Eagers Automotive Limited · ASX:APE
Eagers Automotive — H1 2023 Earnings Presentation
36 slides from Eagers Automotive's earnings presentation, Aug 24, 2023
Slide 1: Half Year 2023 Results Presentation
eqacerls .. qutemotive 24 August 2023 Market Announcements Office ASX Limited Half Year 2023 Results Presentation Attached is the Half Year Results Presentation for Eagers Automotive Ltd (ASX:APE) for the half year ended 30 June 2023. For more information: Keith Thornton Jon Snowball Chief Executive
Slide 2: HY 2023 Results
eCQogels .. “ automotive HY 2023 Results Keith Thornton | Chief Executive Officer Sophie Moore | Chief Financial Officer £7072 LSNONW 72
Slide 3: Agenda
Agenda 1H 2023 Overview Financial Results Operational Update Strategic Priorities Outlook Q&A <2] Guternotive
Slide 4: Financial highlights HY 2023
Financial highlights HY 2023 Growth delivered via sustainable operating leverage and underpinned by strong balance sheet il {Sp % {o} i) Record Half Year Revenue Statutory Underlying Return on Sales Revenue PBT Operating PBT” (Underlying) +14.3% on pep $4.8bn $216.1m $207.4m 4.3% Uinte texas} Operat
Slide 5: 2023 Outlook & Beyond
2023 Outlook & Beyond Disciplined focus on accelerating our Next100 Strategy ON TIRNGK 2022 2023 est. 2023 & 10-yr avg 2021 2022 Beyond. Franchised Auto consolidation and rationalisation Material new partnerships easyautol23 growth Disciplined & targeted M&A activity Strategic alliances Exceeding FY
Slide 6: Financial Results
egoerls .. _ automotive Financial Results
Slide 7: HY 2023 Summary P&L
HY 2023 Summary P&L ae Movement] Movement onion ace eeceeceeneeesneennenesneeneeienesneeneenneeneen 8) (6) +14.3% ocervog operating EBITDAI from continuing operations ' rf 415.4% +6.3% Underlying Specific items reported below underlying profit . } (83.1%) Statutory profit before tax from continuing
Slide 8: Balance sheet strength
Balance sheet strength Disciplined utilisation of balance sheet & available liquidity to invest in growth opportunities alongside active capital management Strong Metrics Cash 209.1 197.6 190.4 1 353.0 Net Debt 129.3 1284 2534 1 118.0 Available Liquidity 683.2 733.1 631.1 758.1 Gearing 0.29 0.28 0.5
Slide 9: Record half year dividend for 1H 2023
Record half year divided for 1H 2023 Long term consistent track record of maximising shareholder returns via flexible capital management (AR 80 Ordinary 4g ivi (1) i: \V Dividends" Capital Management 50 Execution | 40 1H 30 20 Invest in the business funding organic growth, greenfield 10 24.0 opportu
Slide 10: Operational Update
&) eqgers . “| automotive Operational Update
Slide 11: New vehicle market drives strong performance
New vehicle market drives strong performance Operating leverage evidenced through new vehicle supply driving strong underlying profit performance Australian New Vehicle Market"? January 2020 to June 2023 Eagers Underlying PBT January 2023 to June 2023 250 200 50 - penne _ ~—<‘<~‘zS 1 June MTD I | Ma
Slide 12: Market dynamics sustain our order bank
, , (=> Market dynamics sustain our order bank i=) Demand remains robust with significant order bank run off period and material embedded gross profit Australian New Vehicle Order Write vs Deliveries January 2020 to June 2023 New Vehicle Order Bank Growth = Order Write 414%") — Delivery a 63%2) VO D
Slide 13: Uniquely placed in material addressable market
Uniquely placed in material addressable market Opportunity within the automotive retail industry is compelling despite new vehicle supply constraints S Australian New Vehicle Market 1D Gap in the New Vehicle Market 1,200, 113) a S 2012 — 2019 Average: 1,137k vehicle deliveries p.a. 1,150, _ 2020 — 2
Slide 14: Delivering top line revenue growth
Delivering top line revenue growth Platform established in 2022 delivers record half year revenue result - Record Result Revenue Growth Driven by organic, greenfield & $4.8bn +602.2m acquisition initiatives (up 14.3% on pep) (vs 1H22) ~10% of total turnover growth ~50% of total turnover growth ~40%
Slide 15: Strong margins & cost management drive sustainable ROS
Strong margins & cost management drive sustainable ROS Optimisation of business model delivering greater productivity on a more efficient cost base Underlying Cost Base (like-for-like basis) Resilient performance despite record inflation & rising rate market +4.9% Reduction (+2.5% excl ©) ~$20m fina
Slide 16: Strategic Priorities
egoerls .. _ automotive Strategic Priorities
Slide 17: NEXT100 Strategy
NEXT100 Strategy Providing integrated mobility solutions for the next 100 years Engage our customers, everywhere Deliver optimised vehicle finance solutions Redefine our workforce Support innovation Exceed Stakeholder Expectations Customers. Employees. Partners. Shareholders. Community. Reinvest wit
Slide 18: AutoMall concept
AutoMall concept Driving greater customer experience on a lower cost base AutoMall Strategy 802 [Ss Great customer Reduced Improved experience Cost Base Gross Profit Multi-brand consolidation Improved omni-channel CX Multi-format execution Greater throughput per site Service factories rolled out Inc
Slide 19: AutoMall concept
AutoMall concept Innovative automotive retail reimagined Launched Future Concepts Under Review Under Development
Slide 20: AutoMall concept
AutoMall concept Innovative automotive retail reimagined New Entrant Partnership Opportunities Blank canvas for go-to-market strategy Leveraging physical and digital assets Design an end-to-end omni-channel experience Traditional retail reimagined to align with customer wants and needs Network Strat
Slide 21: Driving productivity through proprietary technology
Driving productivity through proprietary technology Unique in-house technology solutions driving enhanced productivity and enabling operating leverage 2023 Roll Out Program Key Criteria Identify a (1) 10 Minute Integrated digital vehicle > 6,100 7 ae Sales App contract solution > 61% of all orders (
Slide 22: Financial services
Financial services Continued outperformance against industry benchmarks Strategic Highlights Growing proprietary businesses JV finance portfolio growth to ~$330 million Expanding our Growth in ancillary products providing offering hedge against new car finance share Expansion of Perfexion into NZ &
Slide 23: Leading the NEV transition
Leading the NEV transition Retail preferences & fleet mandates underpinned by incentives & mandates driving acceleration of NEV adoption <2] automotive Gov't Rebates & Concessions oe Climate Change Initiatives Povernment Policies | Passenger Vehicles Tax Concessions (FBT) Total Cost of Ownership Cor
Slide 24: Organic independent used growth
Organic independent used growth Driving sustainable scaling of the business through disciplined investment Your Car, Your Way - let the customer decide National Footprint Tinking of sees yourcart= Organic Website Leads Franchise Dealers Carlins Central Valuations Wholesale Market Disposal Channel Se
Slide 25: Outlook
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Slide 26: An evolving market presents new opportunities
An evolving market presents new opportunities Australia & New Zealand Expansion Cy Leading NEV Transition 9 - Consolidation | Rationalisation | Evolution 4 o - Supporting existing OEM partners (-\ - Growth with existing partners - Preferred retail partner for new market entrants - Establishing new r
Slide 27: Material revenue growth for 2023 and beyond
Material revenue growth for 2023 and beyond Disciplined investment provides platform for top line revenue growth in 2023 to exceed expectations On track Top line growth delivered to exceed with sustainable strong Top 5 Key Takeaways FY23 forecast return on sales 6 Revenue growth 9.5 — ic 6 Sustainab
Slide 28: Thank you
CQgers |. \ automotive Thank you
Slide 29: QUESTIONS?
QUESTIONS?
Slide 30: Disclaimer
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 background information
Slide 31: Appendix
[ele en ~ automotive Appendix
Slide 32: Statutory to Underlying EBITDAI & PBT - 1H 2023
Statutory to Underlying EBITDAI & PBT - 1H 2023 Depn & $ MILLION 1H23 Underlying Operating Impairment AASB16 Lease Standard Business Acquisition, Divestment & Integration Costs Sale of Assets Miscellaneous Total Significant Items Statutory 254.1 72.1 326.2 (10.8) (46.7) (46.7) (57.5) Interest Expens
Slide 33: Statutory to Underlying EBITDAI & PBT — 1H 2022
Statutory to Underlying EBITDAI & PBT — 1H 2022 § MILLION 1H22 EBITDA | Depn& | Interest | Interest | ooimment| PBT Usk: NPAT Amort Expense Income Expense Underlying Operating 220.2 (9.4) (15.5) 195.1 (62.6) 132.5 Impairment - (1.7) (1.7) 0.0 (1.7) AASB16 Lease Standard 69.2 (45.3) (23.4) S7 63 (1.9
Slide 34: Definitions
Definitions Non-lFRS Financial Information CAGR is defined as compound annual growth rate CPS is defined as cents per share cs is defined as customer satisfaction index cx is defined as customer experience EA is defined as Eagers Automotive Limited (formerly AP Eagers Limited) EBIT is defined as ear
Slide 35: Definitions
Definitions Non-IFRS Financial Information NEV is defined as new energy vehicle which includes plug in hybrid, electric and hydrogen powered vehicles NPAT is defined as net profit after tax PAT is defined as profit after tax PBT is defined as profit before tax PBT margin is calculated as profit befo
Slide 36: CQgelrs _.
CQgelrs _. automotive