Kamux Oyj - Interim report (Q1 and Q3)

Kamux Corporation's Interim Report for January 1—March 31, 2024: Revenue grew and adjusted operating profit increased significantly, actions in Sweden are progressing

Kamux Corporation, Interim Report, 17.5.2024 at 9:00

Kamux Corporation's Interim Report for January 1—March 31, 2024: Revenue grew
and adjusted operating profit increased significantly, actions in Sweden are
progressing

This is a summary of Kamux Corporation's Interim Report for January 1—March 31,
2024. The complete report is attached to this release and is also available at
the company website at kamux.com (https://www.kamux.com/en/).

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

January-March in brief

  · Revenue increased by 7.9%, totaling EUR 240.7 million (223.1)
  · Gross profit increased by 17.4% to EUR 24.4 million (20.7), or 10.1% (9.3)
of revenue
  · Adjusted operating profit (EBIT) increased by 227.0% to EUR 2.7 million
(0.8), or 1.1% (0.4) of revenue
  · Operating profit (EBIT) increased by 285.3% to EUR 2.3 million (0.6), or
1.0% (0.3) of revenue
  · The number of cars sold increased by 5.3% to 16,137 cars (15,324)
  · Like-for-like showroom revenue growth was 7.1% (-10.4)
  · Basic and diluted earnings per share were EUR 0.03 (0.00)

Key Figures

EUR million             1−3/2024  1−3/2023  Change, %  1−12/2023
Revenue                    240.7     223.1       7.9%    1,002.1
Gross profit                24.4      20.7      17.4%      102.5
as percentage of           10.1%      9.3%                 10.2%
revenue, %
Operating profit             2.3       0.6     285.3%       15.8
(EBIT)
as percentage of            1.0%      0.3%                  1.6%
revenue, %
Adjusted operating           2.7       0.8     227.0%       18.0
profit*
as percentage of            1.1%      0.4%                  1.8%
revenue, %
Revenue from                13.4      11.5      15.9%       53.0
integrated services
as percentage of            5.5%      5.2%                  5.3%
revenue, %
Number of cars sold       16,137    15,324       5.3%     68,257
Gross profit per sold      1,510     1,354      11.5%      1,502
car, EUR
Sales growth of like        7.1%    -10.4%                  2.9%
-for-like showrooms, %
Net debt                    71.0      68.4       3.9%       53.8
Inventories                136.2     123.1      10.6%      117.2
Inventory turnover,         52.4      56.8      -7.8%       46.9
days
Capital expenditures         1.2       0.4     195.7%        1.8
Average number of            902       845       6.7%        885
employees during the
period
Return on equity            9.9%      6.1%                  8.7%
(ROE), %
Return on investment        6.9%      4.6%                  6.6%
(ROI), %
Equity ratio, %            49.5%     51.2%                 51.9%
Earnings per share,         0.03      0.00        N/A       0.24
basic and diluted, EUR

*) Operating profit adjusted for special items related to strategic planning and
consulting, taxes from previous financial years, own real estate operations and
other items, totaling EUR 0.4 million for the first quarter of 2024 (1−3/2023:
EUR 0.2 million and 1−12/2023: EUR 2.2 million including also special items
related to legal processes,).

CEO Tapio Pajuharju:

"The used car market developed positively in all our operating countries during
the first quarter, and the market seems to be returning to normal. At Kamux, the
good sales momentum in Finland continued. In addition, in Germany our sales
volumes developed favorably.

In Sweden, the market was quite strong, but the corrective actions related to
previously detected misconduct had a significant impact on the turnover of sales
personnel, which is why we were clearly lagging behind the good momentum in the
market. We have succeeded very well in recruiting new sales personnel in Sweden,
and our sales team is already close to the level of 2023. We have also made
significant investments in the onboarding process, and although learning takes
time, we believe that we will have a well-performing sales team in Sweden later
this year. Other corrective measures were also continued in Sweden during the
first quarter, and the full set of corrective actions will be completed
gradually towards the end of the year.

With the positive development in Finland and Germany, the number of cars sold
increased by 5% in the first quarter compared to the first quarter of 2023.
However, the almost 8% increase in revenue relied very heavily on Finland, as we
implemented a planned change in the car offering in Germany to match the Kamux
concept, which led to a lower average revenue per sold car than previously.

Gross profit grew in all countries, compared to the comparison period. There are
several elements behind the positive development in Finland, and the emphasis on
profitability is visible in everything. In Sweden, the positive development of
gross profit is a result of the measures implemented last year. In Germany, we
continue to improve productivity, e.g. by further developing the centralized
processing of cars. Sales and profitability of integrated services developed
favorably. The adjusted operating profit for the first quarter was EUR 2.7
million (EUR 0.8 million). Operating cash flow was EUR -16.2 million.

In March, we published our updated strategy, which is anchored to placing the
customer at the core of all activities and improving operational efficiency.
These measures will help us achieve profitable growth. In addition to financial
targets, an important indicator of the progress of our strategy is the Net
Promoter Score (NPS), measuring the degree of customer referrals, where our long
-term target is 60. In the first quarter of the year, our NPS result was 51,
which is at a very good level within the car industry.

During the past quarter, our strategy implementation progressed according to
plan. In Finland, starting from the capital region, we have upgraded some of our
showrooms to match our new concept. At the beginning of the second quarter,
Finland implemented a merchant model that places the customer at the center of
operations, and we separated Kamux Worx, which focuses on utility vehicles, into
its own business concept. Our new flagship showroom in Lakalaiva, Tampere, has
been finalized in schedule and will have an official opening ceremony at the end
of May. The development of sourcing activities continues, and we have opened the
first new channels during the spring, focusing especially on international
purchasing.

In Sweden, after the change in management, we have focused on clarifying
processes and roles and responsibilities. In addition, we made decisions
regarding updates to our showroom network during the first quarter. During the
summer, the showrooms in Sundsvall and Helsingborg will move to bigger premises
that are a better fit to Kamux's concept, and the unprofitable Norrköping
showroom was closed at the beginning of the second quarter. We will continue the
strong development of the control environment in Sweden and strengthen our
resourcing, e.g. for internal audit during the second quarter.

In Germany, we have focused on changing the car offering to match our concept.
The centralized processing of cars has progressed according to plans. We are
further expanding our geographical coverage in Germany, and we will open a new
showroom in Siershahn during the second quarter. We will also continue to
upgrade the existing showrooms to match our concept, as well as to implement the
measures aimed at improving productivity.

The change in the car trade and the challenges in the sale of new cars have also
been partially reflected in the competitive situation during the first quarter.
As car manufacturers are tightening their grip on the vendor networks, several
dealers focused on representing certain brands have re-evaluated their business
models and either decided to invest in selling used cars or to leave the
industry altogether. Kamux's omnichannel concept is working well even in this
market situation. In Finland, we have strengthened our position as the market
leader in used cars, and even though we have lost some of our market share in
Sweden, at the European level we are still the third-largest operator focused
solely on used cars.

Once again, I would like to offer warm thanks to all Kamux employees for the
good work during the first quarter of 2024. I would also like to thank all our
customers and partners for their trust. We will continue to implement our
strategy according to our plans."

Outlook for the year 2024 (unchanged)

Kamux expects its adjusted operating profit for 2024 to exceed its 2023 adjusted
operating profit, which was EUR 18.0 million.

Significant events after the reporting period

On April 5, 2024, Kamux received a notification pursuant to Chapter 9, Section 5
of the Securities Markets Act (“SMA”), according to which the total holding of
funds (Finnish Fund) managed by Danske Bank A/S (Copenhagen, Denmark) in Kamux
Corporation shares and votes has decreased below five percent on April 4, 2024,
and was 4.95% following the notification.

On April 8, 2024, Kamux announced that Juha Saarinen, the Group's Chief Sourcing
Officer and a member of the Group Management Team, had decided to leave Kamux in
order to pursue a career opportunity outside of Kamux. Saarinen will continue in
his current position until July 8, 2024.

On April 16, 2024, Kamux announced that it had completed the share repurchase
program as announced on March 20, 2024. During March 21-April 16, 2024, Kamux
repurchased in aggregate 135,000 of its own shares at public trading on Nasdaq
Helsinki Ltd. for an average price per share of EUR 5.8361. The total purchase
price paid for the shares was EUR 787,875.71. The share repurchases were based
on the authorization given by the Annual General Meeting of 2023 for the Board
of Directors, and the shares are intended to be used as part of the reward
payments of the long-term incentive plan for the Group's key persons for
2024-2026 and the Green Lions matching share plan for the Group's key employees.
Following the purchases, the Company held a total of 144,053 of its own shares,
which represent approximately 0.36 percent of all shares.

Kamux Corporation's financial reporting in 2024

Publication schedule for Kamux Corporation's financial reporting in 2024 is as
follows:

  · Half-Year Report for January—June 2024
August 16, 2024
  · Interim Report for January—September 2024                         November
8, 2024

News conference

News conference for investors, analysts and media will be held today, Friday,
May 17, 2024, at Sanomatalo, Flik Studio Eliel, 1st floor, Töölönlahdenkatu 2,
Helsinki at 11:00 EEST in English. CEO Tapio Pajuharju and CFO Jukka Havia will
present the Interim Report.

The conference can be followed as a live webcast at
https://kamux.videosync.fi/q1-2024

Participation by conference call:

You can access the teleconference by registering on the link below. After the
registration you will be provided phone numbers and a conference ID to access
the conference. If you wish to ask a question, please dial *5 on your telephone
keypad to enter the queue.

https://palvelu.flik.fi/teleconference/?id=50049835

For more information, please contact:
CEO Tapio Pajuharju, tel. +358 50 577 4200
CFO Jukka Havia, tel. +358 50 355 3757
Head of Communications & IR Katariina Hietaranta, tel. +358 50 557 6765

Kamux Corporation
Communications

Kamux is a retail chain specialized in preowned cars and related integrated
services that has grown rapidly. 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 77 car showrooms in Finland, Sweden and Germany. Since its founding in
Hämeenlinna, Finland, in 2003 the company has sold over 500,000 used cars,
68,257 of which were sold in 2023. Kamux's revenue in 2023 was EUR 1,002 million
and its average number of employees was 885 in terms of full-time equivalent
employees. Kamux Corporation is listed on Nasdaq Helsinki Ltd. For more
information, please visit www.kamux.com (https://www.kamux.com/en/)

Attachments:

04290180.pdf