Slide 1: Investor Presentation July 2023
INVESTOR PRESENTATION July 2023
Slide 2: Inchcape: Group overview
2 Inchcape: Group overview Our business Our differentiators Our financials Distribution focus Global scale ROCE c.90% of 6 continents profit >40 markets >25% Vehicles & Parts Technology Cash conversion Strong automotive brands Digital & Analytics leader >60% Leading global automotive distributor Spe
Slide 3: Inchcape has a robust business model
3 Inchcape has a robust business model The Group’s long-term prospects are supported by …. Market leadership Investments in Aftermarket A resilient in fragmented digital and data and Vehicle business model markets analytics Lifecycle Services Inchcape is a key Opportunity to Driving a great Growth t
Slide 4: An excellent performance by Inchcape in H1 2023
4 An excellent performance by Inchcape in H1 2023… …further momentum Robust results Continued Derco on track Inchcape remains strategic progress well positioned for growth 45% 11 distribution deals and acquisitions Integration Based on prevailing market conditions, FY 2023 results revenue growth Syn
Slide 5: H1 2023: headline financials
5 H1 2023: headline financials Topline Profitability Balance sheet Shareholders Revenue Operating margin Free Cash Flow Basic EPS £5.6bn 5.8% £202m 42.2p +21% from H1 2022 +45% +13% £249m 0.8x 9.6p +28% from H1 2022 Revenue Organic PBT Leverage ratio Dividend per share growth growth (proforma) (prop
Slide 6: Considerable opportunities for an ambitious Inchcape
6 Considerable opportunities for an ambitious Inchcape Distribution Excellence Vehicle Lifecycle Services Annual new car volumes (units) Vehicle lifecycle value profit split2 90m 17m New market opportunities Large markets; e.g. China, typically US, UK, 75% Currently insourced Brazil, underserved by
Slide 7: Global scale and diversification through further distribution deals & acquisitions
7 Global scale and diversification…. …through further distribution deals & acquisitions 2016 2017 2018 2019 2020 2021 2022 2023 Total to date Number of deals 2 2 3 3 5 5 5 112 36 Acquired Distribution c.£400m c.£100m c.£250m c.£150m c.£200m c.£200m c.£2.3bn c.£400m 3 £4.0bn revenue added1 New OEMs 1
Slide 8: Derco Acquisition
@ Inchcape DERCO” | ACQUISTION =
Slide 9: Inchcape Americas - evolution and growth since 2016
Inchcape Americas - evolution and growth since 2016 2016 2022 Revenue Revenue £160m £3.7bn* Chile Chile Colombia Argentina Costa Rica Panama Ecuador Peru Peru Uruguay El Salvador Guatemala Barbados Bolivia and Caribbean 2 OEM brands 2 markets 12 markets c.40 OEM brands CAGR at constant currency * In
Slide 10: Derco: at a glance
10 Derco: at a glance Existing portfolio: key facts Headquarters: ~4,500 4 11 Santiago, Chile colleagues markets OEM brands #1 player in Chile, Peru and Bolivia1 #3 player in Colombia1 150k £2.2bn 329 new vehicles revenue (2022) locations; distributed ~30% operated by Derco2 Chile Peru Colombia Boli
Slide 11: Derco – delivering against our objectives
11 Derco – delivering against our objectives As per acquisition announcement, July 2022 Strong topline Shareholder Margin Distribution growth value upside consolidation prospects creation Progress to date 43% of Distribution Derco margin accretive Inchcape now present On track to deliver revenues no
Slide 12: Bringing mobility to the world's communities
Inchcape 12 BRINGING MOBILITY TO THE WORLD’S COMMUNITIES – FOR TODAY, FOR TOMORROW & FOR THE BETTER
Slide 13: Investment case: well-positioned to deliver significant value
13 Investment case: well-positioned to deliver significant value Attractive shareholder Consolidation returns opportunities Margin Strong organic expansion Dividend payout: 40% growth We are the leader with c.2% Track record of share share of global distribution buybacks Leverage our global scale to
Slide 14: Appendix
@ Inchcape APPENDIX
Slide 15: Capital allocation policy: remains unchanged
15 Capital allocation policy: remains unchanged 01 02 03 04 Invest in the Dividends Value accretive Share business M&A buybacks Capex for organic Policy: 40% annual Disciplined Consider growth and payout of basic approach to appropriateness technological EPS (adjusted) valuation of share buybacks in
Slide 16: Accelerate strategic framework
16 Accelerate strategic framework Our Growth Drivers Distribution Excellence Vehicle Lifecycle Services Our Enablers Culture and Digital, Data & Efficient Scale Capabilities Analytics Operations Responsible Business
Slide 17: Inchcape: the leading automotive distributor
17 Inchcape: the leading automotive distributor Our competitive advantages: ▪ The global leading distributor: >40 markets across six continents ▪ Long-term relationships, and several new exciting partnerships, with global OEM brands ▪ A plug-and-play distribution platform: unique digital and data an
Slide 18: Vehicle Lifecycle Services: exploring new opportunities
18 Vehicle Lifecycle Services: exploring new opportunities Vehicle Lifecycle Value Three opportunities in focus Progress since 2021 CMD Timeline 1. 2021/ 1. bravoauto rolled-out to all 22 three Distribution regions B2C 2. Digital Parts 2023/ 2. Further developed our 24 Digital Parts Platform Platfor
Slide 19: Excellent progress across our Responsible Business pillars
19 Excellent progress across our Responsible Business pillars Planet People Places Practices ▪ Good progress towards ▪ Launched Inclusion & ▪ Partnerships supporting ▪ Active promotion of our our Scope 1 & Scope 2 Diversity and Women prosthetics charities in whistle-blower hotline CO2 emissions targ
Slide 20: Extending Inchcape's global leadership in automotive distribution
20 Extending Inchcape’s global leadership in automotive distribution [Accelerate strategy in action Inchcape acquires LatAm’s largest independent ▪ Step-up in scale of distribution business automotive distributor Significantly expands Inchcape’s position in highly attractive and fast growth markets
Slide 21: A strong and growing platform + deep OEM relationships
21 A strong and growing platform + deep OEM relationships Current Derco aggregate market share1 Years of distribution relationship markets 18% 46 4 17% 17% 40 3 14% 23 1 12% 22 3 16 2 15 3 14 3 14 2 2014 2016 2018 2020 2021 6 2 OEM brands 8 10 10 11 11 6 1 Current markets 4 4 4 4 4 2 1 1: Market sha
Slide 22: Complementary market footprint and brand portfolio
22 Complementary market footprint and brand portfolio Markets Derco Inchcape Typical brand structure Passenger vehicles Luxury brands ✓ Chile Premium brands ✓ Commercial vehicles Niche brands ✓ Peru Mainstream brands ✓ Colombia Entry-level brands ✓ ✓ Bolivia Inchcape present in 8 additional countrie
Slide 23: Excellent progress already made on Derco integration
23 Excellent progress already made on Derco integration Retained Advanced Maintained all key people integration of OEM relationships tools and systems Enabled by an aligned culture, driven by an energised and collaborative management team
Slide 24: Cost synergies
24 Cost synergies Key focus areas Organisation Efficiencies of combined Elimination of duplicate positions organisation Operations Service contracts Consolidation of infrastructure, rationalisation, e.g. ocean including merging distribution centres freight Technology Harmonise systems, and implement
Slide 25: Revenue synergies
25 Revenue synergies Key focus areas Enhancing Distribution Excellence VLS opportunity Vehicles in operation1 Network Finance & Digital benefits Insurance Products & data Leverage broader Leverage partnerships Leverage Inchcape’s network (new cities with financiers and digital and data and countries
Slide 26: Consolidation: plotting the landscape of opportunity
26 Consolidation: plotting the landscape of opportunity Typical distribution markets1 Number of 17m 17m 17m independent distributors Middle East >170 OEM Other Latam & operated OEMs >500 Africa (NSCs) (potential) APAC >250 Inchcape Independent OEM distributors Partners Europe >220 (existing) Inchcap
Slide 27: Drivers of our financial performance
27 Drivers of our financial performance Distribution Excellence Vehicle Lifecycle Services Organic M&A New opportunities Revenue Volume Acquisitions & contract-wins bravoauto ▪ Exposure to higher growth markets ▪ Expand OEM relationships ▪ Used volumes & Aftersales ▪ Volumes c.10% below historic lev