Autosports Group Ltd · ASX:ASG
Autosports — FY2021 Earnings Presentation
37 slides from Autosports's earnings presentation, Aug 30, 2021
Slide 1: Autosports Group Limited 2021FY Presentation
For personal use only Autosports Group Limited 2021FY Presentation August 2021
Slide 2: Agenda
AGENDA For personal use only 2021FY Highlights & Results Summary 2 0 2 1 F Y F i n a n c i a l Tr e n d s ASG COVID-19 Update & Strategic Review 2021FY Recap, 2022FY Focus Areas & Outlook Appendix
Slide 3: Agenda
AGENDA For personal use only 2021FY Highlights & Results Summary 2 0 2 1 F Y F i n a n c i a l Tr e n d s ASG COVID-19 Update & Strategic Review 2021FY Recap, 2022FY Focus Areas & Outlook Appendix
Slide 4: Highlights
HIGHLIGHTS For personal use only Statutory revenue up 16.3% on FY20 to $1.98b Normalised NPBT* was $75.2m up from $23.1m on higher revenues and improved operating leverage Strong operating cash production of $94m positions ASG well for managing uncertain times and growth Ta n g i b l e a s s e t s g
Slide 5: Statutory Result
STATUTORY RESULT For personal use only Statutory ▪ Revenue growth of 16.3% driven by A$M Statutory Statutory Restated o Organic growth of $211m 2021FY 2020FY 2019FY resulting from strong market Total Revenue 1,978.4 1,701.7 1,693.6 conditions Gross Profit 338.3 265.4 275.5 o $116m in growth from Ope
Slide 6: Normalised Financial Result
NORMALISED FINANCIAL RESULT For personal use only $m 2021FY 2020FY 2019FY New Vehicles 1,273.3 988.2 977.4 ▪ Diverse revenue streams support overall gross Used Vehicles 432.9 430.7 420.4 profit margin improvement to 17.1% Finance & Insurance 28.2 26.5 23.5 Aftermarket 14.5 12.3 12.1 ▪ 28.8% growth i
Slide 7: ASG | Focused on Shareholder Returns
ASG | FOCUSED ON SHAREHOLDER RETURNS For personal use only Normalised 2016 2021 Growth WHAT WE SAID There is an opportunity to consolidate a fragmented market by acquisition led growth Brand representation 11 18 64% ▪ There is an opportunity to consolidate a Revenue $'millions 1,221.3 1,978.4 62% fr
Slide 8: Proven Record of Growth
PROVEN RECORD OF GROWTH Since listing ASG has pursued a clear and focused strategy evenly balanced between acquisitions, organic and greenfield growth For personal use only 2017 ▪ Doncaster BMW ▪ Doncaster MINI Garage 2020 ▪ Doncaster Motorrad ▪ Trivett Alexandria ▪ Bundoora BMW ▪ Jaguar 2019 ▪ Land
Slide 9: Diversified Portfolio Delivers More Consistent Returns
DIVERSIFIED PORTFOLIO DELIVERS MORE CONSISTENT RETURNS For personal use only Revenue by Brand ▪ On listing 41% of ASG’s revenue came from one brand – Audi 2016FY 2021FY 3% 2% ▪ Revenue was generated in NSW and QLD only Audi 4% Audi 5% Volkswagen 26% Volkswagen 8% 24% Mercedes ▪ In 2021 we represent
Slide 10: Agenda
AGENDA For personal use only 2021FY Highlights & Results Summary 2 0 2 1 F Y F i n a n c i a l Tr e n d s ASG COVID-19 Update & Strategic Review 2021FY Recap, 2022FY Focus Areas & Outlook Appendix
Slide 11: Financial Trends
FINANCIAL TRENDS For personal use only ▪ Resilient business model allowing 2,500.0 Revenue revenue growth, outperforming overall 1,400,000 WLTP new vehicle market & Bugs COVID-19 2,000.0 1,200,000 ▪ Revenue underpinned by organic and 1,978.4 1,000,000 acquired growth 1,691.4 1,681.9 1,699.3 1,500.0
Slide 12: Normalised Gross Margin Overview
NORMALISED GROSS MARGIN OVERVIEW For personal use only Normalised GP margin GROSS MARGIN DRIVERS 17.5% 17.1% 17.0% ▪ Gross profit margins continue to improve 16.3% 16.5% ▪ Gross profit margin was 16.0% 15.7% negatively impacted by the 15.6% Victorian lockdowns on high 15.5% margin back end revenue 1
Slide 13: Disciplined Expense Management Normalised
DISCIPLINED EXPENSE MANAGEMENT NORMALISED Will drive further improvements to EBITDA margin For personal use only 18.0% 17.1% IMPROVED OPERATING LEVERAGE 17.0% 16.3% 15.7% 16.0% 14.9% 15.6% ▪ PCP Like for like Op Ex increased $9m (4%) against like 15.0% 14.5% for like revenue increase of $213m (12.4%
Slide 14: Normalised Margin Overview
NORMALISED MARGIN OVERVIEW For personal use only 5.0% EBITDA 4.7% PROFIT MARGIN DRIVERS 4.5% H1 2021FY 4.2% 3.7% H2 2021FY 5.1% 3.8% 4.0% 3.3% 3.7% ▪ 2016FY – 2021FY EBITDA by CAGR of 18% outpacing revenue growth 3.5% 3.1% 3.0% 2.6% 2.6% 2.6% driven by: 2.5% 2.2% 2.0% 1.7% ▪ Disciplined Op Ex manage
Slide 15: 2021FY Cash Flow
2021FY CASH FLOW ASG’s strong cash flow positions the business well to manage uncertain times and unlock future growth potential For personal use only ▪ Profit performance drove strong operating cash generation of $94.0m ▪ Closing cash up $58m to $96.8m (2020: $38.8m) ▪ H1 dividend payment of $4m ▪
Slide 16: 2021FY Liquidity | ASG COVID-19 Response & Impacts
2021FY LIQUIDITY | ASG COVID-19 RESPONSE & IMPACTS Clear focus on improving capacity For personal use only 2021FY LIQUIDITY MOVEMENTS ▪ Balance sheet prudently managed to ensure stability through uncertain COVID-19 lockdown periods ▪ Strong cash balance ensures we are well positioned for any future
Slide 17: Strong Balance Sheet
STRONG BALANCE SHEET For personal use only Balance Sheet SET FOR GROWTH 2021FY 2020FY 2019FY Cash & Cash Equivalents (96,844) (38,817) (11,292) ▪ Cash at hand $96.8m up $58m Corporate debt 95,662 90,124 78,989 ▪ Corporate debt of $95.6m Floorplan debt 271,247 375,388 395,175 underpinned by $56.5m pr
Slide 18: Agenda
AGENDA For personal use only 2021FY Highlights & Results Summary 2 0 2 1 F Y F i n a n c i a l Tr e n d s ASG COVID-19 Update & Strategic Review 2021FY Recap, 2022FY Focus Areas & Outlook Appendix
Slide 19: Current COVID-19 Lockdown and Impact
CURRENT COVID-19 LOCKDOWN AND IMPACT For personal use only ASG’s first priority is the safety of its staff and its customers. ASG fully supports the NSW and Victorian health orders with regards to lockdowns. Whilst lockdowns impact the business ASG has improved its processes in dealing with lockdown
Slide 20: Strong Performance Against Market
STRONG PERFORMANCE AGAINST MARKET Luxury brands account for 87% of ASG’s new vehicle revenue For personal use only NEW VEHICLE MARKET Luxury and Prestige market share ▪ New vehicle market returned to growth in 2021 1,400,000 40% following 30 months of contraction 1,200,000 35% ▪ Underlying demand co
Slide 21: Used Car Strategy and Update
USED CAR STRATEGY AND UPDATE ASG has a simple used car strategy built around sourcing well priced used cars and retailing them through the correct channel to maximise returns For personal use only 3 CHANNELS TO MARKET STRATEGY IS WORKING GROWTH OPPORTUNITY ▪ Franchised used vehicle outlets attached
Slide 22: Service & Parts Update
SERVICE & PARTS UPDATE Diverse revenue streams support greater resilience and improved gross profit margins For personal use only WHY FOCUS ON BACK-END REVENUE? COVID-19 IMPACT POST LOCKDOWN OPPORTUNITY ▪ ASG’s diverse revenue streams support ▪ Between 2016 and 2021FY ASG’s ▪ ASG is targeting a retu
Slide 23: Property Portfolio Strategy
PROPERTY PORTFOLIO STRATEGY For personal use only PROPERTY STRATEGY ▪ Control of important assets removing the risk of losing an important site Acq date Automotive Property Portfolio $'millions May-18 Mercedes-Benz Macgregor dealership 12.0 ▪ Flexibility to actively manage portfolio if a site no lon
Slide 24: Operational and Structural Update
OPERATIONAL AND STRUCTURAL UPDATE Since listing ASG has pursued a disciplined strategy of growth in luxury and prestige automotive businesses. For personal use only ▪ High gross profit potential businesses ▪ Metropolitan markets with synergy opportunities ▪ Brand partners with strong future product
Slide 25: Agenda
AGENDA For personal use only 2021FY Highlights & Results Summary 2 0 2 1 F Y F i n a n c i a l Tr e n d s ASG COVID-19 Update & Strategic Review 2021FY Recap, 2022FY Focus Areas & Outlook Appendix
Slide 26: Results Recap
RESULTS RECAP For personal use only Statutory revenue up 16.3% on FY20 to $1.98b Normalised NPBT* was $75.2m up from $23.1m on higher revenues and improved operating leverage Strong operating cash production of $94m positions ASG well for managing uncertain times and growth Ta n g i b l e a s s e t
Slide 27: Focus Areas | COVID-19 Prepared & Future Ready
FOCUS AREAS |COVID-19 PREPARED & FUTURE READY For personal use only Continue to focus on the health of our staff and customers especially in locked down markets Maintain the focus on gross margin across all revenue streams on the available revenue Settle Bundoora BMW property acquisition and integra
Slide 28: Outlook
OUTLOOK For personal use only Current lockdown restrictions mean outcomes remain uncertain making it prudent not to provide guidance Underlying demand is expected to remain strong throughout 2022FY New vehicle supply will continue to be constrained throughout 2022FY as a result of semi conductor sho
Slide 29: Agenda
AGENDA For personal use only 2021FY Highlights & Results Summary 2 0 2 1 F Y F i n a n c i a l Tr e n d s ASG COVID-19 Update & Strategic Review 2021FY Recap, 2022FY Focus Areas & Outlook Appendix
Slide 30: ASG Brand Portfolio
ASG BRAND PORTFOLIO For personal use only USED CAR COLLISION REPAIR MOTOR VEHICLES (41) MOTORCYCLES ( 3 ) DEALERSHIPS ( 3 ) FACILITIES ( 6 ) 6 3 1 2 3 2 * 1 3 2 1 4 2 2 1 3 1 1 1 2 1 1 2 3 1 4 * Expected opening 2022
Slide 31: Statutory Financials Consolidated
STATUTORY FINANCIALS CONSOLIDATED For personal use only 2019FY 2 1 $m 2021FY 2020FY Restated 2018FY 2017FY Total Revenue 1,978.4 1,701.7 1,693.6 1,692.0 906.1 Gross Profit 338.3 265.4 275.5 265.9 142.6 EBITDA 129.4 76.6 80.9 59.6 28.4 EBIT 79.8 (76) 41.5 50.7 23.8 NPBT 61.7 (98) 16.9 37.4 18.4 NPAT
Slide 32: AASB16 Leases Impact
AASB16 LEASES IMPACT For personal use only 2021FY Statutory 2020FY Statutory After After A$m Pre AASB16 AASB16 AASB16 A$m Pre AASB16 AASB16 AASB16 Total Revenue 1,978.42 1,978.42 Total Revenue 1,701.7 1,701.7 Gross Profit 338.33 338.33 Gross Profit 265.4 265.4 Opex (248.2) 39.3 (208.9) Opex (219.0)
Slide 33: 2021FY Revenue Bridge
2021FY REVENUE BRIDGE For personal use only
Slide 34: 2021FY Operating Expense Bridge
2021FY OPERATING EXPENSE BRIDGE For personal use only
Slide 35: Statutory PBT to Normalised PBT Reconciliation
STATUTORY PBT TO NORMALISED PBT RECONCILIATION For personal use only
Slide 36: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER For personal use only 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 does not purpo
Slide 37: For personal use only
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