Quarterly Report • Nov 16, 2015
Quarterly Report
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Delticom is Europe's leading online tyre retailer. Founded in 1999, the Hanover-based company has more than 200 online shops in 41 countries, among others ReifenDirekt, in UK and in France, as well as the Tirendo shops which enjoy a high level of recognition, not least due to its brand ambassador, Sebastian Vettel. Delticom offers a wide range of products for its private and business customers: more than 25,000 models from over 100 tyre brands for cars, motorcycles, commercial vehicles and buses, but also complete wheels. More than 200,000 car parts, including motor oil, replacement parts and accessories, complement the product portfolio.
Customers enjoy all the advantages of modern E-Commerce: convenience in order placing, quick, efficient delivery, clear cost information and, last but not least, low prices. The products are delivered in two business days to any address the customer chooses. Alternatively, Delticom delivers the tyres to one of more than 42,000 service partners (9,500 in Germany alone) for professional fitting directly on to the customer's vehicle at a reasonable price.
| Key Figures | 01.01.2015 | 01.01.2014 | –/+ | |
|---|---|---|---|---|
| – 30.09.2015 | – 30.09.2014 | (%, %p) | ||
| Revenues | € million | 354.2 | 314.1 | +12.7 |
| Total income | € million | 366.4 | 322.7 | +13.6 |
| 1 Gross margin |
% | 23.9 | 25.2 | –1.2 |
| 2 Gross profit |
€ million | 84.8 | 79.1 | +7.3 |
| EBITDA | € million | 8.6 | 8.0 | +7.3 |
| EBITDA margin | % | 2.4 | 2.5 | –0.1 |
| EBIT | € million | 1.6 | 1.8 | –10.3 |
| Net income | € million | 0.6 | –0.9 | –165.1 |
| 3 Earnings per share |
€ | 0.05 | –0.08 | –166.4 |
| Total assets | € million | 214.4 | 231.7 | –7.5 |
| Inventories | € million | 99.5 | 117.4 | –15.2 |
| 4 Investments |
€ million | 2.0 | 1.3 | +56.2 |
| 5 Capital Employed |
€ million | 61.8 | 67.7 | –8.8 |
| 6 Return on Capital Employed |
% | 2.6 | 2.7 | 0.0 |
| Equity | € million | 48.2 | 46.5 | +3.7 |
| Equity ratio | % | 22.5 | 20.1 | +2.4 |
| Return on equity | % | 1.2 | –1.9 | +3.2 |
| 7 Liquidity position |
€ million | 23.1 | 24.7 | –6.6 |
| Operating cash flow | € million | –8.4 | 4.6 | |
| 8 Free cash flow |
€ million | –10.4 | 3.3 |
(1) Gross profit ex other operating income in % of revenues
(2) Gross profit ex other operating income
(3) Undiluted
(4) Investments in tangible and intangible assets
(5) Capital Employed = total assets – current liabilities
(6) ROCE = EBIT / Capital Employed
(7) Liquidity position = cash and cash equivalents + liquidity reserve
(8) Free cash flow = Operating cash flow – Cashflow from investing activities
Macroeconomic developments There has been a further downturn in the global economic outlook over the past few months, after China and other emerging markets reported weak growth figures.
Bolstered by the low oil price and the European Central Bank's (ECB) loose monetary policy, the eurozone remained on course for recovery at a moderate tempo in the third quarter. There has also been further improvement in the employment situation, although the rate of unemployment still varies hugely between European Union member states. Correspondingly, spending among European consumers is also just as varied.
In Germany, private consumption is a key pillar to economic development; however, given the uncertainty in key sales markets, German companies are reluctant to invest.
Development of the tyre market The negative trend observed in the first half of the year with a decline in replacement tyre business continued into the third quarter. According to industry association, summer tyre sales in Germany were down by 9.3-% in 9M-15 while winter tyre sales to consumers decreased by 3.4-%.
Group Delticom, Europe's leading online tyre retailer, generates the bulk of its revenues through sales of replacement tyres for cars, motorcycles, trucks and industrial vehicles.
In 9M-15 the company recognized revenues of €-354.2-million, an increase of 12.7-% after €-314.1-million in the prior-year period.
E-Commerce Revenues in the E-Commerce division with its 202 online shops increased yearon-year by 13.2-%, from €-307.2-million to €-347.7-million. The share of divisional revenues amounted to 98.2-%, compared to 97.8-% in the previous year.
Customer numbers In the reporting period, Delticom group acquired a total of 717-thousand new customers (9M-14: 670 thousand, +7%). In the course of the financial year 2014, Delticom modified the way in which it calculates its customer numbers. As a consequence, the previous year's figure differs from the figures stated in the 9 monthly report 2014. At Group level, only customers who make a purchase from a Delticom Group shop for the first time in the reporting period are considered as new customers. In addition, 643-thousand (9M-14: 527 thousand, +22-% based on new calculation methodology) existing customers bought their tyres in 9M-15 from the Delticom Group, again. If customers have already made a purchase at a Delticom Group in the past, they are automatically regarded as existing customers at the Group from their second purchase onwards.
Seasonality The chart Revenues trend summarises the development of the quarterly revenues.
quarterly revenues in € million
Group revenues in Q1-15 amounted to €-111.3-million (Q1-14: €-94.3-million), an increase of 18.1-%.
Delticom managed to generate growth and buck the market trend in the second quarter, too. Following Q2-15 revenues of €-138.8-million (+5.3-%), consolidated group revenues on a half-year basis increased by 10.7-% year on year to a total of €-250.2-million. In the third quarter, the company generated revenues of €-104.0-million (Q3-14: €-88.1-million, +18.1-%). Q3-15 revenues in the E-Commerce division were up year-on-year by 18.0-%, amounting to €-101.2-million.
Regional split The group offers its product range in 41 countries. In 9M-15 revenues in EU countries totalled €-272.9-million (+14.7-%). Across all non-EU countries the revenue contribution for 9M-15 was €-81.3-million (9M-14: €-76.2-million, 6.7-%).
Revenues by region
| in € thousand | ||||||||
|---|---|---|---|---|---|---|---|---|
| 9M15 | % | +% | 9M14 | % | +% | 9M13 | % | |
| Revenues | 354,186 | 100.0 | 12.7 | 314,148 | 100.0 | 1.6 | 309,062 | 100.0 |
| Regions | ||||||||
| EU | 272,852 | 77.0 | 14.7 | 237,952 | 75.7 | 2.7 | 231,789 | 75.0 |
| Rest | 81,334 | 23.0 | 6.7 | 76,196 | 24.3 | –1.4 | 77,273 | 25.0 |
Cost of goods sold The cost of goods sold (COGS) is the largest expense item; it considers the purchase price of sold tyres. Group COGS increased by +14.6-% from €-235.1-million in 9M-14 to €-269.4-million in 9M-15. The E-Commerce division accounted for €-263.5-million (9M-14: €-228.8-million, +15.2-%). Personnel expenses On 30.09.2015, the company had a total of 145 employees (30.09.2014: 257). In the reporting period on average 148 staff members were employed at Delticom group (9M-14: 266). Personnel expenses amounted to €-7.3-million (9M-14: €-11.4-million, –36.2-%). This decrease is mainly due to the significant workforce reduction at Tirendo. The 9M-15 personnel expenses ratio stood at 2.1-% (staff expenditures as percentage of revenues, 9M-14: 3.6-%). Transportation costs Among the other operating expenses, transportation costs is the largest line item. They rose in the reporting period from €-28.1-million to €-34.1-million. The 21.4-% increase comes along with the sales country-mix and the higher business volume. The share of transportation costs against revenues went up from 8.9-% in 9M-14 to 9.6-% in 9M-15. Warehousing costs Rents and overheads increased in 9M-15 by 5.4-%, from €-5.3-million to €-5.6-million. As a result of the higher business volume, stocking costs increased by 14.9-% from €-3.0-million in 9M-14 to €-3.5-million. Marketing costs For the year so far, marketing expenses grew by 3.0-% to €-15.9-million (9M-14: €-15.4-million), equating to a ratio of 4.5-% (9M-14: 4.9-%). To push an early start into the winter season, marketing spent in Q3-15 was increased from €-3.8-million to €-5.2-million. As a result, Q3-15 marketing expense ratio with 5.0-% of revenues was higher than last year's 4.4-%. Depreciation Depreciation for 9M-15 rose by 12.6-% from €-6.2-million to €-6.9-million. This increase was essentially due to extraordinary depreciation on property, plant and equipment in H1-15, which was required in relation to preparations for the closure of the Lehrte warehouse at the end of the current financial year.
Gross margin 9M-15 gross margin came in with 23.9-%, after 25.2-% in 9M-14. The quarterly gross margin decreased from 26.1-% in Q3-14 to 25.9-%. Other operating income Other operating income increased in 9M-15 by 43.3-% to €-12.2-million (9M-14: €-8.5-million), thereof gains from exchange rate differences to the order of €-3.0-million (9M-14: €-2.1-million). FX losses have to be accounted for as line
item in the other operating expenses (9M-15: €-3.6-million, 9M-14: €-1.6-million).
For the nine months the balance of FX income and losses totalled €-–542.9-thousand (9M-14: €-415.5-thousand).
Gross profit Altogether, the gross profit increased in the reporting period by 10.8-% year-onyear, from €-87.6-million to €-97.0-million. Gross profit in relation to total income of €-366.4-million (9M-14: €-322.7-million) amounted to 26.5-% (9M-14: 27.1-%).
EBITDA Earnings before interest, taxes, depreciation and amortization (EBITDA) for the reporting period came in at €-8.6-million (9M-14: €-8.0-million, +7.3-%). This equates to an EBITDA margin of 2.4-% (9M-14: 2.5-%). EBITDA in the third quarter amounted to €-2.0-million, after €-1.8-million in Q3-14 (+10.4-%). Quarterly EBITDA margin stood at 1.9-% (Q3-14: 2.0-%).
quarterly, in € million
The tax rate in the reporting period also diverges from the normal tax rate of the Delticom Group. This effect is due to non-deductible losses resulting from the sale of all shares in Tyrepac Pte. Ltd., Singapore and additions under trade tax law.
Net income Consolidated net income totalled €-0.6-million after €-–0.9-million in 9M-14. Net income for Q3-15 amounted to €-–0.1-million (Q3-14: €-–0.7-million). For the nine months, earnings per share (EPS) were €-0.05 (undiluted, 9M-14: €-–0.08).
The table Abridged P+L statement summarises key income and expense items from multiple years' profit and loss statements.
in € thousand
| 9M15 | % | +% | 9M14 | % | +% | 9M13 | % | |
|---|---|---|---|---|---|---|---|---|
| Revenues | 354,186 100.0 | 12.7 | 314,148 100.0 | 1.6 | 309,062 100.0 | |||
| Other operating income | 12,197 | 3.4 | 43.3 | 8,513 | 2.7 144.7 | 3,479 | 1.1 | |
| Total operating income | 366,383 103.4 | 13.6 | 322,661 102.7 | 3.2 | 312,541 101.1 | |||
| Cost of goods sold | –269,382 | –76.1 | 14.6 –235,084 | –74.8 | 0.4 –234,055 | –75.7 | ||
| Gross profit | 97,001 | 27.4 | 10.8 | 87,577 | 27.9 | 11.6 | 78,486 | 25.4 |
| Personnel expenses | –7,262 | –2.1 | –36.2 | –11,385 | –3.6 | 63.6 | –6,961 | –2.3 |
| Other operating expenses | –81,179 | –22.9 | 19.0 | –68,216 | –21.7 | 14.5 | –59,560 | –19.3 |
| EBITDA | 8,560 | 2.4 | 7.3 | 7,975 | 2.5 | –33.3 | 11,966 | 3.9 |
| Depreciation | –6,929 | –2.0 | 12.6 | –6,155 | –2.0 174.1 | –2,246 | –0.7 | |
| EBIT | 1,632 | 0.5 | –10.3 | 1,820 | 0.6 | –81.3 | 9,720 | 3.1 |
| Net financial result | –311 | –0.1 | –50.1 | –624 | –0.2 1705.2 | –35 | 0.0 | |
| EBT | 1,320 | 0.4 | 10.4 | 1,196 | 0.4 | –87.7 | 9,685 | 3.1 |
| Income taxes | –732 | –0.2 | –65.1 | –2,099 | –0.7 | –40.6 | –3,535 | –1.1 |
| Consolidated net income | 588 | 0.2 –165.1 | –903 | –0.3 –114.7 | 6,151 | 2.0 |
As of 30.09.2015 the balance sheet total amounted to €-214.4-million (31.12.2014: €-164.0-million).
Payables In the wake of the inventory build-up, the accounts payable increased from €-75.9-million at the beginning of the year by €-33.6-million to €-109.5-million (30.09.2014: €-117.8-million). This corresponds to a share of 51.1-% of the balance sheet total (31.12.2014: 46.3-%, 30.09.2014: 50.8-%).
in € thousand
| 30.09.15 | % | +% | 31.12.14 | % | 31.12.13 | % | |
|---|---|---|---|---|---|---|---|
| Assets | |||||||
| Non-current assets | 53,520 | 25.0 | –7.9 | 58,135 | 35.4 | 66,698 | 37.7 |
| Fixed assets | 51,686 | 24.1 | –9.2 | 56,952 | 34.7 | 64,368 | 36.4 |
| Other non-current assets | 1,834 | 0.9 | 55.0 | 1,183 | 0.7 | 2,330 | 1.3 |
| Current assets | 160,860 | 75.0 | 51.9 | 105,872 | 64.6 | 110,322 | 62.3 |
| Inventories | 99,519 | 46.4 | 77.2 | 56,151 | 34.2 | 72,841 | 41.1 |
| Receivables | 38,253 | 17.8 | 93.7 | 19,745 | 12.0 | 26,158 | 14.8 |
| Liquidity | 23,088 | 10.8 –23.0 | 29,975 | 18.3 | 11,323 | 6.4 | |
| Securities | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 | |
| Cash and cash equivalents | 23,088 | 10.8 –23.0 | 29,975 | 18.3 | 11,323 | 6.4 | |
| Assets | 214,381 100.0 | 30.7 | 164,007 100.0 | 177,020 100.0 | |||
| Equity and Liabilities | |||||||
| Long-term funds | 61,757 | 28.8 | –7.7 | 66,943 | 40.8 | 64,635 | 36.5 |
| Equity | 48,177 | 22.5 | –4.2 | 50,293 | 30.7 | 51,679 | 29.2 |
| Long-term debt | 13,580 | 6.3 –18.4 | 16,651 | 10.2 | 12,957 | 7.3 | |
| Provisions | 315 | 0.1 –10.4 | 351 | 0.2 | 252 | 0.1 | |
| Liabilities | 13,265 | 6.2 –18.6 | 16,300 | 9.9 | 12,704 | 7.2 | |
| Short-term debt | 152,623 | 71.2 | 57.2 | 97,064 | 59.2 | 112,385 | 63.5 |
| Provisions | 4,830 | 2.3 104.1 | 2,367 | 1.4 | 2,028 | 1.1 | |
| Liabilities | 147,793 | 68.9 | 56.1 | 94,698 | 57.7 | 110,357 | 62.3 |
| Working capital | The net working capital on 30.09.2015 amounted to €-4.8-million (30.09.2014: €-9.1-million). Since the beginning of the year, working capital has grown by €-17.4-million (31.12.2014: €-–12.5-million). |
|---|---|
| Liquidity position | Liquidity (cash and cash equivalents plus liquidity reserve) as of 30.09.2015 totalled €-23.1-million (30.09.2014: €-24.7-million, 31.12.2014: €-29.9-million). The company's net cash position amounted to €-9.8-million (liquidity less liabilities from current accounts, 30.09.2014: €-–3.2-million). |
| Cash flow | |
| Operating cash flow | Mainly due to more funds tied up in net working capital, the cash flow from ordi nary business activities of €-–8.4-million for the period under review was lower than last year (9M-14: €-4.6-million). |
| Investments | In the reporting period Delticom invested €-0.7-million into property, plant and equipment, after €-0.5-million the previous year. Investments into intangible as sets in 9M-15 amounted to €-0.9-million (9M-14: €-0.8-million). Further |
€-0.5-million (9M-14: €-0.0-million) were invested into financial assets. In total,
the cash flow from investments was €-–2.0-million, after €-–1.3-million the previous year.
Financing activities In the reporting period, Delticom recorded a cash flow from financing activities amounting to €-2.8-million, thereof the dividend payout for the last financial year of €-3.0-million and disbursements due to redemption of loans of €-2.6-million. The cash outflow was offset by inflows from shortterm financial liabilities of €-8.5-million.
Based on the cash flow, the chart Liquidity Bridge illustrates how the liquidity position changed in the trailing 12 months.
Legal structure The following section lists the subsidiaries that are fully consolidated in the consolidated financial statements as of 30.09.2015:
Price Genie LLC, California (USA)
Reife tausend1 GmbH, Hanover (Germany)
An overview of all not-consolidated subsidiaries can be found in the notes.
Sascha Jürgensen resigned from the Executive Board with effect from 20th October 2015.
As a company that operates internationally, Delticom is exposed to varying types of risk. In order to be able to identify, evaluate and respond to such risks in a timely fashion, Delticom put in place a risk management system early on. The system is based on corporate guidelines for the early risk detection and risk management. An outline of the risk management process is presented in the Annual Report for fiscal year 2014 on pages 46ff, together with a list of key individual risks.
Compared to the Annual Report 2014, the risk situation has not changed materially. Individual risks endangering the company do not exist, and considered together, the aggregate risk does not pose any danger to Delticom's going concern.
| Economic environment | Weaker growth in China and emerging markets has dampened the overall global economic outlook. The International Monetary Fund (IMF) recently lowered its growth forecast for the current calendar year and for 2016. The eurozone is ex pected to remain on course for moderate growth in the coming months, helped in part by the weaker euro. Low oil prices should bolster private consumption and companies' willingness to invest; however, persistently weak rates of inflation in the eurozone are fuelling fears of deflation. In response, the ECB is considering expanding or prolonging its bond-buying programme in an effort to stimulate economic growth and eurozone inflation. |
|---|---|
| In Germany, a robust employment market continues to support private consump tion. Domestic demand remains the cornerstone of economic development here; however, uncertainty surrounding foreign demand is leading many economic ex perts to take on a less-optimistic view of the coming months. |
|
| Tyre retail | According to industry associations, car tyre sales in the first nine months of the year were down nearly 8-% year on year. The onset of colder temperatures appears to have kick-started tyre-changing business in many areas in October, raising hopes of an increase in sales in the final quarter. It remains to be seen whether winter business will be able to even out the accumulative decline in sales over the first three quarters. |
Until the end of the year, Delticom will continue to pursue its aim of increasing sales volumes year on year and reducing inventories as planned. If unit sales increase to a greater extent than revenues, a rise in sales will not necessarily lead to an increase in earnings due to higher volume-related costs.
Management therefore confirms the full-year guidance for earnings before interest, taxes, depreciation and amortisation (EBITDA). Delticom is still aiming to at least match EBITDA of the 2014 financial year in absolute terms (€ 15.3 million).
Drivers all over the world are discovering the benefits of buying their tyres online from one of Delticom's online stores. Management therefore continues to anticipate the acquisition of over one million new customers for the Delticom Group in 2015 as a whole.
| 01.01.2015 | 01.01.2014 | 01.07.2015 | 01.07.2014 | |
|---|---|---|---|---|
| in € thousand | – 30.09.2015 | – 30.09.2014 | – 30.09.2015 | – 30.09.2014 |
| Revenues | 354,186 | 314,148 | 104,019 | 88,082 |
| Other operating income | 12,197 | 8,513 | 3,928 | 2,411 |
| Total operating income | 366,383 | 322,661 | 107,947 | 90,494 |
| Cost of goods sold | –269,382 | –235,084 | –77,047 | –65,118 |
| Gross profit | 97,001 | 87,577 | 30,900 | 25,376 |
| Personnel expenses | –7,262 | –11,385 | –2,748 | –3,685 |
| Depreciation of intangible assets and property, plant and equipment |
–6,929 | –6,155 | –1,741 | –2,033 |
| Other operating expenses | –81,179 | –68,216 | –26,173 | –19,899 |
| Earnings before interest and taxes (EBIT) | 1,632 | 1,820 | 238 | –240 |
| Financial expenses | –329 | –655 | –114 | –206 |
| Financial income | 18 | 31 | 5 | 8 |
| Net financial result | –311 | –624 | –109 | –198 |
| Earnings before taxes (EBT) | 1,320 | 1,196 | 129 | –438 |
| Income taxes | –732 | –2,099 | –268 | –286 |
| Consolidated net income | 588 | –903 | –139 | –725 |
| Thereof allocable to: | ||||
| Non-controlling interests | –13 | 1 | 2 | 1 |
| Shareholders of Delticom AG | 601 | –902 | –141 | –724 |
| Earnings per share (basic) | 0.05 | –0.08 | –0.01 | –0.06 |
| Earnings per share (diluted) | 0.05 | –0.08 | –0.01 | –0.06 |
| 01.01.2015 | 01.01.2014 | 01.07.2015 | 01.07.2014 | |
|---|---|---|---|---|
| in € thousand | – 30.09.2015 | – 30.09.2014 | – 30.09.2015 | – 30.09.2014 |
| Consolidated Net Income | 588 | –902 | –139 | –725 |
| Changes in the financial year recorded directly in equity | ||||
| Income and expense that will be reclassified to the statement | ||||
| of income at a later date | ||||
| Changes in currency translation | 410 | 240 | –72 | 183 |
| Net Investment Hedge Reserve | ||||
| Changes in current value recorded directly in equity | –45 | –113 | –4 | –111 |
| Deferred taxes relating to Net Investment Hedge Reserve | –44 | 36 | –116 | 35 |
| Other comprehensive income for the period | 335 | 188 | 8 | 131 |
| Total comprehensive income for the period | 924 | –715 | –131 | –593 |
| Attributable to non-controlling interests | 51 | 25 | 1 | 25 |
| Attributable to shareholders of the parant | 872 | –739 | –132 | –617 |
| in € thousand | 30.09.2015 | 31.12.2014 |
|---|---|---|
| Non-current assets | 53,520 | 58,135 |
| Intangible assets | 44,463 | 47,949 |
| Property, plant and equipment | 6,713 | 8,978 |
| Financial assets | 510 | 25 |
| Deferred taxes | 1,327 | 705 |
| Other receivables | 507 | 478 |
| Current assets | 160,860 | 105,872 |
| Inventories | 99,519 | 56,151 |
| Accounts receivable | 25,358 | 14,489 |
| Other current assets | 10,969 | 4,707 |
| Income tax receivables | 1,927 | 549 |
| Cash and cash equivalents | 23,088 | 29,975 |
| Assets | 214,381 | 164,007 |
| in € thousand | 30.09.2015 | 31.12.2014 |
|---|---|---|
| Equity | 48,177 | 50,293 |
| Equity attributable to Delticom AG shareholders | 47,149 | 49,305 |
| Subscribed capital | 11,995 | 11,945 |
| Share premium | 25,371 | 25,372 |
| Other components of equity | 451 | 128 |
| Retained earnings | 200 | 200 |
| Net retained profits | 9,132 | 11,659 |
| Non-controlling interests | 1,028 | 988 |
| Liabilities | 166,203 | 113,715 |
| Non-current liabilities | 13,580 | 16,651 |
| Long-term borrowings | 12,813 | 15,367 |
| Non-current provisions | 315 | 351 |
| Deferred tax liabilities | 453 | 933 |
| Current liabilities | 152,623 | 97,064 |
| Provisions for taxes | 1,206 | 845 |
| Other current provisions | 3,624 | 1,521 |
| Accounts payable | 109,511 | 75,920 |
| Short-term borrowings | 12,927 | 4,424 |
| Other current liabilities | 25,356 | 14,354 |
| Shareholders' equity and liabilities | 214,381 | 164,007 |
| 01.01.2015 | 01.01.2014 | |
|---|---|---|
| in € thousand | – 30.09.2015 | – 30.09.2014 |
| Earnings before interest and taxes (EBIT) | 1,632 | 1,820 |
| Depreciation of intangible assets and property, plant and equipment | 6,929 | 6,155 |
| Changes in other provisions | 2,067 | –536 |
| Net gain on the disposal of assets | –64 | 5 |
| Changes in inventories | –43,367 | –44,527 |
| Changes in receivables and other assets not allocated to | ||
| investing or financing activity | –16,884 | –3,667 |
| Changes in payables and other liabilities not allocated to | ||
| investing or financing activity | 44,424 | 45,446 |
| Interest received | 18 | 31 |
| Interest paid | –329 | –423 |
| Income tax paid | –2,852 | 327 |
| Cash flow from operating activities | –8,427 | 4,632 |
| Proceeds from the disposal of property, plant and equipment | 64 | 0 |
| Payments for investments in property, plant and equipment | –661 | –490 |
| Payments for investments in intangible assets | –898 | –812 |
| Payments for investments in financial assets | –485 | –15 |
| Cash flow from investing activities | –1,979 | –1,316 |
| Dividends paid by Delticom AG | –2,986 | –5,930 |
| Payments from additions to capital | 0 | 1,215 |
| Capital transactions with non-controlling interests | –127 | 220 |
| Cash inflow of financial liabilities | 8,503 | 15,029 |
| Cash outflow of financial liabilities | –2,554 | –900 |
| Cash flow from financing activities | 2,836 | 9,635 |
| Changes in cash and cash equivalents due to currency translation | 410 | 240 |
| Cash and cash equivalents at the start of the period | 29,975 | 11,323 |
| Changes in cash and cash equivalents | –7,015 | 13,216 |
| Changes in consolidation scope | 127 | 0 |
| Cash and cash equivalents - end of period | 23,088 | 24,538 |
| 01.01.2015 | 01.01.2014 | |
|---|---|---|
| in € thousand | – 30.09.2015 | – 30.09.2014 |
| Liquidity – start of period | 29,927 | 11,500 |
| Changes in cash and cash equivalents | –7,015 | 13,216 |
| Liquidity – end of period | 23,088 | 24,716 |
| Net Cash – start of period | 10,137 | –21,197 |
| Changes in cash and cash equivalents | –7,015 | 13,216 |
| Changes in financial liabilities | –5,949 | –14,129 |
| Net Cash – end of period | –2,827 | –22,110 |
| Net cash refer to short term financial liabilities: | ||
| Net Cash – start of period | 25,326 | –10,337 |
| Changes in cash and cash equivalents | –7,015 | 13,216 |
| Changes in short term financial liabilities | –8,503 | –6,050 |
| Net Cash – end of period | 9,808 | –3,171 |
| Net cash refer to long term financial liabilities: | ||
| Net Cash – start of period | 14,383 | 285 |
| Changes in cash and cash equivalents | –7,015 | 13,216 |
| Changes in long term financial liabilities | 2,554 | –8,079 |
| Net Cash – end of period | 9,923 | 5,422 |
| Net Invest | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Sub | Reserve from | ment | Net | Non-con | |||||
| scribed | Share | currency | Hedge | Retained | retained | trolling in | Total | ||
| in € thousand | capital | premium | translation | Reserve | earnings | profits | Total | terests | equity |
| as of 1 January 2014 | 11,859 | 24,446 | –181 | 31 | 200 | 15,324 | 51,679 | 0 | 51,679 |
| Shares of capital increase | 86 | 86 | 86 | ||||||
| Capital increase of issue new shares |
1,129 | 1,129 | 1,129 | ||||||
| Transactions between | |||||||||
| controlling and non-con | –76 | 0 | –76 | –76 | |||||
| trolling shareholders | |||||||||
| Dividends paid | –5,930 | –5,930 | –5,930 | ||||||
| Net income | –902 | –902 | 1 | –902 | |||||
| Other comprehensive in | 240 | –77 | 163 | 25 | 188 | ||||
| come | |||||||||
| Total comprehensive |
240 | –77 | –902 | –739 | 25 | –714 | |||
| income | |||||||||
| as of 30 September 2014 |
11,945 | 25,500 | 59 | –47 | 200 | 8,491 | 46,149 | 322 | 46,470 |
| as of 1 January 2015 | 11,945 | 25,372 | 115 | 13 | 200 | 11,659 | 49,305 | 988 | 50,293 |
| Shares of capital increase | 50 | 50 | 50 | ||||||
| Capital increase of issue | |||||||||
| new shares | –1 | –1 | –1 | ||||||
| Dividends paid | –2,986 | –2,986 | –2,986 | ||||||
| Net income | 601 | 601 | –13 | 588 | |||||
| Other comprehensive in | 410 | –89 | –140 | 181 | 53 | 234 | |||
| come | |||||||||
| Total comprehensive income |
410 | –89 | 461 | 782 | 40 | 822 | |||
| as of 30 September 2015 |
11,995 | 25,371 | 525 | –76 | 200 | 9,134 | 47,149 | 1,028 | 48,177 |
Delticom, Europe's leading online tyre retailer, was founded in Hanover in 1999. With 202 online shops in 41 countries, the company offers its private and business customers a broad assortment of car tyres, motorcycle tyres, truck tyres, bus tyres, special tyres, bicycle tyres, rims, complete wheels (pre-mounted tyres on rims), selected replacement car parts and accessories, motor oil and batteries. Further information about the reporting company can be found in the chapter Business Operations and in the chapter Organisation of the annual report 2014.
From 01.01.2015 to 30.09.2015 Delticom had an average of 148 employees (thereof 11 apprentices and interns). The calculation is based on full-time equivalents, thus taking into account the actual work hours.
In many countries, business with car replacement tyres depends to a large extent on the seasons with their different weather and road conditions. For example, the business in the northern parts of Europe and in German-speaking countries is characterized by two peak periods - the purchase of summer tyres in spring and winter tyres in early winter. Volume is generally weaker in the first quarter, as most winter tyres are bought and fitted with the first snow, and thus before the end of the year. The second quarter is characterized by strong sales: the weather in April and May is usually quite warm and car drivers buy their new summer tyres.
The third quarter is a transitional quarter between the summer and winter business, with unit sales again being somewhat weaker. In most European countries, the last quarter generates the highest sales as car drivers face difficult road conditions and become aware of the fact that they need new tyres. Due to the seasonality, differences in performance between quarters and year-over-year are unavoidable.
Delticom's consolidated interim financial statements as of 30.09.2015 were prepared according to the International Financial Reporting Standards (IFRS), as prescribed by the International Accounting Standards Board (IASB), that were mandatory according to the European Union (EU) Directive. All applicable and mandatory IFRS standards on the balance sheet date were applied, especially IAS 34 (Interim Financial Reporting).
To the extent that there were no changes to standards requiring first-time application, the accounting, valuation and calculation methods explained in the 2014 Consolidated Financial Statements have also been applied in this set of interim financial statements, and apply correspondingly.
These interim financial statements contain all clarifications and information required for annual financial statements, and can therefore be read in conjunction with the annual financial statements as of 31.12.2014.
The Annual Report 2014 is made available on the Delticom website in the section Investor Relations or can be downloaded directly using the following link:
The fair value of the financial instruments corresponds to the book value in respect of all balance sheet items. The financial instruments in the following categories have been assigned to Level 2 of the fair value hierarchy: Financial assets available for sale amounting to € 848 thousand (31.12.2014: € 833 thousand), Financial assets held for trading amounting to € 94 thousand (31.12.2014: € 63 thousand) and Financial liabilities held for trading amounting to € 5 thousand (31.12.2014: € 3 thousand).
Effective as of 31.07.2015, Delticom AG fully sold its majority share in Tyrepac Pte. Ltd., Singapore. In the reporting period Delticom paid € 403.6 thousand into Delticom Russia.
As in previous years, there are no Level 3 fair value inputs. The valuation categories applied to the individual financial instruments have remained unchanged compared with 31.12.2014.
The group of consolidated companies comprises Delticom AG as controlling company, ten domestic and seven foreign subsidiaries, all fully consolidated in the interim financial accounts.
Compared with the Annual Report for fiscal year 2014 there were the following changes in the group of consolidated companies.
Due to its negligible impact on Delticom's net assets, financial position and results of operations, the following companies are not consolidated, but instead recognized as a financial instrument pursuant to IAS 39.
Tirendo AT GmbH, Vienna (Austria) 100-% subsidiary of Tirendo Holding GmbH
Tirendo Switzerland GmbH, Zug (Switzerland) 100-% subsidiary of Tirendo Holding GmbH
No further significant matters have arisen that affect the assets, liabilities, equity, result for the period, or cash flows, and which are unusual for Delticom AG's business due to their type, extent or frequency. Business trends are explained in the interim management report.
The following table shows the development of the other operating expenses.
| in € thousand | 9M15 | 9M14 |
|---|---|---|
| Transportation costs | 34,119 | 28,111 |
| Warehousing costs | 3,467 | 3,018 |
| Credit card fees | 3,206 | 2,798 |
| Bad debt losses and one-off loan provisions | 1,474 | 1,420 |
| Marketing costs | 15,861 | 15,399 |
| Operations centre costs | 5,504 | 4,450 |
| Rents and overheads | 5,577 | 5,290 |
| Financial and legal costs | 2,835 | 2,681 |
| IT and telecommunications | 1,700 | 1,207 |
| Expenses from exchange rate differences | 3,590 | 1,649 |
| Other | 3,846 | 2,193 |
| Total | 81,179 | 68,216 |
Detailed information with regards to business trends and the profit and loss statement can be found in the chapter Business performance and earnings situation of the interim management report. The chapter Financial and assets position presents additional Information concerning the balance sheet and the cash flow statement.
Basic earnings per share totalled €-0.05 (9M-14: €-–0.08). The diluted earnings per share totalled €-0.05 (9M-14: €-–0.08).
Pursuant to IAS-33, undiluted (basic) earnings per share are calculated by dividing the consolidated net income of €-588,198.72 (previous year: €-–903,289.44) by the 11,945,250 weighted average number of ordinary shares in circulation during the financial year (previous year: 11,907,570 shares).
In the period under review a dilution effect did not have to be taken into account. Accordingly, the diluted earnings corresponds to the result value of the undiluted earnings.
On 06.05.2015 Delticom has paid a dividend of €-0.25 for fiscal year 2014 (previous year: €-0.50)
Related companies and persons in the meaning of IAS 24 include the Managing and Supervisory boards of Delticom AG (category persons in key positions), the majority shareholders Binder GmbH and Prüfer GmbH (category companies with a significant influence on the Group), as well as not cosolidated subsidiaries (category not cosolidated subsidiaries). All transactions with related parties are agreed contractually, and conducted on terms as would also be usual with third parties. Transactions which occured during the interim reporting period did not have any signifanct effects on the earnings, financial and asset positions.
Related companies and persons (Category persons in key positions): In the reporting period, goods and services worth € 35 thousand (9M-14: €-179-thousand) were purchased from related companies and persons, and goods and services worth € 1 thousand (9M-14: €-1-thousand) were sold to related companies and persons. Accounts receivable from business with related companies and persons amounted to €-0-thousand (9M-14: €-0-thousand) and accounts payable totalled €-0-thousand (9M-14: €-7-thousand).
As compared to 31.12.2014, the situation with regards to other financial commitments has not changed significantly. As of the reporting date, there were no contingent liabilities or claims.
There were no key events that occurred after the reporting date.
The interim financial statements and the interim management report has not been reviewed by our auditors.
The website shows the current statements made by the Managing and Supervisory boards of Delticom AG pursuant to Section 161 of the German Public Limited Companies Act (AktG).
To the best of our knowledge, we declare that, according to the principles of proper interim consolidated reporting applied, the interim consolidated financial statements provide a true and fair view of the company's net assets, financial position and results of operations, that the interim consolidated management report presents the company's business including the results and the company's position such as to provide a true and fair view and that the major opportunities and risks of the company's anticipated growth for the remaining financial year are described.
Hanover, 12.11.2015
(The Management Board)
WKN 514680 ISIN DE0005146807 Reuters / Bloomberg DEXGn.DE / DEX GR Index membership CXPR, GEX, NISAX Transparency level Prime Standard
23 November 2015
Type of shares No-par value, registered
12 November 2015 9-monthly report 2015 German Equity Forum Frankfurt
| 01.01.2015 – 30.09.2015 |
01.01.2014 – 31.12.2014 |
||
|---|---|---|---|
| Number of shares | shares | 11,945,250 | 11,945,250 |
| 1 Share price on first trading day |
€ | 18.61 | 30.98 |
| 1 Share price on last trading day of the period |
€ | 20.61 | 18.92 |
| 1 Share performance |
% | +10.8 | –38.9 |
| 1 Share price high/low |
€ | 25.00 / 16.46 | 38,41 / 14,55 |
| 2 Market capitalisation |
€ million | 246.2 | 226.0 |
| Average trading volume per day (XETRA) | shares | 11,011 | 22,308 |
| EPS (undiluted) | € | 0.05 | 0.24 |
| EPS (diluted) | € | 0.05 | 0.24 |
| Equity per share | € | 4.03 | 4.21 |
(1) based on closing prices (2) based on official closing price at end of quarter
| Estimates for 2015 | Estimates for 2016 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Broker | Analyst | Recommen dation |
Target price |
Sales (€m) |
EBITDA (€m) |
EBIT (€m) |
EBIT (%) |
EPS (€) |
Sales (€m) |
EBITDA (€m) |
EBIT (€m) |
EBIT (%) |
EPS (€) |
| NordLB | Frank Schwope | Buy | 26.00 | 539.0 | 16.7 | 7.7 | 1.4 | 0.41 | 572.0 | 21.1 | 16.0 | 2.8 | 0.92 |
| BH Lampe | Christoph Schlienkamp |
Hold | 22.00 | 536.8 | 17.0 | 8.5 | 1.6 | 0.45 | 555.6 | 22.0 | 16.6 | 3.0 | 0.92 |
| Commerzbank | Andreas Riemann | Hold | 20.00 | 527.0 | 18.2 | 10.8 | 2.0 | 0.64 | 564.0 | 20.0 | 12.1 | 2.1 | 0.71 |
| Montega | Timo Buss | Buy | 25.00 | 539.7 | 17.0 | 9.4 | 1.7 | 0.45 | 566.8 | 25.8 | 21.1 | 3.7 | 1.19 |
| Warburg | Marc-René Tonn | Hold | 22.00 | 545.7 | 16.3 | 8.9 | 1.6 | 0.49 | 595.6 | 23.6 | 18.9 | 3.2 | 1.07 |
| Average | 23.00 | 537.6 | 17.0 | 9.1 | 1.7 | 0.49 | 570.8 | 22.5 | 16.9 | 3.0 | 0.96 |
as of 6 November 2015
| Publisher | Delticom AG |
|---|---|
| Brühlstraße 11 | |
| 30169 Hanover | |
| Germany | |
| Contact Investor Relations | Melanie Gereke |
| Brühlstraße 11 | |
| 30169 Hanover | |
| Phone: +49-511-93634-8903 | |
| E-Mail: [email protected] | |
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