Bilia Ab Class A · OMXSTO:BILI_A
Bilia Ab Class A — Investor Day (November 2024)
174 slides from Bilia Ab Class A's investor day presentation, Nov 8, 2024
Slide 1: Bilia Capital Markets Day
Slide 2: Capital Markets Day 2024 presenters
CAPITAL MARKETS DAY 2024 a Per Avander Carl Fredrik Ewetz Tommy Arthursson Stefan Nordstrém CEO Bilia AB IR & M&A Business Development Deputy CEO Bilia AB Manager ‘ ~ Mathias Nilsson Anders Rydheimer Frode Hebnes Kristina Franzén CEO Bilia Personbilar AB Director Communication, CEO Bilia Norway CFO
Slide 3: Car brands
Volkswagen ID.7 Tourer BMW is Touring os — ® Yin DY , eS Mercedes-Benz TOYOTA E-Klass Range Rover Landcruiser Porsche Macan All-Terrain Sport 4 Electric _ ‘ << — an
Slide 4: Bilia Group
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Slide 5: Bilia Group
BILIA GROUP Bilia -— with customer focus ¢ Sweden, Norway, Belgium, and Luxembourg ¢ Around 5,500 employees at ~170 facilities ° 16 car brands ¢ 90,000 delivered new and used cars 2023 ¢ 1,000,000 service customers ° Turnover 2023 SEK ~39 bn ¢ Listed on Nasdaq OMX Stockholm — Large Cap ¢ Business ar
Slide 6: Focus on new and existing businesses
BILIA GROUP Focus on new and existing businesses ¢ Develop acquired companies * Improve the service business ¢ New organization in Sweden ¢ Balance between improving margins and acquisition ¢ Shareholder value
Slide 7: Bilia market share
BILIA GROUP Bilia market share January—September 2024 New cars market share ° ° * Sweden 9.5% » °°, @ * Norway 5.5% 6f, a @ * Belgium 0.6% é.. ¢ Luxembourg 5.1% ¢
Slide 8: We cooperate with strong brands
BILIAGROUP, We cooperatewith strong brands , ae ya ; i ; | Nf @nswisuee Y yy be vorve ®@ @ OO = TOYOTA Mercedes Benz, JAGUAR 21% 35% 21% 13% 26% 25% oe Oa @ PENG ¢ Usha) Volkswagen 21% 21% 33% 79% 46% 3% W\
Slide 9: Bilia's market share per brand
Bilia’s market share per brand vouvo @) & a >< PENG TOYOTA JAGUAR 19% 31% 1% 10% 56% CF La. & 30% 14% 28%
Slide 10: We cooperate with strong brands
BILIAGROUP, 7 ee We cooperate with strong brands _® Belgium @ Luxembourg er Bilia’s market share per brand e = Bilia’s market share per brand i om sey on
Slide 11: The journey towards the best service company
The journey towards the best service company in the business ° 47 acquisitions — new brands and new countries 2012-2023 * Organic growth, more service offers 120% ¢ Operating margin v ~ 2023: 4.2% grown - 2012: 1.5%
Slide 12: Our strategies
Our strategies
Slide 13: Our strategies
OUR STRATEGIES Our strategies Sustainable business strategy Internal Growth strategy strategy
Slide 14: Our strategies: Sustainable business strategy
Slide 15: Sustainable business strategy
OUR STRATEGIES - Sustainable business strategy ioe One- -stop- shop. Car purchase Financing, insurance, CarPay, service subscriptions, tyre hotels, accessory & tyre sales Car dismantling Recycling, used car parts Rental cars Rentals and Flexlease Stores Accessories, spare parts, Damage centres e-com
Slide 16: Circular business strategy
Newcar is Bilia purchases Bilia performs manufactured ) used cars car dismantling Bilia performs service and repair of cars t Bilia offers used parts at repair
Slide 17: Our strategies: Internal strategy
Slide 18: Internal strategy
Slide 19: Internal strategy, strong leadership and proud employees
Internal strategy, Strong leadership & Proud employees () = Benchmark Clarity
Slide 20: Internal strategy: Strong leadership
Internal strategy Strong leadership
Slide 21: Our strategies: Growth strategy
Slide 22: Growth strategy for continued European growth
OUR STRATEGIES Growth strategy for continued European growth Current markets Potential growth ¢ Sweden ¢ Expansion in existing markets ¢« Norway > ¢ Expansion in existing car brands * Belgium * Other Western European countries e Luxembourg ¢ Mobilia Care
Slide 23: The Business
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Slide 24: The Service Business
THE SERVICE BUSINESS A The Service Business Important for our profitability EY) &Y Share of Bilia’s Share of Bilia’s Net turnover Operational earnings R12 Q3 2024 R12 Q3 2024
Slide 25: The Car Business
ar Busi The
Slide 26: Bilia's car brands, a strong portfolio
CAR BUSINESS, Bilia’s car brands — a strong portfolio = voLuvo FE ae &) >< PENG TOYOTA JAGUAR 5 ©. © @ © et 7 Volkswagen Mercedes-Benz
Slide 27: New business area Importer Sweden and Norway
Slide 28: Importer of Jaguar & Land Rover
THE CAR BUSINESS Importer of Jaguar & Land Rover ¢ New business area ¢ Better control of the business area « Anew revenue stream ¢ Potential importer for other brands in the future if the opportunity would arise
Slide 29: Deliveries of new and used cars and order backlog
THE CAR BUSINESS Deliveries of new and used cars and order backlog for new cars Deliveries of new cars Deliveries of used cars Order backlog new cars Sep 2023 Sweden -9% (-4%) 20% (15%) 12,201 Norway -12%(-22%) 2,409 — ee ik pay Total -9% (-8%) 12% (9%) 17,858 1) [In brackets, change for comparable
Slide 30: Weak total new car market
THE CAR BUSINESS Weak total new car market Sweden Norway Belgium Luxembourg Normal total market $20,000 150,000 510,000 52,000 Total market 2024 255,000 120,000 460,000 45,000
Slide 31: Market
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Slide 32: Current market situation
‘ QE MARKET SITUATION Current es the car INCUSE LY * Signs of; private customers slowly turns - Campaigns * Continued improvementin as * Good demand for used cars. \s ¢ Retailers position A
Slide 33: Highlights of industry trends
Highlights i In /, ect Industry / Consolidation peel Agency model ~ Pier sorsy Car sharing Subscriptions Cinineee> . Online sales brands % SX ‘ /» SN IN SW
Slide 34: Market trends
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Slide 35: Market trends
MARKET TRENDS DISPUTE Volvo quits the car subscription business an . _ . » EU approves China EV tariffs; negotiations to continue The automaker will transfer its Care by Volvo programs in Germany, the Netherlands, Sweden and Norway to new owners while phasing it out in the U.K. and the U.S. Ten memb
Slide 36: Market trends agenda
MARKET TRENDS Agenda ¢« Developments since the last CMD 2022 ¢ Customers prefer omni-channel e Agency — developments ¢ Consolidation in car distribution ¢ Service market towards 2030
Slide 37: We are members of ICDP
MARKET TRENDS We are members of ICDP * International research and consulting organisation specialising in automotive retailing and aftersales ® anne * Leading authority in its field — data, insight and implementation support ¢ European perspective ¢ Vast network in the industry ¢ Vehicle manufacture
Slide 38: Looking back to CMD 2022
Slide 39: Market trends at CMD 2022
MARKET TRENDS Market trends at CMD 2022 There are and will be changes in the distribution of cars and the service market ything * Howto handle the changes? * There are different routes to How to ps? take. * Each and everyone must find one’s own way. Product and technology ada; °
Slide 40: Market trends at CMD 2022
MARKET TRENDS Market trends at CMD 2022 Volvo Cars to go all electric by 2030 as it shifts There are and will be changes in the Ped 5 online distribution of cars and the service market ‘Online sales Electrification | Overdemand Mercedes axes cheaper models in bid for luxury brand status argins close
Slide 41: The context is slightly different
MARKET TRENDS - THE CONTEXT IS SLIGHTLY DIFFERENT Bie ~f Me | RS { V2 From zero percent inter: . . ” pe situation where ney > Softer mar! 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 ye / —— the chart shows the Riksb@nk’s policy rate f last 10 years
Slide 42: Oversupply rather than overdemand
x4 ; ‘< New car registrations: -18.3% in August »: 2024; BEV market share down by almos Oversupply —- rather than overdemand * Supply chain disruptions are fixed * Markets are soft * Sweden and Norway have been soft for the last years ¢ Europe is now in a similar situation > Oversupply - more intens
Slide 43: BEV share of the market is not growing
MARKET TRENDS ~ THE CONTEXT IS SLIGHTLY DIFFERENT BEV share of the market is not growing - for now * Difficulties to break into the larger customer segments — for now - after the early adopters have bought * OEMs are in a difficult situation with pressure to reduce their CO2 emissions and not enough
Slide 44: Chinese brands share of total market
FY FY R12 Sept YTD Sept Registrations Europe 2022 2023 2024 2024 MG 113 803 231 322 246 107 179 133 BYD 5 315 15 588 35 745 29 604 Polestar 32 254 36 027 29 492 21 780 Lynk&Co Lotus 26 400 460 22 102 2 615 7 032 3 272 5 328 2 378 • Nio 1 765 2 403 2 041 1 287 Zeekr 13 193 1 464 1 361 Maxus 1 536 1 0
Slide 45: Omni-channel
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Slide 46: Consumers want omni-channel
MARKET TREN. OMNI-CHANNEL. Consumers want omni-channel Many OEMs have explored online sales inspired by Tesla It has not been a success so far Even Tesla is becoming more physical Polestar and others are now building networks of retail partners in markets
Slide 47: Consumers want omni-channel
MARKET TRENDS ~ OMNI-CHANNEL Consumers want omni-channel Consumers want to be able to use more than one channel in their buying process Ideal buying journey is Entirely online <4% Entirely offline 14% A mix of online and offline- >80% omni-channel Source: ICDP. oyna oorey ELEN ~ Source: ICDP
Slide 48: Local representation important for the customer
MARKET TRENDS ~ OMNI-CHANNEL Dealers visited and total visits to these dealers (includes visit when placing the order) orNw c 2013 2014 «2015 2016 «2017 2018-2019 2020-2021 2022 —*—Dealers visited -e=Deeler visits 2023 Share of new car buyers that took a test drive 2014 «2015 «2016 «2017-2018» 2019-
Slide 49: Agency
Slide 50: Many OEMs have aimed for agency
MARKET TRENDS - AGENCY, Many OEMs have aimed for agency Ambitions with agency « Away to create seamless omni- channel * Potential cost savings if implemented well * Control the price to the customer There is no such thing as “non- genuine’ agency Any agreement that does not comply with the requireme
Slide 51: Agency implementations and plans
MARKET TRENDS - AGENCY, Agency & bil; - implementations and plans ° a 3 ong r differe ands in differe’ markets * Implementations are com Clare] require major changes to — eee — Culture 5 , — Capabilities 7 Systems ml Oversupply — Relations * Business cases have changed the last years Overdemand -+ C
Slide 52: Agency implementations and plans
MARKET TRENDS ~ AGENCY Agency - implementations and plans ‘The momentum is with agency, though not without challenges * Some brands have abandoned agency - at least for now Franchise Direct ° Ford rT * Jaguar Land Rover ee * Volvo etc. @ZeeKR - <anio| * Others continue with implementations, L . ae C
Slide 53: Consolidation
Slide 54: Consolidation in car distribution continues
MARKET TRENDS ~ CONSOLIDATION The consolidation in car distribution continues Europe’s top 50 dealer groups ¢ Now 16% of all new car sales in Europe ¢ Forecasted to be 20% in 2030 - an increase with 2% in two years As we have shown in our Top 50 rankings, the biggest dealer groups are getting bigger
Slide 55: Reasons for consolidation
MARKET TRENDS ~ CONSOLIDATION The consolidation in car distribution continues © Purchasing scale * Cost amortisation * Brand-building * Capital access * Borrowing costs * Diversification of risk Technology § Management * Data leverage '¢ Discipline * IT integration * Quality skills * Strength in dep
Slide 56: Service market
Slide 57: Service market development towards 2030
MARKET TRENDS ~ SERVICE MARKET ICDP’s view The service market development towards 2030 ICDP has developed a simulation model to forecast the development of the service market (repair and maintenance) towards 2030 Many variables to consider New car market and the car pare Speed and effect of electrif
Slide 58: Damage repair market development towards 2030
MARKET TRENDS ~ SERVICE MARKET ICDP’s view The damage repair market development towards 2030 ICDP simulated in 2017 the effects on the damage repair market towards 2030 ADAS + lower mileage > Fewer incidents and repairs > Market invaue expecte: M > Higher cost US Colnn|Pers Gels Problems for smaller
Slide 59: Damage repair market development towards 2030
MARKET TRENDS ~ SERVICE MARKET ICDP’s view The damage repair market development towards 2030 ICDP simulated in 2017 the effects on the damage repair market towards 2030 ADAS + lower mileage > Fewer incidents and repairs > Market — expecte to decrease 10-20% M | > Higher cost Route Colnnf sors Gels P
Slide 60: The Service Business
The Service Business
Slide 61: The elements of the Service Business
THE SERVICE BUSINESS The elements of the Service Business Service Workshop Tyres Repair Workshop Rims Delivery Workshop Car glass Body shop Spare parts Paint shop Car dismantling
Slide 62: The Service Business
THE SERVICE BUSINESS A The Service Business Important for our profitability Ee) &Y Share of Bilia’s Share of Bilia’s Net turnover Operational earnings R12 Q3 2024 R12 Q3 2024
Slide 63: Service business turnover and earnings
January-September 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 Turnover SEK M 2,919 | 2,858 | 3,137 | 3,755 | 4,303 | 4,663 | 5,024 | 4,976 | 5,555 | 5,801 | 6,380 | 6,981 Operationalearnings SEKM | 212 247 309 389 469 515 630 781 902 793 777 794, Operational mar
Slide 64: Service offering and customers
f snes a Se ..ando ~ Wheel | » alignment | Brake oil Tyres " Wheels » lem | — ~~ ~ 1,000,000 customers
Slide 65: Example of new other services
THE SERVICE BUSINESS Example of new other services New quick examination of cars arriving into the workshop ° Identifies need for wheel alignment * Identifies car damages
Slide 66: Our loyalty system
THE SERVICE BUSINESS Our loyalty system starts with the Car Business... * Our advantage: Sells approx 100,000 new and used cars per year * Our challenge: Tie the customer closer to Bilia in the tough competition ¢ Subscriptions on service & tyre hotels: The customer visits Bilia facilities 3-4 times
Slide 67: Service subscriptions
THE SERVICE BUSINESS Important areas W service subscriptions ¢ 118,000 service subscriptions Q3 2024 ¢ Average yearly growth: 13 % ¢ Focus on used cars - creates loyalty
Slide 68: Acquisition
Slide 69: Acquisition criteria
Acquisition criteria ¢ Businesses we prefer and believe in. * Car brands where we can be at least 10-15% of the brand in Sweden or Norway. ¢ Great development potential in: - Used cars - Service workshops - Body workshops — lack of paint workshops * "Own businesses”
Slide 70: Business Case Toyota
Slide 71: Acquisition history Toyota
ISINESS CASE TOYOTA Aquisition history. Toyota in Sweden 2014 2016 2017 Malm6 Bergslagen Stockholm Results at the time of acquisition of all companies, 35 MSEK
Slide 72: Business case Toyota Used Cars
Slide 73: Target on
* Target on 4 Or oy
Slide 74: Business case Toyota Service business
Slide 75: Increased number of technicians
¢ Increased n er a techniciahs Ay
Slide 76: Service
Service —. Poctmd 2017 2018 20 2021 2022 2023 2024 2017 2018 2019
Slide 77: Another example Bilia Porsche
Slide 78: Bilia's way of working
a's way of working
Slide 79: Business Excellence
BUSINESS EXCELLENCE Business Excellence Mission Business Excellence develops Bilia'’s working methods for higher profitability and more satisfied customers by: * Flow Efficiency * Implement and follow up Bilia's processes, RACE * Coaching * Efficiency through Process Development * Best Practice -acr
Slide 80: Business Excellence
BUSINESS EXCELLENCE Business Excellence Bilia’s way of working
Slide 81: Potential in the Service workshops, Sweden
Slide 82: Mobilia Care, Bilia's new business area
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Slide 85: Mobilia Care Car Dismantling
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Slide 87: Circular business strategy: From car to reused parts
Slide 88: Bilia Reuse
Slide 89: Mobilia Care Bilia Outlet
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Slide 92: Mobilia Care Body & Paint workshops
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Slide 95: Expansion of the network, example
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Slide 97: Development digital services
Slide 98: Damage frequency, 0-3 years
Slide 99: Development of the average damage cost
Slide 100: Development of the vehicle stock in Sweden
Slide 101: Mobilia Care Car glass
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Slide 103: Car glass Concept
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Slide 105: Mobilia Care Tyres and Rims
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Slide 109: Reference customers
Slide 110: Tyre hotel Gothenburg
Slide 111: Tyre hotel Stockholm
Slide 112: Tyre hotel Stockholm
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Slide 114: Electrification
Slide 115: Electrification
Slide 116: The electrification will take longer time...
Slide 117: The electrification will take longer time...
Slide 118: The electrification will take longer time...
Slide 119: The electrification will take longer time...
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Slide 151: Organic Growth Service Business, %
9,6% 7,4% 7,5% 6,6% 6,6% 6,1% 4,5% 3,9% 2,5% 1,2% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q3 YTD Organic Growth Service Business, %
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