Autosports Group Ltd · ASX:ASG
Autosports — Investor Presentation (February 2023)
34 slides from Autosports's investor presentation, Feb 22, 2023
Slide 1: Autosports Group Limited H1 2023FY Presentation
AUTOSPORTS GROUP LIMITED H1 2023FY PRESENTATION Wednesday 22 February 2023
Slide 2: Agenda
AGENDA H1 2023FY HIGHLIGHTS GROWTH STRATEGY AND MARKET CONDITIONS H1 2023FY RESULTS SUMMARY H1 2023FY FINANCIAL METRICS RECAP & OUTLOOK APPENDIX
Slide 3: Financial Highlights
ASG H1 2023FY PRESENTATION FEB 23 3 FINANCIAL HIGHLIGHTS Strong H1 operating performance driven by demand led organic growth and the impact of strategically aligned acquisitions. Statutory NPAT up 70.8% Revenue up 16.6% on PCP $1,062 million on PCP $35.1 million Operating cashflows Up 62.4% Normalis
Slide 4: Strategic Highlights
ASG H1 2023FY PRESENTATION FEB 23 4 STRATEGIC HIGHLIGHTS Consistent delivery of strategic objectives creates strong platform for growth BUSINESS ACQUISITIONS DRIVE ACCRETIVE GROWTH ▪ Auckland City BMW Limited settled August 2022 (2 x BMW, 2x MINI, 1x Rolls-Royce) ▪ Motorline BMW Group settled Februa
Slide 5: Outlook
ASG H1 2023FY PRESENTATION FEB 23 5 OUTLOOK Full year cycling of acquisitions will drive continued revenue growth into 2024FY Growing orderbanks and resilient luxury demand is expected to exceed new vehicle supply through H2 FY2023 and FY2024 Service and parts revenue should maintain organic (like-f
Slide 6: Agenda
AGENDA H1 2023FY HIGHLIGHTS GROWTH STRATEGY AND MARKET CONDITIONS H1 2023FY RESULTS SUMMARY H1 2023FY FINANCIAL METRICS RECAP & OUTLOOK APPENDIX
Slide 7: ASG Growth Strategy – Growth by Acquisition
ASG H1 2023FY PRESENTATION FEB 23 7 ASG GROWTH STRATEGY – GROWTH BY ACQUISITION Since listing ASG has made 12 acquisitions in 6 years 2017 2022 ▪ Doncaster BMW 2020 ▪ Suttons Subaru Rosebery ▪ Doncaster MINI Garage ▪ Suttons Kia Rosebery ▪ Trivett Alexandria ▪ Doncaster Motorrad ▪ Auckland City BMW
Slide 8: 2023FY Acquisition Growth
ASG H1 2023FY PRESENTATION FEB 23 8 2023FY ACQUISITION GROWTH Growth through 2023FY and 2024FY will come from the full year cycling of EPS accretive acquisitions QUALITY ASSETS ▪ Auckland City BMW Group settled August 2022 — 2 BMW dealerships — 2 MINI dealerships — 1 Rolls-Royce dealership ▪ Motorli
Slide 9: Organic Growth – New Vehicles
ASG H1 2022FY PRESENTATION FEB 23 9 ORGANIC GROWTH – NEW VEHICLES Large orderbank will drive organic growth as supply constraints unwind H1 2023FY ASG ON TRACK JANUARY UPDATE ▪ Total new car revenue grew by 11.8% ▪ Driven by like-for-like growth of 14.7%1 and acquisition led growth 7.7% ▪ Organic re
Slide 10: Organic Growth – Used Vehicles
ASG H1 2022FY PRESENTATION FEB 23 10 ORGANIC GROWTH – USED VEHICLES ASG’s used car growth will be supported by growing scale and inventory sourcing advantages H1 2023FY ASG ON TRACK ASG USED CAR STRATEGY ▪ Total used car revenue grew by 19.8% ▪ Use ASG’s sourcing advantages to maintain high margins
Slide 11: Organic Growth – Service and Parts
ASG H1 2023FY PRESENTATION FEB 23 11 ORGANIC GROWTH – SERVICE AND PARTS Investing to unlock organic growth in Service and Parts H1 2023FY ASG ON TRACK H1 2023FY CAPACITY INVESTMENT ▪ ASG invested in additional service ▪ Total Service and Parts revenue grew capacity of 29 service hoists at: by 28.7%
Slide 12: Property Strategy
ASG H1 2023FY PRESENTATION FEB 23 12 PROPERTY STRATEGY ASG’s property strategy is set to support our dealership growth strategy FORTITUDE VALLEY ACQUISITION ▪ Control strategically important retail sites ▪ Purchase price $98m plus stamp duty ▪ Further improve balance sheet strength ▪ Settlement date
Slide 13: Agenda
AGENDA H1 2023FY HIGHLIGHTS GROWTH STRATEGY AND MARKET CONDITIONS H1 2023FY RESULTS SUMMARY H1 2023FY FINANCIAL METRICS RECAP & OUTLOOK APPENDIX
Slide 14: H1 2023FY Financial Summary
ASG H1 2023FY PRESENTATION FEB 23 14 H1 2023FY FINANCIAL SUMMARY Revenue up 16.6% to $1,062m on combination of acquisition led growth and market conditions New vehicle orderbank grew 14% (net of cancellations) in H1 2023FY Gross profit grew 26.4% to $220.6m on resilient vehicle margins and improveme
Slide 15: Normalised Financial Result
ASG H1 2023FY PRESENTATION FEB 23 15 NORMALISED FINANCIAL RESULT Growth on $m H1 2023FY H1 2022FY PCP New Vehicles 630.8 564.4 11.8% ▪ $72.3m in revenue growth from the accretive acquisition of Auckland City BMW Used Vehicles 250.3 209.0 19.8% ▪ like-for-like revenue growth of $79m up 8.7% Service 7
Slide 16: Statutory Result
ASG H1 2023FY PRESENTATION FEBRUARY 23 16 STATUTORY RESULT A$M Statutory % Movement Statutory HIGHLIGHTS H1 2023FY on PCP H1 2022FY ▪ NPAT up 70.8% Total Revenue 1,062.1 16.6% 910.8 Gross Profit 220.6 26.4% 174.5 — Reducing acquisition amortisation Operating expenses (130.8) 21.0% (108.1) EBITDA 89.
Slide 17: Agenda
AGENDA H1 2023FY HIGHLIGHTS GROWTH STRATEGY AND MARKET CONDITIONS H1 2023FY RESULTS SUMMARY H1 2023FY FINANCIAL METRICS RECAP & OUTLOOK APPENDIX
Slide 18: H1 2023FY Revenue Drivers
ASG H1 2023FY PRESENTATION FEBRUARY 23 18 H1 2023FY REVENUE DRIVERS REVENUE BREAKDOWN H1 2023FY ▪ Growth split between organic $79m and acquisitions $72.3m ▪ Strong underlying market saw ASG’s new vehicle orders grow a further 14% in H1 2023FY on 30 June 2022 ▪ New vehicle orderwrite exceeded custom
Slide 19: Gross Margin Overview
ASG H1 2023FY PRESENTATION FEBRUARY 23 19 GROSS MARGIN OVERVIEW 22.0% 20.8% GROSS MARGIN DRIVERS 21.0% 19.9% 20.0% ▪ Disciplined acquisition strategy investing in high margin businesses 19.0% ▪ Investment in service facility capacity unlocking high 18.0% 17.1% margin service and parts revenue 17.0%
Slide 20: Unlocking Improved Operating Leverage
ASG H1 2023FY PRESENTATION FEBRUARY 23 20 UNLOCKING IMPROVED OPERATING LEVERAGE 22.0% 20.8% 19.9% 20.0% DISCIPLINED EXPENSE 18.0% 17.1% 16.3% MANAGEMENT NORMALISED 15.7% 15.6% 16.0% 14.9% ▪ Op Ex increased $10m (7%) like-for-like1 on H2 2022FY 14.5% 14.5% 13.9% 14.0% 13.2% 13.0% — Employee costs inc
Slide 21: Normalised Margin Overview
ASG H1 2023FY PRESENTATION FEBRUARY 23 21 NORMALISED MARGIN OVERVIEW 7.0% 6.3% 6.0% 6.0% 4.9% 4.9% PROFIT MARGIN DRIVERS 4.7% 5.0% ▪ 2016FY – 2022FY EBITDA growth driven by: 3.7% 3.7% 4.0% 3.3% 3.1% — Increased scale and maturity supporting underlying 3.0% 2.6% 2.6% 2.6% 3.8% profit 2.2% 1.7% 2.0% 1
Slide 22: H1 2023FY Cash Flow
ASG H1 2023FY PRESENTATION FEBRUARY 23 22 H1 2023FY CASH FLOW STRONG CASHFLOWS ALLOW ASG’s strong cash flow positions the Group well to unlock future growth potential GROWTH Acquisition ▪ $51m acquisition of Auckland City BMW Organic ▪ Audi Indooroopilly - $3.5m ▪ BMW Melbourne relocation reducing o
Slide 23: Strong Balance Sheet
ASG H1 2023FY PRESENTATION FEBRUARY 23 23 STRONG BALANCE SHEET Strong financial position provides platform for further growth Balance Sheet H1 2023FY 2022FY H1 2022FY SET FOR GROWTH Cash & Cash Equivalents (46,969) (90,817) (70,576) Corporate debt 118,308 112,542 104,809 ▪ Cash at hand $47m Floorpla
Slide 24: Agenda
AGENDA H1 2023FY HIGHLIGHTS GROWTH STRATEGY AND MARKET CONDITIONS H1 2023FY RESULTS SUMMARY H1 2023FY FINANCIAL METRICS RECAP & OUTLOOK APPENDIX
Slide 25: Results Recap
ASG H1 2023FY PRESENTATION FEBRUARY 23 25 RESULTS RECAP Revenue up 16.6% to $1,062m on organic and acquisition growth New vehicle orderbank grew 14% (net of cancellations) in H1 2023FY Normalised* NPBT grew 32.6% to $52m driven by margin improvements Gross margins grew 20.8% on resilient vehicle mar
Slide 26: Strategic Outlook
ASG H1 2023FY PRESENTATION FEB 23 26 STRATEGIC OUTLOOK ASG strategy drives growth and shareholder returns Acquisitions to drive growth ▪ Opportunity to consolidate the fragmented market conditions ▪ Focus on luxury and prestige brands in major cities ▪ Look to brands with strong EV growth paths Cont
Slide 27: Outlook
ASG H1 2023FY PRESENTATION FEB 23 27 OUTLOOK Full year cycling of acquisitions will drive continued revenue growth into 2024FY Growing orderbanks and resilient luxury demand is expected to exceed new vehicle supply through H2 FY2023 and FY2024 Service and parts revenue should maintain organic (like-
Slide 28: Agenda
AGENDA H1 2023FY HIGHLIGHTS GROWTH STRATEGY AND MARKET CONDITIONS 2022FY RESULTS SUMMARY 2022FY FINANCIAL METRICS RECAP & OUTLOOK APPENDIX
Slide 29: About ASG
ASG H1 2023FY PRESENTATION FEB 23 29 ABOUT ASG ASG was established in 2006 and operates one of Australia's largest networks of luxury and prestige car dealerships. KEY FACTS ASG'S BRANDS (1 February 2023) ▪ Established 17 years ago by founders and major shareholders, HISTORY Ian Pagent and Nick Page
Slide 30: Enhanced Platform for Growth
ASG H1 2023FY PRESENTATION FEB 23 30 ENHANCED PLATFORM FOR GROWTH REVENUE BY BRAND REVENUE BY STATE GROSS PROFIT CONTRIBUTION SUPER LUXURY 2% 2016FY FY16 REVENUE CONTRIBUTION 2016 FY HONDA 3% 4% VW 5% MAZDA 8% AUDI 39% VOLKSWAGEN NSW FRONT END 41% MERCEDES-BENZ QLD MAZDA VIC BACK END 19% 48% 48% VOL
Slide 31: AASB16 Leases Impact
ASG 2023FY PRESENTATION FEB 23 31 AASB16 LEASES IMPACT H1 2023FY Statutory H1 2022FY Statutory A$m Pre AASB16 AASB16 After AASB16 A$m Pre AASB16 AASB16 After AASB16 Total Revenue 1,062.1 1,062.1 Total Revenue 910.8 910.8 Gross Profit 220.6 220.6 Gross Profit 174.5 174.5 Opex (153.7) 24.1 (130.8) Ope
Slide 32: Questions
QUESTIONS
Slide 33: Important Notice and Disclaimer
ASG H1 2023FY PRESENTATION FEB 23 33 IMPORTANT NOTICE AND DISCLAIMER This presentation contains summary information about Autosports Group Limited (ACN 614 505 261) (ASG) and its activities current as at the date of this presentation. The information in this presentation is of general background and
Slide 34: Autosports Group – Drive Endless Possibilities
autosports group” DRIVE ENDLESS POSSIBILITIES
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