Eagers Automotive Limited · ASX:APE
Eagers Automotive — FY2023 Earnings Presentation
39 slides from Eagers Automotive's earnings presentation, Feb 22, 2024
Slide 1: FY 2023 Results Presentation
For personal use only eacels .. qutemotive 22 February 2024 Market Announcements Office ASX Limited FY 2023 Results Presentation Attached is the Full Year Results Presentation for Eagers Automotive Ltd (ASX: APE) for the year ended 31 December 2023. -ENDS- For more information: Keith Thornton John S
Slide 2: FY 2023 Results
ele Cr ‘ automotive FY 2023 Results Keith Thornton | Chief Executive Officer Sophie Moore | Chief Financial Officer 770% AYWNUGASA ZZ
Slide 3: Agenda
For personal use only Agenda FY 2023 Overview Financial Results Operational Update Strategic Priorities Outlook Q&A (<2) Sa@motive
Slide 4: Financial highlights FY 2023
For personal use only Financial highlights FY 2023 Revenue $9.9bn Cash at Bank $222.2m Statutory 2 PBT aod ~=$427.3m Ordinary Final Dividend => LC =On ae Revenue rN 415.3% vsprioryeor Underlying Operating PBT a fo} [Eos] $433.3m Available Liquidity © Underlying $620.3m (S Operating @ PBT 46.9% sevci
Slide 5: 2023 Scorecard
For personal use only 2023 Scorecard Fea Top Line Growth ke) $8.5 billion $95 1 210-0 2023 & 2022 2023 est. Beyond... Return on Sales Growth &3) 3.0% 4.7% 2023 & 10-yr avg 2022 Beyond... Material revenue 2023 growth of $1.3 Scorecard billion in 2023 +15.3% vs prior year 2023 Key Actions Material new
Slide 6: Financial Results
eqacers .. qutomotive Financial Results
Slide 7: FY 2023 Summary P&L
FY 2023 Summary P&L S$ Million Revenue from continuing operations Movement] Movement (3) (%) +1,310.2| _-+15.3% Underlying operating EBITDAI from continuing operations” +749 | +15.9% +28.1| +6.9% Cc © [Underlying operating PBT from continuing operations” {cb) n Specific items reported below underlyi
Slide 8: Balance sheet strength
Balance sheet strength Cash Position: $222.2m Net Debt: $262.7m Strong Available Liquidit Low Gearing: 0.48 times Cash 209.1 1976 190.4 222.2 Net Debt 1293 1284 2534 | 2627 Property Owned: $597.9m2) Available Liquidity 6832-7331 6311 6203 Corporate Debt: Average Tenor 4.8 years” Gearing 0.29 0.28 0.
Slide 9: Track record of strong profit growth through cycles
Track record of strong profit growth through cycles inderlyin atutory Profit Performance > Underlying & Statutory Profit Perf = January 2006 to December 2023 S {o) a (ab) +400 (184.7% | 4326 Underh PBT Statutory PBT. E wn [Bh underying IB stotutory Na 1,240 > 1,200 C 1,000 S fo) 800 _ i) — /_™ a 600
Slide 10: Record full year dividend for FY 2023
For personal use only Record full year dividend for FY 2023 Long term consistent track record of maximising shareholder returns Ordinary Dividends mH 1H Underlying EPS 30 90 120 130 BS 329 380 36.0 365 14.0 25.0 | 20.0 74.0 220 24.0 720 100 80 60 40 20 FYI3 FYI4 FYIS FYI6 FYIT FYI6 FYI3 FYI4 FYIS FY
Slide 11: Operational Update
@) egoers . “| qutomotive Operational Update
Slide 12: Record new vehicle market
Record new vehicle market Gap in the new vehicle market remains despite record new vehicle deliveries in 2023 For personal use only Australian New Vehicle Market January 2020 to December 2023 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec VFACTS 1* Half 2°° Half Full Year Total Market 2023 2023 202
Slide 13: Consistent new vehicle demand supported by order bank
Consistent new vehicle demand supported by order bank = Cc Oo Australian New Vehicle Order Write vs Deliveries ® January 2020 to December 2023 op) > Cc (©) Y) — oO lok — Oo LL Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec -21 -21 -21 -21 -22 -22 -22 -22 -23 -23 23 -23 — Order Write — Delivery 12 |
Slide 14: Eagers uniquely placed in material addressable market
Eagers uniquely placed in material addressable market Unique to the Automotive Retail Industry 2) 9 Q tC) Brand Portfolio ersonal use only 13 | Eac Geographic Reach Volume Brands Largest automotive retail group in Australia & New Zealand Brand Portfolio eading retail partner for NEV t Prestige & Lux
Slide 15: Business transformation underpins growth
Business transformation underpins growth y nal use onl perso For 2019 $8.2bn 17.2% 15.2% 2.1% 2.8% 2023 Used Cars iv) Technology Record profit <2) autémotive
Slide 16: Further upside on Return On Sales
Further upside on Return On Sales WA sid ROS Like-for-like ROS Wh vpside YTD Dec Underlying LFL Underlying LFL "Acquisitions Greenfield Divestments Retail Joint Underlying YTD 2022 YTD 2023 I Venture YTD 2023 Opportunity to increase ROS Upside on integration of recent scale acquisitions Upside from
Slide 17: Delivering top line revenue growth
Delivering top line revenue growth Platform established in 2022 delivers record revenue in 2023 with further material growth secured for 2024 2023 Revenue Growth +1.3bn Record revenue for FY23 ~30% of total turnover growth (net of agency impacts) Growth on a like- for-like basis despite supply inter
Slide 18: Strategic Priorities
eqacers .. “ qutomotive Strategic Priorities
Slide 19: Optimisation of business model and clear growth strategy
Optimisation of business model and clear growth strategy Optimisation Building an optimised business model é 6 A oe to maximise operating leverage . Growth Pill Australia & New Zealand Expansion cy Leading NEV Transition A use onl Consolidation, Growth with Establishing Scaling our Supporting existi
Slide 20: Business model optimisation driven by Next100 strategy execution
Business model optimisation driven by Next100 strategy execution Productivity Drivers Key Metric: Revenue Per Employee Key Metric: Rent to Gross Profit Ratio Supported by 19 | Eagers Automotive FY 202: o Key Metrics (Reported Basis) Productivity per person +39% since 2019 + 18.6% in 2023 vs prior pe
Slide 21: Financial Services will be key margin offset
Financial Services will be key margin offset r) Finance & Insurance Eogers Top 30% i Top 30% New Car income PVR up 2.7% Used Car income per contract up 3.6% New Car income per contract up 11.8% New car care PVR up 52.9% since 2019 + 9.% Opportunity remains to drive Finance Used Car income PVR up 4.0
Slide 22: Record independent used result
Record independent used result easyauto123 Castine SINCE 1960 stainable Grow’ 9 r Be sustainable Growth) Net Operating Profit Per Unit easyauto123 Cc (e) ® 12) - (a0) FYI9 FY20 Fy21 FY22 FY23 Mi Underying Operating Profit (e) 1023 2023 3023 4023 Y HB NOP per unit . (2) o easyautol23, Carlin caRmax ”
Slide 23: For personal use only
For personal use only 5 3 2 1 4 = + + + +
Slide 24: Leading the NEV transition
Leading the NEV transition Factors Driving Demand for NEVs ers. otive Incentives Mandates Gov't Rebates & Concessions Climate Change Initiatives 7 +) Passenger Vehicles Tax Concessions (FBT) Government Policies Total Cost of Ownership Corporate ESG Targets Largest automotive retail group Partner of
Slide 25: For personal use only
For personal use only South Morang Doncaster Essendon Preston Ringwood Brooklyn Melbourne City Waverley Laverton North Ferntree Gully Toorak Malvern Mulgrave Brighton Dandenong Mornington
Slide 26: Alice Springs Toyota
For personal use onl Alice Springs Toyota $55-60 million ~,000sqm Annual Turnover of land and buildings to be acquired Expanding our partnership Opportunity to everage with long-term leading OEM __ scale benefits with existing in Northern Territory market Toyota operations in Darwin ico] aqutemotive
Slide 27: Outlook
eqoers .. “ automotive Outlook
Slide 28: Record second half with resilient economic model
Record second half with resilient economic model Record new car market in 2023 to deliver favourable dynamics in 2024 Record Underlying Performance | a 1 402 219 405 195 69% 433 207 personal use only Fy20 Highlights 27 | Eagers Automoti Fy22 Fy23 Key Levers - 2023 & Outlook 2022 vs 2023 2023 vs 2024
Slide 29: Delivering top line revenue growth
Delivering top line revenue growth Platform established for further material growth in 2024 ~$1bn ~ revenue — growth in = 2024 ©) ® op) > © Cc (©) Y) — 2022 2023 2024 FCST oO CTop rine §8.5billion $9.9billion 2024and = 2022 2023 beyond... P 2 LL Return On Sales 3.0% 44% 2024 and Growth 10-yr avg 202
Slide 30: Market opportunity and transformation summary
Engage our customers, everywhere Redefine our workforce Deliver optimised vehicle finance solutions Support innovation Reinvest with discipline 29 | Eagers Automotive FY 2023 Re Market Opportunity More than $1bn Automotive in revenue H Retail is resilient growth expected Transformation with multiple
Slide 31: Thank you
CQgels |. \ automotive Thank you
Slide 32: Questions?
For personal use only QUESTIONS?
Slide 33: Disclaimer
e only For personal us Disclaimer The information in this document (information) does not contain all information necessary for investment decisions, is not intended to be an offer, invitation or recommendation with respect to shares, is not financial product advice, and is intended to be general ba
Slide 34: Appendix
eqoers .. “ automotive Appendix
Slide 35: Statutory to Underlying EBITDAI & PBT - FY 2023
For personal use only 34 | Eagers Autom Statutory to Underlying EBITDAI & PBT - FY 2023 $ MILLION FY23 EBITDAI Pan & mort Underlying Operating Impairment AASB16 Lease Standard Business Acquisition, Divestment & Integration Costs Sale of Assets Miscellaneous Total Significant Items Statutory 546.0 14
Slide 36: Statutory to Underlying EBITDAI & PBT - FY 2022
For personal use only 35 | Eagers Autom Statutory to Underlying EBITDAI & PBT - FY 2022 $ MILLION FY22 EBITDAI = & mort Underlying Operating Impairment AASB16 Lease Standard Business Acquisition, Divestment & Integration Costs Sale of Assets Miscellaneous Total Significant Items Statutory 652.4 (23.
Slide 37: Definitions
Definitions Non-IFRS Financial Information CPS is defined as cents per share 2s is defined as customer satisfaction index Ocx is defined as customer experience @WMea is defined as Eagers Automotive Limited (formerly AP Eagers Limited) 12) 5 EBIT is defined as earnings before interest and tax 6 EBITD
Slide 38: Definitions
Definitions Non-IFRS Financial Information > PAT is defined as profit after tax ec PBT is defined as profit before tax ©) PBT margin is calculated as profit before tax before significant items as a percentage of revenue ® qy PcP is defined as prior corresponding period =) ___ PVR is defined as per v
Slide 39: For personal use only
For personal use only