Autosports Group Ltd · ASX:ASG
Autosports — 1H FY2017 Earnings Presentation
28 slides from Autosports's earnings presentation, Feb 24, 2017
Slide 1: Investor presentation February 2017
For personal use only Investor presentation February 2017 1
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This presentation contains summary information about Autosports Group Limited (ACN 614 505 261) (ASG) and its activities current as at the date of this For personal use only presentation. The information in this presentation is of general background and does not purpo
Slide 3: Presenting Today
PRESENTING TODAY For personal use only Nick Pagent Aaron Murray Managing Director and CEO CFO Group CEO since formation of the Group CFO since 2009 after joining the Autosports Group group in 2007 20 years of motor vehicle industry 20 years of motor vehicle industry experience in Australia a
Slide 4: First Half Highlights
FIRST HALF HIGHLIGHTS For personal use only GROWTH IN REVENUE AND PROFITABILITY CONTINUES TO BE UNDERPINNED BY ORGANIC GROWTH MARKET CONDITIONS CONTINUE TO FAVOUR THE PRESTIGE AND LUXURY SEGMENTS & EAST COAST BROADENING THE BASE WITH STRATEGIC GREENFIELDS EXPANSION WITH VOLVO IN SYDNEY INTEGRATION O
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS For personal use only Pro forma 1H17 revenue of $670.8M (46.4% of FY17 Prospectus commentary on expected 1H FY17 financial performance prospectus forecast vs guidance of 43% - 46%) *Across FY2014 to FY2016, first half revenue contributed Pro forma gross margin strong at 15.0
Slide 6: Agenda
AGENDA For personal use only INDUSTRY FUNDAMENTALS GROWTH STRATEGY FINANCIALS SUMMARY Q & A ADDITIONAL INFORMATION 6
Slide 7: Industry Fundamentals
For personal use only INDUSTRY FUNDAMENTALS GROWTH STRATEGY FINANCIALS SUMMARY Q & A ADDITIONAL INFORMATION 7
Slide 8: Strong Industry Fundamentals Continue
STRONG INDUSTRY FUNDAMENTALS CONTINUE For personal use only Total market up 2% in 2016 in line with average growth 2016 record total market of 1.178M vehicle sales underpinned by continued growth in SUV segment In 2016 NSW, Victoria and Queensland accounted for 82% of the new vehicle registrat
Slide 9: Prestige & Luxury Segments Continue to Outpace the Market
PRESTIGE & LUXURY SEGMENTS CONTINUE TO OUTPACE THE MARKET For personal use only Luxury segment grew by 12.3% in Super Luxury segment grew at ASG believes growth in prestige 2016 with Volvo growing 18.9%, 8% in 2016 with Lamborghini and luxury markets will continue Mercedes-Benz 13%, BMW 12% gr
Slide 10: Growth Strategy
For personal use only INDUSTRY FUNDAMENTALS GROWTH STRATEGY FINANCIALS SUMMARY Q & A ADDITIONAL INFORMATION 10
Slide 11: Willims Motor Group & Volvo Cars Brighton On Track
WILLIMS MOTOR GROUP & VOLVO CARS BRIGHTON ON TRACK For personal use only Willims Motor Volvo Cars Group Brighton Settled November 2016 Settled October 2016 Management retention 100%, including First site in Victoria vendor Management retention 100%, including Revenue in line with expecta
Slide 12: Organic Growth
ORGANIC GROWTH For personal use only Organic growth continues to be the primary driver of growth at ASG contributing to 78.7% of the pro forma revenue growth in the 1H 2017FY Growth has been underpinned by maturing greenfields businesses and improving back end income streams As a result of this stro
Slide 13: New Greenfields Appointment - Volvo Cars Rushcutters Bay
NEW GREENFIELDS APPOINTMENT -VOLVO CARS RUSHCUTTERS BAY GREENFIELD OPPORTUNITY VOLVO RELATIONSHIP For personal use only Luxury Brand Strong OEM relationship Sydney (Eastern Suburbs location) ASG’s Volvo growth built on high performance with Volvo Cars Sydney finishing 1st and Volvo Cars Parr
Slide 14: Opening Up Victoria – Via Acquisition of BMW in Melbourne
OPENING UP VICTORIA – VIA ACQUISITION OF BMW IN MELBOURNE ON STRATEGY ACQUISITION SCALE For personal use only Addition of new Luxury Brands. Revenue approximately $235M Extends ASG exposure in east Melbourne 223 staff BMW (2), BMW Motorrad (2), Alpina (1), Mini (1) High Growth: BMW in Vi
Slide 15: BMW Acquisition
BMW ACQUISITION For personal use only The Deal Gearing EPS Funding Impact $46M* for the business, IP & Cash reserves and Debt facility Remains well under 1 x EBITDA Settlement planned for Q2 2017 goodwill Immediately accretive Plant & Equipment at Valuation Stock at Valuation 1 * Consi
Slide 16: Growth with Opportunity
GROWTH WITH OPPORTUNITY For personal use only GROWTH WITH OPPORTUNITY With the addition of the Greenfields site for Volvo Cars at Rushcutters Bay and the acquisition of BMW Doncaster, BMW Bundoora, Mini Doncaster Porsche and Alpina, ASG adds 5 luxury dealerships on the east coast of Australia Desp
Slide 17: Financials Summary
For personal use only INDUSTRY FUNDAMENTALS GROWTH STRATEGY FINANCIALS SUMMARY Q & A ADDITIONAL INFORMATION 17
Slide 18: Pro Forma Financial Summary
PRO FORMA FINANCIAL SUMMARY For personal use only PRO FORMA HISTORICAL AND FIRST HALF17 INCOME STATEMENT KEY PERFORMANCE INDICATORS Gross profit performing strongly at 48.2% of pro forma forecast Gross margin improvements to 15% driven by: Improvements to used vehicle retail vs wholesale mix i
Slide 19: Statutory Accounts
STATUTORY ACCOUNTS For personal use only STATUTORY ACCOUNTS 18 NOVEMBER 2016 TO 31 DECEMBER 2016 BASIS OF PREPARATION A$m Statutory Financials 18 November 16 to Statutory loss of ($2.3m) NPBT includes Y/E 30 June 31 December 16 the following IPO related costs that are Total revenue 165.4 not of a
Slide 20: Strong Cash Flow Generation
STRONG CASH FLOW GENERATION For personal use only 20
Slide 21: Net Debt Position
NET DEBT POSITION For personal use only Pro Forma 31 December 2016 Capital Structure Facility $m Capital Loans 21.0 Other Loans & Hire Purchase facilities 3.3 Cash (30.2) Pro forma Net debt / (cash) (Excluding floorplan finance) (5.9) Net Debt (Cash) / FY2017 EBITDA (adjusted)* (0.1x) Foorplan Finan
Slide 22: Second Half Outlook
SECOND HALF OUTLOOK For personal use only ASG REAFFIRMS ITS 2017FY PROFORMA PROSPECTUS FORECAST EPS ACCRETIVE VICTORIAN ACQUISITION OF TIMG (THE IN MOTION GROUP) GREENFIELDS DEVELOPMENT OF VOLVO CARS RUSHCUTTERS BAY ASG'S DIVIDEND POLICY REMAINS UNCHANGED FROM PROSPECTUS GUIDANCE G O O D M O M E N T
Slide 23: First Half Highlights
FIRST HALF HIGHLIGHTS For personal use only GROWTH IN REVENUE AND PROFITABILITY CONTINUES TO BE UNDERPINNED BY ORGANIC GROWTH MARKET CONDITIONS CONTINUE TO FAVOUR THE PRESTIGE AND LUXURY SEGMENTS & EAST COAST BROADENING THE BASE WITH STRATEGIC GREENFIELDS EXPANSION WITH VOLVO IN SYDNEY INTEGRATION O
Slide 24: Q & A
For personal use only INDUSTRY FUNDAMENTALS GROWTH STRATEGY FINANCIALS SUMMARY Q & A ADDITIONAL INFORMATION 24
Slide 25: Additional Information
For personal use only INDUSTRY FUNDAMENTALS GROWTH STRATEGY FINANCIALS SUMMARY Q & A ADDITIONAL INFORMATION 25
Slide 26: Statutory Reconciliation
STATUTORY RECONCILIATION 1H FY2017 STATUTORY NPBT (A$M) For personal use only 0.5 (0.9) 6.1 (1.3) 3.9 2.5 16.7 8.2 Acquisition Offer Acquisition (2.3) Pro forma NPBT Public Employee Pre-Completion Pre-Completion Amortisation Company Gift Offer Costs Costs Trading Trading Statutory & KMP Costs for Ac
Slide 27: Update on ASG
UPDATE ON ASG For personal use only OEM appointed Dealerships Used car Collision repair Second half grow th Prestige (7) Luxury (16) Dealerships (2) facilities (2) 2017FY (8) Variety of Prestige and Luxury brands 1 Dealership 2 BMW Dealerships 1 Collision Repair 1 Alpina Dealership 2 BMW motorcycle
Slide 28: Diversified Revenue Model - Enhancements
DIVERSIFIED REVENUE MODEL - ENHANCEMENTS Victorian acquisition broadens and enhances ASG's revenue model For personal use only "FRONT-END" "BACK-END" New car sales Service Finance & Aftermarket (including Parts Insurance collision repair) Used car sales Motorcycles BMW MOTORRAD PANEL The Motorcycl