Kamux Oyj · OMXHEX:KAMUX

Kamux Oyj — Q3 2022 Earnings Presentation

31 slides from Kamux Oyj's earnings presentation, Nov 18, 2022

  1. Slide 1: Kamux Quarterly Results January–September 2022

    Kamux Quarterly Results January–September 2022 CEO Juha Kalliokoski CFO Marko Lehtonen 1 NOVEMBER 18, 2022 Q3/2022

  2. Slide 2: Table of Contents

    Table of Contents Interim Report January–September 2022 Strategy, Q3 in brief Financial outlook and Summary development financial targets 2 NOVEMBER 18, 2022 Q3/2022

  3. Slide 3: Kamux Vision

    Kamux Vision #1 used car retailer in Europe

  4. Slide 4: Among dealers focusing purely on used cars, Kamux holds the 3rd place

    Among dealers focusing purely on used cars, Kamux holds the 3rd place Largest used car dealers Home Operating countries Pcs in 2021 – Kamux estimate in Europe in 2021 country Constellation Group UK AT, BE, CZ, DK, FI, FR, DE, GR, HU, IE, IT, LU, NL, NO, PL, PT, RO, SL, 80,000 – 100,000 SE, CH, TK, U

  5. Slide 5: Kamux Q3 2022 in brief

    Kamux Q3 2022 in brief 1. 3. 5. Revenue increased by Adjusted operating profit Revenue from integrated services 2.8% to EUR 261.7 decreased compared to the increased to EUR 13.0 million million (254.6) previous year and was EUR 5.2 (10.7), or 5.0% (4.2) of total million (10.0), or 2.0% (3.9) of reve

  6. Slide 6: The market for used cars continued to contract strongly in all operating countries

    The market for used cars continued to contract strongly in all operating countries during Q3/2022 -20,9% -20,1% • The market decline 2 200 000 Q3/2022 vs. Q3/2021 in 2 000 000 -8,1% operating countries: 1 800 000 • Finland -13% 1 600 000 • Sweden -19% 1 400 000 1 200 000 • Germany -21% 1 000 000 800

  7. Slide 7: Kamux strengthened its positions in all operating countries

    Kamux strengthened its positions in all operating countries Market Kamux Market size market Market development Kamux position and (2021) share in Q2 2022 development in Q2 2022 Suomi ~0.6 million ~8.0% We estimate that the Kamux maintained its New passenger car cars #1 market for used cars position

  8. Slide 8: Kamux Q3 2022 — revenue grew as a result of higher average prices

    Kamux Q3 2022 — revenue grew as a result of higher average prices, integrated services developed positively Revenue (EUR million) Adjusted Operating Profit (EUR million) 2.8% -47.8% 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 2019 202

  9. Slide 9: Number of sold cars decreased in Q3 2022 as the market continued to contract

    Number of sold cars decreased in Q3 2022 as the market continued to contract in all operating countries Sold cars (pcs) -9.3% 20,000 18,699 18,000 17,285 16,952 16,760 16,728 16,242 16,000 15,733 15,601 15,688 14,395 14,227 14,000 13,413 12,000 13,171 12,751 11,513 11,868 12,051 10,000 11,456 12,108

  10. Slide 10: Revenue from integrated services developed positively in Q3 2022

    Revenue from integrated services developed positively in Q3 2022 Revenue from integrated services MEUR % 14 5.7% 6 5.4% 5.3% 12.9 12.8 13.0 5.1% 5.3% 11.8 5.2% 12 5 4.6% 5.0% 5.0% 10.7 10.2 4.5% 9.9 10 9.4 9.4 9.4 4.3% 4.2% 8.9 4 8.6 8 3 6 2 4 1 2 0 0 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21

  11. Slide 11: New openings and showrooms on November 18, 2022

    New openings and showrooms on November 18, 2022 2022 FINLAND SWEDEN GERMANY TOTAL Q1 Oulu — — 1 Q2 — Malmö — 1 Wentorf and Olari and Niittykumpu Q3 — Nedderfeld were -2 were combined combined Nyköping October — — 2 Kalmar 2022 FINLAND SWEDEN GERMANY TOTAL Total showrooms on 47 24 7 78 November 18, 2

  12. Slide 12: Financial development

    Financial development 12 NOVEMBER 18, 2022 Q3/2022

  13. Slide 13: Kamux's business concept works also in a challenging market environment

    Kamux’s business concept works also in a challenging market environment • Demand for used cars continued to be sluggish, as accelerated inflation and the energy crisis weakened consumers’ purchasing power and confidence in the future • Gross margin per car was 1,427 euros and it weakened from the pr

  14. Slide 14: Key figures

    Key figures (MEUR) 7-9/2022 7-9/2021 Change, % 1-9/2022 1-9/2021 Change, % 1-12/2021 Revenue 261.7 254.6 2.8% 745.8 693.3 7.6% 937.4 Gross profit 24.2 29.0 -16.5% 72.9 72.7 0.3% 101.3 as percentage of revenue, % 9.2% 11.4% 9.8% 10.5% 10.8% Operating profit (EBIT) 5.2 10.0 -47.8% 15.4 18.5 -16.8% 28.

  15. Slide 15: Kamux Finland — Q3 2022 revenue grew as a result of higher average prices

    Kamux Finland — Q3 2022 revenue grew as a result of higher average prices Revenue (EUR million) +3.0% 175 150 125 • Revenue increased by 3.0% compared to the 100 previous year and was EUR 169.2 million 75 (164.3). 50 25 • Gross margin decreased compared to the 0 Q1 Q2 Q3 Q4 previous year and was EUR

  16. Slide 16: Kamux Sweden — Q3 2022 revenue at previous year's level

    Kamux Sweden — Q3 2022 revenue at previous year’s level Revenue (EUR million) +0.4% 100 • Total revenue increased by 0.4% compared to the 80 previous year and was EUR 78.7 million (78.4). 60 • Gross margin decreased compared to the 40 previous year and was EUR 4.8 million (5.3), or 20 6.1% (6.8) of

  17. Slide 17: Kamux Germany — external revenue grew and operating profit improved

    Kamux Germany — external revenue grew and operating profit improved in a difficult market environment in Q3 2022 Revenue (EUR million) +2.2% 30 • Total revenue increased by 2.2% compared to the 25 previous year and was EUR 24.6 million (24.1). 20 15 External revenue increased by 5.6%. 10 • Gross mar

  18. Slide 18: Net working capital and inventories remained at a high level

    Net working capital and inventories remained at a high level due to inventory mix and decrease in accounts payable Net Working Capital (EUR million) Inventories (EUR million) +18.8% 130 +48.7% 150 120 140 110 130 120 100 110 90 100 80 90 70 80 60 70 50 60 50 40 40 30 30 20 20 10 10 0 0 Q4 19 Q1 20 Q

  19. Slide 19: Challenging market environment continues to be reflected in net cash flow development

    Challenging market environment continues to be reflected in net cash flow development Cash Flow from Operating Activities Components of Cash Flow from Operating Activities (EUR million) Q3 2022 (EUR million) 25.0 20 22.5 20.0 17.5 15.0 15 12.5 10.0 7.5 5.0 10 6.8 0.6 2.5 0.0 -2.5 4.9 -2.2 -5.0 5 3.6

  20. Slide 20: Investments in leading with knowledge and growth were continued

    Investments in leading with knowledge and growth were continued, more focus on building in-house competence Investments (EUR million) 2.5 • In line with our strategy, we have 2.0 systematically invested in growth 1.5 1.0 • Kamux seeks to gain a significant competitive 0.5 advantage by investing in l

  21. Slide 21: Dividend from 2021

    Dividend from 2021 • AGM decided that a dividend of EUR 0.20 per share (EUR 0.24 per share) be paid • Earnings per share were EUR 0.49 (EUR 0.58) • Payout ratio is 41% (41%) • Dividend paid in two instalments • EUR 0.08 was paid on April 29, 2022 • EUR 0.12 was paid on Oct 28, 2022 21 NOVEMBER 18, 2

  22. Slide 22: Strategy, outlook and financial targets

    Strategy, outlook and financial targets 22 NOVEMBER 18, 2022 Q3/2022

  23. Slide 23: Kamux seizes the huge market opportunity and accelerates growth

    Kamux seizes the huge market opportunity as a strongly digital and international retail chain and Strategy period accelerates growth 2021―2023 Profitability development is built on business growth and scalability during the strategy period

  24. Slide 24: Seamless Omni-Channel Customer Experience

    Seamless Omni-Channel Customer Experience RESEARCH COMPARISON AND CONSIDERATION The role of the seller is also key in digital transactions: • Creating customer and service experience PURCHASE • Supporting the purchasing process: chat, phone, video DECISION 95% of customers spend over 4hrs online to

  25. Slide 25: Kamux Way to Accelerate Growth

    Kamux Way to Accelerate Growth Seamless omni- Utilizing data Efficient Developing channel customer and leading processes, capabilities experience and with scalability and and continuous services knowledge store strategy learning Systems for Trust and knowledge affordability Induction management and

  26. Slide 26: Financial targets 2021–2023

    Financial targets 2021–2023 • Revenue growth of over 20% annually Indicator Target Actual 1-9/2022 (from Feb 26, 2021) • Annually increasing adjusted EBIT and Revenue growth Over 20% 7.6% adjusted EBIT margin over 3.5% annually • Return on equity (ROE) over 25% Adjusted Annually increasing EUR 15.4

  27. Slide 27: Revised outlook for 2022

    Revised outlook for 2022, updated on November 18, 2022 In 2022, Kamux expects its revenue to be over EUR 1,000 million. The company expects its adjusted operating profit to be approximately EUR 23–26 million. Although Kamux’s business is not exposed to immediate Russia-related risks, the war in Ukra

  28. Slide 28: Summary

    Summary

  29. Slide 29: Summary Q3 2022

    Summary Q3 2022 1. 3. 5. Revenue increased by Adjusted operating profit Revenue from integrated services 2.8% to EUR 261.7 decreased compared to the increased to EUR 13.0 million million (254.6) previous year and was EUR 5.2 (10.7), or 5.0% (4.2) of total million (10.0), or 2.0% (3.9) of revenue rev

  30. Slide 30: Thank you!

    KAMUX 6 Thank you!

  31. Slide 31: Disclaimer

    Disclaimer Since these statements are based on It should be noted that Kamux and its current plans, estimates and projections, business are exposed to various risks and they involve risks and uncertainties that uncertainties, and certain statements herein may cause actual results to materially which

Kamux — Q3 2022 Earnings Presentation on 6ix