AUTO1 GROUP (AG1) investor relations material

Strategic Vision, Business Model, and Market Opportunity

• Operates a vertically integrated digital automotive platform with proprietary data, AI-powered pricing, pan-European logistics, and embedded financing, targeting both consumer and merchant segments.

• Scaled from 230 cars in 2012 to 842,000 in 2025, with over 6 million cars traded since inception and operations in 30+ countries.

• Holds a 3.1% share in a €700 billion European used car market, aiming for 10% long-term share in a fragmented market with over 250,000 dealers.

• Brand unification, network effects, and high brand awareness (over 60% in major markets) reinforce growth and operational leverage.

• 77% of consumers are dissatisfied with current car buying experiences, highlighting disruption potential.

Financial Performance and Targets

• Group revenue projected at €8.2 billion in 2025, with adjusted group EBITDA of €100M in 2024 and nearly €200M in 2025.

• Merchant segment: 2025 revenue €6.4B, gross profit €723M, adjusted EBITDA €239M (3.7% margin), GPU €1,080–€1,200, and adj. EBITDA per unit €480–€720, targeting 10–15% annual growth.

• Retail segment: 2025 revenue €1.76B, gross profit €268M, adjusted EBITDA -€42M, GPU €3,880–€4,470, and adj. EBITDA per unit €1,450–€2,410, targeting 20–40% annual growth.

• Milestone targets: 1.2M merchant units at €1,025+ GPU and €400+ EBITDA/unit; 300K retail units at €3,300+ GPU and €800+ EBITDA/unit.

• 2026 guidance: total units 940,000–1,000,000, gross profit €1.1–€1.2 billion, adjusted EBITDA €250–€275 million.

Key Operational Drivers and Investments

• Merchant TAM: 10M units external dealer demand, aiming for 20–25% share; supply-side TAM 10–15M units, targeting 2.5–3M units bought annually.

• Retail TAM: 15M directly addressable units, with C2C market share expected to decline.

• Branch network expansion to 1,200–1,400 locations, aiming for 90% of sellers to reach a drop-off within 13 minutes.

• AI and automation to drive cost efficiencies in marketing, operations, and overhead, targeting to halve overhead costs per unit.

• Integrated captive finance business expanding from 3 to 9 markets, targeting 50–60% attachment and €870–€1,100 GPU per retail unit.