Eagers Automotive Limited · ASX:APE
Eagers Automotive — 1H 2022 Earnings Presentation
36 slides from Eagers Automotive's earnings presentation, Aug 25, 2022
Slide 1: For personal use only
For personal use only Eagers Automotive Limited T (07) 3608 7100 Postal Address ABN 87 009 680 013 F (07) 3608 7111 PO Box 199, ASX: APE Fortitude Valley E corporate@eagersautomotive.com.au QLD 4006
Slide 2: 1H 2022 Results
motive <2) eqaers . = au For personal use onl Keith Thornton Sophie Moore 1H 2022 Results Chief Executive Officer Chief Financial Officer ZZ02 LSNONV SZ
Slide 3: 1H 2022 Highlights
1H 2022 Highlights Half year result reflects resilience of the market, strength of the underlying Franchised Pooce business and material benefits from operational & strategic initiatives Automotive WY automotive Used easyauto’ a © |—B @ Strategic Property Ownership Statutory Profit Before Tax $246.5
Slide 4: Agenda
Agenda Financial Results Operational Update Strategic Priorities easyautol23 Outlook Q&A (<2) Sa@motive
Slide 5: Financial Results
For personal use only eqacels _. automotive Financial Results
Slide 6: Financial highlights 1H 2022
Financial highlights 1H 2022 Disciplined focus on cost base underpinning sustainable Return on Sales performance a ¢ CG $$ &€ © Statutory Underlying Available Return on Corporate Ordinary PBT Operating Liquidity Sales Debt Interim PBT (Underlying) Net of Cash Dividend $246.5m $195.1m $842.8m 4.6% $1
Slide 7: 1H 2022 Summary P&L
1H 2022 Summary P&L $ MILLION Pt H22| 1H21 Revenue from continuing operations” 4,215.4 4,699.2 Underlying operating EBITDAI from continuing operations? 220.2 248.2 Underlyi inderlyin: Underlying operating PBT from continuing operations” 195.1 218.6 ying Specific items reported below underlying profi
Slide 8: Strong & flexible capital management
Strong & flexible capital management Strong balance sheet and liquidity position to support further investment in growth opportunities alongside capital management Cash 94.2 209.1 197.6 326.3 Net Debt 315.8 129.3 128.4 12.6 Available Liquidity 205.0 683.2 733.1 842.8 Gearing 114 0.29 0.28 0.02 <2} a
Slide 9: Operational Update
For personal use only eqoers .. “ automotive Operational Update
Slide 10: Unique scale and diversity in strong market
Unique scale and diversity in strong market Opportunity within the automotive retail industry is compelling despite new vehicle supply constraints Australian New Vehicle Market" Australian monthly new car sales growth vs pep en Mor Jun Sep: Dae Mar un Sap Lee- Mar Jun Sop Dee Mar Jun Sep. Dee Mar Ju
Slide 11: Market dynamics drive our order bank
Market dynamics drive our order bank New vehicle demand remains strong, with our order bank up 32%" since December 2021 New Vehicle Order Write vs Deliveries January 2020 to June 2022 Consumer demand remains strong Ongoing supply chain constraints restricted deliveries in 1H22 Further month-on-month
Slide 12: Strategy drives long-term value
Strategy drives long-term value Strong market conditions supported by greater productivity and a more efficient cost base Business transformation via tech enabled productivity delivering a sustainable and more efficient cost base Delivering a superior Underlying Return on Sales relative to long- ter
Slide 13: For personal use only
For personal use only • • • • • • • • • • • • • • • •
Slide 14: Strategic Priorities
For personal use only eqoers .. “ automotive Strategic Priorities
Slide 15: NEXT100 Strategy
NEXT100 Strategy Providing integrated mobility solutions for the next 100 years 4 4 We continue to believe the ultimate impact to profitability of large dealerships as a result of the potential disruption associated with Electric Vehicles and Direct to Customer models is likely to be minimal. This i
Slide 16: NEXT100 Strategy
NEXT100 Strategy Providing integrated mobility solutions for the next 100 years Transformation () O8 Consolidation Deliver optimised vehicle finance solutions Engage our customers, Redefine our everywhere workforce Support Reinvest with innovation discipline Exceed Stakeholder Expectations Customers
Slide 17: Organic growth through property strategy
Organic growth through property strategy Continuing to rebalance owned vs leased property portfolio to unlock value and enhance customer experience Property Highlights Enhancing Customer Exper Portfolio at Jun-22 Property acquired 1H22 Gain on property Properties contracted Leases exited 1H22 divest
Slide 18: Organic growth through proprietary technology
Organic growth through proprietary technology Driving growth through productivity and incremental revenue opportunities with incremental gains to be realised 10 Minute Integrated digital vehicle +3,900 34% Sales App contract solution vehicle contracts 1H22 of all contracts in EA123 1H22 SMS Payments
Slide 19: Financial Services striving for higher finance penetration
Financial Services striving for higher finance penetration Optimising our unique toolbox to win the race to customers in a highly competitive market Sivectet@aleiiclicm™ New entrants scaling auto finance capabilities Ongoing showroom F&I transformation Growing proprietary businesses Increasing ancil
Slide 20: Greenfield growth
Greenfield growth Driving growth through creating new opportunities New Markets Additional greenfield markets Alfa Romeo, Fiat, Ford, MG (x2), McLaren, Renault & Volvo (x2) Lower cost business model Further opportunities identified % @ ®@ <p Automotive 1H 2C BYD a unique opportunity with exclusive n
Slide 21: AutoMall West
AutoMall West Execution of innovative automotive retail solutions Exceeding our expectations since launch Foot Traffic Dwelling Time 2,000+ 15 minutes Average unique visitors Average time spent inside the per day store per customer Property Footprint Customer Feedback 2,400m2 Benchmark CS! performan
Slide 22: Acquisitive growth
Acquisitive growth Driving growth through productivity and incremental revenue opportunities Investment Criteria © AN Complementary brand portfolio Kelly Trotter / Heritage aes O—O: Kelly Trotter (Cardiff) & Heritage (Maitland) Motor Group Strategic property ownership 5 brands across two high growth
Slide 23: Acquisitive growth
Acquisitive growth OEM Partnerships Driving growth through disciplined and value-accretive M&A Q 268 dealerships across Australia and New Zealand TOYOTA = MITsuatsti Canberra _ @ = | ACT business to deliver a national footprint SUBARU Ke, 9 brands including brand exclusivity for Ford, Subaru, Lexus
Slide 24: easyauto123
For personal use only eqcers _. x automotive easyauto123
Slide 25: 2022 Key achievements
2022 Key achievements Driving sustainable scaling of the business through disciplined investment Driving Sustainable Scale Growth from +50.7% January 2021 to June 2022 Revenue +57.4% Unit Sales easyautol123, Gat Rollout Strategy 3x Sites opening 2021 eo 3x Sites opening 2022 ry ¥ @ 2022 new sites e
Slide 26: Outlook
For personal use only eqcers _. x automotive Outlook
Slide 27: Outlook
Outlook Disciplined focus on accelerating our Next100 Strategy Optimising operational performance Technology enabled productivity Franchised Automotive x . automotive 26 | Eagers Automotive 1H 2022 Results @ Growth via new markets, new entrants & accretive acquisitions Strategic Initiatives Independ
Slide 28: Thank you
For personal use only CQgels |. automotive Thank you
Slide 29: Questions?
For personal use only QUESTIONS?
Slide 30: Disclaimer
Disclaimer The information in this document (information) does not contain all information necessary for investment decisions, is not intended to be an offer, invitation or recommendation with respect to shares, is not financial product advice, and is intended to be general background information on
Slide 31: Appendix
For personal use only eqoers .. automotive Appendix
Slide 32: Statutory to Underlying EBITDAI & PBT - 1H 2022
Statutory to Underlying EBITDAI & PBT —- 1H 2022 $ MILLION 1H22 EBITDAI Pan & mort Underlying Operating 220.2 Impairment - AASB16 Lease Standard 69.2 Business Acquisition, Divestment & Integration Costs (2.2) Sale of Assets 50.6 Miscellaneous (1.6) Alignment of Full Year Effective Tax Rate” - Total
Slide 33: Statutory to Underlying EBITDAI & PBT - 1H 2021
Statutory to Underlying EBITDAI & PBT - 1H 2021 $ MILLION 1H21 EBITDAI peen & mort Underlying Operating Brand Restructure Compensation AASB16 Lease Standard Revaluation of Properties Business Acquisition, Divestment & Integration Costs Sale of Assets Dividends Received Total Significant Items Statut
Slide 34: Definitions
Definitions Non-IFRS Financial Information csl is defined as customer satisfaction index cx is defined as customer experience EA is defined as Eagers Automotive Limited (formerly AP Eagers Limited) EBIT is defined as earnings before interest and tax EBITDA is defined as earnings before interest, tax
Slide 35: Definitions
Definitions Non-IFRS Financial Information PAT is defined as profit after tax PBT is defined as profit before tax PBT margin is calculated as profit before tax before significant items as a percentage of revenue PCP is defined as prior corresponding period PVR is defined as per vehicle retail ROS is
Slide 36: For personal use only
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