CAR Group Limited

Nie możesz wyłączyć wyciszenia. Aby podnieść rękę, naciśnij gwiazdka 5. Spotkanie jest nagrywane. To są dane za sierpień. Nabywcą nowych samochodów są głównie firmy. To jest 70% rejestracji. I ceny nowych samochodów rosną. Przewidywania na 2025 pokazują, że może to wynieść prawie 15%. The presence of Chinese producers, their participation in the car park is not important at the moment, but as we have seen in sales, it is of great value, because it exceeds 10%. Most brands sell a small amount of cars. Similarly, as in each market, at the beginning there are many suppliers. You can see the leaders, NGO, Moda, Jaeko and EYD. And probably some brands withdraw from the European market. Manufacturers in our country market did not report losses. They lost mainly Japanese and Korean brands. Here, too, as we refer to the global market, when it comes to vehicle production, it can be seen that As Toyota is doing worse in Poland, despite the largest sales, its growth among these, we can say, old producers, i.e. regardless of Chinese producers, these growths are still the highest. Secondly, in terms of sales, in three quarters, Audi, another brand is Renault and Ford, but here we are talking about the entire global market. The Chinese are unquestionably strong in terms of their own market and new markets, such as Africa, South America. I know that they have exceeded sales in the whole of Europe by 5%, so it means that it is already an important player. which will be counted in the future, and this cake will be evenly distributed based on the needs of consumers. We see that cars used, especially those that are expensive cars, over 60,000, very often people, if they only have creditability, prefer to take into account Chinese cars, ... ... ... ... ... Polish capital. And today it is very difficult to find Deu on the streets, but we have also been selling parts of these vehicles for many years, so we believe that it will be similar in terms of these cars. By the end of October, almost 120,000 electric vehicles were registered in Poland. However, the market is slower than predicted and we see in general in Europe that motor control companies are investing again in fuel and hybrid technologies. Expecting a balanced market development, we predict that this market will be unstable, variable, there will be demand, this demand will be eliminated. So for large players who have greater stability, who will be conducting digitization of all processes or robotization, i.e. their cost will be reduced, will be able to best serve these peaks, in which it will be possible to best influence their own profitability. At the very end, I will summarize the results of the largest players, those who are noted in Europe, i.e. it is RKQ, which is part of a large group, but we refer only to the results on the European market. In the third quarter, LPQ has a drop of 4.7%. The second drop is from the United States, to which we also refer only for companies in Europe, i.e. for LNC Automotive Group, which is 0.9%. And MECO is also an astro company. We compete here from the Nordics and it is the most popular in Poland. The growth is 3.8%. It is worth noting that according to about 1% of the decline in LKQ, it is an elite that has been transferred to MECO, and in MECO the significant growth is the company that they took over in Poland. Increasingly, these increases look similar, so I will not go into details. We see in general that vehicle manufacturers do not perform as expected. In addition, competition with manufacturers from the Far East does not help. In addition, in recent weeks there have also been reports of Problems with semiconductors from a company that today belongs to the Dutch government, as I understand it, and previously belonged to a company from the Far East. It also translates into a lack of availability of certain products for the production of vehicles. There are two hypotheses. One hypothesis is that it will affect to the supply chain crisis. On the other hand, it may turn out that with such a crisis, companies from the Far East with this offer of Chinese vehicles will be able to expand even more, so it should not have a big impact to our market. However, it may have an impact on the availability of some of our producers or not, as far as the products from the Far East will enter this place, so this is an element that can be positive, but it may not change the environment too much. The end of the year is ahead of us. We will talk about it a bit later. However, we see that people who drive cars have to service these cars. And what we said, we have definitely moved to the market of not prevention, but reaction throughout our activity, which means that this demand will come and go in waves. We believe that our structure will be able to contribute positively to the results. I will now pass the floor to Piotr, who will discuss in detail the results of the third quarter.

Thank you very much, I welcome you once again. As usual, I would like to draw your attention to some financial data that we presented in the published report. In the third quarter of 2025, the Intercars Group once again increased its market share. We noted sales at the level of PLN 5.4 billion. This is an increase of 10% quarter to quarter, so this dynamic is similar to what we informed the market at the beginning of the year, what were our initial assumptions. It is higher than in previous years. However, the growth due to the fact that in the first and second quarter these dynamics were slightly lower, the growth dynamics is 8.4%. When it comes to the dynamics of sales measured in pieces after three quarters, this dynamic in pieces is getting closer and closer to this nominal dynamic, because the dynamic is 11%, so this gap, this difference between the value of the sale and the sale in pieces, you can see that this trend is decreasing. What does it mean that this price pressure on individual markets is less visible? Of course, everything here depends on this market specificity. As before, we see a bigger competitive fight on the Polish market, on the Lidów market, also in Łotwa. It is also worth noting that the share of sales in the country is still decreasing. The share of sales in Poland, compared to the sales of the entire group, is decreasing. At the end, after the third quarter, it reached only 38%. To compare, the participation at the end of the first half of the year is still 39.5%. In the last 9 months, we have established 19 new branches abroad and closed 4 branches in Poland. In general, by the end of September, we had 680 branches. What we wanted to pay attention to, what was of particular importance for the improvement of the results, First of all, what Krzysztof said about the Intercars group, the Intercars group received a higher sales dynamics from our competitors. Krzysztof showed comparisons to European competitors, which may be directly We do not compete so much, because in some markets, the largest ones are not yet present, but this statement that we are growing faster than local competitors is also true in most of the markets we are present in. And the second element of the improvement of results is, of course, the improvement of the margin, which we will talk about in a moment. And here I think that both this element of higher sales dynamics and margin improvement can be attributed to the competitive advantage that Intercards still maintains. And they are mainly led to a few things. First of all, the breadth of the offer, the availability of this offer, but also the technical competencies of our sales forces. So the competition is also very strong in the research that we conduct. The point when it comes to our advantages over competitors is also the distribution network and delivery time. and in general performance when it comes to our distribution network through the branches. These are key elements that influence the fact that Intercast maintains very strong advantages when it comes to competitors. And here it is also necessary to add what is associated with this complexity of the offer. It is necessary to add the issue of the implementation of individual strategy in segments that give us First of all, the ability to compete with local competitors, as if we were within one large company, we had several smaller companies, i.e. the ability to react quickly and adapt, as well as the realization of unique strategies, which, if set on one market and work, are It is possible to buy on the next markets. For example, there is a strategy in the tire industry. To date, we have sold about 7.5 million tires in the whole group in pieces. 7 or 8 years ago, we were talking about hundreds of thousands of tire pieces. When it comes to gross margin of goods for three quarters, we would like to point out that In the third quarter, the margin was 29.9% and was exactly equal to the margin at the end of the third quarter of 2024. This is a change in the trend that we would like to draw attention to, that we do not already note the decline in the margin from quarter to quarter. which took place in previous quarters. And here we also wanted to pay attention to such a key factor, which has a positive impact on the market, it is of course the scale of Intercars activity and therefore the scale of turnover with individual suppliers, thanks to which Intercars can achieve favorable purchasing conditions for its clients. When it comes to costs, The share of sales costs of the General Board for three quarters in relation to sales revenues was 14.3%. This is more than in the same period last year, when this indicator was 14%. Our ambition was to improve this indicator, It seems that in this period of the third quarter, despite everything, the influence on this indicator had two factors. The first is that despite this growing dynamics at the level of 10%, the turnover scale is still minimal. We assumed that it would be higher. in comparison to the size of the cost base. And the second element is that in the third quarter, looking for optimization, we tried to accelerate the process of robotization, in general, the process of changes in logistics, which would generate additional costs related to the acceleration of these logistics projects. But this, on the other hand, will lead to the improvement of this cost indicator in the third quarter and throughout the year 2026. Thanks to these changes, we think that these logistics changes will happen faster and we will be able to take advantage of these benefits earlier. Of course, we are still working on improving processes, especially in IT, as well as in the mentioned logistics. When it comes to financial costs, In the third quarter, we are talking about a fall in financial costs of about PLN 10 million, from PLN 44 million quarterly to PLN 34 million, which is primarily the effect of a somewhat 100% reduction, but above all the capitalization of the cost in connection with the finished logistics investments. I would also like to emphasize that the current debt level, despite the investments conducted, is at a safe level, slightly below 2. When it comes to profit, it is worth noting that the growth rate of profit is higher than that of sales and is 15%. And this also despite the fact that in the third quarter we made a report on the losses associated with the magazine in Ukraine, which we informed on September 5 in the communique. And to remind you, it is about the fire that destroyed one of the three magazines in Ukraine located in the town of Dnipro. It is somewhat related to the attack of the Russian forces. And here, as we informed you, Intercarz does not want to stop its activities in Ukraine. Our logistics operations are diversified. We carry out logistics operations based on three main warehouses. The other two are one warehouse in Kiev. and the second in the western part of Ukraine. When it comes to rotations and flows, the rotation level is 137 days and is at the same level as at the end of the third quarter of 2024. And that's all from me. As for the comment on the results, I pass the floor back to Krzysztof.

Time for summary. We are as Intercars, the fastest-growing distributor among the largest players on the market, despite the decline in demand in the selected markets of Central and Eastern Europe. It also looks better in the context of the entire global market. We see growth in 2025 in a stable aftermarket and the ongoing consolidation of the market, which rewards strong players such as Intercars. Konsolidacje napędzają rosnące koszty działalności i potrzeba poprawy efektywności. Nasza przewaga to wdrożona robotyzacja oraz automatyzacja procesów. W Rumunii kończymy robotyzację Magadyn w Braszowie. Kontynuujemy rozbudowę centrum logistycznego w Zakroczymiu. Wszystko w oparciu o system Skypod. Wartość inwestycji 235 milionów wydana dotąd 92. I zakończenie jest planowane na pierwszy kwartał 2026. Spółka... ILS Balkan launched a modern warehouse in Brasov. This is an investment of 250 million, also with SkyBot technology. And it can be said that it functions and achieves the scale of activity. That's the title of the summary of the third quarter and the growing three quarters of 2025. Now we invite you to ask questions.

We have some questions on the chat, so let me read them. Mr. Mariusz Chojda asks, congratulations for the good results of the third quarter. I would like to ask if you still see the deflation of the price of parts on the market? If so, what are the basic reasons? The Euro-PLN exchange rate seems to be relatively stable. What was the dynamics of the volumes? In the third quarter, Piotr answered this question. Did you introduce any noticeable increases in prices in the second half of the year?

As Piotr said, at least I heard that this deflation is getting smaller and smaller and we are more or less able to sum it up. Do we raise prices? It is difficult to compare us to other companies in the market due to the number of segments and products. However, we still see a lot of price pressure on the Polish market. and the fight to show who is better for the client. However, since this demand is low, most of these companies, and you will see in the next year, when there will be results for smaller players available for half a year, who publish these results in KRS, that it will definitely be covered by large losses. Therefore, everyone should take care of their margin. and at the same time take care of our clients, because the added value is more important, which enables them to attract clients, or faster customer service. This is our new motto, which is also visible on the screen. We release time, we drive development. We believe that even if there are clients who are aware of the price, i.e. sensitive to the price, and they are not satisfied with what we offer on the market, we believe that even the same idea with which we convey saving time, powering progress, because it is in the entire capital group, the brand strategy is now placed and a message that is to build our operationalization, which is based on the fact that the price is not the key, because the price can be delivered by anyone. However, with less demand, all added values ​​are important. If demand increases, logistics are also important. If someone says that the price and logistics are low, It is rather not possible. It is important that everyone is able to read our offer through the whole service prism. And Intercard is the cheapest company on the market, if we take into account all the values

in the context of the price we provide. If there was a question about the deflation of prices, I would like to make it more concrete. This is how the average is calculated. When you go for a walk with your dog, we have three legs on average and it is known that the average does not show us anything there. And it really is so that if we take For the whole group, the dynamics in pieces is, as I said, 11%. For the whole group, the dynamics of value is 10%, i.e. the difference of one percentage point. And I mentioned that countries like Poland, Lithuania or Latvia have these deflations a little bigger. And now I would like to concretize that, for example, when it comes to Poland, the dynamics in pieces is 6.2%, and the dynamics... And the value dynamics is 4.6%. So we say that it is slightly below 2 percentage points of this deflation in Poland. So we have this deflation as a whole, it is quite small, not to say that it is almost not there. However, on some markets it is slightly larger, as on the Polish market.

A question from Mr. Mariusz. Here is a correct note that the margin for the third quarter was 36. After the exclusion of the positive exchange rate, we have 29.9. And the question is how many quarters to the front can you really assume to maintain a margin of around 30%? What scenarios does the Board take into account in the case of a weakening of the gold against the euro and how such a change could affect the price and margin policy in the short and medium term?

I mean, we do not give, when it comes to forecasts, we do not give what forecasts we have, especially at the level of the margin. We have, so to speak, we have a LTI target as high as possible. However, I think that it is possible to answer this question directly. If in fact it were to weaken the złotówka in relation to the euro, then it would be as it happened in previous quarters, because there was not much of such a situation, but in previous years. Usually, the weakening of the local currency is more beneficial for us than its strengthening, because it gives us the opportunity to achieve higher margins for the products that we bought earlier, because the current price of sales is growing. Of course, it all depends on the competitive situation, when and how much goods our competitors have. But this is the general rule. If it were to go down to a decrease in the złotówka or any other local currency, for example the Romanian RON or the Czech crown, then on each of these hands it would be rather positive information. From the point of view of the market, of course.

A question from Ms. Sylwia Jaśkiewicz. What dynamics of revenues can be expected in the next year? I will also read another question from Ms. Sylwia. It seems that FEBR revenues have increased.

Is it a constant trend and what is the result? FEBR? Yes. We see a slow, but very slow rebound. Also, when we look at the results a competitor exactly listed on the market, i.e. Wilton, then fortunately we do not have this type of results. However, the market in vehicles is very difficult, just like the market in heavy vehicles, because the number of investments made, for example, within the framework of the KPO, or issues related to long-distance transport in Europe, due to the slowdown, we see what is happening with the PKB of individual countries, for example, the nearest neighbor, Germany, does not correspond proportionally to the demand for these vehicles. We are in specialized vehicles, so we try to compensate it in the export of vehicles that are dedicated to such niche businesses. And there we are just partially able to serve these orders. However, this year is very difficult for Febera and it is below our expectations.

This is maybe the first question. What are the dynamics of revenues to be expected in the next year?

I think Piotr noticed earlier that we showed our LTI targets. This is more or less our three-year plan when it comes to our volume ambitions. However, whether they will be realized and in what percentage, today there are too many variables and unknowns to be able to determine Jaki jest target? To, co chcielibyśmy utrzymać, to podobny wzrost jak w tym roku, czyli dwucyfrowy.

Czy target LTI na przyszły rok to jest dla przypomnienia 10% dynamiki sprzedaży? Myślę, że możemy powiedzieć, że nadal w to wierzymy. Oczywiście nikt nie ma szklanej kuli i jakby nie jesteśmy tego w stanie... For example, in the fourth quarter, we are not sure about the dynamics of sales of tires, because it depends on weather factors that are independent of us. Historically, we were rather close to our forecasts. it seems that such an assumption of 10% increase could be adopted for the next year.

I think that this is also an answer to the question of Mr. Andrzej Kosiński. Now a question from Mr. Mateusz Chrzanowski. What can be the consequences of confusion around Nexperia? On the one hand, production difficulties can limit the restrictions of new cars, and this, as I understand it, would benefit the demand However, the second producers can redirect their production power to the aftermarket market, which would generate additional deflection pressure.

Yes. As I said, it can give two effects. Either there will be a positive effect for us, that there will also be a problem, because if there is not even production and there will be less parts needed for production, then most of the disruptions are that you have to extinguish many factories. This also means that there are no parts on the OE market and there is no aftermarket market. We have some alternative and it was shown by Covid. At the beginning, mainly companies that did not deliver on the first assembly had availability. This is an example of such companies as Febi. e-mails, as well as all their own brands. Plus, if someone had a supply of Tier 1 products and then we had these supplies, then we also had not only a margin, but also a large sales dynamic. Of course, there are also companies that have separate aftermarket departments, large departments. This is Bosch's example. In the pandemic, Bosch also had great availability. In a given company, Tier One, the factory works under the plane of these two areas, i.e. the aftermarket client buys from the factory, which is mainly dedicated to the first assembly. There, due to the fact that there is no first assembly, the financial director makes a decision to reduce the funds dedicated to production and both the first assembly and the part to the manufacturer's network, as well as the distributor's part, there are fewer parts. Today, Piotr said that our advantage is that we have many alternatives, and in the case of many competitors on the market, due to the scale of activity, i.e. that these companies are smaller, they are not able to realize several contracts, they have to focus on some supplier. So when some supplier, their key, suddenly has no availability, they have one alternative. If there are not two of them, they just lose the turnover. And this is probably what distinguishes these big players, that they are able to place orders in a better way. Later, much smaller companies have to constantly jump to bonus plans. Bigger companies naturally have different traps, because they start planning production, so entering this game is also more difficult for smaller players.

It may turn out that the level of rotation that we have and the width of the offer, as well as many so-called cross, i.e. a dozen or so suppliers to one product line in this situation, potentially approaching disruption, when it comes to supply chain, may be our advantage.

Yes, but on the other hand, let's remember that in place of these vehicles, much more interest in the market can be gained by Asian vehicles. The client will buy Asian vehicles, so European vehicle manufacturers will sell fewer vehicles and will have fewer opportunities to serve clients from new vehicles. But this year, for example, Volkswagen, when we look at it, in a market like Poland, it has very good results. But in the group, these results, Porsche is very bad, so you can see that This policy, even the offer policy, the model policy, very much defines the sales later. So I would say that for us, vehicle manufacturers are not the topic for today, because they have to transform their portfolio anyway. What has changed is that they put on one drive,