Update from Omnicar Holding AB

Omnicar Holding AB is now ready to announce

a new and exciting line of business

 
As previously announced, we will provide guidance for 2020. Our quarterly numbers in 2020 will not deviate much from our Q1 2020 report. We do not expect an negative deviation on revenue and profit in 2020 as long as Covid-19 remains under control 

However, we will here announce how we will grow the company in 2020 and going forward
 
We have previously announced our initiative regarding omnicarservice.dk

As we are determined to make a profit in 2020, we have considered various alternative ways of growing the business while staying in the black.

The situation around COVID-19 and its effect on the automotive industry, dilution issues and access to funding have also been evaluated 

Today, we have a solid and profitable software business, but limited financials and other resources. We take the view that it will be almost impossible to grow the business fast with the current financial backing.

Over the years, our software has generated more than SEK 450 million in recurring contract revenue for our dealers and importers. However, we see almost daily how slow the car industry is to provide alternatives to buying for their customers – especially during the car’s service cycle.On the other hand, we have seen how quickly the few dealers who really make an effort to sell services on subscriptions have accelerated their businesses. 

Think of this: As little as 1,000 service agreements with an average subscription term of 52 months at an average price of DKK 300 add up to more than SEK 15 million in terms of service contract value.

Having worked in the automotive industry for more than 15 years, we have extensive insights into customer and dealer behaviour, and we now want to claim our share of this market – starting with something every car on the market needs, a change of tires. From winter to summer and summer to winter – or simply a new set of tires. And as a customer you do not need to waste your time driving to the tire center – Omnicar Service comes to you, at exactly the same price that you pay today – but now offered on a tire subscription.

We will still be of service to our car importers and their dealers by offering our software solution, and this new initiative will in no way be at odds with our current operation – we just add a new line of business. And we wish to control the entire value chain and work with our customers direct. We do not wish to depend on a third party.

We aim to be fully operational from 1 October 2020 and begin operating in Copenhagen area

You can find more detailed information about this new line of business in the attached PDF-document and you are more than welcome to email me for questions