Kamux Oyj · OMXHEX:KAMUX
Kamux Oyj — Q2 2024 Earnings Presentation
28 slides from Kamux Oyj's earnings presentation, Aug 16, 2024
Slide 1: Revenue decreased and adjusted operating profit decreased significantly, a weak Q2 in Sweden
Revenue decreased and adjusted operating profit decreased significantly, a weak Q2 in Sweden Q2 2024 Results CEO Tapio Pajuharju & CFO Jukka Havia Q2 2024 RESULTS AUGUST 16, 2024 1
Slide 2: Table of contents
Table of contents Q2 2024 Results 1 Q2 in brief 2 Market position, Q2 Highlights, Strategy 3 Improving productivity and efficiency 4 Financial development 5 Outlook and financial targets, Summary Q2 2024 RESULTS AUGUST 16, 2024 2
Slide 3: Clear tightening of sourcing market in all operating countries, volume growth below expectations
Clear tightening of sourcing market in all operating countries, volume growth below expectations Revenue from integrated services Revenue decreased -0.9% to EUR Adjusted operating developed favorably and was EUR 252.6 million (255.0), primarily profit decreased by 13.6 million (12.4), or 5.4% (4.9)
Slide 4: Used car sales volumes normalizing in all Kamux operating countries
Used car sales volumes normalizing in all Kamux operating countries Market Market Kamux Market development in Q2 2024 Kamux position and size market development in Q2 2024 New passenger car (2024) share registrations across Finland ~0.6 million ~8.0% We estimate that the market Kamux maintained its
Slide 5: Revenue and profit impacted by underperformance in Sweden, all markets challenged by lower margins and inflated costs
Revenue and profit impacted by underperformance in Sweden, all markets challenged by lower margins and inflated costs 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 2021 2022
Slide 6: Volume growth continued in Germany, demand ahead of supply in Finland. In Sweden, facing sales issues
Volume growth continued in Germany, demand ahead of supply in Finland. In Sweden, facing sales issues and decreasing volumes Sold cars (pcs) 19,364 -1.0% 20,000 18,699 1,567 18,000 1,422 16,952 17,215 17,037 16,728 16,354 1,223 1,414 16,137 16,000 1,397 15,601 15,688 15,324 3,529 1,684 14,681 1,322
Slide 7: Kamux Plus growth solid, also finance fee development favorable
Kamux Plus growth solid, also finance fee development favorable Revenue from integrated services MEUR 16 15,3 15,4 10% 13,6 13,4 13,6 9% 14 12,9 12,8 13,0 12,4 11,8 11,5 8% 12 6,9 % 10,7 6,4 % 7% 10 5,6 % 5,3 % 5,2 % 5,4 % 6% 5,2 % 5,0 % 5,0 % 4,9 % 4,8 % 8 5% 4,2 % 4% 6 3% 4 2% 2 1% 0 0% Q3/21 Q4/2
Slide 8: Changes in showroom network
Changes in showroom network Q2/24 Hyvinkää showroom moved to new premises Kamux Worx –showroom opened in Hyvinkää Lakalaiva flagship showroom opened end of May Q2/24 Norrköping showroom closed end of April Sundsvall and Helsingborg to move to new premises Q3/24 Closure of Heron City and Norrtälje en
Slide 9: Tight sourcing market led to lack of relevant passenger cars and stable volume development in Finland
Tight sourcing market led to lack of relevant passenger cars and stable volume development in Finland • Passenger car demand was at a good level, but slowed down FY 2023 Revenue MEUR 698.0 towards quarter end; demand for commercial vehicles was Adjusted EBIT margin 4.1% subdued • Sourcing market was
Slide 10: Challenge in Sweden bigger than estimated, strong underperformance in sales and sourcing
Challenge in Sweden bigger than estimated, strong underperformance in sales and sourcing • Significant decline in number of cars sold and external FY 2023 Revenue MEUR 283.4 revenue despite solid market Adjusted EBIT margin 0.1% • Onboarding of new sales staff taking longer than expected and impleme
Slide 11: Strong volume and revenue growth in Germany, adj. EBIT significantly improved but still slightly negative
Strong volume and revenue growth in Germany, adj. EBIT significantly improved but still slightly negative • Good demand for used cars in Kamux’s operating FY 2023 Revenue MEUR 102.1 area boosting volume growth Adjusted EBIT margin -1.6% • Strong volume growth driven by Düren and Hameln showrooms res
Slide 12: Kamux is Europe's third largest used car retailer
Kamux is Europe’s third largest used car retailer Largest used car Home # of operating Pcs in 2023 dealers in Europe in country countries 2023 Aures Holdings Czechia 4 98,134 Aramis France 6 81,618 Kamux Finland 3 68,257 Autohero Germany 9 63,066 Q2 2024 RESULTS AUGUST 16, 2024 12 SOURCE: COMPANY QU
Slide 13: Become the #1 used car retailer in Europe
OUR VISION Become the #1 used car retailer in Europe Q2 2024 RESULTS AUGUST 16, 2024 13
Slide 14: Improving productivity and efficiency
Improving productivity and efficiency • Acceleration of productivity and efficiency improvements vs. original strategic plan • Targeting annualized savings of EUR 5.0-7.0 million in total Industrialize • Timeline: H2/2025 and standardize operations • Indirect sourcing across value chain • Standardiz
Slide 15: M&A to accelerate growth
CUSTOMER PROMISE OPERATIONAL EFFICIENCY Become the most Industrialize friendly, convenient and standardize and trustworthy used operations across car retailer value chain M&A TO ACCELERATE GROWTH Customer-centric offering Global and local for consumers and purchasing teams to professionals utilize p
Slide 16: Financial development
Financial development Q2 2024 RESULTS AUGUST 16, 2024 16
Slide 17: Finland and Sweden lagging behind Q2/23 due to topline and margins, but Germany steadily improving profitability
Finland and Sweden lagging behind Q2/23 due to topline and margins, but Germany steadily improving profitability • Revenue growth in Finland driven by somewhat higher average sales price and in Germany by volumes from new stores, while Sweden volumes significantly down • Gross margin EUR 1,449 per c
Slide 18: Key Figures
Key Figures (MEUR) 4-6/2024 4-6/2023 Change, % 1-6/2024 1-6/2023 Change, % 1–12/2023 Revenue 252.6 255.0 -0,9% 493.4 478.1 3.2% 1,002.1 Gross profit 24.7 26.3 -6.1% 49.0 47.0 4.3% 102.5 as percentage of revenue, % 9.8% 10.3% 9.9% 9.8% 10.2% Operating profit (EBIT) 2.1 3.9 -45.9% 4.4 4.5 -1.8% 15.8 a
Slide 19: No major changes in net working capital seasonality
No major changes in net working capital seasonality Net Working Capital (EUR million) Inventories (EUR million) 130 150 +4.9% -4.4% 120 140 110 130 100 120 110 90 100 80 90 70 80 60 70 50 60 40 50 40 30 30 20 20 10 10 0 0 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q224 Q321 Q421 Q122 Q22
Slide 20: Tight sourcing market impact on car purchasing visible in cash flow
Tight sourcing market impact on car purchasing visible in cash flow Cash Flow from Operating Activities Components of Cash Flow from Operating Activities (EUR million) Q2 2024 (EUR million) 30 7 25 6 20 15 5 -2.4 10 4 5 2,1 6.0 0 3 -5 2 -1.8 -10 -15 1 0.2 -20 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223
Slide 21: Dividend from 2023
Dividend from 2023 • AGM decided that a dividend of EUR 0.17 per share (EUR 0.15 per share) be paid in two instalments • Earnings per share were EUR 0.24 (0.27) • Payout ratio is 71% (55%) • Dividend paid in two instalments • EUR 0.07 per share was paid on April 29, 2024 • EUR 0.10 per share will be
Slide 22: Outlook and financial targets
Outlook and financial targets Q2 2024 RESULTS AUGUST 16, 2024 22
Slide 23: Tracking progress towards our long-term targets
Tracking progress towards our long-term targets LONG-TERM TARGET FY 2021 FY 2022 FY 2023 LTM(1 FINANCIAL Sold cars, pcs 100,000 / year 68,429 62,922 68,257 68,892 Revenue, MEUR 1,500 / year 937 969 1,002 1,017 Adj. EBIT margin, % 4% 3.3% 1.8% 1.8% 1.8% NON-FINANCIAL Q2/24 NPS(2 60 50 49 eNPS(3 40 27
Slide 24: Outlook for 2024
OUTLOOK FOR 2024 Kamux expects its adjusted operating profit for 2024 to exceed its 2023 adjusted operating profit, which was EUR 18.0 million. Q2 2024 RESULTS AUGUST 16, 2024 24
Slide 25: Clear tightening of sourcing market in all operating countries, volume growth below expectations
Clear tightening of sourcing market in all operating countries, volume growth below expectations Revenue from integrated services Revenue decreased -0.9% to EUR Adjusted operating developed favorably and was EUR 252.6 million (255.0), primarily profit decreased by 13.6 million (12.4), or 5.4% (4.9)
Slide 26: Q&A
Q&A Q2 2024 RESULTS AUGUST 16, 2024 26
Slide 27: Thank you!
Thank you! Q2 2024 RESULTS AUGUST 16, 2024 27
Slide 28: 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