Eagers Automotive Limited · ASX:APE
Eagers Automotive — FY2015 Earnings Presentation
47 slides from Eagers Automotive's earnings presentation, Feb 24, 2016
Slide 1: 2015 Full Year Results Presentation
2015 Full Year Results February 2016 Presentation
Slide 2: 2015 Full Year Highlights
2015 Full Year Highlights • Record statutory profit before tax $121m up 18% • Record net profit after tax $87.0m up 13% • Record statutory (basic) EPS 47.6 cents an increase of 11% from prior year • Record fully franked final dividend of 20 cents for a record FY dividend of 32 cents up 19% • Record
Slide 3: National Vehicle Sales
National Vehicle Sales Historical National Vehicle Sales 1,300,000 1,200,000 1,100,000 1,000,000 All Other Brands 900,000 Honda Total Subaru Total 800,000 Volkswagen Total 700,000 Mitsubishi Total Nissan Total 600,000 Ford Total 500,000 Hyundai Total 400,000 Mazda Total Holden Total 300,000 Toyota T
Slide 4: Australian New Vehicle Sales – 2015
Australian New Vehicle Sales – 2015 Total Australian Market Share by State ACT 2% (VFACTS) • Record sales with 2015 new vehicle market up 3.8% WA 9% • Correct balance between supply and demand. NSW 33% VIC • Strong growth in luxury brands 27% • Retail industry evolving following GFC, manufacturing e
Slide 5: Exchange Rate Impact
Exchange Rate Impact • 80% of cars sold in Australia are imported from Japan, Thailand, Korea and EU Countries. • Manufacturers have long planning horizons and diversified exposures; • Product and production planning based on 3-7 year cycles. • Most manufacturers pursuing global common vehicle platf
Slide 6: Exchange Rates
20 40 60 80 100 120 Dec-10 Mar-11 23/02/2016 Jun-11 12% 8% Sep-11 Dec-11 5% 18% Mar-12 6% Jun-12 Sep-12 2015 Full Year Results Presentation Dec-12 by Country of Origin Mar-13 New Vehicle Sales (VFACTS) 22% Jun-13 29% Sep-13 Exchange Rates Dec-13 Mar-14 Monthly 5 Years: AUD / JPN Jun-14 Sep-14 Dec-14
Slide 7: Affordability
Affordability 90 Day Bank Bill Rate 9.00 8.00 7.00 6.00 5.00 Last Price 4.00 3.00 2.00 1.00 - 2015 Full Year Results Presentation 23/02/2016
Slide 8: APE Vehicle Sales 2015
APE Vehicle Sales 2015 APE New Vehicle Sales by State APE Used Vehicle Sales by State Total 51,231 + 13.9% (4.4% of National Market) Total 26,399 + 3.7% (20,324 retail) 4% 2% 12% 3% 22% 19% 22% Retail Cars - NSW Cars - NSW Retail Cars - NT Cars - NT 5% Retail Cars - Qld Cars - QLD Retail Cars - SA C
Slide 9: 2015 Full Year Highlights - Financial
2015 Full Year Highlights - Financial ● Record statutory basic EPS of 47.6 cents, an increase of 11%. ● Fully franked final dividend of 20 cents for a record full year dividend of 32 cents ● EBITDA (excluding impairment) increased to $163m up 18%. ● Underlying net profit before tax increased by 19%
Slide 10: Financial Summary
Financial Summary $ Million 2015 2014 Change Revenue 3,246.4 2,858.1 Up 14% EBITDA 163.1 138.1 Up 18% EBIT 142.3 124.9 Up 14% PBT 121.0 102.8 Up 18% PAT 87.0 76.7 Up 13% Cash from operating activities 84.6 99.2 Down -15% NTA/share 2.95 2.38 Up 24% Net gearing excluding bailment debt 19.6% 24.3% Down
Slide 11: Balance Sheet - Summary
Balance Sheet - Summary 2015 $'m • New vehicle inventory funded by bailment debt. CA - CL (excl. held for sale) 162.2 • Parts and most used vehicle inventory is Freehold Property (incl. held for sale) 249.2 balance sheet funded. Other Non Current Tangible Assets 77.5 • AHG and Smart Group investment
Slide 12: Asset Fair Value Adjustments (before tax)
Asset Fair Value Adjustments (before tax) 2015 Full Year Results Presentation 23/02/2016
Slide 13: Earnings Per Share EPS Bridge
23/02/2016 Cents per Share 30.0 45.0 35.0 40.0 50.0 55.0 60.0 NPAT Prior Period 43.0 2015 Full Year Results Presentation Operational 10.6 Result Earnings Per Share AHG Investment 0.9 (net of interest) Profit on Sale 1.4 Property / EPS Bridge Investments MTAI, Impairment, 7.4 Other Income,… Dilution
Slide 14: Financial Summary - Cashflow
Financial Summary - Cashflow Cash Flow Bridge 180.0 145.8 21.4 160.0 39.9 140.0 120.0 54.4 100.0 $ Million 80.0 10.7 29.4 60.0 14.3 12.1 37.5 40.0 23.8 - 20.0 - Operating Earnings is EBITDA Underlying excluding profit/loss on sale of assets and 2015 Full Year Results Presentation 23/02/2016
Slide 15: Financial Trends – Underlying PBT
Financial Trends – Underlying PBT Financial Trends: Underlying PBT 180.0 Operating Earnings (EBITDA) PBT Underlying 160.0 154.4 140.0 132.0 126.4 118.9 120.0 113.2 $ million 106.2 100.0 96.3 87.3 76.2 78.4 80.0 74.5 65.9 61.1 61.7 60.0 50.1 46.8 40.4 40.0 40.0 36.8 26.2 20.0 Operating Earnings is EB
Slide 16: Financial Trends – Operating Margin
Financial Trends Operating Margin Operating Earnings Margin % Linear (Operating Earnings Margin %) 5.0% 4.8% 4.6% 4.6% 4.4% 4.5% 4.3% 4.1% 4.0% Percentage 3.9% 4.0% 3.6% 3.4% 3.5% 3.0% Includes AHG dividend from 2012 2.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Operating Earnings is EBITDA
Slide 17: Financial Trends – EPS Statutory (Basic)
Financial Trends EPS Statutory (Basic) June - first 6 months December - second 6 months 60.0 47.6 50.0 43.0 40.0 36.4 Government 34.0 23.1 stimulus Cents 30.0 24.3 25.5 18.2 24.4 17.7 21.0 20.0 GFC/ 13.0 13.4 Lehman Bros 10.4 9.8 24.5 10.0 18.7 1.7 16.3 18.2 11.0 10.6 12.5 8.1 0.0 2008 2009 2010 201
Slide 18: Financial Trends – Dividend
Financial Trends Dividend 35.0 32.0 Interim Dividend Final Dividend 30.0 27.0 25.0 23.0 20.0 Cents per Share 20.0 20.0 18.0 16.0 15.0 15.0 12.4 12.8 11.6 13.0 8.8 10.4 10.0 8.6 7.2 7.6 8.2 6.6 7.2 8.0 4.8 4.4 4.0 12.0 5.0 3.6 3.8 8.0 9.0 7.0 4.6 5.6 3.4 3.6 3.8 4.4 4.4 4.4 3.0 0.0 2003 2004 2005 200
Slide 19: Segment Results
Segment Results Segment Contributions Car retailing $ million -50.0 -25.0 - 25.0 50.0 75.0 100.0 125.0 Record car retailing in Qld & NSW with positive contributions from acquisitions. 68.8 Car Retailing Strong trading in parts and service 98.0 businesses. 3.5 Truck Retailing -3.3 Truck retailing Cha
Slide 20: Segment Results – Car Retailing
Segment Results – Car Retailing 2015 2014 $'m $'m • Record results with profit contribution up 42% on prior year. Revenue 2,884.7 2,470.4 • Record results for QLD and NSW Segment Profit before Tax 98.0 68.8 dealership operations. Total Assets 732.8 657.1 Total Liabilities 476.0 438.0 Net Assets 256.
Slide 21: Segment Results – Truck Retailing
Segment Results – Truck Retailing 2015 2014 $'m $'m • Segment represents 10.6% of revenue and 4% of net assets. Revenue 345.1 374.2 • Includes goodwill impairment of $5.5 Segment Profit before Tax (3.3) 3.5 million. Total Assets 128.1 146.1 • Challenging new and used truck trading conditions. Total
Slide 22: Segment Results – Property
Segment Results – Property 2015 2014 $'m $'m • Sale of Newstead and Fortitude Valley Revenue 27.9 29.9 properties. Segment Profit before Tax 16.2 17.0 • Overall impact of revaluations neutral. Revaluation surplus/deficit 0.1 (2.3) before tax • No property assets held for sale. Total Assets 343.7 320
Slide 23: Segment Results – Investments
Segment Results – Investments 2015 2014 $'m $'m • Further revaluation gains adding to Revenue 13.8 12.1 substantial asset balance driving overall return. Segment Profit before Tax 14.9 9.3 • Profit before tax excludes unrealised Revaluation surplus/deficit 46.2 1.3 gains on investments. before tax T
Slide 24: Group Strategy
Group Strategy 2015 Full Year Results Presentation 23/02/2016
Slide 25: Innovation & Complimentary Services update
Innovation & Complimentary Services update 2015 Full Year Results Presentation 23/02/2016
Slide 26: 2015 Full Year Results Presentation
2015 Full Year Results Presentation 23/02/2016
Slide 27: Portfolio approach to solve the consumer pain points
Portfolio approach to solve the consumer pain points 2015 Full Year Results Presentation 23/02/2016
Slide 28: 2015 Full Year Results Presentation
2015 Full Year Results Presentation 23/02/2016
Slide 29: 2015 Full Year Results Presentation
2015 Full Year Results Presentation 23/02/2016
Slide 30: Zooper Consumer Benefits
Zooper Consumer Benefits 2015 Full Year Results Presentation 23/02/2016
Slide 31: Zooper Used Car Centers: Cardiff (NSW) & Brendale (QLD)
Zooper Used Car Centers: - Cardiff (NSW) & Brendale (QLD) 2015 Full Year Results Presentation 23/02/2016
Slide 32: Zoopercars.com.au user experience built mobile first
Zoopercars.com.au user experience (UX) built with mobile first best practice. Goes live May 1, 2016. 2015 Full Year Results Presentation 23/02/2016
Slide 33: 2015 Full Year Results Presentation
2015 Full Year Results Presentation 23/02/2016
Slide 34: The first truly 'consumer centric' Auto Finance brand
The first truly ‘consumer centric’ Auto Finance brand 2015 Full Year Results Presentation 23/02/2016
Slide 35: Relaunch Carzoos to reflect new brand positioning
Relaunch Carzoos to reflect new contemporary & sophisticated brand positioning 2015 Full Year Results Presentation 23/02/2016
Slide 36: A completely NEW WAY to buy and sell
A completely NEW WAY to buy and sell 2015 Full Year Results Presentation 23/02/2016
Slide 37: 2015 Full Year Results Presentation
2015 Full Year Results Presentation 23/02/2016
Slide 38: A new way of automotive customer service
A new way of automotive customer service. CARZOOS CARZOOS CHIEF EXPERIENCE MANAGER WANTED RETAIL STORE BUDDIES WANTED MOBILE INSPECTOR WANTED AN ENTIRELY NEW TYPE OF SALES MANAGEMENT CAREER AN ENTIRELY NEW TYPE OF AUTOMOTIVE CAREER AN ENTIRELY NEW TYPE OF SALES CAREER Hi we’re Carzoos, an exciting n
Slide 39: Forward-Looking Statements
Forward-Looking Statements 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 statements are based on ce
Slide 40: Appendix
Appendix 2015 Full Year Results Presentation 23/02/2016
Slide 41: A.P. Eagers Company Profile
A.P. Eagers COMPANY PROFILE 2015 Full Year Results Presentation 23/02/2016
Slide 42: A.P. Eagers Today (December 2015)
A.P. Eagers Today (December 2015) • 103 year old automotive retail group founded in 1913 • 58 years as a listed public company – dividend paid every year • A.P. Eagers owns $249m of prime real estate • Represents all 12 of the top 12 selling vehicle brands in Australia and 27 car brands in total alo
Slide 43: A.P. Eagers Volume Car Brands
A.P. Eagers Volume Car Brands Represents 10 of the top 10 selling volume car brands in Australia 2015 Full Year Results Presentation 23/02/2016
Slide 44: A.P. Eagers Luxury Car Brands
A.P. Eagers Luxury* Car Brands Represents 10 of the top 11 selling luxury car brands in Australia # * Luxury is defined as luxury vehicle selling more than 500 units annually (V Facts) * Infiniti (574 units) and Maserati (519 units) increase this segment from 9-11 brands in 2015) # Starts March 2016
Slide 45: A.P. Eagers Truck and Bus Brands
A.P. Eagers Truck and Bus Brands Representing 12 truck and bus brands 2015 Full Year Results Presentation 23/02/2016
Slide 46: Revenue by State / % of group Revenue - $3.25bn
Revenue by State / % of group Revenue - $3.25bn $0.15bn (5%) $1.67bn (51%) $0.0bn $0.61bn (19%) $0.67bn (20%) $0.15bn (5%) $0.0bn 2015 Full Year Results Presentation 23/02/2016
Slide 47: Income Opportunity Franchised Dealership
Income Opportunity Franchised Dealership 2015 Full Year Results Presentation 23/02/2016