Results of the OPONEO.PL Capital Group for IH 2020 Investor presentation - ir.oponeo.pl

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Results of the OPONEO.PL Capital Group for IH 2020 Investor presentation - ir.oponeo.pl
Results of the OPONEO.PL
Capital Group for IH 2020

Investor presentation
Results of the OPONEO.PL Capital Group for IH 2020 Investor presentation - ir.oponeo.pl
Management Board

                                                                  CEO
                                                                  Dariusz Topolewski

              Management Board        Management Board       Management         Management Board
                  Member                   Member           Board Member             Member
              Michał Butkiewicz       Maciej Karpusiewicz    Ernest Pujszo      Wojciech Topolewski
              Accounting department     IT/WEB department
                                                            sales department           marketing
                     logistics
                                                                                       department

                                                                                                      2
Results of the OPONEO.PL Capital Group for IH 2020 Investor presentation - ir.oponeo.pl
Highlights IH 2020

                               437             1,7mln                               6,4 K
                                employees    tires sold in 1H 2020       partner service stations offering tire
                                                                                 mounting in Europe

                  market capitalization         dividends paid in 2020
                           of
                                            PLN 1,4 mln                                         48 K
             PLN 362 mln                                                                    square metres
                                                                                       of space in the new logistics
                                                                                                  center

                     6 mln                  2.1 pct                              867 PLN
              unique users on Oponeo.pl     conversion rate                the average gross value of the
                      in 1H 2020              in 1H 2020                    shopping basket in 1h 2020

                                                                                                                  3
Results of the OPONEO.PL Capital Group for IH 2020 Investor presentation - ir.oponeo.pl
E-commerce and IT hub

                                                                                                                          Projects executed by
                                         Subsidiaries              OPONEO.PL S.A.                Affiliates
                                                                                                                               Oponeo.pl
   Opony.pl Sp. z o.o., OPONEO.CO.UK LTD,                                      10%
                                                                   100%       votes          Eximo Project
 Oponeo.de GmbH, Oponeo International Sp. z
                                                                             on the          It conducts outsourcing and consulting activity
                     o.o.                                                    General         spanning comprehensive IT supervision and
The core business of these companies is the sale of tyres and                Meeting         security audits of IT systems. It offers proprietary
wheels on domestic and foreign markets.
                                                                                             F5Wizard software under the SaaS model. It
                                                                                             renders technical support services through its
                                                                                             service desk. It handles users’ requests through a
                                            Dadelo.pl S.A.         100%                      modern call center.
Owner of the largest bicycle store in Poland -
CentrumRowerowe.pl and of the Dadelo.pl store. It offers a wide                                                                        Felgi.pl
array of “immediately available” products because it has its own
warehouse with 2.1k square meters of space.                                         Internet store offering aluminum wheel rims that takes
                                                                                    advantage of a modern selection of vehicles. Seasoned sales
                                                                                    representatives who are reachable by phone and e-mail provide
                                  Hurtopon.pl Sp. z o.o.           100%             sales support. The virtual dressing room makes it possible to
                                                                                    match wheel rims to your car perfectly.
Sales platform dedicated to companies from the tire,
automotive and transport industries. It integrates the
warehouse stocks of wholesalers from across Poland, thereby
making it possible to compare various suppliers’ offers.
                                                                                                                                           4
Results of the OPONEO.PL Capital Group for IH 2020 Investor presentation - ir.oponeo.pl
Effective business model
                                                          OPONEO.PL
SUPPLIERS /                                               Online platform:                   Distribution channels:
MANUFACTURERS                                             ▪ Intuition search engine          ▪ SEO
Vehicles:                                                 ▪ Client and expert opinions       ▪ Performance
▪ Delivery                                                  (the largest base in Europe)     ▪ Media (TV, radio, prasa)
▪ Passenger                                               ▪ High quality photos              ▪ Social media
▪ 4x4                                                                                        ▪ TrustPilot, ReviewCenter, Opineo
                                                                       CALL CENTER           ▪ Newsletter
▪ Trucks
▪ Motocycles                                                          ▪ Located in Bydgoszcz and Lublin
▪ Quads                                                               ▪ Professional consulting
4,5k models of tires                                                  ▪ In multiple languages
and wheel rims in its
                                                                                                          DIRECTLY TO RETAIL
offering
                                                                                                          CLIENTS

LOGISTICS                                                                                                  ▪   Free delivery
                                                                                                           ▪   Delivery within 24h in Poland
▪ Modern proprietary warehouse                                                                             ▪   Installment purchases
  located in Bydgoszcz (28                                                                                 ▪   Option to buy tire insurance
  thousand square meters, 40k          DELIVERY TO 6,3k
  tires dispatched on a daily basis)   PARTNER SERVICES
▪ Logistics center in Siechnice and
  Wojtkowice used (20k square          ▪ 1,1k in Poland
  meters, 15k tires dispatched on a    ▪ 5,3k abroad
  daily basis each)
▪ Dropshipping – 30% of the                                                                                                   5
  Group's shipping
Results of the OPONEO.PL Capital Group for IH 2020 Investor presentation - ir.oponeo.pl
Global potential

                                           UK
                             Ireland
                   Netherlands               Belgium

                    France                                  Austria

                                                                  Italy
                     Spain
                             Germany            Slovakia
                                 Hungary
                                           Czech Republic

                                                                          6
Results of the OPONEO.PL Capital Group for IH 2020 Investor presentation - ir.oponeo.pl
Strategy and growth targets

                       Strengthening its position as the leader of the websales of tires in
                       Poland and sales growth through the internet stores operating on
                       foreign markets

                       Developing the project to sell bicycles and bicycle parts and accessories
                       through Dadelo S.A.

                       Developing the logistics center and perfecting logistics processes

                       Actively searching for opportunities to penetrate more e-commerce
                       trade markets

                       Taking measures to extend the array of products offered on-line

                                                                                              7
Results of the OPONEO.PL Capital Group for IH 2020 Investor presentation - ir.oponeo.pl
OPONEO.PL on the WSE

              ▪   OPONEO.PL’s GROUP is steadily developing by implementing acquisitions and
                  effectively pursuing international expansion. The company’s stock has shot up by
                  more than 200% from the time it executed its first deal. The company’s shareholders
                                                                                                           P/E
                  are benefiting from the company’s growth as they receive profit distributions in the    25,22
                  form of a dividend and dividends have been paid annually since 2011.

              ▪   The company’s largest shareholders are Ryszard Zawieruszyński and Dariusz
                  Topolewski who taken together control more than 40% of OPONEO.PL’s equity.

                                          Shareholding - update 22.09.2020                                 P/BV
                                                                                                            1,8

                                                                         22,11
                                                    31,91

                                                                                                           BVPS
                                                                           21,54
                                                     8,29                                                14,99 PLN
                                                            9,2   6,95

                           Ryszard Zawieruszyński    Dariusz Topolewski            Norges Bank
                           Generali PTE              Aegon OFE                     Free float
                                                                                                             8
Results of the OPONEO.PL Capital Group for IH 2020 Investor presentation - ir.oponeo.pl
E-commerce and its prospects
                                                                                                         The number of people shopping on-line
                           ▪    Forecasts suggest that the number of people conducting
                                online purchases and the value of e-commerce will                              around the globe (billion)
                                growth globally.                                            2,5                 CAGR = 7,15 proc.                                   2,14
                                                                                                                                                            2,05
                                                                                                                                                    1,92
                                                                                             2                                             1,79
                                                                                                                                  1,66
                           ▪    The trends being observed exert a positive effect on        1,5       1,32
                                                                                                               1,46       1,52

                                OPONEO.PL’s business. The percentage of people doing
                                                                                             1
                                on-line shopping is on the rise in all the markets where
                                the company has a presence.                                 0,5
                                                                                             0
                                                                                                      2014     2015       2016    2017     2018p    2019p   2020p   2021p
                               Value of the e-commerce market in Poland                     Source: Statista
                                               (PLN billion)
                      80
                                                                                     70
                      70                                                                                     E-commerce global retail soles (PLN
                      60
                                                                50         50                                            billion)
                      50                                                                    6000
                                                     41                                                                                                              4878
                      40                  36                                                5000                      CAGR = 20,32proc.
                                32                                                                                                                           4135
                      30                                                                    4000                                                     3453
                                                                                                                                            2842
                      20                                                                    3000                                    2304
                                                                                                                1548       1845
                                                                                            2000       1336
                      10
                                                                                            1000
                       0
                                                                                                  0
                               2015      2016       2017      2018       2019       2020P
                                                                                                       2014     2015       2016     2017    2018p   2019p   2020p   2021p

                                                                                            Source: Statista

        Source: European Ecommerce
        Report 2019
                                                                                                                                                             9
Results of the OPONEO.PL Capital Group for IH 2020 Investor presentation - ir.oponeo.pl
The automotive market and its prospects

                                            Registration of new passanger cars in the                                                    ▪   According to the data
                                                    EU (in thousands of units)                                                               compiled by the Polish
                                 8 000               6 916                                                                                   Automotive Industry
                                 6 000                                                                                                       Association (PZPM), the
                                                                                                 4 282                                       registration of new cars
                                 4 000
                                                                                                                                             in the European Union
                                 2 000                                                                                                       has been growing
                                     0                                                                                                       steadily across the
                                                         1H 2019                                    1H 2020                                  European Union in
                                                                                                                                             recent years.
                       Source: Polish Automotive Industry Association (PZPM)

                                                                                                                                         ▪   Steady growth has been
                                                                                                                                             observed in tire sales in
                                                    Tire sales in Europe (millions of units)                                                 Europe from 2014-2016
                                                                                                                                             in replacement tires for
                                                                                          10,6                          12,6
                     200       9,2           9,5              9,8           9,8                                                              passenger vehicles and
                     150                                                                                                                     for trucks. A
                     100     196,7          202,8            206,7         205            207,5             6           218,7                deterioration in market
                                                                                                                                 5,1
                     50                                                                                    106
                                                                                                                                             conditions was visible
                                                                                                                                 83
                                                                                                                                             from 2017.
                      0
                              2014           2015            2016          2017           2018           1H 2019        2019    1H2020

                                                      replacement tires for passanger vehicles       tires for trucks
     Source: ETRMA

                                                                                                                                                           10
Growing volumes of tires and wheel rims

                       Number of tires sold (millions of units)                           Number of wheels sold (thousands of
                                                                                                       units)

                                                             1,7

                                                                                                                              56,5
                                                 +13,3%                                                             +8,6%

                                                                                                 52,1
                              1,5

                          1H 2019                         1H 2020                            1H 2019                        1H2020

          ▪   OPONEO.PL’s Group is steadily ratcheting up its business size as is evidenced in the growing numbers of
              tires and wheel rims sold.

          ▪   Last year was a record-breaking year in terms of the number of tires and wheel rims sold. The favorable
              trends seen in this area in 1H2020 allow one to posit with a high level of probability that the record will
              be broken again in 2020.

                                                                                                                                     11
Growing revenues and profits

                                Sales revenues (PLN million)                                       EBITDA and net profit (PLN million)

                                                                    460
                                                                                                                          EBITDA   net profit

                                                       +15,6%

                                                                                                    19,2

                                                                                                                                                18

                                                                                                                                                              13,5
                                 398

                                                                                                                    8,9
                              1H2019                             1H2020                                    IH2019                                    IH2020

          ▪   The growing volume of tires and wheel rims sold is translating into a positive impact on the financial results generated by
              OPONEO.PL’s Group. Sales revenue is growing steadily while favorable trends are also visible in 1H 2020.
          ▪   During the first half of 2020, the OPONEO.PL Group experienced sales revenues at the level of PLN 459,957 thousand,
              compared to PLN 398,006 thousand in the corresponding period of the previous year. A 15.6% increase in revenue was
              achieved despite the economic slowdown in the country and worldwide caused by the SARS-CoV-2 epidemic, and the fall in
              sales of passenger tyres across the entire market, which reached 22% in Europe and 26% in Poland.

                                                                                                                                                               12
Sales split
                                                                                                    ▪ OPONEO.PL’s Group currently
                             Product sales structure (PLN million)
                                                                                                      has a presence on 13 European
                                                                                                      markets: Austria, Belgium,
                                 tires
                                                                                                      Czech Republic, France, Spain,
                           wheel rims                                                                 Holland, Ireland, Germany,
                                                                                                      Poland, Slovakia, United
                   other merchandise                                                                  Kingdom, Italy and Hungary. In
                                                                                                      1H of 2020, foreign sales
              other revenue (services)
                                                                                                      accounted for 20% of the sales
                                         0     50   100   150   200   250   300   350   400   450     structure.
                                               1H2020     1H2019
                                                                                                    ▪ Tires and wheel rims play the
                           Sales revenues divided into Poland and abroad                              prevalent role in the product
                                           (PLN million)                                              structure (tires generated PLN
                  500
                                                                                                      404,4 million in revenue in 1H
                  400                                                             93                  of 2020 while wheel rims
                                         92
                  300                                                                                 generated PLN 17,4 million in
                  200
                                                                                                      revenue in 1H of 2020).
                                                                                  367
                                         306
                  100

                    0
                                     1H 2019                                  1H 2020

                                                     Poland     abroad
                                                                                                                            13
Sound margin
                                                           Profit and gross sales margin
                                                                                                                                                                                                            79,8
               80,0
                                                                                                                                                                   67,1                                                         66,5
                                                                                                                                                                                                                                          70
                                                                                                                                                                                                                                               ▪ OPONEO.PL’s Group is steadily
               70,0                                                                                                                                                                                                                       60
               60,0                                                                                                    54,8                  52,6
                                                                                                                                                                                        56,2
                                                                                                                                                                                                                                          50
                                                                                                                                                                                                                                                 ratcheting up its business size
               50,0                                                        40,3
                                                                                                 36,7                                                                                                                                     40     while retaining a stable level of
               40,0
               30,0
                                28,5                  29,8
                                                                                      22,5
                                                                                                                                                                              26,6                24,3                27,2                30     margins. For the purpose of
                                                                                                                                  20,6                  21,5
               20,0 11,0                   11,1
                                                                14,7                                        17,4                                                                                                                          20     enhancing its profitability the
                                                                                                                                                                                                                                          10
               10,0                                                                                                                                                                                                                              Company is striving to optimize
                0,0                                                                                                                                                                                                                       0
                                                                                                                                                                                                                                                 its logistics and IT processes

                      3Q 2015
                                 4Q 2015
                                            1Q 2016
                                                       2Q2016
                                                                 3Q 2016
                                                                            4Q 2016
                                                                                       1Q 2017
                                                                                                  2Q 2017
                                                                                                             3Q 2017
                                                                                                                        4Q 2017
                                                                                                                                   1Q 2018
                                                                                                                                              2Q 2018
                                                                                                                                                         3Q 2018
                                                                                                                                                                    4Q 2018
                                                                                                                                                                               1Q2019
                                                                                                                                                                                         2Q2019
                                                                                                                                                                                                   3Q2019
                                                                                                                                                                                                             4Q2019
                                                                                                                                                                                                                       1Q2020
                                                                                                                                                                                                                                 2Q2020
                                                                                                                                                                                                                                                 while continuing efforts to
                                            gross sales profit (PLN million)                                                                                       gross sales margin (%)                                                        expand onto foreign markets.

                                                                Costs of sales (PLN million)                                                                                                                                                   ▪ The rapid growth of its business
               60                                                                                                                                                                                           53,5                          40     operations involves higher costs
               50                                                                                                                                              43,1                                                             42,8
                                                                                                                                                                                                                                          35     of sales (employee costs,
                                                                                                                                                                                                                                          30
               40                                                                                                 36,9                   34,7
                                                                                                                                                                                        37,2
                                                                                                                                                                                                                      32,8                25
                                                                                                                                                                                                                                                 transport, shipping and
                                                                                                                                                                              28,6                29,8
               30                                                    25,823,427,4
                                                                                 21,2
                                                                                                                              24,6                      25                                                                                20     warehousing costs, interchange
                      18,417,619,6
               20
                  11,7            14,0
                                                                                                                                                                                                                                          15
                                                                                                                                                                                                                                                 fees on payments made using
                                                                                                                                                                                                                                          10
               10
                                                                                                                                                                                                                                          5      payment cards.
                0                                                                                                                                                                                                                         0

                                     costs of sales (PLN million)                                                                            costs of sales/sales revenue (%)

                                                                                                                                                                                                                                                                         14
Financial ratios

                           Profitability ratios %                        1st half of 2020   1st half of 2019

                           EBIT margin as a % (EBIT / Sales revenue) x                                         Net profit
                           100%
                                                                                    2.6%               3.2%
                                                                                                                 margin
                                                                                                                            +0,7 p.p.
                           EBITDA margin as a % (EBITDA/Sales
                           revenue) x 100%
                                                                                    3.9%               4.8%         ROA     +1,1 p.p.

                           Gross sales margin in %
                           (Gross sales profit / Sales revenue) x 100%
                                                                                   20.4%              20.8%         ROE     +1 p.p.

                           Net profit margin (loss) stated as a % (Net
                                                                                    2.9%               2.2%
                           profit / Sales revenue) x 100%

                           Return On Assets – ROA (Net profit / total
                                                                                    3.5%
                           assets) x 100%
                                                                                                       2.4%

                           Return on Equity - ROE (Net Profit /
                                                                                    6.5%               5.5%
                           Equity) x 100%

         Source: Company

                                                                                                                                 15
Equity story

               Growing financial results

               Dividend paid

               Favorable market environment in e-commerce and automotive

               Exposure to international markets

               Business diversification to include new e-commerce projects

               Plan to continue pursuing foreign expansion

                                                                      16
Legal disclaimer

                   This presentation has been prepared solely for informational purposes. It is not intended to
                   persuade anyone to acquire or dispose of any financial instruments. This presentation does not
                   constitute an advertisement or a proposal, nor does it propose the acquisition of financial
                   instruments. Sources of information have been used which OPONEO.PL considers to be credible
                   and precise; however, there is no guarantee that they are exhaustive and fully reflect the facts.
                   This presentation may contain forward-looking statements constituting investment risk or a
                   source of uncertainty and they may deviate substantially from the actual results. OPONEO.PL is
                   not liable for the outcomes of decisions made on the basis of this presentation. This presentation
                   should not be treated as sufficient source of knowledge to make an investment decision. The
                   liability for how the information set forth in this presentation is used rests solely on the party
                   utilizing this presentation. This presentation is subject to protection stemming from the act on
                   copyrights and neighboring rights. Reproducing, publishing and disseminating this information
                   requires OPONEO.PL’s written consent.

                                                                                                              17
Contact

          Dariusz Topolewski
          Monika Siarkowska

          OPONEO.PL S.A.
          ul. Podleśna 17
          85-145 Bydgoszcz
          Poland

          mail: ir@oponeo.pl
          www.oponeo.pl

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