Slide 1: Investor Presentation Fourth Quarter and Full Year 2022
Investor Presentation Fourth Quarter and Full Year 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be dee
Slide 3: AutoNation Investment Highlights
AutoNation Investment Highlights ► Substantial, predictable cash flow generation coupled with disciplined capital allocation drives long-term value ► Developing end-to-end transportation solutions to better serve our 11+ million customer base ► Multiple growth channels within core business and in ad
Slide 4: Business Highlights – Full Year 2022
Business Highlights – Full Year 2022 AutoNation took critical steps in 2022 to strengthen, extend and expand its core business to become the nation’s most comprehensive transportation services provider and to address the significant industry transformation underway, encompassing product changes, man
Slide 5: Financial Highlights – Full Year 2022
Financial Highlights – Full Year 2022 Our diversified business model and disciplined capital deployment delivered record results for full year 2022 Adj. EPS of $24.57, a Full Year Record and +35% over Prior Year o GAAP EPS of $24.29 increased 33% over Prior Year Gross Profit of $5.3 Billion, a Full
Slide 6: Record Performance in Full Year 2022
Record Performance in Full Year 2022 Total Revenue ($MM) Variable Gross Profit ($MM) After-Sales Gross Profit +4% $26,985 $3,274 +3% $3,357 ($MM) $25,844 +14% $1,900 $1,673 FY '21 FY '22 FY '21 FY '22 FY '21 FY '22 Adj. SG&A/Gross (%) Adj. Operating Income Adj. EPS ($) ($MM) +35% $24.57 58.0% -70bps
Slide 7: FY 2022 Gross Profit Walk
FY 2022 Gross Profit Walk $228 $5,265 (in $mm) $165 ($135 ) $53 $4,953 FY 2021 New Used CFS After-Sales FY 2022 ____________________ 7 *Chart excludes “Other” Gross Profit of approximately $2 million
Slide 8: Disciplined Capital Allocation Supporting Growth
Disciplined Capital Allocation Supporting Growth Share Repurchases ($MM) $2,303 $1,710 ► During past two years have invested more than $4 billion in share repurchases, reducing shares outstanding from 83 million to 48 $382 $100 $45 million 2018 2019 2020 2021 2022 ► Capital expenditures and acquisit
Slide 9: Significant EPS Growth and Cash Flow Generation
Significant EPS Growth and Cash Flow Generation 40+% Adjusted EPS ($) CAGR $24.57 $18.14 ► Full Year 2022 Adj. EPS increased by 35% $3.88 $4.56 $7.11 from 2021 and has had 40+% CAGR over the past 5 years 2018 2019 2020 2021 2022 ► EPS growth fueled by record levels of Cash Flow From Operations ($MM)
Slide 10: New Vehicle Sales Constrained by Inventory – Margins Robust
New Vehicle Sales Constrained by Inventory – Margins Robust New Retail Units SAAR (mm) 18 310,839 17 282,602 262,403 249,654 16 229,971 15 14 13 12 11 10 FY '18 FY '19 FY '20 FY '21 FY '22 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 DSO 60 52 42 9 19 Average SAAR of 16.9mm, from
Slide 11: Used Vehicle Performance Highlights Value of Business Model
Used Vehicle Performance Highlights Value of Business Model Used Retail Units 304,364 299,806 237,722 246,113 241,182 ► Continued to manage Used business well – vehicle acquisitions self sourced 94% ► PVRs remained healthy FY '18 FY '19 FY '20 FY '21 FY '22 DSO 42 39 39 40 31 ► Significant additiona
Slide 12: AutoNation USA – Expansion Continues Performance Exceeding Expectations
AutoNation USA – Expansion Continues Performance Exceeding Expectations ► Provides opportunity to expand geographic footprint and gain pre-owned market share ► Opened 13th store during the fourth quarter in St. Louis ► Opened stores Austin and Albuquerque in early 2023 ► Overall performance of store
Slide 13: Continued Industry Leading Customer Financial Services
Continued Industry Leading Customer Financial Services 9% Revenue ($MM) CAGR $1,385 $1,437 2022 Results $1,023 $1,059 $981 ► Revenue increased 4% or $53 million ► PVR increased 11% or $270 ► Total Retail Units decreased 7% FY '18 FY '19 FY '20 FY '21 FY '22 10% Drivers and Trends PVR ($) CAGR ► Incr
Slide 14: After-Sales Consistently Growing
After-Sales Consistently Growing Revenue ($MM) $4,101 $3,572 $3,707 $3,448 $3,257 ► Continued focus on growth of After-sales ► Revenue up more than $500 million since 2019 FY '18 FY '19 FY '20 FY '21 FY '22 ► 2022 FY Gross profit up 14% from year ago Gross Profit ($MM) $1,900 $1,623 $1,673 $1,555 $1
Slide 15: Redefining After-Sales Reach and Convenience
Redefining After-Sales Reach and Convenience ► Mobile service solution backed by the country's most respected and admired automotive retail group ► Adds additional Customer-centric and convenient repair and service options for our Customers ► Resource for reconditioning and internal services to incr
Slide 16: Adjusted SG&A/Gross Profit & Operating Inc Margin
Adjusted SG&A/Gross Profit & Operating Inc Margin 73.9% Adj. SG&A / Gross Profit % 72.3% 67.2% 58.0% 57.3% ► SG&A/Gross Profit remains well below historical levels, slightly higher in recent quarters reflecting investments in technology and new business FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Adjust
Slide 17: Q4 & FY 2022 Adjusted Financial Highlights
Q4 & FY 2022 Adjusted Financial Highlights Fourth Quarter Full Year ($ in millions, except for per share data) 2022 2021 Change 2022 2021 Change Total revenue $6,697 $6,582 2% $26,985 $25,844 4% Gross profit $1,282 $1,322 -3% $5,265 $4,953 6% SG&A expenses $759 $750 1% $3,018 $2,870 5% SG&A / Gross
Slide 18: Select Historical Data
Select Historical Data Global Financial Crisis to 2022 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Avg. SAAR (mm) 13.1 10.3 11.5 12.6 14.3 15.4 16.4 17.4 17.5 17.1 17.2 17.0 14.5 14.9 13.7 14.9 New Retail SAAR (mm) 10.6 8.6 9.2 10.3 11.7 12.8 13.6 14.2 14.2 14.1 13.9 1
Slide 19: Appendix
Appendix This presentation contains certain non-GAAP financial measures for which we have set forth below reconciliations to the most comparable GAAP measures. The Company believes that these measures improve the transparency of the Company’s disclosure, provide a meaningful presentation of the Comp
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations Fourth Quarter 2022 Adjustments AUTONATION, INC. UNAUDITED SUPPLEMENTARY DATA, Continued ($ in millions, except per share data) Comparable Basis Reconciliations(1) Three Months Ended December 31, Income from Continuing Operations Before Operating Income Income Taxes Income T
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations Full Year 2022 Adjustments AUTONATION, INC. UNAUDITED SUPPLEMENTARY DATA, Continued ($ in millions, except per share data) Comparable Basis Reconciliations(1) Twelve Months Ended December 31, Income from Continuing Operations Before Operating Income Income Taxes Income Tax P
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Historical Adjusted Operating Income Twelve Months Ended Twelve Months Ended Twelve Months Ended ($ in millions) December 31, 2021 December 31, 2020 December 31, 2019 Percentage of Revenue Percentage of Revenue Percentage of Revenue Operating Income (%) Operating Income (%)
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted After-Sales Gross Profit / Adjusted D&A / Adjusted Other Income Three Months Ended December 31, P&S Gross Profit Depreciation and amortization Other income, net 2021 2020 $ Variance 2021 2020 $ Variance 2021 2020 $ Variance As reported $ 426.4 $ 385.4 $ 41.0 $ 49.9
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Historical Adjusted Net Income / Adjusted EPS (Annual) Twelve Months Ended December 31, Income from Continuing ($ in millions, except per share data) Operations Before Income Taxes Income Tax Provision(1) Net Income Diluted Earnings Per Share (2) 2021 2020 2019 2021 2020 201
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations Historical Adjusted Net Income / Adjusted EPS (Annual) ($ in millions, except per share data) Twelve Months Ended December 31, Income from Continuing Operations Before Income Taxes Income Tax Provision(1) Net Income Diluted Earnings Per Share (2) 2018 2017 2016 2018 2017 201
Slide 26: Follow us on social media at @autonation
Follow us on social media at @autonation 26