Autosports Group Ltd · ASX:ASG
Autosports — UBS Conference 2017
24 slides from Autosports's conference presentation, May 31, 2017
Slide 1: Investor presentation May 2017
For personal use only Investor presentation May 2017 1
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This presentation contains summary information about Autosports Group Limited (ACN 614 505 261) (ASG) and its activities current as at the date of this For personal use only presentation. The information in this presentation is of general background and does not purpo
Slide 3: Presenting Today
PRESENTING TODAY For personal use only Nick Pagent Aaron Murray Managing Director and CEO CFO Group CEO since formation of the Group CFO since 2009 after joining the Autosports Group group in 2007 20 years of motor vehicle industry 20 years of motor vehicle industry experience in Australia a
Slide 4: Agenda
AGENDA For personal use only ASG BUSINESS OVERVIEW & STRATEGY GROWTH DRIVERS ASG 2017 OUTLOOK HIGHLIGHTS Q & A APPENDIX | ADDITIONAL INFORMATION 4
Slide 5: ASG Company Introduction
ASG COMPANY INTRODUCTION Attractive Industry Fundamentals For personal use only Consistent and stable growth in new cars, driven by long term trends Clear and focused strategy to concentrate on the prestige and luxury segments of the market 2017FY has seen improving coverage of major metropoli
Slide 6: ASG Company Overview
ASG COMPANY OVERVIEW For personal use only Founded in 2006 with one site Now covers 34 outlets across Sydney, Melbourne and Brisbane Represents the brands of: Audi, Alpina, Bentley, BMW, Mercedes Benz, Maserati, Mini, Lamborghini, Fiat Alfa Romeo, Volvo, Volkswagen, Mazda and Honda 1000 empl
Slide 7: Strategy: Prestige and Luxury
STRATEGY: PRESTIGE AND LUXURY For personal use only Fastest growing segments over a sustained period Represents the brands of: Audi, Alpina, Bentley, BMW, Mercedes Benz, Maserati, Mini, Lamborghini, Fiat Alfa Largest Markets. NSW, QLD and Vic comprise 82% Romeo, Volvo, Volkswagen, Mazda and Ho
Slide 8: Continuing Operational Excellence
CONTINUING OPERATIONAL EXCELLENCE For personal use only OPERATIONAL EXCELLENCE DRIVES o OEM KPI based payments o Demonstrates ASG’s capacity to represent multi brands individually , 2016 o ASG’s position as a preferred partner for OEM’s to develop markets with brands. 8
Slide 9: ASG Business Overview & Strategy / Growth Drivers
For personal use only ASG BUSINESS OVERVIEW & STRATEGY GROWTH DRIVERS ASG 2017 OUTLOOK HIGHLIGHTS Q & A APPENDIX | ADDITIONAL INFORMATION 9
Slide 10: ASG's Growth Driven Organically
ASG’s GROWTH DRIVEN ORGANICALLY For personal use only Organic growth continues to be the primary driver of growth at ASG contributing to 78.7% of the pro forma revenue growth in the 1H 2017FY ASG has a resilient business model underpinned by diverse revenue streams, geographic divergence and opportu
Slide 11: Diversified Revenue Model
DIVERSIFIED REVENUE MODEL Multiple Income Streams give ASG, strength, flexibility and resilience. They give ASG multiple levers to drive sustainable growth For personal use only "FRONT-END" "BACK-END" New car sales Service Finance & Aftermarket (including Parts Insurance collision repair) Used car s
Slide 12: New Cars | Q1 2017 VFacts Analysis
NEW CARS |Q1 2017 VACTS ANALYSIS Quarter 1 2017 April YTD Update For personal use only Total Market -2.1% vs March Quarter 2016 April result clearly impacted vs 2016 by fewer trading days as expected. (-5.1%) Luxury Sales -4.2% vs March Quarter 2016 Largest Markets performing the best Vic +1
Slide 13: New Cars: Prestige & Luxury Market
NEW CARS: PRESTIGE & LUXURY MARKET For personal use only What happens if new car growth slows? CommSec Analysis of Luxury Market ASG’s brand strategy is correct. ASG’s focus on major cities covers 82% of the total market allowing strong performers to maintain and increase share and revenue. Stro
Slide 14: Aftersales/Backend Growth
AFTERSALES/BACKEND GROWTH Growth in Service, Parts & Collision Repair continues to drive growth for ASG For personal use only Growth Cap Ex | Unlocking Aftersales Income Growth ASG’s business model benefits from inbuilt growth in back-end revenue from a maturing service, parts and panel customer bas
Slide 15: Used Cars – ASG Wholesale Retail Hub Strategy
USED CARS – ASG WHOLESALE RETAIL HUB STRATEGY For personal use only ASG Operates on almost a 1:1 New to Used Car Sales Used Vehicle Revenue continues to perform strongly in ratio. the 2017FY ASG Strategy involves Used Car Retail hubs in Sydney The acquisition of BMW Doncaster gives our Victo
Slide 16: On Strategy Growth – BMW and Melbourne
ON STRATEGY GROWTH – BMW and MELBOURNE RIGHT ACQUISITION RIGHT TIMING For personal use only Addition of new Luxury Brands in key Melbourne BMW is currently undertaking the largest product Market offensive in the company’s history Strong revenue of approximately $235m pa 25 all new models in
Slide 17: Growth with Opportunity
GROWTH WITH OPPORTUNITY For personal use only GROWTH WITH OPPORTUNITY 12 ASG now operates 29 of approximately 540 new 2 21 car prestige or luxury dealerships on the East 111 Porsche Coast of Australia 3 32 No ASG Dealership 6 2 4 1 The industry remains highly fragmented 9 4 4 41 11 11 6 6 Consoli
Slide 18: ASG 2017 Outlook Highlights
For personal use only ASG BUSINESS OVERVIEW & STRATEGY GROWTH DRIVERS ASG 2017 OUTLOOK HIGHLIGHTS Q & A APPENDIX | ADDITIONAL INFORMATION 18
Slide 19: ASG 2017 Highlights
ASG 2017 HIGHLIGHTS For personal use only ASG REAFFIRMS ITS PROFORMA PROSPECTUS FORECAST AND ITS FY 2017 OUTLOOK DONCASTER BMW SETTLEMENT COMPLETED AND EARNINGS ARE ACRETIVE BEYOND PRO FORMA PROSPECTUS FORECAST TRADING CONTINUES TO BE STRONG IN USED PRESTIGE AND LUXURY AND SERVICE AND PARTS DIVISION
Slide 20: Appendix | Additional Information
For personal use only ASG BUSINESS OVERVIEW & STRATEGY GROWTH DRIVERS ASG 2017 OUTLOOK HIGHLIGHTS Q & A APPENDIX | ADDITIONAL INFORMATION 20
Slide 21: Pro Forma Financial Summary
PRO FORMA FINANCIAL SUMMARY PRO FORMA HISTORICAL AND FIRST HALF17 INCOME STATEMENT For personal use only BASIS OF PREPARATION A$m Pro forma historical Proforma The Volvo Brighton deal which settled on 12 September FY17 2016 & 5 Willims Dealerships that settled on18 November Y/E 30 June FY2014 FY20
Slide 22: Strong Balance Sheet
STRONG BALANCE SHEET For personal use only Pro Forma Balance Sheet 31-Dec-16 BASIS OF PREPARATION Total Borrowings 268,193 Pro forma balance sheet and key ratios include all Cash & Cash Equivalents (30,287) businesses 6 month trading profit (as per prospectus forecast) Net Debt 237,906 Pro forma
Slide 23: Pro Forma Cash Flow
PRO FORMA CASH FLOW For personal use only 23
Slide 24: ASG Brand Portfolio
ASG BRAND PORTFOLIO For personal use only Used car Collision repair Prestige (7) Luxury (22) Dealerships (2) facilities (3) Variety of Prestige and Luxury Authorised by: brands 4 Dealerships 2 Dealerships 2 Dealerships 24