Quarterly Report • Aug 14, 2015
Quarterly Report
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Delticom is Europe's leading online tyre retailer. Founded in 1999, the Hanover-based company has nearly 200 online shops in 45 countries, among others ReifenDirekt, www.mytyres.co.uk in UK and www.123pneus.fr 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, motor oil, replacement parts and accessories.
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 | –/+ | |
|---|---|---|---|---|
| – 30.06.2015 | – 30.06.2014 | (%, %p) | ||
| Revenues | € million | 250.2 | 226.1 | +10.7 |
| Total income | € million | 258.9 | 232.2 | +11.5 |
| 1 Gross margin |
% | 23.1 | 24.8 | –1.7 |
| 2 Gross profit |
€ million | 57.8 | 56.1 | +3.1 |
| EBITDA | € million | 6.6 | 6.2 | +6.4 |
| EBITDA margin | % | 2.6 | 2.7 | –0.1 |
| EBIT | € million | 1.4 | 2.1 | –32.3 |
| Net income | € million | 0.7 | –0.2 | –507.4 |
| 3 Earnings per share |
€ | 0.06 | –0.02 | –505.4 |
| Total assets | € million | 180.8 | 207.2 | –12.7 |
| Inventories | € million | 74.9 | 109.2 | –31.4 |
| 4 Investments |
€ million | 1.2 | 0.4 | +175.8 |
| 5 Capital Employed |
€ million | 62.5 | 68.3 | –8.5 |
| 6 Return on Capital Employed |
% | 2.2 | 3.0 | –0.8 |
| Equity | € million | 48.3 | 46.8 | +3.1 |
| Equity ratio | % | 26.7 | 22.6 | +4.1 |
| Return on equity | % | 1.5 | –0.4 | +1.9 |
| 7 Liquidity position |
€ million | 15.8 | 7.1 | +121.1 |
| Operating cash flow | € million | –22.8 | –9.5 | |
| 8 Free cash flow |
€ million | –24.0 | –10.0 |
(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
Significant events after the reporting date
Macroeconomic developments After a poor start to the year, global economic recovery only set in at a moderate tempo. Economic development in many emerging countries has cooled off recently, as is also the case in the US and China. Despite the sovereign debt crisis in Greece, the eurozone economy recently regained momentum. Even though there has been a slight improvement in the situation in the past few months, unemployment in the single market remains high. Differences between individual member states are still considerable. In many areas, consumer sentiment remains at a low level.
The kick-start to economic recovery in the spring has led to continued positive development on the German employment market. Private consumption remains a cornerstone of the German economy. That being said, fears over Greece and weaker development outside of Europe are increasingly pressuring sentiment, both among consumers and among business owners.
Development of the tyre market After a weak start to the year, replacement tyre business was unable to match the performance of the prior year in Q2-15. According to current figures from industry associations, replacement tyre sales in Germany were down 1.6-% in H1-15.
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 H1-15 the company recognized revenues of €-250.2-million, an increase of 10.7-% after €-226.1-million in the prior-year period.
E-Commerce Revenues in the E-Commerce with its 191 online shops increased year-on-year by 11.3-%, from €-221.4-million to €-246.5-million. The share of divisional revenues amounted to 98.5-%, compared to 98.0-% in the previous year.
Customer numbers In H1-15 the company was able to acquire a total of 492-thousand new customers (H1-14: 469 thousand, +4.8-%). 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 Semi Annual Report 2014. Customers who purchased for the first time at both Delticom and Tirendo in H1-15 were offset. In H1-15 a total of 488-thousand existing customers (H1-14: 404 thousand, +20.6-% - based on new calculation methodology) made repeat purchases at Delticom group.
In the first quarter, Delticom was able to generate revenues of €-111.3-million (Q1-14: €-94.3-million) – a plus of 18.1-%.
In the second quarter, the company generated revenues of €-138.8-million (Q2-14: €-131.8-million, +5.3-%). Q2-15 revenues in the E-Commerce division were up year-on-year by 6.2-%, amounting to €-137.6-million.
Regional split The group offers its product range in 48 countries. In H1-15 revenues in EU countries totalled €-194.8-million (+11.2-%). Across all non-EU countries the revenue contribution for H1-15 was €-55.4-million (+8.7-%).
table: Revenues by region; in € thousand
| H115 | % | +% | H114 | % | +% | H113 | % |
|---|---|---|---|---|---|---|---|
| 250,167 | 100.0 | 10.7 | 226,066 | 100.0 | 6.5 | 212,207 | 100.0 |
| 194,773 | 77.9 | 11.2 | 175,125 | 77.5 | 10.7 | 158,128 | 74.5 |
| 55,394 | 22.1 | 8.7 | 50,941 | 22.5 | –5.8 | 54,080 | 25.5 |
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 13.2-% from €-170.0-million in H1-14 to €-192.3-million in H1-15.
Personnel expenses On 30.06.2015, the company employed a total of 143 employees. In the reporting period, Delticom employed an average of 152 staff members (H1-14: 271). Personnel expenses amounted to €-4.5-million (H1-14: €-7.7-million, –41.4-%). This decrease is mainly due to the significant workforce reduction at Tirendo. The personnel expenses ratio in the reporting period came to 1.8-% (staff expenditures as percentage of revenues, H1-14: 3.4-%).
Transportation costs Among the other operating expenses, transportation costs is the largest line item. The increase from €-19.8-million by 21.2-% to €-24.0-million is mainly due to the sales country-mix and the higher business volume. The share of transportation costs against revenues totalled 9.6-% (H1-14: 8.8-%).
Gross margin The gross margin for the first half of the year stood at 23.1-%, after 24.8-% in H1-14. The quarterly gross margin decreased from 25.1-% in Q2-14 to 24.0-%.
saw an increase of 53.0-%, from prior-year's €-3.8-million to €-5.8-million. This equates to an quarterly EBITDA margin of 4.2-% (Q2-14: 2.9-%).
quarterly, in € million
Income taxes In the first six months the expenditure for income taxes totalled €-0.5-million (H1-14: €-1.8-million). This equates to a tax rate of 39.0-% (H1-14: 110.9-%). In H1-14, Delticom AG and Tirendo Holding GmbH signed a profit and loss transfer agreement (PLTA). As a result, the tax rate in the previous year diverged significantly from the normal tax rate of the Delticom Group.
Net income H1-15 Consolidated net income in the first half of the year totalled €-0.7-million after €-–0.2-million in H1-14. This corresponds to earnings per share (EPS) of €-0.06 (undiluted, H1-14: €-–0.02).
The table Abridged P+L statement summarises key income and expense items from multiple years' profit and loss statements.
| in € thousand | ||||||||
|---|---|---|---|---|---|---|---|---|
| H115 | % | +% | H114 | % | +% | H113 | % | |
| Revenues | 250,167 100.0 | 10.7 | 226,066 100.0 | 6.5 | 212,207 100.0 | |||
| Other operating income | 8,689 | 3.5 | 42.4 | 6,101 | 2.7 126.8 | 2,690 | 1.3 | |
| Total operating income | 258,856 103.5 | 11.5 | 232,167 102.7 | 8.0 | 214,897 101.3 | |||
| Cost of goods sold | –192,335 | –76.9 | 13.2 –169,966 | –75.2 | 5.9 –160,505 | –75.6 | ||
| Gross profit | 66,521 | 26.6 | 6.9 | 62,201 | 27.5 | 14.4 | 54,392 | 25.6 |
| Personnel expenses | –4,514 | –1.8 | –41.4 | –7,701 | –3.4 | 69.4 | –4,545 | –2.1 |
| Other operating expenses | –55,426 | –22.2 | 14.7 | –48,317 | –21.4 | 22.0 | –39,597 | –18.7 |
| EBITDA | 6,582 | 2.6 | 6.4 | 6,183 | 2.7 | –39.7 | 10,250 | 4.8 |
| Depreciation | –5,188 | –2.1 | 25.8 | –4,123 | –1.8 206.5 | –1,345 | –0.6 | |
| EBIT | 1,394 | 0.6 | –32.3 | 2,060 | 0.9 | –76.9 | 8,905 | 4.2 |
| Net financial result | –203 | –0.1 | –52.4 | –426 | –0.2 5335.5 | –8 | 0.0 | |
| EBT | 1,191 | 0.5 | –27.1 | 1,634 | 0.7 | –81.6 | 8,897 | 4.2 |
| Income taxes | –464 | –0.2 | –74.4 | –1,813 | –0.8 | –37.3 | –2,890 | –1.4 |
| Consolidated net income | 727 | 0.3 –507.4 | –178 | –0.1 –103.0 | 6,008 | 2.8 |
As of 30.06.2015 the balance sheet total amounted to €-180.8-million (31.12.2014: €-164.0-million).
| Equity Long-term debt Provisions Liabilities Short-term debt Provisions Liabilities Current liabilities for financial assets |
48,304 14,211 300 13,911 118,263 2,903 115,359 532 |
26.7 65.4 1.6 63.8 0.3 |
–4.0 7.9 –14.7 0.2 –14.6 7.7 –14.7 21.8 22.7 21.8 |
50,293 16,651 351 16,300 97,064 2,367 94,698 0 |
30.7 10.2 0.2 9.9 59.2 1.4 57.7 0.0 |
51,679 12,957 252 12,704 112,385 2,028 110,357 0 |
29.2 7.3 0.1 7.2 63.5 1.1 62.3 0.0 |
|---|---|---|---|---|---|---|---|
| Long-term funds | 62,514 | 34.6 | –6.6 | 66,943 | 40.8 | 64,635 | 36.5 |
| Equity and Liabilities | |||||||
| Assets | 180,777 100.0 | 10.2 | 164,007 100.0 | 177,020 100.0 | |||
| Financial assets held for sale | 437 | 0.2 | 0 | 0.0 | 0 | 0.0 | |
| Cash and cash equivalents | 15,933 | 8.8 –46.8 | 29,975 | 18.3 | 11,323 | 6.4 | |
| Securities | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 | |
| Liquidity | 15,933 | 8.8 –46.8 | 29,975 | 18.3 | 11,323 | 6.4 | |
| Receivables | 35,088 | 19.4 | 77.7 | 19,745 | 12.0 | 26,158 | 14.8 |
| Inventories | 74,934 | 41.5 | 33.5 | 56,151 | 34.2 | 72,841 | 41.1 |
| Current assets | 126,392 | 69.9 | 19.4 | 105,872 | 64.6 | 110,322 | 62.3 |
| Other non-current assets | 1,809 | 1.0 | 52.9 | 1,183 | 0.7 | 2,330 | 1.3 |
| Fixed assets | 52,576 | 29.1 | –7.7 | 56,952 | 34.7 | 64,368 | 36.4 |
| Assets Non-current assets |
54,385 | 30.1 | –6.5 | 58,135 | 35.4 | 66,698 | 37.7 |
| % | +% | 31.12.14 | % | 31.12.13 | % | ||
| 30.06.15 |
| Inventories | Among the current assets, inventories is the biggest line item. Since the beginning of the year their value grew by €-18.8-million or 33.5-% to €-74.9-million (31.12.2014: €-56.2-million). This corresponds to a share of 41.5-% of total assets (31.12.2014: 34.2-%, 30.06.2014: 52.7-%). |
|---|---|
| Receivables | Trade receivables usually follow the seasons, but reporting date effects are often unavoidable. At the end of the second quarter, receivables amounted to €-35.1-million (31.12.2014: €-19.7-million, 30.06.2014: €-29.2-million), thereof €-19.9-million accounts receiveable (31.12.2014: €-14.5-million, 30.06.2014: €-13.5-million). The increase of other current receivables by €-9.2-million to €-13.9-million (31.12.2014: €-4.7-million) is mainly due to higher refund claims from taxes in conjunction with the winter tyre stock build-up. |
| Payables | In the wake of this inventory build-up, the accounts payable increased from an opening balance of €-75.9-million by 8.1-% to €-82.1-million. This corresponds to a share of 45.4-% of the balance sheet total (31.12.2014: 46.3-%, 30.06.2014: 49.0-%). |
| For financing part of the stock build-up the current financial liabilities were ex panded in the first six months to €-17.6-million (31.12.2014: €-4.4-million). |
|
| Assets and liabilities held for sale |
Due to the decision to sale all shares in Tyrepac Pte. Ltd. (Singapore) on 31.07.2015, the associated financial assets and liabilities were reclassified as financial assets and liabilities held for sale at the reporting date. |
| Working capital | The net working capital on 30.06.2015 amounted to €-5.2-million (30.06.2014: €-16.0-million). Since the beginning of the year, working capital has grown by €-17.7-million (31.12.2014: €-–12.5-million). |
| Liquidity position | Liquidity (cash and cash equivalents plus liquidity reserve) as of 30.06.2015 totalled €-15.8-million (31.12.2014: €-29.9-million, 30.06.2014: €-7.1-million). The company's net cash position amounted to €-–2.0-million (liquidity less liabil ities from current accounts, 31.12.2014: €-25.3-million, 30.06.2014: €-–16.4-million). |
| Cash flow |
Based on the cash flow, the chart Liquidity Bridge illustrates how the liquidity position changed in the trailing 12 months.
| Operating cash flow | Due to the development in net working capital, the H1-15 cash flow from ordinary business activities (operating cashflow) of €-–22.8-million was lower than in the comparison period (H1-14: €-–9.5-million). |
|---|---|
| Investments | In the reporting period Delticom invested €-0.5-million into property, plant and equipment, after €-0.3-million the previous year. Further €-0.6-million were invest ed in intangible assets (H1-14: €-0.1-million). As a result, the cash flow from investment activities totalled €-–1.2-million (H1-14: €-–0.4-million). |
| Financing activities | In the reporting period, Delticom recorded a cash flow from financing activities amounting to €-9.2-million, thereof the dividend payout for the last financial year of €-3.0-million and disbursements due to redemption of loans of €-1.7-million. The cash outflow was offset by inflows from financial liabilities of €-13.0-million. |
| Organisation | |
| Legal structure | The following section lists the subsidiaries that are fully consolidated in the consolidated financial statements as of 30.06.2015: |
| • Delticom North America Inc., Benicia (California, USA) |
|
| • * Delticom OE S.R.L., Timisoara (Romania) |
|
| • Delticom Tyres Ltd., Oxford (United Kingdom) |
|
| • Deltiparts GmbH, Hanover (Germany) |
|
| • Giga GmbH, Hamburg (Germany) |
|
| • Pnebo Gesellschaft für Reifengroßhandel und Logistik mbH, Hanover (Ger |
many)
An overview of all not-consolidated subsidiaries can be found in the notes.
Effective as of 31.07.2015, Delticom AG fully sold its majority share in Tyrepac Pte. Ltd., Singapore.
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.
would be no lasting improvement in the industry situation this year. On a halfyear basis, sales in the German tyre retail business fell short of the already weak figures of the prior year. Once again, the German tyre trade is once again pinning its hopes on winter business in Q4 15. Given the mild winter in 2014, excess inventories of winter goods in the supply chain cannot be ruled out at the current time. Guidance unchanged For the second half of the year, we are planning for a year-on-year increase in sales. Given the positive business development in H1-15, we are more optimistic now than we were at the start of the year that we might at least match the revenues of financial year 2014. At the moment there is still major uncertainty surrounding this year's winter tyre business. If the winter weather is mild once again, prices could come under further pressure in the tyre trade after shrinking summer tyre business. In such a market environment, the volume growth we are striving for does not necessarily have to lead to a rise in revenues in the second half of the year. It remains to be seen whether statements can be made after the end of the third quarter on the predicted course of winter business in the fourth quarter. We reserve the right to adjust our guidance for full-year revenues after the end of the third quarter. EBITDA The fourth quarter plays a major role in terms of full-year revenues and profitability. In an increasingly deflationary price environment, our targeted sales growth could have an additional impact on earnings if volume-related costs rise more sharply than revenues. Nevertheless, we are still aiming to at least match EBITDA of the 2014 financial year in absolute terms. Depreciation PPA depreciation on sales licences and other rights amounting to € 0.8 million, which were identified within the scope of the Tirendo purchase price allocation with a useful life of two years and an original fair value of € 6.6 million, will cease to apply in Q4 15. Nevertheless, we are still expecting for full-year depreciation of roughly € 9 million (2014: € 8.3 million) in 2015, due to factors such as the increased depreciation in Q2-15. EBIT Assuming EBITDA remains unchanged year on year, increased depreciation will lead to a corresponding decline in EBIT for the current financial year. New customers E-Commerce continues to gain importance as a further sales channel. In our planning for the current fiscal year we still anticipate attracting over one million new customers through the Delticom shops.
| 01.01.2015 | 01.01.2014 | |
|---|---|---|
| in € thousand | – 30.06.2015 | – 30.06.2014 |
| Revenues | 250,167 | 226,066 |
| Other operating income | 8,689 | 6,101 |
| Total operating income | 258,856 | 232,167 |
| Cost of goods sold | –192,335 | –169,966 |
| Gross profit | 66,521 | 62,201 |
| Personnel expenses | –4,514 | –7,701 |
| Depreciation of intangible assets and property, plant and equipment | –5,188 | –4,123 |
| Other operating expenses | –55,426 | –48,317 |
| Earnings before interest and taxes (EBIT) | 1,394 | 2,060 |
| Financial expenses | –216 | –448 |
| Financial income | 13 | 22 |
| Net financial result | –203 | –426 |
| Earnings before taxes (EBT) | 1,191 | 1,634 |
| Income taxes | –464 | –1,813 |
| Consolidated net income | 727 | –178 |
| Thereof allocable to: | ||
| Non-controlling interests | –65 | 0 |
| Shareholders of Delticom AG | 792 | –178 |
| Earnings per share (basic) | 0.06 | –0.02 |
| Earnings per share (diluted) | 0.06 | –0.02 |
| 01.01.2015 | 01.01.2014 | |
|---|---|---|
| in € thousand | – 30.06.2015 | – 30.06.2014 |
| Consolidated Net Income | 727 | –178 |
| 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 | 373 | 58 |
| Net Investment Hedge Reserve | ||
| Changes in current value recorded directly in equity | 46 | –2 |
| Deferred taxes relating to Net Investment Hedge Reserve | –15 | 1 |
| Other comprehensive income for the period | 404 | 56 |
| Total comprehensive income for the period | 1,131 | –122 |
| Attributable to non-controlling interests | –6 | 0 |
| Attributable to shareholders of the parant | 1,137 | –122 |
| in € thousand | 30.06.2015 | 31.12.2014 |
|---|---|---|
| Non-current assets | 54,385 | 58,135 |
| Intangible assets | 45,401 | 47,949 |
| Property, plant and equipment | 7,073 | 8,978 |
| Financial assets | 101 | 25 |
| Deferred taxes | 1,281 | 705 |
| Other receivables | 529 | 478 |
| Current assets | 126,392 | 105,872 |
| Inventories | 74,934 | 56,151 |
| Accounts receivable | 19,891 | 14,489 |
| Other current assets | 13,904 | 4,707 |
| Income tax receivables | 1,292 | 549 |
| Cash and cash equivalents | 15,933 | 29,975 |
| Financial assets held for sale | 437 | 0 |
| Assets | 180,777 | 164,007 |
| in € thousand | 30.06.2015 | 31.12.2014 |
|---|---|---|
| Equity | 48,304 | 50,293 |
| Equity attributable to Delticom AG shareholders | 47,322 | 49,305 |
| Subscribed capital | 11,945 | 11,945 |
| Share premium | 25,372 | 25,372 |
| Other components of equity | 532 | 128 |
| Retained earnings | 200 | 200 |
| Net retained profits | 9,273 | 11,659 |
| Non-controlling interests | 982 | 988 |
| Liabilities | 132,473 | 113,715 |
| Non-current liabilities | 14,211 | 16,651 |
| Long-term borrowings | 13,438 | 15,367 |
| Non-current provisions | 300 | 351 |
| Deferred tax liabilities | 473 | 933 |
| Current liabilities | 118,263 | 97,064 |
| Provisions for taxes | 1,254 | 845 |
| Other current provisions | 1,650 | 1,521 |
| Accounts payable | 82,093 | 75,920 |
| Short-term borrowings | 17,605 | 4,424 |
| Other current liabilities | 15,130 | 14,354 |
| Current liabilities for financial assets | 532 | 0 |
| Shareholders' equity and liabilities | 180,777 | 164,007 |
| 01.01.2015 | 01.01.2014 | |
|---|---|---|
| in € thousand | – 30.06.2015 | – 30.06.2014 |
| Earnings before interest and taxes (EBIT) | 1,394 | 2,060 |
| Depreciation of intangible assets and property, plant and equipment | 5,188 | 4,123 |
| Changes in other provisions | 77 | –291 |
| Net gain on the disposal of assets | –55 | 0 |
| Changes in inventories | –18,783 | –36,316 |
| Changes in receivables and other assets not allocated to | ||
| investing or financing activity | –14,666 | –3,782 |
| Changes in payables and other liabilities not allocated to | ||
| investing or financing activity | 6,958 | 24,469 |
| Interest received | 13 | 22 |
| Interest paid | –194 | –341 |
| Income tax paid | –1,835 | 507 |
| Cash flow from operating activities | –21,903 | –9,548 |
| Proceeds from the disposal of property, plant and equipment | 8 | 0 |
| Payments for investments in property, plant and equipment | –492 | –300 |
| Payments for investments in intangible assets | –591 | –118 |
| Payments for investments in financial assets | –76 | –12 |
| Cash flow from investing activities | –1,152 | –430 |
| Dividends paid by Delticom AG | –2,986 | –5,930 |
| Payments from additions to capital | 0 | 1,215 |
| Capital transactions with non-controlling interests | 0 | 0 |
| Cash inflow of financial liabilities | 12,952 | 10,713 |
| Cash outflow of financial liabilities | –1,700 | –450 |
| Cash flow from financing activities | 8,266 | 5,548 |
| Changes in cash and cash equivalents due to currency translation | 373 | 58 |
| Cash and cash equivalents at the start of the period | 29,975 | 11,323 |
| Changes in cash and cash equivalents | –14,415 | –4,372 |
| Changes in consolidation scope | 0 | 0 |
| Cash and cash equivalents - end of period | 15,933 | 6,950 |
| 01.01.2015 | 01.01.2014 | |
|---|---|---|
| in € thousand | – 30.06.2015 | – 30.06.2014 |
| Liquidity – start of period | 29,927 | 11,500 |
| Changes in cash and cash equivalents | –14,170 | –4,372 |
| Liquidity – end of period | 15,758 | 7,128 |
| Net Cash – start of period | 10,137 | –21,197 |
| Changes in cash and cash equivalents | –14,170 | –4,372 |
| Changes in financial liabilities | –11,252 | –10,263 |
| Net Cash – end of period | –15,285 | –35,832 |
| Net cash refer to short term financial liabilities: | ||
| Net Cash – start of period | 25,326 | –10,337 |
| Changes in cash and cash equivalents | –14,170 | –4,372 |
| Changes in short term financial liabilities | –13,181 | –1,734 |
| Net Cash – end of period | –2,025 | –16,443 |
| Net cash refer to long term financial liabilities: | ||
| Net Cash – start of period | 14,383 | 285 |
| Changes in cash and cash equivalents | –14,170 | –4,372 |
| Changes in long term financial liabilities | 1,929 | –8,529 |
| Net Cash – end of period | 2,143 | –12,616 |
| 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 | ||||||
| Dividends paid | –5,930 | –5,930 | –5,930 | ||||||
| Net income | –178 | –178 | –178 | ||||||
| Other comprehensive in come |
58 | –1 | 56 | 56 | |||||
| Total comprehensive |
|||||||||
| income | 58 | –1 | –178 | –122 | –122 | ||||
| as of 30 June 2014 | 11,945 | 25,575 | –123 | 29 | 200 | 9,215 | 46,842 | 0 | 46,842 |
| as of 1 January 2015 | 11,945 | 25,372 | 115 | 13 | 200 | 11,659 | 49,305 | 988 | 50,292 |
| Dividends paid | –2,986 | –2,986 | –2,986 | ||||||
| Net income | 792 | 792 | –65 | 726 | |||||
| Other comprehensive in | |||||||||
| come | 373 | 32 | –192 | 213 | 59 | 272 | |||
| Total comprehensive income |
373 | 32 | 600 | 1,005 | –6 | 998 | |||
| as of 30 June 2015 | 11,945 | 25,372 | 488 | 45 | 200 | 9,273 | 47,324 | 982 | 48,304 |
Delticom, Europe's leading online tyre retailer, was founded in Hanover in 1999. With 191 online shops in 48 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 30.06.2015 Delticom had an average of 152 employees (thereof 5 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 30.06.2015 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 € 101 thousand (31.12.2014: € 25 thousand), Financial assets held for trading amounting to € 22 thousand (31.12.2014: € 63 thousand) and Financial liabilities held for trading amounting to € 77 thousand (31.12.2014: € 3 thousand). 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, eight 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.
The following subsidiary were founded and fully consolidated in the current fiscal year:
• Giga GmbH, Hamburg (Germany)
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.
The above presented local subsidiaries of Tirendo are under liquidation procedure and will be closed at the beginning of the fiscal year 2016 at the latest.
Due to the decision to sale all shares in Tyrepac Pte. Ltd. (Singapoer), the long term financial assets associated were reclassified according to IFRS 5 as short term financial assets held for sale at the reporting date (in addition to property, plant and equipment in particular other receivables and accounts payable). Consequently, liabilities for financial assets were created as well. The sale become effective at 31.07.2015.
Delticom is set to close one warehouse at the end of the current fiscal year. In this context an impairment of € 950 thousand occurred in the reporting period for the sorter and packing machines used so far at this location.
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.
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.
The following table shows the development of the other operating expenses.
| in € thousand | H115 | H114 |
|---|---|---|
| Transportation costs | 23,983 | 19,791 |
| Warehousing costs | 2,225 | 2,061 |
| Credit card fees | 2,253 | 2,024 |
| Bad debt losses and one-off loan provisions | 1,054 | 1,037 |
| Marketing costs | 10,645 | 11,563 |
| Operations centre costs | 3,638 | 2,997 |
| Rents and overheads | 3,882 | 3,544 |
| Financial and legal costs | 1,802 | 1,994 |
| IT and telecommunications | 1,077 | 871 |
| Expenses from exchange rate differences | 2,804 | 980 |
| Other | 2,064 | 1,456 |
| Total | 55,426 | 48,317 |
Basic earnings per share totalled €-0.06 (H1-14: €-–0.02). The diluted earnings per share totalled €-0.06 (H1-14: €-–0.02).
Pursuant to IAS-33, undiluted (basic) earnings per share are calculated by dividing the consolidated net income of €-726,866.26 (previous year: €-–178,423.91) by the 11,945,250 weighted average number of ordinary shares in circulation during the financial year (previous year: 11,888,203 shares).
Until 30.04.2014, there were 15,810 potential shares (financial instruments and other agreements which entitle their holders to subscribe to ordinary shares) from the tranche dated 22.11.2007, 37,500 potential shares from the tranche dated 08.05.2008, 17,500 potential shares from the tranche dated 25.11.2008 and 15,000 potential shares from the tranche dated 30.03.2009.
The exercise prices for the tranches 22.11.2007, 08.05.2008, 25.11.2008 and 30.03.2009 were below the average share prices since the options were issued on 22.11.2007, 08.05.2008, 25.11.2008 and 30.03.2009. As a result all tranches are included in the diluted earnings per share for the previous year.
All stock options were exercised during the fiscal year 2014. For this reason no dilution of earnings per share occurs in the current year. Accordingly, the diluted earnings corresponds to the result value of the undiluted earnings. The calculation of the diluted earnings per share for previous year was based (in accordance with IAS-33) on net income after taxes totalling €-–178,423.91 and the weighted average number of shares outstanding during the fiscal year and the number of potential shares from options totalling 11,945,250 shares.
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 €-30-thousand (H1-14: €-139-thousand) were purchased from related companies and persons, and goods and services worth €-1-thousand (H1-14: €-1-thousand) were sold to related companies and persons. Accounts receivable from business with related companies and persons amounted to €-0-thousand (H1-14: €-0-thousand) and accounts payable totalled €-0-thousand (H1-14: €-7-thousand).
Related companies and personds (category not cosolidated subsidiaries): In the reporting period, goods and services worth €-356-thousand (H1-14: €-0-thousand) were purchased from related companies
and persons, and goods and services worth €-840-thousand (H1-14: €-539-thousand) were sold to related companies and persons. Accounts receivable from business with related companies and persons amounted to €-187-thousand (H1-14: €-610-thousand) and accounts payable totalled €-356-thousand (H1-14: €-0-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.
Delticom AG fully sold its stake in Tyrepac Pte. Ltd. (Singapore) with effective date 31.07.2015.
The interim financial statements and the interim management report has been reviewed by our auditors.
The website www.delti.com/Investor\_Relations/Entsprechungserklaerung.html 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, 13.08.2015
(The Management Board)
Translation of the auditor's report issued in German language on the consolidated financial statements prepared in German language by the management of Delticom AG, Hanover.
We have reviewed the condensed consolidated interim financial statements - comprising the condensed income statement, condensed statement of comprehensive income, condensed statement of financial position, condensed statement of cash flows, condensed statement of changes in equity and selected explanatory notes - and the interim group management report of Delticom AG, Hanover, for the period from January 1, 2015 to June 30, 2015 which are part of the half-year financial report pursuant to § (Article) 37w WpHG ("Wertpapierhandelsgesetz": German Securities Trading Act). The preparation of the condensed consolidated interim financial statements in accordance with the IFRS applicable to interim financial reporting as adopted by the EU and of the interim group management report in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports is the responsibility of the parent Company's Board of Managing Directors. Our responsibility is to issue a review report on the condensed consolidated interim financial statements and on the interim group management report based on our review.
We conducted our review of the condensed consolidated interim financial statements and the interim group management report in accordance with German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany) (IDW). Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with moderate assurance, that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU and that the interim group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports. A review is limited primarily to inquiries of company personnel and analytical procedures and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot express an audit opinion.
Based on our review, no matters have come to our attention that cause us to presume that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU nor that the interim group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports.
Hanover, 13.08.2015
PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft
Helmuth Schäfer ppa. Thomas Monecke German Public Auditor German Public Auditor
| WKN | 514680 |
|---|---|
| ISIN | DE0005146807 |
| Reuters / Bloomberg | DEXGn.DE / DEX GR |
| Index membership | CXPR, GEX, NISAX |
| Type of shares | No-par value, registered |
| 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 – 30.06.2015 |
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 |
€ | 21.00 | 18.92 |
| 1 Share performance |
% | +12.9 | –38.9 |
| 1 Share price high/low |
€ | 23.30 / 16.46 | 38,41 / 14,55 |
| 2 Market capitalisation |
€ million | 250.9 | 226.0 |
| Average trading volume per day (XETRA) | shares | 12,399 | 22,308 |
| EPS (undiluted) | € | 0.06 | 0.24 |
| EPS (diluted) | € | 0.06 | 0.24 |
| Equity per share | € | 4.04 | 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 | 25.00 | 532.0 | 18.1 | 12.6 | 2.4 | 0.70 | 561.0 | 20.9 | 14.8 | 2.6 | 0.84 |
| Commerzbank | Andreas Riemann | Hold | 19.00 | 527.0 | 21.9 | 14.5 | 2.8 | 0.81 | 564.0 | 27.7 | 19.8 | 3.5 | 1.16 |
| Hauck | Sascha Berresch | Sell | 12.00 | 506.7 | 15.7 | 10.9 | 2.2 | 0.57 | 527.0 | 20.6 | 16.0 | 3.0 | 0.91 |
| Montega | Tim Kruse | Hold | 20.00 | 510.0 | 15.2 | 7.9 | 1.5 | 0.42 | 540.6 | 24.1 | 19.4 | 3.6 | 1.10 |
| 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 | 19.60 | 524.3 | 17.4 | 11.0 | 2.1 | 0.60 | 557.6 | 23.4 | 17.8 | 3.2 | 1.02 |
as of 7 August 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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