Kamux –Annual Results

Presentation 2018

March 1, 2019

CEO Juha Kalliokoski

CFO Tapio Arimo

Table of Contents Annual Results Presentation 2018

Q4 and 2018 in Brief Financial DevelopmentOutlook and Financial

TargetsSummary

Kamux Vision

#1 used car retailer

in Europe

Kamux Q4 2018 in Brief

Revenue increased to

EUR 131.1 million (114.3)

Gross profit increased

by 22.7% to

EUR 16.0 million (13.0)

Adjusted operating profit

increased to EUR 4.3million (3.3)

We opened new car showrooms in

Järvenpää, Ahrensburg,

Wentorf and Varberg and

announced several future

showrooms in different countries

Internationalization proceeded strongly

and revenue increased in Sweden by

35.9% to EUR 27.0 million and in

Germany by 41.1% to EUR 8.2 million

Like-for-like showroom

revenue growth was

0.7% (2.4%)

1.

2.

3.

4.

5.

6.

Kamux’s Market Position Strengthened in Q4 in a Challenging Operating Environment

Market Market size

(2018)

Kamux’s

market share

Market development during Q4 Kamux’s position and development

during Q4

Finland ~0.5 million

cars

~8.0%

#1

The Finnish market was

impacted by power source

debate and by the aftermath of

taxation change based on WLTP

emission measurement in new

cars. We estimate the market

declined slightly.

Kamux maintained its market

leader position, and we estimate

we grew clearly faster than the

market

Sweden ~1.2 million

cars

~0.5%

Top 10

The change in vehicle tax mixed

up the market in Sweden. We

estimate the market declined

clearly.

Kamux grew strongly and

strengthened its position among the

ten largest used car dealers

Germany ~7.2 million

cars

~0.0% We estimate the used car

market declined slightly.

Kamux grew its market share

Kamux in Q4 2018 — Profitable GrowthContinued

• Revenue growth in Q4 2018 was on a good level

considering the market situation

• Adjusted operating profit grew strongly in Q4 18

0

20

40

60

80

100

120

140

160

Q3Q1 Q2 Q4

14.7%

2016 2017 2018

0

1

2

3

4

5

6

7

Q3Q1 Q2 Q4

31.3%

2016 2017 2018

Revenue (EUR million) Adjusted Operating Profit (EUR million)

Number of Cars Sold Grew by 9.0%

218 616 636933 896

12,000

2,000

6,000

8,000

4,000

10,000

14,000

0

Q1 18

1,346

Q3 16 Q3 17

171

Q1 16

11,433

12,564

Q2 16

219 209

Q4 16

7,571

9,698

418

1,620

Q1 17

10,294

Q2 17

11,083

Q2 18

491 482

8,255

Q4 17

7,419

8,523

495

9,2589,833

Q3 18

8,676

9,882

11,379

7,9338,452

4991,107 1,1231,162 1,025

8,325

9,246

1,290

8,522

434

9,337

Q4 2018

1,448

9,48610,328

11,220

1,518

9,066

1,547

9.0%

Finland Sweden Germany

Sold Cars (pcs)

Integrated Services Revenue Continued to Grow

8

6

12

0

2

24

3

6

0

10

4

5

1

MEUR

Q1 18

5.1%

6.1

Q3 18

7.8

4.9

5.0%

%

4.8%

4.3%

Q1 16

4.7%

Q2 16

4.7%

Q3 16

6.0%

5.3%

Q2 17Q4 16

5.4

Q1 17

4.7%

4.2

5.3%

Q4 17

4.7%5.0%

Q2 18

5.0

Q3 17

5.6 5.86.1

6.46.8

Q4 18

5.2

Finance fees and insurance commissions Sales of Kamux Plus Integrates services % of Revenue

Integrated Services Revenue

• Q4 2018 finance fees and insurance commissions

included an additional fee in Finland

Kamux 2018 in Brief – a Year of Strong Growth despite the Market Challenges

Revenue increased

16.0% to EUR

527.8 million (454.9)

Gross profit increased

by 20.5% to

EUR 64.9 million (53.8)

Adjusted operating profit

increased to EUR 21.9million (18.6)

We opened 8 new car

showrooms in total, 3 in Finland,

3 in Sweden and 2 in Germany

Internationalization proceeded strongly and

revenue increased in Sweden by 39.3% to EUR

101.9 million and in Germany by 31.8% to EUR

30.1 million

Like-for-like showroom

revenue growth was

5.6% (-4.9 %)

1.

2.

3.

4.

5.

6.

Kamux in 2018 — Profitable GrowthContinued

• Adjusted operating profit grew strongly in 2018

550

0

300

100

50

150

200

350

250

400

450

500

2016 2017 2018

+12.4%

16.0%

0

5

10

7.0

6.0

1.0

3.0

15

4.0

20

5.0

25 8.0

2.0

0.02018

MEUR

2017

%

4.4%

2016

4.1% 4.1%

3.4%

+17.5%

Revenue (EUR million) Adjusted Operating Profit (EUR million)

• Revenue growth increased in 2018

Number of Sold Cars Grew by 13.8%

2 2464 098

4 7846 133

31 375

34 348

38 217

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

817

2016

1 825

2017 2018

36 290

40 957

46 596+12.9%

13.8%

Finland GermanySweden

Sold Cars (pcs)

Integrated Services Revenue Continued to Grow

20

0 0

5

15

3

10

25

30

6

5

40

35

1

2

4

4,8%

2017

MEUR %

2016

5,0% 5,1%

2018

19,3

22,8

27,1

Finance fees and insurance commissions

Sales of Kamux Plus

Integrated services % of revenue

Integrated Services Revenue

Financial DevelopmentTapio Arimo

CFO

Key Figures

(MEUR)10-12/

2018

10-12/

2017Change, %

1-12/

2018

1-12/

2017Change, %

Revenue 131.1 114.3 14.7 % 527.8 454.9 16.0 %

Gross profit 16.0 13.0 22.7 % 64.9 53.8 20.5 %

as percentage of revenue, % 12.2 % 11.4 % 12.3 % 11.8 %

Operating profit (EBIT) 3.9 3.3 20.3 % 18.9 16.2 16.5 %

as percentage of revenue, % 3.0 % 2.9 % 3.6 % 3.6 %

Adjusted operating profit 4.3 3.3 31.3 % 21.9 18.6 17.5 %

as percentage of revenue, % 3.3 % 2.9 % 4.1 % 4.1 %

Revenue from integrated services 7.8 6.1 28.4 % 27.1 22.8 18.5 %

as percentage of revenue, % 6.0 % 5.3 % 5.1 % 5.0 %

Sales growth of like-for-like showrooms, % 0.7 % 2.4 % 5.6 % -4.9 %

Inventory turnover, days 49.6 46.8 6.0 %

Return on equity (ROE), % 22.9 % 26.6 %

Return on capital employed (ROI), % 16.2 % 17.2 %

Equity ratio, % 60.0 % 57.2 %

Earnings per share, basic, EUR 0.08 0.05 70.0% 0.37 0.30 21.9%

Kamux’s Revenue Grew 14.7% in Q4 2018

• The number of used cars sold by Kamux in the fourth quarter grew by 9.0% and totaled 11,220 cars (10,294).

• Kamux’s revenue grew by 14.7% Q4 2018.

• The increase in revenue was driven by new showrooms, expansions of existing showrooms and like-for-like revenue growth.

• Like-for-like sales growth in Q4 was 0.7% (2.4%). 0

20

40

60

80

100

120

140

160

Q3 17Q2 16 Q1 17Q1 16 Q3 16 Q4 16 Q2 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

14.7%

Kamux Finland — Stable Growth

• Revenue grew by 12.6% in 2018 compared to

the previous year and was EUR 419.1 million

(372.4).

• Gross margin increased to EUR 54.3 million

(46.4) and 13.0% (12.5 %) of revenue.

• Operating profit increased to EUR 24.1 million

(23.1) and 5.8% (6.2%) of revenue.

• Like-for-like showroom growth was positive.

0

20

40

60

80

100

120

Q1 Q3Q2 Q4

+13.6% +14.3%11.6%

+10.8%

2016 2017 2018

Revenue (EUR million)

0

2

4

6

8

Q4Q1 Q2 Q3

20172016 2018

Operating Profit (EUR million)

Kamux Sweden — Very Strong Revenue Growth Continued

• Revenue grew by 39.3% in 2018 compared to

the previous year and was EUR 101.9 million

(73.2).

• Operating profit was EUR 0.9 million (-0.1)

and 0.9% (-0.1%) of revenue.

• Linköping, Västerås and Varberg showrooms

were opened in 2018.

• Like-for-like showroom revenue growth was

strong.

0

5

10

15

20

25

30

Q2Q1 Q3 Q4

+51.2% +38.0%

34.5% +35.9%

2016 2017 2018

Revenue (EUR million)

0.0

-1.0

-0.5

0.5

1.0

Q3Q2Q1 Q4

2016 2017 2018

Operating Profit (EUR million)

Kamux Germany — Revenue Growth Continued

• Revenue grew by 31.8% compared to the

previous year and was EUR 30.1 million (22.8).

• Operating loss was EUR -1.8 million (-1.9).

• Development of Kamux’s concept and processes

has proceeded well and we opened Ahrensburg

and Wentorf showrooms in Q4 in Germany.

• Like-for-like showroom growth was very strong.

0

2

4

6

8

10

Q2 Q3 Q4Q1

+21.2%+21.6%

42.2% +41.1%

2016 20182017

Revenue (EUR million)

-0.8

-0.6

0.0

-0.4

-1.0

-0.2

Q3Q1 Q2 Q4

2016 2017 2018

Operating Profit (EUR million)

Net Working Capital and Inventories Grew

0

10

20

30

40

50

60

70

Q4 17Q1 17Q2 16 Q4 16Q1 16 Q3 16 Q1 18Q2 17 Q3 17 Q2 18 Q3 18 Q4 18

23.7%

Net Working Capital (EUR million) Inventories (EUR million)

0

10

20

30

40

50

60

70

80

Q2 17Q1 16 Q2 16 Q3 17Q3 16 Q4 16 Q1 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

28.6%

Cash Flow from Operations

-6

-4

-2

0

2

4

6

8

10

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q3 18Q2 18 Q4 18

Cash Flow from Operations (EUR million)

Cash Flow from Operations

Cash Flow from Operations excluding Special Items and Net Working Capital Change

Special Items

Net Working Capital Change

Investments in Growth Continued According to Strategy

In line with our strategy, we have

systematically invested in our future

• Personnel: recruitment and training

• Internationalization: the necessary resources

to grow internationally

• Digital functions: developing the CRM-ERP

system, analytics, data management and

financial management systems

0.0

0.5

1.0

1.5

Q3 16Q2 16 Q4 16 Q2 18Q1 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q3 18 Q4 18

Investments (EUR million)

1.5

0.0

0.5

1.0

2.0

Q3 17Q1 16 Q2 16 Q4 16Q3 16 Q1 17 Q2 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

Group Functions (EUR million)

Dividend Proposal and Annual General Meeting

• The Board of Directors will propose to the

AGM a dividend of EUR 0.16 per share (0.12)

• Earnings per share was EUR 0.37 (0.30) in

2018

• The proposed dividend is 44% (40%) of net

profit

• The Annual General Meeting will be held on

April 12, 2019 in Helsinki

Outlook and

Financial Targets

Outlook and Financial Targets

Kamux does not

publish a short-term

outlook

Revenue growth of

over 10 % annually

2019-2022

EBIT margin of

at least 4 % in

2019-2022

Distribute dividends of

at least 30% of net

profits

Revenue Profitability Dividend Policy

€ €€

Outlook

Summary

Summary 2018

Revenue grew to

EUR 527.8 million (454.9)

Profitability improved –

adjusted operating profit

EUR 21.9 million (18.6)

Like-for-like

showroom revenue

growth 5.6 % (-4.9)

Internationalization

continued very

strong – Sweden

achieved clearly

positive EBIT

Questions?

Disclaimer

It should be noted that Kamux and its business are exposed to various risks and uncertainties, and certain statements herein which are not historical facts, including without limitation, those regarding expectations for market growth and developments; expectations for growth and profitability; and statements preceded by “believes”, “expects”, “anticipates”, “foresees”, or similar expressions, are forward-looking statements.

Since these statements are based on current

plans, estimates and projections, they

involve risks and uncertainties that may

cause actual results to materially differ from

those expressed in such forward-looking

statements. All statements are based on the

management’s best assumptions and beliefs

in light of the information currently available

to it and Kamux assumes no obligation to

publicly update or revise any forward-looking

statement except to the extent legally

required.