Motorpoint Group Plc · LSE:MOTR
Motorpoint — FY2024 Earnings Presentation
27 slides from Motorpoint's earnings presentation, 2024
Slide 1: Motorpoint Group PLC Full year 2024 results
=-Motorpoint Group PLC Full year 2024 results *
Slide 2: Introductions
Introductions Mark Carpenter, CEO Financial highlights and ESG update Chris Morgan, CFO Progress in FY24 and outlook Mark Carpenter, CEO 2
Slide 3: Macroeconomic headwinds impact profitability; business rightsized. Strong cash generation
“Macroeconomic headwinds impact profitability; business rightsized. Strong cash generation” 3
Slide 4: Full year financial results FY24 vs FY23
£’m FY24 FY23 Change • Revenue fall reflects external headwinds, more affordable stock mix and deflation Total revenue 1,086.6 1,440.2 -353.6 • Proactive response to improve metal margin to reduce impact of lower finance commissions Gross profit 73.1 85.7 -12.6 • Strong cost control drove an 8% decl
Slide 5: Q4 FY24 results
• Retail units increased 8.9%; focus on improving stock £’m Q4 FY24 Q4 FY23 Change turn and data led pricing increased market share • Revenue decline caused by more affordable product Revenue 278.9 377.1 -98.2 mix and deflation • Retail gross profit per unit £1,344, up from £1,162 in Q4 FY23 Units s
Slide 6: Balance sheet
£’m FY24 FY23 Fixed assets 8.8 13.1 • One new store, Ipswich, opened May 2023 Intangible assets 3.7 3.7 • Inventory drop reflects mix and deflation, faster turn and supply pressure Right of use assets 50.5 58.4 • Significant headroom in stocking facility availability; Assets held for sale 2.6 - £74.
Slide 7: Cash flow - net cash improvement
Cash flow - net cash improvement 20.0 15.0 10.0 5.0 (9.8) an (4.6) (5.0) Opening net cash _ EBITDA pre exceptional Capex Interest Lease payments Exceptional items Tax receipt Net working capital Closing net cash Motorpoint Group PLC | Full year 2024 results 7
Slide 8: We want to be the most environmentally friendly used car retailer
By supporting our environment And our people We want to • Recognised by the Financial Times as one • Increased support and involvement in be the most of Europe's Climate Leaders (who are the many communities in which we most successful in reducing their core operate environmentally greenhouse gas em
Slide 9: Focused on driving operational excellence (Brilliant Basics) in FY24
“Focused on driving operational excellence (Brilliant Basics) in FY24 – leaner cost base, faster stock turn and lower prices” 9
Slide 10: KPI progress despite headwinds and leaner operating model
KPI progress despite headwinds and leaner operating model KPI FY24 FY23 O-5yr market share in final quarter 2.3% 2.2% Total revenue £1,086.6m £1,440.2m Total E-commerce revenue £426.6m £660.5m Total units sold 78.0k 89.7k Stock turn (days in stock) 45 days 51 days Loss before tax & exceptional items
Slide 11: Macroeconomic headwinds meant decisive action necessary to rightsize the business
FY24 headwinds FY24 proactive response Smaller market Retail criteria to include vehicles up to five years old and 50k miles Reduction in 0-4 aged vehicle market size which bottomed out at 1.5m sales Reduced operating expenditure, including pa; continued shortage of good quality, headcount rightsizi
Slide 12: Metal margin, retail unit sales and days in stock
• Increased metal margin targetted in H1 to help offset lower Retail unit sales % growth year on year finance commissions: 15% 10% • Decline in retail unit sales 5% 0% • Increased days in stock -5% • Loss of market share -10% -15% -20% • Brilliant Basics reset in H2 resulted in Q4 recovery: -25% • D
Slide 13: Strong, profitable final quarter and good momentum entering FY25
• Growth in used car market, up 6.5% on Q4 FY23; Motorpoint outperformed • Increased visits to our improved website, up 27% March 24 vs March 23 • Increased sales of more affordable vehicles (older, higher mileage) • Increased stock turn, reducing depreciation impact of aged stock. Days in stock Our
Slide 14: Customer offer and reviews
Fiat Main Dealer During April 2024, 99.9% of Motorpoint cars advertised on Auto Motorpoint Trader were highlighted as a Lower, Great or Good price £9,148* £9,935* £143.86 per month £168.98 per month “Smooth effortless transaction from start to finish. Website 23,622 miles/ 71 plate excellent and eas
Slide 15: Upscale omnichannel capability and customer acquisition
Upscale Omnichannel capability Customer acquisition and retention • Upgrades to website Product Landing and Product Detail • 20th store opened in May 2023 (Ipswich) Pages; including enhanced imagery, recommendations, • More new stores planned from FY25 improved best price emphasis • Tailored custome
Slide 16: Product Landing Page and Product Detail Page
Product Landing Page Product Detail Page 16
Slide 17: • Reflecting increased new • Increased affordability as
• Improved affordability • Lower stock financing • Higher finance • Reflecting increased new commissions vehicle production • Increased affordability as prices fall • Younger, lower mileage stock • Lower preparation costs • Lower purchase fees • Use of data • Targeted marketing 17
Slide 18: Volume of MP vehicle sales
2.60 70,000 2.40 65,000 2.20 60,000 Volume of MP vehicle sales No of vehicles (m) 2.00 55,000 1.80 50,000 1.60 45,000 1.40 40,000 1.20 35,000 1.00 30,000 FY19 FY24 FY25 FY26 FY27 FY28 New Car Registrations 0-4 Market MP Volume (1) New car registrations based on 12 month rolling pool of new car regis
Slide 19: Finance penetration and stocking interest
Historic finance penetration % versus APR levels Finance Penetration % 80.0% 55.1% 58.1% 60.0% 48.2% 43.0% 40.0% • A drop in interest rates could facilitate a reduction in APRs 20.0% from current 12.9% to 11.9% (as highlighted in graph) which 0.0% 12.90% 11.90% 10.90% 9.90% would provide a PBT oppor
Slide 20: Improving market conditions and the success of Brilliant Basics
Current trading • Positive start to FY25; April and May both profitable: • Double digit growth in retail sales volumes • Metal margins remain strong, and used car prices stable Outlook • Successful execution of Brilliant Basics stands us in good stead as market improves • Lean cost base, strong data
Slide 21: Appendix
Appendix Motorpoint Group PLC | Full year 2024 results 21
Slide 22: Financial KPIs
Financial KPIs Retail volumes 52.6k 57.3k Wholesale volumes 25.4k 32.4k Total 78.0k 89.7k Retail online 171k 18.3k Retail store 35.5k 39.0k Orders from digital leads 23.2k 21.1k Total GP per retail unit £ 1,222 1,300 Total GP per wholesale unit £ 346 346 Marketing £ 10.0m 14.0m People costs £ 33.1m
Slide 23: Motorpoint and Auction4Cars.com
Motorpoint Auction4Cars.com The UK’s leading omnichannel used vehicle retailer The UK’s leading independent Trade car auction site • Cars and vans • Cars and Vans • Online and In-Store • Online only Sell Your Car (C2B) Sell Your Car (C2B) < 5 years* > 5 years* < 50,000 miles* > 50,000 miles* Part Ex
Slide 24: Motorpoint virtuous circle
Motorpoint virtuous circle - remains at the core of whatwedo ™ Motorpoint Group PLC | Full year 2024 results 24
Slide 25: Ipswich store
Ipswich store • Ipswich opened May 2023 • 20 stores in total • Target 10% market share in each area in which we operate • Recommence new store opening programme in FY25 25
Slide 26: Key Motorpoint benefits
Key Motorpoint benefits 86 ✓ Award winning service ✓ Extensive choice 84 ✓ Great value backed by price 82 promise ✓ Quality control and operational 80 Target excellence ✓ Flexible finance options 78 ✓ Competitive part exchange prices 76 ✓ Test drives readily available ✓ Home delivery 74 ✓ Same day d
Slide 27: Disclaimer
The information, opinions and statements contained in this presentation and any associated discussion (this “Presentation”) has been prepared by Motorpoint Group PLC (the “Company”) and has not been independently verified. The Presentation is only intended for information and reference purposes as a