Kamux Oyj · OMXHEX:KAMUX
Kamux Oyj — Q1 2024 Earnings Presentation
26 slides from Kamux Oyj's earnings presentation, May 17, 2024
Slide 1: Revenue grew and adjusted operating profit improved significantly, corrective actions in Sweden progressing
Revenue grew and adjusted operating profit improved significantly, corrective actions in Sweden progressing Q1 2024 Results CEO Tapio Pajuharju & CFO Jukka Havia Q 1 2 0 2 4 R ES U L T S MAY 1 7 , 2 0 2 4 1
Slide 2: Table of contents
Table of contents Q1 2024 Results 1 Q1 in brief 2 Market position, Q1 Highlights, Strategy 3 Financial development 4 Outlook and financial targets, Summary Q 1 2 0 2 4 R ES U L T S MAY 1 7 , 2 0 2 4 2
Slide 3: Continued gross profit improvement in all markets, solid volume growth in Finland and Germany, Sweden underperforming
Continued gross profit improvement in all markets, solid volume growth in Finland and Germany, Sweden underperforming Revenue increased Adjusted operating Revenue from integrated services by 7.9% to EUR 240.7 profit increased by developed favorably and was EUR million (223.1) driven 227.0% to EUR 2.
Slide 4: Used car market normalizing, volumes in Germany above Q1 2021 levels
Used car market normalizing, volumes in Germany above Q1 2021 levels Market Market Kamux Market development in Q1 2024 Kamux position and size market development in Q1 2024 New passenger car (2024) share registrations across Finland ~0.6 million ~8.0% We estimate that the market Kamux maintained its
Slide 5: Volume growth in Finland and strong gross profit improvement in all countries increased operating profit
Volume growth in Finland and strong gross profit improvement in all countries increased operating profit Revenue (EUR million) Adjusted operating profit (EUR million) 280 13 260 12 240 11 220 10 200 9 180 8 160 7 140 6 120 100 5 80 4 60 3 40 2 20 1 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 2024 202
Slide 6: Volumes grew in Finland and Germany, but decreased in Sweden due to corrective actions
Volumes grew in Finland and Germany, but decreased in Sweden due to corrective actions Sold cars (pcs) +5.3% 20,000 19,364 18,699 1,567 18,000 1,422 16,952 17,215 16,760 16,728 16,354 1,414 16,137 1,490 1,397 15,601 15,688 1,223 1 5 ,324 3,529 16,000 1,322 4,106 1,280 14,681 1,428 1,248 1,300 14,000
Slide 7: Kamux Plus growth solid, also finance fees developed favorably
Kamux Plus growth solid, also finance fees developed favorably Revenue from integrated services MEUR 16 15.3 15.4 10% 13.6 13.4 9% 14 12.9 12.8 13.0 12.4 11.8 11.5 8% 12 6.9 % 10.7 9.9 6.4 % 7% 10 5.6 % 5.3 % 6% 5.2 % 5.2 % 5.0 % 5.0 % 4.9 % 4.8 % 8 5% 4.2 % 4% 6 4.3 % 3% 4 2% 2 1% 0 0% Q2/21 Q3/21
Slide 8: Changes in showroom network
Changes in showroom network Q1/24 Upgrades in Koskelo, Espoo and Varisto, Vantaa Q2/24 Hyvinkää showroom to move to new premises Dedicated Kamux Worx –showroom to open in Hyvinkää Lakalaiva flagship showroom to open end of May Q1/24 No changes Q2/24 Norrköping showroom closed end of April Sundsvall
Slide 9: Good, solid performance continued in Finland
Good, solid performance continued in Finland • Demand was at a good level, dealerships clearly increasing FY 2023 Revenue MEUR 698.0 share over C2C Adjusted EBIT margin 4.1% • Actions to upgrade offering at greater Helsinki area leading to increased revenue per car MEUR % • Strong revenue growth fol
Slide 10: Challenges continue in Sweden, but gross margin developed positively
Challenges continue in Sweden, but gross margin developed positively • Corrective actions following the detected misconduct FY 2023 Revenue MEUR 283.4 led to heavy staff turnover, impacting volumes despite Adjusted EBIT margin 0.1% growing market • Recruitment and onboarding of new sales staff is ME
Slide 11: Good volume growth and significant gross profit improvement led to black figures in Germany
Good volume growth and significant gross profit improvement led to black figures in Germany • Demand for used cars in Kamux’s operating area FY 2023 Revenue MEUR 102.1 was good Adjusted EBIT margin -1.6% • Volume growth driven by the Düren and Hameln showrooms opened in 2023 MEUR % • Systematic chan
Slide 12: Kamux is Europe's third largest used car retailer
Kamux is Europe’s third largest used car retailer Largest used car Home # of operating Pcs in 2023 dealers in Europe in country countries 2023 Aures Holdings Czechia 4 98,134 Aramis France 6 81,618 Kamux Finland 3 68,257 Autohero Germany 9 63,066 Q 1 2 0 2 4 R ES U L T S MAY 1 7 , 2 0 2 4 12 S O U R
Slide 13: Become the #1 used car retailer in Europe
OUR VISION Become the #1 used car retailer in Europe Q 1 2 0 2 4 R ES U L T S MAY 1 7 , 2 0 2 4 13
Slide 14: M&A to accelerate growth
CUSTOMER PROMISE OPERATIONAL EFFICIENCY Become the most Industrialize friendly, convenient and standardize and trustworthy used operations across car retailer value chain M&A TO ACCELERATE GROWTH Customer-centric offering Global and local for consumers and purchasing teams to professionals utilize p
Slide 15: Financial development
Financial development Q 1 2 0 2 4 R ES U L T S MAY 1 7 , 2 0 2 4 15
Slide 16: Profitability improvement continuing, first quarter cash flow negative due to inventory build-up
Profitability improvement continuing, first quarter cash flow negative due to inventory build-up • Revenue growth driven by higher volumes and improved sales mix • Gross margin EUR 1,510 per car, clearly better than in Q1/2023 • End of Q1/2024 inventory value approx. 10% higher than at the end of Q1
Slide 17: Key Figures
Key Figures (MEUR) 1-3/2024 1-3/2023 Change, % 1–12/2023 Revenue 240.7 223.1 7.9% 1,002.1 Gross profit 24.4 20.7 17.4% 102.5 as percentage of revenue, % 10.1% 9.3% 10.2% Operating profit (EBIT) 2.3 0.6 285.3% 15.8 as percentage of revenue, % 1.0% 0.3% 1.6% Adjusted operating profit 2.7 0.8 227.0% 18
Slide 18: Building up inventory ahead of the season
Building up inventory ahead of the season Net Working Capital (EUR million) Inventories (EUR million) 130 150 + 4 .5% + 1 0.6% 120 140 110 130 100 120 110 90 100 80 90 70 80 60 70 50 60 40 50 40 30 30 20 20 10 10 0 0 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q221 Q321 Q421 Q122 Q22
Slide 19: Cash flow impacted by timing of purchases in preparation for the upcoming summer season
Cash flow impacted by timing of purchases in preparation for the upcoming summer season Cash Flow from Operating Activities Components of Cash Flow from Operating Activities (EUR million) Q1 2024 (EUR million) 30 10 25 5 20 4.8 1.2 15 0 10 -20.3 5 -5 0 -5 -10 -10 -15 -15 -1.9 -16.2 -20 Q221 Q321 Q42
Slide 20: Dividend from 2023
Dividend from 2023 • AGM decided that a dividend of EUR 0.17 per share (EUR 0.15 per share) be paid in two instalments • Earnings per share were EUR 0.24 (0.27) • Payout ration is 71% (55%) • Dividend paid in two instalments • EUR 0.07 per share was paid on April 29, 2024 • EUR 0.10 per share will b
Slide 21: Outlook and financial targets
Outlook and financial targets Q 1 2 0 2 4 R ES U L T S MAY 1 7 , 2 0 2 4 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 69,070 Revenue, MEUR 1,500 / year 937 969 1,002 1,020 Adj. EBIT margin, % 4% 3,3% 1,8% 1,8% 2,0% NON-FINANCIAL Q1/24 NPS(2 60 50 51 eNPS(3 40 27
Slide 23: Outlook for 2024
OUTLOOK FOR 2024 Kamux expects its adjusted operating profit for 2024 to exceed its 2023 adjusted operating profit, which was EUR 18.0 million. Q 1 2 0 2 4 R ES U L T S MAY 1 7 , 2 0 2 4 23
Slide 24: Continued gross profit improvement in all markets, solid volume growth in Finland and Germany, Sweden underperforming
Continued gross profit improvement in all markets, solid volume growth in Finland and Germany, Sweden underperforming Revenue increased Adjusted operating Revenue from integrated services by 7.9% to EUR 240.7 profit increased by developed favorably and was EUR million (223.1) driven 227.0% to EUR 2.
Slide 25: Thank you!
Thank you! Q 1 2 0 2 4 R ES U L T S MAY 1 7 , 2 0 2 4 25
Slide 26: 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