Auto1 Group U/Adr

Hello, I'm Philip Reikersdorfer, Director Corporate Finance at OtterOne and looking after investor relations. Welcome today to our presentations for the results for the first quarter of 2021. We are joined today by Christian Bertermann, our CEO and co-founder, as well as Markus Boser, our CFO. Before we start, may I remind you of the disclaimer at the front of the presentation today regarding forward-looking statements. Also, as you know, we will take questions after the presentation. To ask a presentation, please use the chat function in the webcast, the button with the question mark on the left of the screen, and then once you have your questions in, we will sort them at the end of the presentation and go through the questions. And with that, over to Christian.

Hi, everyone, and welcome to this earnings call. I wanted to start by giving you a strategic update on all of our business units and then hand over to Marcus for detailed financials. So as you know, at Auto One, we're building the best way to buy and sell cars online. Let me quickly remind you why Auto One is such a unique opportunity to invest. So we're operating in this incredibly large market. 700 billion euro of volume that market is moving online faster triggering that moving online of the european customer base with our advertising we're the number one company in this market already by total units sold and we have built a unique sourcing and technology platform that enables our future hyper growth and we're very well on our way to build the leading online car retailer with auto hero We have made huge progress with our mission in the first quarter of this year. We've worked incredibly hard in Q1 and delivered on all of our key objectives. So in Q1, we scaled our AutoHero deliveries much further. We've taken our brand building to the next level. And we did this while maintaining the AutoHero gross profit per unit in line with our guidance. And also in the merchant business unit, we grew C2B and remarketing units despite ongoing challenges by the COVID environment across Europe. And also in Merchant, we scaled further while maintaining gross profit per unit within diamonds. So you can see on the next slide that we are realizing our Autohero growth plans at high speed. We've delivered an impressive 87% Q1 over Q4 growth in Autohero units. Our Q1 this year is more than three times larger than our Q1 last year. Those numbers show you how well our Auto Hero value proposition is received by our customers. European customers are starting to appreciate the benefits of ordering their car completely online. And at the same time, you can see in those numbers how capable the team is in scaling the Auto Hero business across nine markets at the same time. So on the next slide, you can see that in Q1, we have sourced nearly all of our delivered units from private customers with a 99% share. This puts us in a top position long-term when it comes to realizing our full GPU potential. And we wanted to remind you of that unique sourcing channel that AutoOne owns. So both CarMax and Kavana see units sourced from private customers being the more profitable units. We think that long term, our share of privately sourced units will be around 60% to 70%. Now let's talk about brand building. So we have intensified, on the next slide please, our Autohero brand build up. You can see on the left that we have increased web sessions on the Autohero platform by more than 2.4 times in just one quarter, with the traffic and marketing ramp We really are becoming the go-to online destination for ordering your next car. And the customers on the platform, they're showing massive interest and curiosity towards the Autohero product across all our markets. We're driving brand awareness and demand per car upwards in all of our nine markets in parallel. And we want to show you on the next slide a little bit of showcase for Germany. So Germany really demonstrates the power of our marketing machine nicely. We spent 4 million euros in Q1 in Germany to drive up awareness in our target group, which is 18 to 44 years and male. With our first wave of branding campaigns, we nearly doubled the awareness in that group and brought it to a total of 17%. So that is already 70% higher than in the general population. And in this broader audience, adults 18 plus, Auto Hero now has a brand awareness of 10%, which was coming from 6%. So you can see that we've really built up top awareness levels with the group that is most affine to buy their next car online. And we're only at the beginning here. You can see on the right that we're smartly connecting the different advertising channels like YouTube or TV with sponsorships to create the maximum output of our brand budget. In May, for instance, we announced that we're becoming the main sponsor of the DTM, the most important German racing series. This recognition of the Auto Hero brand, you can see a picture on the next slide in large scale. It looks actually pretty cool. So our truck, I'm pretty sure, won't win the race, but Auto Hero will win the race. So this recognition of the Auto Hero brand and not advertising channels we further speed up our brand building efforts. And going forward, we expand that brand building in Germany to all relevant demographics because we see early data, web traffic, and also demand per car being so positive in development. We aim to establish Autohero as a majority known brand in Germany. And we're very well on our way when it comes to realizing that goal. So let's talk a little bit about AutoHero product development. On the AutoHero product development side, we have released our trading functionality for Germany. This is pushing our customer experience further ahead. So we've taken our sell from home funnel from the merchant business and we adapted it to best fit the AutoHero platform experience. So this means you just enter your car details and you will quickly receive your trade and offer which you can then apply against the price of your new car. And when we are delivering your car with our AutoHeal truck, we're able to pick up your trade-in directly after we handed you over your new car. And that is just the best customer experience possible in our eyes. We will roll out our trade-in module across Europe step by step. And yeah, we have a little video that is coming up here now, which is the new ad spot for trade-in, which has been launched in Germany, I think two weeks ago.

Okay, I hope it's finished now.