A Firm Grip.selling tyres creates market intelligence, interesting for suppliers purchasing pricing eCommerce margin 26.7% (2007: 25.7%) Wholesale business 11.6% (2007: 11.9%) –

Hanover, 30th March 2009

A Firm Grip.

Investor Presentation

on the Occasion of the Release of the Financial Results 2008


Hanover, 30th March 2009 2

Delticom at a Glance

Business Model

Seasonalities in the Tyre Trade

Financials

Outlook

Agenda

Investor PresentationHanover, 30th March 2009

At a glance Business Model Seasonalities Financials Outlook 3

Agenda


Business Model


Financials

Outlook




� #1 European online tyre dealer (car replacement tyres):> 100 online shops in 35 countries

� founded 1999, IPO Oct 06, SDAX Dec 08� customer base: more than 2.6 million

2008: ~700 thousand new customers� broad product range: > 100 tyre brands, > 25,000 models� other products: motorcycle, truck, rims, complete wheels,

motor oil, car parts, accessories� global network with more than 24,000 fitting partners

DE 6100 US 5638 UK 1723 FR 2161 CH 888

02.01.2008 - 31.12.2008

32

34

36

38

40

42

44

46

48

50

24.12 12.2 2.4 22.5 11.7 30.8 19.10 8.12

-30

-20

-10

0

10

20

30

40

02.01.2009 - 26.03.2009

32

34

36

38

40

42

44

46

48

50

2.1 22.1 11.2 3.3 23.3

-30

-20

-10

0

10

20

30

40

2008 2007 yoy

Revenues € million 259.0 215.5 +20.2

EBIT € million 16.4 12.3 +34.0

EBIT margin % 6.4 5.7

Net income € million 11.7 8.3 +40.5

Earnings per share € 2.97 2.12 +40.5

Total assets € million 95.6 87.4 +9.5

Equity ratio % 52.5 53.0

Liquidity position € million 42.9 34.5 +24.3

Dividend € 3.00 2.00 +50.0

Operating cash flow per share € 4.22 1.67 +153.4

Free cash flow per share € 3.89 1.18 +230.7



Agenda


Business Model


Financials

Outlook


At a glance Business Model Seasonalities Financials Outlook

1.8%1.0%

2.5% 3.1%4.9%

8.9%

6.1%4.8%

3.3%

15.0%15.6%15.1%13.7%13.4%

27.8%28.1%26.4%

24.1%

0%

5%

10%

15%

20%

25%

30%

98 99 2000 01 02 03 04 05 06 07 08 09*

WesternEurope

other 67

UK 24

DE 49

FR 24IT

22

ES 13

World

Rest 20

Asia 213

NA 263

WE 199

EE+CE 76

SA 50

+2.5%

-12.7%-3.5% -3.3%

0

10

20

30

40

50

60

98 99 2000 01 02 03 04 05 06 07 08 09*

6

Tyres and the Internet

Source: LMC World Tyre Forecast Service 2009, Michelin, BRV, own estimates

European Car Replacement Tyres: € 11 billion

Europeans are increasingly online...

66

56

46

39

52

7769

57

80

8376

50

34

Desk Research GfK Austria, December 2008

adults on the Internet in % of total

in million tyres

... and buy their tyres online.

Source: BRV (car replacement tyres, incl. retreaded) * estimates as of March 09

in million tyres

Germany: 2 bad years in a row, difficult 2009 ahead.

want to buy online in the future (18-39)

want to buy online in the future (all)

bought last tyres on the Internet (18-39)

bought last tyres on the Internet (all)

Source: ADAC Reifenmonitor 2005-2009, 2009 preliminary



Redesign of the Tyre Distribution Chain

European TyreManufacturers

Non-European TyreManufacturers

European TyreManufacturers

Non-European TyreManufacturers

WholesalersDelticom EuropeanDistribution Centers

Wholesalers

Retailers

Small Garages

Customers

B2B

B2C Customers

Traditional Retail Delticom Redesign►



Agenda


Business Model


Financials

Outlook



„Relative“Weather

Snowfall

„Relative“Revenues

2007 vs. 2008 Seasonalities

9

Summer season (Q2) and winter season (Q4) are very important.►

1. End of Jan 08 was warmerthan Jan 07 – hurt Q1 revenue growth

2. Mar 08 was colder than Mar 07 – late start into summer season 2008, revenues decreased yoy

3. Cold Q2 lead to investment into market share, revenues increased yoy

4. Q3 margins back on track5. Good snowfall, although

relatively late in the season6. Cold in Jan 09 (but not as

much snow as in 08), even colder in Feb 09 (late snow) and unusually cold in Mar 09

�

�

�

�

�

�

�

�

�

�

�

Q1 Q2 Q3 Q4

�



Seasonal Demand

Repurchases constitute important growth potential►



Agenda


Business Model


Financials

Outlook



Quarterly Revenues

Fluctuations in growth rates: seasons, weather, base effects, strategy►

in € million

53.7

78.9

64.2

33.5

49.9

38.9

25.6

42.6

63.1

44.0

69.5

84.0

+21.9 %

+52.3 %

+26.5 %

+31.5 %

+8.2 %

+9.4 %

+25.2 %+20.9 %

2006 2007 2008

0

20

40

60

80

100

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

0

20

40

60

80

100



Revenues-to-EBIT Bridge

► Gross margin and operating leverage drive EBIT

in € million

► ► ► ► ► ► ► ►



Revenues and Gross Profit

� eCommerce: € 237.6 million(+21.7%, '07: €195.3m)

� Wholesale: € 21.4 million(+5.9%, '07: €20.2 million)

� good growth in DE and other parts of EU,

� pos/neg FX effects in certain countries – hedge or accept

� global sourcing� volumes sometimes depend on FX

differentials (timing)� selling tyres creates market

intelligence, interesting for suppliers

� purchasing � pricing

� eCommerce margin 26.7% (2007: 25.7%)

� Wholesale business 11.6% (2007: 11.9%) – strategically important, growth depends on opportunities (again FX)

133.

2

163.

6

193.

7

+22.8%

+18.4%

0

50

100

150

200

250

300

2006 2007 2008

Cost of Sales

173.

1

215.

5

259.

0

+24.5%

+20.2%

0

50

100

150

200

250

300

2006 2007 2008

Revenues

68.5

53.6

40.9

23.5%

24.7%

26.1%

+31.1%

+27.6%

0

20

40

60

80

2006 2007 2008

22%

23%

24%

25%

26%

27%

28%

Gross Profit Margin



1.5

0.7

0.0

0.3%

0.6%

121%

0

1

2

3

2006 2007 2008

0,0%

0,5%

1,0%

1,5%

Rents Margin

15

Logistics

� parcel services� the longer the „relation“, the higher

the costs (absolute)� the higher the shopping basket

value, the lower the relative margin impact

� more shipments to customers in non-domestic destinations

� productivity increased due to new systems and processes

� basically unchanged mix (stock-and-ship vs. drop-ship)

� since 2008 rents are not passed to Delticom anymore ...

... because we pay them directly to the owners of the (bigger) warehouses

� more capacity to be added 2009

2.5

2.9

1.7

1.0%

1.4%

1.0%

+67.9%

-14.1%

0

1

2

3

2006 2007 2008

0,0%

0,5%

1,0%

1,5%

Stocking Tyres Margin

20.9

17.1

12.7

7.3%

7.9%8.1%

+34.3%

+22.5%

0

5

10

15

20

25

2006 2007 2008

6%

7%

8%

9%

Transportation Margin



Personnel (own and outsourced); Bad Debt

� 86 employees (2007: 78)� low staff levels due to efficient

business processes

� outsourcing partners for e.g.hotline, order processing

� 2008: wage levels increased, and additional parts of the value chain outsourced

� gives flexibility if the recession turnes into a depressions

� in difficult times, payment behaviour worsens

� wholesale: residual losses after credit insurance

� tightened credit management

5.0

4.3

3.0

1.7%

2.0%1.9%

+45.0%

+15.2%

0

1

2

3

4

5

2006 2007 2008

0%

1%

2%

Personnel Margin

3.8

2.9

2.1

1.2%1.4% 1.5%

+39.3%

+28.3%

0

1

2

3

4

5

2006 2007 2008

0%

1%

2%

Operation Centres Margin

1.9

1.1

0.9

0.5% 0.5%0.7%

+16.9%

+78.1%

0

1

2

3

4

5

2006 2007 2008

0%

1%

2%

Receivable Losses Margin



P&L Drivers

(schematic example calculation)

growth2008 2007 % factor 2008 2007 chng

Revenues 259.0 215.5 20.2 1.0 100.0 100.0 0.0Cost of sales 193.7 163.6 18.4 0.9 74.8 75.9 -1.1Gross Profit (simple) 65.3 51.9 25.6 1.3 25.2 24.1 1.1Direct costs 38.1 31.3 21.8 1.1 14.7 14.5 0.2

Direct costs (dep. on sales) 27.2 22.9 18.6 0.9 10.5 10.6 -0.1Transportation costs 20.9 17.1 22.5 1.1 8.1 7.9 0.2Warehousing costs 2.5 2.9 -14.1 -0.7 1.0 1.4 -0.4Operations centre costs 3.8 2.9 28.3 1.4 1.5 1.4 0.1

Direct costs (dep. on revenues) 10.9 8.4 30.7 1.5 4.2 3.9 0.3Credit card fees 1.8 1.8 -0.6 0.0 0.7 0.8 -0.1Bad debt losses 1.9 1.1 78.1 3.9 0.7 0.5 0.2Marketing costs 7.2 5.5 31.7 1.6 2.8 2.5 0.2

Contribution margin 1 27.2 20.7 31.4 1.6 10.5 9.6 0.9Indirect costs 10.3 8.8 16.5 0.8 4.0 4.1 -0.1

Personnel expenses 5.0 4.3 15.2 0.8 1.9 2.0 -0.1Rents and overheads 1.5 0.7 121.4 6.0 0.6 0.3 0.3Financial and legal costs 2.0 2.2 -6.5 -0.3 0.8 1.0 -0.2IT and telecommunications 0.5 0.4 17.4 0.9 0.2 0.2 0.0Other 1.3 1.2 5.1 0.3 0.5 0.6 -0.1

Contribution margin 2 16.9 11.9 42.4 2.1 6.5 5.5 1.0FX effects -0.8 -0.3 Other operating profit (w/o FX gains) 0.8 1.0 EBITDA 16.9 12.6 34.4 1.7 6.5 5.8 0.7Depreciation / Amortization 0.5 0.3 49.3 2.4 0.2 0.2 0.0EBIT 16.4 12.3 34.0 1.7 6.4 5.7 0.7Net financial result 1.1 1.1 2.9 0.1

Financial income 1.2 1.2 -5.4 -0.3Financial expenses 0.0 0.1 -90.1 -4.5

EBT 17.6 13.4 31.4 1.6 6.8 6.2 0.6Income taxes 5.9 5.0 16.3 0.8Consolidated net income 11.7 8.3 40.5 2.0 4.5 3.9 0.7

margin %

purchase price 50,00direct costs 6,00

56,00

preset margin (e.g. 25%) 14,00retail price 70,00

plus VAT (e.g. Germany 19%) 13,30gross retail price on shop website 83,30



Working Capital Management

► Changes in working capital reflect seasonal patterns

quarterly delta in € million

Accounts receivable

Inventories

Accounts payable

Working Capital

... Follow the seasonal peaks.

... Driven by sales (–) and capacity (+).(e.g. 2007 ramp-up)

... Discretionary payment terms, e.g.Q3 07: early paymentQ2 08: stocking for winter season

... Both + and –, with significant swings.2009: Prepare for increased cash consumption (inventories, terms).



34.5

16.4 0.5 -0.3 -1.6 1.5

4.5 1.1 -5.6

-1.2 -0.1 1.0 -7.9

0.0 -0.1 42.9

0

10

20

30

40

50

60Li

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1.12

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1.12

.08

0

10

20

30

40

50

60

19

Cash Bridge

Delticom continues to be strongly self-financed►

in € million



Agenda


Business Model


Financials

Outlook



Outlook

� Current trading in Q1:� no snowfall in January (less winter tyres), snowfall in February (no winter tyres)� unusually low temperatures in March� still: satisfactory yoy growth� remember

� Jan/Feb are months with low revenues � no indicator for Q1� Q1 is quarter with lowest revenues � no indicator for FY� remember base effect Q1 08

� ... German market (BRV)� 2008: summer ↓ 4.5%, winter ↓ 3.3%� 2009: summer ↓ 4%, winter ↓ 3% (revised after approval of Management Report)

� ... “Recession” vs. “Depression”: production �, prices �, demand �?

� Delticom not unaffected by recession, but other factors might (partly) offset effects:� Ongoing internationalization � diversified country portfolio� Recession in all European countries � customers are trading down� Delticom is online � good prices, good sales, good margins

� Revenues 2009: not more than +10%

� EBIT-Margin: > 6% treated as a positive surprise



Key Investment Highlights

#1 European online tyre retailer

Excellent growth opportunities

Strong cash flow, strong balance sheet

Resilient and profitable business model

Redesign of the tyre distribution chain

1111

2222

3333

4444

5555


Hanover, 30th March 2009 23

Vielen Dank!

Investor Relations:

Melanie GerekeDelticom AGBrühlstr. 1130169 Hanover, Germany

eMail: [email protected]: +49-511-93634-8903

Rainer BinderPurchasing and Pricing

Frank SchuhardteCommerce and Finance

Philip v. GrolmanLogistics and USA

Documents

A Firm Grip.selling tyres creates market intelligence, interesting for suppliers purchasing pricing eCommerce margin 26.7% (2007: 25.7%) Wholesale business 11.6% (2007: 11.9%) –