Press Release Autodis Group FY 2017 preliminary unaudited results Continued strong revenue and profitability growth momentum and acceleration of acquisition strategy Arcueil, February 27, 2018 Autodis Group (the Group ) today announces its preliminary results for the year ended December 31, 2017 ( FY 2017 ). The following indications of the Group's results of operations for FY 2017 are estimates based on initial management review of the Group's preliminary consolidated financial information which have not been audited or reviewed by its statutory auditors or by any other audit firm and will be subject to approval by the Group's competent corporate bodies. The Group or its statutory auditors could identify items during the course of the audit that would require the Group to make adjustments to the figures presented herein. Actual year-ended results may differ from these estimates in ways that could be material. Highlights 23.1% year-on-year growth in Group IFRS 15 1 revenues in FY 2017, reaching approximately 1,255 million +27.4% year-on-year growth in Group Adjusted EBITDA 2, reaching approximately 118 million in FY 2017 and increasing Adjusted EBITDA margins to approximately 9.4% of FY 2017 revenues Logisteo, the Group s new automated central warehouse, fully operational Successful integration of Doyen Auto with synergies starting to materialize Continued Western European expansion, with successful entry in the Italian light vehicle ( LV ) independent aftermarket with the acquisition in 2017 of three independent distributors and regional leaders in Northern Italy Strategic refocus on core Western European market with the disposal of AD Polska in August 2017 Strong momentum going into 2018 supported by full-year impact of acquisitions made in 2017 The Group is a leading Western European integrated, independent B2B LV and truck spare parts distributor with operations in France, Benelux and Italy. The Group s FY 2017 results show that it is continuing to gain share in the resilient and highly fragmented Western European LV and truck spare parts independent aftermarkets ( IAMs ). The Group is a critical partner in the aftermarket ecosystem, with a distinct business model that combines state-of-the-art automated platforms with an extensive distribution network and leading 1 Financial information for the years ended December 31, 2017, 2016 and 2015 reflects the first application of IFRS 15 and the application of IFRS 5 Non-current assets held for sale and discontinued operations with respect to the AD Polska disposal. 2 Adjusted EBITDA is calculated by the Group as operating income from ordinary activities before depreciation and amortization expenses and as adjusted for certain items that the Group believes are non-related to ordinary activities or otherwise not reflective of the ongoing performance of the business, such as, with respect to FY 2017, (i) start-up costs related to new businesses, (ii) income and expenses attributable to implementation of the group transformation plan, (iii) sponsor fees paid to the majority shareholders and (iv) exceptional one-off expense related to professional conferences. 1
digital tools, which enables the Group to provide superior product availability and delivery times as well as a wide range of innovative value added services to its suppliers and customers. This ideally positions the Group for continued above-market growth and leadership as a market consolidator through value-additive and earnings-accretive acquisitions. Strong performance in 2017 across all segments The Group s FY 2017 revenues reached approximately 1,255 million, or 23.1% growth versus FY 2016, driven by solid organic growth momentum as well as the contribution of acquisitions completed during the fiscal years 2016 and 2017. Throughout 2017, the Group recorded +2.1% organic growth 3, outperforming the IAMs 4 in which it operates and driven primarily by market share gains in the LV IAMs through its owned network as well as its increasingly loyal affiliated distribution network. In addition, the Group s Trucks segment has returned to growth, reflecting the deployment of a new distribution model and the implementation of strategic operational initiatives. This strong revenue growth translated into significant Adjusted EBITDA expansion of +27.4% versus FY 2016 to reach approximately 118 million, or 9.4% of Group revenues in FY 2017. Acceleration of value-creative acquisition strategy in Western Europe Acquired in 2016, Doyen is now fully integrated and gives the Group differentiated access to the attractive Benelux market and synergies are starting to materialize. The Group has pursued its geographic expansion in Western Europe, successfully entering in the Italian LV IAM with the acquisition in 2017 of three independent distributors and regional leaders in Northern Italy, Ovam, Top Car and Ricauto. In order to expand its existing extensive product offering and technical expertise, in 2017 the Group also acquired Mondial Pare-Brise, a French auto glass repair network. The Group has also refocused its operations in Western Europe by completing the divestment of the Group s operations in Poland in 2017. New automated logistic platform fully operational since July 2017 The Group has also finalized its investment in Logisteo, a 30,000 square meter automated central warehouse. With a doubled assortment capacity (120,000 SKUs) and processing capacity (60,000 lines per day), Logisteo further reinforces the Group s integration of upstream logistics with suppliers and demonstrates that the Group s logistics platforms have the capacity to serve its growing footprint in Western European markets. Growth potential and 2022 ambition Building upon its unique operational model, the Group has a track record of compound annual growth of 11.2% since 2014, of which 2.8% was organic, outperforming the IAMs in which it operates 5. This growth has been driven by continued market share growth in core markets and incremental top-line growth from acquisitions as well as the development of a large network of AD 3 Organic growth between two financial periods is defined as Group revenue growth excluding the impact of acquisitions and disposals completed during those two financial periods. 4 5 2
branded garages which benefit from the Group s brand visibility and value added services while committing to an improved level of loyalty. Between 2014 and 2017, thanks to its upstream logistics integration, best-in-class distribution capabilities due to implementation of a new distribution model, and highly value-additive acquisitions, the Group has been able to significantly improve margins by +2.1 pts and increase Adjusted EBITDA from approximately 67 million in 2014 to approximately 118 million in 2017. Over the 2017 to 2022 period, the Group s ambition is to continue to deliver 2%-4% organic growth and accelerate further its top-line growth by consolidating its leadership in countries of presence and expanding geographically into new countries in order to reach approximately 2.0 billion in revenues and more than 200 million in Adjusted EBITDA at the end of the period. As part of its development strategy, the Group may consider a potential initial public offering in 2018, subject to favorable market conditions. In the context of a potential IPO, the Group may implement a capital increase and reach at IPO net leverage 6 of approximately 2.5 to 3.0. Selected Financial Figures (IFRS - unaudited) Year ended December 31, (in million) 2015 2016 2017 2016/2017 % growth Total Revenues 7... 968.6 1,019.7 1,254.8 +23.1% Total Adjusted EBITDA... 83.1 92.6 118.0 +27.4% About Autodis Group The Group is a leading independent aftermarket LV and truck spare parts distributor in Western Europe, mainly active in France, Benelux and Italy. The Group is strongly positioned within the growing and resilient Western European spare parts distribution IAM, and the stable and mature French truck spare parts distribution and repair IAM. The Group is the clear leader in the LV IAM in France, with the largest independent, single-branded distribution network and the second largest LV IAM distributor in both Belgium and Italy 8. In total, the Group serves a network of approximately 4,000 branded garages and approximately 70,000 clients across channels (garages, key accounts, web dealers). Over the 2014 to 2017 period, the Group has consistently outperformed the IAM and gained market share 9, delivering an organic revenues CAGR of 2.8% and 11.2% total revenues CAGR to reach approximately 1,255 million in Group revenues. The Group has also delivered strong profitability momentum, with an organic Adjusted EBITDA CAGR of 9.6% over the same period. With a favorable 6 Net leverage is calculated as the ratio of financial net debt to Adjusted EBITDA; net financial debt being defined as debt excluding (i) the impact of capitalized debt incurrence costs, (ii) accrued and unpaid interest and (iii) put options held by minority shareholders in subsidiaries, less cash and cash equivalents. 7 Financial information for the years ended December 31, 2017, 2016 and 2015 reflects the first application of IFRS 15 and the application of IFRS 5 Non-current assets held for sale and discontinued operations with respect to the AD Polska disposal. 8 9 3
long-term visibility on its addressable market, the Group is strongly positioned to be the consolidator of choice in its fragmented markets, and has a track record of value-enhancing and earningsaccretive acquisitions. The key to the Group s success lies in its ability to deliver superior product availability and best-in class delivery times, leveraging the control it has over the value chain through its proven multichannel operational model. The differentiated dual proposition of distribution of products to customers coupled with the provision of value-added services, providing suppliers and customers with unique support and business-generation tools. The Group is using digital tools to bolster its value-added services offering to suppliers and customers, including its B2B online ordering portals (Autossimo, Truckissimo), its technical hotline (through Grup Eina) and multi-brand online diagnostic tool (Diag issimo). The Group s B2B repair and maintenance portals increase the integration of the Group s business with its technical support capacities, driving customer loyalty. The Group also offers online tools for its customers clientele, which allows drivers to schedule maintenance appointments, compare prices and receive quotes for work to be performed on their vehicles. These services and tools enable the Group to bring business to its suppliers and customers. Contact For any questions related to this press release or Autodis Group, please contact: David Sturken Maitland Telephone: +44 0207 395 0450 E-mail: dsturken@maitland.co.uk Jean Christophe Alquier Alquier Communication Telephone : +33 06 11 36 40 08 E-mail : Jca@alquiercommunication.fr Key Performance Indicators *************************** In assessing the performance of the Group s business, the Group considers a variety of performance and financial measures. The key measure used for determining how the Group s business is performing is Adjusted EBITDA. Management internally assesses the performance and cash flows on a consolidated basis and of each operating segment on the basis of Adjusted EBITDA. Adjusted EBITDA is not a recognized measure under IFRS. Additionally, Adjusted EBITDA is used by different companies for different purposes and is often calculated in ways that reflect the particular circumstances of such companies. The Group believes that Adjusted EBITDA is useful in evaluating the Group s performance and results of operations because it is commonly used in its sector. Readers should exercise caution in comparing any of the non-ifrs measures mentioned in this press release, including Adjusted EBITDA, to the non-ifrs measures of other companies. The information presented by the non-ifrs measures used herein, including Adjusted EBITDA, has not been prepared in accordance with IFRS or any other accounting standards. Adjusted EBITDA is not a measure of financial condition, liquidity or profitability under IFRS and should not be considered as an alternative to consolidated net income for the period, cash flows generated by operating activities or any other 4
measure recognized by and determined in accordance with IFRS. Such non-ifrs measures have important limitations as analytical tools and readers should not consider them in isolation or as a substitute for analysis of the Group s results of operations. *************************** This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in France, the United Kingdom, the United States of America, Canada, Australia, Japan or any other jurisdiction. No communication and no information in respect of this press release or of the Company may be distributed to the public in any jurisdiction where a registration or approval is required. The Company assumes no responsibility for any violation of any such restrictions by any person. This announcement is not a prospectus within the meaning of Directive 2003/71/EC of the European Parliament at the Council of November 4th, 2003, as amended, in particular by Directive 2010/73/UE (together, the Prospectus Directive ). The distribution of this press release is not made, and has not been approved, by an authorized person within the meaning of Article 21(1) of the Financial Services and Markets Act 2000. As a consequence, this press release is directed only at persons who (i) are located outside the United Kingdom, (ii) have professional experience in matters relating to investments and fall within Article 19(5) ( investment professionals ) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (as amended), (iii) are persons falling within Article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) or (iv) are persons to whom this press release may otherwise lawfully be communicated (all such persons together being referred to as Relevant Persons ). This press release is not a prospectus which has been approved by the Financial Conduct Authority or any other United Kingdom regulatory authority for the purposes of Section 85 of the Financial Services and Markets Act 2000. Securities may not be offered or sold in the United States of America unless they are registered under the U.S. Securities Act of 1933, as amended (the U.S. Securities Act ), or exempt from registration. This press release may not be published, forwarded or distributed, directly or indirectly, in the United States of America. The distribution of this document in certain countries may constitute a breach of applicable law. The information contained in this document does not constitute an offer of securities for sale in Canada, Australia or Japan. This press release may not be published, forwarded or distributed, directly or indirectly, in Canada, Australia or Japan. Certain industry and market data included in this press release has come from third-party sources. Third-party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. While the Company believes that each of these publications, studies and surveys has been prepared by reputable sources, it has not independently verified the data contained therein. In addition, certain of the industry and market data contained in this press release comes from the Company's own internal research and estimates based on the knowledge and experience of its management in the markets in which it operates. While the Company believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent sources for accuracy or completeness and are subject to change without notice. 5
Forward-Looking Statements This press release may include certain forward-looking statements, beliefs or opinions, including statements with respect to the business, financial conditions, business strategies, expansion and growth of operations, results of operations and plans, trends and objectives and expectations of the Company and its subsidiaries. Forward-looking statements are sometimes identified by the use of words such as believes, expects, may, will, could, should, shall, risks, intends, estimates, aims, plans, predicts, continues, assumes, positions or anticipates or the negative thereof, other variations thereon or comparable language. Forward-looking statements included in the information reflect the Company s beliefs and expectations and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Although the Company has attempted to identify important factors that could cause actual results to differ materially, a number of other factors might cause actual results and developments to differ materially from those expressed or implied by these statements and forecasts and there can be no assurance that statements containing forward-looking information will prove to be accurate as actual results. The past performance of the Company and its subsidiaries cannot be relied on as a guide to future performance. Accordingly, no representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Any forward-looking statements included in this press release speak only as of the date hereof and the Company expressly disclaims any obligation or undertaking to release any update or revisions thereto to reflect any change in expectations or any change in the events, conditions or circumstances on which such forward-looking statements are based. 6