Slide 1: A.P. Eagers Broker Briefing
For personal use only A.P. Eagers Broker Briefing 6 July 2011 © 2011 AP Eagers Limited. All Rights Reserved. Wednesday, 6 July 2011
Slide 2: A.P. Eagers
A.P. Eagers For personal use only • 98 year old automotive retail group founded in 1913 • 53 years as a listed public company – dividend paid every year • A.P. Eagers owns more than 70 acres of prime real estate with land and buildings of $321m • Represents all 12 of the top 12 selling vehicle brand
Slide 3: A.P. Eagers Volume Car Brands
A.P. Eagers Volume Car Brands For personal use only Represents 12 of the top 12 selling volume car brands in Australia © 2011 AP Eagers Limited. All Rights Reserved. Wednesday, 6 July 2011
Slide 4: A.P. Eagers Luxury Car Brands
A.P. Eagers Luxury Car Brands For personal use only Represents 8 of the top 9 selling luxury car brands in Australia © 2011 AP Eagers Limited. All Rights Reserved. Wednesday, 6 July 2011
Slide 5: A.P. Eagers Truck and Bus Brands
A.P. Eagers Truck and Bus Brands For personal use only Representing 12 truck and bus brands © 2011 AP Eagers Limited. All Rights Reserved. Wednesday, 6 July 2011
Slide 6: National Heavy Commercial Sales - 2002 to 2010
National Heavy Commercial Sales - 2002 to 2010 (15,001 kgs GVM and over) For personal use only 18000 16000 14000 12000 Volume 10000 8000 6000 4000 2000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 9 Year Av Year © 2011 AP Eagers Limited. All Rights Reserved. Wednesday, 6 July 2011
Slide 7: Financial Trends
Financial Trends For personal use only 80.0 76.2 74.5 EBITDA Underlying 71.2 67.9 70.0 65.9 EBIT Underlying 61.1 57.9 60.0 52.9 NPAT Underlying 50.0 40.4 $ million 40.0 37.1 34.6 34.9 31.2 32.0 32.6 28.6 30.0 26.7 26.7 25.8 22.1 18.6 20.0 12.6 13.3 10.5 10.0 0.0 2003 2004 2005 2006 2007 2008 2009 20
Slide 8: Financial Trends
Financial Trends For personal use only Net Tangible Assets Dividend 10 70 Final Dividend 60 9 8.81 Interim Divdend 8.38 50 8.08 8.11 Cents Per Share 7.76 41 $ per Share 8 40 40 36 22 30 24 7 20 19 6.34 18 6.17 6.22 20 6 10 22 22 22 23 17 18 19 15 5 0 2003 2004 2005 2006 2007 2008 2009 2010 2003 2004
Slide 9: Vehicle Sales for June 2011
Vehicle Sales for June 2011 Source: FACI VFACTS For personal use only Month YTD Total Market 2011 2010 2011 2010 MTH YTD Aust. Capital 1,410 1,666 7,738 8,282 -15.4% -6.6% Territory New South Wales 29,685 33,240 155,083 160,998 -10.7% -3.7% Northern Territory 985 1,133 5,236 5,498 -13.1% -4.8% Queen
Slide 10: Vehicle Sales; Qld Floods; Japanese Earthquake
Vehicle Sales; Qld Floods; Japanese Earthquake For personal use only • May month down 13.2%, June month down 11.6% • Deliveries and therefore reported sales affected by supply constraints. • Order intake in June only 1% below last year. • New vehicle carry-overs particularly strong, deliveries in se
Slide 11: AP Eagers Strategy
AP Eagers Strategy For personal use only FOCUS: GROW EPS AND PAY LARGER DIVIDENDS Short Term • Continue to improve performance in all business units • Continue “held for sale” property process • Continue integration process of Adtrans Medium/Longer Term • Build on “properties held for growth” © 2011
Slide 12: North Lakes
North Lakes For personal use only © 2011 AP Eagers Limited. All Rights Reserved. Wednesday, 6 July 2011
Slide 13: AP Eagers Strategy
AP Eagers Strategy For personal use only FOCUS: GROW EPS AND PAY LARGER DIVIDENDS Short Term • Continue to improve performance in all business units • Complete “held for sale” property process • Continue integration process of Adtrans Medium/Longer Term • Build on “properties held for growth” • Cont
Slide 14: AP Eagers
AP Eagers For personal use only AP Eagers $2.45 billion $0.15bn (6%) 1.0% $1.10bn (45%) $0.0bn 20.1% $0.50bn (19%) 11.3% 6.4% $0.55bn (24%) 30.6% ACT 1.6% $0.15 BN (6%) VIC 27.2% Shaded %’s = New motor vehicles sales market share Dec YTD 2010 $0.0 BN TAS 1.9% © 2011 AP Eagers Limited. All Rights Res
Slide 15: AP Eagers Strategy
AP Eagers Strategy For personal use only FOCUS: GROW EPS AND PAY LARGER DIVIDENDS Short Term • Continue to improve performance in all business units • Complete “held for sale” property process • Continue integration process of Adtrans Medium/Longer Term • Build on “properties held for growth” • Cont
Slide 16: The New and Improved: Ownership
The New and Improved For personal use only Ownership •50% owned by News Ltd, the world’s largest media organisation •50% owned by car dealers •Now over-subscribed due to large interest by foundation dealers through IM •Final investors (%’s) and dealership numbers are being worked through •Virtually
Slide 17: The New and Improved: Reason for Success
The New and Improved For personal use only Reason for Success •Success requires Inventory and Eyeballs (UB’s) •Smart business plan that will particularly challenge competitors on pricing and model structure •Smart advertising and unique selling propositions that combined with the above is planned to
Slide 18: The New and Improved
The New and Improved For personal use only AP Eagers accepts that it is a real challenge to compete with an established dominant competitor particularly within the “Internet Arena” and is not expecting the New and Improved Cars Guide.com.au to either be an instant success or an automatic success. Ho
Slide 19: Why Invest in AP Eagers?
Why Invest in AP Eagers? For personal use only • Consistent profits, strong dividends • Track record of EPS growth from acquisitions • Underpinned by $320m of property assets with an average value of $7m • Structurally the retail automotive segment is consolidating and has to continue to consolidate