Interim report 2017-01-01 – 2017-12-31
OmniCar” or the ”Company” means the Group, namely OmniCar Holding AB (registered under company registration number 559113-3987) and its wholly owned subsidiary Omnicar A/S. Omnicar A/S, which is the Group’s operating subsidiary, started doing business in February 2016. OmniCar Holding AB was formed in May 2017 by way of a non-cash issue in which the shares in Omnicar A/S were exchanged for shares in OmniCar Holding AB, which resulted in the group relationship. The transaction was treated as a transaction between jointly controlled companies for the purpose of providing the former holders of the shares in Omnicar A/S with shares in OmniCar Holding AB on a pro rata basis and there was thus no change in the group of owners.
The consolidated financial statements thus take the form of merged financial statements, i.e. as if the Group was formed on 1 January 2017. Comparative 2016 figures for the Group refer to the Danish subsidiary OmniCar A/S. No comparative periods are available for the parent company.
Q1 – Q4 2017 (2017-01-01 - 2017-12-31)
- Revenue totalled 15 418 TSEK.
- Profit/(loss) after financial income and expenses, net amounted to -5 039 TSEK.
- Earnings per share * -0,41 SEK.
- ** The solvency ratio was 93,0 %
Q4 2017 (2017-10-01 - 2017-12-31)
- Revenue totalled 3 529 TSEK.
- Profit/(loss) after financial income and expenses, net amounted to -3 236 TSEK.
- Earnings per share * -0,23 SEK.
*Earnings per share: The net profit or loss for the period divided by the average number of shares.
The average number of shares has thus been calculated according to the same principle as described above, i.e. as if the Group was formed on 1 January 2017.The average number of shares in the Group for the year amounted to 10 905 888 and in the fourth quarter to 12 517 449. The registered number of shares in OmniCar as at 31 December 2017 totalled 14 495 710.
**Solvency: Equity as a percentage of the balance sheet total.
Significant events during Q4 2017
OMNICAR signs an agreement with Bilernes Hus – Denmark’s largest car dealer. Bilernes Hus in Silkeborg has chosen OmniCar’s service agreement manager (SAM) as their primary solution when selling and handling service contracts. The contract period is 36 months.
New Board Member Andreas Klainguti has accepted to join the board of directors of OmniCar Holding AB. Andreas Klainguti will be replacing Mikkel Lippmann, COO at Omnicar Holding AB.
Andreas Klainguti has worked for more than 25 years in Investment Banking for Merrill Lynch, Standard Chartered Bank and Citigroup in Zurich, London and Hong Kong. As a Manging Director he was Head of Derivatives EMEA and Asia, Head of Global Equity Trading and Head of Global Strategic Risk. Since moving to Denmark in 2013 he has been advising various banks and hedge funds on business setup, risk and manager selection while running his own investment company.
OMNICAR reaches milestone - 100 customers
We are proud to announce that we have reached our initial goal for 2017, which was a total of 100 OmniCar SAM customers. We are now on track with our revised goal of 200 customers for 2017, as announced in our 2017 Q3 report. The market has responded very positively on our unique product suite SAM, and we have been able to attract some of the most prestigious car dealers in Denmark as customers.
The board of directors of OMNICAR HOLDING AB proposed a SEK 31,000,000 private placement of units
The board of directors of OmniCar Holding AB announced that it had decided to propose to an extraordinary general meeting on 21 December 2017 to resolve on a private placement of units of SEK 31,000,000 (the "Unit Issue"). Fifteen selected investors may subscribe for the units. The investors have undertaken to subscribe for the units if the Unit Issue is approved by the shareholders.
Report from the extraordinary general meeting of OMNICAR HOLDING AB. More detailed information about the contents of the resolutions may be obtained from the complete notice of the EGM and the complete proposals which are available on the Company's website www.omnicar.com.
Significant events post period end
OmniCar Holding AB signs an agreement with Bosch Car Service: Bosch Car Service, one of the most prestigious workshop chains in Europe, has chosen OmniCar's Service Agreement solution SAM as their primary solution when selling and handling service agreements. The contract includes Bosch Car Service Europe North, which includes the Nordics, the Baltic countries and the UK. Initially, the solution will be implemented among the 116 workshops in Denmark. In total Bosch have more than 700 Bosch Car Service workshops in Europe North. The parties agree to keep the commercial terms in the agreement confidential.
Appointment of VP of Sales: With effect from 1 March 2018, Tom Due Andersen is appointed VP of Sales. Tom Due Andersen brings along an extensive commercial experience from the auto industry, where he has been working as an executive for the past 13 years. Previously, he has been working for Ebay Motors, where he has been a major stakeholder in the company’s success in Denmark. Prior to Ebay Motors, Tom Due Andersen worked for ALD Automotive and Nordea Fleet.
Stig Jensen has decided to resign from the board of directors of Omnicar Holding AB for personal reasons. Omnicar Holding AB will appoint a new board member within two months.
OmniCar enters new sponsorship deal with the Danish Formula One driver Kevin Magnussen. Kevin Magnussen is a perfect match for OmniCar and the values that guide us in our work. He is focused, talented and driven by passion. He has already demonstrated that he has what it takes to come out on top, and we are proud that OmniCar can help contribute toward his further development.
CEO Claus T. Hansen has the floor
It is with great pleasure that I present our Q4 reporting which shows that everything we have forecasted has materialized and we are on track to reach an SEK 100 million annual recurrent revenue by the end of 2020.
We have been requested by our shareholders to provide the market with a more transparent picture of Omnicar's business performance. With this report, we will be presenting some of the KPIs that we use as a benchmark for our 2018 performance.
The KPIs are as follows
1. Number of dealers
2. Average length of service contracts
With this I wish to create more transparency and give our shareholders an instant view of our business progress. We will further enhance our KPI going forward to the coming financials reports.
Our business model
We have decided to change our license model going forward. Previously, we had a fixed license fee of DKK 2,495. But we have experienced that dealers who work on our platform quite fast add a significant number of service contracts with a higher average value and for a longer term than previously anticipated. As an example, we have dealers who have an average of 50 new contracts every month and we have importers who have added 1,400 service contracts within only 10 months, representing an accumulated value of SEK 11,5 million. In fact, they now sell service contracts to more than 30% of their car buyers.
With effect from 1 March 2018, we will introduce a new pricing structure. Dealers and workshops will be able to buy our solution for only SEK 120 per month + a 5% transaction fee; meaning that the dealers will have to pay 5% of their turnover to Omnicar. We have been pre-introducing the new pricing structure for the last few weeks with great success and our dealers are attracted to this new pricing structure. Current dealers on the old pricing structure will be offered to migrate to the new pricing structure as well.
After 12 months of using Omnicars solution a dealer has in average 200 service contracts, each with an average value of SEK 300. With just 1,000 dealers that turns into a total service contract turnover of SEK 60 million every month. This results in a monthly 5% recurring revenue fee to Omnicar of SEK 3 million (yearly SEK 36 million)
KPIs as at 28 February 2018
1. Number of implemented dealers: 268
3. Average length of service contracts: 54
In addition we have a solid pipeline of dealers and workshops and we are very confident that our 2018 target will be accomplished.
Our current cash balance is more than SEK 34 million, our growth is on track and with our current cash flow we are able to make all the needed investments to secure our overall short and long term business goals.
Finally, I wish to thank all of our shareholders for your trust and commitment.
Claus T. Hansen
CEO of OmniCar Holding AB
OmniCar Holding AB is required under the Swedish Securities Market Act (lagen om värdepappersmarknaden) to disclose the information provided herein. The information has been provided by the above contact person for publication on 28. February 2018.