Motorpoint Group Plc · LSE:MOTR
Motorpoint — FY2022 Earnings Presentation
36 slides from Motorpoint's earnings presentation, 2022
Slide 1: Motorpoint Group Plc Full Year 2022 Results and Strategy Update
Motorpoint Group Plc Full Year 2022 Results and Strategy Update
Slide 2: Agenda
Agenda Full Year highlights 2022 Mark Carpenter, CEO Financial highlights and performance summary Chris Morgan, CFO Strategy update and outlook Mark Carpenter, CEO Motorpoint Group Plc – Full Year 2022 Results & Strategy Update 2
Slide 3: Full Year 2022 highlights
Full Year 2022 highlights Mark Carpenter, CEO We are the UK’s leading omnichannel used vehicle retailer, investing for significant and profitable long term growth Motorpoint Group Plc – Full Year 2022 Results & Strategy Update 3
Slide 4: A group focused on growth through two distinct channels
A group focused on growth through two distinct channels Sell Your Car (C2B) Sell Your Car (C2B) (Launched Summer 2021) (Launched Summer 2021) <4 years >4 years <30,000 miles >30,000 miles Part Exchange Part Exchange <4 years >4 years <30,000 miles >30,000 miles Motorpoint Auction4Cars.com The UK’s l
Slide 5: A very successful year, delivering strong KPI improvements
A very successful year, delivering strong KPI improvements KPI Change FY22 FY21 Market share (0-4 year old market) 3.1% 2.4% Average market share within 30 min drive time of branch 7.7% 5.5% Total revenue £1,322.3m £721.4m Total E-commerce revenue £624.9m £437.1m Total units sold 97.7k 67.5k Days in
Slide 6: A very successful year, delivering strong KPI improvements
A very successful year, delivering strong KPI improvements KPI Change FY22 FY21 Customer acquisition cost per retail unit £300 £163 People cost per retail unit £552 £594 Number of market areas 17 14 Stocking facility £195m £106m Customer NPS (H2 in FY21) 84 83 Best Companies to Work for – Automotive
Slide 7: Significant progress on strategic objectives despite supply constraints
Significant progress on strategic objectives despite supply constraints limiting growth and unprecedented vehicle inflation Three new market areas Accelerating digital Fully automated digital opened; 17 offering and online first Consumer Sell Your in total. Three more purchasing; 60% of Car (SYC) se
Slide 8: Positive trends across all digital metrics as technology capability grows
Positive trends across all digital metrics as technology capability grows Sessions (000s) Mobile sessions (000s) Product Detail Page Opted-in database Leads (000s) views (000s) (000s) 17,500 12,000 28,500 700 450 650 17,000 11,000 28,000 600 400 16,500 10,000 550 27,500 16,000 9,000 500 350 27,000 4
Slide 9: Positive trends across all digital metrics
Positive trends across all digital metrics…. Increased investment in digital marketing: • From July 2021* the % of users visiting the site and generating a lead has grown from 12.0% to 14.6% • The % of leads resulting in a sales order has increased from 5.1% to 5.8% • The user conversion rate (CR) h
Slide 10: Creating value from increased technology investment
Creating value from increased technology investment CAPABILITY & PERFORMANCE DISCOVERY PRODUCT CAPACITY • New fully automated • Updated • New blog in build to • Significant investment support engaging reserve online journey photography quality to build experienced content • Menu designs and image co
Slide 11: Achieving growth in every one of our 0-30 minute markets
Achieving growth in every one of our 0-30 minute markets Manchester (Opened October 2021) Our market share increases Maidstone (Opened February 2022) dramatically in the vicinity of Portsmouth (Opened March 2022) new branch locations, as brand awareness increases Strong pipeline in place Three futur
Slide 12: Market area trend analysis
Market area trend analysis Site Catchments (30 mins) 2020 % YOY 2021 % YOY 2022 % 0-4 Market Share Share Share Share (Q1) Openings Pre 2013 Derby, Burnley, Glasgow, Newport, 7.9% 8.1% 10.2% Peterborough, Chingford Openings 2013 – 17 Birmingham, Widnes, Birtley, 5.2% 5.4% 6.9% Castleford, Oldbury Ope
Slide 13: Price leadership is at the heart of what we do
Price leadership is at the heart of what we do Motorpoint has consistently more 'well priced' stock compared to the marketplace, and this trend is growing* In May 2022 over 95% of our customers surveyed agree we are unbeatable on price “I always take a commercial approach to acquiring a “Motorpoint
Slide 14: Price leadership strengthened by lowest Finance APR rates
Price leadership strengthened by lowest Finance APR rates 7.9% >£35K Motorpoint 8.9% <£35K Cazoo 9.9% Cinch 8.9% Evans Halshaw 9.9% Bristol Street Motors 9.9% Car Shop 11.9% 14
Slide 15: Motorpoint always offers the best value (PCP)
Motorpoint always offers the best value (PCP) Motorpoint Key Motorpoint benefits Cazoo Award winning service £12,599* £197 per month £13,979* £221 per month Extensive Choice 4,312 miles / 21 plate 2,966 miles / 21 plate Great Value Quality Standard Arnold Clark Flexible Finance Options Online + In B
Slide 16: Motorpoint always offers the best value (PCP)
Motorpoint always offers the best value (PCP) Motorpoint Key Motorpoint benefits Cazoo Award winning service £49,999* £690 per month Extensive Choice £52,050* £907 per month 16,462 miles / 20 plate 12,057 miles / 19 plate Great Value Quality Standard Arnold Clark Flexible Finance Options Online + In
Slide 17: Financial highlights and performance summary
Financial highlights and performance summary Chris Morgan, CFO Record revenue whilst managing well-documented industry challenges Motorpoint Group Plc - Full Year 2022 Results & Strategy Update 17
Slide 18: Financial highlights
Financial highlights £’m unless stated FY22 FY21 Change Revenue 1,322.3 721.4 83.3% • Retail volume growth of 46%, ahead of used car market (up 16%) Gross profit 106.3 62.5 70.1% • Share of 0-4 year old market 3.1% (FY21: 2.4%) • Profit before tax and EPS both up well over 100%, Profit before tax 21
Slide 19: Operating results
Operating results £’m FY22 FY21 Change Revenue • April and May record months. Sales moderated from ₋ Retail 1,112.3 593.8 June due to vehicle shortages ₋ Wholesale 210.0 127.6 • Online sales of £625m (FY21: £437m) and 60% of overall Total revenue 1,322.3 721.4 83.3% volumes. • Retail Gross Profit pe
Slide 20: Balance sheet
Balance sheet £’m FY22 FY21 Fixed assets 10.9 16.1 • Manchester, Maidstone and Portsmouth all opened since October 2021, and Motherwell prep centre in August 2021 Intangible assets 0.6 - • Assets held for sale include Stockton and Peterborough, planned Right of use assets 46.7 43.6 for sale and leas
Slide 21: Cashflow
Cashflow Motorpoint Group Plc - Full Year 2022 Results & Strategy Update 21
Slide 22: Capital light model generates impressive ROCE, despite vehicle inflation
Capital light model generates impressive ROCE, despite vehicle inflation • Leasehold property model • Two sale and leasebacks of last remaining building properties planned for after year end • Stock funded by third parties, which increased from £106m to £195m in the year • Vehicle paid for prior to
Slide 23: Financial KPIs (1 of 2)
Financial KPIs (1 of 2) FY22 FY21 Volumes Retail 62,856 43,144 Wholesale 34,818 24,367 Total 97,674 67,511 Online 23,336 22,543 Branch 39,520 20,601 Total Retail 62,856 43,144 Total GP per retail unit 1,446 1,254 GP per retail unit % 8.2% 9.1% Total GP per wholesale unit 440 344 GP per wholesale uni
Slide 24: Financial KPIs (2 of 2)
Financial KPIs (2 of 2) FY22 FY21 Average time to prep car (0-3 years) 7.4 days 9.7 days Average time to prep car (3 years+) 11.4 days 12.4 days Transport pu £ 99 97 Marketing £ 18.9m 7.0m Marketing pu (CAC) £ 300 163 People costs £ 34.7m 25.6m People costs pu £ 552 594 Depreciation and Occupancy £
Slide 25: Responsibility towards our environment and communities
Responsibility towards our environment and communities By supporting our environment and our communities • ESG Board committee established, led by Non We are leading the • CEO held multiple listening groups Executive Director with employees, including exclusive way in the industry by female, LGBT+ a
Slide 26: Strategic update and outlook
Strategic update and outlook Mark Carpenter, CEO Significant progress made on medium term focus to increase revenues to £2bn We will continue to invest to realise our ambition of increasing market share through price leadership Motorpoint Group Plc – Full Year 2022 Results & Strategy Update 26
Slide 27: Significant progress after one year
Significant progress after one year 32% of revenue E-commerce Digital first Sell target run rate Your Car achieved revenue at platform (in FY22) 80% of target Three further Auction4Cars. new market com operating areas already as a digital secured for marketplace FY23 Motorpoint Group Plc - Full Year
Slide 28: Greater investment in our brand drives market share gains
Greater investment in our brand drives market share gains Site Catchments (30 mins) Brand Awareness Market Share Q1 2022 (Spontaneous) April 2022 Openings Pre 2013 22% 10.2% Openings 2013 - 17 11% 6.9% Openings 2017 - 21 12% 8.9% Openings in the last 12 months 3% 2.2% Strong correlation between new
Slide 29: Our Strategic Pillars
Our Strategic Pillars Rapidly upscaling our Operational efficiency Increase customer Expand wholesale E-commerce through technology and acquisition and retention channels capability innovation • Increased investment in technology • Open 12 sales and collection • Invest in Auction4Cars.com to • Incre
Slide 30: Rapidly upscaling our E-commerce capability
Rapidly upscaling our E-commerce capability • Recruitment of Chief Digital Officer; Technology advisor to Board appointed, George Goley (Sears, Microsoft, Amazon, HRG) • New technology capability building; focus on product development, engineering and cloud • Tech stack replacement underway • Data s
Slide 31: Increase customer acquisition and retention
Increase customer acquisition and retention • Three new market area locations; more in the pipeline • Price leadership drives significant market outperformance* • Repeat customers returning with increasing frequency (35 months) • Increased product choice for customer (SKU mix over 70% unique) • Mark
Slide 32: Expand wholesale channels
Expand wholesale channels • Wholesale platform upgraded to operate as an automated digitally led marketplace; including third party vendors • Sell Your Car service now a fully automated digital first offering • No admin or payment fees for Sell Your Car customers; Payments made instantly on collecti
Slide 33: Operational efficiency through technology and innovation
Operational efficiency through technology and innovation • On track to increase capacity to 200,000 vehicles pa • Motherwell Preparation Centre opened August 2021 • New QC preparation App launched October 2021; vehicle faults halved to 3.4%. • Average time to prepare a vehicle 0-3 years fallen 23% t
Slide 34: Outlook
Outlook • Motorpoint remains a responsible, profitable and cash generative, with high ROCE • Price leadership is vital; we continue to offer the best value for our customers • Maintaining marketing investment as others retreat will grow share further as customers research more on price as household
Slide 35: Q+A
Q+A Motorpoint Group Plc - Full Year 2022 Results & Strategy Update 35
Slide 36: Disclaimer
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 pu