2022-08-12 08:00:00 CEST

2022-08-12 08:00:18 CEST


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Kamux Oyj - Half Year financial report

Kamux Corporation's Half Year Financial Report January 1-June 30, 2022: Kamux increased its revenue by +7.9% in a challenging market environment, but adjusted operating profit decreased significantly


Kamux Corporation Half Year Financial Report 12.8.2022 at 09:00

Kamux Corporation's Half Year Financial Report for January 1-June 30, 2022:
Kamux increased its revenue by +7.9% in a challenging market environment, but
adjusted operating profit decreased significantly

This is a summary of Kamux Corporation's Half Year Financial Report for January
1-June 30, 2022. The complete report is attached to this release and is also
available at the company website atwww.kamux.com.

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

April-June in brief

-       Revenue increased by 7.9%, totaling EUR 246.8 million (228.8)

-       Gross profit increased by 19.2% to EUR 24.5 million (20.5), or 9.9%
(9.0) of revenue

-       Adjusted operating profit (EBIT) decreased by -33.6% to EUR 4.5 million
(6.8), or 1.8% (3.0) of revenue

-       Operating profit (EBIT) increased by 59.8% to EUR 4.5 million (2.8), or
1.8% (1.2) of revenue

-       The number of cars sold decreased by -6.4% to 15,688 cars (16,760)

-       Like-for-like showroom revenue growth was 5.5% (37.9)

-       Basic and diluted earnings per share were EUR 0.07 (0.04)

January-June in brief

-       Revenue increased by 10.4%, totaling EUR 484.1 million (438.6)

-       Gross profit increased by 11.5% to EUR 48.7 million (43.7), or 10.1%
(10.0) of revenue

-       Adjusted operating profit (EBIT) decreased by -18.4% to EUR 10.2 million
(12.4), or 2.1% (2.8) of revenue

-       Operating profit (EBIT) increased by 19.6% to EUR 10.2 million (8.5), or
2.1% (1.9) of revenue

-       The number of cars sold decreased by -5.2% to 31,289 cars (33,002)

-       Like-for-like showroom revenue growth was 7.0% (24.5)

-       Basic and diluted earnings per share were EUR 0.18 (0.12)

Key figures

EUR million             4-6/    4-6/    Change,  1-6/    1-6/    Change,  1-12/
                                        %                        %
                        2022    2021             2022    2021             2021
Revenue                 246.8   228.8   7.9%     484.1   438.6   10.4%    937.4
Gross profit            24.5    20.5    19.2%    48.7    43.7    11.5%    101.3
as percentage of        9.9%    9.0%             10.1%   10.0%            10.8%
revenue, %
Operating profit        4.5     2.8     59.8%    10.2    8.5     19.6%    28.0
(EBIT)
as percentage of        1.8%    1.2%             2.1%    1.9%             3.0%
revenue, %
Adjusted operating      4.5     6.8     -33.6%   10.2    12.4    -18.4%   31.4
profit*
as percentage of        1.8%    3.0%             2.1%    2.8 %            3.3%
revenue, %
Revenue from            12.8    9.9     29.4%    24.6    19.3    27.5%    42.8
integrated services
as percentage of        5.2%    4.3%             5.1%    4.4%             4.6%
revenue, %
Number of cars sold     15,688  16,760  -6.4%    31,289  33,002  -5.2%    68,429
Gross profit per sold   1,559   1,225   27.3%    1,557   1,324   17.6%    1,480
car, EUR
Sales growth of like    5.5%    37.9%            7.0%    24.5%            19.1%
-for-like showrooms, %
Net debt                                         85.6    76.2    12.3%    70.4
Inventories                                      143.5   122.8   16.9%    132.8
Inventory turnover,                              55.4    46.5    19.1%    49.3
days
Capital expenditures    0.5     2.2     -77.5%   1.9     3.4     -45.8%   7.4
Average number of                                874     820     6.6%     848
employees during the
period
Return on equity                                 22.2%   22.0%            19.5%
(ROE), %
Return on investment                             12.6%   13.6%            12.5%
(ROI), %
Equity ratio, %                                  44.5%   39.3%            47.3%
Earnings per share,     0.07    0.04    96.2%    0.18    0.12    44.0%    0.49
basic, EUR
Earnings per share,     0.07    0.04    96.5%    0.18    0.12    44.2%    0.49
diluted, EUR

* Operating profit adjusted for special items related to legal processes and
taxes from previous financial years, totaling EUR -0.1 million for the second
quarter of 2022 and totaling EUR -0.1 million for 1-6/2022 (4-6/2021: EUR 3.9
million, 1-6/2021: EUR 3.9 million and 1-12/2021: EUR 3.4 million).

CEO Juha Kalliokoski:

“During the second quarter we succeeded in increasing our market share in all of
our operating countries despite a challenging market environment. Fluctuation in
the number of cars sold was remarkably high in many countries, but our unit
sales decreased less than the market. The war in Ukraine as well as the
accelerating inflation, particularly the sharply increased fuel prices, weakened
consumer confidence and the demand for used cars decreased very strongly. In
addition, we succeeded in increasing our revenue which is our most important
goal. Revenue grew by 7.9%, and like-for-like showroom sales grew by 5.5%. Sales
of integrated services developed very well, but margin development per car in
Finland and Sweden was not satisfactory.

As during the first quarter, the reduced demand was directed particularly
towards electric and hybrid cars, and regarding combustion engine cars, towards
low-consumption models. In order to meet the change in demand, we took active
measures to address our inventory of cars for sale and we expect to continue
this work. Given the continued limited availability of used cars and the tough
purchasing market for the most popular models, we succeeded well in our
purchasing operations and the number of hybrid and electric cars we sold
increased by almost 38% compared to Q2 of 2021.

Despite the challenging market environment, we continued to invest in growth in
accordance with our strategy. In Finland, two showrooms moved to larger
premises, and in Sweden we opened one new showroom and announced two new
showrooms to be opened in the fall. In Finland, we also started a strong brand
marketing campaign at the end of the quarter to further boost sales.

Furthermore, we invested in growing the organization's capabilities and I'm
happy to share that with the appointment of Jarkko Lehtismäki as Chief Digital
Officer the renewal and strengthening of the Group Management Team initiated in
January is now complete.

I would like to thank all Kamux employees for their determined work for the
benefit of the company and our customers also during this challenging quarter.”

Outlook for the year 2022 (Updated)

Kamux lowered its financial guidance for full-year 2022 revenue and operating
profit on August 11, 2022. According to the updated outlook, in 2022 Kamux
expects its revenue to be over EUR 1,000 million. The company expects its
adjusted operating profit to be approximately EUR 23-30 million. Previously,
Kamux expected its revenue to be at least EUR 1,100 million and adjusted
operating profit to increase from the previous year.

Although Kamux's business is not exposed to immediate Russia-related risks, the
war in Ukraine and its effects have weakened consumer confidence. This has led
to a strong contraction in the demand for used cars in all Kamux's operating
countries from March 2022 onwards. The weakened demand and the measures taken to
address the inventory to match the current demand have also had a negative
impact on Kamux's profitability.

Financial targets for 2021-2023

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.

Significant events after the reporting period

On August 11, 2022 Kamux published a profit warning and lowered its guidance on
full-year 2022 revenue and operating profit. The rationale for updating the
outlook is the weakened consumer confidence caused by the war in Ukraine and its
effects. This has led to a stronger than anticipated contraction in the demand
for used cars in all Kamux's operating countries from March 2022 onwards. The
weakened demand and the measures taken to address the inventory to match the
current demand have also had a negative impact on Kamux's profitability.

Kamux's updated outlook for 2022 is as follows: In 2022, Kamux expects its
revenue to be over EUR 1,000 million. The company expects its adjusted operating
profit to be approximately EUR 23-30 million.

Previously, Kamux expected its revenue to be at least EUR 1,100 million and
adjusted operating profit to increase from the previous year.

News conference

News conference for investors, analysts and media will be held today on Friday,
August 12, 2022 at Sanomatalo, Flik Studio Eliel, 1stfloor, Töölönlahdenkatu 2,
Helsinki at 11:00 EET in English, and at 12:00 noon EET in Finnish. CEO Juha
Kalliokoski and CFO Marko Lehtonen will present the Half Year Report.

The conference can be followed as a live webcast
athttps://kamux.videosync.fi/2022-q2-results(in English)
andhttps://kamux.videosync.fi/2022-q2-tulos(in Finnish).

Participation by conference call:

Finland Toll: +358 981710310
Sweden Toll: +46 856642651
United Kingdom Toll: +44 3333000804
United States Toll: +1 6319131422

PIN: 61465702#

Publication schedule for financial reporting in 2022

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

November 18, 2022: Kamux Corporation will publish its Interim Report for January
-September 2022

For further information, please contact:
CEO Juha Kalliokoski, tel. +358 40 185 8633
CFO Marko Lehtonen, tel. +358 50 575 2006
Head of Communications & IR Katariina Hietaranta, tel. +358 50 557 6765

Kamux Corporation
Communications

Kamux is a retail chain specializing in the sale of used cars and related
integrated services that has grownrapidly. Kamux combines online shopping with
an extensive showroom network to provide its customers with a great service
experience anytime, anywhere. In addition to digital channels, the company has a
total of 78 car showrooms in Finland, Sweden and Germany. Since its founding,
the company has sold over 400,000 used cars, 68,429 of which were sold in 2021.
Kamux's revenue reached EUR 937.4 million in 2021. In 2021, Kamux's average
number of employees was 848 in terms of full-time equivalent employees. Kamux
Corporation is listed on Nasdaq Helsinki Ltd.



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