Kamux Oyj · OMXHEX:KAMUX
Kamux Oyj — Q3 2024 Earnings Presentation
27 slides from Kamux Oyj's earnings presentation, Nov 8, 2024
Slide 1: Revenue decreased and adjusted operating profit decreased significantly
REVENUE DECREASED AND ADJUSTED OPERATING PROFIT DECREASED SIGNIFICANTLY Q3 2024 Results CEO Tapio Pajuharju & CFO Jukka Havia Q3 2024 RESULTS 8.11.2024 1
Slide 2: Table of contents
TABLE OF CONTENTS Q3 2024 RESULTS 1. Q3 in brief 2. Webcars, Secto Automotive 3. Market position, Q3 Highlights, Strategy 4. Financial development 5. Financial targets and outlook, Summary Q3 2024 RESULTS 8.11.2024 2
Slide 3: Decent performances in Finland and Germany not enough to offset Sweden
DECENT PERFORMANCES IN FINLAND AND GERMANY WERE NOT ENOUGH TO OFFSET THE UNDERPERFORMANCE IN SWEDEN Revenue decreased -0.8% to Adjusted operating profit Driven by good development of Kamux Plus, revenue EUR 280.2 million (282.4), as decreased by -22.3% to EUR from integrated services grew and was EU
Slide 4: Strategic moves to address sourcing – Webcars and Secto Automotive
STRATEGIC MOVES TO ADDRESS SOURCING – WEBCARS AND SECTO AUTOMOTIVE Acquisition of Webcars Logistics AB Long-term cooperation & business transfer with Secto Automotive • Strengthens our sourcing and logistics capabilities • Approx. 3,500 relatively new and regularly serviced • Will continue as a stan
Slide 5: Used car markets grew in all our operating countries
USED CAR MARKETS GREW IN ALL OUR OPERATING COUNTRIES Market size Kamux market Market development in Kamux position and New passenger car registrations Market (2023) share* Q3 2024 development in Q3 2024 across the EU were at PY’s level in January–September 2024 ~8.5% We estimate that the Finland ~0.
Slide 6: Revenue and profit impacted by underperformance in Sweden
REVENUE AND PROFIT IMPACTED BY UNDERPERFORMANCE IN SWEDEN, ACTIONS TO IMPROVE PRODUCTIVITY AND EFFICIENCY ONGOING Revenue (EUR million) Adjusted operating profit (EUR million) 13 280 260 12 240 11 220 10 200 9 180 8 160 7 140 6 120 5 100 4 80 60 3 40 2 20 1 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023
Slide 7: Underperformance in Sweden impacted group's volumes
UNDERPERFORMANCE IN SWEDEN IMPACTED GROUP’S VOLUMES Sold cars (pcs) -4.5% 20,000 19,364 18,484 1,567 18,000 16,952 17,215 17,037 1,515 16,727 16,354 1,414 16,137 16,000 1,396 15,601 15,688 1,223 15,324 3,529 1,684 14,681 1,322 1,428 2,774 1,248 1,280 1,300 14,000 3,678 1,134 3,493 3,046 3,463 2,770
Slide 8: Solid Kamux Plus growth
SOLID KAMUX PLUS GROWTH Revenue from integrated services MEUR 18 10% 16 15.3 15.4 9% 14.6 13.6 13.4 13.6 8% 14 12.9 12.8 13.0 6.9% 12.4 11.8 11.5 6.4% 7% 12 5.6% 5.4% 6% 5.3% 5.2% 5.2% 5.2% 10 5.0% 5.0% 4.9% 4.8% 5% 8 4% 6 3% 4 2% 2 1% 0 0% Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24
Slide 9: Changes in showroom network
CHANGES IN SHOWROOM NETWORK Finland Sweden Germany Total Sundsvall and Helsingborg to new Q2/2024 Hyvinkää to new premises premises, Norrköping closed Siershahn opened +-0 Borås, Norrtälje and Heron City Lübeck and Kaltenkirchen -7 Q3/2024 Klaukkala and Tornio closed closed closed Secto’s showrooms
Slide 10: Finland progresses in upgrading the offering
FINLAND PROGRESSES IN FY 2023 Revenue MEUR UPGRADING THE OFFERING 698.0 250 5 200 • Passenger car demand was at a good level 150 4 • Tight sourcing market affected most of the quarter 100 • Good progress in upgrading the car offering and 50 increasing average price visible in revenue growth 0 3 Q3 2
Slide 11: Challenges in Sweden continued
CHALLENGES IN SWEDEN FY 2023 Revenue MEUR CONTINUED 283.4 100 2 80 1 • Corrective measures have progressed and 60 0 established control mechanisms are working, but 40 -1 visible results are taking longer than expected 20 -2 • Tight trading control and strong reduction of dealer 0 -3 cars impacted vo
Slide 12: Germany moving to the right direction
GERMANY MOVING TO THE RIGHT FY 2023 Revenue MEUR DIRECTION 102.1 30 2 25 1 • Good demand for used cars in Kamux’s 20 operating area, but our volumes impacted by 15 0 closure of 2 showrooms and staff shortages 10 -1 5 • Good margin development, volumes not 0 -2 sufficient Q3 23 Q4 23 Q1 24 Q2 24 Q3 2
Slide 13: Kamux is Europe's third largest used car retailer
KAMUX IS EUROPE’S THIRD LARGEST USED CAR RETAILER Largest used car retailers Number of operating Cars sold in 2023, Home country in Europe in 2023 countries pcs Aures Holding Czechia 4 98,134 Aramis France 6 81,618 Kamux Finland 3 68,257 Autohero Germany 9 63,066 Q3 2024 RESULTS 8.11.2024 13 SOURCE:
Slide 14: Our vision: become the #1 used car retailer in Europe
OUR VISION BECOME THE #1 USED CAR RETAILER IN EUROPE Q3 2024 RESULTS 8.11.2024 14
Slide 15: M&A to accelerate growth
CUSTOMER PROMISE OPERATIONAL EFFICIENCY Become the most friendly, Industrialize convenient and standardize operations and trustworthy used car across value chain retailer M&A TO ACCELERATE GROWTH Customer-centric Global and local purchasing offering for consumers teams to utilize power of and profes
Slide 16: Financial development
FINANCIAL DEVELOPMENT Q3 2024 RESULTS 8.11.2024 16
Slide 17: Sweden lagging significantly behind Q3/2023, Finland and Germany close to previous year
SWEDEN LAGGING SIGNIFICANTLY BEHIND Q3/2023, FINLAND AND GERMANY CLOSE TO PREVIOUS YEAR LEVELS • Revenue growth in Finland and Germany attributed to higher sales prices and higher services income while in Sweden volumes continue to significantly fall short • Gross profit EUR 1,489 per car, approxima
Slide 18: Key figures
KEY FIGURES (MEUR) 7-9/2024 7-9/2023 Change, % 1-9/2024 1-9/2023 Change, % 1–12/2023 Revenue 280.2 282.4 -0.8% 773.5 760.5 1.7% 1,002.1 Gross profit 27.5 29.4 -6.3% 76.6 76.4 0.2% 102.5 as percentage of revenue, % 9.8% 10.4% 9.9% 10.0% 10.2% Operating profit (EBIT) 4.2 6.8 -39.0% 8.6 11.3 -24.2% 15.
Slide 19: Net working capital change driven by inventory value increase
NET WORKING CAPITAL CHANGE DRIVEN BY INVENTORY VALUE INCREASE Net Working Capital (EUR million) Inventories (EUR million) 140 160 +7.2% +4.7% 120 140 120 100 100 80 80 60 60 40 40 20 20 0 0 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2
Slide 20: Increased inventory value and one-off costs impact Q3 operating cash flow
INCREASED INVENTORY VALUE AND ONE-OFF COSTS HAVING AN IMPACT ON Q3 OPERATING CASH FLOW Cash Flow from Operating Activities Components of Cash Flow from Operating Activities (EUR million) Q3 2024 (EUR million) 30 8 25 7 20 6 15 -3.9 10 5 5.7 5 2.1 4 0 3 -1.6 -5 2.1 1.9 2 -10 -15 1 -20 0 Q421 Q122 Q22
Slide 21: Financial targets and outlook
FINANCIAL TARGETS AND OUTLOOK Q3 2024 RESULTS 8.11.2024 21
Slide 22: Tracking progress towards our long-term targets
TRACKING PROGRESS TOWARDS OUR LONG-TERM TARGETS LONG-TERM TARGET FY 2021 FY 2022 FY 2023 LTM(1 FINANCIAL Sold cars, pcs 100,000 / year 68,429 62,922 68,257 68,012 Revenue, MEUR 1,500 / year 937 969 1,002 1,015 Adj. EBIT margin, % 4% 3.3% 1.8% 1.8% 1.6% NON-FINANCIAL Q3/24 NPS(2 60 50 51 eNPS(3 40 27
Slide 23: Outlook for 2024
OUTLOOK FOR 2024 (UPDATED ON OCT 10, 2024) Kamux expects the adjusted operating profit for 2024 to be EUR 15–17 million. Q3 2024 RESULTS 8.11.2024 23
Slide 24: Decent performances in Finland and Germany not enough to offset Sweden
DECENT PERFORMANCES IN FINLAND AND GERMANY WERE NOT ENOUGH TO OFFSET THE UNDERPERFORMANCE IN SWEDEN Revenue decreased -0.8% to Adjusted operating profit Driven by good development of Kamux Plus, revenue EUR 280.2 million (282.4), as decreased by -22.3% to EUR from integrated services grew and was EU
Slide 25: Q&A
Q&A Q3 2024 RESULTS 8.11.2024 25
Slide 26: Thank you!
THANK YOU! Q3 2024 RESULTS 8.11.2024 26
Slide 27: Disclaimer
DISCLAIMER It should be noted that Kamux and its business are exposed to various risks and uncertainties, and certain statements herein which are not historical facts, including without limitation, those regarding expectations for market growth and developments; expectations for growth and profitabi