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Delticom publishes Q1 business development

Hanover, 14 May 2018 – Delticom AG (German Securities Code (WKN) 514680, ISIN DE0005146807, ticker symbol DEX), Europe’s leading online retailer of tyres and automotive accessories as well as efood specialist and expert in the field of efficient warehouse logistics, publishes the key points of its business trends in the first quarter 2018 with this interim announcement.

Unlike in 2017, persistently cold temperatures in the first quarter caused a delayed start to the season in our core business in Germany. After a partly very mild January, icy temperatures prevailed in Germany and Europe: February and March 2018 were in the firm grip of winter. In Germany, March was on average 4.8 °C colder than in the previous year, making it one of the three coldest months of March in the last 20 years. Accordingly, the summer tyre business only started this year after the Easter holidays at the beginning of April. Last year, a few spring-like days in March prompted many drivers to convert early to summer tyres.

Industry experts estimate that approx. 20 % fewer replacement car tyres were sold to consumers by the German tyre trade in the first quarter. Against the background of unfavourable weather conditions, the Delticom Group’s revenues also declined in the first three months of the current fiscal year. Compared to the previous year, Group revenues fell by 12.6 % to € 110.8 million (Q1 2017: € 126.8 million). Due to the decline in sales, earnings before interest, taxes, depreciation and amortization (EBITDA) for the first three months also fell short of Q1 2017.

The transition from winter to summer tyre business typically takes place in the first quarter. The first three months of a year are therefore of comparatively little importance in terms of revenues and profitability for the year as a whole. Moreover, weather-related shifting effects are not uncommon in the tyre trade. The Management expects to catch up with the weather-related decline in Q1 revenues in the remaining weeks up to the end of May.

Outlook

The company confirms its full-year forecast for 2018. Accordingly, the Delticom Group continues to aim for revenues of € 690 million for the current fiscal year, accompanied by an increase in EBITDA of up to around € 14 million.

Delticom will report on the progress of its summer tyre business when it publishes its half-year report on August 14, 2018.

Company profile:

Delticom AG is an E-Commerce company operating primarily in Europe and the USA. It specialises in the design and operation of online shops, Internet-based customer acquisition, internet marketing, developing partner networks and complex, highly efficient product picking and distribution logistics.

Delticom AG is the leading online distributor of tyres and automotive accessories. Our product range also includes the online second-hand vehicle trade and efood. Delticom has extensive experience in creating shops for the international market and in trans-national E-Commerce. In addition to design, Delticom also provides product descriptions and a comprehensive customer service programme in your national language. Establishing efficient warehousing and logistics processes is utilised not only in selling tyres, used vehicles and online grocery shopping, but is also offered to third parties as an additional service.

Since its establishment in Hanover, Germany in 1999, the company has accrued exceptional expertise in designing efficient, fully integrated internal ordering and logistics processes. The company owns its own warehouses, including a fully automated small item warehouse.

In 2017, Delticom AG generated sales in excess of € 667 million. The E-Commerce specialist operates in 72 countries with over 430 online shops and online distribution platforms, serving over 11.4 million customers. The range of tyres offered to retail and commercial customers includes over 100 brands and more than 25,000 models of sedans, motorbikes, trucks, utility vehicles, buses and complete wheel sets. Customers are also able to have the ordered products sent to one of the 43,000 service partners of Delticom AG around the world.

Our range also encompasses over 300,000 automotive parts and accessories, including motor oils, snow chains and batteries. Entry into the business of online used car selling has rounded off the automotive offering. In this sense, Delticom AG has developed from a classic online retailer to an online solutions provider. Delticom AG also now offers a comprehensive range of around 20,000 different food items.

The shares of Delticom AG have been listed in the Prime Standard of the German Stock Exchange since October 2006 (ISIN DE0005146807).

Contact:

Delticom AG Investor Relations
Melanie Gereke
Brühlstraße 11
30169 Hannover
Tel.: +49(0)511-936 34-8903
Fax: +49 (0)89-208081147
e-mail: melanie.gereke@delti.com