Auto1 Group Se · XETR:AG1

Auto1 — Q3 2023 Earnings Presentation

43 slides from Auto1's earnings presentation, Nov 8, 2023

  1. Slide 1: Q3 2023 Trading Update starts soon

    Q3 2023 Trading Update starts soon…

  2. Slide 2: Trading Update Q3 2023

    Trading Update Q3 2023 08 NOVEMBER 2023

  3. Slide 3: Disclaimer

    Disclaimer IMPORTANT NOTICE For the purposes of this notice, “Presentation” means this document, its contents or any part of it. This Presentation does not, and is not intended to, constitute or form part of, and should not be construed as, an offer to sell, or a solicitation of an offer to purchase,

  4. Slide 4: Europe's Used Car Market On One Platform

    Europe’s Used Car Market On One Platform 4

  5. Slide 5: We Achieved Our Key Target EBITDA Break-Even Ahead of Plan

    Highlights We Achieved Our Key Target EBITDA Break-Even Ahead of Plan What We Delivered Adjusted EBITDA of EUR 0.5 million Retail GPU of EUR 1,912, well above revised Q4 target of EUR 1,800 Retail In-house Production share at 88% in October Merchant GPU of EUR 838, well above Target 5

  6. Slide 6: Our Highest Quarterly Gross Profit Drove EBITDA Profitability

    Highlights Our Highest Quarterly Gross Profit Drove EBITDA Profitability Group Units Sold Gross Profit Adjusted EBITDA K Units EUR Million EUR Million 134 0.5 132 170 130 0 164 128 160 157 123 150 120 -10 -15 150 140 142 141 114 110 -20 130 -25 120 100 -30 -35 -36 110 100 90 -40 90 Q3 Q4 Q1 Q2 Q3 Q3 Q4

  7. Slide 7: AUTO1 Is Europe's Used Car Powerhouse

    Highlights AUTO1 Is Europe’s Used Car Powerhouse #1 Wholesale in Europe Top 10 Retail >EUR 249m (+70% YoY) in Europe German and Austrian Portfolio (Sep 2023) FINANCING 7

  8. Slide 8: Used Car Market Conditions Remain Stable Overall

    Highlights Used Car Market Conditions Remain Stable Overall October 2023 AUTO1 Group Price Index 175 171.6 170.8 168.3 165 163.2 155 156.7 151.3 152.2 150.9 149.3 149.1 148.7 148.3 148.2 148.0 147.8 145 147.4 135 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 2022 2022 2022 2022 202

  9. Slide 9: Merchant Update

    Merchant Update Positioned For Unit Growth

  10. Slide 10: Merchant GPU Has Reached a Record Level With Stable Units

    Merchant Update Merchant GPU Has Reached a Record Level With Stable Units Merchant Remarketing Merchant GPU Merchant Units Sold C2B EUR Gross Profit K EUR Million +18% YoY 146 127 126 21 838 105 104 16 103 15 810 125 111 111 713 Q3 2022 Q2 2023 Q3 2023 Q3 2022 Q2 2023 Q3 2023 Q3 2022 Q2 2023 Q3 2023

  11. Slide 11: We Own the Largest Trading Network in Europe and Plan to Expand It

    We Own the Largest Trading Network in Europe and Plan to Expand It Substantially ● Installation of additional Micro Current Drop-off Network Branches in convenient locations Newly Added Drop-Off Locations for the customer Existing Drop-Off Locations 2023 Sample Merchant Locations ● QoQ Increase of 16 B

  12. Slide 12: WKDA European Brand Awareness

    WKDA European Brand Awareness 52%* * WKDA EU weighted average among people between 18 and 64 (Q3 2023). Source: YouGov Brand Ambassador Ralf Schumacher @ WKDA Purchase Branch

  13. Slide 13: Our Data and Technology Enable the Strongest Platform Effects

    Merchant Update Our Data and Technology Enable the Strongest Platform Effects in the Industry More Larger Supply Selection MORE MORE SELLERS BUYERS Matchmaking Transaction AI Pricing Technology Data Higher Economies Purchase Prices of Scale 13

  14. Slide 14: Retail Update

    Retail Update Re-Focus on Growth

  15. Slide 15: We Continue to Beat Our GPU Targets for Autohero

    Retail Update We Continue to Beat Our GPU Targets for Autohero Retail (Autohero) GPU 3,000 EUR Long-term GPU target +€232 1,000 QoQ Finance & Additional Services 2,000 1,912 Trading 1,680* 1,349* 1,106 1,254 1,035 IPO 718 255 363 365 418 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 202

  16. Slide 16: Very Strong GPU Development Led to a 52% YoY Increase in Gross Profit

    Retail Update Very Strong GPU Development Led to a 52% YoY Increase in Gross Profit Retail (Autohero) Retail Units Sold Gross Profit K EUR Million +52% YoY 17.2 28.9 14.4 14.8 24.7 19.0 Q3 2022 Q2 2023 Q3 2023 Q3 2022 Q2 2023 Q3 2023 16

  17. Slide 17: We Completed the Initial Phase of Our Refurbishment Roll Out

    Retail Update We Completed the Initial Phase of Our Refurbishment Roll Out Arlandastad, SE IN PRODUCTION Maximum Capacity Berlin/Brandenburg, DE IN PRODUCTION 4,500 Maximum Capacity 35,000 Oosterhout, NL IN PRODUCTION Maximum Capacity Warsaw, PL IN PRODUCTION 4,100 Maximum Capacity 18,000 Ath, BE IN

  18. Slide 18: We Have Reached Our Internal Production Target for Q4 2023

    Retail Update We Have Reached Our Internal Production Target for Q4 2023 Production Cost Development¹ External Production Share of Inhouse All Internal Production² EUR / Unit Berlin/Brandenburg, DE Used Car Production % 1,600 100 88% 1,400 76% 68% 75 62% 1,200 54% 1,000 50 36% 800 20% 25 12% 600 6%

  19. Slide 19: Marketing Cost Achieved Our Year End Target of EUR 500 per Car

    Retail Update Marketing Cost Achieved Our Year End Target of EUR 500 per Car Already in Q3 Retail Marketing Cost per Car Delivered KEUR 1.1 0.9 0.7 0.7 0.5 0.5 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023e 19

  20. Slide 20: Customers Love our Product: Strong Customer Satisfaction

    Retail Update Customers Love our Product: Strong Customer Satisfaction While Driving Unit Economics Autohero NPS Autohero Trustpilot Score All markets All markets* 71 71 4.6 Excellent Google Reviews All markets* Sep 2022 Sep 2023 4.3 *Weighted Average based on avg. Trustpilot score and Google review

  21. Slide 21: Q3 Summary & Outlook

    Q3 Summary & Outlook [AUTOfJ|GROUP 21

  22. Slide 22: Our Q3 Results Confirm Our Profitability Strategy

    Q3 Summary & Outlook Our Q3 Results Confirm Our Profitability Strategy as Well as Our Ambition for High and Profitable Growth 2023 Plan Q3 2023 Results 2024 Mid-term Long-term Grow Retail GPU and Retail GPU of EUR 1,912, Grow Units Scale Autohero to Transact a Double Reduce Unit Cost per Strong Unit Co

  23. Slide 23: Q3 2023 Financial Figures And 2023 Full Year Guidance Update

    Q3 2023 Financial Figures And 2023 Full Year Guidance Update 23

  24. Slide 24: Financial Overview

    Q3 2023 Financial Figures Financial Overview FY 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 YoY Q3 QoQ Units Sold 649,709 163,561 150,391 157,106 141,682 140,630 (14.0%) (0.7%) Revenue (€m) 6,534.1 1,711.7 1,447.3 1,505.9 1,340.5 1,292.6 (24.5%) (3.6%) ASP (€) 10,057 10,465 9,624 9,585 9,462 9,1

  25. Slide 25: We Achieved a Positive Adjusted EBITDA Through Gross Profit Growth and Opex Improvements

    Q3 2023 Financial Figures We Achieved a Positive Adjusted EBITDA Through Both Gross Profit Growth and Ongoing Opex Improvements EUR Million +2.4 +0.5 +1.4 +5.0 +3.5 +6.6 -3.6 -14.8 Adj. EBITDA Gross Profit Marketing Internal Employee Other Other Adj. EBITDA Q2 2023 Costs Logistics Cost Opex Income Q3

  26. Slide 26: We Maintain High Levels of Liquidity Through Disciplined Balance Sheet Management

    Q3 2023 Financial Figures We Maintain High Levels of Liquidity Through Disciplined Balance Sheet Management Total Cash and Liquidity Inventory €435m financed Consumer Loans €206m financed EUR Million EUR Million through our EUR Million through our Inventory ABS Consumer Loan Facility ABS Facility 999

  27. Slide 27: Updated FY 2023 Guidance

    Guidance Updated FY 2023 Guidance Unit Guidance Financial Guidance Units Group 625k +/-5% Unchanged vs.Q2 2023 Gross Profit EUR 500-550m Unchanged vs. Q2 2023 Units Merchant 560k +/-5% Unchanged vs. Q2 2023 Adj. EBITDA EUR (39)-(49)m Q2 2023 Guidance: EUR (50)-(70)m Units Autohero 65k +/-5% Unchanged

  28. Slide 28: Q&A

    Q&A [AUTOfJ|GROUP 28

  29. Slide 29: Thanks

    Thanks 29

  30. Slide 30: Appendix

    Appendix [AUTOfJ|GROUP 30

  31. Slide 31: Focus on Profitability Drives GPU to Record Level

    Q1 2 Q2 014 2 20 40 60 80 100 120 140 160 Q3 014 2 Q4 014 2 Q1 014 2 K Units Q2 015 Appendix 2 Q3 015 2 Q4 015 2 Q1 015 2 Q2 016 20 Q3 16 2 Q4 016 2 Q1 016 Group Units Sold 2 Q2 017 2 Q3 017 20 Q4 17 2 Q1 017 2 Q2 018 2 Q3 018 20 Q4 18 2 Q1 018 2 Q2 019 2 Q3 019 2 Q4 019 2 Q1 019 2 Q2 020 2 Q3 020 2

  32. Slide 32: Our Operating Platform for the European Used Car Market

    Appendix Our Operating Platform for the European Used Car Market Products for the Used Car Market Trading Handling Customer Interfaces AI Pricing Local Branches Brands Consumers Selling Cars Pricing Data Pan-European Pricing widget Logistics Consumers Buying Cars Consumer Financing = Inventory Turns

  33. Slide 33: Segment: Merchant

    Appendix Segment: Merchant FY 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 YoY Q3 QoQ Units Sold 585,545 146,372 133,744 139,027 127,285 125,785 (14.1%) (1.2%) Thereof C2B 497,254 124,953 113,766 120,307 110,703 110,983 (11.2%) 0.3% Thereof Remarketing 88,291 21,419 19,978 18,720 16,582 14,802 (3

  34. Slide 34: Segment: Retail (Autohero)

    Appendix Segment: Retail (Autohero) FY 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 YoY Q3 QoQ Units Sold 64,164 17,189 16,647 18,079 14,397 14,845 (13.6%) 3.1% Revenue (€m) 1,056.5 277.2 265.0 284.4 226.0 234.5 (15.4%) 3.7% ASP (€) 16,466 16,126 15,920 15,732 15,701 15,794 (2.1%) 0.6% Gross Profi

  35. Slide 35: Investor Relations Contact

    Contact Investor Relations Contact Address Bergmannstr. 72 10961 Berlin Tel. +49 (0)30 - 2016 38 213 Philip Reicherstorfer Alexander Enge E-Mail Group Treasurer Senior Manager [email protected] Investor Relations 35

  36. Slide 36: Pictures and Charts

    Pictures and Charts [AUTOfJ|GROUP 36

  37. Slide 37: WKDA Nano Branch @ Brandenburg

    WKDA Nano Branch @ Brandenburg

  38. Slide 38: Remarketing: Mobile Evaluation

    Remarketing: Mobile Evaluation

  39. Slide 39: Used Car Production Center, Ketzin

    Used Car Production Center, Ketzin

  40. Slide 40: Used Car Production Center, Toledo (ES)

    Used Car Production Center, Toledo (ES)

  41. Slide 41: Real Madrid Basketball Sponsorship

    Real Madrid Basketball Sponsorship

  42. Slide 42: DTM Sponsorship

    DTM Sponsorship

  43. Slide 43: Employees @ AUTO1 Headquarters Berlin

    Employees @ AUTO1 Headquarters Berlin

AUTO1 Group — Q3 2023 Earnings Presentation on 6ix