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Kamux Corporation’s Interim Report for January 1 – September 30, 2021

12.11.2021

Kamux Corporation                Interim Report                                            November 12, 2021 at 09:00

Kamux Corporation’s Interim Report for January 1 – September 30, 2021

Kamux saw very strong growth, revenue +22.8% – Adjusted operating profit (EBIT) remained below the comparison period

The figures in parentheses refer to the comparison period, i.e. the same period in the previous year, unless stated otherwise.

July-September in brief

– Revenue increased by 22.8%, totaling EUR 254.6 million (207.4)

– Gross profit increased by 0.4% to EUR 29.0 million (28.9), or 11.4% (13.9) of revenue

– Adjusted operating profit (EBIT) decreased by -19.1% to EUR 10.0 million (12.4), or 3.9% (6.0) of revenue

– Operating profit (EBIT) decreased by -17.5% to EUR 10.0 million (12.1), or 3.9% (5.8) of revenue

– The number of cars sold increased by 8.2% to 18,699 cars (17,285)

– Like-for-like showroom revenue growth was 13.9% (3.1)

– Earnings per share were EUR 0.18 (0.23)

January-September in brief

Revenue increased by 32.0%, totaling EUR 693.3 million (525.3)

Gross profit increased by 7.3% to EUR 72.7 million (67.7), or 10.5% (12.9) of revenue

Adjusted operating profit (EBIT) decreased by -3.1% to EUR 22.4 million (23.2), or 3.2% (4.4) of revenue

Operating profit (EBIT) decreased by -22.2% to EUR 18.5 million (23.8), or 2.7% (4.5) of revenue

The number of cars sold increased by 15.1% to 51,701 cars (44,924)

Like-for-like showroom revenue growth was 20.3% (-4.6)

Earnings per share were EUR 0.31 (0.45)

Kamux’s German subsidiary initiated legal proceedings against a local procurement partner, due to which an EUR 3.9 million provision related to possible costs and losses was recognized in the second quarter. This had a negative impact on the operating profit.

Key figures

EUR million 7-9 /2021 7-9 /2020 Change, % 1-9 /2021 1-9 /2020 Change, % 1-12 /2020
Revenue 254.6 207.4 22.8% 693.3 525.3 32.0% 724.1
Gross profit 29.0 28.9 0.4% 72.7 67.7 7.3% 91.5
as percentage of revenue, % 11.4% 13.9% 10.5% 12.9% 12.6%
Operating profit (EBIT) 10.0 12.1 -17.5% 18.5 23.8 -22.2% 31.2
as percentage of revenue, % 3.9% 5.8% 2.7% 4.5% 4.3%
Adjusted operating profit* 10.0 12.4 -19.1% 22.4 23.2 -3.1% 30.7
as percentage of revenue, % 3.9% 6.0 % 3.2% 4.4% 4.2%
Revenue from integrated services 10.7 9.4 12.9% 30.0 27.0 11.2% 37.1
as percentage of revenue, % 4.2% 4.6% 4.3% 5.1% 5.1%
Number of cars sold 18,699 17,285 8.2% 51,701 44,924 15.1% 60,657
Gross profit per sold car, EUR 1,549 1,669 -7.2% 1,406 1,508 -6.8% 1,509
Sales growth of like-for-like showrooms, % 13.9% 3.1% 20.3% -4.6% -3.8%
Net debt 58.7 45.0 30.4% 53.5
Inventories 117.8 95.2 23.8% 93.6
Inventory turnover, days 48.8 50.9 -4.2% 47.2
Capital expenditure 1.7 1.0 59.8% 5.1 3.3 55.4% 4.9
Average number of employees during the period 839 690 21.6% 713
Return on equity (ROE), % 18.6% 27.0% 26.3%
Return on investment (ROI), % 11.7% 15.5% 16.9%
Equity ratio, % 41.7% 43.4% 50.1%
Earnings per share, basic, EUR 0.18 0.23 -20.5% 0.31 0.45 -31.8% 0.58

* Operating profit adjusted for special items related to strategy planning, legal processes and taxes from previous financial years, totaling EUR 0.0 million for the third quarter of 2021 and totaling EUR 3.9 million for 1-9/2021 (7-9/2020: EUR 0.2 million, 1-9/2020: EUR -0.6 million and 1-12/2020: EUR -0.5 million).

CEO Juha Kalliokoski:

“In the third quarter, we continued to grow very strongly in accordance with our strategy. Revenue increased by 22.8% and sales of like-for-like showrooms by 13.9%. In September, we raised our revenue outlook for 2021. According to the updated outlook, the revenue for 2021 is expected to be EUR 850-900 million, whereas the earlier outlook was EUR 800-850 million.

The adjusted operating profit remained below the corresponding period in the previous year and was EUR 10.0 million. It must be noted that the comparison period was exceptional in used car retail. The uncertainties created by the outbreak of the corona pandemic dissipated and the restrictions were cancelled, which boosted sales and profitability strongly in July-September of last year. In the third quarter, inventory turnover developed favorably in the Group.

The used car market declined in all three countries but particularly strongly in Germany. In Germany, the market decline was more pronounced in the northern part of the country, in the greater Hamburg area, where Kamux’s showrooms are located. According to our estimate, the market declined in this area by more than 15% in the third quarter. Kamux nevertheless grew in all its markets.

We will continue to focus on our strategic focus areas, such as leading with knowledge and training our personnel particularly in management and leadership. We also aim to further improve customer experience.

The corona pandemic is still a factor affecting Kamux’s business. We do not know how the corona pandemic will develop and how it will impact different countries, the economy and people’s movement or behavior in the near future. We at Kamux will focus determinedly on implementing the Company’s growth strategy despite the uncertainty caused by the corona pandemic.

Outlook for the year 2021

On September 24, 2021, Kamux updated its outlook for 2021. The Company raised its revenue outlook for 2021 while maintaining its outlook for adjusted operating profit unchanged. Kamux’s updated outlook for 2021 is as follows: In 2021, Kamux expects its revenue to be EUR 850900 million. The Company expects its adjusted operating profit to increase from the previous year.

Previously, Kamux expected its revenue to reach EUR 800-850 million in 2021 and its adjusted operating profit to increase from the previous year.

Financial targets for 20212023

The Company’s medium-term financial targets are to increase revenue by over 20% annually, to increase adjusted operating profit annually, and to reach an adjusted operating profit margin of over 3.5% and a return on equity (ROE) of over 25%. Additionally, the Company’s target is to distribute dividends of at least 25% of net profits. The Board of Directors of the Company estimates annually the balance between dividends to be distributed and funds to be used for Kamux’s growth and based on this assessment, makes a proposal on the amount of dividends to be distributed, which may for any single year differ significantly from the target level set in the dividend policy.

Publication schedule for financial reporting in 2022

Publication schedule for Kamux Corporation’s financial reporting in 2022:

March 4, 2022: Kamux Corporation will publish its Financial Statements Bulletin 2021.

May 13, 2022: Kamux Corporation will publish its Interim Report for January-March 2022.

August 12, 2022: Kamux Corporation will publish its Half-Year Report for January-June 2022.

November 18, 2022: Kamux Corporation will publish its Interim Report for JanuarySeptember 2022.

The Annual Report for 2021 including Financial Statements will be published on week 12/2022.

The Annual General Meeting of Kamux Corporation is scheduled to be held on April 20, 2022.

Briefings

Kamux will hold an Interim Report press conference and webcast for media and analysts today, November 12, 2021, at the Symposion meeting room in Hotel Kämp in Helsinki at 11:00 (EET) in Finnish and then in English at around 12:00 (EET). You can follow it as a live webcast in Finnish at https://kamux.videosync.fi/2021-q3-tulos and in English at https://kamux.videosync.fi/2021-q3-results.  A conference call will be held in connection with the webcast.

Registration for personally attending the briefing is requested by email to ir@kamux.fi by November 10, 2021.

Participation by conference call:

Finland: +358 981 710 310

Sweden: +46 856 64 2651

United Kingdom: +44 333 300 0804

United States: +1 631 913 1422

PIN: 73583036#

The Interim Report will be presented by CEO Juha Kalliokoski and CFO Marko Lehtonen.

In Hämeenlinna on November 12, 2021

Kamux Corporation

The Board of Directors

For more information:

Juha Kalliokoski, CEO, Tel. +358 40 185 8633

Marko Lehtonen, CFO, Tel. +358 50 575 2006

Satu Otala, Director of Communications, Tel. +358 400 629 337

ir@kamux.fi

Kamux Oyj_Interim Report_Q3_2021_FINAL