AUTO1 Group SE — Investor Presentation 2022

Aug 3, 2022

Q2 2022 Earnings Presentation starts soon…

Q2 2022 Earnings Presentation

Disclaimer IMPORTANT NOTICE

For the purposes of this notice, "Presentation" means this document, its contents or any part of it. This Presentation does not, and is not intended to, constitute or form part of, and should not be construed as, an offer to sell, or a solicitation of an offer to purchase, subscribe for or otherwise acquire, any part of it form the basis of or be relied upon in connection with or act as any inducement to enter into any contract or commitment or investment decision whatsoever. This Presentation is neither an advertisement nor a prospectus and should not be relied upon in making any investment decision to purchase, subscribe for or otherwise acquire any securities.

• The information and opinions contained in this Presentation are provided as at the date of this Presentation, are subject to change without notice and do not purport to contain all information that may be required to evaluate AUTO1 Group SE. AUTO1 Group SE undertakes no obligation to update or revise this Presentation. No reliance may or should be placed for any purpose whatsoever on the information contained in this Presentation, or any other information discussed verbally, or on its completeness, accuracy or fairness.
• The information in this Presentation is of preliminary and abbreviated nature and may be subject to updating, revision and amendment, and such information may change materially. Neither AUTO1 Group SE nor any of its directors, officers, employees, agents or affiliates undertakes or is under any duty to update this Presentation or to correct any inaccuracies in any such information which may become apparent or to provide any additional information.
• The Presentation and discussion contain forward looking statements, other estimates, opinions and projections with respect to anticipated future performance of AUTO1 Group SE ("forward-looking statements"). By their nature, forward-looking statements involve significant risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future. forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Similarly, past performance should not be taken as an indication of future results, and nor representation or warranty, express or implied, is made regarding future performance. The development of AUTO1 Group SE's prospects, growth, strategies, the industry in which it operates, and the effect of acquisitions on AUTO1 Group SE may differ materially from those made in or suggested by the forward-looking statements contained in this Presentation or past performance. In addition, even if the development of AUTO1 Group SEs prospects, growth, strategies and the industry in which it operates are consistent with the forward-looking statements contained in this Presentation or past performance, those developments may not be indicative of AUTO1 Group SE results, liquidity or financial position or of results or developments in subsequent periods not covered by this Presentation. Any forward-looking statements only speak as at the date of this Presentation is provided to the recipient and it is up to the recipient to make its own assessment of the validity of any forward-looking statements and assumptions. No liability whatsoever is accepted by AUTO1 Group SE in respect of the achievement of such forward-looking statements and assumptions.

We Are Building the Largest and Most Profitable Car Dealer in the EU

Highlights

Market Overview

Core Market Volumes at Historical Lows, With Germany Below The COVID Bottom in Q2 2020

*Core Markets defined as countries where AUTO1 Group sources cars: Germany, Sweden, Denmark, Netherlands, Poland, Belgium, Austria, Italy, Portugal, France, Spain

AUTO1 is Europe's Used Car Powerhouse Highlights

Our Strategic Goals

• 1. Create Outstanding Customer Experiences
• 1. Leverage our Platform to Gain Market Share

Outstanding Experiences

Since IPO, We Have Consistently Improved Our Customer Satisfaction to Strong and Sustainable Levels

Leveraging our Platform

We Increased Our European Market Share by 37% Year Over Year

¹Sources: official statistics website (open data + country), national car registration office statistics, statistics released by newspapers, estimations made by used car dealers.

Our Financial Goals

• 1. Grow Merchant and Retail Units
• 1. Grow Total Gross Profit
• 1. Execute Plan to Group Profitability

Grow Merchant Units

Our Merchant Business Continues its Solid Growth Track Record

Grow Retail Units

Autohero Substantially Improved its Gross Profit While Growing Units and Revenue

Grow Total Gross Profit

Autohero GPU Hits 2023 IPO Target in Q2 2022, Surpassing Merchant GPU and Setting a New Baseline

Execute Plan to Group Profitability

We Follow a Clear Path to Our Goal of Adjusted EBITDA Profitability by Q4 2023

Current EBITDA	-€47m
Autohero In-House Production	Scale Inhouse Share to 90%
Autohero Marketing	Continue Track of Decreasing Marketing Cost per Unit
Autohero Logistics	Optimize Route Network and Share of Full Truck Loads
Autohero Opex	Rationalise Sales and Operations Efforts
Grow Autohero GPU	Speed up Inventory Turns, Autopricing for Retail, Higher Financing and Product Attach Rates
Grow Merchant GP Base	Grow Faster Than Market, Maintain GPU
Overhead Expenses	Productivity Enhancements
Adjusted EBITDA Q4 2023	Slightly Positive

Execute Plan to Group Profitability

Our Internal Production Centers are a Cornerstone of Our Group Profitability Strategy

Grow Total Gross Profit

Our Inhouse Production Footprint Continues to be on Track

Announced Production Center	Maximum Capacity cars p.a.	Status
Hemau, DE	16,000	Production
Warsaw, PL	18,000	Production
Toledo, ES	21,000	Production
Berlin/Brandenburg, DE	35,000	Production
Pizzale/Oriolo, IT	23,800	Production Start in Q4 2022
	Total Capacity: 113,800

Execute Plan to Group Profitability

We Are Improving Efficiency of Our Marketing Spend

*June 2022 - Among A18-64 next 12 months car buyers (base: aware of each brand), Source: Autohero Brand Tracker by Nielsen

Execute Plan to Group Profitability

Merchant Profitability and Better Retail Unit Economics Will Provide Headroom for Autohero to Scale While We are Self-Funding

Q2 Demonstrated Top-line Growth and Ongoing Cost Control

	Q2 2021	Q3 2021	Q4 2021	FY 2021	Q1 2022	Q2 2022	Q2 YoY
Cars Sold, #k	143	157	167	597	170	166	16.4%
Merchant: C2B	116	127	132	481	131	127	9.3%
Merchant: Remarketing	18	19	21	74	24	23	29.6%
Retail (Autohero)	8.4	11.3	13.9	41.4	14.6	15.8	87.4%
Revenue (EUR million)	1,065.1	1,260.2	1,550.2	4,775.0	1,637.9	1,737.2	63.1%
Merchant: C2B	799.0	933.1	1,140.9	3,544.7	1,150.6	1,234.9	54.5%
Merchant: Remarketing	152.0	167.3	200.7	651.3	242.9	232.4	52.9%
Retail (Autohero)	114.1	159.8	208.6	579.0	244.4	269.9	136.5%
Gross Profit (EUR million)	99.3	116.3	128.9	430.9	124.0	126.4	27.3%
GPU (EUR)	696	743	772	-	731	761	9.4%
Merchant GPU	717	772	804	-	732	732	2.2%
Retail (Autohero) GPU	363	365	418	-	718	1,035	185.4%
Opex	(122)	(141)	(174)	(538)	(172)	(173)	41.8%
Adjusted EBITDA (EUR million)	(22.9)	(24.7)	(45.2)	(107.1)	(47.6)	(46.8)	104.4%
Adjusted EBITDA Margin	(2.1%)	(2.0%)	(2.9%)	(2.2%)	(2.9%)	(2.7%)	(0.6pp)

Differences may exist due to rounding

OPEX includes employee expenses, other operating expenses less other operating income and less separately disclosed items

Execute Plan to Group Profitability

We Maintain a Strong Balance Sheet with no Corporate Debt, to Enable our Path to Profitability

Guidance Update

Not Checked

We Narrow Our Financial Targets for 2022, Reflecting Our Path to Profitability

Thanks

Appendix

25

Group Appendix

	Q2 2021	Q3 2021	Q4 2021	FY 2021	Q1 2022	Q2 2022	Q2 YoY
Units Sold	142,715	156,530	166,949	596,731	169,610	166,147	16.4%
Revenue (€m)	1,065.1	1,260.2	1,550.2	4,775.0	1,637.9	1,737.2	63.1%
ASP (€)	7,463	8,051	9,285	-	9,657	10,456	40.1%
Gross Profit (€m)	99.3	116.3	128.9	430.9	124.0	126.4	27.3%
GPU (€)	696	743	772	-	731	761	9.4%
GP Margin	9.3%	9.2%	8.3%	9.0%	7.6%	7.3%	(21.5%)
Opex (€m)	(122)	(141)	(174)	(538)	(172)	(173)	41.8%
o/w Employee Costs pre SDI (€m)	(54.4)	(55.4)	(64.8)	(225.3)	(72.9)	(78.3)	43.9%
o/w Marketing Expenses (€m)	(46.3)	(57.5)	(66.8)	(203.3)	(56.27)	(53.7)	16.0%
o/w Internal Logistics (€m)	(12.6)	(15.5)	(18.5)	(58.0)	(19.6)	(18.9)	50.0%
Adjusted EBITDA (€m)	(22.9)	(24.7)	(45.2)	(107.1)	(47.6)	(46.8)	104.4%
Adjusted EBITDA Margin	(2.1%)	(2.0%)	(2.9%)	(2.2%)	(2.9%)	(2.7%)	(0.6pp)

Segment: Merchant Appendix

	Q2 2021	Q3 2021	Q4 2021	FY 2021	Q1 2022	Q2 2022	Q2 YoY
Units Sold	134,300	145,255	153,074	555,351	155,052	150,377	12.0%
Thereof C2B	116,367	126,647	132,036	481,190	131,401	127,134	9.3%
Thereof Remarketing	17,933	18,608	21,038	74,161	23,651	23,243	29.6%
Revenue (€m)	951.0	1,100.3	1,341.6	4,196.0	1,393.5	1,467.3	54.3%
Thereof C2B (€m)	799.0	933.1	1,140.9	3,544.7	1,163.9	1,234.9	54.5%
Thereof Remarketing (€m)	152.0	167.3	200.7	651.3	229.6	232.3	52.9%
ASP (€)	7,081	7,575	8,764	-	8,987	9,757	37.8%
Thereof C2B (€)	6,866	7,368	8,641	-	8,858	9,713	41.5%
Thereof Remarketing (€)	8,474	8,990	9,541	-	9,708	9,999	18.0%
Gross Profit (€m)	96.2	112.2	123.1	415.9	113.5	110.1	14.4%
GPU (€)	717	772	804	-	732	732	2.2%
GP Margin	10.1%	10.2%	9.2%	9.9%	8.1%	7.5%	(2.6pp)

Segment: Retail (Autohero) Appendix

	Q2 2021	Q3 2021	Q4 2021	FY 2021	Q1 2022	Q2 2022	Q2 YoY
Units Sold	8,415	11,275	13,875	41,380	14,558	15,770	87.4%
Revenue (€m)	114.1	159.8	208.6	579.0	244.44	269.9	136.5%
ASP (€)	13,565	14,174	15,032	-	16,791	17,113	26.2%
Gross Profit (€m)	3.1	4.1	5.8	15.0	10.45	16.3	434.4%
GPU (€)	363	365	418	-	718	1,035	185.4%
GP Margin	2.7%	2.6%	2.8%	2.6%	4.3%	6.1%	3.4pp