On track. Investor and Analyst Presentation On the Occasion of the Release of the Preliminary Figures for Q Hanover, 19 April 2011

Transcription

1 On track. Investor and Analyst Presentation On the Occasion of the Release of the Preliminary Figures for Q1 2011

2 Agenda Delticom at a Glance Business Model Profit & Loss Balance Sheet Outlook 2

3 Agenda Delticom at a Glance Business Model Profit & Loss Balance Sheet Outlook 3

4 Delticom at a Glance #1 European online tyre dealer > 100 online shops in 39 countries founded 1999, IPO Oct 2006, SDAX Dec more than 180 thousand new customers so far customer base: more than 4.5 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 108 employees, mainly in the Hanover head office global network with more than 28,000 fitting partners, e.g. DE 7873 US 2261 UK 1789 FR 3265 CH

5 Key Financials Q1 Q111 Q110 yoy % guidance Revenues m ~ 10 % More prices than volume... Gross Margin % p... at lower margins yoy. Ebit Margin % p < 10.5% Strong base + FX effects Ebit m Interest rates are rising (slowly). Capex m New warehouse on track for Q211 Q1 performance according to plan 5

6 Agenda Delticom at a Glance Business Model Profit & Loss Balance Sheet Outlook 6

7 Tyres and the Internet PC & LT Replacement Tyres Europe: > 10 billion EE+CE 60 SA 52 Rest 21 NA 255 other 69 DE 59 Germany: very good 2010, uncertain outlook for % +3.3% 12.7% 1.3% 0.0% WE 220 in million tyres World Asia 239 ES 15 Source: Datamonitor, Continental, Michelin, own estimates IT 24 Western Europe FR 26 UK in million tyres * Source: BRV (car replacement tyres) * estimates as of March 2011 Europeans are increasingly online... adults online in % of total Desk Research GfK Austria, January and buy their tyres online. 35% think 30% about buying online (ADAC, 18-39) 25% think about buying online (ADAC, all) 20% 15% bought tyres on the Internet (ADAC, 18-39) 10% bought tyres on the Internet (BRV,GFK) 5% bought tyres on the Internet (ADAC all) 0% 30.8% 29.6% 27.8% 15.8% 16.5% 15.0% 6.4% 9.2% 3.2% 4.0% 7.9% 4.8% 4.8% 3.7% * Source: ADAC (new methodology vs. 2009), BRV, GFK 7

8 Redesign of the Tyre Distribution Chain Traditional Retail Delticom Redesign 8

9 Key Benefits for Our Partners Customers Fitting Partners Suppliers save time and money select from broad product offering fast delivery, even at peak times large network of service partners pre-/after sale services customer generation, free of charge no restrictions on fitting prices might offer other services (e.g. stock tyres until next changeover) customers review quality of fitting service favourable B2B offers Europe s leader in the online channel, strong growth, high volumes strong balance sheet, low credit risk efficient warehouse systems and processes for large and growing quantities versatile database (supply and demand, volumes and prices), supports consistent planning improved customer value well connected attractive partnership 9

10 Agenda Delticom at a Glance Business Model Profit & Loss Balance Sheet Outlook 10

11 Customers in thousands New Customers 4%...still the main growth driver Repeat Customers +17%...long replacement cycle and customers are happy Ratio Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1... repeat customers (slowly) Repeat customers constitute important growth potential 11

12 Quarterly Revenues in million % % +17% % +12% +16% +46% +28% +15% ,0 88,1 62,4 109,7 74,5 102,9 79,7 162,6 85,4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Fluctuations in growth rates: base effects, Easter holidays, weather 12

13 Quarterly Gross/EBIT Margins Gross Margin (simple) EBIT Margin % 25% 20% 2,1 26,0% 2,4 26,4% 1,9 27,8% 2,2 28,8% 0,4 26,4% 1,2 27,6% 0,7 27,1% 1,5 30,3% 0,2 26,2% 30% 25% 20% 15% 4,4 1,6 15% 10% 5% 0% 2,0 2,2 1,0 2,7 0,3 0,7 4,0 5,2% 8,6% 7,3% 13,4% 7,9% 10,6% 7,5% 15,0% 7,2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 10% 5% 0% Higher prices + shortage premiums, but very difficult comps 13

14 Quarterly EBIT in million % % % % +49% +34% +122% +33% +5% ,6 7,5 4,5 14,7 5,9 10,9 6,0 24,3 6,1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0 Unusually high Q110 EBIT growth 14

15 P&L Drivers (Q1) EUR yoy % of Revenues Q111 Q110 % Q111 Q110 chng Revenues 85,4 74,5 14,6 100,0 100,0 0,0 Cost of sales 63,0 54,8 15,0 73,8 73,6 0,2 Gross Profit (simple) 22,3 19,7 13,6 26,2 26,4 0,2 Direct costs 11,8 10,8 9,2 13,9 14,6 0,7 Direct costs (dep. on sales) 8,8 8,2 7,4 10,3 11,0 0,7 Transportation costs 6,8 6,4 5,8 7,9 8,6 0,7 Warehousing costs 0,9 0,9 0,4 1,0 1,2 0,1 Operations centre costs 1,1 0,9 24,8 1,3 1,2 0,1 Direct costs (dep. on revenues) 3,0 2,7 14,8 3,6 3,6 0,0 Credit card fees 0,7 0,5 35,5 0,8 0,7 0,1 Bad debt losses 0,4 0,4 18,5 0,4 0,6 0,2 Marketing costs 2,0 1,7 17,0 2,3 2,3 0,0 Contribution margin 1 10,5 8,8 19,1 12,3 11,8 0,5 Indirect costs 3,6 3,4 5,7 4,3 4,6 0,4 Personnel expenses 1,7 1,6 10,7 2,0 2,1 0,1 Rents and overheads 1,0 0,9 11,6 1,1 1,1 0,0 Financial and legal costs 0,4 0,6 23,0 0,5 0,8 0,3 IT and telecommunications 0,2 0,2 26,2 0,2 0,2 0,0 Other 0,3 0,3 5,8 0,4 0,4 0,0 Contribution margin 2 6,9 5,4 27,8 8,0 7,2 0,8 FX effects 0,7 0,4 0,8 0,6 1,4 Other operating profit (w/o FX gains) 0,3 0,4 0,4 0,5 0,1 EBITDA 6,5 6,2 5,6 7,6 8,3 0,7 Depreciation / Amortization 0,4 0,3 24,6 0,4 0,4 0,0 EBIT 6,1 5,9 4,6 7,2 7,9 0,7 Net financial result 0,0 0,0 50,1 EBT 6,2 5,9 4,8 7,2 7,9 0,7 Income taxes 2,0 1,9 5,0 Consolidated net income 4,2 4,0 4,8 4,9 5,4 0,5 More price than volume tyre price increases good sales from own warehouses wages E-Commerce momentum will go with new warehouse double whammy: LY + TY 15

16 Agenda Delticom at a Glance Business Model Profit & Loss Balance Sheet Outlook 16

17 Working Capital Management Accounts receivable 2,1 1,1 1,6 0,4 3,2 2,2 0,5 5,5 6,2 31,6... follow the seasonal peaks. Inventories 10,6 0,8 4,2 1,1 2,7 3,9 5,9 24,4 22,4 5,4 5,7 8,4 17,1 11,9 4,5... increasing... Accounts payable 6,1 10,9 13,7 17,7 5,8 0,9 24,7 15,4... funded only in part w/ AP (and significant early payments) 3,1 Q1 Q2 Q3 13,1 Q4 Q1 Q2 Q3 5,8 Q4 Q1 Working Capital... swings are getting more pronounced quarterly delta in million 17

18 Liquidity Bridge (ttm) in million ,3 1,4 1,0 23, ,4 0,1 12, ,6 5,0 0,1 0,8 20, ,0 0,1 47,5 45, Liquidity EBIT Depreciation other Provisions Inventories Receivables Payables Interest Taxes Propery, Plant and Equipment Intangible Assets Securities etc. Dividend Payments Other financing FX Translation Liquidity % dividend payout Delticom remains self-financed 18

19 Agenda Delticom at a Glance Business Model Profit & Loss Balance Sheet Outlook 19

20 Outlook Current trading in Q2: better comps to be expected good motorcycle tyre sales Market for replacement tyres Germany: 2011 est (BRV, as of March 2011): summer ±0%, winter ±0% 2011 top- and bottom line drivers: shortages (possibly FY) new warehouse (earliest Q3) negative base effects (Q4) after 3 good winters in a row. Other factors: seasonal effects customers are trading down Delticom is international Delticom is online Revenues FY11: ~ +10% yoy EBIT-Margin FY11: 1%p yoy summer/winter tyres online channel gains importance diversified country portfolio good prices, good sales, good margins 20

21 Summary 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 Investor Relations: Melanie Gereke Delticom AG Brühlstr Hanover, Germany gereke@delti.com phone: