Delticom Ag · XETR:DEX
Delticom — 9M 2013 Earnings Presentation
23 slides from Delticom's earnings presentation, Nov 7, 2013
Slide 1: On track.
On track. Aktiengesellschaft
Slide 2: Agenda
Agenda Delticom at a Glance Business Model Profit & Loss Balance Sheet Outlook 9M Report DELTICOMY 2 Hanover, 7 November 2013 ktiengeselischaf
Slide 3: Agenda
Agenda Delticom at a Glance Business Model Profit & Loss Balance Sheet Outlook 9MReport j o Hanover, 7 November 2013 At a glance Business Model Profit & Loss Balance Sheet Outlook LT ICOM 3
Slide 4: Delticom at a Glance
Delticom at a Glance 9MReport Hanover, 7 November 2013 #1 European online tyre dealer > 100 online shops in 42 countries founded 1999, IPO Oct 2006, SDAX Dec 2008 customer base: more than 6.7 million focus on replacement tyres: > 100 tyre brands, > 25,000 models other products: = motorcycle tyres, b
Slide 5: Key Financials 9M
Key Financials 9M Q313 Q312 yoy% 9M13 912 yoy% Revenues EC €m 93.3 83.8 +411.4 |) 299.8 268.7 +11.6 New Customers”) k 199 165 +20.9 634 525 +20.7 Revenues €m 96.9 87.2 +41.1 | 309.14 280.4 +10.2 Gross Margin % 24.1 25.7 -1.6p 24.3 26.2 -1.9p EBIT €m 0.8 4.3 -80.9 9.7 17.5 -44.5 EBIT Margin % 0.8 49
Slide 6: Tirendo
THRENDO « Acquisition of Tirendo Holding GmbH on Sept 16th, 2013 = Online tyre dealer tirendo.de launched in March 2012 « Tirendo has online shops in 8 countries = Company founded in Dec 2011 = Former share holders: = EMH, Project A, SevenVentures, « Jahr Asset Management and further business angels
Slide 7: Organisation
Organisation 9MReport Hanover, 7 November 2013 DELTICOM | Aktiengesellschaft Hannover ReifenDirekt.de ‘Aus dem Netz direkt auf die StraBe ReifenDirekt.ch Aus dem Netz direkt auf die StraBe ReifenDirekt.at Aus dem Netz direkt auf die StraBe 123pneus.fr dackonline.se autobandenmarktni gommadiretto.it
Slide 8: Agenda
Agenda Delticom at a Glance Business Model Profit & Loss Balance Sheet Outlook 9MReport fl I onawes + Novernber 2013 At a glance Business Model _Profit & Loss Balance Sheet Outlook D ELT! comy 8
Slide 9: Tyres and the Internet
Tyres and the Internet PC & LT Replacement Tyres Europe: > € 12 billion oO Rest 21 DE other a 1 ms 255 Western World Europe WE 220 d UK ES =» 27 15 oe IT FR 24 26 in million tyres. Source: Datamonitor, Continental, Michelin, own estimates Europeans are increasingly online... a all adults online in %
Slide 10: Redesign of the Tyre Distribution Chain
Redesign of the Tyre Distribution Chain Traditional Retail > Delticom Redesign Tyre Manufactures Tyre Manufactures Manu Wholesalers Wholesalers DELTIC Retailers DELTICOM Shops ( Customers Fitting Partners Garages ‘ Customers OMReport At a glance Business Model Profit & Loss Balance Sheet Outlook LTI
Slide 11: Agenda
Agenda Delticom at a Glance Business Model Profit & Loss Balance Sheet Outlook 9MReport j o Hanover, 7 November 2013 At a glance Business Model Profit & Loss Balance Sheet Outlook LT I c Om 41
Slide 12: Customers (ex Tirendo)
Customers (ex Tirendo) in thousands 2011 2012 2013 New Customers .. Still the main growth driver Repeat Customers / .. long replacement cycle / | : / l and customers are happy Ratio ! ! ! I ; i i H I i i H .. repeat customers t P Q3: Strong new customer growth 9OMReport i 7 9 Hanover 7 November 2013
Slide 13: Quarterly Revenues
Quarterly Revenues in € million 2014 2012 2013 +12% _3% 175 - - 175 150 - 1% - 150 125 - +10% - _5% - - 125 +25% +11% 100 - +15% ~ +0% -12% - 5y - 100 75 = - - - 75 50 - - - - 50 25 - a + ‘i - - 25 x 8 of 7 - - 0 Q2 Q3 Q4 4 Qi Qi Q2 Q3 Q4 85.4 182.3 ce) xe fe) NO ce) wo Le) P Fluctuations in growth
Slide 14: Quarterly Gross/EBIT Margins
Quarterly Gross/EBIT Margins Gross Margin EBIT Margin 20114 2012 2013 30% - “18 ~ 30% 0.3 “ 1.6 0.1 Or -0.1 . _ . . -3.9 ~0.9 25% - - - “2.9 1.6 - 25% 20% = ~ - = 20% 15% - - - - 15% 10% - ~ ~ - 10% - - - — 5% 5% g x - a % S = is) se) ~ od (o>) od 0% - ~ - = 0% Qt Q2 Q3 Q4 Q4 Q2 Q3 Q4 Qt Q2 Q3 Q4 >
Slide 15: Quarterly EBIT
Quarterly EBIT in € million 2011 2012 2013 +0% 25 - - 25 20 - - 20 -39% 15 - +13% ~1is +51% ~23% 10 - - 10 +11% -35% -55% 5- -42% 09% 56% -5 00 00 -81% 7 “A We) st 3 | 09 ite) od fo>) N O- a -0 Q4 Q2 Q3 Q4 Qt Q2 Q3 Q4 Q4 Q2 Q3 Q4 > Tirendo brand will need additional investment oeeep November 2013 At
Slide 16: P&L Drivers (Q3)
P&L Drivers (Q3) EUR yoy % of Revenues Q313 —-Q312 % Q313__Q312 _chng Revenues 96.9 87.2 11.1 100.0 100.0 0.0 Tirendo consolidated from 16.09. Cost of sales 73.5 64.8 13.6 75.9 74.3 1.6 Gross Profit (ex ooi) 23.3 22.4 4.0 24.1 25.7 -1.6 margin decrease less pronounced Direct costs 15.6 12.9 21.2 16.
Slide 17: P&L Drivers (9M)
P&L Drivers (QM) EUR yoy % of Revenues 9m13_ 9M12 % 9M13__9M12__chng Revenues 309.1 280.4 10.2 100.0 100.0 0.0 Tirendo consolidated from 16.09. Cost of sales 234.1 206.9 13.1 75.7 73.8 1.9 Gross Profit (ex ooi) 75.0 73.5 2.0 24.3 26.2 -1.9 Direct costs 47.5 39.8 19.3 15.4 14.2 1.2 Direct costs (dep.
Slide 18: Agenda
Agenda Delticom at a Glance Business Model Profit & Loss Balance Sheet Outlook 9MReport j o Hanover, 7 November 2013 At a glance Business Model Profit & Loss Balance Sheet Outlook DE LT ICOM 18
Slide 19: Working Capital Management
Working Capital Management 2011 2012 2013 3 - 2 . 28 . 5 Accounts receivable a 5 F So. 7 3 a 7 on | oO ' oS 6 S & a g co s nt . 5 . Ss Inventories 2 + °? g i © g 7 8 3 ” a a 5 2 gS 8 » & = : = “ Accounts payable | i | | | : | n : 7 : a : $ : T is : Qi g © : 2 : iy Q1 C Q3 Q4 :; Q1 Q2 Qs Q4 :; Qi Q Q
Slide 20: Liquidity Bridge
80 AO 30 10 1 €T'60'0€ Aypinbsy 9.2 uonejsues| X4 Suloueul{ 17.5 -0.2 sjuawsed puapiaig anyea Aynb3 opuall | sjessy 9/q!sue}U) quawdinby pue quel ‘Miadolg sexe] -14.7 ysas9]u] sajqeked 24.2 | 0.0 sajqeaacay 5.8 -0.1 Sa1JO}UBAU] in € million Liquidity Bridge SUOISIAOJq Jayyo -0.2 2.9 uoneloasdaq Ld4
Slide 21: Agenda
Agenda Delticom at a Glance Business Model Profit & Loss Balance Sheet Outlook 9MReport a \ S onawes + Novernber 2013 At a glance Business Model _Profit & Loss Balance Sheet Outlook LT I c Om 21
Slide 22: Outlook
Outlook = Replacement tyre market Q3 = Germany: sell-out Jan-Sept (wdk): summer —10.2%, winter +3.3% = Europe: selkin 9M (ETRMA): —2.0% ETRMA (press release), 15 October 2013 Reifenpresse.de, 24 September 2013 “After a very weak start of the year, “Haken hinterm Sommergeschaft — Und was kommt jetzt?
Slide 23: Summary
Summary #1 European online tyre retailer Resilient and profitable business model Strong brands and superior execution 4 | Redesign of the tyre distribution chain Excellent growth opportunities 9MReport Hanover, 7 November 2013 Investor Relations: Melanie Gereke Delticom AG Brihistr. 14. 30169 Hanove