On track. - Delticom...On track. Investor and Analyst Presentation On theOccasionof the Release of the Preliminary Figures for FY 2012 Hanover, 23January 2013 Preliminary FY Figures

On track.

Investor and Analyst PresentationOn the Occasion of the Release of the Preliminary Figures for FY 2012Hanover, 23 January 2013

Preliminary FY Figures

Hanover, 23 January 2013 2

Agenda

Delticom at a Glance

Business Model

Profit & Loss

Balance Sheet

Outlook


Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook 3

Agenda


Business Model

Profit & Loss

Balance Sheet

Outlook




DE 8557 US 2474 UK 2033 FR 4405 CH 1770

� #1 European online tyre dealer

� > 100 online shops in 42 countries

� founded 1999, IPO Oct 2006, SDAX Dec 2008

� customer base: more than 6.2 million

� focus on replacement tyres: > 100 tyre brands, > 25,000 models

� other products:

� motorcycle tyres, bicycle tyres

� truck tyres, industrial tyres

� complete wheels and rims

� motor oil, car parts, accessories

� 144 employees, mainly in the Hanover head office

� global network with more than 34,000 fitting partners, e.g.



Key Financials FY 12

► Outperforming the market in the core business segment B2C

Q4 12 Q4 11 yoy % FY 12 FY 11 yoy % guidance*

Revenues EC € m 172,7 176,5 –2,1 441,4 455,6 –3,1 B2C up, B2B weak due to …

Revenues WS € m 3,2 5,9 –44,7 15,0 24,4 –38,6 … cyclical downturn.

Revenues € m 175,9 182,3 –3,5 456,4 480,0 –4,9 < FY11 adverse market environment

Gross Margin % 25,0 28,8 –3,9 p 25,7 27,4 –1,7 p price pressure

EBIT € m 15,0 24,8 –39,4 32,5 52,9 –38,6 higher fixed costs

EBIT Margin % 8,5 13,6 –5,1 p 7,1 11,0 –3,9 p 7 – 8 % lowered profitability

Inventories € m 74,1 106,5 –30,4 less working capital

Cash Flow € m 62,2 –9,6 strong cash flow generation

Liquidity € m 46,2 22,2 +108,0 favourable net cash position

* as of 17 October 2012, guidance for FY 12



Agenda


Business Model

Profit & Loss

Balance Sheet

Outlook


Hanover, 23 January 2013At a glance Business Model Profit & Loss Balance Sheet Outlook

–4.9%+10.1%

+3.3%–1.3%

+2.4%

0

10

20

30

40

50

60

2000 01 02 03 04 05 06 07 08 09 10 11 12*

3.2% 4.0%

7.9%

3.7%

9.2%

6.4%

19.2%

15.8%15.0%

16.5%

31.0%30.8%29.6%

27.8%

5.8%4.8% 4.8%

0%

5%

10%

15%

20%

25%

30%

35%

99 2000 01 02 03 04 05 06 07 08 09 10 11

7879

57

73

57

86

60

78

50

95

61

88

57

7

Tyres and the Internet

Source: Datamonitor, Continental, Michelin, own estimates

PC & LT Replacement Tyres Europe: > € 12 billion

Europeans are increasingly online...

in million tyres

... and buy their tyres online.

Source: BRV (car replacement tyres) * estimates as of March 2012

in million tyres

Germany: sluggish 2011, outlook slightly better for 2012

think about buying online (ADAC, 18-39)

think about buying online (ADAC, all)

bought tyres on the Internet (ADAC, 18-39)

bought tyres on the Internet (BRV,GFK)

Source: ADAC (new methodology in 2011), BRV, GFK

WesternWesternWesternWestern

EuropeEuropeEuropeEurope

ES

15IT

24

FR

26

DE

59

UK

27

other

69

WorldWorldWorldWorld

Rest

21

Asia

239

NA

255

WE 220

EE+CE

60

SA

52

bought tyres on the Internet (ADAC all)

Desk Research GfK Austria, January 2012

adults online in

% of total

DEPRECATED

DEPRECATED

DEPRECATED

DEPRECATED



Redesign of the Tyre Distribution Chain

Traditional Retail Delticom Redesign►



Agenda


Business Model

Profit & Loss

Balance Sheet

Outlook



Repeat customers constitute important growth potential►

New Customers

Repeat Customers

Ratio

...still the main growth driver

... long replacement cycle

and customers are happy

... repeat customers �

in thousands

Customers

22

5

148

164

143

199

140

165

133

180

130

152

114

32

5

165

197

164

328

183

230

181

333

189

248

188

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2010 2011 2012

–1 %

+13 %



Quarterly Revenues

Fluctuations in growth rates: seasons, weather, base effects, strategy►

in € million

87,2

107,8

162,6

79,7

102,9

85,4

74,5

85,5

112,9

99,4

182,3

17

5,9

–12 %

+46 %

+17 %

+28 %

+48 %

+15 %

+10 %

+25 %

+12 %

+0 %

–5 %

–3 %

2010 2011 2012

0

25

50

75

100

125

150

175

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

0

25

50

75

100

125

150

175



Quarterly Gross/EBIT Margins

Q4: more attractive prices to drive volume►

8,5

%

4,9 %

9,1 %

4,0 %

13,6 %

9,5 %

11,3 %

7,0 %

15,2 %

7,9 %

11,0 %

7,2 %

0%

30%

25%

20%

15%

10%

5%

25

,0 %

25,7 %

26,9 %

25,8 %28,8 %

25,8 %

27,7 %

25,9 %

30,6 %

27,4 %

28,0 %

25,7 %

2010 2011 2012

30%

25%

20%

15%

10%

5%

0%

–3,9–0,1

–0,7–0,1

–1,8

–1,6

–0,3

0,3

1,8

–0,41,6

–0,3

–5,1

–4,6

–2,2

–2,9

–1,6

1,7

0,3

–0,2

1,8

0,6

2,4

2,0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Gross Margin

EBIT Margin



Quarterly EBIT

► Lower GPM, negative currency impact and insourced warehouse related costs

4,3

9,5

12,8

5,9

24,8

24,8

5,3

11,3

6,3

3,4

9,8

15

,0

0

25

20

15

10

5

–39 %

–23 %

–42 %

+0 %

+51 %

+13 %

+11 %

+69 %

+38 %

+49 %

+102 %–55 %

2010 2011 2012

25

20

15

10

5

0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

in € million



P&L Drivers (Q4)

� more attractive prices

� sales push �

� smaller warehouse closed in Q1

� partly insourced

14

Q4 12 Q4 11 % Q4 12 Q4 11 chng

Revenues 175,9 182,3 –3,5 100,0 100,0 0,0

Cost of sales 132,0 129,7 1,7 75,0 71,2 3,9

Gross Profit (ex ooi) 43,9 52,6 –16,4 25,0 28,8 –3,9

Direct costs 23,3 22,0 6,0 13,2 12,1 1,2

Direct costs (dep. on volume) 16,9 16,4 3,2 9,6 9,0 0,6

Transportation costs 14,5 13,2 9,5 8,2 7,3 1,0

Warehousing costs 1,1 1,8 –37,1 0,6 1,0 –0,3

Operations centre costs 1,3 1,3 –5,2 0,7 0,7 0,0

Direct costs (dep. on revenues) 6,4 5,6 14,2 3,6 3,1 0,6

Credit card fees 1,3 1,2 9,4 0,8 0,7 0,1

Bad debt losses 0,4 0,2 60,5 0,2 0,1 0,1

Marketing costs 4,6 4,1 12,9 2,6 2,3 0,4

Contribution margin 1 20,7 30,6 –32,5 11,7 16,8 –5,0

Indirect costs 5,2 5,6 –7,5 3,0 3,1 –0,1

Personnel expenses 2,4 2,0 20,0 1,4 1,1 0,3

Rents and overheads 1,6 1,8 –7,3 0,9 1,0 0,0

Financial and legal costs 0,2 1,2 –80,9 0,1 0,6 –0,5

IT and telecommunications 0,3 0,2 37,6 0,2 0,1 0,1

Other 0,6 0,5 33,0 0,4 0,3 0,1


FX effects –0,3 –0,2 –0,2 –0,1 –0,1

Other operating profit (w/o FX gains) 0,6 0,6 0,3 0,3 0,0

EBITDA 15,7 25,4 –38,4 8,9 13,9 –5,0

Depreciation / Amortization 0,7 0,7 1,7 0,4 0,4 0,0

EBIT 15,0 24,8 –39,4 8,5 13,6 –5,1

Net financial result 0,0 0,0 –563,4

EBT 15,0 24,8 –39,3 8,5 13,6 –5,0

Income taxes 4,6 7,7 –39,9

Consolidated net income 10,4 17,0 –39,0 5,9 9,3 –3,4

EUR yoy % of Revenues

� new warehouse



P&L Drivers (FY)

� according to plan

15

FY 12 FY 11 % FY 12 FY 11 chng

Revenues 456,4 480,0 –4,9 100,0 100,0 0,0

Cost of sales 338,9 348,4 –2,7 74,3 72,6 1,7

Gross Profit (ex ooi) 117,4 131,6 –10,8 25,7 27,4 –1,7

Direct costs 63,1 62,0 1,8 13,8 12,9 0,9

Direct costs (dep. on volume) 46,9 47,5 –1,2 10,3 9,9 0,4

Transportation costs 38,2 37,4 2,0 8,4 7,8 0,6

Warehousing costs 3,6 5,1 –30,0 0,8 1,1 –0,3

Operations centre costs 5,1 4,9 4,0 1,1 1,0 0,1

Direct costs (dep. on revenues) 16,2 14,5 11,6 3,6 3,0 0,5

Credit card fees 3,6 3,6 –0,9 0,8 0,7 0,0

Bad debt losses 1,3 1,0 32,9 0,3 0,2 0,1

Marketing costs 11,3 10,0 13,9 2,5 2,1 0,4


Indirect costs 19,1 17,1 11,5 4,2 3,6 0,6

Personnel expenses 8,8 7,2 21,4 1,9 1,5 0,4

Rents and overheads 6,2 4,9 25,8 1,3 1,0 0,3

Financial and legal costs 1,0 2,7 –64,2 0,2 0,6 –0,4

IT and telecommunications 1,2 0,8 55,2 0,3 0,2 0,1

Other 2,0 1,5 32,8 0,4 0,3 0,1


FX effects –2,2 0,5 –0,5 0,1 –0,6

Other operating profit (w/o FX gains) 2,1 2,0 0,5 0,4 0,0

EBITDA 35,2 55,0 –36,1 7,7 11,5 –3,8

Depreciation / Amortization 2,7 2,1 28,0 0,6 0,4 0,2

EBIT 32,5 52,9 –38,6 7,1 11,0 –3,9

Net financial result –0,1 0,0 –34474,6

EBT 32,4 52,9 –38,9 7,1 11,0 –3,9

Income taxes 10,3 16,9 –39,2

Consolidated net income 22,1 36,0 –38,7 4,8 7,5 –2,7

EUR yoy % of Revenues

� fixed costs

� one-off effect 2011 washed out

� weak demand in 2012



Agenda


Business Model

Profit & Loss

Balance Sheet

Outlook



2,1 4,3 6,2

–24,0

22,2

20,4

–1,9 1,9

–3,4

4,3

–22,5

–19,7

17,7

5,8

–0,9

–5,8

15,4

–3,4

26,7

–24,1

35,5

–7,4

16,2

–37,4

16,6

12,3

4,8

–24,3

31,4

19,7

19,6

–16,4

28,2

0,4

–8,6

–52,3

3,2

–2,2

0,5

–5,5

6,2

–2,7

5,1

–5,7

4,0

–3,4

2,3

–4,7

2010 2011 2012

Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1

quarterly delta in € million

Accounts receivable

Inventories

Accounts payable

Working Capital

... follow the seasonal peaks.

... seasonal stock reduction

... decreasing AP

... strong cash flow

Working Capital Management

17



Liquidity Bridge

Net cash = € 43.9 million ►

in € million

22,2

32,52,7 –0,9

32,43,1

9,3 –0,2 –16,7

–0,9 –0,2 0,0 –34,9

–2,1 –0,1 46,2

0

20

40

60

80

100

120

Liquidity

31.12.11

EBIT

Depreciation

other

Provisions

Inventories

Receivables

Payables

Interest

Taxes

Propery, Plant

and Equipment

Intangible

Assets

Securities etc.

Dividend

Payments

Other

financing

FX Translation

Liquidity

31.12.12

0

20

40

60

80

100

120



Agenda


Business Model

Profit & Loss

Balance Sheet

Outlook



Outlook

� Replacement tyre market 2012

� Germany: sell-out (BRV): summer – 12,8 %, winter – 7.3 %

� Europe: sell-in (ETRMA): – 13,0 %

� Sentiment 2013

� depressed consumer confidence

� tyres: low visibility

Neue Reifen-Zeitung (Online Survey),

December 2012

““““74% of the respondants74% of the respondants74% of the respondants74% of the respondants

expect the negative terndexpect the negative terndexpect the negative terndexpect the negative ternd

to continue in 2013to continue in 2013to continue in 2013to continue in 2013””””

Handelsblatt, 10 January 2013

H.J. Drechsler (BRV, Germany): H.J. Drechsler (BRV, Germany): H.J. Drechsler (BRV, Germany): H.J. Drechsler (BRV, Germany):

““““We find it difficult to give an We find it difficult to give an We find it difficult to give an We find it difficult to give an

outlook for 2013...outlook for 2013...outlook for 2013...outlook for 2013...““““

BRV, 18 December 2012

““““German tyre retail dropped by German tyre retail dropped by German tyre retail dropped by German tyre retail dropped by –––– 10,1%10,1%10,1%10,1%””””ETRMA, 15 January 2013

““““...this is the lowest...this is the lowest...this is the lowest...this is the lowest

market volume sincemarket volume sincemarket volume sincemarket volume since

more than 7 years.more than 7 years.more than 7 years.more than 7 years.””””


Hanover, 23 January 2013 21

Summary

#1 European online tyre retailer

Excellent growth opportunities

Strong cash flow, strong balance sheet

Resilient and profitable business model

Redesign of the tyre distribution chain

1111

2222

3333

4444

5555

Investor Relations:

Melanie Gereke

Delticom AG

Brühlstr. 11

30169 Hanover, Germany

eMail: [email protected]

phone: +49-511-93634-8903

Documents

On track. - Delticom...On track. Investor and Analyst Presentation On theOccasionof the Release of the Preliminary Figures for FY 2012 Hanover, 23January 2013 Preliminary FY Figures