Slide 1: 2017 Half Year Results Presentation
For personal use only 2017 Half Year Results August 2017 Presentation
Slide 2: 2017 Half Year Highlights
2017 Half Year Highlights For personal use only • Record statutory profit before tax $68.1m, up 0.3% on 1H16 • Record net profit after tax $49.3m, up 0.4% on 1H16 • Statutory (basic) EPS of 25.4 cents, a decrease of 3.0% on 1H16 • Record fully franked interim dividend of 13.5 cents, up 3.8% on 1H16
Slide 3: Australian New Vehicle Sales – June YTD 2017
Australian New Vehicle Sales – June YTD 2017 For personal use only Total Australian Market Share by State (VFACTS) ACT • New vehicle market up 0.2% 2% WA 8% • WA market share down 1% NSW • VIC market share up 1% 34% VIC 28% • Light commercial vehicle market share up 1% to 20%, offsetting decline in
Slide 4: Exchange Rates / New Vehicle Sales by Country of Origin
Exchange Rates New Vehicle Sales (VFACTS) For personal use only by Country of Origin 4% 4% 5% Japan 29% Thailand EU Countries 15% Korea Australia USA Other 18% 25% Total market: 599,552 vehicles 2017 Half Year Results Presentation 4
Slide 5: Affordability
Affordability For personal use only 90 Day Bank Bill Rate 9.00 8.00 7.00 6.00 Last Price (%) 5.00 4.00 3.00 2.00 1.00 - 2017 Half Year Results Presentation 5
Slide 6: APE Vehicle Sales 1H 2017
APE Vehicle Sales 1H 2017 For personal use only APE New Vehicle Sales by State APE Used Retail Vehicle Sales by State Total 31,110 + 8.0% (5.2% of National Market) Total 12,319 (1) + 10.5% (est. 1.1% of National Market) 3% 3% 11% 10% 15% 21% Cars - NSW Retail Cars - NSW Cars - NT 3% Retail Cars - NT
Slide 7: 2017 Half Year Highlights - Financial
2017 Half Year Highlights - Financial For personal use only • Statutory (basic) EPS of 25.4 cents, a decrease of 3.0% on 1H16 • Record fully franked interim dividend of 13.5 cents, up 3.8% on 1H16 • EBITDA $88.8m, up 2.5% on 1H16 • Underlying(1) net profit before tax increased by 2.6% to $68.3 milli
Slide 8: Financial Summary
Financial Summary For personal use only $ Million 1H17 1H16 Change Revenue 2,033.4 1,838.3 Up 11% EBITDA 88.8 86.7 Up 2% EBIT 80.5 80.2 Up 0% PBT 68.1 67.9 Up 0% PAT 49.3 49.1 Up 0.4% Cash from operating activities 100.3 71.0 Up 41% NTA/share 2.30 2.33 Down -1% Net gearing excluding bailment debt 24
Slide 9: Balance Sheet - Summary
Balance Sheet - Summary For personal use only 1H17 ($M) • New vehicle inventory funded by bailment debt CA - CL 110.4 • Parts and most used vehicle inventory is Freehold Property 304.1 balance sheet funded Other Non Current Tangible Assets 70.7 • Increased investment in AHG to 23.0% shareholding (YE
Slide 10: Earnings Per Share
Earnings Per Share For personal use only 2017 Half Year Results Presentation 10
Slide 11: Financial Trends – Underlying PBT
Financial Trends – Underlying PBT For personal use only Financial Trends: Underlying PBT 100.0 Operating Earnings (EBITDA) * PBT Underlying ** 88.5 88.8 90.0 85.4 80.0 78.1 76.3 70.1 66.6 70.9 68.0 68.3 70.0 61.1 61.9 59.0 57.8 60.1 58.5 $ million 60.0 54.2 52.1 50.0 44.2 45.3 46.1 40.6 41.2 42.0 40
Slide 12: Financial Trends
Financial Trends For personal use only Includes AHG dividend from 2012 Operating Earnings is EBITDA Underlying excluding profit/loss on sale of assets and from associates. It includes AHG dividend. 2017 Half Year Results Presentation 12
Slide 13: Financial Trends
Financial Trends For personal use only 2017 Half Year Results Presentation 13
Slide 14: Financial Trends
Financial Trends For personal use only 2017 Half Year Results Presentation 14
Slide 15: Segment Results
Segment Results For personal use only Car retailing Segment Contributions Strong results from VIC and TAS operations, 1H16 1H17 80 NSW and SA performed well, challenging market conditions impacted QLD results. 70 67.9 68.1 Strong trading in parts and service businesses 60 Truck retailing 50.7 50 45.
Slide 16: AHG Investment
AHG Investment For personal use only • 76,259,234 shares held at 30/06/17, 23.0% • Investment valued at $255.5m at $3.35 (30/06/17) • An unrealised revaluation loss of $44.9m within investment segment • Share price (31/12/16) $3.95, (30/06/17) $3.35, (4/08/17) $3.77 • 9,939,235 new shares acquired i
Slide 17: Consumer Engagement data showing healthy MoM growth
Consumer Engagement data showing healthy MoM growth with ‘Usage ‘ & ‘Trial’ For personal use only • Unique monthly traffic to Carzoos website showing healthy month on • New Carzoos customer account registrations showing month-on- month growth month growth • *March denotes Easter seasonality + Major
Slide 18: Buy and Sell leads in steady growth
Both types of leads - Buy & Sell - in steady growth. Recent accelerated growth in Buy leads driven by deliberate inventory strategy. For personal use only Source: Source: Contact Tracker, Google Analytics, Autogate as at August 21st 2017 2017 Half Year Results Presentation 18
Slide 19: Leads and Transaction showing steady growth correlation
Leads and Transaction showing steady growth correlation For personal use only • 2017 Q3 Average = ~20% Conversion Zooper Carzoos Variance (% Pts) Enquiry to Appointment (%) 54 68 14 Show to Sale (%) 54 75 21 • Source: Contract Tracker, Autogate Pro, Titan Source: Contact Tracker, Google Analytics, A
Slide 20: Carzoos vs. Carvana … The parallels are there
Carzoos vs. Carvana … The parallels are there For personal use only Cumulative Unit Transactions Cumulative Unit Transactions 1st Carzoos store North Lakes Acquired own opened at Garden City store launched inventory Source: https://www.sec.gov/ - Carvana Co., https://investors.carvana.com/stock-info
Slide 21: Customers rate us STARS on their Carzoos experience
Customers rate us 5 STARS on their Carzoos experience For personal use only Carzoos Carsales Autotrader (UK) TrustScore (0-10) 9.2 8.7 9.3 Source: https://www.trustpilot.com 2017 Half Year Results Presentation 21
Slide 22: For personal use only
For personal use only Source: https://au.trustpilot.com/review/carzoos.com.au 2017 Half Year Results Presentation 22
Slide 23: Carzoos recognised on the International stage
Carzoos recognised on the International stage. For personal use only Source: https://stevieawards.com/iba, http://cxoleadersawards.com/ 2017 Half Year Results Presentation 23
Slide 24: The core is strong but in transition
The core is strong but in transition For personal use only • Leverage scale to drive unique income opportunities/regions • Roll out successful expense reduction strategies across all operations • Transition underperforming operations (5-10% portfolio) • Continue disciplined approach to acquisition s
Slide 25: The future is full of opportunity
The future is full of opportunity For personal use only • Investment in Automotive Industry is at all time record levels • Products and services provided are evolving rapidly creating new and increased consumer demand • History demonstrates consumers will want to experience new products and services
Slide 26: BNE Auto Mall, Brisbane Airport
BNE Auto Mall, Brisbane Airport For personal use only 2017 Half Year Results Presentation 26
Slide 27: Disclaimer
Disclaimer For personal use only • 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 b
Slide 28: Appendix
For personal use only Appendix 2017 Half Year Results Presentation 28
Slide 29: A.P. Eagers Company Profile
For personal use only A.P. Eagers COMPANY PROFILE 2017 Half Year Results Presentation 29
Slide 30: AP Eagers Today (June 2017)
AP Eagers Today (June 2017) For personal use only • 104 year old automotive retail group founded in 1913 • 60 years as a listed public company – dividend paid every year • A.P. Eagers owns $304.1m of prime real estate • Represents all 20 of the top 20 selling vehicle brands in Australia and 33 car b
Slide 31: AP Eagers Volume Car Brands
AP Eagers Volume Car Brands For personal use only Represents all 10 of the top 10 selling volume car brands in Australia 2017 Half Year Results Presentation 31
Slide 32: AP Eagers Luxury Car Brands
AP Eagers Luxury* Car Brands For personal use only Represents 10 of the top 11 selling luxury car brands in Australia * Luxury is defined as luxury vehicle selling more than 500 units annually (V Facts) 2017 Half Year Results Presentation 32
Slide 33: AP Eagers Truck and Bus Brands
AP Eagers Truck and Bus Brands For personal use only Representing 11 truck and bus brands 2017 Half Year Results Presentation 33
Slide 34: Revenue by State / % of group Revenue
Revenue by State / % of group Revenue For personal use only AP Eagers $2.03 billion revenue for HY $0.07bn (4%) $0.94bn (46%) $0.0bn $0.32bn (16%) $0.39bn (19%) $0.21bn (10%) $0.1bn (5%) 2017 Half Year Results Presentation 34
Slide 35: Income Opportunity Franchised Dealership
Income Opportunity Franchised Dealership For personal use only NEW CAR SALES: + Accessories + Finance + Insurance + Car Care + Trade-In USED CAR SALES: + Accessories + Finance + Insurance + Car Care + Trade-In VEHICLE SERVICE: - Value add products i.e. Tyres, wheel alignments, batteries, wiper blade