Auto Partner Sa · GPW:APR
Auto Partner Sa — Q1 2020 Earnings Presentation
24 slides from Auto Partner Sa's earnings presentation, May 19, 2020
Slide 1: Q1 2020 results
AUTOPARTNER Q1 2020 results May 19th 2020
Slide 2: Disclaimer
Disclaimer This material is intended for information purposes only. It does not constitute an advertisement for or an offer of any publicly traded securities. Its contents have been compiled from sources considered reliable and accurate by Auto Partner S.A., although there is no assurance that such
Slide 3: Agenda
Agenda 1. About the Group 2. Market environment 3. Financial performance 4. Mitigating the impact of Covid-19 www.auto-partner.pl 3
Slide 4: 1. About the Group
1. About the Group AUTOPARTNER - ‘- » >. >
Slide 5: Management Board of the Group
Management Board of the Group Aleksander Górecki President of the Management Board/Founder Andrzej Manowski Vice President of the Management Board Piotr Janta Vice President of the Management Board www.auto-partner.pl 5
Slide 6: Auto Partner Group at a glance
Auto Partner Group at a glance ca. 10% share in the Polish market of spare parts distribution ca. 200,000 references available 12m parts stored in warehouses throughout Poland over 200 global suppliers 22 sale markets 62% online orders GlobalOne international GPO membership www.auto-partner.pl 6
Slide 7: Key developments in Q1 2020
Key developments in Q1 2020 ▪ Nearly 14% growth in sales ▪ Product mix expansion ▪ Safety measures implemented in response to the COVID-19 pandemic, based on GIS and WHO recommendations ▪ Continued deployment of IT tools to support processes, as a factor helping mitigate the impact of costs on perfo
Slide 8: Well-developed distribution network
Well-developed distribution network ▪ IT-supported logistics – just-in-time deliveries to geographically dispersed customers at a frequency of 3-5 times per day ▪ Total warehousing space at the Group (held under leases) – over 100,000 square metres: ❑ Distribution centre in Bieruń (41,000 square met
Slide 9: 2. Market environment
2. Market environment AUTOPARTNER - ‘- » >. >
Slide 10: Market environment – Part 1
Market environment – Part 1 POLAND EUROPE ▪ Approximately 17.6m passenger cars in Poland ▪ Approximately 268m passenger cars ▪ Average car age: 13.2 years (according to IBRM SAMAR) in Europe (according to ACEA) ▪ Drop in passenger car registrations in Q1 ▪ Average car age: 11.1 years (according to A
Slide 11: Market environment – Part 2
Market environment – Part 2 Total number Total number POLAND - registrations, PZPM data % change y/y % change y/y (as at Mar 31 2020) (as at Apr 30 2020) Registrations of passenger cars 29,657 -40.8% 15,239 -67.1% Registrations of light commercial vehicles (< 3.5 t) 4,328 -32.7% 2,626 -55.6% Total r
Slide 12: Market environment – Part 3
Market environment – Part 3 ▪ Good beginning of 2020: ▪ Favourable conditions and positive market trends in the automotive parts distribution sector despite economic slowdown across Europe ▪ Purchasing power staying solid in Poland and Europe ▪ High inflation ▪ Good GDP growth forecasts for Poland a
Slide 13: 3. Financial performance
3. Financial performance AUTOPARTNER - ‘- » >. >
Slide 14: Q1 2020 highlights
Q1 2020 highlights REVENUE EBITDA EBIT NET PROFIT PLN PLN PLN PLN 371.1 million 24.7 million 19.0 million 12.7 million +14% -4% -11% -18% www.auto-partner.pl 14
Slide 15: Double-digit sales growth sustained
Double-digit sales growth sustained Q1 sales y/y [PLNm] Sales by geographies [PLNm] 371.1 400 371.1 400 325.7 326.7 300 300 153.5 122.6 Sprzedaż 200 200 zagraniczna Sprzedaż krajowa 100 100 204.1 217.6 0 0 1Q 2019 1Q 2020 1Q 2019 1Q 2020 ▪ Double-digit sales growth sustained despite weaker March, ▪
Slide 16: Quarterly sales
Quarterly sales Quarterly sales [PLNm] 400 392.9 391.5 368.3 371.1 300 326.7 303.4 303.7 294.0 253.9 240.1 200 100 0 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 ❑ Sales supported by the well-developed distribution network (branch offices + warehouses) ❑ Developmen
Slide 17: Profitability
Profitability Q1 2020 profit figures [PLNm] +12% 97.3 86.9 1Q 2019 -4% 1Q 2020 -11% 25.6 24.7 -18% 21.5 19.0 15.5 12.7 Zysk brutto ze EBITDA EBIT zysk netto sprzedaży ▪ 12% growth in gross profit in Q1 2020 ▪ Profitability eroded, mainly by the pandemic, which drove down revenue in March with operat
Slide 18: Gross profit
Gross profit 27.7% 27.1% Margin % 26.8% 26.5% 26.6% 26.2% 26.0% 25.7% 101,9 101,8 96,3 97,3 86,9 78,8 81,5 79,4 24.5% 67,4 PLNm 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 ▪ Gross margin largely unchanged year over year, despite a significantly higher share of export sale
Slide 19: Profit margins
Profit margins 32 26.0% 27.6% 26.2% 26.6% 24.5% 24 Gross margin (%) EBITDA margin (%) 16 EBIT margin (%) 7.8% 6.9% 7.4% 6.6% 8 6.1% Net margin (%) 6.8% 4.9% 5.7% 5.7% 5.1% 4.7% 3.4% 4.0% 3.8% 0 3,4% Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 ▪ Continued strong growth in export sales (January and Februa
Slide 20: Cash flow
Cash flow Cash flow [PLNm] 40 37.7 30 20 10 3.7 3.5 5.1 2.5 0 -10 -2.1 -1.2 -20 -30 -40 -34.0 1Q 2019 1Q 2020 Przepływy operacyjne Przepływy inwestycyjne Przepływy finansowe ▪ The Group’s liquidity position remained stable ▪ Significant decrease in liabilities under borrowings and factoring faciliti
Slide 21: Stable stock levels
Stable stock levels Stocks* [PLNm] 468.1 469.6 439.8 447.3 448.2 448.2 410.7 382.8 391.2 366.9 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 ▪ Inventory turnover as at Mar 31 2020: 156 days, vs 166 days the year before ▪ Stable stock levels ▪ Current purchases (afte
Slide 22: 3. Mitigating the impact of COVID-19 on business
3. Mitigating the impact of COVID-19 on business
Slide 23: COVID-19
COVID-19 → Swift response by the company, safety procedures put in place and business continuity maintained across all areas → Cost savings (e.g. non-renewal of fixed-term contracts, renegotiation of rents) → Stable stock levels maintained to prepare for sales after all lockdown restrictions are lif
Slide 24: THANK YOU!
THANK YOU! ul. Ekonomiczna 20 43–150 Bieruń www.auto-partner.pl