Auto Partner Sa · GPW:APR

Auto Partner Sa — H1 2020 Earnings Presentation

23 slides from Auto Partner Sa's earnings presentation, Sep 17, 2020

  1. Slide 1: H1 2020 results

    H1 2020 results September 17th 2020

  2. Slide 2: Disclaimer

    Disclaimer This material is intended for information purposes only. It does not constitute an advertisement for or an offer of any publicly traded securities. Its contents have been compiled from sources considered reliable and accurate by Auto Partner S.A., although there is no assurance that such

  3. Slide 3: Agenda

    Agenda 1. About the Group 2. Market environment 3. Financial performance 4. Summary www.auto-partner.pl 3

  4. Slide 4: 1. About the Group

    1. About the Group AUTOPARTNER - ‘- » >. >

  5. Slide 5: Management Board of the Group

    Management Board of the Group Aleksander Górecki President of the Management Board/Founder Andrzej Manowski Vice President of the Management Board Piotr Janta Vice President of the Management Board www.auto-partner.pl 5

  6. Slide 6: Auto Partner Group at a glance

    Auto Partner Group at a glance ca. 10% share in the Polish market of spare parts distribution ca. 200,000 references available 12m parts stored in warehouses throughout Poland over 200 global suppliers 22 sale markets 62% share of online orders in the order book GlobalOne international GPO membershi

  7. Slide 7: Key developments in Q2 2020

    Key developments in Q2 2020 ▪ Business continuity maintained despite the pandemic ▪ Safety measures implemented in response to the COVID-19 pandemic, based on GIS and WHO recommendations ▪ Lower volumes of merchandise bought in April 2020 ▪ Prices raised and maintained at higher levels since April 2

  8. Slide 8: Well-developed distribution network

    Well-developed distribution network ▪ IT-supported logistics – just-in-time deliveries to geographically dispersed customers at a frequency of 3-5 times per day, subject to Covid-19 spread prevention measures ▪ Total warehousing space at the Group (held under leases) – over 100,000 square metres: ❑

  9. Slide 9: 2. Market environment

    2. Market environment AUTOPARTNER - ‘- » >. >

  10. Slide 10: Market environment – Part 1

    Market environment – Part 1 POLAND EUROPE ▪ Approximately 18m passenger cars and light commercial ▪ Approximately 270m passenger cars in Europe vehicles (<3.5t) in Poland (according to ACEA) ▪ Average vehicle age: 13.2 years (according to IBRM ▪ Average vehicle age: 10.8 years (according to ACEA) SA

  11. Slide 11: Market environment – Part 2

    Market environment – Part 2 ▪ March / April 2020: ▪ Restricted mobility of customers, exporters as a result of lockdown measures imposed in Europe and worldwide ▪ Sharp decline in car imports in the second half of March and in April ▪ Successive revisions of 2020 GDP forecasts for Poland ▪ May / Jun

  12. Slide 12: 3. Financial performance

    3. Financial performance AUTOPARTNER - ‘- » >. >

  13. Slide 13: H1 2020 highlights

    H1 2020 highlights REVENUE EBITDA EBIT NET PROFIT PLN PLN PLN PLN 371.1 73.2 61.9 45.3 million million million million +7% +42% +52% +56% www.auto-partner.pl 13

  14. Slide 14: H1 2020 sales

    H1 2020 sales Q2 sales y/y [PLNm] Sales by geographies [PLNm] 500 767.8 800 719.6 392.9 396.7 400 700 600 273.1 321.6 Export sales 300 500 Domestic sales 400 200 300 100 200 446.5 446.2 100 0 0 Q2 2019 Q2 2020 H1 2019 H1 2020 ▪ Sales in Q2 2020 on a par with the previous year’s level (+1%) ▪ 7% grow

  15. Slide 15: Quarterly sales

    Quarterly sales Quarterly sales [PLNm] 400 392.9 391.5 396.7 368.3 371.1 300 326.7 303.4 303.7 294.0 253.9 240.1 200 100 0 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 ❑ Sales supported by the well-developed distribution network (branch offices + warehouses

  16. Slide 16: Profitability

    Profitability H1 2020 profit figures [PLNm] +19% 250 217.4 200 183.1 +48% +52% +56% 150 H1 2019 100 H1 2020 73.2 61.9 49.5 45.3 50 40.6 29.0 0 Gross profit EBITDA EBIT net profit ▪ Significantly improved profitability, driven mainly by factors such as: ▪ strict control of operating expenses, ▪ price

  17. Slide 17: Gross profit

    Gross profit 30.3 Margin % 27.0 27.7 26.5 26.0 26.8 26.6 26.0 26.2 24.5 120.1 101.9 101.8 96.3 97.3 86.9 78.8 81.5 79.4 PLNm 67.4 1Q 20182Q 20183Q 20184Q 20181Q 20192Q 20193Q 20194Q 20191Q 20202Q 2020 ▪ Gross margin markedly higher thanks to the company’s fast reaction to market developments ▪ Stead

  18. Slide 18: Profit margins

    Profit margins 70 60 30.2 50 26.6 27.6 26.0 26.2 40 24.5 Gross margin (%) 30 12.2 EBITDA margin (%) EBIT margin (%) 20 7.8 10.8 6.9 7.4 Net margin (%) 6.1 6.6 10 6.8 5.7 4.9 5.7 5.1 8.2 4.7 3.4 4.0 3.8 3.4 0 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 www.auto-partner.pl 18

  19. Slide 19: Cash flow

    Cash flow Cash flow [PLNm] 120 112.5 70 19.2 20 6.9 Operating cash flows Investing cash flows -4.3 -1.0 -2.6 -30 -15.9 Financing cash flows Total cash flows -80 -103.0 -130 H1 2019 H1 2020 ▪ The Group’s liquidity position remained stable ▪ Significant decrease in liabilities under borrowings and fac

  20. Slide 20: Stable stock levels

    Stable stock levels Stocks* [PLNm] 500 468.1 469.6 478.8 439.8 447.3 448.2 448.2 400 410.7 382.8 391.2 366.9 300 200 100 0 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 ▪ Inventory turnover as at June 30th 2020: 157 days, vs 150 days the year before ▪ Stable

  21. Slide 21: 4. Summary

    4. Summary AUTOPARTNER —_—> >

  22. Slide 22: Summary

    Summary → Swift response to the pandemic, business continuity maintained by the company across all areas → Plan to continue with cost-saving policy → Product prices raised and maintained at higher levels → Significant improvement in profit margins and plan to keep them high y/y → 10% share in the st

  23. Slide 23: THANK YOU!

    THANK YOU! ul. Ekonomiczna 20 43–150 Bieruń www.auto-partner.pl

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