AVTODOM Group's revenue grew by 88% in 2021

The total revenue of AVTODOM Group for all types of activities increased by 88% at the end of 2021. End Quote

(1888PressRelease) March 12, 2022 - The total revenue of AVTODOM Group for all types of activities increased by 88% at the end of 2021. This amounted to 105.5 billion rubles excluding VAT against 56.01 billion rubles without VAT in 2020. The growth of financial indicators is associated both with the acquisition of new dealerships and with an increase in the performance indicators of all business areas.

AVTODOM is one of the most active M&A market participants in auto retail. The company has completed four transactions aimed at expanding business over the past 2 years. Three Audi dealerships and one Porsche dealership in Moscow joined AVTODOM in 2021. Two KTM motorcycle showrooms in Moscow and two motorcycle showrooms in Krasnodar: KTM and Ducati were opened. The opening of the AURUS showroom in St. Petersburg, which will become the brand's largest gallery, is planned for 2022.

The rating agency Expert RA for the first time assigned a credit rating to AVTODOM JSC at ruBBB- in April 2021. Expert RA upgraded the credit rating of AVTODOM JSC to ruBBB+ in October 2021. The rating outlook is stable. AVTODOM issued the first bond issue in 2021. The issuance of securities will continue in 2022, taking into account the economic situation in the country.

Sales of new cars
Sales of new cars account for 60.2% of the company's revenue. Sales of new cars in AVTODOM increased by 45% to 11,742 units against 8,086 pcs a year earlier, despite the overall growth of the Russian car market by only 4.3% in 2021. The result is ensured by constant market analysis in comparison with competitors, a balanced pricing policy and greater availability of new cars. The average cost of a new car in AVTODOM in 2021 increased by 23% to 6.02 million rubles. The share of sales including trade-in was 44%.

Used car sales
Sales of used cars ranked second in the company's revenue structure. It takes 23.2% of the total turnover. According to Autostat, the used car market grew by 8.2% in 2021. AVTODOM increased sales of used cars by 66% last year to 10,358 units against 6,241 a year earlier. The average cost of a used car in the company increased by 26% to rub 2,49 million.

Corporate Sales
Sales of new vehicles to corporate customers increased by 66% to 3,638 units against 2,186 pcs in 2020. The share of sales of new cars leased to legal entities increased by 25 p.p. up to 77% of the total volume of transactions.

Service maintenance
Service and sales of spare parts account for 12.7% of the company's revenue. According to the results of 2021, the total number of standard hours worked out by the AVTODOM locksmith and body shops increased by 88%. This amounted to 919,579 taking into account external and internal work. The decisive success factor is the staff: qualified, purposeful, friendly, involved. Other reasons for the growth in revenue from services are an increase in the cost of spare parts by an average of 22% in 2021, attractive service conditions for insurance companies and high premiums on insurance products.

F&I
Revenue from F&I accounts for 3.1% of the total revenue structure. The share of sales of new cars on credit to individuals in AVTODOM increased by 10 p.p. It amounted to 60%. In total, according to the NBKI, 1,006.6 thousand-car loans for new cars and used cars were issued at the end of 2021 in Russia. This is 11.1% more than last year. Casco penetration in AVTODOM increased by 28 p.p. at the end of the year. It reached 79%.

Motorcycle sales
Sales of new motorcycles in 2021 increased by 2.2 times to 1,975 units. 14% of retail transactions were completed using credit programs. Sales of used motorcycles showed a 40% increase. These amounted to 408 pieces. The average price of a new motorcycle remained virtually unchanged and stopped at around 1.3 million rubles. The average price of a used motorcycle increased by 124% to 1 million rubles. According to Autostat, the volume of the Russian market for new motorcycles amounted to 18.4 thousand copies in 2021. This is 12.6% more than a year earlier.

Car Subscription
AVTODOM Car Subscription service was launched in mid-2021on the basis of AVTODOM Group. It offers a technological and convenient way to own a new premium car. Interaction with clients and conclusion of transactions is carried out online on the website and through a mobile application. The AVTODOM Car Subscription fleet includes more than 100 cars of the brands BMW, Mercedes-Benz, Audi, MINI, etc. In 2022, the company plans to multiply the growth of this line of business and launch a subscription to motorcycles and electric vehicles, despite the uncertain situation in the country.

Staff
AVTODOM staff increased by 60%. It stood at 2,638 employees at the end of 2021. The company conducted a series of trainings with sales managers to the development of a new direction - remote sales using instant messengers last year. This helped employees to adjust to online sales and competently work with customers. One of the key values of the company is people who do not stand still. They grow and develop, outstripping the growth rates of the Russian automotive business. A team of experienced professionals works at AVTODOM. Many of them have been with the company for over 10 years. Such a wealth of knowledge and experience allows to provide customers with the highest quality service and offer the most favorable service conditions.

“I am sure that the experience gained over the years of work will allow us to professionally and timely provide comprehensive services for the sale and maintenance of cars and make the service as accessible as possible for our customers, despite the difficult situation in the country,” – Andrey Olkhovsky, CEO of AVTODOM Group, promised. – We are developing not only in auto retail. Already this year we plan to organize industrial assembly in CKD mode at the production facilities of our own enterprise. We consider auto retail as one of the components of an integral ecosystem. A bank, leasing and insurance companies, car rental services, etc. will be included in it in addition to dealerships. The combination of products for end users will maximize the efficiency of the entire holding and each individual line of business.”

* the indicators are given according to the summary data of management accounting of Avtodom JSC, subsidiaries and DC Altufievo LLC.

AVTODOM was founded in 1992. Today it is one of the largest automotive holdings in Russia, which specializes in sales and maintenance of premium and luxury cars. The AVTODOM portfolio includes 13 world famous brands: BMW, BMW Motorrad, MINI, Lamborghini, Porsche, Audi, Mercedes Benz, smart, Volvo, Land Rover, Jaguar, AURUS, Ducati and KTM. The company is represented on the market by 25 dealer centers located in Moscow, St. Petersburg and Krasnodar. AVTODOM is constantly developing, building new dealerships and updating the infrastructure of existing ones, actively expanding the sales of used cars and offering a full range of financial services, cooperating with reliable leasing companies and trusted partner banks.

AVTODOM share in profile brands in 2021:
• BMW – 16.4% Moscow, 22.8% St. Petersburg
• Audi – 35.7% Moscow
• Porsche – 5.8 Moscow, 32.4% St. Petersburg
• Mercedes-Benz - 20.6% St. Petersburg
• Lamborghini - 100% Moscow and St. Petersburg
• Jaguar Land Rover - 11.1% Moscow
• Volvo - 9.8% Moscow

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