Autosports Group Ltd · ASX:ASG
Autosports — Investor Presentation (August 2023)
32 slides from Autosports's investor presentation, Aug 23, 2023
Slide 1: Autosports Group Limited 2023FY Presentation
AUTOSPORTS GROUP LIMITED 2023FY PRESENTATION August 2023
Slide 2: Agenda
AGENDA HIGHLIGHTS 2023FY RESULTS SUMMARY 2023FY FINANCIAL METRICS STRATEGIC UPDATE RECAP & OUTLOOK APPENDIX
Slide 3: Financial Highlights
ASG 2023FY PRESENTATION AUGUST 23 3 FINANCIAL HIGHLIGHTS REVENUE Up 26% GROSS PROFIT up 27% $2,371 million on PCP $475.6m on PCP NORMALISED NPBT 1 EBITDA up 30.7% up 33% $198.0m on PCP $115.7 million on PCP STATUTORY NPAT up 22% FY DIVIDEND 19 cents (fully franked) up 19% $66.6 million on PCP on PCP
Slide 4: Strategic Highlights
ASG 2023FY PRESENTATION AUGUST 23 4 STRATEGIC HIGHLIGHTS Consistent delivery of strategic objectives creates strong platform for growth ACQUISITION GROWTH ▪ On strategy acquisitions continue to drive accretive growth ▪ Auckland City BMW Group added $167m in revenue (August 2022 settlement) ▪ Motorli
Slide 5: Outlook 2024FY
ASG 2023FY PRESENTATION AUGUST 23 5 OUTLOOK 2024FY Revenue growth will come from the full year cycling of 2023FY acquisitions in Auckland and South Queensland Improved new vehicle supply combined with strong order banks support organic growth Service and Parts should continue above trend organic gro
Slide 6: Agenda
AGENDA HIGHLIGHTS 2023FY RESULTS SUMMARY 2023FY FINANCIAL METRICS STRATEGIC UPDATE RECAP & OUTLOOK APPENDIX
Slide 7: Normalised Financial Result
ASG 2023FY PRESENTATION AUGUST 23 7 NORMALISED* FINANCIAL RESULT Growth on $m 2023FY 2022FY PCP ▪ New vehicle revenue up 25.9%, like for like increase of 16.2% New Vehicles 1,435.4 1,139.8 25.9% ▪ Used vehicle revenue up 22.4%, like for like increase 8.5% Used Vehicles 543.3 444.1 22.4% Service 157.
Slide 8: Statutory Result
ASG 2023FY PRESENTATION AUGUST 23 8 STATUTORY RESULT Growth on $m 2023FY 2022FY PCP HIGHLIGHTS Total Revenue 2,371.4 1,876.0 26.4% Cost Of Goods Sold -1895.79 -1502.2 0.26200853 ▪ NPAT up 22.1% on PCP Gross Profit 475.6 373.8 27.3% ▪ EPS up 22.6% on PCP (since listing EPS CAGR of 16%) Operating Expe
Slide 9: Agenda
AGENDA HIGHLIGHTS 2023FY RESULTS SUMMARY 2023FY FINANCIAL METRICS STRATEGIC UPDATE RECAP & OUTLOOK APPENDIX
Slide 10: 2023FY Revenue Drivers
ASG 2023FY PRESENTATION AUGUST 23 10 2023FY REVENUE DRIVERS REVENUE BREAKDOWN 2023FY ▪ Strong underlying market saw ASG’s like for like new vehicle revenue grow 16.2% excluding agency impact ▪ The impact of agency model accounting treatments reduced new vehicle revenue by ~$60m in 2023FY ▪ Used vehi
Slide 11: Balanced Revenue Growth
ASG 2023FY PRESENTATION AUGUST 23 11 BALANCED REVENUE GROWTH ASG has a clear strategy to grow via acquisition and organic growth. In 2023FY this mix of acquisition led and organic growth has been delivered in each of our main revenue streams.
Slide 12: Unlocking Improved Operating Leverage
ASG 2023FY PRESENTATION AUGUST 23 12 UNLOCKING IMPROVED OPERATING LEVERAGE 25.0% 19.9% 20.1% DISCIPLINED EXPENSE 20.0% MANAGEMENT NORMALISED* 17.1% 16.3% 15.6% ▪ Like for like Op Ex increased $29m (13.1%) on PCP 15.0% 11.2% 11.2% 11.8% 11.7% 10.4% — Like for like employee costs increased $24m 10.0%
Slide 13: Normalised Margin Overview
ASG 2023FY PRESENTATION AUGUST 23 13 NORMALISED MARGIN OVERVIEW EBITDA (normalised) A$m H1 H2 Job Keeper PROFIT MARGIN DRIVERS 250.0 ▪ 2019FY – 2023FY EBITDA GROWTH DRIVEN BY: CAGR 2019 – 2023 200.0 23% — Increased scale and maturity supporting underlying profit 150.0 — Strong Op Ex management 107.0
Slide 14: 2023FY Cash Flow
ASG 2023FY PRESENTATION AUGUST 23 14 2023FY CASH FLOW ASG’s strong cash flow positions the Group well to unlock future growth potential STRONG OPERATING CASH: ▪ Strong cash from operations in 2023FY of $166m has enabled ASG to: ▪ Payout a dividend of $36.8m with DPS up 19% on PCP ▪ Invest $116.8m in
Slide 15: Agenda
AGENDA HIGHLIGHTS 2023FY RESULTS SUMMARY 2023FY FINANCIAL METRICS STRATEGIC UPDATE RECAP & OUTLOOK APPENDIX
Slide 16: Strategic Advantage
ASG 2023FY PRESENTATION AUGUST 23 17 STRATEGIC ADVANTAGE ASG’s consistent strategy delivers high levels of scalable and repeatable growth coupled with resilient earnings and shareholder returns BRAND FOCUSED ▪ Luxury and Prestige brands drive higher revenue per transaction ▪ EV product range prevent
Slide 17: A Luxury Brand Focused Business
ASG 2023FY PRESENTATION AUGUST 23 17 A LUXURY BRAND FOCUSED BUSINESS Focus on luxury segment drives sustainable margin growth LUXURY BRANDS ▪ Higher maintainable gross margins ▪ Tight supply driving large order banks 9 7 6 3 ▪ Customer capacity to change to higher value EVs ▪ Loyal service, parts an
Slide 18: Electric Vehicle Market
ASG 2023FY PRESENTATION AUGUST 23 19 ELECTRIC VEHICLE MARKET Traditional luxury brands are most likely to make a profitable and sustained transition to EV VOLUME BRANDS ▪ New market entrants rising (BYD, Chery, MG, NIO) ▪ Tight pricing and margins ▪ Competition fierce ▪ Winners uncertain ▪ Volume av
Slide 19: Growth Opportunity
ASG 2023FY PRESENTATION AUGUST 23 20 GROWTH OPPORTUNITY The automotive industry remains highly fragmented Number of ASG Dealerships and collision repair facilities 70 A FRAGMENTED MARKET 60 ▪ There are currently more than 3,380 dealerships in Australia 50 ▪ Approximately 30% of these compete in the
Slide 20: Acquisition Track Record
ASG 2023FY PRESENTATION AUGUST 23 20 ACQUISITION TRACK RECORD ASG has a proven record of acquiring and integrating luxury dealerships FINANCIAL ACQUISITION LOCATION ▪ Since 2016 ASG has made 12 acquisitions YEAR adding $1,193m in revenue ▪ ASG’s improved financial, geographic 2017 Doncaster BMW VIC
Slide 21: Agenda
AGENDA HIGHLIGHTS 2023FY RESULTS SUMMARY 2023FY FINANCIAL METRICS STRATEGIC UPDATE RECAP & OUTLOOK APPENDIX
Slide 22: Results Recap
ASG 2023FY PRESENTATION AUGUST 23 22 RESULTS RECAP Strong organic growth combined with on-strategy acquisitions saw revenue grow 26.4% to $2,371m Orderbank continued to grow in vehicle volumes, revenue, gross profit and security Stable gross profit margins of 20.1% allowed gross profit to grow 27.3%
Slide 23: Strategic Outlook
ASG 2023FY PRESENTATION AUGUST 23 23 STRATEGIC OUTLOOK ASG strategy is to drive growth and shareholder returns Consolidate the fragmented automotive retail market Continue to invest in organic growth streams Develop scaled based synergies to improve operating leverage Deliver consistent shareholder
Slide 24: Outlook 2024FY Recap
ASG 2023FY PRESENTATION AUGUST 23 24 OUTLOOK 2024FY RECAP Revenue growth will come from the full year cycling of 2023FY acquisitions in Auckland and South Queensland Improved new vehicle supply combined with strong order banks support organic growth Service and Parts should continue above trend orga
Slide 25: Agenda
AGENDA HIGHLIGHTS 2023FY RESULTS SUMMARY 2023FY FINANCIAL METRICS STRATEGIC UPDATE RECAP & OUTLOOK APPENDIX
Slide 26: About ASG
ASG H1 2023FY PRESENTATION FEB 23 26 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 ▪ Established 18 years ago by founders and major shareholders, HISTORY Ian Pagent and Nick Pagent ▪ Listed in Nov
Slide 27: Track Record of Delivering Growth and Shareholder Returns
MACQUARIE AUSTRALIA CONFERENCE 2023 28 TRACK RECORD OF DELIVERING GROWTH AND SHAREHOLDER RETURNS Since listing ASG has maintained a track record of delivering both growth and shareholder returns 2017FY** 2023FY Movement Financial Metrics Revenue $'millions 1,446.2 2,371.4 64% NPBT normalised* $'mill
Slide 28: AASB16 Leases Impact
ASG 2023FY PRESENTATION AUGUST 23 28 AASB16 LEASES IMPACT 2022FY Statutory 2023FY Statutory After After A$m Pre AASB16 AASB16 AASB16 A$m Pre AASB16 AASB16 AASB16 Total Revenue 1,876.0 1,876.0 Total Revenue 2,371.43 2,371.43 Gross Profit 373.8 373.8 Gross Profit 475.63 475.63 Opex (263.8) 39.2 (224.6
Slide 29: Property Strategy
ASG 2023FY PRESENTATION AUGUST 23 29 PROPERTY STRATEGY ASG’s property strategy is set to support our dealership growth strategy LOCATION DATE ACQUIRED 2023FY CARRYING VALUE ▪ Historical acquisition cost $203.1m Macgregor, QLD May 2018 ▪ Current book value* $194.2m Macgregor, QLD – vacant land Dec 20
Slide 30: Questions
QUESTIONS auiosports .
Slide 31: Important Notice and Disclaimer
ASG 2023FY PRESENTATION AUGUST 23 31 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 32: Autosports Group
autosports group” DRIVE ENDLESS POSSIBILITIES
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