A Firm Grip. Investor and Analyst Presentation. on the Occasion of the Release of the 3-Monthly Results 2009

Transcription

1 A Firm Grip. Investor and Analyst Presentation on the Occasion of the Release of the 3-Monthly Results 2009

2 Agenda Delticom at a Glance Business Model Seasonalities in the Tyre Trade Financials Outlook 2

3 Agenda Delticom at a Glance Business Model Seasonalities in the Tyre Trade Financials Outlook 3

4 Delticom at a Glance #1 European online tyre dealer (car replacement tyres): > 100 online shops in 35 countries founded 1999, IPO Oct 06, SDAX Dec 08 customer base: more than 2.8 million 2008: ~700 thousand new customers broad product range: > 100 tyre brands, > 25,000 models other products: motorcycle, truck, rims, complete wheels, motor oil, car parts, accessories global network with more than 24,500 fitting partners DE 6138 US 5377 UK 1738 FR 2257 CH 908 Q1 09 Q1 08 yoy Revenues m Gross profit m EBIT m EBIT margin % Net income m Earnings per share Employees Total assets m Equity ratio % Return on equity % Dividend Operating cash flow m Shareholding Delticom SDAX DJSGR 4

5 Agenda Delticom at a Glance Business Model Seasonalities in the Tyre Trade Financials Outlook 5

6 Tyres and the Internet European Car Replacement Tyres: 11 billion EE+CE 76 SA 50 Rest 20 NA 263 other 67 DE 49 Germany: 2 bad years in a row, difficult 2009 ahead % -12.7% -3.5% -3.3% World Western Europe WE 199 in million tyres Asia 213 ES 13 IT 22 FR 24 UK in million tyres * Source: LMC World Tyre Forecast Service 2009, Michelin, BRV, own estimates Source: BRV (car replacement tyres) * estimates as of March 09 Europeans are increasingly online... adults on the Internet in % of total and buy their tyres online. 30% want 25% to buy online in the future (18-39) 20% want 15% to buy online in the future (all) 10% bought last tyres on the Internet (18-39) 5% 28.1% 27.8% 26.4% 24.1% 15.1% 13.7% 13.4% 3.3% 4.8% 15.6% 6.1% 15.0% 8.9% 4.9% bought last tyres on the Internet (all) 1.8% 2.5% 3.1% 0% 1.0% * Desk Research GfK Austria, December 2008 Source: ADAC Reifenmonitor , 2009 preliminary 6

7 Redesign of the Tyre Distribution Chain Traditional Retail Delticom Redesign European Tyre Manufacturers Non-European Tyre Manufacturers European Tyre Manufacturers Non-European Tyre Manufacturers Wholesalers Wholesalers Delticom European Distribution Centers Retailers Small Garages B2B Customers B2C Customers 7

8 Agenda Delticom at a Glance Business Model Seasonalities in the Tyre Trade Financials Outlook 8

9 2007 / 2008 / 2009 Seasonalities Q1 Q2 Q3 Q4 Q Relative Weather Cold Mar 08 late start into summer season 2008, revenues decreased yoy 2 2. Cold in Jan 09 (but not as much snow as in 08), even colder in Feb 09 (late snow) 3 3. Two warm weeks in Mar 08, revenues increased yoy 1 Relative Revenues 3 Summer season (Q2) and winter season (Q4) are very important. 9

10 Agenda Delticom at a Glance Business Model Seasonalities in the Tyre Trade Financials Outlook 10

11 Quarterly Revenues in million % +8.2% +25.2% +20.6% % +31.5% +9.4% +21.9% +19.8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0 Fluctuations in growth rates: seasons, weather, base effects, strategy 11

12 Telco other EBIT Revenues-to-EBIT Bridge in million 12 Rents Revenues Other operating income Cost of Sales Personnel expenses Depreciation Transportation Marketing Operation centres Warehousing Financial & Legal Bad debt Credit cards Gross margin and operating leverage drive EBIT

13 P&L Drivers growth margin % Q1 09 Q1 08 % factor Q1 09 Q1 08 chng Revenues Cost of sales Gross Profit (simple) Direct costs Direct costs (dep. on sales) Transportation costs Warehousing costs Operations centre costs Direct costs (dep. on revenues) Credit card fees Bad debt losses Marketing costs Contribution margin Indirect costs Personnel expenses Rents and overheads Financial and legal costs IT and telecommunications Other Contribution margin FX effects Other operating profit (w/o FX gains) EBITDA Depreciation / Amortization EBIT Net financial result Financial income Financial expenses EBT Income taxes Consolidated net income

14 Working Capital Management Accounts receivable Follow the seasonal peaks Q1 09: Warm in last week of March Inventories Driven by sales ( ) and capacity (+). (e.g ramp-up) Accounts payable... Discretionary payment terms, e.g. Q3 07: early payment Q2 08: stocking for winter season Working Capital Both + and, with significant swings. FY 08: 2009: Prepare for increased cash consumption (inventories, terms) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q quarterly delta in million Changes in working capital reflect seasonal patterns 14

15 Cash Bridge (TTM) in million Liquidity EBIT Depreciation other Provisions Inventories Receivables Payables Interest Taxes Property, Plant, Equipment Intangible Assets Securities etc. Dividends Paid Other financing FX Translation Differences Liquidity Delticom continues to be strongly self-financed 15

16 Agenda Delticom at a Glance Business Model Seasonalities in the Tyre Trade Financials Outlook 16

17 Outlook Current trading in Q2: pleasing April, satisfactory yoy growth warm reversal of Easter effect price levels remain robust remember base effects Q German market (BRV) 2008: summer 4.5%, winter 3.3% 2009: summer 4%, winter 3% Sales drop of 3.5%... is Best-Case -Scenario. More likely seems to us... 6% or 7% Production... Still: Recession or Depression? Prices? Demand? Delticom not unaffected by recession, but other factors might (partly) offset effects: Ongoing internationalization diversified country portfolio Recession in all European countries customers are trading down Delticom is online good prices, good sales, good margins Revenues 2009: not more than +10% EBIT-Margin: > 6% treated as a positive surprise 17

18 Key Investment Highlights 1 #1 European online tyre retailer 2 Resilient and profitable business model 3 Strong cash flow, strong balance sheet 4 Redesign of the tyre distribution chain 5 Excellent growth opportunities 18

19 Vielen Dank! Investor Relations: Melanie Gereke Delticom AG Brühlstr Hanover, Germany phone: