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    DEX   DE0005146807

DELTICOM AG

(DEX)
  Report
Real-time Estimate Tradegate  -  05:30 2022-10-04 am EDT
1.945 EUR   -1.52%
09/29Delticom : Change in Delticom AG's Managing Board
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08/11Delticom AG Reports Earnings Results for the Half Year Ended June 30, 2022
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PRESS RELEASE : Delticom AG: Turnaround succeeded! Positive net income of EUR 7 million despite decrease in revenues // Expansion of the Management Board // Continuation of the US business

03/26/2021 | 03:44am EDT
DGAP-News: Delticom AG / Key word(s): Annual Report/Annual Results 
Delticom AG: Turnaround succeeded! Positive net income of EUR 7 million despite decrease in revenues // Expansion of the 
Management Board // Continuation of the US business 
2021-03-26 / 09:41 
The issuer is solely responsible for the content of this announcement. 
=---------------------------------------------------------------------------------------------------------------------- 
Delticom AG: Turnaround succeeded! Positive net income of EUR 7 million despite decrease in revenues // Expansion of the 
Management Board // Continuation of the US business 
Hanover, March 26, 2021 - Delticom AG (German Securities Code (WKN) 514680, ISIN DE 00005146807, stock market symbol 
DEX) today published its Annual Report 2020. 
  . Measures taken across all business units to reduce costs, optimise processes and increase efficiency had a 
    sustained impact 
  . Significant improvement in EBITDA 
  . Positive net income in the amount of EUR 7 million in 2020 - after a loss of EUR 41 million in 2019 
  . Clear focus on profitability also in 2021 
Market environment. The Corona pandemic and the associated restriction of mobility did not remain without consequences 
for the demand of replacement tyres last year. According to the German Rubber Industry Association (WdK) and the 
European Tyre and Rubber Manufacturers' Association (ETRMA), 10.4 % fewer replacement tyres were sold to consumers in 
Germany last year. Looking at the European replacement tyre market, the ETRMA figures also show a downward trend in 
sales. In the largest sub-segment by volume, 12.1 % less consumer tyres (passenger, SUV and light truck tyres) were 
sold over the year as a whole. In absolute terms, this corresponds to a decrease of more than 26 million units. 
Revenues. Over the course of 2020, Delticom group generated revenues of EUR 541.3 million, a decrease of 13.5 % from 
prior-year's EUR 625.8 million. The discontinuation of unprofitable business areas led to a decrease in revenues of 
around EUR 30 million compared to the previous year. Revenues in the core business in the past financial year are 9 % 
behind the previous year due to cost-cuttings in marketing and price adjustments. The pandemic-related restrictions at 
the relevant times of the season in the European core markets in both the summer and winter business and the overall 
reduced mobility led to a significant decline in demand for replacement tyres in Europe last year. Our business 
performance is not completely independent of the underlying market development. Notwithstanding this, we assume that 
those tyre buyers who were unable to postpone the purchase of replacement tyres last year increasingly took advantage 
of online tyre purchasing. Our focus on profitability last year was accompanied by the objective of generating 
sufficiently profitable revenues. With regard to the weaker business development in December, the lower end of the 
forecasted revenues range (EUR 550 million) was undercut by 1.6 %. Due to the renewed lockdown measures in Europe and the 
tightening of the lockdown in Germany at the seasonal peak, which was delayed due to the weather, revenues at the end 
of the year were somewhat weaker than we had expected. 
Gross margin. The gross margin (trading margin excluding other operating income) came in at 22.7 %, compared with 21.6 
% the previous year. In line with its objective to sustainably increase profitability in its core business, the company 
succeeded in increasing its gross margin in a difficult market environment influenced by Corona. 
Other operating income. Other operating income decreased in 2020 by 12.4 % to EUR 33.0 million (2019: EUR 37.6 million). In 
the course of the past financial year, the opportunity arose to realise a profit contribution from project development, 
which was realised at the end of the reporting year. This contribution to earnings amounts to EUR 9.5 million. In the 
previous year, income of EUR 14.0 million was generated from the participation in an ongoing logistics/property project. 
The year-on-year decrease in other operating income is therefore not attributable to the operating business, in which 
marketing subsidies, proceeds from transport losses and other income are regularly recognized. In addition, other 
operating income includes gains from exchange rate differences in the amount of EUR 3.7 million (2019: EUR 3.4 million). FX 
losses have been accounted for as line item in the other operating expenses (2020: EUR 5.4 million, 2019: EUR 6.5 million). 
In the reporting period the balance of FX income and losses totalled EUR -1.6 million (2019: EUR -3.1 million). 
Gross profit. In the reporting period, gross profit decreased by 9.7 % from EUR 172.7 million to EUR 155.9 million compared 
to the previous year due to the decreasing revenues development. Gross profit in relation to total income of EUR 574.2 
million (2019: EUR 663.4 million) amounted to 27.1 % (2019: 26.0 %). 
Personnel expenses. On 31.12.2020, the group had a total of 177 employees (including trainees). In the reporting period 
on average 196 staff members were employed at Delticom group (previous year: 261). Personnel expenses totalled EUR 14.3 
million (2019: EUR 19.9 million, -28.4 %). The discontinuation of non-core businesses since the end of the 2019 financial 
year was gradually accompanied by a corresponding reduction in staff within the Delticom Group. The personnel expenses 
ratio (staff expenditures as percentage of revenues) amounted to 2.6 % in the past financial year (2019: 3.2 %). 
Other operating expenses. Among the other operating expenses, transportation costs is the largest line item. Due to the 
decline in sales volumes and the measures implemented last year to further improve cost efficiency in the area of 
transport logistics, transport costs in the reporting period were with EUR 50.1 million 19.3 % lower than in the same 
period of the previous year (2019: EUR 62.2 million). 
Marketing. Marketing expenses in the reporting period amounted to EUR 18.9 million, after EUR 28.6 million in the previous 
year. The significant decrease of 34.0 % is the result of comprehensive cost-cutting measures. The efficiency and 
contribution to earnings of the various marketing channels within the Delticom Group are closely monitored by means of 
a marketing controlling system newly set up last year, in order to allocate the measures in line with the sales and 
profitability targets. The marketing expense ratio is 3.5 % of revenues (2019: 4.6 %). 
EBITDA. EBITDA for the reporting period increased by 326.6 % from EUR -6.6 million to EUR 15.0 million. The EBITDA margin 
for the fiscal year stood at 2.8 % (2019: -1.1 %). The significant increase in the operating result before interest, 
taxes, depreciation and amortisation in the last year goes hand in hand with the consistent cost management, the focus 
on the core business and the measures taken to increase margins and efficiency. The realized contribution to earnings 
from project developments in the amount of EUR 9.5 million compensated for both the extraordinary charges from 
restructuring in the amount of EUR 6.7 million and the EUR 0.5 million negative EBITDA contribution of the business units 
closed in the course of the year. 
Depreciation. Depreciation on property, plant and equipment decreased in the year under review to EUR 2.1 million (2019: 
EUR 11.5 million). In the 2019 annual financial statements, impairments of EUR 7.9 million had to be recognised in 
connection with the deinvestment concept. The amortisation of intangible assets amounted to EUR 2.2 million in 2020 
(2019: EUR 19.1 million). The decision to close unprofitable business units in 2019 as part of the restructuring concept 
resulted the same year in impairment losses of EUR 14.2 million on the corresponding assets of these business units in 
preparation for the discontinuation of operations. Due to the capitalization of the long-term lease for the warehouse 
location in the border triangle France, Germany and Switzerland, depreciation and amortization for rights of use 
according to IFRS 16 increased from EUR 4.8 million in the previous year to EUR 5.4 million. Overall, depreciation and 
amortisation decreased by 72.7 % from EUR 35.4 million to EUR 9.7 million in the reporting period. No material impairment 
losses were recognized in the fiscal year under review. 
EBIT. The EBIT achieved in 2020 amounted to EUR 5.4 million, after EUR -42.1 million in the previous year. This corresponds 
to an EBIT margin of 1.0 % (2019: -6.7 %). In addition to the factors already described as having had a negative impact 
on earnings in the 2019 financial year, impairments on non-current assets of EUR 22.1 million were also necessary in 
connection with the deinvestment concept in the 2019 annual closing. The company has thus largely brought forward the 
factors affecting earnings from the closure of unprofitable business units to the 2019 group financial statements. 
Accordingly, no significant impairments were necessary in the 2020 financial year in connection with the closure of the 
various business units. The extraordinary factors of restructuring and refocusing, which had a negative impact on 
earnings last year, were fully compensated for by the extraordinary contribution to earnings from project developments. 
As a result, the improvement in EBIT last year is largely attributable to the positive development of costs and margins 
in the core business. 
Income taxes. Due to the positive pre-tax earnings (EBT) of EUR 2.6 million, there is a current expense of EUR 0.9 million 
in the item "Taxes on income". The income in 2020 mainly results from the capitalization of deferred taxes on loss 
carryforwards in the amount of EUR 5.2 million, which Delticom can use in the future. This results in total tax income of 
EUR 4.3 million for 2020. In 2019, the tax income amounted to EUR 2.7 million. 
Net income. The consolidated net income of EUR 6.9 million (respectively EUR 0.55 per share) is significantly higher than 

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March 26, 2021 04:43 ET (08:43 GMT)

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Financials
Sales 2022 490 M 482 M 482 M
Net income 2022 4,20 M 4,13 M 4,13 M
Net Debt 2022 45,3 M 44,6 M 44,6 M
P/E ratio 2022 7,05x
Yield 2022 -
Capitalization 29,3 M 28,8 M 28,8 M
EV / Sales 2022 0,15x
EV / Sales 2023 0,15x
Nbr of Employees 178
Free-Float 55,7%
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Number of Analysts 1
Last Close Price 1,98 €
Average target price 6,90 €
Spread / Average Target 249%
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Managers and Directors
Andreas PrŘfer Chief Executive Officer
Johannes Georg Schmidt-Schultes Group Chief Financial Officer
Alexander Gebler Chairman-Supervisory Board
Alexander Eichler Chief Operating Officer
Michael Th÷ne-Fl÷ge Vice Chairman-Supervisory Board
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