Xpel, Inc. · NASDAQ:XPEL
Xpel — Investor Presentation (May 2020)
23 slides from Xpel's investor presentation, May 2020
Slide 1: Investor Presentation May 2020
INVESTOR PRESENTATION MAY 2020
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT This Presentation contains certain forward-looking statements in respect of various matters including upcoming events that involve known and unknown risks and uncertainties that are beyond the control of Management. Those risks and uncertainties include, among other things,
Slide 3: The Leader in Protective Films
THE LEADER IN PROTECTIVE FILMS AUTOMOTIVE PAINT PROTECTION FILMS AUTOMOTIVE WINDOW TINT HOME & OFFICE WINDOW FILMS 3
Slide 4: A Brand Built Over 20 Years
A BRAND BUILT OVER 20 YEARS HEADQUARTERED IN SAN ANTONIO, TX FOUNDED IN 1997 NASDAQ: XPEL 300 FULL TIME EMPLOYEES 2400+ CUSTOMERS GLOBAL OPERATIONS 4
Slide 5: History That Continues to Set the Standards
HISTORY THAT CONTINUES TO SET THE STANDARDS OPEN PA R A S O L ASIA OFFICE C A N A DA ACQUISITION ULTIMATE ULTIMATE PLUS PA I N T P R O T E C T I O N F I L M A U T O M O T I V E W I N D OW F I L M PA I N T P R O T E C T I O N F I L M CENTRE 1998-2007 2010 2011 2014 2015 2016 2017 2018 2019 2020 (SYMB
Slide 6: Key Investment Highlights
KEY INVESTMENT FIL M TECHNOLOGY HIGHLIGHTS DA E C P I RV Strong Recognition as Premium Brand SO SE FT WA R ME RE CUSTO Significant Domestic and International Market Opportunity MARKE PRODUCTS Robust Growth, Profitability and URE TIN Strong Balance Sheet CT G RU & LE ST A A High Insider Ownership Cre
Slide 7: Ultimate Plus Complete Protection
COMPLETE PROTECTION ULTIMATE PLUS PA I N T P R OT E C T I O N F I L M COVERAGE BUMPER HOOD HEADLIGHTS & FOG LIGHTS FENDERS MIRRORS A-PILLARS & ROOFLINE DOOR SILL DOOR EDGES & DOOR CUPS ROCKER PANELS & REAR LUGGAGE STRIP WHEEL IMPACT AREA 7
Slide 8: Automotive Products
ULTIMATE PLUS PA I N T P R OT E C T I O N F I L M Invisible, Cut-To-Fit Protection Film Protects from Rock Chips, Bug Acids, and Road Debris Damage Professionally Installed New-Car Product A U T O M O T I V E W I N D OW F I L M AUTOMOTIVE Film for Heat Rejection, Security and Appearance PRODUCTS 4 C
Slide 9: End Customer PPF Economics
END CUSTOMER PPF ECONOMICS COVERAGE - FULL CAR COVERAGE - FULL FRONT COVERAGE - PARTIAL HOOD Covers entire car. Covers entire painted front bumper, hood, fenders, Covers 6” - 12” of leading edge of hood. headlights and backs of the painted mirrors. $4000 - $6000 $100 - 200 $1800 - $2500 FACTORS INFL
Slide 10: The XPEL Difference
Cloud-Based Application Updated Daily with 80,000 Vehicle Applications Pre-Cut Film Prevents Cutting on Car DESIGN ACCESS P R O G R A M Reduces Installation Time, Material Waste CERTIFIED TRAINING THE XPEL Essential to New Customer Success and Industry Growth DIFFERENCE Corporate Training Facilities
Slide 11: Non-Automotive Products
NON-AUTOMOTIVE PRODUCTS SURFACE PROTECTION RX H O M E & O F F I C E W I N D OW F I L M Sell to a Variety of Niche Solar Control and Security for Commercial Non-Automotive Uses and Residential Applications Electronics, Stainless Steel, Solid Distinct Customer Set, But Similar Profile PROTECTION FILM
Slide 12: XPEL Revenue Ecosystem
XPEL REVENUE ECOSYSTEM PRODUCT REVENUE 94 % INSTALLATION SERVICE REVENUE 6% $ 150 - $ 375 / CAR DIRECT - 65 % INDIRECT - 35 % SERVICE LOCATIONS US UK CANADA INTERNATIONAL DISTRIBUTORS 6 1 2 INDEPENDENT NEW CAR INSTALLERS DEALERSHIP $ 800 - $ 2500 $ 600 - $ 1500 / CAR / CAR END END NEW CAR CONSUMER C
Slide 13: Strategic Initiatives
STRATEGIC INITIATIVES CONTINUE GLOBAL EXPANSION Operations in 9 Countries Build Out Sales Team In Under-penetrated Geographies DRIVE GLOBAL BRAND AWARENESS High Visibility At Premium Events Advertising Placement In Media Consumed By Car Enthusiasts EXPAND NON-AUTOMOTIVE PRODUCT PORTFOLIO Find Opport
Slide 14: Revenue Trend
REVENUE TREND IN MILLIONS $129.9M $130,000 $120,000 18.2% $109.9M $110,000 $100,000 AGR % C .0 $90,000 33 $80,000 63.4% $70,000 $67.3M $60,000 29.9% $51.8M $50,000 24.8% $41.5M $40,000 $30,000 $28.4M Q1 14.8% $20,000 GROWTH Q vs Q 2015 2016 2017 2018 2019 Q1 2020 YTD IFRS U.S. GAAP 14
Slide 15: 2019 Sales Mix by Region
2019 SALE MIX BY REGION CONTINENTAL EUROPE 5.7% UK CANADA 2.9% 13.8% UNITED STATES 46.5% CHINA 23.5% ASIA PACIFIC 3.4% LATIN MIDDLE EAST / AMERICA AFRICA 1.6% 2.4% OTHER 0.2% 15
Slide 16: Gross Margin Trend
GROSS MARGIN TREND IN MILLIONS $45,000 $43.5M $40,000 50.0% $33.4M $35,000 40.0% $30,000 36.3% 33.5% 30.4% 29.7% $25,000 30.0% GROSS 27.1% GROSS MARGIN 24.8% MARGIN $ % $20,000 $16.7M 20.0% $15,000 $14.0M $12.3M $10.3M 10.0% $10,000 $5,000 0.0% 2015 2016 2017 2018 2019 Q1 2020 YTD IFRS U.S. GAAP 16
Slide 17: EBITDA Profile
EBITDA PROFILE IN MILLIONS $20,000 100.0% $18.7M 95.0% 90.0% 85.0% 80.0% $15,000 75.0% 70.0% $13.0M 65.0% 60.0% EBITDA EBITDA $ 55.0% % $10,000 50.0% 45.0% 40.0% 35.0% 30.0% $5,000 $4.4M 25.0% $3.6M $3.6M 20.0% $2.6M 15.0% 14.4% 10.0% 11.9% 9.1% $1,000 8.6% 8.5% 5.0% 5.4% 0.0% 2015 2016 2017 2018 20
Slide 18: Net Income Trend
NET INCOME TREND IN MILLIONS $15,000 $14.0M 50.0% 45.0% 40.0% $10,000 35.0% $8.7M NET 30.0% NET INCOME INCOME $ 25.0% % $5,000 20.0% 15.0% $2.2M $1.6M 10.0% 10.8% $1.5M $1.0M 7.9% 5.0% $1,000 5.7% 3.6% 4.2% 1.5% 0.0% 2015 2016 2017 2018 2019 Q1 2020 YTD IFRS U.S. GAAP 18
Slide 19: Strong Financial Position
STRONG FINANCIAL POSITION U.S. GAAP - IN MILLIONS 2018 2019 2020 QTD CASH • CASH EQUIVALENTS $4.0 M $11.5M $14.8M NET WORKING CAPITAL $12.5M $24.5M $28.5M ACCOUNTS RECEIVABLE $5.6M $7.2M $7.3M TOTAL INVENTORY $10.8M $15.1M $18.8M TOTAL ASSETS $30.5M $51.6M $61.7M TOTAL DEBT $1.8M $0.8M $7.6M (EXCLUD
Slide 20: Macro Growth Opportunities
MACRO GROWTH OPPORTUNITIES Rock Chips Are Top Consumer Complaint Paint Protection Film Low Penetration to New Cars Sold Fragmented Market Provides Opportunity Ripe for Consolidation Dealerships Need Tangible, Profitable Products Window Film First Example of Leveraging Channel Opportunity Equivalent
Slide 21: Appendix
APPENDIX
Slide 22: Non-GAAP Measures EBITDA Reconciliation
NON - GAAP MEASURES EBITDA RECONCILIATION U.S. GAAP - IN MILLIONS THREE MONTHS ENDED YEAR ENDED Mar 31, 2020 Mar 31, 2019 Dec 31, 2019 Dec 31, 2018 NET INCOME $1,611,354 $1,860,003 $13,995,072 $8,721,232 INTEREST $30,558 $28,706 $96,646 $168,389 TAXES $426,379 $565,588 $2,955,356 $2,760,073 DEPRECIA
Slide 23: Complete Protection, Unseen.
San Antonio, TX USA +1 210-678-3700 XPEL.COM COMPLETE PROTECTION, UNSEEN.