Kamux Oyj · OMXHEX:KAMUX
Kamux Oyj — Investor Day (March 2024)
79 slides from Kamux Oyj's investor day presentation, Mar 20, 2024
Slide 1: Go Greener – Worth the trust
Go Greener – Worth the trust Capital Markets Day │ March 20, 2024 CAPITAL MARKETS DAY MARCH 20, 2024 1
Slide 2: Kamux CMD 2024 Agenda
Kamux CMD 2024 Agenda 14.00 WELCOME & PRACTICALITIES, Introducing the team Vesa Uotila, Chief Business Development Officer – The attractive European used car market Tapio Pajuharju, CEO – Kamux strategy for 2024–2026: Go Greener – Worth the trust Aino Hökeberg, Chief Marketing and Concept Officer –
Slide 3: Team introduction
Team introduction CAPITAL MARKETS DAY MARCH 20, 2024 3
Slide 4: Group Management Team
Group Management Team Tapio Pajuharju Jukka Havia Jani Koivu Andy Rietschel Martin Verrelli CEO CFO MANAGING DIRECTOR, MANAGING DIRECTOR, MANAGING DIRECTOR, FINLAND SWEDEN GERMANY Aino Hökeberg Jarkko Lehtismäki Marjo Nurmi Juha Saarinen Vesa Uotila CHIEF MARKETING CHIEF DIGITAL OFFICER CHIEF PEOPLE
Slide 5: The attractive European used car market
The attractive European used car market Vesa Uotila Chief Business Development Officer CAPITAL MARKETS DAY MARCH 20, 2024 5
Slide 6: 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 CAPITAL MARKETS DAY MARCH 20, 2024 6
Slide 7: >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 CAPITAL MARKETS DAY MARCH 20, 2024 7
Slide 8: The market has traditionally been very stable
The market has traditionally been very stable Used passenger car sales volume (pcs) 1,600,000 8,000,000 1,400,000 7,000,000 1,200,000 6,000,000 1,000,000 5,000,000 FI & SE 800,000 4,000,000 GE 600,000 3,000,000 400,000 2,000,000 200,000 1,000,000 0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 9: Market supported by sustained transportation needs, growing and aging car parc
Market supported by sustained transportation needs, growing and aging car parc and rising prices Source: Deutsche Bank [More and older cars in Germany (dbresearch.com)] 9
Slide 10: Several additional macro trends will shape the used car market
Several additional macro trends will shape the used car market Net impact expected to be supportive Urbanization Sharing Electrification Higher Ageing Transportation and regulation economy Battery electric vehicles interest rates population needs + Private car use in Different business require less
Slide 11: Steadily consolidating market
Steadily consolidating market Specialized players are taking market share Top 5 players’ and C2C FI: Top 5 market share from all deals market share of all used car FI: Private and other companies share from all sold cars sales in Finland and Sweden 60% 54% 50% 43% 40% 30% 25% 20% 16% 10% 0% 1 2 3 4
Slide 12: Largest used car sellers
Omnichannel remains the …while the share of digital and remote customer interaction winning operating model continues to increase. Largest used car sellers: Omnichannel Omnichannel Omnichannel 46 showrooms 13 showrooms 28 showrooms CAPITAL MARKETS DAY MARCH 20, 2024 12
Slide 13: Somewhat different competition dynamics in each operating country
Somewhat different competition dynamics in each operating country Top-5 player 25% 10% 2% market share Number of players >800 >1500 >30 000 in the market Main competitors Companies Companies specializing Branded dealers specializing in used cars, and in used cars branded dealers CAPITAL MARKETS DAY
Slide 14: Electrification of used car market continues, lagging new car sales
Electrification of used car market continues, but lagging new car sales by several years New car sales Used car sales 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 15: Fixed price car services cater to a growing customer segment
Fixed price car services cater to a growing customer segment Consumer uncertainty over future of different propulsion systems (e.g., diesel, Ev’s) New services New services Increasing preference gaining market of subscription-based share E.g., services vs. ownership CAPITAL MARKETS DAY MARCH 20, 202
Slide 16: Q&A
Q&A CAPITAL MARKETS DAY MARCH 20, 2024 16
Slide 17: Go Greener – Worth the trust
Go Greener – Worth the trust Tapio Pajuharju CEO CAPITAL MARKETS DAY MARCH 20, 2024 17
Slide 18: Truly people business and team effort
Truly people business and team effort CAPITAL MARKETS DAY MARCH 20, 2024 18
Slide 19: Kamux focuses on buying and selling used cars
Kamux focuses on buying and selling used cars Europe’s 5th largest used car retailer Revenue by Cars sold by A total of 78 stores country in 2023 country in 2023 in three operating countries 9% 5,603 46 12,777 stores 26% MEUR 68,257 23 1,002.1 cars in total stores in total (62,922) (968.7) 64% 9 49,
Slide 20: 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 21: Recap of previous strategy
Recap of previous strategy Strategic focus areas for 2021–2023 were: • Essential changes in • Focus areas remain • Omnichannel customer the operating valid, but we have experience and services environment since reworked priorities, • Efficient processes and early 2022 had a added new features scalab
Slide 22: Gradual repositioning and segmenting of our offering
Gradual repositioning and segmenting of our offering TRUST, CONVENIENCE & FRIENDLINESS • Market to polarize Franchise further dealers • Maintain the value-for- (Future) money position and build on top of that Independent dealer chains • More segmented approach and broader offering Small independents
Slide 23: Become the #1 used car retailer in Europe
OUR VISION Become the #1 used car retailer in Europe CAPITAL MARKETS DAY MARCH 20, 2024 23
Slide 24: 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 25: 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 26: 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 27: M&A and strategic partnerships to accelerate profitable growth
M&A and strategic partnerships to accelerate profitable growth – new tool in the toolbox Bolt-on used car retail acquisitions in existing markets that could support growth and fit Kamux Bolt-on service acquisitions in existing markets that complement Kamux offering Be ready for possible transformati
Slide 28: Kamux is part of circular economy and our ESG agenda
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 29: 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 30: CAPITAL MARKETS DAY MARCH 20, 2024
CAPITAL MARKETS DAY MARCH 20, 2024 30
Slide 31: Q&A
Q&A CAPITAL MARKETS DAY MARCH 20, 2024 31
Slide 32: Building true Kamux experience
Building true Kamux experience Aino Hökeberg Chief Marketing and Concept Officer CAPITAL MARKETS DAY MARCH 20, 2024 32
Slide 33: Customer Engagement
Customer Engagement CAPITAL MARKETS DAY MARCH 20, 2024 33
Slide 34: Customers prefer digital and remote touchpoints
Customers prefer digital and remote touchpoints • >9/10 1.2 m ONLINE & The role of digital channels is still increasing REMOTE • Digitalization enables Kamux to highlight and cross-sell its offering, and to build start their purchase monthly visits in transparency, comparability and findability jour
Slide 35: Accelerated alignment with market trends
Accelerated alignment with market trends CUSTOMER EXPECTATIONS ARE SHAPED BY OTHER RETAIL BUSINESSES Higher expectations Increased demand Stronger preference Enhanced transparency for the overall buying for exceptional and to omnichannel thanks to detailed reports journey, driven by consistent custo
Slide 36: Towards true omnichannel experience
Towards true omnichannel experience: placing customers in the center CAPITAL MARKETS DAY MARCH 20, 2024 36
Slide 37: 5 Key Focus Areas to elevate the Kamux Experience
5 Key Focus Areas to elevate the Kamux Experience FAIR CENTRALLY DRIVEN PRICES 1. 2. 3. 4. 5. RENEWED STORE AND TRUST AND INNOVATIVE SERVICES CUSTOMER CENTRIC SEAMLESS SERVICE AND OMNICHANNEL WEB CONCEPTS TRANSPARENCY within mobility space • Customer and with available online reports, CUSTOMER CUSTO
Slide 38: Focus on building true Kamux experience in sales and sourcing
Focus on building 1 Seamless omnichannel customer journey with renewed store and web concept true Kamux experience in sales and sourcing 2 Trust and transparent quality 3 Innovative and customer centric services CAPITAL MARKETS DAY MARCH 20, 2024 38
Slide 39: Q&A
Q&A CAPITAL MARKETS DAY MARCH 20, 2024 39
Slide 40: Creating value from operations
Creating value from operations Juha Saarinen Chief Sourcing Officer CAPITAL MARKETS DAY MARCH 20, 2024 40
Slide 41: Next level in sourcing
Next level in sourcing Strengthen international 1 sourcing and supply chain management 2 Building trustworthiness with standardized and centralized operations 3 Go to original sources of cars CAPITAL MARKETS DAY MARCH 20, 2024 41
Slide 42: Sourcing and reconditioning channels
Purchases from 16 European countries SOURCING PURCHASING: SOURCING & CHANNELS 2023 PROFESSIONAL CONSUMERS TRADE-IN VEHICLES > 50 % trade-ins > 50 % RECONDITIONING: INSPECTION & Processing direct purchases from consumers Centers Processing Locally > 50 % B2B purchases Point of Sale CAPITAL MARKETS DA
Slide 43: Strategic priorities for purchases, processing and logistics
Strategic priorities for purchases, processing and logistics Cross-border collaboration Continue ramping up international sourcing team in purchasing • Team to purchase and allocate cars to countries; balancing stock across the Group Grow car sourcing from 'original' sources to minimize margin loss
Slide 44: CAPITAL MARKETS DAY MARCH 20, 2024
CAPITAL MARKETS DAY MARCH 20, 2024 44
Slide 45: Creating value from operations
Creating value from operations Industrialization and Continue developing Go to original sources standardization of cross-border purchasing and bigger fleets operations and international sourcing Improve visibility to Increasing the share of Inspections – building supply chain and shorten hub-based o
Slide 46: Q&A
Q&A CAPITAL MARKETS DAY MARCH 20, 2024 46
Slide 47: Time for a break
Time for a break CAPITAL MARKETS DAY MARCH 20, 2024 47
Slide 48: Kamux CMD 2024 Agenda
Kamux CMD 2024 Agenda 14.00 WELCOME & PRACTICALITIES, Introducing the team Vesa Uotila, Chief Business Development Officer – The attractive European used car market Tapio Pajuharju, CEO – Kamux strategy for 2024–2026: Go Greener – Worth the trust Aino Hökeberg, Chief Marketing and Concept Officer –
Slide 49: Strengthening the leading position
Strengthening the leading position Jani Koivu Managing Director, Kamux Finland CAPITAL MARKETS DAY MARCH 20, 2024 49
Slide 50: In Finland, Kamux is the market leader
In Finland, Kamux is the market leader Revenue and Cars profitability sold Revenue 64% of the Revenue Operating profit, % 60000 consolidated Group 800 8 revenue (2023) 50000 700 7 Nation-wide presence with 600 6 40000 46 showrooms (Dec. 31, 500 5 2023) 30000 400 4 Clear market leader in 300 3 20000
Slide 51: Finland: Strengthen position as the market leader
Finland: Strengthen position as the market leader Overall volume and Grow revenue through both volume and average price increase average price increase Strengthen market leader position in passenger cars Maintain market leader Scale up commercial vehicle business position • Tailor-made services base
Slide 52: Kamux Finland: strengthen the leading position
Kamux Finland: strengthen the leading position • Continue ramping up greater • Improve offering of EVs and Plug-in Helsinki region hybrids – more focused approach in selected showrooms • Showroom presence and offering • Further develop commercial vehicle • Rework retail network concept & offering •
Slide 53: Local sources of competitive advantage to strengthen the leading position
Local sources of competitive advantage to strengthen the leading position EXCELLENCE IN SELECTION OF CARS AND GERMAN AND SWEDISH CUSTOMER EXPERIENCE SERVICES BUILT TO MATCH OFFERING AVAILABLE FOR WITH TRANSPARENT CUSTOMER NEEDS, THE FINNISH MARKET – OMNICHANNEL CONCEPT LARGEST CAR SELECTION CROSS SE
Slide 54: Q&A
Q&A CAPITAL MARKETS DAY MARCH 20, 2024 54
Slide 55: Strengthening the core to ensure profitability
Strengthening the core to ensure profitability Andy Rietschel Managing Director, Kamux Sweden CAPITAL MARKETS DAY MARCH 20, 2024 55
Slide 56: Kamux Sweden
Kamux Sweden Revenue and Cars profitability sold Revenue Operating profit, % 16000 Kamux is a market 350 1.2 challenger and No. 6 14000 in Sweden 300 1 12000 0.8 Revenue 26% of the 250 10000 consolidated Group 0.6 200 8000 revenue (2023) 0.4 150 6000 Nation-wide 0.2 presence with 23 100 4000 0 showr
Slide 57: Sweden: Strengthening the core to ensure profitability
Sweden: Strengthening the core to ensure profitability Strengthen and streamline core processes to enhance customer focus Strengthening the core • Rebuilding teamwork and confidence • Productivity improvement and improved cost control • Misconduct detected and corrective actions ongoing Volume incre
Slide 58: Larger showrooms in optimal locations
Larger showrooms in optimal locations Expanding presence in Sweden and combining small locations Plan to enter the Northern Improve network efficiency Opportunities Swedish market • New bigger showrooms in • Catch opportunities that • Kamux currently not several key cities may arise following presen
Slide 59: Keys to profitability in Sweden
Keys to profitability in Sweden • Strengthening the core: improving • Car offering: more emphasis on EVs processes and policies, rebuilding and Plug-in hybrids with needed teamwork and confidence expertise • Corrective measures and necessary • More focus on existing add-on changes with productivity
Slide 60: Local sources of competitive advantage to ensure profitability
Local sources of competitive advantage to ensure profitability NATIONWIDE COVERAGE EXPANSION OF A CLEAR INTERNATIONAL SOURCING AND CROSS SALES OMNI-CHANNEL CONCEPT AND AVAILABILITY OF OPPORTUNITIES CARS CAPITAL MARKETS DAY MARCH 20, 2024 60
Slide 61: Q&A
Q&A CAPITAL MARKETS DAY MARCH 20, 2024 61
Slide 62: Building up profitable growth
Building up profitable growth Martin Verrelli Managing Director, Kamux Germany CAPITAL MARKETS DAY MARCH 20, 2024 62
Slide 63: Kamux Germany
Kamux Germany Revenue and Cars profitability sold Revenue Operating profit, % 7000 Original focus in Hamburg and 120 0 6000 Schleswig-Holstein 100 -1 5000 Revenue 9% of the consolidated Group 80 -2 4000 revenue (2023) 60 -3 3000 Germany with 9 40 -4 2000 showrooms (Dec. 31, 2023) 20 -5 1000 MEUR 0 -
Slide 64: Germany: Build up sustainable profitable growth
Germany: Build up sustainable profitable growth Overall volume & Increase volume through organic growth and develop average price mix closer to Finland and Sweden price mix change • Kamux chain brand recognized by more German consumers in the focus areas Focus on increasing sales of existing add-on
Slide 65: Expand to areas with higher used car demand
Expand to areas with higher used car demand Optimize and fully utilize existing showroom network Eastern Ambition to expand presence and move focus to Germany with regions with higher used car demand in Germany Saarland and limited public Rheinland-Pfalz transportation, Currently 9 showrooms with th
Slide 66: Kamux Germany: building up scale for sustainable profitability
Kamux Germany: building up scale for sustainable profitability • Introduce independent 3rd party inspection reports • Selection of cars and services built to match customer needs within • Upgrade integrated services the region like leasing and tire sales • Continue the professional 3rd party • Suppo
Slide 67: Local sources of competitive advantage to build sustainable profitability
Local sources of competitive advantage to build sustainable profitability ADVANTAGEOUS PRICING EASINESS. FINNISH AND SWEDISH DUE TO PROFESSIONAL CONTRACT PROCESS OFFERING AVAILABLE FOR SOURCING AND STRICT (CAR AND FINANCING) THE GERMAN MARKET – COST MANAGEMENT FULLY DIGITAL CROSS SELLING CAPITAL MAR
Slide 68: Q&A
Q&A CAPITAL MARKETS DAY MARCH 20, 2024 68
Slide 69: Driving performance
Driving performance Jukka Havia CFO CAPITAL MARKETS DAY MARCH 20, 2024 69
Slide 70: 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 71: Long-term financial targets vs. past performance
Long-term financial targets vs. past performance Sold cars Revenue Adjusted EBIT margin (pcs) (EUR million) (% of revenue) 1,500 100,000 4.1% 4.2% 3.9% 4.0% 1,002 3.3% 969 68,429 68,257 937 62,922 60,657 55,432 724 46,596 659 528 1.8% 1.8% 2018 2019 2020 2021 2022 2023 LT 2018 2019 2020 2021 2022 20
Slide 72: Customer and personnel satisfaction driving also financial performance
Customer and personnel satisfaction driving also financial performance NPS eNPS 60 50 40 33 27 50 16 2023 LT 2021 2022 2023 LT Target Target CAPITAL MARKETS DAY MARCH 20, 2024 72
Slide 73: Dividend policy stays unchanged
Dividend policy stays unchanged EUR EPS DPS Payout,% % 0.7 80 70 0.6 DIVIDEND POLICY 60 The company’s target 0.5 is a dividend payout of 50 0.4 at least 25% of the 40 profit for the financial 0.3 year 30 0.2 20 0.1 10 0 0 2019 2020 2021 2022 2023 CAPITAL MARKETS DAY MARCH 20, 2024 73
Slide 74: Closing remarks
Closing remarks Tapio Pajuharju, CEO Jukka Havia, CFO CAPITAL MARKETS DAY MARCH 20, 2024 74
Slide 75: Key takeaways
Key takeaways Profitable growth across International scope, all markets with M&A economies of scale and more toolbox available where efficient processes to feasible enhance productivity Customer and personnel Strong balance sheet insights to be taken into supporting strategy account to drive trust a
Slide 76: How we create value
How we create value 1 Grow faster than the market by putting customer in the epicentre 2 Improve profitability through scale and standardization of operations 3 Introduce new services and products CAPITAL MARKETS DAY MARCH 20, 2024 76
Slide 77: Q&A
Q&A CAPITAL MARKETS DAY MARCH 20, 2024 77
Slide 78: 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
Slide 79: Thank You!
Thank You! CAPITAL MARKETS DAY MARCH 20, 2024 79