kesko cmd 2018 fast developing car trade · finland: audi, volkswagen, seat, porsche and man •...
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KESKO CMD 2018
Fast Developing Car TradeJohan Friman, President, Car Trade
19.6.2018 KESKO CMD 2018 | Investor Relations1
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Net salesRolling 12 months Q1/18
• Operating the Volkswagen Group’s business in Finland: Audi, Volkswagen, SEAT, Porsche and MAN
• Market leader with sales of over €0.9bn
• Value chain includes importing, retailing and after sales as well as an extensive dealer and servicing network
• Various service concepts developed under the K-Caara platform
New car retailing
31%
Used car retailing
15%After sales
9%
Importing / sales to dealers
45%
19.6.2018 KESKO CMD 2018 | Investor Relations2
Car Trade Business in Brief
€924m
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Strong Strategy Execution
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Continued operations, comparable operating profit
Financial performance2015 2017
Net sales
Operating profit
€748m €909m
€26m €33m
Growing the business in collaboration with the VW Group
Launching new mobility services
Acquisition of Porsche business in Finland – 14% net sales growthSEAT sales started in all own retail outlets – growth in market share
K-Caara platform for used car sales, rental & leasing and repair servicesNew digital services, e.g. 30% growth in online service booking
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Excellent Performance by the Acquired AutoCarrera
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• Expanding our brand portfolio within the VW Group to include Porsche passenger cars
• Net sales €55.3m, +14%*
• Earnings improving with an operating profit margin of 5.5%*
• Strong performance continued in Q1/2018:• Sales +28%• Registrations up by 66%
*2017 figures
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Leasing Services Off to a Good Start
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• K-CaaraLeasing – own leasing company for B2B customers
• K-CaaraDeal – leasing product for B2C customers
• Both launched in Q1/2018
• Full ownership of the customer relationship
• Earnings and improved margins stay with us throughout the car’s lifecycle: new car sales, service & repair, body-repair, used-car sales
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Targeting Continued Growthand Profitability Improvement
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Fast Changing Operating Environment
Industry consolidation
Price attractivemobility solutions
Dealer businessexpanding to services
Increasing need for supply chain efficiency
From owning a car topaying for use
Company cars mainlythrough leasing
Market overview
Customer expectations
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Volkswagen Group’s Response Is to Invest Heavily in Future Mobility
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annual unit sales of e-cars
~3million
new electrified models to customers80
billion euro investments in e-mobility, digitalisation, autonomous driving and mobility services34
over
over
every fourth new Volkswagen Group vehicle battery powered
Targets 2025
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Passenger cars'000
111.3103.5 106.2 108.8
119.0 118.6
2012 2013 2014 2015 2016 2017
Trucks over 6tn'000
2.73.1
2.22.4
2.93.1
2012 2013 2014 2015 2016 2017
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New Vehicle Registrations Growing in Finland
Vans'000
11.510.4 10.6
11.4
13.5
15.5
2012 2013 2014 2015 2016 2017
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Car Trade StrategyTargeting to Grow Faster Than the Market
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Growing the businessin collaboration with
the VW Group
Expanding the servicebusiness independent
of the VW Group
Best customerexperience –
in all channels
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Growing the Business in Collaboration with the VW Group
Future value creating actions
• Growing our volume in collaboration withthe Volkswagen Group – focus on electric cars
• Expanding our brand portfolio withinthe VW Group
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Expanding the Service Business Independent of the VW Group
Future value creating actions
• Extension of services under the K-Caara platform
• K Charge – a nationwide charging network for electric cars
• Transition from owning a car to payingfor the use of a car e.g. car sharing concepts
• Developing after sales services
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Expanding the Service Business by Building a Nationwide Charging Network for Electric Cars in 2018-2019
By the end of 2019 a network of 400 charging points at over 70 K-store locations
100 fast charging points where cars can be charged during a shopping trip
An over 50% increase in public fast charging points in Finland
K Group is the biggest producer and user of solar power in Finland
As much of the electricity as possibleproduced with solar power
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Best Customer Experience – in All Channels
Future value creating actions
• Utilising customer data from the K Group loyalty programme
• Increasing online sales capabilities e.g. new car sales, accessories
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Synergies for Future Mobility Concepts
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Strong customer insightand extensive store network
2020s:New businessopportunities
in mobility
Market leader inthe car trade and partnerto the Volkswagen Group
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Growing Faster Than the Market – and Continuously Improving Profitability