Delticom Ag · XETR:DEX
Delticom — H1 2007 Earnings Presentation
30 slides from Delticom's earnings presentation, Aug 22, 2007
Slide 1: Presentation on the Occasion of the Release of the Half-Year Results 2007
Presentation on the Occasion of the Release of the Half-Year Results 2007 August 22nd, 2007
Slide 2: Agenda
Agenda I H1 2007 at a Glance II Business Model III Seasonalities in Tyre Trading IV Financials V Key Investment Highlights Presentation Results H1 2007, August 22nd, 2007 I II III IV V 1
Slide 3: Agenda
Agenda I H1 2007 at a Glance II Business Model III Seasonalities in Tyre Trading IV Financials V Key Investment Highlights Presentation Results H1 2007, August 22nd, 2007 I II III IV V 2
Slide 4: Delticom Profile
Delticom Profile Business model: Sale of car tyres over the Internet 79 online shops in 30 countries, operating on established web domains with high awareness Broad product range with more than 100 tyre brands and 25,000 tyre types More than 1.5m customers Global network with more than 17,
Slide 5: H1 2007 at a Glance
H1 2007 at a Glance Sales 102.0 mio € 1 Redesign of the Tyre Distribution Chain ► (+ 35 % yoy) 2 International Growth Story ► EU, USA, Japan – ↑ + 43 % yoy EBIT-Margin: 5.3 % 3 Operational Excellence at Low Costs ► (vs. 4.9% % in H1’06) Market share in Europe 4 Excellent Growth Opportunities ► is >
Slide 6: Agenda
Agenda I H1 2007 at a Glance II Business Model III Seasonalities in Tyre Trading IV Financials V Key Investment Highlights Presentation Results H1 2007, August 22nd, 2007 I II III IV V 5
Slide 7: Delticom is European Market Leader
Delticom is European Market Leader Presentation Results H1 2007, August 22nd, 2007 I II III IV V 6
Slide 8: Internet
Internet BITKOM (Association of the German IT and Telecom Industry) Germany 2006: 6% more citizens online than 2 years ago expected to increases to >70% in 2010 (2007: 57%) BVH: German End-customers spent 10,0 bn € in the Internet in 2006, expected to rise to 10,9 bn € in 2007 Eurostat: 49
Slide 9: Tyres
Tyres Relevant: Passenger Car Tyre Replacement Market Europe 10-12 Mrd. € / year USA 12-15 Mrd. € / year Tyre Sales 2006 in Germany, according to BRV (Association of the German Tyre Industry) Passenger Car Tyres total: 47,4 mil unchanged vs. 2005 Winter tyres: 24,7 mil Forecast for 200
Slide 10: Delticom – Business Units
Delticom – Business Units eCommerce (since 2000) Wholesale (since 1999) Online Business Offline Business / Sourcing Knowledge about markets and prices B2C / B2B Synergies High volumes Intelligent software system Entry in new countries Presentation Results H1 2007, August 22nd, 2007 I II III IV V 9
Slide 11: Redesign of the Tyre Distribution Chain
Redesign of the Tyre Distribution Chain Pre-Delticom ► Delticom Redesign European Tyre Non-European Tyre European Tyre Non-European Tyre Manufacturers Manufacturers Manufacturers Manufacturers Wholesalers Delticom European Wholesalers Distribution Centers Retailers Fitting Stations B2B Customers Cus
Slide 12: Strategy
Strategy Customer Orientation Cost Leadership Growth Focus Secure sufficient supply in Lower purchase prices Utilize first-mover advantage peak times through closer co- through increased purchase through fast geographic operations with suppliers and volume and early ordering expansion into new
Slide 13: Agenda
Agenda I H1 2007 at a Glance II Business Model III Seasonalities in Tyre Trading IV Financials V Key Investment Highlights Presentation Results H1 2007, August 22nd, 2007 I II III IV V 12
Slide 14: Late Winter, Early Summer
Late Winter, Early Summer Mild winter until 12’06 ► BRV: „Winter tyre sales in 2006 were below market expectations“ But: Delticom can take advantage of supply surplus in a counter-cyclical manner Delticom revenues in Q1 were higher than expected on two counts: Additional (high-margin) sales
Slide 15: Strong Delticom Q1'07
Strong Delticom Q1‘07 Presentation Results H1 2007, August 22nd, 2007 I II III IV V 14
Slide 16: Agenda
Agenda I H1 2007 at a Glance II Business Model III Seasonalities in Tyre Trading IV Financials V Key Investment Highlights Presentation Results H1 2007, August 22nd, 2007 I II III IV V 15
Slide 17: Sourcing from Suppliers
Sourcing from Suppliers Global best price sourcing B2C forecasts disseminated to manu- facturers (early production planning) Purchasing department is reponsible for pricing (cost plus). Example: ► Strong supply-side network economics Presentation Results H1 2007, August 22nd, 2007 I II III IV
Slide 18: Selling to Customers
Selling to Customers Existing customers help to decrease saisonality in the topline Share of repurchasers increased Business still mainly driven by new customers Own survey show high customer satisfaction with price, offer and buying process ► Repurchases constitute important growth potentia
Slide 19: Financing the Inventories
Financing the Inventories ► Prepared for winter tyre season; stable operating cashflow Presentation Results H1 2007, August 22nd, 2007 I II III IV V 18
Slide 20: Strong Non-Domestic Sales in Q1'07
Strong Non-Domestic Sales in Q1’07 Home market remains the most important region more than 40% of total sales still growing European Countries are increasing in importance big EU markets (F, I, UK) contribute to topline and decrease saisonality risks smaller special markets (CH, S, SU) a
Slide 21: Strong and Robust Growth Continues
Strong and Robust Growth Continues ► H1 provides good basis for FY07, but Q4 will be pivotal Presentation Results H1 2007, August 22nd, 2007 I II III IV V 20
Slide 22: Outlook on Sales and Margins
Outlook on Sales and Margins ... Large underlying European replacement tyre market Continued sales growth ... Currently low tyre online penetration rate of >1.5% in Europe can be expected due to… ... Growth from increasing penetration of existing and new geographies ... Favorable changes in product
Slide 23: Agenda
Agenda I H1 2007 at a Glance II Business Model III Seasonalities in Tyre Trading IV Financials V Key Investment Highlights Presentation Results H1 2007, August 22nd, 2007 I II III IV V 22
Slide 24: Key Investment Highlights
Key Investment Highlights 1 Redesign of the Tyre Distribution Chain 2 International Growth Story 3 Operational Excellence at Low Costs 4 Excellent Growth Opportunities 5 Sustainable and Profitable Business Model Presentation Results H1 2007, August 22nd, 2007 I II III IV V 23
Slide 25: Vielen Dank!
Vielen Dank! Investor Relations: Frank Schuhardt Delticom AG Brühlstr. 11 30169 Hannover Germany eMail: ir@delti.com Telefon: +49-511-93634-844 Andreas Prüfer, Co-CEO Rainer Binder, Co-CEO Presentation Results H1 2007, I II III IV V August 22nd, 2007
Slide 26: Consolidated interim financial statements as of June 30, 2007
Consolidated interim financial statements as of June 30, 2007
Slide 27: Balance Sheet – Assets
Balance Sheet– Assets Presentation Results H1 2007, I II III IV V August 22nd, 2007
Slide 28: Balance Sheets – Equity and Liabilities
Balance Sheets – Equity and Liabilities Presentation Results H1 2007, I II III IV V August 22nd, 2007
Slide 29: Income Statement
Income Statement Presentation Results H1 2007, I II III IV V August 22nd, 2007
Slide 30: Cash Flow Statement
Cash Flow Statement Presentation Results H1 2007, I II III IV V August 22nd, 2007