Delticom Ag · XETR:DEX
Delticom — FY2008 Earnings Presentation
23 slides from Delticom's earnings presentation, Mar 30, 2009
Slide 1: A Firm Grip. Investor Presentation
A Firm Grip. Investor Presentation on the Occasion of the Release of the Financial Results 2008 Hanover, 30th March 2009
Slide 2: Agenda
Agenda Delticom at a Glance Business Model Seasonalities in the Tyre Trade Financials Outlook Investor Presentation Hanover, 30th March 2009 2
Slide 3: Agenda
Agenda Delticom at a Glance Business Model Seasonalities in the Tyre Trade Financials Outlook Investor Presentation At a glance Business Model Seasonalities Financials Outlook Hanover, 30th March 2009 3
Slide 4: Delticom at a Glance
Delticom at a Glance 2008 2007 yoy #1 European online tyre dealer (car replacement tyres): Revenues € million 259.0 215.5 +20.2 > 100 online shops in 35 countries EBIT € million 16.4 12.3 +34.0 founded 1999, IPO Oct 06, SDAX Dec 08 EBIT margin % 6.4 5.7 customer base: more than 2.6 million Net incom
Slide 5: Agenda
Agenda Delticom at a Glance Business Model Seasonalities in the Tyre Trade Financials Outlook Investor Presentation At a glance Business Model Seasonalities Financials Outlook Hanover, 30th March 2009 5
Slide 6: Tyres and the Internet
Tyres and the Internet European Car Replacement Tyres: € 11 billion Germany: 2 bad years in a row, difficult 2009 ahead. Rest 60 SA +2.5% 20 DE 50 other 49 50 -12.7% EE+CE NA -3.5% -3.3% 67 76 263 40 Western World Europe 30 UK WE 24 20 199 ES FR in million tyres Asia 13 10 IT 24 213 22 0 in million
Slide 7: Redesign of the Tyre Distribution Chain
Redesign of the Tyre Distribution Chain Traditional Retail ► Delticom Redesign European Tyre Non-European Tyre European Tyre Non-European Tyre Manufacturers Manufacturers Manufacturers Manufacturers Wholesalers Delticom European Wholesalers Distribution Centers Retailers Small Garages B2B B2C Custom
Slide 8: Agenda
Agenda Delticom at a Glance Business Model Seasonalities in the Tyre Trade Financials Outlook Investor Presentation At a glance Business Model Seasonalities Financials Outlook Hanover, 30th March 2009 8
Slide 9: 2007 vs. 2008 Seasonalities
2007 vs. 2008 Seasonalities Q1 Q2 Q3 Q4 1. End of Jan 08 was warmer than Jan 07 – hurt Q1 „Relative“ revenue growth Weather 2. Mar 08 was colder than Mar 07 – late start into summer season 2008, revenues decreased yoy 3. Cold Q2 lead to investment into market share, revenues Snowfall increased yoy 4
Slide 10: Seasonal Demand
Seasonal Demand ► Repurchases constitute important growth potential Investor Presentation At a glance Business Model Seasonalities Financials Outlook Hanover, 30th March 2009 10
Slide 11: Agenda
Agenda Delticom at a Glance Business Model Seasonalities in the Tyre Trade Financials Outlook Investor Presentation At a glance Business Model Seasonalities Financials Outlook Hanover, 30th March 2009 11
Slide 12: Quarterly Revenues
Quarterly Revenues in € million 2006 2007 2008 100 100 +20.9 % +25.2 % 80 +8.2 % 80 +26.5 % 60 +21.9 % 60 +31.5 % +9.4 % +52.3 % 40 40 20 20 25.6 49.9 33.5 64.2 38.9 63.1 44.0 69.5 42.6 78.9 53.7 84.0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ► Fluctuations in growth rates: seasons, weather, base effe
Slide 13: Revenues-to-EBIT Bridge
Revenues-to-EBIT Bridge in € million ► ► ► ► ► ► ► ► ► Gross margin and operating leverage drive EBIT Investor Presentation At a glance Business Model Seasonalities Financials Outlook Hanover, 30th March 2009 13
Slide 14: Revenues and Gross Profit
Revenues and Gross Profit Revenues Cost of Sales Gross Profit Margin 28% 80 300 300 +20.2% +27.6% 27% 250 +24.5% 250 60 +31.1% +18.4% 26% 200 200 +22.8% 26.1% 40 25% 150 150 24.7% 24% 100 100 20 23.5% 23% 50 50 173.1 215.5 259.0 133.2 163.6 193.7 40.9 53.6 68.5 0 0 0 22% 2006 2007 2008 2006 2007 200
Slide 15: Logistics
Logistics Transportation Margin Stocking Tyres Margin Rents Margin 25 9% +67.9% 1,5% 1,5% +22.5% 3 3 20 -14.1% +34.3% 1.4% 8% 2 1,0% 2 1,0% 15 8.1% 1.0% 7.9% 1.0% 121% 10 7.3% 7% 1 0,5% 1 0,5% 0.6% 5 0.3% 12.7 17.1 20.9 1.7 2.9 2.5 0.0 0.7 1.5 0 6% 0 0,0% 0 0,0% 2006 2007 2008 2006 2007 2008 2006 20
Slide 16: Personnel (own and outsourced); Bad Debt
Personnel (own and outsourced); Bad Debt Personnel Margin Operation Centres Margin Receivable Losses Margin +15.2% 5 5 5 +45.0% 2% +28.3% 2% 2% 4 4 4 2.0% 1.9% 1.7% +39.3% 3 3 3 1.4% 1.5% 1.2% +78.1% 2 1% 2 1% 2 1% +16.9% 0.7% 1 1 1 0.5% 0.5% 3.0 4.3 5.0 2.1 2.9 3.8 0.9 1.1 1.9 0 0% 0 0% 0 0% 2006 2
Slide 17: P&L Drivers
P&L Drivers growth margin % 2008 2007 % factor 2008 2007 chng purchase price 50,00 Revenues 259.0 215.5 20.2 1.0 100.0 100.0 0.0 direct costs 6,00 56,00 Cost of sales 193.7 163.6 18.4 0.9 74.8 75.9 -1.1 Gross Profit (simple) 65.3 51.9 25.6 1.3 25.2 24.1 1.1 preset margin (e.g. 25%) 14,00 retail pric
Slide 18: Working Capital Management
Working Capital Management Accounts receivable ... Follow the seasonal peaks. Inventories ... Driven by sales (–) and capacity (+). (e.g. 2007 ramp-up) Accounts payable ... Discretionary payment terms, e.g. Q3 07: early payment Q2 08: stocking for winter season Working Capital ... Both + and –, with
Slide 19: Cash Bridge
Cash Bridge in € million 60 4.5 1.1 -5.6 60 16.4 0.5 -0.3 -1.6 1.5 -1.2 1.0 -7.9 -0.1 50 50 0.0 -0.1 42.9 40 40 34.5 30 30 20 20 10 10 0 0 s ies id ns s n ing IT st s 7 8 s ts nt tc. ce ble t io xe ble 2. 0 2. 0 Pa ere se EB me isio tor en se nc c ia Ta iv a As ya 1.1 1.1 s en I nt na f er u ip ov t
Slide 20: Agenda
Agenda Delticom at a Glance Business Model Seasonalities in the Tyre Trade Financials Outlook Investor Presentation At a glance Business Model Seasonalities Financials Outlook Hanover, 30th March 2009 20
Slide 21: Outlook
Outlook Current trading in Q1: no snowfall in January (less winter tyres), snowfall in February (no winter tyres) unusually low temperatures in March still: satisfactory yoy growth remember Jan/Feb are months with low revenues no indicator for Q1 Q1 is quarter with lowest revenues no indicator for F
Slide 22: Key Investment Highlights
Key Investment Highlights 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 5 Excellent growth opportunities Investor Presentation At a glance Business Model Seasonalities Financials Outlook
Slide 23: Vielen Dank!
Vielen Dank! Investor Relations: Melanie Gereke Delticom AG Brühlstr. 11 30169 Hanover, Germany eMail: ir@delti.com phone: +49-511-93634-8903 Philip v. Grolman Rainer Binder Frank Schuhardt Logistics and USA Purchasing and Pricing eCommerce and Finance Investor Presentation Hanover, 30th March 2009