Autocanada Inc. · TSX:ACQ
Autocanada — Investor Presentation (March 2024)
25 slides from Autocanada's investor presentation, March 2024
Slide 1: AutoCanada (TSX:ACQ) Investor Presentation
AUTOCANADA (TSX:ACQ) INVESTOR PRESENTATION March 2024
Slide 2: Forward-Looking Statements and Non-GAAP and Other Financial Measures
Forward-Looking Statements and Non-GAAP and Other Financial Measures Forward-Looking Statement Certain information contained in this presentation is forward-looking information within the meaning of applicable Canadian securities legislation. The use of any of the words “could”, “expect”, “believe”,
Slide 3: A Leader Within the Personal Transportation Ecosystem
AUTOCANADA INVESTOR PRESENTATION | MARCH 2024 AUTOCANADA OVERVIEW A Leader Within the $ 6.4B $ 252M Revenue1 TTM Adjusted EBITDA1, 2 TTM Personal Transportation 28 66 Ecosystem Automotive Brands1 OEM Franchises across Canada1,3 • Dynamic, diversified and consumer-centric business model offering a fu
Slide 4: Capital Market Profile
AUTOCANADA INVESTOR PRESENTATION | MARCH 2024 The Only Publicly Listed Automotive Dealership Group In Canada Capital Market Profile Stock Quote and Capitalization Table Ticker: TSX:ACQ Market Cap: $493.9M1 Last Price: $20.921 Net Debt: $459.8 M2 52 Week Hi/Lo: $27.54/$15.141 Enterprise Value: $953.7
Slide 5: Company Profile
AUTOCANADA INVESTOR PRESENTATION | MARCH 2024 Diversified Brand Mix With Cross Border and Coast-to-Coast Operations Company Profile Geographically Diversified with a Healthy Brand Mix High-Performing Dealerships 2022 Dealership Awards Dealership BMW Montreal Overall BMW Retailer of the Year Ranked #
Slide 6: Company History
AUTOCANADA INVESTOR PRESENTATION | MARCH 2024 Company History $100.00 $90.00 $80.00 $70.00 SHARE PRICE $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $- 2018 2021 Acquisition of 14 stores in Acquisition of 2006 2010 2014 Illinois in Q2; Paul Antony AutoPoint appointed Executive Group adds 11 IPO as an in
Slide 7: Recently Expanded Leadership Team
Management Team With Proven Track Record Driving Vision & Strategy Recently Expanded Leadership Team Paul Antony Azim Lalani Peter Hong Jeffrey Thorpe Brian Feldman Drew Forret Executive Chairman Chief Financial Officer Chief Strategy Officer & General President, North America Chief Operating Office
Slide 8: Environment, Social & Governance (ESG) Overview
Environment People Environment, Social & Governance • We offer a variety of hybrid and electric- • We strive to provide our employees with powered vehicles which generate far fewer competitive compensation, meaningful and emissions into the atmosphere. challenging work, an engaging and collaborative
Slide 9: Investment Highlights
AUTOCANADA INVESTOR PRESENTATION | MARCH 2024 1. Scale and Durability Provides Opportunity For Margin Expansion and Sustainable Growth Investment Highlights • Transportation solutions addressing the full lifecycle of consumer mobility and allowing operations to adjust to changing market conditions.
Slide 10: Total Addressable Market >US$850 BB
Large and Fragmented Total Addressable Market >US$850 BB NEW VEHICLE MARKET U.S.7 NEW VEHICLE MARKET CANADA7 Market Provides Ample 0.1% 1.8% 8.9% 9.6% Growth Potential > 3,700 OEM Franchise Dealerships in Canada1 91.0% 88.6% •1.6 million New Vehicles1 •2.9 million Used Vehicles1 •CAD$211.7 billion T
Slide 11: AutoCanada Has Considerable Runway For Growth
AutoCanada Has Considerable Runway For Growth Accretive growth through M&A with the objective of accelerating shareholder value creation. Opportunity Target Regions Disciplined, Realizing Is Significant And End Markets Flexible M&A Synergies Targeting OEM Franchise Dealerships Focus on high-ROI tran
Slide 12: AutoCanada Growth Pillars
AutoCanada Growth Pillars New Light Used Light Parts, Service Finance & Vehicle Vehicle & Collison Insurance 40% TTM Sales 42% TTM Sales 12% TTM Sales 6% TTM Sales 20% TTM Gross Profit 12% TTM Gross Profit 37% TTM Gross Profit 31% TTM Gross Profit • OEM Franchise Dealerships are local • Used light v
Slide 13: Operation Optimization
AUTOCANADA INVESTOR PRESENTATION | MARCH 2024 Maximize Gross Profit • Ensure optimal capture of all revenue generating opportunities in our stores. Operation Optimization • Implement best practices to reduce performance variance across the platform. • Modernize Canadian automotive retail for consume
Slide 14: Maximize Gross Profit: Enhance Used Vehicle Sourcing & Speed To Market
AUTOCANADA INVESTOR PRESENTATION | MARCH 2024 Maximize Gross Profit Enhance Used Vehicle Sourcing & Speed To Market Days To Sell GPU 1 0-30 $2,402 Lack of new inventory and corresponding new sales volume has created a shortage of used inventory. 31-60 $1,839 • 10 We Buy Your Car's (WBYC’s) per Store
Slide 15: Maximize Gross Profit: F&I Best Practices & Fixed Operations Optimization
AUTOCANADA INVESTOR PRESENTATION | MARCH 2024 F&I GPU2 NEW BY STORE1 F&I Best Practices & $6,000 $5,000 Maximize Gross Profit Fixed Operations $4,000 $3,000 $2,000 Optimization $1,000 $0 F&I GPU2 USED BY STORE1 Performance bandwidth in F&I gross profit per retail unit $5,000 average (“F&I GPU”)1,2 a
Slide 16: Maximize Gross Profit: Modernizing Canadian Automotive Retail
AUTOCANADA INVESTOR PRESENTATION | MARCH 2024 Modernizing Canadian Maximize Gross Profit Automotive Retail • AutoCanada and Kijiji strategic partnership includes the integration of consumer solutions developed by AutoCanada. These solutions include providing Kijiji's users with the ability to purcha
Slide 17: Optimize Cost Structure
AUTOCANADA INVESTOR PRESENTATION | MARCH 2024 Optimize Cost Structure Focus On ROI Across The Platform Creating A Growth Oriented, Cost-Effective Organization Drawing on the collective experience of the executive team to execute a multi-year cost transformation, substantially closing the gap to peer
Slide 18: Modernize Corporate Infrastructure
AUTOCANADA INVESTOR PRESENTATION | MARCH 2024 Creating Modernize Corporate Economies of Scale Infrastructure Geographic Leadership Platform Vice Presidents reorganized by geography to allow local managers to foster strong collaborative teams and tailor their approach to the local market to improve u
Slide 19: Financial Review
FINANCIAL REVIEW
Slide 20: Q4 2023 Results Overview
AUTOCANADA INVESTOR PRESENTATION | MARCH 2024 Q4 2023 Results Overview Financial Review Fourth Quarter Results ($M, unless otherwise noted) Q4 2023 Q4 2022 Change Consolidated Revenue 1,483.8 1,388.2 +6.9% Gross Profit %1 17.4% 17.5% -0.1 ppts Adjusted EBITDA1 46.4 51.0 -9.0% Adjusted EBITDA margin
Slide 21: Q4 2023 Income Statement Highlights
AUTOCANADA INVESTOR PRESENTATION | MARCH 2024 Q4 2023 Results Overview Q4/2022 Income Statement Highlights Q4/2023 Financial Review TOTAL REVENUE ADJUSTED EBITDA1 DILUTED EPS $51.0 M $0.52 $1,483.8 M $1,388.2 M $46.4 M -$0.81 Q4/2022 Q4/2023 Q4/2022 Q4/2023 Q4/2022 Q4/2023 Growth Q4/23 vs. Q4/22 COM
Slide 22: Q4 2023 Results Continued: TTM Canadian Business Mix Highlights
AUTOCANADA INVESTOR PRESENTATION | MARCH 2024 Q4 2023 Results Continued 2018 TTM Canadian Business Mix Highlights 21.5% Segment Segment Retail Unit Segment Brand Revenue % 57.2% 8.5% Revenue % Retail Unit % Sales % Financial Review Import Honda 31% 5% 40% 7% Hyundai 8% 10% 44.1% Kia 2% 3% 24.0% Niss
Slide 23: Q4 2023 Results Continued: Geographic Mix Highlights
AUTOCANADA INVESTOR PRESENTATION | MARCH 2024 Q4 2023 Results Continued Geographic Mix Highlights Adjusted EBITDA Margin1 Adjusted EBITDA1 Financial Review CONSOLIDATED ADJUSTED EBITDA1 ($M) -2.2 100.0 5.4% 6.0% 90.0 TTM Consolidated Adjusted EBITDA1 $252.2 million 94.1 5.0% 80.0 70.0 3.7% 4.0% 4.0%
Slide 24: Leverage Profile
AUTOCANADA INVESTOR PRESENTATION | MARCH 2024 Leverage Profile Financial Review Total Net Funded Debt to Bank EBITDA1 Ratio of 2.39x DISCIPLINED MANAGEMENT OF LEVERAGE TOTAL NET FUNDED DEBT1 Q4 2023 ($millions) Revolving term facility - Credit Facility 186.2 Senior Unsecured Notes 345.4 Other funded
Slide 25: Thank You
MAutoCanada THANK YOU