Slowdown in Q4/22, but impressive FY22 results

• AutoWallis posted revenue of HUF 61.4 bln for Q4/22 (+24% YoY), therefore during 2022 it generated revenue (HUF 270.2 bln) compared with HUF 195 bln in 2021.

• In addition to the organic expansion growth driven by wholesale of OPEL and SsangYong vechiles, the Slovenian AvtoAktiv’s retail sales also contributed significantly to the outstanding sales performance. More than half of AutoWallis' revenues come from export, which was also contributed to by the Slovenian Avto Aktiv, the purchase of which was closed in the spring of 2022.
• EBITDA dropped by 16% YoY to HUF 1.8 bln, resulting in an EBITDA margin of 2.9% (down from 4.2% in Q4/21), while total net profit attributable to shareholders of the parent company came in at HUF 0.9 bln (-7% YoY). As a result, EPS was HUF 2.14 in Q4/22 and HUF 19.3 in 2022 compared with HUF 2.5 in Q4/21 and HUF 9 in 2021, respectively, and broadly in line with our estimate.
• AutoWallis maintained its healthy capital structure, with the consolidated equity adequacy ratio staying at 27% at the end of 2022 significantly exceeding the level expected as a financing target (15%). The net debt/EBITDa ratio (including leases) stood at 2.6x at the end of 2022, compared to 0.7x at the end of 2021. In the past two years AutoWallis has strengthened its capital adequacy by increasing the portion of long - term fixed forint financing in its capital structure and the necessary resources to implement the growth plans set out in its medium-term strategy).