Xpel, Inc. · NASDAQ:XPEL
Xpel — Investor Presentation (September 2020)
24 slides from Xpel's investor presentation, Sep 1, 2020
Slide 1: Investor Presentation September 2020
INVESTOR PRESENTATION SEPTEMBER 2020
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT 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,
Slide 3: The Leader in Protective Films
THE LEADER IN PROTECTIVE FILMS AUTOMOTIVE PAINT PROTECTION FILMS AUTOMOTIVE WINDOW TINT HOME & OFFICE WINDOW FILMS 3
Slide 4: A Brand Built Over Years
A BRAND BUILT OVER 20 YEARS HEADQUARTERED IN SAN ANTONIO, TX FOUNDED IN 1997 NASDAQ: XPEL 300 FULL TIME EMPLOYEES 2400+ CUSTOMERS GLOBAL OPERATIONS 4
Slide 5: History That Continues to Set the Standards
HISTORY THAT CONTINUES TO SET THE STANDARDS OPEN PARASOL CANADA ASIA OFFICE ACQUISITION DESIGN ACCESS PROGRAM ULTIMATE PAINT PROTECTION FILM ULTIMATEPLUS AUTOMOTIVE WINDOW FILM PAINT PROTECTION FILM CENTRE 1998-2007 2010 2011 2014 2015 2016 2017 2018 2019 2020 (SYMBOL: XPEL) STANDARD PAINT PROTECTIO
Slide 6: Key Investment Highlights
KEY INVESTMENT ECHNO LM T LOG FI Y HIGHLIGHTS D E A C P I S V O R F E T Strong Recognition as Premium Brand S W R A E R M E O T S Significant Domestic and International U C Market Opportunity M A R K E E PRODUCTS T R Robust Growth, Profitability and I N U T G C Strong Balance Sheet & U L R E T A S D
Slide 7: Complete Protection: UltimatePlus Paint Protection Film Coverage
COMPLETE PROTECTION ULTIMATEPLUS PAINT PROTECTION FILM COVERAGE BUMPER HOOD HEADLIGHTS & FOG LIGHTS FENDERS MIRRORS A-PILLARS & ROOFLINE DOOR SILL DOOR EDGES & DOOR CUPS ROCKER PANELS & REAR LUGGAGE STRIP WHEEL IMPACT AREA 7
Slide 8: Automotive Products
ULTIMATEPLUS PAINT PROTECTION FILM Invisible, Cut-To-Fit Protection Film Protects from Rock Chips, Bug Acids, and Road Debris Damage Professionally Installed New-Car Product AUTOMOTIVE WINDOW FILM AUTOMOTIVE Film for Heat Rejection, Security and Appearance PRODUCTS 4 Core Lines of Film, Something Fo
Slide 9: End Customer PPF Economics
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 - $6000 $100 - 200 $1800 - $2500 FACTORS INFL
Slide 10: The XPEL Difference
Cloud-Based Application Updated Daily with 80,000 Vehicle Applications Pre-Cut Film Prevents Cutting on Car DESIGN ACCESS PROGRAM Reduces Installation Time, Material Waste CERTIFIED TRAINING THE XPEL Essential to New Customer Success and Industry Growth DIFFERENCE Corporate Training Facilities in 5
Slide 11: Non-Automotive Products
NON-AUTOMOTIVE PRODUCTS SURFACE PROTECTION HOME & OFFICE WINDOW FILM Sell to a Variety of Niche Solar Control and Security for Commercial Non-Automotive Uses and Residential Applications Electronics, Stainless Steel, Solid Distinct Customer Set, But Similar Profile RXPROTECTION FILM Surface Countert
Slide 12: XPEL Revenue Ecosystem
XPEL REVENUE ECOSYSTEM PRODUCT INSTALLATION REVENUE 92 % SERVICE REVENUE 8% $ 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 C
Slide 13: Strategic Initiatives
STRATEGIC INITIATIVES CONTINUE GLOBAL EXPANSION Operations in 9 Countries 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 EXPAND NON-AUTOMOTIVE PRODUCT PORTFOLIO Find Opport
Slide 14: COVID-19 Update
COVID-19 UPDATE IMPACT TO Q1 CHINA BUSINESS Q1 2020 China Revenue Declined 55% vs Q1 2019 IMPACT TO US AND OTHER AREAS IN EARLY Q2 April 2020 Overall Revenue Down 21% April 2020 US Revenue Down 36% MANAGEMENT OBJECTIVES Ensure Safety Of Our Team Continue To Serve Our Customers Maximize Our Liquidity
Slide 15: Revenue Trend
REVENUE TREND IN MILLIONS $129.9M $130,000 $120,000 18.2% $109.9M $110,000 $100,000 $90,000 33.0% CAGR $80,000 63.4% $70,000 $67.3M $64.2M $60,000 29.9% Q 2 $35.8M $51.8M 19% $50,000 24.8% GROWTH $41.5M Q vs Q $40,000 $30,000 Q 1 $28.4M $20,000 14.8% GROWTH Q vs Q 2015 2016 2017 2018 2019 Q2 2020 YT
Slide 16: 2020 Sale Mix by Region
2020 SALE MIX BY REGION CONTINENTAL EUROPE 8.9% UK CANADA 2.7% 12.7% UNITED STATES 49.3% CHINA 18.7% ASIA PACIFIC 3.0% LATIN MIDDLE EAST / AMERICA AFRICA 1.5% 2.9% OTHER 0.3% 16
Slide 17: Gross Margin Trend
GROSS MARGIN TREND IN MILLIONS $45,000 $43.5M $40,000 50.0% $33.4M $35,000 40.0% $30,000 36.3% 33.5% 32.8% 30.4% 29.7% $25,000 30.0% GROSS 27.1% GROSS MARGIN 24.8% MARGIN $ % $20,000 $16.7M 20.0% $15,000 $14.0M $12.3M $11.8M $10.3M 10.0% $10,000 $5,000 0.0% 2015 2016 2017 2018 2019 Q1 2020 Q2 2020 I
Slide 18: EBITDA Profile
EBITDA PROFILE IN MILLIONS $20,000 100.0% $18.7M 95.0% 90.0% 85.0% 80.0% $15,000 75.0% 70.0% $13.0M 65.0% 60.0% EBITDA EBITDA $ 55.0% % $10,000 50.0% $8.2M 45.0% 40.0% 35.0% 30.0% $5,000 $4.4M 25.0% $3.6M $3.6M 20.0% 15.0% 14.4% 12.8% 11.9% 10.0% $1,000 8.6% 8.5% 5.0% 5.4% 0.0% 2015 2016 2017 2018 2
Slide 19: Net Income Trend
NET INCOME TREND IN MILLIONS $15,000 $14.0M 50.0% 45.0% 40.0% $10,000 $8.7M 35.0% NET 30.0% NET INCOME INCOME $ 25.0% % $5.6M $5,000 20.0% 15.0% $2.2M 10.0% 10.8% $1.5M 8.7% $1.0M 7.9% 5.0% $1,000 3.6% 4.2% 1.5% 0.0% 2015 2016 2017 2018 2019 Q2 2020 YTD IFRS U.S. GAAP 19
Slide 20: Strong Financial Position
STRONG FINANCIAL POSITION U.S. GAAP - IN MILLIONS 2018 2019 2020 QTD CASH • CASH EQUIVALENTS $4.0 M $11.5M $25.8M NET WORKING CAPITAL $12.5M $24.5M $30.7M ACCOUNTS RECEIVABLE $5.6M $7.2M $7.2M TOTAL INVENTORY $10.8M $15.1M $14.7M TOTAL ASSETS $30.5M $51.6M $68.2M TOTAL DEBT $1.8M $0.8M $7.4M (EXCLUD
Slide 21: Macro Growth Opportunities
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
Slide 22: Appendix
APPENDIX
Slide 23: Non-GAAP Measures: EBITDA Reconciliation
NON - GAAP MEASURES EBITDA RECONCILIATION U.S. GAAP - IN MILLIONS THREE MONTHS ENDED SIX MONTHS ENDED June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 NET INCOME $3,973,690 $3,007,310 $5,585,044 $4,867,313 INTEREST $74,554 $29,074 $105,112 $57,780 TAXES $1,088,071 $938,405 $1,514,450 $1,504,2
Slide 24: XPEL: Complete Protection, Unseen.
San Antonio, TX USA +1 210-678-3700 XPEL.COM COMPLETE PROTECTION, UNSEEN.