting • A leading UK based distributor and wholesaler of premium geographical expansion and brand portfolio development clothing and accessories for motorcycling, as well as for ski, snowbo
Slide 10: Strategic rationale for Duell
Strategic rationale for Duell • TranAm acquisition supports Duell’s geographical expansion and brand portfolio development strategy • It provides strong and establish platform for growth in The acquisition enables new growth opportunities the large UK market compared to Duell’s current presence • Du
Slide 11: Uncertainty continued in the operating environment
Uncertainty continued in the operating environment External factors Focus during financial year 2023 • Market uncertainty will continue • Despite challenging market conditions Duell continue growth strategy supported by TranAm • High inflation will weaken consumer acquisition confidence in 2023 affe
Slide 12: Outlook for financial year 2023 (unchanged)
Outlook for financial year 2023 (unchanged) • The market continues to be uncertain. The accelerating inflation and the overall economic environment have decreased consumer confidence. These factors will reduce predictability. Duell will continue to execute its growth strategy despite the uncertain m
Slide 13: Duell medium-term financial targets (unchanged)
Duell medium-term financial targets (unchanged) Target Description Latest audited report Net sales of Net sales “Net sales between €200-300m by the end of 2025, achieved Growth FY 2022 €200–300m through yearly growth organically and inorganically” €124m Adjusted EBITA margin Adjusted EBITA margin FY
Slide 14: Strategic objectives and cornerstones
Strategic objectives and cornerstones Key strategic objectives Strategic cornerstones • To become the best partner for dealers • Geographical market expansion and brand owners throughout Europe • Partner for building online sales • Strengthen the leading market position • Brand portfolio development
Slide 15: 4O nue
4O nue YEARS HQ | Mustasaari, Finland T | +358 (0) 20 118 000 E | info@duell.eu | forename.surname@duell.eu W | www.duell.eu HQ | Duell Oyj | Kauppatie 19 | 65610 Mustasaari Offices & warehouses | Finland | Sweden | Norway | Denmark | Netherlands | Germany | France | United Kingdom