Delticom Ag · XETR:DEX
Delticom — Q1 2010 Earnings Presentation
21 slides from Delticom's earnings presentation, May 10, 2010
Slide 1: On the right track. Investor and Analyst Presentation
On the right track. Investor and Analyst Presentation on the occasion of the publication of the 3-Monthly Report 2010
Slide 2: Agenda
Agenda Delticom at a Glance Business Model Profit & Loss Balance Sheet Outlook Investor and Analyst Presentation Hanover, 10 May 2010 2
Slide 3: Agenda
Agenda Delticom at a Glance Business Model Profit & Loss Balance Sheet Outlook Investor and Analyst Presentation At a glance Business Model Profit & Loss Balance Sheet Outlook Hanover, 10 May 2010 3
Slide 4: Delticom at a Glance
Delticom at a Glance #1 European online tyre dealer > 100 online shops in 35 countries founded 1999, IPO Oct 2006, SDAX Dec 2008 104 employees (end of Q1 10), mainly in the Hanover head office 2010 more than 180 thousand new customers so far customer base: more than 3.6 million focus on replacement
Slide 5: Key Financials Q1 10
Key Financials Q1 10 Q1 10 Q1 09 yoy % guidance * ∆ Revenues €m 74.5 51.0 +45.9 62.0 +20.0 target H1 now > +20% EBIT-Margin % 7.9 5.2 +2.7p FY 8% (direct) costs EPS € 0.34 0.16 +110.6 dividend for 2009: € 1.70 Capex €m 0.3 1.5 –82.0 FY 3.5m no new warehouse Liquidity €m 45.0 30.9 +45.5 dividend pend
Slide 6: Agenda
Agenda Delticom at a Glance Business Model Profit & Loss Balance Sheet Outlook Investor and Analyst Presentation At a glance Business Model Profit & Loss Balance Sheet Outlook Hanover, 10 May 2010 6
Slide 7: Tyres and the Internet
Tyres and the Internet European Car Replacement Tyres: € 11 billion Germany: 2009 ok, dim outlook for 2010 60 SA Rest 20 +1.9% 50 DE EE+CE other 50 –12.7% +2.5% NA 51 –3.7% 58 68 –5.5% 253 40 Western World 30 Europe UK 25 20 WE 203 ES in million tyres Asia FR 10 14 206 IT 24 22 in million tyres 0 98
Slide 8: Redesign of the Tyre Distribution Chain
Redesign of the Tyre Distribution Chain Traditional Retail ► Delticom Redesign Investor and Analyst Presentation At a glance Business Model Profit & Loss Balance Sheet Outlook Hanover, 10 May 2010 8
Slide 9: Key Benefits for Our Partners
Key Benefits for Our Partners Customers Fitting Partners Suppliers save time and money customer generation, free of Europe’s leader in the online select from broad product charge channel, strong growth, high offering no restrictions on fitting prices volumes fast delivery, even at peak might offer o
Slide 10: Agenda
Agenda Delticom at a Glance Business Model Profit & Loss Balance Sheet Outlook Investor and Analyst Presentation At a glance Business Model Profit & Loss Balance Sheet Outlook Hanover, 10 May 2010 10
Slide 11: Continued Snowfalls in the 2009/2010 Winter Season
Continued Snowfalls in the 2009/2010 Winter Season cumulated snow heights on German interstates ► First sales peak in October, more snow in December, January and February Investor and Analyst Presentation At a glance Business Model Profit & Loss Balance Sheet Outlook Hanover, 10 May 2010 11
Slide 12: Customers
Customers in thousands 2007 2008 2009 New Customers +29% ...still the main growth driver 123 218 143 210 146 231 169 259 188 +44% Repeat Customers ...long replacement cycle and customers are happy 110 125 102 147 114 61 98 76 79 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Ratio ... repeat customers (slowly) ► Repeat
Slide 13: Quarterly Revenues
Quarterly Revenues in € million 2008 2009 2010 +31% 100 100 +12% +21% +25% +46% 75 75 +16% +22% +20% 50 +9% 50 25 25 109.7 42.6 78.9 53.7 83.8 51.0 88.1 62.4 74.5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ► Fluctuations in growth rates: seasons, weather, base effects, strategy Investor and Analyst Pre
Slide 14: Quarterly EBIT
Quarterly EBIT in € million 2008 2009 2010 +96% 15.0 15.0 12.5 12.5 10.0 10.0 +39% +49% 7.5 7.5 +122% –3% +34% 5.0 +419% 5.0 +134% N/A 2.5 2.5 14.7 0.5 5.1 3.4 7.5 2.6 7.5 4.5 5.9 0.0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ► Q1 10 helped by scale and cost improvements Investor and Analyst Presentat
Slide 15: P&L Drivers
P&L Drivers EUR yoy % of Revenues Q1 10 Q1 09 % Q1 10 Q1 09 chng Revenues 74.5 51.0 45.9 100.0 100.0 0.0 Cost of sales 54.8 37.8 45.1 73.6 74.0 –0.4 Gross Profit (simple) 19.7 13.2 48.4 26.4 26.0 0.4 smaller increase than in previous quarters Direct costs 10.8 8.4 29.1 14.6 16.5 –1.9 Direct costs (d
Slide 16: Agenda
Agenda Delticom at a Glance Business Model Profit & Loss Balance Sheet Outlook Investor and Analyst Presentation At a glance Business Model Profit & Loss Balance Sheet Outlook Hanover, 10 May 2010 16
Slide 17: Working Capital Management
Working Capital Management 2008 2009 2010 140 3.2 2.2 2.1 0.1 –1.6 Accounts receivable ...follow the seasonal peaks. 1.1 –0.1 –0.4 –3.2 17.3 120 9.8 6.1 5.6 4.6 3.5 Inventories ...strong increase ... 0.6 100 –6.7 17.8 16.0 ... funded w/ AP –16.1 12.3 80 Accounts payable 6.4 60 –2.9 –3.5 –3.8 –4.2 Q1
Slide 18: Liquidity Bridge (ttm)
Liquidity Bridge (ttm) in € million 80 80 22,1 0,1 –8,6 70 1,2 0,8 –18,2 70 32,6 –2,2 60 –0,2 0,0 –11,8 60 –1,7 50 0,0 0,0 45,0 50 40 40 30,9 30 30 20 20 10 10 0 0 Interest and Equipment Intangible Depreciation Securities etc. FX Translation 31.03.09 Receivables Payments 31.03.10 Provisions Inventor
Slide 19: Agenda
Agenda Delticom at a Glance Business Model Profit & Loss Balance Sheet Outlook Investor and Analyst Presentation At a glance Business Model Profit & Loss Balance Sheet Outlook Hanover, 10 May 2010 19
Slide 20: Outlook
Outlook Current trading in Q2: good sales, stable prices more modest increase yoy German market (BRV) 2010 est (as of March 2010): summer ↓ 1.8% (too low), winter ↓ 9.0% (too low?) Fuzzy signals from the economy Ifo ↑, deflated retail sales ↓ GfK ↑↓, unemployment ↑ price discipline? volume growth? 2
Slide 21: Summary
Summary 1 #1 European online tyre retailer 2 Resilient and profitable business model 3 Strong cash flow, strong balance sheet 4 Redesign of the tyre distribution chain Investor Relations: 5 Excellent growth opportunities Melanie Gereke Delticom AG Brühlstr. 11 30169 Hanover, Germany eMail: gereke@de