Slide 1: Investor Presentation
INVESTOR PRESENTATION
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT This Presentation contains certain forward-looking statements in respect of various matters including upcoming events that involve known and unknown risks and uncertainties that are beyond the control of Management. Those risks and uncertainties include, among other things,
Slide 3: The Leader in Protective Films
THE LEADER IN PROTECTIVE FILMS AUTOMOTIVE PAINT PROTECTION FILMS AUTOMOTIVE WINDOW TINT HOME & OFFICE WINDOW FILMS 3
Slide 4: A Brand Built Over Years
A BRAND BUILT OVER 20 YEARS HEADQUARTERED IN SAN ANTONIO, TX FOUNDED IN 1997 NASDAQ: XPEL 1054+ FULL TIME EMPLOYEES GLOBAL OPERATIONS 4
Slide 5: History That Continues to Set the Standards
HISTORY THAT CONTINUES TO SET THE STANDARDS 5
Slide 6: Key Investment Highlights
KEY INVESTMENTS HIGHLIGHTS Strong Recognition as Premium Brand Significant Domestic and International Market Opportunity Robust Growth, Profitability and Strong Balance Sheet High Insider Ownership 6
Slide 7: Complete Protection Coverage
COMPLETE PROTECTION COVERAGE BUMPER HOOD HEADLIGHTS & FOG LIGHTS FENDER MIRRORS A-PILLARS & ROOFLINE DOORSILLS DOOR CUPS & DOOR ROCKER PANELS & REAR LUGGAGE STRIP EDGES WHEEL IMPACT AREA 7
Slide 8: Automotive Products
Invisible, Cut-To-Fit Protection Film Protects from Rock Chips, Bug Acids, and Road Debris Damage Professionally Installed New-Car Product AUTOMOTIVE Film for Heat Rejection, Security and Appearance PRODUCTS 4 Core Lines of Film, Something For Everyone High-End Products for Margin, Differentiation H
Slide 9: End Customer PPF Economics
END CUSTOMER PPF ECONOMICS COVERAGE – FULL CAR COVERAGE – FULL FRONT COVERAGE – PARTIAL HOOD Covers entire car. Covers entire painted front bumper, hood, Covers 6” - 12” of leading of hood. fenders, headlights, and backs of painted mirrors. $4000-$6000 $100-200 $1800-$2500 FACTORS INFLUENCING PRICIN
Slide 10: The XPEL Difference
Cloud-Based Application Updated Daily with 80,000 Vehicle Applications Pre-Cut Film Prevents Cutting on Car Reduces Installation Time, Material Waste CERTIFIED TRAINING THE XPEL Essential to New Customer Success DIFFERENCE and Industry Growth Corporate Training Facilities in 7 Countries PPF, Automot
Slide 11: Dealership Services
DEALERSHIP SERVICES Unique Business Model - Serves only automotive dealership customers - Primarily window film installation today - Products are pre-loaded on vehicles prior to sale - Our labor is housed within the dealership Opportunity To Penetrate Down Market Opportunity To Introduce Paint Prote
Slide 12: Non-Automotive Products
NON-AUTOMOTIVE PRODUCTS Sell to a Variety of Niche Non-Automotive Uses Solar Control and Security for Commercial Electronics, Stainless Steel, Solid Surface and Residential Applications Countertops and More Distinct Customer Set, But Similar Profile Antimicrobial Surface Protection Constantly Evalua
Slide 13: XPEL Revenue Ecosystem
XPEL REVENUE ECOSYSTEM PRODUCT REVENUE 85% INSTALLATION SERVICE REVENUE 15% $150 - $375 / CAR DIRECT - 65% INDIRECT - 35% INSTALLATION CENTER DEALERSHIP US UK MEXICO ASIA CANADA SERVICES OEM 7 1 1 1 3 INTERNATIONAL DISTRIBUTORS PRELOAD $800 - $2500 $600 - $1500 $60 - $200 INDEPENDENT INSTALLERS NEW
Slide 14: Strategic Initiatives
STRATEGIC INITIATIVES CONTINUE GLOBAL EXPANSION Operations in 12 Countries Build Out Sales Team In Under-penetrated Geographies DRIVE GLOBAL BRAND AWARENESS High Visibility At Premium Events Advertising Placement In Media Consumed By Car Enthusiasts EXPAND NON-AUTOMOTIVE PRODUCT PORTFOLIO Find Oppor
Slide 15: Revenue Trend
REVENUE IN MILLIONS $450,000 $425,000 $400,000 $396.3M a4 $375,000 $105.5M 34.5% ‘ GROWTH $350,000 Roa $325,000 $324.0M $300,000 25.0% as $275,000 $102.7 14.4% $250,000 GROWTH avsa $225,000 $200,000 $175,000 $158.9M $150,000 22.3% ) a2 $129.9M $102.3M 21.9% $125,000 GROWTH avsa $100,000 $75,000 a1 $
Slide 16: 2023 Sales Mix by Region
2023 SALES MIX BY REGION CONTINETAL EUROPE 8.8% UK CANADA 3.4% 11.0% UNITED STATES 56.7% CHINA 10.5% ASIA PACIFIC 3.0% LATIN MIDDLE EAST/ AMERICA AFRICA 2.2% 4.2% OTHER 0.2% 16
Slide 17: Gross Margin Trend
GROSS MARGIN TREND IN MILLIONS 17
Slide 18: EBITDA Profile
EBITDA PROFILE IN MILLIONS 18
Slide 19: Net Income Trend
NET INCOME TREND IN MILLIONS 19
Slide 20: Strong Financial Position
STRONG FINANCIAL POSITION IN MILLIONS 2021 2022 2023 CASH • CASH EQUIVALENTS $9.6M $8.1M $11.6M NET WORKING CAPITAL $42.8M $79.4M $110.0M ACOUNTS RECEIVABLE ACOUNTS RECEIVABLE $13.2M $14.7M $24.1M TOTAL INVENTORY $51.9M $80.6M $106.5M TOTAL ASSETS $161.0M $193.4M $252.0M TOTAL DEBT $25.5M $26.1M $19
Slide 21: Macro Growth Opportunities
MACRO GROWTH OPPORTUNITIES Rock Chips Are Top Consumer Complaint Paint Protection Film Low Penetration to New Cars Sold Fragmented Market Provides Opportunity Ripe for Consolidation Dealerships Need Tangible, Profitable Products Equivalent Opportunities Domestically & Internationally Down Market Pen
Slide 22: Appendix
APPENDIX
Slide 23: Non-GAAP Measures EBITDA Reconciliation
NON - GAAP MEASURES EBITDA RECONCILIATION IN MILLIONS YEAR ENDED Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 NET INCOME $31.6M $41.4M $52.8M INTEREST $ .3M $1.4M $1.2M TAXES $7.9M $10.6M $13.2M DEPRECIATION $1.9M $3.4M $4.5M AMORTIZATION $2.5M $4.4M $5.1M EBITDA $44.1M $61.2M $76.9M
Slide 24: Complete Protection, Unseen.
San Antonio, TX. USA +1 210-678-3700 XPEL.COM COMPLETE PROTECTION, UNSEEN.