Climate Change Data

Delticom

Climate Impact & Sustainability Data (2015, 2017, 2021, 2022, 2023, 2024-01-01 to 2024-06-30)

Reporting Period: 2015

Environmental Metrics

Social Achievements

  • More than 1,264 thousand new customers. More than 685 thousand customers made a repeat purchase with us.

Climate Goals & Targets

Short-term Goals:
  • Generate at least € 600 million in revenues from tyres and automotive parts in the current financial year. Achieve a full-year EBITDA target of € 18 million. Increase EBIT from € 5.6 million in financial year 2015 to € 13 million.

Environmental Challenges

  • Sales of replacement tyres for cars to private customers declined once again in Germany. Summer tyre sales were down by just under 15% in the first three months of 2015 and 5.4% in the second quarter. The disappointing summer business continued into the third quarter, while the final quarter was also unable to halt the negative trend. According to industry associations, sales in the German tyre retail business declined over the year as a whole.
Mitigation Strategies
  • Successfully implemented cost-cutting measures, including the closure of one warehouse, process optimization, and efficiency boosts along the entire value chain. Expanded market position as Europe’s leading online tyre and automotive accessories retailer through new, innovative shop concepts and the acquisition of Tirendo (which became profitable by the end of the year).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2017

Environmental Metrics

Social Achievements

  • 11 young people completed their apprenticeships in 2017.
  • 11 trainees were employed as of the end of 2017 (previous year: 7).

Climate Goals & Targets

Medium-term Goals:
  • Further promote the market establishment of start-ups.
  • Expand market position in efood and logistics.
  • Explore new developments in innovative E-Commerce trends.
Short-term Goals:
  • Consolidated sales of €690 million for the current year.
  • Increase EBITDA to €14 million in the current fiscal year.

Environmental Challenges

  • Negative currency effects in the amount of €1 million.
  • Start-ups (MobileMech, DeltiCar, Ringway, DeltiLog, and Extor) impacting earnings.
  • Volume-dependent costs (transport, warehouse handling, customer service) increased due to active pricing policy and increased sales volume.
  • Low margins in the European replacement tyre market.
Mitigation Strategies
  • Active pricing policy to gain market share.
  • Investing in start-ups for long-term profitable growth.
  • Automation throughout the Group to generate cost-cutting effects.
  • Expanding market position in efood and logistics.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • Compliance Management System (CMS)
  • Social and Environmental factors
  • Corporate Governance (ESG)
  • Risk Management System (RMS)
  • Internal Control System (IKS)

Governance Achievements

  • Establishment of a holistic Compliance Management System (CMS)
  • Establishment of an internal Risk Management System (RMS)

Climate Goals & Targets

Environmental Challenges

  • Difficult business environment
  • Measures for medium-term liquidity assurance
  • Continuation and termination of the turnaround program started in 2019
  • Concluding measures for the follow-up financing of the company
  • Ongoing Corona pandemic
Mitigation Strategies
  • Comprehensive turnaround concept for sustainable return to profitability, focusing on core business "Tires Europe"
  • Successful completion of the restructuring
  • Measures to increase efficiency in marketing, pricing, and warehouse logistics
  • Follow-up financing secured

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Not disclosed

Environmental Achievements

  • Not disclosed

Social Achievements

  • Not disclosed

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve an operating EBIT margin of 3%.
Short-term Goals:
  • Increase in new customers by at least 1 million in 2023.

Environmental Challenges

  • Decreased consumer demand for tires due to geopolitical uncertainty, rising energy costs, and overall economic slowdown.
  • Inflationary price increases for raw materials.
  • Currency exchange rate fluctuations.
Mitigation Strategies
  • Successful sale of US subsidiary to refocus on European core business.
  • Passing on price increases to customers.
  • Stringent working capital management.
  • Process improvements and cost optimization initiatives.
  • Extension of the consortium loan agreement with a reduced financing framework.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Not disclosed

Environmental Achievements

  • Not disclosed

Social Achievements

  • Not disclosed

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve an operating EBIT margin of 3%.
Short-term Goals:
  • Achieve at least as many new customers in 2024 as in 2023 (737,000).

Environmental Challenges

  • Inflationary cost increases for raw materials, energy, and wages, as well as the reduction of inventory levels in distribution channels led to a decrease in demand for passenger car replacement tires.
  • Weakened demand from business customers due to macroeconomic and industry-specific conditions.
Mitigation Strategies
  • Internal process optimizations and cost savings through the use of IT and AI.
  • Closing and merging of some subsidiaries to further reduce costs.
  • Successful establishment of a platform business, allowing external parties to benefit from Delticom's expertise and infrastructure, generating commission income.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: BDO AG Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Sustainable and resource-saving tires are labeled and awarded a sustainability seal in the Reifendirekt.de online shop.

Awards & Recognition

  • Not disclosed

Reporting Period: 2024-01-01 to 2024-06-30

Environmental Metrics

ESG Focus Areas

  • Environmental Footprint
  • E-mobility Transition

Environmental Achievements

  • Further optimization of distribution with a focus on minimizing mileage driven

Climate Goals & Targets

Long-term Goals:
  • Significant improvement in the environmental footprint of the Group due to the generally lower tailpipe and tire-related emissions as a result of the e-mobility transition, tighter regulation and further environmental advancements on the tire manufacturers' side

Environmental Challenges

  • CO2 emissions caused by tire transport to customers are significant
  • Limited visibility on tire demand
Mitigation Strategies
  • Further optimization of distribution with a focus on minimizing the mileage driven

Supply Chain Management

Climate-Related Risks & Opportunities