Kamux Oyj · OMXHEX:KAMUX
Kamux Oyj — Non-Deal Roadshow (June 2024)
38 slides from Kamux Oyj's roadshow presentation, June 2024
Slide 1: Introducing Kamux
Introducing Kamux Roadshow presentation, June 2024 ROADSHOW PRESENTATION JUNE 2024 1
Slide 2: The European used car market is huge and very fragmented
The European used car market is huge and very fragmented Used cars sold >35 Mn <0.5 Mn annually, pcs ROADSHOW PRESENTATION JUNE 2024 2
Slide 3: >EUR 100 Bn target market in the current operating countries
>EUR 100 Bn target market in the current operating countries Market size ~100 Bn ~10 Bn ~5 Bn Approx. 7.9 Others million used market share % cars sold in 75 our target 98 90 markets in 2023 Top-5 players 25 market % 2 10 ROADSHOW PRESENTATION JUNE 2024 3
Slide 4: Kamux focuses on buying and selling used cars
Kamux focuses on buying and selling used cars Europe’s 3rd largest used car retailer Revenue by Cars sold by A total of 78 stores country in 2023 country in 2023 in three operating countries* 10% 5,603 46 12,777 stores 21% MEUR 68,257 23 1,002.1 cars in total stores in total (62,922) (968.7) 9 70% 4
Slide 5: 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 ROADSHOW PRESENTATION JUNE 2024 5 SOURCE: COMPANY QUA
Slide 6: Become the #1 used car retailer in Europe
OUR VISION Become the #1 used car retailer in Europe ROADSHOW PRESENTATION JUNE 2024 6
Slide 7: From entrepreneurship to a public company
From entrepreneurship to a public company • Juha Kalliokoski founded Kamux in 2003 in Hämeenlinna, Finland. He was CEO of the company until spring 2023. • Initially his goal was to support his family by selling cars. • For the first three years, Kamux had just one showroom in Hämeenlinna. • Kamux's
Slide 8: We have successfully grown organically
We have successfully grown organically Revenue (M€) Cars sold (1,000) Showrooms 1,002 78 79 78 78 68.5 68.3 937 969 CAGR 62.9 71 60.7 2007–2023 55.4 +28.0% 724 61 46,6 53 659 41.0 47 36.3 41 528 455 34 28.5 405 27 310 20.3 20 215 14.2 16 10.5 13 152 9 6.9 7 74 112 3.6 5.0 53 1.8 2.6 19 27 38 FIN SWE
Slide 9: Kamux growth has been profitable
Kamux growth has been profitable Revenue (M€) Adjusted operating profit (EUR million) and adjusted Revenue increased by 3.5% in 2023 operating profit (EBIT) margin (%) Adjusted operating profit decreased from the previous year in 2022 1000 3,5% 35 7 900 2.3% 30 6 3.3% 800 20.8% 29.5% 700 25 5 16.1%
Slide 10: In 2023, Kamux had an average of 885 employees
In 2023, Kamux had an average of 885 employees Average number of employees in • The age range of employees was 15–83 years 2023 • Approximately 31% of employees were under 25 years of age and 75 approximately 20% were over 55 years • During 2023, a total of 15 Kamux employees found a new role 227 wi
Slide 11: Our strategy
Our strategy ROADSHOW PRESENTATION JUNE 2024 11
Slide 12: 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 13: Kamux is part of circular economy and our ESG agenda supports strategic business goals
Kamux is part of circular economy and our ESG agenda supports strategic business goals TRUST- LOWER THRIVING & INCLUSIVE WORTHINESS EMISSION CARS WORKPLACE • Used cars you can trust • Affordable lower-emission cars • Attractive career paths, learning • Transparency for well-informed • Supporting the
Slide 14: Become the most friendly, convenient and trustworthy used car retailer
Become the most friendly, convenient and trustworthy used car retailer CUSTOMER QUALITY & ADD-ON SERVICE TRANSPARENCY SERVICES Bring customer to the epicenter of all Standardized processing of all cars Introduce innovative, hassle-free and activities, with tailored services for convenient service pa
Slide 15: Improve profitability through standardized operations leveraging economies of scale
Improve profitability through standardized operations leveraging economies of scale Unify operations in all countries PROCESSING PRICING SOURCING PEOPLE & LOGISTICS & ANALYTICS Gain Group scale by ramping up Bring more centralization and Centrally driven fair pricing by More focused roles and respon
Slide 16: Long-term targets
Long-term targets FINANCIAL Sold cars, pcs 100,000 / year Revenue, EUR EUR 1.5 billion / year mainly organic growth, with bolt-on M&A Adjusted EBIT margin, % 4% of Revenue relative profitability NON-FINANCIAL NPS, group average 60 customer feedback, regular inputs eNPS, group average 40 employee eng
Slide 17: Q1/24: Revenue grew and adjusted operating profit improved significantly
Q1/24: Revenue grew and adjusted operating profit improved significantly, corrective actions in Sweden progressing Q1 2024 Results CEO Tapio Pajuharju & CFO Jukka Havia ROADSHOW PRESENTATION JUNE 2024 17
Slide 18: 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 ROADSHOW PRESENTATION JUNE 2024 18
Slide 19: Continued gross profit improvement in all markets, solid volume growth in Finland and Germany
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 20: 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 21: Volume growth in Finland and strong gross profit improvement 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 22: Volumes grew in Finland and Germany, but decreased in Sweden
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 1,223 1,414 16,137 16,000 1,490 1,397 15,601 15,688 15,324 3,529 14,681 1,322 1,428 4,106 1,248 1,280 1,300 14,000 3
Slide 23: 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 % 5.2 % 6% 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 24: 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 25: 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 26: 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 27: 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 28: Financial development
Financial development ROADSHOW PRESENTATION JUNE 2024 28
Slide 29: 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 30: 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 31: 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% +10.6% 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 Q222 Q3
Slide 32: 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 33: 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 34: Outlook and financial targets
Outlook and financial targets ROADSHOW PRESENTATION JUNE 2024 34
Slide 35: 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 36: 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. ROADSHOW PRESENTATION JUNE 2024 36
Slide 37: Thank you!
Thank you! ROADSHOW PRESENTATION JUNE 2024 37
Slide 38: 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