on track. - delticom...on track. investor and analyst presentation on theoccasionof the release of...
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On track.
Investor and Analyst PresentationOn the Occasion of the Release of the Preliminary Figures for FY 2012Hanover, 23 January 2013
Preliminary FY Figures
Hanover, 23 January 2013 2
Agenda
Delticom at a Glance
Business Model
Profit & Loss
Balance Sheet
Outlook
Preliminary FY Figures
Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook 3
Agenda
Delticom at a Glance
Business Model
Profit & Loss
Balance Sheet
Outlook
Preliminary FY Figures
Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook 4
Delticom at a Glance
DE 8557 US 2474 UK 2033 FR 4405 CH 1770
� #1 European online tyre dealer
� > 100 online shops in 42 countries
� founded 1999, IPO Oct 2006, SDAX Dec 2008
� customer base: more than 6.2 million
� focus on replacement tyres: > 100 tyre brands, > 25,000 models
� other products:
� motorcycle tyres, bicycle tyres
� truck tyres, industrial tyres
� complete wheels and rims
� motor oil, car parts, accessories
� 144 employees, mainly in the Hanover head office
� global network with more than 34,000 fitting partners, e.g.
Preliminary FY Figures
Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook 5
Key Financials FY 12
► Outperforming the market in the core business segment B2C
Q4 12 Q4 11 yoy % FY 12 FY 11 yoy % guidance*
Revenues EC € m 172,7 176,5 –2,1 441,4 455,6 –3,1 B2C up, B2B weak due to …
Revenues WS € m 3,2 5,9 –44,7 15,0 24,4 –38,6 … cyclical downturn.
Revenues € m 175,9 182,3 –3,5 456,4 480,0 –4,9 < FY11 adverse market environment
Gross Margin % 25,0 28,8 –3,9 p 25,7 27,4 –1,7 p price pressure
EBIT € m 15,0 24,8 –39,4 32,5 52,9 –38,6 higher fixed costs
EBIT Margin % 8,5 13,6 –5,1 p 7,1 11,0 –3,9 p 7 – 8 % lowered profitability
Inventories € m 74,1 106,5 –30,4 less working capital
Cash Flow € m 62,2 –9,6 strong cash flow generation
Liquidity € m 46,2 22,2 +108,0 favourable net cash position
* as of 17 October 2012, guidance for FY 12
Preliminary FY Figures
Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook 6
Agenda
Delticom at a Glance
Business Model
Profit & Loss
Balance Sheet
Outlook
Preliminary FY Figures
Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook
–4.9%+10.1%
+3.3%–1.3%
+2.4%
0
10
20
30
40
50
60
2000 01 02 03 04 05 06 07 08 09 10 11 12*
3.2% 4.0%
7.9%
3.7%
9.2%
6.4%
19.2%
15.8%15.0%
16.5%
31.0%30.8%29.6%
27.8%
5.8%4.8% 4.8%
0%
5%
10%
15%
20%
25%
30%
35%
99 2000 01 02 03 04 05 06 07 08 09 10 11
7879
57
73
57
86
60
78
50
95
61
88
57
7
Tyres and the Internet
Source: Datamonitor, Continental, Michelin, own estimates
PC & LT Replacement Tyres Europe: > € 12 billion
Europeans are increasingly online...
in million tyres
... and buy their tyres online.
Source: BRV (car replacement tyres) * estimates as of March 2012
in million tyres
Germany: sluggish 2011, outlook slightly better for 2012
think about buying online (ADAC, 18-39)
think about buying online (ADAC, all)
bought tyres on the Internet (ADAC, 18-39)
bought tyres on the Internet (BRV,GFK)
Source: ADAC (new methodology in 2011), BRV, GFK
WesternWesternWesternWestern
EuropeEuropeEuropeEurope
ES
15IT
24
FR
26
DE
59
UK
27
other
69
WorldWorldWorldWorld
Rest
21
Asia
239
NA
255
WE 220
EE+CE
60
SA
52
bought tyres on the Internet (ADAC all)
Desk Research GfK Austria, January 2012
adults online in
% of total
DEPRECATED
DEPRECATED
DEPRECATED
DEPRECATED
Preliminary FY Figures
Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook 8
Redesign of the Tyre Distribution Chain
Traditional Retail Delticom Redesign►
Preliminary FY Figures
Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook 9
Agenda
Delticom at a Glance
Business Model
Profit & Loss
Balance Sheet
Outlook
Preliminary FY Figures
Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook 10
Repeat customers constitute important growth potential►
New Customers
Repeat Customers
Ratio
...still the main growth driver
... long replacement cycle
and customers are happy
... repeat customers �
in thousands
Customers
22
5
148
164
143
199
140
165
133
180
130
152
114
32
5
165
197
164
328
183
230
181
333
189
248
188
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2010 2011 2012
–1 %
+13 %
Preliminary FY Figures
Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook 11
Quarterly Revenues
Fluctuations in growth rates: seasons, weather, base effects, strategy►
in € million
87,2
107,8
162,6
79,7
102,9
85,4
74,5
85,5
112,9
99,4
182,3
17
5,9
–12 %
+46 %
+17 %
+28 %
+48 %
+15 %
+10 %
+25 %
+12 %
+0 %
–5 %
–3 %
2010 2011 2012
0
25
50
75
100
125
150
175
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
0
25
50
75
100
125
150
175
Preliminary FY Figures
Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook 12
Quarterly Gross/EBIT Margins
Q4: more attractive prices to drive volume►
8,5
%
4,9 %
9,1 %
4,0 %
13,6 %
9,5 %
11,3 %
7,0 %
15,2 %
7,9 %
11,0 %
7,2 %
0%
30%
25%
20%
15%
10%
5%
25
,0 %
25,7 %
26,9 %
25,8 %28,8 %
25,8 %
27,7 %
25,9 %
30,6 %
27,4 %
28,0 %
25,7 %
2010 2011 2012
30%
25%
20%
15%
10%
5%
0%
–3,9–0,1
–0,7–0,1
–1,8
–1,6
–0,3
0,3
1,8
–0,41,6
–0,3
–5,1
–4,6
–2,2
–2,9
–1,6
1,7
0,3
–0,2
1,8
0,6
2,4
2,0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Gross Margin
EBIT Margin
Preliminary FY Figures
Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook 13
Quarterly EBIT
► Lower GPM, negative currency impact and insourced warehouse related costs
4,3
9,5
12,8
5,9
24,8
24,8
5,3
11,3
6,3
3,4
9,8
15
,0
0
25
20
15
10
5
–39 %
–23 %
–42 %
+0 %
+51 %
+13 %
+11 %
+69 %
+38 %
+49 %
+102 %–55 %
2010 2011 2012
25
20
15
10
5
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
in € million
Preliminary FY Figures
Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook
P&L Drivers (Q4)
� more attractive prices
� sales push �
� smaller warehouse closed in Q1
� partly insourced
14
Q4 12 Q4 11 % Q4 12 Q4 11 chng
Revenues 175,9 182,3 –3,5 100,0 100,0 0,0
Cost of sales 132,0 129,7 1,7 75,0 71,2 3,9
Gross Profit (ex ooi) 43,9 52,6 –16,4 25,0 28,8 –3,9
Direct costs 23,3 22,0 6,0 13,2 12,1 1,2
Direct costs (dep. on volume) 16,9 16,4 3,2 9,6 9,0 0,6
Transportation costs 14,5 13,2 9,5 8,2 7,3 1,0
Warehousing costs 1,1 1,8 –37,1 0,6 1,0 –0,3
Operations centre costs 1,3 1,3 –5,2 0,7 0,7 0,0
Direct costs (dep. on revenues) 6,4 5,6 14,2 3,6 3,1 0,6
Credit card fees 1,3 1,2 9,4 0,8 0,7 0,1
Bad debt losses 0,4 0,2 60,5 0,2 0,1 0,1
Marketing costs 4,6 4,1 12,9 2,6 2,3 0,4
Contribution margin 1 20,7 30,6 –32,5 11,7 16,8 –5,0
Indirect costs 5,2 5,6 –7,5 3,0 3,1 –0,1
Personnel expenses 2,4 2,0 20,0 1,4 1,1 0,3
Rents and overheads 1,6 1,8 –7,3 0,9 1,0 0,0
Financial and legal costs 0,2 1,2 –80,9 0,1 0,6 –0,5
IT and telecommunications 0,3 0,2 37,6 0,2 0,1 0,1
Other 0,6 0,5 33,0 0,4 0,3 0,1
Contribution margin 2 15,4 24,9 –38,1 8,8 13,7 –4,9
FX effects –0,3 –0,2 –0,2 –0,1 –0,1
Other operating profit (w/o FX gains) 0,6 0,6 0,3 0,3 0,0
EBITDA 15,7 25,4 –38,4 8,9 13,9 –5,0
Depreciation / Amortization 0,7 0,7 1,7 0,4 0,4 0,0
EBIT 15,0 24,8 –39,4 8,5 13,6 –5,1
Net financial result 0,0 0,0 –563,4
EBT 15,0 24,8 –39,3 8,5 13,6 –5,0
Income taxes 4,6 7,7 –39,9
Consolidated net income 10,4 17,0 –39,0 5,9 9,3 –3,4
EUR yoy % of Revenues
� new warehouse
Preliminary FY Figures
Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook
P&L Drivers (FY)
� according to plan
15
FY 12 FY 11 % FY 12 FY 11 chng
Revenues 456,4 480,0 –4,9 100,0 100,0 0,0
Cost of sales 338,9 348,4 –2,7 74,3 72,6 1,7
Gross Profit (ex ooi) 117,4 131,6 –10,8 25,7 27,4 –1,7
Direct costs 63,1 62,0 1,8 13,8 12,9 0,9
Direct costs (dep. on volume) 46,9 47,5 –1,2 10,3 9,9 0,4
Transportation costs 38,2 37,4 2,0 8,4 7,8 0,6
Warehousing costs 3,6 5,1 –30,0 0,8 1,1 –0,3
Operations centre costs 5,1 4,9 4,0 1,1 1,0 0,1
Direct costs (dep. on revenues) 16,2 14,5 11,6 3,6 3,0 0,5
Credit card fees 3,6 3,6 –0,9 0,8 0,7 0,0
Bad debt losses 1,3 1,0 32,9 0,3 0,2 0,1
Marketing costs 11,3 10,0 13,9 2,5 2,1 0,4
Contribution margin 1 54,3 69,6 –21,9 11,9 14,5 –2,6
Indirect costs 19,1 17,1 11,5 4,2 3,6 0,6
Personnel expenses 8,8 7,2 21,4 1,9 1,5 0,4
Rents and overheads 6,2 4,9 25,8 1,3 1,0 0,3
Financial and legal costs 1,0 2,7 –64,2 0,2 0,6 –0,4
IT and telecommunications 1,2 0,8 55,2 0,3 0,2 0,1
Other 2,0 1,5 32,8 0,4 0,3 0,1
Contribution margin 2 35,3 52,5 –32,8 7,7 10,9 –3,2
FX effects –2,2 0,5 –0,5 0,1 –0,6
Other operating profit (w/o FX gains) 2,1 2,0 0,5 0,4 0,0
EBITDA 35,2 55,0 –36,1 7,7 11,5 –3,8
Depreciation / Amortization 2,7 2,1 28,0 0,6 0,4 0,2
EBIT 32,5 52,9 –38,6 7,1 11,0 –3,9
Net financial result –0,1 0,0 –34474,6
EBT 32,4 52,9 –38,9 7,1 11,0 –3,9
Income taxes 10,3 16,9 –39,2
Consolidated net income 22,1 36,0 –38,7 4,8 7,5 –2,7
EUR yoy % of Revenues
� fixed costs
� one-off effect 2011 washed out
� weak demand in 2012
Preliminary FY Figures
Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook 16
Agenda
Delticom at a Glance
Business Model
Profit & Loss
Balance Sheet
Outlook
Preliminary FY Figures
Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook
2,1 4,3 6,2
–24,0
22,2
20,4
–1,9 1,9
–3,4
4,3
–22,5
–19,7
17,7
5,8
–0,9
–5,8
15,4
–3,4
26,7
–24,1
35,5
–7,4
16,2
–37,4
16,6
12,3
4,8
–24,3
31,4
19,7
19,6
–16,4
28,2
0,4
–8,6
–52,3
3,2
–2,2
0,5
–5,5
6,2
–2,7
5,1
–5,7
4,0
–3,4
2,3
–4,7
2010 2011 2012
Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1
quarterly delta in € million
Accounts receivable
Inventories
Accounts payable
Working Capital
... follow the seasonal peaks.
... seasonal stock reduction
... decreasing AP
... strong cash flow
Working Capital Management
17
Preliminary FY Figures
Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook 18
Liquidity Bridge
Net cash = € 43.9 million ►
in € million
22,2
32,52,7 –0,9
32,43,1
9,3 –0,2 –16,7
–0,9 –0,2 0,0 –34,9
–2,1 –0,1 46,2
0
20
40
60
80
100
120
Liquidity
31.12.11
EBIT
Depreciation
other
Provisions
Inventories
Receivables
Payables
Interest
Taxes
Propery, Plant
and Equipment
Intangible
Assets
Securities etc.
Dividend
Payments
Other
financing
FX Translation
Liquidity
31.12.12
0
20
40
60
80
100
120
Preliminary FY Figures
Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook 19
Agenda
Delticom at a Glance
Business Model
Profit & Loss
Balance Sheet
Outlook
Preliminary FY Figures
Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook 20
Outlook
� Replacement tyre market 2012
� Germany: sell-out (BRV): summer – 12,8 %, winter – 7.3 %
� Europe: sell-in (ETRMA): – 13,0 %
� Sentiment 2013
� depressed consumer confidence
� tyres: low visibility
Neue Reifen-Zeitung (Online Survey),
December 2012
““““74% of the respondants74% of the respondants74% of the respondants74% of the respondants
expect the negative terndexpect the negative terndexpect the negative terndexpect the negative ternd
to continue in 2013to continue in 2013to continue in 2013to continue in 2013””””
Handelsblatt, 10 January 2013
H.J. Drechsler (BRV, Germany): H.J. Drechsler (BRV, Germany): H.J. Drechsler (BRV, Germany): H.J. Drechsler (BRV, Germany):
““““We find it difficult to give an We find it difficult to give an We find it difficult to give an We find it difficult to give an
outlook for 2013...outlook for 2013...outlook for 2013...outlook for 2013...““““
BRV, 18 December 2012
““““German tyre retail dropped by German tyre retail dropped by German tyre retail dropped by German tyre retail dropped by –––– 10,1%10,1%10,1%10,1%””””ETRMA, 15 January 2013
““““...this is the lowest...this is the lowest...this is the lowest...this is the lowest
market volume sincemarket volume sincemarket volume sincemarket volume since
more than 7 years.more than 7 years.more than 7 years.more than 7 years.””””
Preliminary FY Figures
Hanover, 23 January 2013 21
Summary
#1 European online tyre retailer
Excellent growth opportunities
Strong cash flow, strong balance sheet
Resilient and profitable business model
Redesign of the tyre distribution chain
1111
2222
3333
4444
5555
Investor Relations:
Melanie Gereke
Delticom AG
Brühlstr. 11
30169 Hanover, Germany
eMail: [email protected]
phone: +49-511-93634-8903