Results of the OPONEO.PL Capital Group for IH 2020 Investor presentation - ir.oponeo.pl
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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
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
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
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
Global potential UK Ireland Netherlands Belgium France Austria Italy Spain Germany Slovakia Hungary Czech Republic 6
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
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
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
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 18
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