Xpel, Inc. · NASDAQ:XPEL
Xpel — Investor Presentation (June 2019)
26 slides from Xpel's investor presentation, June 2019
Slide 1: Investor Presentation June 2019
INVESTOR PRESENTATION JUNE 2019
Slide 2: Forward Looking Statements
This Presentation contains certain forward-looking statements in respect of various matters including upcoming events that involve known and unknown risks and uncertainties that are beyond the control of Management. Those risks and uncertainties include, among other things, risks related to: share p
Slide 3: The Leader in Protective Films
AUTOMOTIVE PAINT PROTECTION FILMS AUTOMOTIVE WINDOW TINT ARCHITECTURAL WINDOW FILMS THE THE LEADER LEADER IN IN PROTECTIVE PROTECTIVE FILMS FILMS 3
Slide 4: A Brand Built Over 20 Years
HEADQUARTERED IN 200 FULL TIME EMPLOYEES SAN ANTONIO, TX 2000+ CUSTOMERS FOUNDED IN 1997 OPERATIONS IN 5 COUNTRIES SEC REGISTRATION IN PROCESS 9 COMPANY OWNED NASDAQ LISTING APPLIED INSTALL CENTERS FOR (SYMBOL: “XPEL”) TSXV:DAP.U OTC GREY:XPLT A BRAND BUILT OVER 20 YEARS 4
Slide 5: History That Continues to Set the Standards
OPEN PA R A S O L C A N A DA ASIA OFFICE ACQUISITION ULTIMATE ULTIMATE PLUS PA I N T P R O T E C T I O N F I L M A U T O M O T I V E W I N D OW F I L M PA I N T P R O T E C T I O N F I L M 1998-2005 2007 2010 2011 2014 2015 2016 2017 2018 2019 SEC REGISTRATION (APPLIED FOR) STANDARD PA I N T P R O T
Slide 6: Competitive Differentiators
FILM TECHNOLOGY DISTRIBUTION INFRASTRUCTURE Self-healing, Durable & Stain Resistant Inventory In Several Locations Globally Ease of Installation Meets Just In Time Needs of Customers DAP SOFTWARE CUSTOMER SERVICE Unmatched Quality & Fit, Saves Installation, Software & Installer Time & Money Training
Slide 7: Key Investment Highlights
Strong Recognition as Premium Brand M TECHNOLOGY FIL DA Significant Domestic and International C E P I RV SO Market Opportunity SE FT WA R ME RE CUSTO Robust Growth, Profitability and Strong Balance Sheet MARKE PRODUCTS URE TIN High Insider Ownership Creates Firm CT G RU Alignment with Shareholders
Slide 8: Complete Protection
ULTIMATE PLUS PA I N T P R O T E C T I O N F I L M Protects Hoods, Bumpers, Fenders, Mirrors, Rocker Panels, Rear Wheel Impact and A-Pillars. COMPLETE PROTECTION 8
Slide 9: Ultimate Plus
ULTIMATE PLUS Invisible, Cut-To-Fit PA I N T P R O T E C T I O N F I L M Protection Film CLEARCOAT 0.5 mils (0.013 mm) Protects Paint From Rock POLYURETHANE Chips, Bug Acids and 6.0 mils (0.152 mm) Damage From Road Debris ACRYLIC ADHESIVE 1.6 mils (0.040 mm) Requires Professional POLYESTER RELEASE L
Slide 10: End Customer PPF Economics
COVERAGE - FULL CAR COVERAGE - FULL FRONT COVERAGE - PARTIAL HOOD Covers entire car. Covers entire painted front bumper, hood, fenders, Covers 6” - 12” of leading edge of hood. headlights and backs of the painted mirrors. $4000 - $5000 $100 - 200 $1800 - $2500 PRICE DETERMINATION Complexity Of Insta
Slide 11: Fusion Plus Ceramic Coating
C E R A M I C C O A T I N G Hydrophobic Coating Nicely Complements PPF Business Accretive To Gross Margin Mix FUSION PLUS CERAMIC COATING 11
Slide 12: Automotive Window Film
A U T O M O T I V E W I N DOW F I L M Large, Established Market for Heat Rejection & Cosmetic Purposes Customer Base Very Active in Product First Large Product Bolt-On to Channel Gross Margin Percentages Consistent With PPF AUTOMOTIVE WINDOW FILM 12
Slide 13: Architectural Glass Solutions
Large Addressable New Market First Non-Automotive Product Line Some Overlap with Existing Customers New Product for 2018 ARCHITECTURAL GLASS SOLUTIONS 13
Slide 14: Design Access Program
Used To Cut Film Into Vehicle Shapes Key Competitive Differentiator Good Patterns Reduce Install Time and Film Waste Over 80,000 Applications Daily Design Updates from Dedicated Design Team DESIGN ACCESS PROGRAM 14
Slide 15: XPEL Revenue Ecosystem
PRODUCT REVENUE 95 % INSTALLATION SERVICE REVENUE 5% $ 150 - $ 375 / CAR DIRECT - 65 % INDIRECT - 35 % SERVICE LOCATIONS US UK CANADA INTERNATIONAL DISTRIBUTORS 6 1 2 INDEPENDENT NEW CAR INSTALLERS DEALERSHIP $ 800 - $ 2500 $ 600 - $ 1500 / CAR / CAR END END NEW CAR CONSUMER CONSUMER DEALERSHIP XPEL
Slide 16: Strategic Initiatives
CONTINUE GLOBAL EXPANSION European Headquarters Established in 2017 Build Out Sales Team In Under-penetrated Geographies DRIVE GLOBAL BRAND AWARENESS High Visibility At Premium Events Advertising Placement In Media Consumed By Car Enthusiasts CHANNEL EXPANSION VIA ACQUISITION Acquire Select Installa
Slide 17: Annual Revenue
$109.9M $110,000 $100,000 $90,000 AGR $80,000 % C .8 $70,000 38 63.4% $67.3M $60,000 29.9% $51.8M $50,000 24.8% $41.5M $40,000 39.9% $29.6M $30,000 $24.7M $20,000 Q1 $10,000 2014 2015 2016 2017 2018 2019 IFRS U.S. GAAP ANNUAL REVENUE (IN MILLIONS) 17
Slide 18: Gross Margin Trend
$40,000 50.0% $33.4M $35,000 40.0% $30,000 33.0% 31.2% 30.4% 29.7% $25,000 30.0% 27.1% 24.8% $20,000 GROSS $16.7M 20.0% GROSS MARGIN MARGIN $ % $15,000 $14.0M $12.3M 10.0% $10,000 $9.3M $8.2M Q1 $5,000 0.0% 2014 2015 2016 2017 2018 2019 IFRS U.S. GAAP GROSS MARGIN TREND (IN MILLIONS) 18
Slide 19: EBITDA Profile
$13.0M $13,000 85.0% $12,000 80.0% $11,000 75.0% 70.0% $10,000 65.0% $9,000 60.0% $8,000 55.0% 50.0% $7,000 45.0% $6,000 40.0% 35.0% $5,000 EBITDA $4.4M EBITDA 30.0% $ % $4,000 $3.6M $3.6M 25.0% $3.3M $3,000 20.0% $2.8M 15.0% $2,000 Q1 11.9% 11.5% 10.0% 11.1% $1,000 8.6% 8.5% 5.0% 5.4% 0.0% 2014 201
Slide 20: Net Income
$9,000 $8.7M 50.0% $8,000 45.0% $7,000 40.0% $6,000 35.0% NET $5,000 30.0% NET INCOME INCOME $ 25.0% % $4,000 $3.1M 20.0% $3,000 $2.2M 15.0% $1.9M $2,000 $1.5M Q1 10.0% 10.4% $1.1M $1,000 7.5% 7.9% 5.0% 3.6% 4.2% 1.5% 0.0% 2014 2015 2016 2017 2018 2019 IFRS U.S. GAAP NET INCOME (IN MILLIONS) 20
Slide 21: Strong Financial Position
2017 2018 Q 1 2019 CURRENT RATIO 1.45 2.48 2.15 NET WORKING CAPITAL $6.3M $12.5M $13.3M ACCOUNTS RECEIVABLE $5.4M $5.6M $5.9M TOTAL INVENTORY $10.5M $10.8M $13.6M TOTAL ASSETS $27.8M $30.5M $38.6M TOTAL DEBT $4.0M $1.8M $1.7M (EXCLUDES LEASE OBLIGATIONS) DEBT TO EQUITY RATIO 31.6 % 8.8 % 7.4% (EXCLU
Slide 22: NASDAQ Listing
WHY? U.S. Based Company Majority Of Assets in U.S. All Officers/Directors Are U.S. Based Clears Up Corporate Identity Confusion Exposes XPEL to Larger Investor Audience Increases Access To Capital In Future (If Needed) Ultimately Increases Liquidity WHEN? Form 10 Filed Working Through SEC Comment Pr
Slide 23: Macro Growth Opportunities
Rock Chips Are Top Consumer Complaint Paint Protection Film Low Penetration to New Cars Sold Fragmented Market Provides Opportunity Ripe for Consolidation Dealerships Need Tangible, Profitable Products Window Film First Example of Leveraging Channel Opportunity Equivalent Opportunities Domestically
Slide 24: Appendix
APPENDIX
Slide 25: EBITDA Reconciliation
THREE MONTHS YEAR ENDED YEAR ENDED ENDED DEC 31, 2017 DEC 31, 2018 MAR 31, 2019 NET INCOME $994,330 $8,721,232 $1,860,003 INTEREST $328,402 $168,389 $28,706 TAXES $1,154,220 $2,760,073 $565,888 DEPRECIATION $594,712 $735,983 $200,818 AMORTIZATION $537,334 $642,801 $184,548 EBITDA $3,608,998 $13,028,
Slide 26: Complete Protection, Unseen.
San Antonio, TX USA +1 210-678-3700 XPEL.COM COMPLETE PROTECTION, UNSEEN.