Slide 1: Investor Presentation Second Quarter 2022
Investor Presentation Second Quarter 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be dee
Slide 3: Business Highlights – Q2 2022
Business Highlights – Q2 2022 Acquisition of CIG Financial Record ‘Will Buy Your Car’ Results Announced the purchase of CIG Financial for $85 million in cash plus Purchased over 31,750 vehicles directly from customers. the assumption of certain liabilities as of the closing date. The Self-sourced ov
Slide 4: Financial Highlights – Q2 2022
Financial Highlights – Q2 2022 EPS an All-Time Record $6.48 Strong, Well-positioned Balance Sheet EPS increased 34% YoY* driven by operational effectiveness Ended with $2.1 billion in total liquidity and 1.4x net leverage and diligent capital allocation Repurchased 3.7 Million Shares SG&A as a % of
Slide 5: Q2 2022 Financial Highlights
Q2 2022 Financial Highlights Second Quarter ($ in millions, except per share data) 2022 2021 Variance Total revenue $6,869.2 $6,978.4 -1.6% Gross profit $1,361.7 $1,326.3 2.7% Selling, general, and administrative expenses $754.8 $748.9 0.8% SG&A / Gross Profit 55.4% 56.5% -110bps Operating income $5
Slide 6: Q2 2022 Key Financial Metrics
Q2 2022 Key Financial Metrics Total Revenue ($MM) Variable Gross Profit ($MM) After-Sales Gross Profit $6,978 -2% $6,869 $892 -2% ($MM) $878 +11% $482 $433 Q2 '21 Q2 '22 Q2 '21 Q2 '22 Q2 '21 Q2 '22 SG&A/Gross (%) Operating Income ($MM) EPS ($) 56.5% -110bps +5% $558 +34% $6.48 $530 $4.83 55.4% Q2 '2
Slide 7: Q2 2022 Gross Profit & Operating Income Walk
Q2 2022 Gross Profit & Operating Income Walk $33 $46 $49 $1 $1,362 $1,326 Gross Profit $1 Q2 2021 New Used F&I P&S Other Q2 2022 $35 $6 $1 $1 $558 $530 Operating Income Q2 2021 Gross Profit SG&A D&A Other Q2 2022 7
Slide 8: New Vehicle Retail
New Vehicle Retail New Retail Units Days Sales Outstanding (DSO) 77,164 14 11 58,277 57,601 56,442 57,890 10 9 8 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 PVR ($) $6,450 $6,112 $6,106 $5,484 ► New Retail Units declined 25% YoY due to $4,153 manufacturer supply shortages ►
Slide 9: Used Vehicle Retail
Used Vehicle Retail Used Retail Units Days Sales Outstanding (DSO) 80,589 40 40 79,763 35 34 30 77,553 77,080 74,442 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 PVR ($) $2,239 $2,103 $2,063 $1,915 ► Used Retail PVR increased $349 sequentially $1,566 after an inventory rebal
Slide 10: Finance & Insurance (F&I)
Finance & Insurance (F&I) Total Retail Units Revenue ($MM) 157,753 $369 $368 $364 135,830 136,205 134,970 $354 132,043 $349 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 PVR ($) $2,724 $2,678 $2,672 $2,569 ► F&I PVR increased $385 YoY due to higher $2,339 margins on service c
Slide 11: After-Sales
After-Sales Revenue ($MM) Gross Margin (%) $1,036 45% 46% 46% 45% 44% $1,004 $961 $951 $944 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Adjusted Gross Profit ($MM) $482 $461 ► After-Sales gross profit increased 11% YoY $433 primarily due to growth in customer pay and $425 $
Slide 12: Adjusted SG&A/Gross Profit & Operating Inc Margin
Adjusted SG&A/Gross Profit & Operating Inc Margin Adj. SG&A / Gross Profit (%) 72.3% 67.2% ► Current market conditions and AutoNation’s digital capabilities continue to support 58.0% 56.6% significant expense leverage 55.4% FY 2019 FY 2020 FY 2021 Q1 2022 Q2 2022 Adjusted Operating Income Margin (%)
Slide 13: EPS & Cash Flow
EPS & Cash Flow Adj. EPS ($) $18.14 ► AutoNation delivered record EPS from Continuing Operations in FY 2021, due to the $7.11 current supply/demand environment, strong $3.86 $3.51 $3.88 $4.56 operational execution, and disciplined expense management 2016 2017 2018 2019 2020 2021 Cash Flow From Opera
Slide 14: Capital Allocation
Capital Allocation Share Repurchases ($MM) $2,303 $497 ► $2.1 billion of liquidity, including $337 million $435 $382 $100 of cash and approximately $1.8 billion of $45 availability on our credit facilities as of June 2016 2017 2018 2019 2020 2021 30, 2022 Capital Expenditures ($MM) $394 $333 $253 $2
Slide 15: AutoNation Investment Highlights
AutoNation Investment Highlights ► Most admired automotive retailer with diversified portfolio and business mix ► Ranked Top Dealership Group in US by Automotive News in 2021 ► Industry leading brand and over 500,000 5-star reviews according to Reputation ► AutoNation USA expansion provides an attra
Slide 16: Optimal Brand Positioning within Diversified Portfolio
Optimal Brand Positioning within Diversified Portfolio FY 2021 Segment Income ► Comprehensive brand selection provides customers broad range of innovative products from all leading Domestic vehicle manufacturers 28% Premium Luxury 39% ► Strong OEM partnerships support customer service and retention
Slide 17: Diversified Revenue Mix Drives Profitability
Diversified Revenue Mix Drives Profitability FY 2021 Revenue(1) FY 2021 Gross Profit(1) Finance & Insurance 5% Parts & Finance & New Service Insurance 24% 14% New 28% 47% Used Used 34% Parts & 14% Service 34% ⁽¹⁾ Excludes Other ⁽¹⁾ Excludes Other ► Vehicle sales generate 38% of gross profit and crea
Slide 18: AutoNation USA Rollout Plan
AutoNation USA Rollout Plan ► Provides opportunity to expand geographic footprint and gain pre-owned market share ► Leverages experience from original 5 profitable pilot stores ► Plan to open 12th store during the third quarter in Kennesaw, Georgia ► Over 130 total stores targeted to be in operation
Slide 19: Appendix
Appendix This presentation contains certain non-GAAP financial measures for which we have set forth below reconciliations to the most comparable GAAP measures. The Company believes that these measures improve the transparency of the Company’s disclosure, provide a meaningful presentation of the Comp
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted SG&A Twelve Months Ended Twelve Months Ended Twelve Months Ended ($ in millions) December 31, 2021 December 31, 2020 December 31, 2019 SG&A as a Percentage SG&A as a Percentage SG&A as a Percentage SG&A of Gross Profit (%) SG&A of Gross Profit (%) SG&A of Gross Prof
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Operating Income Twelve Months Ended Twelve Months Ended Twelve Months Ended ($ in millions) December 31, 2021 December 31, 2020 December 31, 2019 Percentage of Revenue Percentage of Revenue Percentage of Revenue Operating Income (%) Operating Income (%) Operating I
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted After-Sales Gross Profit / Adjusted D&A / Adjusted Other Income ($ in millions, except per share data) Three Months Ended December 31, P&S Gross Profit Depreciation and amortization Other income, net 2021 2020 $ Variance 2021 2020 $ Variance 2021 2020 $ Variance As
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Income / Adjusted EPS (Annual) Twelve Months Ended December 31, Income from Continuing ($ in millions, except per share data) Operations Before Income Taxes Income Tax Provision(1) Net Income Diluted Earnings Per Share (2) 2021 2020 2019 2021 2020 2019 2021 2020
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Income / Adjusted EPS (Annual) ($ in millions, except per share data) Twelve Months Ended December 31, Income from Continuing Operations Before Income Taxes Income Tax Provision(1) Net Income Diluted Earnings Per Share (2) 2018 2017 2016 2018 2017 2016 2018 2017
Slide 25: Follow us on social media at @autonation
Follow us on social media at @autonation 25