Slide 1: A.P. Eagers 2013 Full Year Results Presentation
For personal use only A.P. Eagers 2013 Full Year Results Presentation March 2014 Monday, March 03, 2014 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 2: 2013 Full Year Highlights
2013 Full Year Highlights For personal use only • Record statutory profit after tax up 15.1% • Record statutory basis EPS of 36.4 cents an increase of 7.1% • Record underlying EPS up 7.6% • Fully franked dividend of 15 cents for a record full year dividend of 23 cents • Dividend payout up 80% over 3
Slide 3: National Vehicle Sales
National Vehicle Sales For personal use only 1,200,000 1,100,000 1,000,000 Other 900,000 Honda 800,000 Subaru VW 700,000 Mitsubishi 600,000 Nissan 500,000 Ford 400,000 Hyundai Mazda 300,000 Holden 200,000 Toyota 100,000 - 2008 2009 2010 2011 2012 2013 Monday, March 03, 2014 © 2013 AP Eagers Limited.
Slide 4: Affordability
Affordability For personal use only Monday, March 03, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 5: Affordability: AUD/KRW Monthly
Affordability For personal use only AUD/KRW Monthly 1,300.00 Sep 13 to Feb 14 Avg = 972 1,200.00 1,100.00 1,000.00 900.00 800.00 700.00 600.00 500.00 3-5 Yr Vehicle Repurchase Period 400.00 Jan 09 to Jul 11 Avg = 300.00 1056 200.00 100.00 0.00 May-03 May-04 May-05 May-06 May-07 May-08 May-09 May-10
Slide 6: Affordability: AUD/EUR Monthly
Affordability For personal use only AUD/EUR Monthly 1.00 Sep 13 to Feb 14 Avg = 0.67 0.90 0.80 0.70 0.60 Current = 0.66 0.50 0.40 3-5 Yr Vehicle Repurchase Period 0.30 Jan 09 to Jul 11 Avg = 0.65 0.20 0.10 0.00 May-03 May-04 May-05 May-06 May-07 May-08 May-09 May-10 May-11 May-12 May-13 Jan-03 Jan-0
Slide 7: Affordability: AUD/THB Monthly
Affordability For personal use only AUD/THB Monthly 40.00 Sep 13 to Feb 14 Avg = 29.3 35.00 30.00 25.00 Current = 29.2 20.00 15.00 3-5 Yr Vehicle Repurchase Period 10.00 Jan 09 to Jul 11 Avg = 28.9 5.00 0.00 Dec-05 May-06 May-11 Apr-04 Dec-10 Jan-03 Jun-03 Nov-03 Oct-06 Mar-07 Aug-07 Apr-09 Jan-08 J
Slide 8: Affordability: AUD/JPY Monthly
Affordability For personal use only AUD/JPY Monthly 120.00 Sep 13 to Feb 14 Avg = 0.92 100.00 80.00 Current = 92.1 60.00 40.00 3-5 Yr Vehicle Repurchase Period Jan 09 to Jul 11 Avg 20.00 = 0.79 0.00 Dec-05 May-06 May-11 Apr-04 Dec-10 Jan-03 Jun-03 Nov-03 Oct-06 Mar-07 Aug-07 Apr-09 Jan-08 Jun-08 Oct
Slide 9: Affordability: AUD/USD Monthly
Affordability For personal use only AUD/USD Monthly 1.20 Sep 13 to Feb 14 Avg = 0.91 1.10 1.00 0.90 0.80 Current 0.90 0.70 0.60 0.50 3-5 Yr Vehicle Repurchase Period 0.40 Jan 09 to Jul 11 Avg 0.30 = 0.90 0.20 0.10 0.00 Dec-05 May-06 Dec-10 May-11 Jan-03 Jun-03 Apr-04 Nov-03 Oct-06 Mar-07 Aug-07 Apr-
Slide 10: Affordability: Day Bank Bill Rate
Affordability For personal use only 90 Day Bank Bill Rate 9.00 8.00 7.00 6.00 5.00 % 4.00 3.00 2.00 1.00 0.00 Monday, March 03, 2014 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 11: APE Vehicle Sales
APE Vehicle Sales For personal use only A.P Eagers New Vehicle Sales Total 42,610 (3.8% of National Market) A.P. Eagers Used Vehicle Sales Total 23,396 5% 4% Cars - Qld Retail Cars - Qld Cars - NT 29% 21% 24% Retail Cars - NT Cars - NSW Retail Cars - NSW 46% Cars - SA Retail Cars - SA National Truck
Slide 12: 2013 Full Year Highlights - Financial
2013 Full Year Highlights - Financial For personal use only • Record statutory basic EPS of 36.4 cents an increase of 7%. • Fully franked final dividend of 15 cents for a record full year dividend of 23 cents. • Dividend payout up 80% over 3 years. • EBITDA increased to $122m up 7%. • NPBT increased
Slide 13: Financial Summary - Statutory
Financial Summary - Statutory For personal use only $ Million 2013 2012 Change Revenue 2,672.8 2,642.5 Up 1% EBITDA 122.3 114.8 Up 7% EBIT 109.9 103.5 Up 6% PBT 86.7 78.7 Up 10% PAT 64.0 55.5 Up 15% Cash from operating 76.1 55.6 Up 37% activities NTA/share 2.34 2.06 Up 14% Gearing excluding 27% 30.0
Slide 14: Balance Sheet - Summary
Balance Sheet - Summary For personal use only 31/12/13 $m • New vehicle inventory and related CA-CL (excl. held for sale) 92.4 receivables funded by bailment debt. Freehold Property (incl. held for sale) 334.3 • Parts and most used vehicle inventory is balance sheet funded. Other Non Current Tangibl
Slide 15: Asset Fair Value Adjustments (before tax)
Asset Fair Value Adjustments (before tax) For personal use only $ Million 2013 2012 Balance Sheet - Freehold Property +3.2 +0.7 - Investments +22.8 +21.9 Profit or Loss - Investments 0 0 - Freehold Property 0 +1.1 - Intangible Assets 0 -0.8 Total +26.0 +21.8 Monday, March 03, 2014 © 2014 AP Eagers L
Slide 16: Earnings Per Share
Earnings Per Share EPS 2013 Bridge For personal use only 45.0 C e n 40.0 0.7 (2.7) t 1.2 0.2 s 36.4 2.5 p 34.0 0.2 35.0 0.1 0.1 (0.1) e r S 30.0 h a r e 25.0 20.0 Property Investment 2012 Interest exp. Dilution 2013 Cars AHG Investment Other/Tax Nat. Trucks Profit on Sale Corporate (net of int) MTAI
Slide 17: Financial Summary - Cashflow
Financial Summary - Cashflow For personal use only Cashflow Full Year 2013 Adj. for DRP 140.0 123.7 22.9 120.0 24.6 24.9 100.0 36.6 78.7 80.0 $ Million 60.0 40.0 16.3 12.1 8.7 1.2 20.0 0.0 -20.0 Monday, March 03, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 18: Financial Trends
Financial Trends For personal use only 118.3 120.0 113.5 Operating Earnings (EBITDA) 96.3 100.0 PBT Underlying 87.3 76.2 78.4 80.0 74.5 65.9 61.1 61.7 60.0 $ million 50.1 46.8 40.4 40.0 36.8 40.0 26.2 20.0 0.0 2006 2007 2008 2009 2010 2011 2012 2013 Operating Earnings is EBITDA and Impairment exclud
Slide 19: Financial Trends: Operating Margin
Financial Trends For personal use only Operating Margin 5.0% Operating Earnings Margin % Linear (Operating Earnings Margin %) 4.6% 4.5% 4.4% 4.3% 4.1% 4.0% 4.0% 3.9% 3.6% 3.5% 3.4% 3.0% 2.5% Includes AHG dividend from 2012. 2.0% 2006 2007 2008 2009 2010 2011 2012 2013 Monday, March 03, 2014 © 2014 A
Slide 20: Financial Trends: EPS Statutory (Basic)
Financial Trends For personal use only EPS Statutory (Basic) 40.0 December 2H June 1H 36.4 34.0 35.0 18.2 Gov't stimulus 17.7 30.0 GFC/Lehman Bros 25.5 24.4 25.0 13.0 13.4 21.0 Cents 20.0 10.4 18.2 15.0 16.3 9.8 12.5 10.0 11.0 1.7 10.6 8.1 5.0 0.0 2008 2009 2010 2011 2012 2013 Monday, March 03, 2014
Slide 21: Financial Trends: Dividend
Financial Trends For personal use only Dividend 25.0 23.0 Final Dividend Interim Dividend 20.0 20.0 16.0 15.0 Cents Per Share 15.0 12.4 12.8 13.0 8.8 10.4 10.0 8.0 8.2 4.4 5.0 7.0 8.0 4.6 5.6 4.4 4.4 0.0 2008 2009 2010 2011 2012 2013 Monday, March 03, 2014 © 2014 AP Eagers Limited. All Rights Reserv
Slide 22: Segment Results
Segment Results For personal use only $m Car Retailing -40.0 -20.0 0.0 20.0 40.0 60.0 80.0 100.0 Strong SA Cars performance offset by poor results Car Retailing 55.5 in Newcastle/Hunter Valley ,and consistent 57.3 QLD/NT results. Pressure on new car gross in some 8.0 brands/locations offset by reven
Slide 23: Car Retailing Segment
Car Retailing Segment For personal use only FY2013 FY2012 $m $m • Consistent operational results in Revenue 2,208 2,197 a less favorable market. • Inventory tightly managed. Segment Profit before tax 57.3 55.5 • RONA now reflects estimated segment effective tax rate not Total Assets 537.6 523.9 comp
Slide 24: Truck Retailing Segment
Truck Retailing Segment For personal use only FY2013 FY2012 $m $m • Consistent with 2012. Revenue 410.8 400.7 • Continued focus on improving the return on capital Segment profit before tax 8.4 8.0 employed. Total Assets 138.2 141.4 Total Liabilities 95.1 98.8 Net Assets 43.1 42.6 PBT/Revenue 2.0% 2.
Slide 25: Property Segment
Property Segment For personal use only FY2013 FY2012 $m $m • Lower interest cost in 2013. Rental Income 28.9 29.1 • Hidden Valley, Darwin and James St, Segment Profit before tax 12.3 11.8 Fortitude Valley properties sold. Revaluation 3.2 1.9 Construction on Cardiff nearing surplus/(deficit) (b/tax)
Slide 26: Investment and All Other
Investment and All Other For personal use only FY2013 FY2012 $m $m • Further revaluation gains adding to a Revenue 53.2 43.5 substantial asset driving overall return. Segment Profit before tax 7.6 4.1 • Deferred consideration of $47 million Revaluation 22.8 21.1 settled in 2013. surplus/(deficit) (b
Slide 27: Strategy (Focus: Grow EPS & Pay Larger Dividends)
Strategy (FOCUS: GROW EPS & PAY LARGER DIVIDENDS) For personal use only Exceed stakeholder expectations – Growth by selective customers, employees, acquisition partners (manufacturers), shareholders and community. Development of enhancements and complimentary services Business Optimisation – continu
Slide 28: Strategy: Business Optimisation
Strategy (FOCUS: GROW EPS & PAY LARGER DIVIDENDS) For personal use only Business Optimisation – Short Term • Revenue and Margin growth in parts and service offset industry wide pressure on new car gross • New car grosses now more stable • Grow clusters e.g Cardiff NSW (Completed February 2014) Busin
Slide 29: Lake Motors – New Cardiff Cluster NSW
Lake Motors – New Cardiff Cluster NSW For personal use only Monday, March 03, 2014 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 30: Lake Motors – New Cardiff Cluster NSW
Lake Motors – New Cardiff Cluster NSW For personal use only Monday, March 03, 2014 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 31: Courier Mail 24th February
Courier Mail 24th February For personal use only Monday, March 03, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 32: Strategy (Focus: Grow EPS & Pay Larger Dividends)
Strategy (FOCUS: GROW EPS & PAY LARGER DIVIDENDS) For personal use only Exceed stakeholder expectations – customers, employees, Growth by selective partners (manufacturers), acquisition shareholders and community. Development of enhancements and complimentary services Business Optimisation – continu
Slide 33: Strategy: Enhancement & Complimentary Services
Strategy (FOCUS: GROW EPS & PAY LARGER DIVIDENDS) For personal use only • Development of Enhancement & Complimentary Services – Medium / Long Term • MTAI Insurance (26 yrs old, APE 21%) • www.carsguide.com.au (27 mths old, APE 7.5%) • www.carzoos.com.au (23 mths old, APE 100%) • Precision Automotive
Slide 34: Used car buying you can't get wrong
Used car buying you can’t get wrong. For personal use only 48 Hour Money back 120 Point Carzoos Fixed Price 24 Hour Guarantee + Safety Check + Warranty + Servicing + Roadside Assist Monday, March 03, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 35: Used car buying you can't get wrong
Used car buying you can’t get wrong. For personal use only Monday, March 03, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 36: For personal use only
For personal use only Monday, March 03, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 37: Strategy (Focus: Grow EPS & Pay Larger Dividends)
Strategy (FOCUS: GROW EPS & PAY LARGER DIVIDENDS) For personal use only Exceed stakeholder expectations – customers, employees, Growth by selective partners (manufacturers), acquisition shareholders and community. Development of enhancements and complimentary services Business Optimisation – continu
Slide 38: Growth By Selective Acquisition
Growth By Selective Acquisition For personal use only • 2012/13 EPS Accretive AHE Investment • 2013 Main North and Unley - Nissan and Renault (Adelaide), EPS Accretion 2014 • 2014 EPS Accretive acquisitions expected during 2014 Monday, March 03, 2014 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 39: Main North Nissan & Renault and Unley Nissan & Renault (Adelaide)
Main North Nissan & Renault and Unley Nissan & Renault (Adelaide) For personal use only Monday, March 03, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 40: Forward-Looking Statements
Forward-Looking Statements For personal use only This document may contain forward-looking statements, forecasts and estimates made by the Company (forward-looking statements), including the anticipated future performance of the Company and the market in which it operates. These forward-looking stat