ELMO Rent AS provides commented analyzes for the 2021 indicators
The company hereby submits previously submitted stock exchange reports, supplemented with relevant information.
The size of the vehicle fleet owned by ELMO Rent
Prior to the public offering on 06.2021, there were 66 vehicles (see IPO introduction on page 25) and as of 11.2021, 128 vehicles. Change +62 vehicles, increase +93%.
The following models are in the fleet:
1) electric car models: Nissan Leaf, VW e-up, Skoda CitiGo, Peugeot e-208 GT, Renault Zoe, Skoda Enyaq, Tesla Model 3;
2) hybrid car models: Renault Clio, Renault Arkana, Toyota Yaris, Toyota Corolla;
3) electric motobikes: Super Soco TC Max, Super Soco CPX, Super Soco TC, Super Soco TCx.
The vehicles shared will be added, ie environmentally friendly (electricity, hybrid, green gas) personal vehicles for distribution to customers. An average of 10 vehicles per month, the following models are available for sharing: Renault Zoe, VW ID3, Toyota Prius, Nissan Leaf, Peugeot e-208, VW Caddy, VW Passat, Audi A5 and others.
See attached GRAPH NR 1: change in the number of vehicles in the vehicle fleet owned by ELMO Rent AS in the period of 01.2019 - 11.2021
Mileage of ELMO Rent vehicle fleet (owned and shared vehicles) every month
While in 2020 our vehicles (owned and shared) covered a total of 803,972 kilometers (581,272 km in the third quarter of 2020), then in the third quarter of this year there were covered 1,379,243 kilometers, YOY growth of 137%. By the end of 11.2020 717,670 km had been covered, but by the end of 11.2021 already 1,862,497 km had been covered, which makes the increase in YOY 159%.
See attached GRAPH NR 2: Total mileage of ELMO Rent AS vehicles in the period of 01.2019 - 11.2021
CO2 emissions from the vehicle fleet
The higher the mileage of ELMO Rent electric and hybrid cars on Estonian roads, the lower the total amount of CO2 emitted into the air in Estonia. In the first nine months of 2021, 168,267 kilos of CO2 were not emitted by ELMO Rent's vehicle fleet, which is an increase of 137% (70,915 kilos of CO2) compared to the first nine months of 2020. 11.2020 versus 11.2021 increase of 159% more CO2 savings (87,556 kg CO2 versus 227,225 kg CO2, respectively)
See attached GRAPH NR 3: CO2 saved by ELMO Rent AS vehicle fleet in the period of 01.2019 - 11.2021
Increase in sales revenue in the period of 01.2019 - 11.2011 (with a forecast for the period of 01.2021 - 11.2021)
The sales revenue in 2019 was 277,863 EUR; in 2020 was 449,006 EUR, as of 11,2021 it was 1,013,732 EUR (forecast 1,075,000 EUR at the end of 12.2021), which makes the growth of YOY 61% and 139%, respectively.
The reason for the rapid growth in 2021 was the raising of funds from the Nasdaq First North alternative stock exchange, which increased the sales turnover in the period of 01.2021 - 06.2021 versus 07.2021 - 12.2021 (forecast) 230,672 EUR versus 844,328 EUR, which represents an increase of 266% compared to the half of the year (compared to 07.2020 - 12.2020 315 006 EUR, the increase in the same period in 2021 was 168%).
ELMO Rent did not fulfill the planned forecasts on 05.2021 - 06.2021, which was caused by delays in the delivery of the ordered new vehicles and upon their arrival 1) getting to know the electronics of the new electric car models and 2) the large volume of car controllers manufactured and installed by our team.
In the IPO introduction (see introduction on page 27), the forecasted sales turnover in 2021 was 934,651 EUR, which was fulfilled by the end of 10.2021 (see the corresponding stock exchange announcement “ELMO Rent fulfilled the 12-month forecast in 10 months” https://view.news.eu.nasdaq.com/view?id=bda977586aac0752af76a54cf0af98605&lang=en).
Higher-than-planned sales revenue in October '21 was driven by higher sales revenue from short-term rental, increased sales of additional fleet management services in the business direction, and higher sales revenue from used cars planned than from fleet changes. Short-term rental income increased 3.7 times compared to the previous year (14,600 EUR in 10.2020, 54,000 EUR in 10.2021). The higher-than-expected sales revenue of used cars was caused by the general nationwide deficit of used cars, which also increased the sales price.
ELMO Rent's revised forecast for 2021 to 1,075,000 EUR (see stock exchange announcement “ELMO Rent AS raises sales turnover forecasts for 2021, 2022 and 2023” https://view.news.eu.nasdaq.com/view?id=b28d279456c07f4fe3a914885d48d4638&lang=en), which is 15% higher than the turnover promised for 2021 in the IPO introduction.
See attached GRAPH NR 4: sales revenue of ELMO Rent AS by months, in the period of 01.2019 - 11.2021 (Reported sales revenue and forecasts)
The company's current sales revenue consists of short-term rental, vehicle fleet management services, vehicle fleet sales and technology (mainly car controller) rental. From 2022, the sales revenue of the taxi service will be added to the sales revenue and the revenue of the technology (offering remote control technology in addition to the car controller) will increase, while the forecasts for 2022 and 2023 do not take into account the revenue from short-term rental and taxi service sales.
Number of registered new customers
The growth of ELMO Rent's new customers has increased in the last half of the year to more than 617 registrations per month, which is an increase of 293% compared to the previous year's average of 157 registrations per month (period 06.2021 - 11.2021 total 3704 versus 06.2020 - 11.2020 942 new customers). The volume of activated customers has decreased due to a more efficient check of the customer's background and the launch of a new registration solution that has fallen at the same time. While from 06.2020 to 11.2020 we activated 926 of 942 customers, 98%, then from 06.2021 to 11.2021 3147 customers of 3704 registrations, 85%, were activated. The number of registrants in the first 11 months of 2020 was 1334, the number of 11 months in 2021 was 4738, an increase of 255%.
See attached GRAPH NR 5: Number of registered new customers, in the period of 01.2019 - 11.2021
Average usage of the vehicle fleet over time
After the IPO introduction (page 26, Chart No. 1 “Average use of the entire vehicle fleet in terms of time, unit “% of time leased”), the use of the ELMO Rent vehicle fleet increased from 16% to 36%. In the same introduction, we forecasted 41% for use in the second quarter of 2021.
The % shows how many percent of the total time (eg 24hx30 days = 720h) the entire vehicle fleet is in use and the efficiency is, ie 41% indicates that 720 hours have been on average 41% or 720x41% = 295h or 24hx41% = 9.8h per day during each client's sessions. The higher the percentage, the more efficiently ELMO Rent has used its vehicle fleet and increased revenue per vehicle.
Actual vehicle fleet usage over the time (vehicles under sessions) was in the second quarter 42%. In July '21 (which was also the high season), however, it fell to 38% due to the volume of new cars arriving in larger quantities at one point - the electronics of the new car models needed to be known by the team and the manufacture and installation of controllers. At the same time, average usage rose to 46% in the third quarter, and October '21 set a historic record of 61%. The number of inactive vehicles (repairs, maintenance, etc.) and operations (washing, moving, etc.) has decreased in recent months. November '21 has seen an increase in the number of vehicles in operation due to the end of the electric two-wheeler season.
The percentage of free vehicles waiting for customers has decreased (the higher the percentage, the more available vehicles): 44% in the first quarter, 41% in the second quarter, and from 20% in the third quarter dropped to 20% in the fourth quarter, indicating growing demand and continued growth.
See attached GRAPH NR 6: Average usage of the vehicle fleet over time, in the period of 12.2020 - 11.2021
ELMO Rent AS also comments on the fulfillment of four main objectives with the funds raised at the IPO in June (see IPO introduction on page 27):
Promises of IPO in June 2021
Overview of performance
1. In order to grow the vehicle fleet to avoid deficit and ensure the validation of existing and new services, we plan to use 40% of the included financial means.
More than 60 vehicles have been added to the vehicle fleet, including a premium class car (Tesla Model 3) and 20 electric two wheelers.
2. We plan to use 10 % of the included financial means for preparatory work to enter foreign markets, including familiarization of the markets as well as drawing up strategies.
Mapping expansion opportunities to Finland, Sweden, Poland has been carried out.
3. We plan to use 50 % of the included financial means to finalize the development of the technology of remote controlled cars to a fully developed product.
First part of site test has been carried out; preparatory works for street test are ongoing.
4. The sales profit of 2021 is at least 934 000 EUR.
The sales profit in the end of October was 942 032 EUR, meaning the prognosis for 12 months was completed in 10 months’ time. The new 2021 prognosis foresees the profit sales of 1 075 000 EUR.
CEO, board member