Asbury Automotive Group Inc · NYSE:ABG
Asbury Automotive — Investor Presentation (April 2002)
24 slides from Asbury Automotive's investor presentation, Apr 10, 2002
Slide 1: Asbury Automotive Group
ASBURY AUTOMOTIVE GROUP AUTOMOTIVE RETAILING Ken Gilman CEO
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, which are subject to known and unknown risks, uncertainties or other factors not under Asbury's control that may cause the actual results
Slide 3: Asbury: Leading Auto Retailer
Asbury: Leading Auto Retailer Founded in 1995 4th Largest Auto Retailer $4.3 Billion Revenue in 2001
Slide 4: Investment Highlights
Investment Highlights o Automotive retailing is a huge fragmented industry o Diversified revenue streams o Experienced and incentivized management o Advantageous brand mix o Regional concentration and strong branding of our platforms o Growth through organic and acquisition opportunities o Strong fi
Slide 5: Tremendous Growth Potential in Fragmented Industry
Tremendous Growth Potential in Fragmented Industry Industry Size Market Share of Top 10 Companies ($ billions) Auto Retailing $ 1,000 10% Discount Stores $ 75% Home Improvement $ 40% Office Supply $ 20% Consumer Electronics $ 45%
Slide 6: Consistent Performance Through Economic Cycles
Consistent Performance Through Economic Cycles 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Big 3 Pre-Tax Margin 7.80% 4.50% -4.95% -1.65% -0.41% 4.92% 8.81% 6.82% 5.33% 6.52% 6.70% 5.04% -0.27% -3.92% -0.98% 3.59% 6.89% 5.58% 5.2
Slide 7: Increasing Sales Volume Per Dealership
Increasing Sales Volume Per Dealership Franchised Dealerships Franchised Units Sold 1990 22.6 24.8 1991 21.2 24.2 1992 22.1 23.5 1993 23.8 23.0 1994 26.0 22.9 1995 26.2 22.8 1996 27.0 22.8 1997 27.1 22.7 1998 27.6 22.6 1999 29.2 22.4 2000 30.0 22.3 2001 30.5 22.2
Slide 8: Experienced and Incentivized Management
Experienced and Incentivized Management Ken Gilman Chief Executive Officer Tom Gilman SVP,CFO Bob Frank SVP, Operations Platform CEOs Average of 27 Years Auto Retail Experience Average of 22 Years In Local Market
Slide 9: Advantageous Brand Mix
Advantageous Brand Mix Brand Mix Relative to Comparables Asbury Automotive Group 56% Public Comparables 43% Industry Average 24% Luxury/Mid-Line Omport (% of total franchises)
Slide 10: Luxury and Mid-Line Imports Gain Share
Luxury and Mid-Line Imports Gain Share Change in Market Share, (1980-2001) Luxury % Mid-Line Import % Mid-Line Domestic (13 )% Value %
Slide 11: Competitive Advantages
Competitive Advantages Large Equity Ownership by Frontline Dealer Management* Small Low Percentage of Luxury/Mid-Line Import Franchises** High * Company Estimate ** As of 12/31/01
Slide 12: Organic Growth Strategy
Organic Growth Strategy o Leverage best practices o Focus on higher margin opportunities by selling additive products and services—Parts & Service and F&I o Capitalize on mega trends • Favorable human and machine demographics mean that more cars will be sold and on the road • Luxury and mid-line imp
Slide 13: When a Brand Goes Soft: The Dodge Example
When a Brand Goes Soft: The [Dodge Logo] Example % Change from 2000 to 2001 New Unit Sales -13.7% New Unit Sales 1.0% Used Unit Sales 24.1% Net Operating Profit of Store 51.3%
Slide 14: The Asbury Acquisition Strategy: Platform Acquisitions
The Asbury Acquisition Strategy Platform Acquisitions o ENTER NEW MARKETS • Economies of scale • Financial and operational leverage • Base for tuck-in acquisitions o SELECTION CRITERIA • Highly capable platform management • Leading position in local market • Strong local brand name • Attractive grow
Slide 15: Advantageous Geographic Locations
Advantageous Geographic Locations Desirable Expansion States Asbury Targeting Criteria: Under-Dealered States 5 Yr. Population Increase
Slide 16: The Asbury Acquisition Strategy: Tuck-In Acquisitions
The Asbury Acquisition Strategy "Tuck-In" Acquisitions o SOLIDIFY POSITIONS IN EXISTING MARKETS • Immediate and longer term cost synergies • Increase market position of existing platforms • Build sufficient mass to split off additional platforms o SELECTION CRITERIA • Strengthen brand mix (luxury an
Slide 17: Acquisition Tuck-In Performance
Acquisition Tuck-In Performance 18 Tuck-Ins Representing 44 Franchises from 1999 to Date 12 Months Prior to Acquisition 12 Months After Acquisition Acquisition Revenues $ 1,389 $ 1,474 6.2% Parts & Service Gross Profit ($mm) $ $ 25.5% Acquisition Gross Profit ($mm) $ $ 14.1% F&I Per Vehicle Revenue
Slide 18: Financial Performance
ASBURY AUTOMOTIVE GROUP FINANCIAL PERFORMANCE
Slide 19: Strong Historical Revenue Growth
Strong Historical Revenue Growth Revenues ($bn) 1998 $ 1.1 1999 $ 3.0 2000 $ 4.0 2001 $ 4.3
Slide 20: Key Performance Drivers
Key Performance Drivers AUTOMOTIVE GROUP = } 26% Revenue Dealership Operating Income New Used Om Fal @ Parts & Service
Slide 21: Same Store Metrics
Same Store Metrics Same Store Revenue Growth* Same Store Gross Profit Growth* 2000 0.8% 2.7% 2001 -0.5% 4.8% * Excludes Fleet and Wholesale
Slide 22: Improving Profitability
Improving Profitability Gross Margin Operating Margin (% of Revenues) 1998 14.3% 2.0% 1999 14.6% 2.7% 2000 14.8% 3.0% 2001 15.6% 3.1%
Slide 23: Asbury Capitalization
Asbury Capitalization December 31, 2001 ($ in millions) Mortgages $ Other Non-Floorplan Debt $ Total Non-Floorplan Debt $ Stockholders' Equity $ Total Capitalization $ Non-Floorplan Debt to Capitalization % * Adjusted for acquisitions, divestitures and IPO
Slide 24: Financial Performance Targets
Financial Performance Targets 5-Year Annual Targets EPS Growth Rate 15% F&I Per Vehicle Revenue Increase 2-4% Same Store Parts and Service Sales Increase 2-4% Acquisition Revenues $300 - $500 million QuickLinks Disclaimer Asbury: Leading Auto Retailer Investment Highlights Tremendous Growth Potentia
Asbury Automotive Group — Investor Presentation (April 2002) on 6ix