Openlane, Inc. · NYSE:OPLN
Openlane — KAR Auction Services — Corporate Update (September 2021)
12 slides from Openlane's corporate update, Sep 20, 2021
Slide 1: September 20, 2021 Conference Call
// September 20, 2021 Conference Call K A R A U C T I O N S E R V I C E S , I N C .
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This document includes forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In particular, statements made in this document that are not historical facts (including but not limited to expectations, estimates, assumpt
Slide 3: 2021 Guidance
3 2 0 2 1 G U I D A N C E $95-$100M Adjusted EBITDA ~2.6 Million Vehicles sold Withdraw Annual guidance Q3 2021Full Year 2021 2021 Volume
Slide 4: Semiconductor Shortage headlines
4 “GM Plans to Idle Factories Longer Amid Chip Shortage” - Wall Street Journal | September 16, 2021 Semiconductor Shortage “Toyota, Hit by Chip Shortage, to Cut Output 40% in September” - New York Times | August 19, 2021 “Chip supply, testing woes to further curb light vehicle production in 2021” -
Slide 5: Semiconductor Shortage: Increasing Lead Times
5 Semiconductor Shortage: Increasing Lead Times Source: Susquehanna Financial Group 26.5 weeks current lead time for automotive semiconductors 2018 2019 2020 2021 all semiconductors
Slide 6: Impact On New Vehicle Production
6 Impact On New Vehicle Production -3 -2 -1 0 1 Decrease in Global Vehicle Production Due to Semiconductor Shortage -1.4M -2.6M 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 Low point Recovery begins Below normal Return to normal Source: IHS Markit m ill io n s
Slide 7: Impact On New Vehicle Sales
7 ~24% decrease from 2019 Impact On New Vehicle Sales Source: BEA; Light Weight Vehicle Sales: Autos and Light Trucks m ill io n s 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 COVID-19 Chip Shortage ~48% decrease from 2019 ~8% avg. MoM decrease since 5/21 U.S. New Car SAAR 0 5 10 15 20
Slide 8: Impact On Used Vehicle Values: Retail
8 Impact On Used Vehicle Values: Retail Black Book Used Vehicle Retention Index 75 125 175 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Source: Black Book 100 150
Slide 9: Impact On Used Vehicle Values: Wholesale
9 Impact On Used Vehicle Values: Wholesale Average Wholesale Prices - ADESA 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 5,000 7,500 10,000 12,500 15,000 Source: KAR Global
Slide 10: Impact On Off-Lease Transaction Volume At KAR
10 Impact On Off-Lease Transaction Volume At KAR Total off-lease turned in Total off-lease sold upstream Total volume flowing downstream to any auction 0 100,000 200,000 300,000 400,000 Q4 2020 Q1 2021 Q2 2021 Q3 2021 -86% -57%58% 66% 81% 86% Source: KAR Global
Slide 11: 2020 Impact To KAR Transaction Volumes
11 2019 2021E Total Commercial 2.7M 1.5M Total Dealer 1.0M 1.1M Total Combined 3.8M 2.6M 2020 Impact To KAR Transaction Volumes Numbers may not add due to rounding
Slide 12: KAR Volume Decline Mirrors Industry
12 -100% -75% -50% -25% 0% 25% Industry ADESA Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21 Jul 21 Aug 21 KAR Volume Decline Mirrors Industry US Commercial Seller Physical Auction Volumes (Industry & ADESA): 4 Week Movin
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