Autosports Group Ltd · ASX:ASG
Autosports — H1 FY2019 Earnings Presentation
29 slides from Autosports's earnings presentation, Feb 26, 2019
Slide 1: ASG Half Year Investor Presentation
For personal use only ASG Half Year Investor Presentation February 2019 1
Slide 2: Agenda
AGENDA For personal use only FY2019 H1 FINANCIAL RESULT & HIGHLIGHTS ASG STRATEGY & MARKET REVIEW FY2019 H2 FOCUS AREAS & OUTLOOK Q & A ADDITIONAL INFORMATION 2
Slide 3: FY2019 H1 Financial Result & Highlights
For personal use only FY2019 H1 FINANCIAL RESULT & HIGHLIGHTS ASG STRATEGY & MARKET REVIEW FY2019 H2 FOCUS AREAS & OUTLOOK Q & A ADDITIONAL INFORMATION 3
Slide 4: FY2019 H1 Results
FY2019 H1 RESULTS For personal use only REVENUE CONTINUES TO GROW VIA ACQUISITION GROSS MARGINS GROW ON IMPROVED REVENUE MIX OPEX HIGHER DUE TO ACQUISITIONS AND FACILITY INVESTMENTS ASG’S LIKE FOR LIKE REVENUE AHEAD OF MARKET TREND DIVIDEND MAINTAINED 4
Slide 5: FY2019 H1 Financial Result
FY2019 H1 FINANCIAL RESULT A$m Normalised % movement Normalised NORMALISATIONS FY2019 H1 on PCP FY2018 H1 Result includes $0.6M of acquisition and For personal use only Total revenue 862.5 5.5% 817.6 restructure costs Gross profit 134.4 9.0% 123.3 Statutory re-class of $35.9M in other revenue Op
Slide 6: FY2019 H1 Highlights
FY2019 H1 HIGHLIGHTS REVENUE & GROSS MARGINS UP IMPACT OF DELIVERY DELAYS For personal use only Revenue up 5.5% in a difficult new market Product Delays – WLTP* and Stop Sells impact approximately $2.6M EBITDA Revenue growth predominantly driven by $88M for Melbourne BMW and Canterbury BMW D
Slide 7: FY2019 H1 Financial Trends
FY2019 H1 FINANCIAL TRENDS Revenue REVENUE 2,000.0 For personal use only 2H 1,800.0 1,600.0 1H Total revenue up $44.9M in H1 FY2019 FY 1,400.0 936.6 2014-2018FY revenue growth CAGR 28% 1,200.0 1,000.0 775.3 Back-end Service, Parts & Collision Repair revenue grew by 28% in FY2019 H1 vs FY2018 H
Slide 8: Revenue Bridge
REVENUE BRIDGE 1HFY19 Statutory Revenue Growth on 1HFY18 For personal use only 8
Slide 9: Stable Margins
STABLE MARGINS NORMALISED EBITDA MARGIN NORMALISED GP MARGIN For personal use only 16.0% 4.0% 15.6% 3.5% 15.5% 3.8% 3.5% 15.2% 3.0% 3.3% 3.4% 3.2% 14.9% 15.0% 2.5% 2.9% 2.7% 2.4% 2.5% 2.0% 2.3% 14.5% 2.2% 1.5% 14.3% 14.3% 14.0% 1.0% 14.0% 1.0% 0.5% 13.5% 0.0% FY14 FY15 FY16 FY17 FY18 1H FY19 13.0% N
Slide 10: Cash Flow
CASH FLOW For personal use only Strong operating cash flows of $18.2M PPE Expenditure o Macgregor land $6.4M $4.9M repayment of corporate debt o Gold Coast Bentley and Maserati fit-out $2.1M $9.6M dividend paid o Maintenance Capex $2.1M o H2 Capex expected $2.0M 10
Slide 11: Balance Sheet
BALANCE SHEET Balance Sheet MAJOR MOVEMENTS SINCE 31 DEC 2018 For personal use only Normalised 30 -Jun-18 Normalised 31-Dec-18 Total Borrowings 479,543 488,677 Net debt up $4.8M to $64.9M Cash & Cash Equivalents (14,302) (11,690) o Corporate debt increase Net Debt 465,241 476,987 of $2.2M. $7.1M o
Slide 12: ASG Strategy & Market Review
For personal use only FY2019 H1 FINANCIAL RESULT & HIGHLIGHTS ASG STRATEGY & MARKET REVIEW FY2019 H2 FOCUS AREAS & OUTLOOK Q & A ADDITIONAL INFORMATION 12
Slide 13: ASG Strategy
ASG STRATEGY Since listing ASG has pursued a clear and focused strategy evenly balanced between acquisitions, organic and greenfield growth NOV 2016 APR 2017 NOV 2017 APR 2018 Melbourne BMW Canterbury BMW For personal use only Audi Centre Brisbane Doncaster BMW (Willims Motor Group) Acquisit
Slide 14: New Vehicle Market Trends
NEW VEHICLE MARKET TRENDS Total Market 2008/9 vs 2018/9 2018 the total market was 3% down on the record 2017 market The market has now experienced 10 consecutive months of decline for the For personal use only first time since 2008/9 December market was down 14.9% affected by quarantine issues
Slide 15: East Coast Luxury & Prestige | FY2019 H1
EAST COAST LUXURY & PRESTIGE | FY2019 H1 East Cast luxury and prestige segments under volume pressure in H1 FY2019. NSW / VIC / QLD LUXURY NSW / VIC / QLD PRESTIGE For personal use only The luxury market in NSW / QLD / VIC declined by 12% in the period July – The prestige segment of the market d
Slide 16: WLTP | Bugs | Hail
WLTP | BUGS | HAIL ASG's half year result was impacted by a number of non -recurring factors WLTP BUGS HAIL For personal use only The implementation of new global emission Heightened surveillance by the Department Sydney was affected by a severe hail testing procedures in Europe (WLTP) has of
Slide 17: Maturing Back-End
MATURING BACK-END ASG's strategy to grow back-end revenue streams is on track and driving both revenue and improved gross margins for the business. Back-end revenue growth continues to improve ASG's strength, flexibility and endurance. For personal use only "FRONT-END" “BACK-END" New car sales Finan
Slide 18: FY2019 H2 Focus Areas & Outlook
For personal use only FY2019 H1 FINANCIAL RESULT & HIGHLIGHTS ASG STRATEGY & MARKET REVIEW FY2019 H2 FOCUS AREAS & OUTLOOK Q & A ADDITIONAL INFORMATION 18
Slide 19: FY2019 H2 Focus Areas
FY2019 H2 FOCUS AREAS FY2019 H2 Focus Areas For personal use only Continue to expand our gross profit mix in service, parts and collision repair Drive growth in used vehicles via used car hubs Maintain new vehicle market share in a challenging new car market Reduce new vehicle inventory leve
Slide 20: FY2019 H1 Results Recap
FY2019 H1 RESULTS RECAP For personal use only REVENUE CONTINUES TO GROW VIA ACQUISITION GROSS MARGINS GROW ON IMPROVED REVENUE MIX OPEX HIGHER DUE TO ACQUISITIONS AND FACILITY INVESTMENTS ASG’S LIKE FOR LIKE REVENUE AHEAD OF MARKET TREND DIVIDEND MAINTAINED 20
Slide 21: FY2019 H2 Outlook
FY2019 H2 OUTLOOK For personal use only DIFFICULT LUXURY VEHICLE MARKET CONDITIONS EXPECTED TO CONTINUE INTO FY2019 H2 CANTERBURY BMW ACQUISITION (APRIL 2018) WILL SUPPORT FULL YEAR REVENUE WLTP, QUARANTINE AND HAIL IMPACT SHOULD DECREASE IN FY2019 H2 GROSS PROFIT MIX WILL CONTINUE TO MOVE TO BACK -
Slide 22: Q & A
For personal use only FY2019 H1 FINANCIAL RESULT & HIGHLIGHTS ASG STRATEGY & MARKET REVIEW FY2019 H2 FOCUS AREAS & OUTLOOK Q & A ADDITIONAL INFORMATION 22
Slide 23: Additional Information
For personal use only FY2019 H1 FINANCIAL RESULT & HIGHLIGHTS ASG STRATEGY & MARKET REVIEW FY2019 H2 FOCUS AREAS & OUTLOOK Q & A ADDITIONAL INFORMATION 23
Slide 24: ASG Brand Portfolio
ASG BRAND PORTFOLIO LUXURY (27) PRESTIGE(7) USED CAR COLLISION ACQUISITIONS DEALERSHIPS REPAIR GREENFIELDS For personal use only (2) FACILITIES (4) FY18 6 4 1 1 Gold Coast 5 1 2 1 Sydney & Brisbane sites 1 2 Passenger 1 Vans 1 Gold Coast 2 2 1 Canterbury 1 1 1 1 Mosman Smash Repairs 4 1 2 2 24
Slide 25: FY2019 H1 Statutory Financials
FY2019 H1 STATUTORY FINANCIALS Statutory History Aggregated accounts (statutory) For personal use only $m FY17 H1 FY18 H1 FY19 H1 Total Revenue 165.4 792.7 826.6 Gross Profit 29.0 123.3 134.4 EBITDA (0.3) 26.4 22.5 EBIT (1.3) 22.3 17.2 NPBT (2.3) 16.9 8.1 NPAT (3.1) 12.2 5.4 NPATA (2.8) 13.6 7.0 Sta
Slide 26: Capital Structure
CAPITAL STRUCTURE Normalised 31 December 2018 Capital Structure For personal use only Facility $m $m FY 2018 H1 FY 2019 ASG’s strong cash generation Capital Loans 70.1 71.8 results in a capital light Other Loans & Hire Purchase facilities 4.3 4.9 Cash (14.3) (11.7) business Net debt / (cash) (Excl
Slide 27: FY2019 H1 Normalised Financial Result
FY2019 H1 NORMALISED FINANCIAL RESULT $m 1H FY18 1H FY19 Growth on PCP For personal use only New Vehicles 462.1 478.5 3.5% BASIS OF PREPARATION Used Vehicles 212.8 208.9 -1.8% Finance & Insurance 12.1 10.7 -11.7% Aftermarket 6.2 5.9 -4.3% Acquisition amortisation of Service 45.6 54.2 18.9% intangi
Slide 28: What is WLTP & How Does It Work?
WHAT IS WLTP & HOW DOES IT WORK? For personal use only 28
Slide 29: 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