Kamux Corporation publishes its strategy for the period 2021-2023

HELSINKI, Feb. 26, 2021 /PRNewswire/ -- During the strategy period 2021-2023, Kamux aims to increase revenue by over 20% annually, to increase adjusted operating profit annually, and to reach an adjusted operating profit margin of at least 3.5% and a return on equity (ROE) of over 25%. Additionally, the company's target is to distribute dividends of at least 25% of net profits.

"Thanks to Kamux's effective business model, the company has grown profitably and expanded internationally from Finland to Sweden and Germany. The used car market is large, stable and fragmented, and we see a clear demand for our concept. The market offers an exceptionally attractive opportunity, and the next logical step in Kamux's story is thus to take an ambitious leap to accelerate growth and to elevate scalability. Our strategy emphasizes leading with knowledge and utilizing data, improving process efficiency, and a seamless omnichannel customer experience. We develop our own capabilities for the good of the customer and invest in the continuous learning of our personnel. We will also make targeted investments into these areas during the strategy period," says CEO Juha Kalliokoski.

Market review

The used car market in Europe is large, historically stable, and highly fragmented. The used car market in Finland, Sweden and Germany totals approximately EUR 100 billion. The market consists of new car retailers as well as small used car retailers, and used cars sales between consumers still has a significant role, although the trend is declining. The strategy is based on the market opportunity which Kamux wants to seize as an international used car retail chain with a strong digital presence. The large size of the market enables the co-existence and simultaneous growth of different concepts and operators.

The company's strategic focus areas are:

Omnichannel customer experience and services

• We aim at seamless omnichannel service and the best digital purchase path on the market. Our customer service utilizes the strengths of our concept, such as cross-selling. Our customer proposition focuses on attractive prices and trust. We employ a customer-oriented approach in developing new services.

Efficient processes and scalability

• We improve the efficiency of our processes and logistics and industrialize them. Going forward, we will open a fewer number, but larger new showrooms. We will furter develop car inspection and other procedures related to cars. We will continue to keep our fixed costs low.

• Data and analytics guide sales, purchasing and pricing. We utilize data also in developing the customer experience especially in online shopping.

Developing capabilities and continuous learning

• We develop our capabilities systematically to achieve our strategic ambitions. We invest heavily in personnel competence, continuous learning, and career paths at all levels of the organization.

Kamux aims for an ambitious leap of growth towards nearly doubling revenue

Strong revenue growth defines our strategy, which aims for nearly doubling our revenue during 2021-2023. The market offers an attractive opportunity for expansion and growth. Profitability development during the strategy period is built on business growth and scalability. 

Vision

Kamux's vision is to be the number one in used car retail in Europe.

Financial targets 2021-2023

Kamux's medium-term financial targets are:

• to increase revenue by over 20% annually
• to increase adjusted operating profit annually and to reach an adjusted operating profit margin of over 3.5%
• to reach a return on equity (ROE) of over 25%
• to distribute dividends of at least 25% of net profits.

The Board of Directors of the Company estimates annually the balance between dividends to be distributed and funds to be used for Kamux's growth and based on this assessment, makes a proposal on the amount of dividends to be distributed, which may for any single year differ significantly from the target level set in the dividend policy.

Outlook for the year 2021

In 2021, Kamux expects its revenue to reach EUR 800-850 million and adjusted operating profit to increase from the previous year.

Capital Markets Day

Kamux holds a virtual Capital Markets Day for investors, financial analysts and media on Wednesday 3rd March, 2021 at 15:00 - approx. 17:00 EET. The presentations of the day can be followed via a webcast at https://kamux.videosync.fi/2021-cmd. The presentation material will be available before the event on https://www.kamux.com/en/releases-and-publications/capital-markets-day-2021/ on the day of the event.

Kamux Corporation

Further information:

Juha Kalliokoski, CEO

Contacts:

Satu Otala, Kamux Communications, tel. +358 400 629 337

[email protected]

Kamux Corporation is a retail chain specializing in the sale of used 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 total of 78 car showrooms in Finland, Sweden and Germany. Since its founding, the company has sold approximately 300,000 used cars, 55,432 of which were sold in 2019. Kamux's revenue reached EUR 658.5 million in 2019. In 2019, Kamux's average number of employees was 595 in terms of full-time equivalent employees. The shares of Kamux are listed on the Nasdaq Helsinki stock exchange.

www.kamux.com

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