Penske Automotive Group, Inc. · NYSE:PAG
Penske Automotive — Q1 2021 Earnings Presentation
31 slides from Penske Automotive's earnings presentation, Apr 28, 2021
Slide 1: First Quarter 2021 Financial Results & Update
First Quarter 2021 Financial Results & Update
Slide 2: Disclaimer
Statements in this presentation may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.’s liquidity, assessment of business conditions, expected future operating results and growth plans. Actual results may vary materially because of risks
Slide 3: Penske Automotive at a Glance
• Operations across four continents and nine countries PENSKE AUTOMOTIVE • 321 retail automotive locations AT A GLANCE • worldwide 304 franchised automotive dealerships • 17 CarShop SuperCenters • 32 collision centers • 29 N.A. commercial truck dealerships • 28.9% ownership of Penske Transportation
Slide 4: Worldwide Automotive Brand Mix
WORLDWIDE AUTOMOTIVE BRAND MIX (% of Total Automotive Dealership Revenue) (3 Months 2021) 23% • Premium – 73% • U.S. – 1% • Volume Non-U.S. – 21% • CarShop – 5% 12% 11% 10% 10% 7% 7% 5% 4% 3% 3% 2% 1% 1% 1% Other ™ Q1 2021 4
Slide 5: Q1 2021 Revenue & EBT
Q1 2021 REVENUE & EBT Revenue Revenue Earnings Before Tax $5.8 Billion $5.8 Billion $248 Million 11% 60% 32% 90% 8% 65% 2% 24% 8% North America Retail Retail Commercial Other* Automotive Truck United Kingdom Other *Includes equity income from joint venture investments, including Penske Transportatio
Slide 6: Retail Automotive Dealership Metrics
RETAIL AUTOMOTIVE DEALERSHIP METRICS (FY 2020) • Retailed and wholesaled 500,000 vehicles in 2020 Revenue Gross Profit 14% 36% 45% 23% 41% 11% 1% 21% 5% 3% New Used S&P F&I F&WH Q1 2021 6
Slide 7: Retail Automotive Service & Parts
RETAIL AUTOMOTIVE SERVICE & PARTS $2,300 $1,300 $2,100 $1,200 $1,900 Gross Profit $1,100 Revenue $1,700 $1,000 $1,500 $900 $1,300 $800 $1,100 $700 2008 2009 2009 2010 2011 2013 2014 2015 2016 2017 2018 2019 2020 Revenue Gross Profit Q1 2021 7
Slide 8: Cost Reductions
COST REDUCTIONS • Reduced headcount by 3,500 persons or 13% of workforce since March 2020 • Travel, entertainment, marketing/advertising, vehicle maintenance Q1 2021 SG&A as a percentage 82.6% of gross profit improved by 990 78.3% basis points 72.7% Q1 2019 Q1 2020 Q1 2021 Q1 2021 8
Slide 9: Three-Year Growth Plan
THREE-YEAR GROWTH PLAN (INCOME BEFORE TAXES) $1 Billion 2023 Income Before Taxes $160 Million Organic Growth $46 Million Acquisitions $86 Million $708 Million 2020 Income Before Taxes Q1 2021 9
Slide 10: First Quarter 2021 Review
FIRST QUARTER 2021 REVIEW Q1 2021 10
Slide 11: First Quarter 2021 Highlights
FIRST QUARTER 2021 HIGHLIGHTS ($ in Millions, except Per Share Amount) Q1 ’21 Q1 ’20 Q1 ’19 Chg vs ‘20 Income from Cont Ops Before Taxes $248 $72 $134 +246% Income from Cont Ops $183 $52 $100 +254% Earnings Per Share $2.26 $0.64 $1.19 +253% Retail Automotive SG&A expenses as a Operating income Incom
Slide 12: Q1 2021 Key Metrics
Q1 2021 KEY METRICS Q1 Retail Automotive Q1 Income From Cont. Ops Total Units ($ in Millions) 127,114 $183 106,237 110,852 $100 $52 Q1 '19 Q1 '20 Q1 '21 Q1 '19 Q1 '20 Q1 '21 Q1 EBT ($ in Millions) Q1 EPS $248 $2.26 $134 $1.19 $72 $0.64 Q1 '19 Q1 '20 Q1 '21 Q1 '19 Q1 '20 Q1 '21 Q1 2021 12
Slide 13: Retail Automotive Key Metrics
RETAIL AUTOMOTIVE KEY METRICS Same-Store Q1 ‘21 Q1 ’20 Chg Volume Metrics New Units (U.S. +25.5%; U.K. +7.8%) 50,322 42,375 +18.8% Used Units (U.S. +14.5%; U.K. -18.2%) 59,815 62,052 (3.6%) Total (U.S. +19.8%; U.K. -10.2%) 110,137 104,427 +5.5% Gross Per Unit New $4,063 $3,235 +25.6% Used $1,821 $1,
Slide 14: Retail Automotive Revenue
RETAIL AUTOMOTIVE REVENUE Same-Store ($ in Millions) Q1 ’21 Q1 ’20 Chg New Vehicle $2,415 $1,838 +31.4% Used Vehicle $1,795 $1,597 +12.4% F&I $168 $142 +17.8% Service & Parts $502 $504 (0.4%) Fleet & Wholesale $304 $266 +14.1% Total $5,184 $4,347 +19.2% Q1 2021 14
Slide 15: Premier Truck Group Overview
• Largest Dealership Group for Daimler Trucks N.A. representing 29 dealerships PREMIER • Retailed over 3,000 new and used TRUCK commercial trucks in Q1 2021 • Q1 Revenue of $435 million GROUP • Service and Parts gross profit provides 66% of total gross profit for Q1 2021 OVERVIEW • Return on sales o
Slide 16: Retail Truck Key Metrics
RETAIL TRUCK KEY METRICS Q1 Q1 Same-Store Chg 2021 2020 Volume Metrics New Units 2,165 2,811 (23.0%) Used Units 841 698 +20.5% Gross Per Unit New Vehicle $6,585 $4,455 +47.8% Used Vehicle $7,674 ($3,511) N/A F&I $1,047 $907 +15.4% Q1 2021 16
Slide 17: Commercial Truck Revenue & Gross Profit Mix
COMMERCIAL TRUCK REVENUE & GROSS PROFIT MIX Gross Q1 2021 Revenue Profit Mix New $248 17.9% 66% of Gross Profit From Service & Used $51 8.1% Parts in Q1 2021 F&I $3 3.9% S&P $125 66.0% Other $8 4.1% Total $435 100.0% Q1 2021 17
Slide 18: CarShop Used SuperCenters
• Operate 17 CarShop used vehicle SuperCenters • Nearly 8,300 vehicles online • Fully digital solution available • U.K. showrooms were closed due to COVID-19 restrictions for all of Q1 2021 • Retailed 11,395 units in Q1 • U.S. +25% CARSHOP USED • U.K. -43% SUPERCENTERS • Same-atore Variable Gross Pr
Slide 19: Growth Plan Goal
GROWTH • Expected to open four PLAN GOAL locations in 2021 • Our goal is to increase the number of locations to 40 by the end of 2023 with: • 150,000 in unit sales • $2.5 to $3.0 billion in revenue • Income before taxes of approximately $100 million Q1 2021 19
Slide 20: Penske Australia
• Distributor of heavy and medium duty trucks, buses and diesel/gas engines and power systems in Australia and New Zealand • Western Star, MAN Truck and Bus, Dennis Eagle • MTU, Detroit Diesel, Allison Transmission, Bergen Onsite Energy, Rolls Royce Power Systems • Parts & service gross profit repre
Slide 21: PTS Overview
• 333,600 vehicles on the road • Q1 2021 revenue of $2.5 billion • Q1 2021 income of $186 million, or 9.0% return on sales • PAG recorded equity income of $53.7 million in Q1 2021, +295% PTS OVERVIEW Q1 2021 21
Slide 22: PTS Performance Summary
PTS PERFORMANCE SUMMARY Q1 Revenue ($ in Millions) Q1 Income ($ in Millions) $2,500 $186 $2,100 $2,200 $89 $47 Q1 '19 Q1 '20 Q1 '21 Q1 '19 Q1 '20 Q1 '21 Q1 2021 22
Slide 23: U.S. Digital Retailing
U.S. DIGITAL RETAILING Preferred Purchase = Flexible Buying Online: In-Store and Online: • Transparent and streamlined • Hybrid model • Self-directed experience • Continued experience in store • Allows for test drive • Low-pressure sales environment • Shortens time in-store • Home delivery Q1 2021 2
Slide 24: U.K. Digital Retailing
U.K. DIGITAL RETAILING Offers an intuitive desktop and mobile design Q1 2021 24
Slide 25: U.K. Buy Online Features
U.K. BUY ONLINE FEATURES Car Search Trade-In Finance Application (instant decision) Multiple Finance Co. Integration £99 Reservation Buy Outright (Credit Card) Collection Location Customer Account Area Digital Documentation Digital Signature Additional Products Q1 2021 25
Slide 26: CarShop Global Brand
CarShop – GLOBAL BRAND • 17 used vehicle SuperCenters in the U.S. and U.K. • Buy online or in-store capability Q1 2021 26
Slide 27: Digital Solutions
DIGITAL SOLUTIONS Buy/Sell/Trade Service • New vehicles • State-of-the-art facilities • Certified pre-owned vehicles • Factory-trained technicians • Used vehicles • Online scheduling • 40,000 vehicles online • Service eApproval • PenskeCars.com • Real-time status updates • carshop.com • Online bill
Slide 28: By the Numbers
BY THE NUMBERS • 40,000 vehicles available online through digital channels • Preferred Purchase sales in Q1 2021 increased 44% over Q1 2020 • Completed nearly 6,900 online transactions in first quarter, or 6% of total unit sales Q1 2021 28
Slide 29: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Q1 2021 29
Slide 30: EBITDA Reconciliation
EBITDA RECONCILIATION ($ in Millions) Q1 ‘21 Q1 ’20 Q1 ’19 Net Income $183.1 $51.5 $99.2 Depreciation $29.3 $28.5 $26.4 Other Interest $17.9 $31.7 $29.9 Income Taxes $64.5 $20.1 $34.7 Income/Loss from Disc. Ops. --- ($0.1) ($0.1) EBITDA $294.8 $131.7 $190.1 Q1 2021 30
Slide 31: Investor Relations Contact
Investor Relations Contact: Anthony R. Pordon Executive VP-Investor Relations and Corporate Development Phone: 248-648-2540 Email: tpordon@penskeautomotive.com Penske Automotive Group, Inc. 2555 S. Telegraph Road Bloomfield Hills, MI 48302 www.penskeautomotive.com Q1 2021 31
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