Autosports Group Ltd · ASX:ASG
Autosports — FY2022 Earnings Presentation
36 slides from Autosports's earnings presentation, Aug 24, 2022
Slide 1: Autosports Group Limited 2022FY Presentation
For personal use only AUTOSPORTS GROUP LIMITED 2022FY PRESENTATION August 2022
Slide 2: Agenda
AGENDA For personal use only GROUP MODEL & GROWTH STRATEGY MARKET & ACQUISITION UPDATE 2022FY RESULTS SUMMARY 2022FY FINANCIAL METRICS RECAP & OUTLOOK APPENDIX
Slide 3: Financial Highlights
ASG 2022FY PRESENTATION AUGUST 22 3 FINANCIAL HIGHLIGHTS For personal use only Improved margins and strong customer demand drive record result in 2022FY and continued momentum into 2023FY Statutory NPAT up 29% Revenue down 5.2% on PCP $1,876m on PCP $54.6 million Customer new vehicle by Normalised N
Slide 4: Strategic Highlights
ASG 2022FY PRESENTATION AUGUST 22 4 STRATEGIC HIGHLIGHTS Consistent delivery of strategic objectives creates strong platform for growth For personal use only BUSINESS ACQUISITIONS DRIVE ACCRETIVE GROWTH John Newell Mazda settled July 2021 Suttons Subaru & Kia settled June 2022 Auckland City BM
Slide 5: Outlook 2023FY
ASG 2022FY PRESENTATION AUGUST 22 5 OUTLOOK 2023FY For personal use only New vehicle demand is expected to continue to exceed supply with new vehicle supply gradually improving through 2023FY and 2024FY Used vehicle demand is expected to remain elevated with underlying growth rates between 6% - 9% S
Slide 6: Agenda
AGENDA For personal use only GROUP MODEL & GROWTH STRATEGY MARKET & ACQUISITION UPDATE 2022FY RESULTS SUMMARY 2022FY FINANCIAL METRICS RECAP & OUTLOOK APPENDIX
Slide 7: Market Update – Supply Remains an Issue
ASG 2022FY PRESENTATION AUGUST 22 7 MARKET UPDATE – SUPPLY REMAINS AN ISSUE Supply deficit exceeds inflation / interest rate risk to consumer demand For personal use only Supply is Tight Demand is Strong Delivieries Orders Order bank Customer orders written in 2022FY exceeds supply by approx. 25%
Slide 8: Auckland City BMW Group
ASG 2022FY PRESENTATION AUGUST 22 8 AUCKLAND CITY BMW GROUP Incorporating Auckland City BMW, Rolls-Royce Motor Cars Auckland, For personal use only Auckland MINI Garage, East Auckland BMW and East Auckland MINI Garage BMW, MINI and Rolls-Royce are key luxury brand partners of ASG Acquisition deepens
Slide 9: Auckland City BMW Acquisition
ASG 2022FY PRESENTATION AUGUST 22 9 AUCKLAND CITY BMW ACQUISITION For personal use only OPPORTUNITY 5 dealerships ( 2 x BMW, 2 x MINI, 1 x Rolls-Royce) Dominant market share position in NZ: 37% BMW sales 50% MINI sales 100% Rolls-Royce sales Circa NZD $160m in total revenue 2022FY NPBT
Slide 10: Agenda
AGENDA For personal use only GROUP MODEL & GROWTH STRATEGY MARKET & ACQUISITION UPDATE 2022FY RESULTS SUMMARY 2022FY FINANCIAL METRICS RECAP & OUTLOOK APPENDIX
Slide 11: 2022FY Financial Summary
ASG 2022FY PRESENTATION AUGUST 22 11 2022FY FINANCIAL SUMMARY For personal use only Statutory revenue down 5.2% to $1,876m on new vehicle supply constraints delaying customer deliveries Strong underlying market saw new vehicle orderwrite exceed deliveries by 25% in 2022FY Normalised NPBT grew 23.4%
Slide 12: Normalised Financial Result
ASG 2022FY PRESENTATION AUGUST 22 12 NORMALISED FINANCIAL RESULT For personal use only Growth on $m 2022FY 2021FY PCP New vehicle revenue (-10.5%) impacted by supply constraints New Vehicles 1,139.8 1,273.3 -10.5% and new agency revenue treatment impact of c. $50m Used Vehicles 444.1 432.9 2.6%
Slide 13: Statutory Result
ASG 2022FY PRESENTATION AUGUST 22 13 STATUTORY RESULT Growth on For personal use only $m 2022FY 2021FY PCP HIGHLIGHTS Total Revenue 1,876.0 1,978.4 -5.2% Cost Of Goods Sold -1502.203 -1640.088 -0.084071708 NPAT up 28.7% on lower normalisations Gross Profit 373.8 338.3 10.5% Reducing acquisition
Slide 14: Agenda
AGENDA For personal use only GROUP MODEL & GROWTH STRATEGY MARKET & ACQUISITION UPDATE 2022FY RESULTS SUMMARY 2022FY FINANCIAL METRICS RECAP & OUTLOOK APPENDIX
Slide 15: Agency Model Accounting Treatment
ASG 2022FY PRESENTATION AUGUST 22 15 AGENCY MODEL ACCOUNTING TREATMENT For personal use only FINANCIAL STATEMENT MARGIN The Group no longer recognises the sale of a new vehicle revenue TREATMENT TREATMENT Agency commission revenue is recognised Decline in cost of goods sold as no new vehicle i
Slide 16: 2022FY Revenue Drivers
ASG 2022FY PRESENTATION AUGUST 22 16 2022FY REVENUE DRIVERS REVENUE BREAKDOWN 2022FY For personal use only Strong underlying market saw ASG’s new vehicle customer new vehicle orders grow ~ 300% in 2022FY ~140% in H1 2022FY on 1 July 2021 customer new vehicle orders ~160% in H2 2022FY on 1 July
Slide 17: Gross Margin Overview
ASG 2022FY PRESENTATION AUGUST 22 17 GROSS MARGIN OVERVIEW For personal use only 21.0% 19.9% GROSS MARGIN DRIVERS 20.0% Disciplined acquisition strategy investing in high margin businesses 19.0% Investment in service facility capacity unlocking high 18.0% margin service and parts revenue 17.1% 1
Slide 18: Unlocking Improved Operating Leverage
ASG 2022FY PRESENTATION AUGUST 22 18 UNLOCKING IMPROVED OPERATING LEVERAGE For personal use only 22.0% 19.9% 20.0% DISCIPLINED EXPENSE MANAGEMENT NORMALISED 18.0% 17.1% 16.3% PCP like for like Op Ex increased $4m (1.6%) 15.7% 15.6% 16.0% 14.9% 14.5% — Employee costs increased $9.7m, 2021FY 13.9% 1
Slide 19: Normalised Margin Overview
ASG 2022FY PRESENTATION AUGUST 22 19 NORMALISED MARGIN OVERVIEW For personal use only 7.0% 6.0% 6.0% PROFIT MARGIN DRIVERS 4.9% 4.7% 2016FY – 2022FY EBITDA growth driven by: 5.0% 3.7% 3.7% 3.8% — Increased scale and maturity supporting underlying 4.0% 3.3% 3.1% profit 3.0% 2.6% 2.6% 2.6% 2.2% 1.7%
Slide 20: 2022FY Cash Flow
ASG 2022FY PRESENTATION AUGUST 22 20 2022FY CASH FLOW ASG’s strong cash flow positions the Group well to unlock future growth potential For personal use only Strong cashflows enables: — Aggressive pay down of debt, $29m debt repayments in 2022FY — Acquisition growth strategy, $20.2m spent on acqui
Slide 21: Strong Balance Sheet
ASG 2022FY PRESENTATION AUGUST 22 21 STRONG BALANCE SHEET For personal use only Balance Sheet 2022FY 2021FY Cash & Cash Equivalents (90,817) (96,844) Corporate debt 112,542 95,662 SET FOR GROWTH Floorplan debt 231,460 271,247 Cash at hand $90.8m Total Borrowings 344,002 366,909 Net Debt 253,185 27
Slide 22: Agenda
AGENDA For personal use only GROUP MODEL & GROWTH STRATEGY MARKET & ACQUISITION UPDATE 2022FY RESULTS SUMMARY 2022FY FINANCIAL METRICS RECAP & OUTLOOK APPENDIX
Slide 23: Results Recap
ASG 2022FY PRESENTATION AUGUST 22 23 RESULTS RECAP For personal use only Statutory revenue down 5.2% to $1,876m on new vehicle supply constraints delaying customer deliveries Strong underlying market saw new vehicle orderwrite exceed deliveries by 25% in 2022FY Normalised NPBT grew 23.4% to $92.8m d
Slide 24: Strategic Outlook
ASG 2022FY PRESENTATION AUGUST 22 24 STRATEGIC OUTLOOK ASG strategy drives growth and shareholder returns For personal use only Consolidate the fragmented automotive retail market by acquiring: dealerships in the luxury and prestige segments dealerships of brands with strong EV capability Contin
Slide 25: Outlook 2023FY
ASG 2022FY PRESENTATION AUGUST 22 25 OUTLOOK 2023FY For personal use only New vehicle demand is expected to continue to exceed supply with new vehicle supply gradually improving through 2023FY and 2024FY Used vehicle demand is expected to remain elevated with underlying growth rates between 6% - 9%
Slide 26: Agenda
AGENDA For personal use only GROUP MODEL & GROWTH STRATEGY MARKET & ACQUISITION UPDATE 2022FY RESULTS SUMMARY 2022FY FINANCIAL METRICS RECAP & OUTLOOK APPENDIX
Slide 27: About ASG
ASG 2022FY PRESENTATION AUGUST 22 27 ABOUT ASG ASG was established in 2006 and operates one of Australia's largest networks of luxury and prestige car dealerships. For personal use only KEY FACTS ASG'S BRANDS (1 August 2022) Established 17 years ago by founders and major HISTORY shareholders, Ian
Slide 28: ASG Focused on Growth
ASG 2022FY PRESENTATION AUGUST 22 28 ASG FOCUSED ON GROWTH For personal use only 2017FY 2022FY Movement Growth Brand representation 11 20 9 Revenue $'millions 1,411.3 1,876.0 33% Margin improvement NPBT normalised* $'millions 37.1 92.8 150% Gross margin 14.9% 19.9% 34% NPBT normalised* margin 2.7% 4
Slide 29: Proven Record of Growth
ASG 2022FY PRESENTATION AUGUST 22 29 PROVEN RECORD OF GROWTH Since listing ASG has pursued a clear growth strategy balanced between acquisitions, organic and greenfield growth For personal use only 2017 2022 Doncaster BMW Suttons Subaru Rosebery Doncaster MINI Garage 2020 2021 Suttons Kia Ro
Slide 30: Enhanced Platform for Growth
ASG 2022FY PRESENTATION AUGUST 22 30 ENHANCED PLATFORM FOR GROWTH For personal use only REVENUE BY BRAND REVENUE BY STATE GROSS PROFIT CONTRIBUTION SUPER LUXURY 2% 2016FY FY16 REVENUE CONTRIBUTION 2016 FY HONDA 3% 4% VW 5% MAZDA 8% AUDI 39% VOLKSWAGEN NSW FRONT END 41% MERCEDES-BENZ QLD MAZDA VIC BA
Slide 31: AASB16 Leases Impact
ASG 2022FY PRESENTATION AUGUST 22 31 AASB16 LEASES IMPACT For personal use only 2022FY Statutory 2021FY Statutory A$m Pre AASB16 AASB16 After AASB16 A$m Pre AASB16 AASB16 After AASB16 Total Revenue 1,875.96 1,875.96 Total Revenue 1,978.4 1,978.4 Gross Profit 373.76 373.76 Gross Profit 338.3 338.3 Op
Slide 32: 2022FY Operating Expense Bridge
ASG 2022FY PRESENTATION AUGUST 22 32 2022FY OPERATING EXPENSE BRIDGE For personal use only
Slide 33: Property Portfolio Growth
ASG 2022FY PRESENTATION AUGUST 22 33 PROPERTY PORTFOLIO GROWTH For personal use only PROPERTY STRATEGY Property Portfolio * 120,000 Control strategically important retail sites 100,000 Improve capacity to actively manage ASG’s retail locations 80,000 Utilise the support of OEM financiers to pr
Slide 34: Questions
For personal use only QUESTIONS
Slide 35: Important Notice and Disclaimer
ASG 2022FY PRESENTATION AUGUST 22 35 IMPORTANT NOTICE AND DISCLAIMER For personal use only This presentation contains summary information about Autosports Group Limited (ACN 614 505 261) (ASG) and its activities current as at the date of this presentation. The information in this presentation is of
Slide 36: Drive Endless Possibilities
) QUTOsports group DRIVE ENDLESS POSSIBILITIES For personal use only