Analysis of Financial Results

The results for 2022 point to the best year yet in Autonom’s 16-year history and are testimony to a sustainable long-term growth strategy. While still in an uncertain and unpredictable context generated by the worsened supply chain failures and the protracted conflict in Ukraine, to which the effects of the energy crisis, the increase in the price of raw materials, the galloping inflation and the climate crisis were added, we registered growth in all business lines in 2022 and achieved the highest profit so far.

The results for 2022 are the consequence of Autonom’s sound business model, built to withstand external shocks, but also of the management team’s experience and the involvement of all team members. Autonom’s total revenues in 2022 amounted to RON 647 million, an increase of RON 253 million (64%) compared to 2021, and the net profit rose from RON 22.4 million to RON 57.8 million (+ 157%).

We continued to strengthen our market position both through organic growth, by 80%, and through new acquisitions, such as Premium Leasing, Țiriac Group’s operating lease division, which had a 20% impact in increasing the turnover.

In 2022, the operating lease business saw an increase in its revenues by 58% compared to 2021, the revenues from short-term rentals increased by 52%, and the proceeds from the sale of used cars increased by 54%, an outstanding performance when transposing significant events over the year into figures.

Dynamics of operating income in 2022

Autonom’s operating income in 2022 increased by 64% compared to 2021, and the factors that drove the revenue increase were addressed in the previous chapter.

Autonom’s operating expenses increased by 61% in 2022 compared to the similar period of 2021, mainly driven by the 38.37% increase in the average number of motor vehicles being operated.

Of the total expenses in 2022 in the amount of RON 551.6 million, the share of the main cost categories was the following:

• Expenses incurred for fleet maintenance: 20% - expenses for repairs, parts, fuel, insurance, parking, car washes and other expenses; up 66%, in line with the increase in the number of cars at the end of the periods under review. This type of expense is a challenge in the current context of inflation, particularly given that the rent set out in operating leases is fixed, regardless of the economic circumstances. Its level is a direct reflection of the operational excellence put into practice to optimize flows.
• Employee costs: 8%, up 36% compared to the previous year, driven by a 28% increase in personnel and by salary increase. With the growth of the business, it is only natural that salary costs would go down in terms of percentage as revenues go up. Considering the importance we attach to human resources, we decided to increase the cost side of salaries with the growth of the business.
• Expenses incurred for amortization, depreciation and impairment of the car fleet and equipment - they accounted for 32% of the total expenses and were up 56%, following the same trend as the car fleet.
• One of the factors that impacted the dynamics of operating profitability concerns the amounts entered under “Other net losses/gains” which includes provisions for the impairment of trade receivables. In 2022, there was an effect of impairment of receivables in the amount of RON 8.25 million compared to RON 4.65 million. Fluctuations are, for the most part, caused by specific situations (e.g. unlikely collection of receivables previously identified to be at risk of non-collection or customers for which matters were identified during the period under review that led to making additional adjustments) which impacted the various categories of receivables, including full provisions for existing receivables from Euroins.

Net profit in 2022

The net profit achieved in 2022 amounted to RON 57.8 million, up 157% compared to 2021. This result is due to the maximization of revenues by optimizing the use of available resources, but also by increasing the customer base and the rates charged.

Elements of dynamics of assets, liabilities and equity in 2022

The main assets of Autonom Services are represented by the fleet under operation; the two balance sheet items that account for the dynamics of these assets used in operating lease and rent-a-car services are “Rental fleet and rental equipment” and “Right-of-use assets”, where the first item reflects the motor vehicles purchased using operational cash-flows, bank loans or bond issue, and the second item reflects the motor vehicles purchased under financial leases.

The aggregate value of the two items moved forward by 66% as at December 31st 2022 compared to December 31st 2021, which reflects the growth dynamics of the fleet operated by Autonom Services in both business lines.

Autonom is the largest car buyer in Romania. In 2022, 6.329 cars were added to Autonom’s fleet, including by acquiring Premium Leasing, making up a 41.43% increase in the total fleet.

The cash and cash equivalents amounting to RON 60.2 million as of December 31st 2022 point out Autonom’s solid financial position. The 20% (- RON 40 million) decrease relative to the level in 2021 is justified by the investments made by the Company to purchase assets. Autonom unlocked the cash vehicle purchases in order to capitalize on the opportunities arising from the increase in 2022 in sustainable demand for short and long-term rental services in the market niches targeted by the business model systematically refined by Autonom team over the years.

Autonom also received considerable financial resources in the amount of Eur 15 million from a European Investment Bank financing.

As for the means of fleet financing, i.e. debt instruments, as at December 31st 2022, Autonom opted for a balance between short-term and long-term financial liabilities as follows: corporate bonds (30%), financial lease (39%) and bank loan (31%).

In terms of dynamics, the financial liabilities of Autonom Services as at December 31st 2022 amounted to RON 1.106 million compared to RON 728 million at the end of last year, up 52%, in line with the car fleet growth dynamics.

Another important source of financing is equity, which increased by 45% compared to the previous year and reached RON 187 million from RON 129 million. In order to ensure the sustainable growth of its business, Autonom decided not to pay dividends.

Another important aspect is the achievement of financial indicators agreed with investors. The challenge in 2022 was to integrate Premium Leasing, i.e. to incorporate 8 months of EBITDA in the results, considering that the loans had been fully recognized.

Rising purchase prices and new car delays have caused us to build car inventories so we can promptly accommodate our customers’ mobility needs.

Therefore, significant cash outflows were redirected to the purchase of cars, and the cash reserves at the end of 2022 were RON 160.2 million, down 20% compared to 2021.