D'ieteren Group Sa/nv · EURONEXT:DIE
D'ieteren Group Sa/nv — Belron — Investor Day (April 2022)
37 slides from D'ieteren Group Sa/nv's investor day presentation, Apr 28, 2022
Slide 1: Belron
“Ca BELRON
Slide 2: Today's presenters
Today's presenters Gary Lubner Humphrey Singer CEO CFO Years of Belron Service: 32 Years of Belron Service: 2 Previously: CFO Marks & Spencer, Dixons Carphone, Coca-Cola SS Dileteren Group Investor Day 2 1805 Eo
Slide 3: Agenda
/ \ge nda I. Who We Are & What We Do Il. Our Market & Positioning . Our Performance /, Our Ambition Current Trading . Key Takeaways
Slide 4: Belron today - at a glance
Belron today -— at a glance VGRR & Recalibration #1 company in the world VGRR & Recalibration 12.2M jobs in 2021 Group Net 83.4 Promoter Score 29,388 Employees VGRR consumer served 1 every 2 seconds Global presence, 37 countries! served Rest of World 13% North Eurozone America 31% 56% Market leading
Slide 5: World leader in VGRR, Recalibration & VAPS service areas with structural tailwinds
World leader in VGRR, Recalibration & VAPS 3 service areas with highly positive structural tailwinds of value growth = +s - Ba Belron’s core VGRR services Significant growth driver Significant cross-sell . opportunity at strong margin 9m Jobs 3.2m Jobs 1.9m Recalibrations 21% Attachment Rate 74% of
Slide 6: Making a difference
THE NATURAL CHOICE IN VGRRR CUSTOMER PEOPLE MAKING A DIFFERENCE SOCIETY FINANCIAL SPIRIT OF BELRON / RESPONSIBLE BUSINESS INSPIRING LEADERSHIP
Slide 7: Pull, push and moment of truth channels
Smithe Smith eee) “Pull” a AutoGlass Speedy Giass. “Moment of Truth” @ i Allstate. AVIVA EURAP ppeco Allianz @ “Push” co
Slide 8: Belron has customer delight at the heart of everything & everyone
Belron has customer delight at the heart of everything & everyone The 560°Customer experience — solving People’s problems with real care (1) Customer-oriented digital solutions for job booking At time of damage occurring, Customers contact Belron via a complete omnichannel solution 24/7 and 365 days
Slide 9: Trusted partner of choice for insurers in all markets
Trusted partner of choice for insurers in all markets Belron’s clear value proposition to insurance companies No fraudulent claims Unrivalled procurement capabilities Dense, nation-wide network allows for lower service costs “Repair-first” policy Claims handling TPA offering and integrated services
Slide 10: A purpose-led business with strong people values
A purpose-led business with strong people values A business driven by a clear & consistent purpose... ...built on strong people-centred values + Deeply embedded Purpose of “making a difference with + Unique culture based on strong ‘Spirit of Belron’ values: real care” for customers, people, society
Slide 11: Best of Belron
Best of Belron Celebration of our Technicians’ excellence every two years Spirit of Belron challenge Annual celebration of Belron culture & generosity of spirit Weekend with thousands of staff from 29 countries running, walking, cycling & swimming for charity ROUND-THE WoRLD 2021 GRAND TOTAL 2 s) ha
Slide 12: Signatory to UN Global Compact
€8.6m Local Giving Signatory 11 businesses Glass recycling Reducing CO 2 to UN Global - Gold 72% emissions per Compact prime job 1 business Maximizing - Platinum recycling €5.4m Route opportunities optimisation Top 5% overall planning €5m Eco-driving BELRON Ronnie Lubner training Charitable Foundati
Slide 13: Increasing focus around the Responsible Business framework
.. With increasing focus around the Responsible Business framework DOING BUSINESS RESPONSIBLY Reducing waste and Driving down building a circular economy emissions Promoting diversity equity, Giving back - O5Y inclusion and wellbeing opportunity Target: 95% glass waste 1; Une) fecycledinylendi2025 S
Slide 14: Inspiring leadership: team culture of ambition & performance
Inspiring leadership: team culture of ambition & performance Gary Lubner Humphrey Singer CEO Group CFO e 32 years at Belron e 2 years at Belron e Previously: CFO Marks & Spencer, Dixons Carphone, Coca-Cola Gérard Damski + bb Nigel Doggett Tom Feeney Renee Cacchillo Regional General Regional General
Slide 15: Agenda
/ \ge nda I. Who We Are & What We Do Il. Our Market & Positioning Ill. Our Performance IV. Our Ambition V. Current Trading VI. Key Takeaways
Slide 16: Large VGRR segment underpinned by structural tailwinds
Large VGRR segment underpinned by structural tailwinds Total VGRR segment value in Belron’s top 10 countries c.+5% p.a. € billions, excludes recalibration and VAPS 8.8 8.2 7.8 7.4 7.5 7.0 6.7 2015 2016 2017 2018 2019 2020 2021 SS Source: Company estimates, please refer to disclaimer at end of presen
Slide 17: Windscreen complexity increase driven by technology
Windscreen complexity increase driven by technology The 1990s windscreen The 2020 windscreen ¢ Smaller total surface area ADAS bracket Rain sensor 60% fitment 23% fitment ¢ Minimal technical complexity Encapsulation Heated More simple curvature of 53% fitment 12% fitment glass : Solar Acoustic ¢ Low
Slide 18: Recalibration penetration by country
80% 74% Germany 70% Rest of Top 10 68% France 60% 54% US 40% 20% 7% 5% 4% 2% 0% • 2014 2016 2018 2020 2022F 2024F 2026F 2028F 2030F • •
Slide 19: Unique global reach, leadership positions & scale
Unique global reach, leadership positions & scale e The business is organised in 3 regions: North America, Eurozone and RoW e Presence in 37 countries: 19 countries directly and 18 countries through franchises Top 10 countries Rank e Clear market leadership in all key countries of operation North Am
Slide 20: Agenda
/ \ge nda I. Il. Who We Are & What We Do Our Market & Positioning . Our Performance /, Our Ambition Current Trading . Key Takeaways
Slide 21: A proven track record of growth
A proven track record of growth Belron sales, € millions 4,647 ¥ Continuous growth and windscreen complexity increase in VGRR v¥ Segment share gains and geographic expansion 3,840 3,899 v M&A 3,486 c.+9% p.a. 3,305 3,215 2,805 2,771 2707 2,843 2,427 2,159 2,002 2000 2001 2002 2003 2004 2005 2006 200
Slide 22: #2 independent in the US
#2 independent in the US 2017 2018 2019 2020 2021 Total # 14 9 7 7 of deals 11 Total acq. €9m €12m €105m €14m revenue c.€42m
Slide 23: Outstanding performance over the last years
Outstanding performance over the last 5 years TAL Tan €3,486m €4,647m Adj. EBITDA €332m €1,122m Margin % 10% 24% 7.5% / 1.3 3.4x/2.2x2 Adj. EBIT €210m €880m Margin % 6% 19% "18 dividend} ; €400m | 21 dividend 32x Net debt leverage "19 dividendl eee . €3bn cumulative coson | |r | vide EBITDA ~ net ca
Slide 24: 2021 - A record year across all metrics
2021- A record year across all metrics Customers People * 83.4 NPS in 2021 * 86% Global Employee Engagement survey result * 24% Recalibration Penetration * Incredible stamina & agility of all our people * 21% VAPS Attachment Rate * Belron Thank You => Record level of customer satisfaction > Record e
Slide 25: Agenda
/ \ge nda I. Il. Who We Are & What We Do Our Market & Positioning . Our Performance . Our Ambition Current Trading . Key Takeaways
Slide 26: Belron's value creation levers
Belron’s value creation levers Key drivers of Belron’s revenue growth... ...and cost efficiency — YEA Productivity . ADS _ - Procurement Transformation programme Total 2021 KPIs io} (eae Proven small structural Execution a o * na calibration driven : 12.2m prime 24% 21% VAPS share gains penetration
Slide 27: Transformation
6 1 6 1 2 5 2 5 TRANSFORMATION 4 4 3 3
Slide 28: Looking forward: a realistically ambitious plan
Looking forward: a realistically ambitious plan Our ambition builds on strong foundations created by management... ..leveraging structural segment tailwinds in VGRR & Recalibration... ..supplemented by significant new value from VAPS... .. boosted by improvements in cost efficiency... ..Wwith proces
Slide 29: Our ambition 2025
Our ambition 2025 Capital allocation Sal wo . @Nea mee * High single digit Commitment to converge Adj. EBIT : ° towards 3.0x ND/EBITDA by 2025 Margin % = 2025 EBIT margin > 23% of sales Funding 9 Capex / Sales = Capex excl. lease payments c.1-1.5% € Strong dividend distribution of sales! i= based on
Slide 30: Agenda
/ \ge nda I. Il. Who We Are & What We Do Our Market & Positioning . Our Performance /, Our Ambition Current Trading . Key Takeaways
Slide 31: Current trading
Current trading = Good start to the year with strong growth in VGRR jobs, continued regular AJP progression, increase in recalibration penetration and VAPs contribution = Reported sales growth of +18.4% in Q1-22 to €1,255.5m (+21.1% from continuing operations) = Some continuing challenges from Covid
Slide 32: Agenda
/ \ge nda I. Il. Who We Are & What We Do Our Market & Positioning . Our Performance IV. Our Ambition V. Current Trading VI. Key Takeaways S 1805 ©
Slide 33: Key Takeaways - Belron
Key Takeaways - Belron The clear global leader in VGRR! & recalibration, continuously strengthening its position Large markets with long-term structural growth driven by continued windscreen complexity and technology increase A highly differentiated branded B2B2C service proposition with long-standi
Slide 34: Q&A
Q&A An BELRON “Making a difference with real care”
Slide 35: Disclaimer
Disclaimer This document contains forward-looking information that involves risks and uncertainties, including statements about D'leteren Group’s and its portfolio companies’ financial projections, future performance, plans, objectives, expectations and intentions. Forward-looking statements can be
Slide 36: Appendix
Agenda Appendix
Slide 37: Reconciliation of financials
Reconciliation of financials Belron management accounts vs D'leteren Group reported figures Pre-IFRS16 i Post-IFRS16 2017 2018 H 2019 2020 2021 Sales - Belron management accounts 3,486 3,840 H 4,228 3,899 4,647 Adjustments - - H - - - Sales - D'leteren Group reporting 3,486 3,840 H 4,228 3,899 4,647