Slide 1: 2016 Q3 Broker Presentation
For personal use only 2016 Q3 Broker October 2016 Presentation
Slide 2: A.P. Eagers – Trading Update Q3, 2016
A.P. Eagers – Trading Update Q3, 2016 For personal use only • Introduction • AP Eagers - Today • Operational Update – Q3 Trading • Strategic Update - Carzoos • ASIC Reviews – Finance and Insurance • Mitigations *
Slide 3: A.P. Eagers Today
A.P. Eagers Today For personal use only • 103 year old automotive retail group founded in 1913 • 58 years as a listed public company – dividend paid every year • A.P. Eagers owns $285m of prime real estate • Represents all 12 of the top 12 selling vehicle brands in Australia and 27 car brands in tot
Slide 4: Operational Update – Q3 2016
Operational Update – Q3 2016 For personal use only Month Year to Date Variance 2016 2015 2016 2015 MTD % Chg YTD % Chg • National Trucks Australian Capital Territory 1,631 1,604 14,102 13,530 1.7% 4.2% New South Wales 34,424 33,983 299,126 283,746 1.3% 5.4% Northern Territory 880 785 8,481 8,272 12.
Slide 5: Carzoos – Theory & Rationale
Carzoos – Theory & Rationale Customers’ Perceptions of the Used For personal use only Car Buying Experience. “Dealers do not have my best interests at heart.” Commission based – it’s only about the sale Try to upsell Don’t care about what I need Don’t tell the whole truth
Slide 6: Used Car Disruption
For personal use only Used Car Disruption
Slide 7: Global Trends – Automotive Retail in Shopping Centres
Global Trends – Automotive Retail in Shopping Centres For personal use only
Slide 8: CARZOOS ... Weeks New!
CARZOOS ... 4 Weeks New! For personal use only
Slide 9: Brand Proposition – Solving the Pain Points
Brand Proposition – Solving the 3 Pain Points For personal use only
Slide 10: Carzoos – Beta Store Learnings (4 weeks in)
Carzoos – Beta Store Learnings (4 weeks in): • Slight Female Skew • Encouraging Age demographic For personal use only • High Engagement • Exceptional Response • Strong Sell My Car Enquiry 54% female V 45% male in store 74% Age 36-55 + 12% Age 21-35 • Metrics are sound Website Traffic Gender Breakdow
Slide 11: ASIC Review – Finance as at 10/2016
ASIC Review – Finance as at 10/2016 For personal use only The Facts: • Dealers are remunerated through combination of Fees, Flex Commission and Volume Bonus • ASIC have no issue with Fees or Volume Bonus • ASIC have no issue with Commission • ASIC have issue with Flex mechanism for Commission paymen
Slide 12: ASIC Review – Insurance
ASIC Review – Insurance For personal use only The Facts: • Add-on Insurance products designed, priced and distributed by Insurance Companies • Add on Insurance products retailed by Dealerships • ASIC review has focussed on design, payout ratios, lack of competition, high commissions and mis-selling
Slide 13: ASIC Review – Potential Mitigations
ASIC Review – Potential Mitigations • Finance Review proving difficult for ASIC to implement without unintended consumer harm For personal use only • Spectrum for change from No Change – Cap and Collar – Flex prohibition • ASIC review may lead to materially higher penetration rates • APE well positi
Slide 14: Simplr. Finance
For personal use only Simplr. Finance