Kamux Oyj · OMXHEX:KAMUX
Kamux Oyj — Investor Day (March 2021)
52 slides from Kamux Oyj's investor day presentation, Mar 3, 2021
Slide 1: Capital Markets Day
Capital Markets Day 3 March 2021 1 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 2: Agenda and presenters
Agenda and presenters 1. Kamux’s strategy – Ambitious leap towards nearly doubling our revenue by 2023 Juha Kalliokoski, CEO 2. How digitalisation can help us in fulfilling our customer promise? Mikki Inkeroinen, CDO 3. Creating shareholder value through growth Marko Lehtonen, CFO 2 3 MARCH 2021 CAP
Slide 3: Kamux's strategy – ambitious leap towards nearly doubling our revenue by 2023
Kamux’s strategy – ambitious leap towards nearly doubling our revenue by 2023 Juha Kalliokoski, CEO 3 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 4: Our strong growth ambition defines this strategy period
Our strong growth ambition defines this strategy period
Slide 5: Kamux Vision: #1 used car retailer in Europe
Kamux Vision #1 used car retailer in Europe 5 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 6: Used car market is stable, large and fragmented
Used car market is stable, large and fragmented 6 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 7: The market has traditionally been very stable
The market has traditionally been very stable Used passenger car sales volume in Finland New registrations of passenger cars in Finland 1990-2020 160 000 CAGR +0,8% 140 000 631 071 634 062 625 064 632 980 613 563 120 000 100 000 80 000 60 000 40 000 20 000 Recession 0 2016 2017 2018 2019 2020 1990 1
Slide 8: Target market of EUR 100 billion with some 26 million cars
Target market of EUR 100 billion with some 26 million cars in the most attractive segments Total number of registered The most attractive, <8 years old cars vehicles per age group >8 years old cars Finland Sweden Germany 2.7 4.8 47.7 million million million Source: Traficom; ACEA; company’s analysis
Slide 9: The share of TOP 5 resellers of used car sales volume is small
The share of TOP 5 resellers of the used car sales volume is small in Kamux’s target markets Finland Sweden Germany TOP 5 resellers Rest of the market <10% ~2% <20% Source: The Finnish Information Centre of Automobile Sector; Statistics Denmark; MRF; Vroom; OFV; Kraftfahrtbundesamt; SMMT; BOVA
Slide 10: But markets are changing
But markets are changing
Slide 11: The corona pandemic had a different impact on used car markets
The corona pandemic had a different impact on used car markets in different countries Finland Sweden Germany Finland Sweden Germany Used car Used car Used car Used car Used car Used car market market market market market market +3% +8% -3% 11 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 12: 5 key trends affecting used cars retail
5 key trends affecting used cars retail Ongoing trends Emerging trends 1. 2. 3. 4. 5. Changing market Rise of online New ownership Shared mobility Electric vehicles dynamics models services 12 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 13: New ownership models and shared mobility services grow
New ownership models and shared mobility services grow, but it’s not always a walk in the park “I’ve earned hundreds of euros in a month,” says Petteri Veijonen who rents his own car – Popularity of shared cars is growing enormously Yle, November 24, 2020 13 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 14: Number of electric cars has grown fast – but share is still minuscule
Number of electric cars has grown fast – but their share of total market is still minuscule # of electric passenger vehicles in traffic use Share of electric passenger vehicles out of all in Finland passenger vehicles in Finland in 2020 50000 0% 2% 45000 40000 35000 30000 25000 20000 15000 10000 500
Slide 15: Implication of these trends to Kamux's business concept
Implication of these trends to Kamux’s business concept Ongoing trends Emerging trends Changing market Rise of online New ownership Shared mobility Electric vehicles dynamics models services • Increasing cross- • Focusing on bigger • Adding potential new • Following the • Matching assortment border
Slide 16: We are ready to seize the great market opportunity
We are ready to seize the great market opportunity Accelerate growth + Elevate scalability
Slide 17: Our strategic focus areas
Our strategic focus areas Omnichannel customer Efficient processes and Utilizing data and leading Developing capabilities and experience and services scalability with knowledge continuous learning 17 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 18: 1,000 new employees by 2023
= by 1,000 new employees by 2023
Slide 19: Promoting mobility with affordable and trustworthy sale of used cars
Promoting mobility with affordable and trustworthy sale of used cars Cornerstones of Cornerstones of customer proposal operational model Professional sourcing Attractive price Efficient inventory management Trust Low fixed cost model Seamless omnichannel customer experience Profitable integrated ser
Slide 20: Ambitious leap towards nearly doubling our revenue by 2023
Ambitious leap towards nearly doubling our revenue by 2023
Slide 21: Q&A
Q&A
Slide 22: How digitalisation can help us in fulfilling our customer promise?
How digitalisation can help us in fulfilling our customer promise? Mikki Inkeroinen, CDO 22 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 23: Online channel has long been present in the car buying process
Unlike many other retail, online channel has long been present in the car buying process • 95% of customers spend Online shopping option >4h online to refine car choice is a must today by themselves • Intention may well be bigger • 80% of purchases include than actual readiness to act omnichannel jo
Slide 24: Kamux's digital footprint
Kamux’s digital footprint Over 900,000 monthly web site visits ~6 min average visit duration 7.7 average pages per visit 24 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 25: Digital sales process, click&collect and home deliveries in focus
Digital sales process, click&collect and home deliveries in focus Click&collect* in 2020: 36% in Finland 31% in the group 65–70% of customer journeys start online and continue at the showroom* ~1% in-store only buyers** *) Cross-selling in 2020 **) Company’s estimate 25 3 MARCH 2021 CAPITAL MARKETS
Slide 26: The two angles of digitalization
The two angles of digitalization Creating the best online Improving and streamlining customer journey core processes 26 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 27: Customer's journey begins online and is enhanced by services
Customer’s journey begins online and is enhanced by services and supported by a professional sales person Research Consideration Advice & Test Drive Add-on services Purchase & Delivery • Usability & • Transparent prices • Access to experts • Financing • Buying process intuitiveness • Search criteria
Slide 28: Improving efficiency, quality and transparency with core process improvements
Improving efficiency, quality and transparency with core process improvements 28 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 29: Kamux constantly develops its core processes
For an enhanced digital customer journey, Kamux constantly develops its core processes Pre-Sale Sale Post-Sale Discovery Info Customize / Advice and Trade-in Financing / Signing/ After Sale Repair & Future collection Build test drive Lease delivery maint. purchases • Demand forecasting • Logistics d
Slide 30: Towards bigger stores
Towards bigger stores 30 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 31: Data is the new motor oil
Data is the new motor oil 31 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 32: Seizing the opportunities of digitalization inhouse improves processes
Seizing the opportunities of digitalization inhouse improves processes and benefits the customer Research Consideration Advice & Test Drive Add-on services Purchase & Delivery More detailed More accurate pricing Seller always available, Eliminating manual Improved inventory description of a car, mod
Slide 33: All this is done so that we can fulfill our customer promise
All this is done so that we can fulfill our customer promise Affordability & Trustworthiness
Slide 34: We want to combine affordability with trustworthiness
FUTURE We want to combine affordability with Trust trustworthiness for TODAY our customers Price 34 34 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 35: Successful customer encounters
Successful customer encounters Over 300,000 sold cars 4.3/5 customer satisfaction Digitalization helps us to carry out our business in a systematic and high-quality manner 35 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 36: Competitive advantages
Competitive advantages Outstanding Elevated Efficient Data and High- omnichannel scalability processes analytics performing customer organization experience 36 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 37: Q&A
Q&A
Slide 38: Creating shareholder value through growth
Creating shareholder value through growth Marko Lehtonen, CFO 38 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 39: Proven track record of successful, mainly organic growth
Proven track record of successful, mainly organic growth Revenue (EURm) Cars sold (1,000) Showrooms at year-end 724 60,7 CAGR 78 2014-2020 55,4 71 +26% 659 46,6 61 528 41,0 53 36,3 47 455 405 41 28,5 35 310 20,3 24 215 14,2 19 10,5 16 152 13 112 6,9 9 53 74 3,6 5,0 7 27 38 1,8 2,6 4 19 1 2007 2009 2
Slide 40: Steady earnings growth
Steady earnings growth ROE (%) Earnings per share (EUR) Dividend per share* (EUR) 50 0,8 0,3 45 0,24 40 0,23 0,6 0,58 35 0,2 0,48 30 0,16 25 0,4 0,37 0,12 20 0,29 0,30 0,1 15 0,2 0,06 10 5 1 0 0 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020* *) Board’s proposal to the
Slide 41: Kamux in 2020 — very profitable growth in exceptional market situation
Kamux in 2020 — very profitable growth in exceptional market situation Revenue (EUR million) Adjusted operating profit (EUR million) Revenue increased by 10.0% in 2020 Adjusted operating profit grew very strongly in 2020 800 35 7 10.0% 700 30 6 24.8% 20.8% 600 25 5 16.0% 16.1% 500 12.4% 20 4,4% 17.5
Slide 42: Strong financial position creates a good basis for growth
Strong financial position creates a good basis for growth Cash flow from operating activities Equity ratio (%) (EUR million) 40 70 35 60 30 50 25 40 20 30 15 20 10 5 10 0 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 -5 42 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 43: Integrated services revenue continued to grow in 2020
Integrated services revenue continued to grow in 2020 Integrated Services Revenue MEUR % 40 8 35 7 30 6 5,0% 5,1% 5,0% 5,1% 25 4,8% 5 20 4 15 3 10 2 5 1 0 0 2016 2017 2018 2019 2020 Kamux Plus Finance fees and insurance commissions Integrated services % of Revenue
Slide 44: Key figures
Key figures (MEUR) 10-12/2020 10-12/2019 Change, % 1-12/2020 1-12/2019 Change, % Revenue 198.8 175.4 13.3% 724.1 658.5 10.0% Gross profit 23.8 20.0 18.7% 91.5 79.6 15.0% as percentage of revenue, % 12.0% 11.4% 12.6% 12.1% Operating profit (EBIT) 7.4 5.4 37.5% 31.2 25.3 23.1% as percentage of revenue
Slide 45: Proven track record of profitable international growth
Proven track record of profitable international growth SWEDEN GERMANY 40.7% Revenue (EUR million) Revenue (EUR million) 24.5% 70 25 60 20 50 40 15 30 10 20 10 5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 2019 2020 2017 2018 2019 2020 Operating profit (EUR million) Operating profit (EUR million) 1,5 171.1
Slide 46: Targeted investments will continue
Targeted investments will continue Knowledge Omnichannel Logistics, Recruitment Strategic management: customer processing and training store data & analytics experience cars, locations inspections 46 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 47: Financial targets 2021–2023
Financial targets 2021–2023 • Revenue growth of over 20% annually Indicator Target Actual 2020 (from 26 Feb, • Annually increasing adjusted EBIT and 2021) adjusted EBIT margin over 3.5% Revenue growth Over 20% 10.0% annually • Return on equity (ROE) over 25% • Target to distribute dividends of at le
Slide 48: Outlook for 2021
Outlook for 2021 In 2021, Kamux expects its revenue to reach EUR 800–850 million and adjusted operating profit to increase from the previous year
Slide 49: Steps to profit increase
Steps to profit increase PROFIT INCREASE TO FOLLOW Seamless omnichannel service and bigger stores Industrialized processes Selected additions to service portfolio Analytics driven purchasing, sales and pricing Accelerated growth 49 3 MARCH 2021 CAPITAL MARKETS DAY
Slide 50: Seizing the great market opportunity
Seizing the great market opportunity To achieve this, we will focus on: The used car market is • Omnichannel customer stable, large and Next step in our story is experience and services fragmented and offers to accelerate growth • Efficient processes and great opportunities for and elevate scalabili
Slide 51: Q&A
Q&A
Slide 52: Thank you!
Thank you! KAMUX 6-3