Autosports Group Ltd · ASX:ASG
Autosports — H1 FY2022 Earnings Presentation
35 slides from Autosports's earnings presentation, Feb 25, 2022
Slide 1: Autosports Group Limited H1 2022FY Presentation
For personal use only AUTOSPORTS GROUP LIMITED H1 2022FY PRESENTATION FEBRUARY 2022
Slide 2: Agenda
AGENDA For personal use only GROUP MODEL & GROWTH STRATEGY H1 2022FY RESULTS SUMMARY H1 2022FY FINANCIAL TRENDS GROWTH FOCUS AREAS RECAP & OUTLOOK APPENDIX
Slide 3: ASG Highlights
ASG H1 2022FY PRESENTATION FEBRUARY 22 3 ASG HIGHLIGHTS For personal use only Supportive industry dynamics ▪ Record demand, orderbanks and growing margins ▪ Strong balance sheet positioned for growth A clear growth strategy ▪ To grow by consolidating the highly fragmented but large automotive dealer
Slide 4: ASG | Focused on Growth
ASG H1 2022FY PRESENTATION FEBRUARY 22 4 ASG | FOCUSED ON GROWTH For personal use only CALENDAR YEAR 2017CY 2021CY Movement Growth Brand representation 11 18 7 Revenue $'millions 1,524.1 1,985.5 30.3% Margin Improvement NPBT normalised* $'millions 41.5 85.4 105.9% Gross margin 15.6% 18.2% 16.9% NPBT
Slide 5: Proven Record of Growth
ASG H1 2022FY PRESENTATION FEBRUARY 22 5 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 ▪ Doncaster BMW 2020 2021 2022 ▪ Doncaster MINI Garage ▪ Doncaster Motorrad ▪ Trivett Alexand
Slide 6: Enhanced Platform for Growth
ASG H1 2022FY PRESENTATION FEBRUARY 22 6 ENHANCED PLATFORM FOR GROWTH Since listing ASG has worked on improving its business platform for accelerated growth For personal use only ▪ Balance sheet strengthened and positioned for growth ▪ Expanded brand representation helps drive growth opportunity and
Slide 7: Agenda
AGENDA For personal use only GROUP MODEL & GROWTH STRATEGY H1 2022FY RESULTS SUMMARY H1 2022FY FINANCIAL TRENDS GROWTH FOCUS AREAS RECAP & OUTLOOK APPENDIX
Slide 8: H1 2022FY Highlights
ASG H1 2022FY PRESENTATION FEBRUARY 22 8 H1 2022FY HIGHLIGHTS For personal use only Statutory revenue grows 0.8% to $910.8m Normalised NPBT* grew 35.1% to $39.2m New vehicle orderbank grew over 100% since February 2021 Like for like operating expenses fell $5m Acquisition led growth continues with A
Slide 9: Normalised Financial Result
ASG H1 2022FY PRESENTATION FEBRUARY 22 9 NORMALISED FINANCIAL RESULT For personal use only Growth on $m H1 2022FY H1 2021FY PCP ▪ Revenue growth of 0.8% driven by $44m in growth from New Vehicles 564.4 567.2 -0.5% acquisitions, Brighton Jaguar Land Rover (February 2021) Used Vehicles 209.0 209.2 -0.
Slide 10: Statutory Result
ASG H1 2022FY PRESENTATION FEBRUARY 22 10 STATUTORY RESULT For personal use only Growth on ▪ EBITDA of $66.4m impacted by: $m H1 2022FY H1 2021FY PCP Total Revenue 910.8 903.7 0.8% ▪ AASB16 impact $19.6m** Cost Of Goods Sold -736.275 -752.987 -0.0221943 ▪ Acquisition and restructure expenses ($1.8m)
Slide 11: Agenda
AGENDA For personal use only GROUP MODEL & GROWTH STRATEGY H1 2022FY RESULTS SUMMARY H1 2022FY FINANCIAL TRENDS GROWTH FOCUS AREAS RECAP & OUTLOOK APPENDIX
Slide 12: Financial Trends
ASG H1 2022FY PRESENTATION FEBRUARY 22 12 FINANCIAL TRENDS For personal use only 2,500.0 Revenue ▪ Resilient business model allowing revenue growth, outperforming overall new vehicle market 1H 2H 2,000.0 ▪ Revenue supported by organic and acquired growth 1,500.0 1,074.7 ▪ 2016FY – 2021FY total reven
Slide 13: Normalised Gross Margin Overview
ASG H1 2022FY PRESENTATION FEBRUARY 22 13 NORMALISED GROSS MARGIN OVERVIEW For personal use only GROSS MARGIN DRIVERS ▪ Strong depth of orderbank will prolong high margin environment ▪ Gross profit margins continue to improve ▪ Front end gross margin positively impacted by demand exceeding available
Slide 14: Disciplined Expense Management Normalised
ASG H1 2022FY PRESENTATION FEBRUARY 22 14 DISCIPLINED EXPENSE MANAGEMENT NORMALISED Will drive further improvements to EBITDA margin For personal use only 20.0% 19.2% IMPROVED OPERATING LEVERAGE 19.0% 18.0% 17.1% ▪ EBITDA margin increased by 0.6% on improved 17.0% 16.3% 15.7% 15.6% operating leverag
Slide 15: Normalised Margin Overview
ASG H1 2022FY PRESENTATION FEBRUARY 22 15 NORMALISED MARGIN OVERVIEW For personal use only 6.0% 5.3% PROFIT MARGIN DRIVERS EBITDA H1 2021FY 4.2% 4.7% 5.0% H2 2021FY 5.1% 4.3% ▪ 2016FY – 2021FY EBITDA CAGR of 18% outpacing revenue 3.7% 3.7% 3.8% 4.0% 3.3% growth driven by: 3.1% 3.0% 2.6% 2.6% 2.6% ▪
Slide 16: H1 2022FY Cash Flow
ASG H1 2022FY PRESENTATION FEBRUARY 22 16 H1 2022FY CASH FLOW ASG’s strong cash flow positions the Group well to unlock future growth potential For personal use only ▪ Operating cashflow impacted by ▪ Increased equity in inventory $18m ▪ ATO debt repayments $6.9m ▪ Proceeds from borrowings of $21.3m
Slide 17: H1 2022FY Liquidity
ASG H1 2022FY PRESENTATION FEBRUARY 22 17 H1 2022FY LIQUIDITY Prudent holding of cash facilities For personal use only H1 2022FY LIQUIDITY MOVEMENTS ▪ Strong cash balance ensures we are well positioned for any future acquisition opportunities and enables ASG to pay a dividend ▪ Unused bailment facil
Slide 18: Strong Balance Sheet
ASG H1 2022FY PRESENTATION FEBRUARY 22 18 STRONG BALANCE SHEET For personal use only Balance Sheet SET FOR GROWTH H1 2022FY 2021FY H1 2021FY Cash & Cash Equivalents (70,576) (96,844) (61,637) Corporate debt 104,809 95,662 87,798 ▪ Cash at hand $70.6m Floorplan debt 234,919 271,247 264,280 Total Borr
Slide 19: Agenda
AGENDA For personal use only GROUP MODEL & GROWTH STRATEGY H1 2022FY RESULTS SUMMARY H1 2022FY FINANCIAL TRENDS GROWTH FOCUS AREAS RECAP & OUTLOOK APPENDIX
Slide 20: New Vehicle Growth
ASG H1 2022FY PRESENTATION FEBRUARY 22 20 NEW VEHICLE GROWTH Large orderbank will drive organic growth as supply constraints unwind For personal use only NEW VEHICLE REVENUE CALENDAR YEAR NEW VEHICLE GROWTH ORGANIC GROWTH OPPORTUNITY 1,400,000 ▪ Since 2017CY ASG’s growth in new ▪ New vehicle supply
Slide 21: Used Car Growth
ASG H1 2022FY PRESENTATION FEBRUARY 22 21 USED CAR GROWTH ASG’s used car growth will be supported by growing scale and inventory sourcing advantages For personal use only USED VEHICLE REVENUE CALENDAR YEAR THE IMMEDIATE OPPORTUNITY ASG’S ADVANTAGES 500,000 ▪ The total used car retail market remains
Slide 22: Service & Parts Growth
ASG H1 2022FY PRESENTATION FEBRUARY 22 22 SERVICE & PARTS GROWTH Impacted by Covid-19 related lockdowns and reduced traffic during the pandemic service and parts revenue represents an immediate growth opportunity for ASG For personal use only SERVICE & PARTS REVENUE CALENDAR YEAR THE IMMEDIATE OPPOR
Slide 23: Property Portfolio Growth
ASG H1 2022FY PRESENTATION FEBRUARY 22 23 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
Slide 24: Agenda
AGENDA For personal use only GROUP MODEL & GROWTH STRATEGY H1 2022FY RESULTS SUMMARY H1 2022FY FINANCIAL TRENDS GROWTH FOCUS AREAS RECAP & OUTLOOK APPENDIX
Slide 25: Results Recap
ASG H1 2022FY PRESENTATION FEBRUARY 22 25 RESULTS RECAP For personal use only Statutory revenue grows 0.8% to $910.8m Normalised NPBT* grew 35.1% to $39.2m New vehicle orderbank grew over 100% since February 2021 Like for like operating expenses fell $5m Acquisition led growth continues with Alexand
Slide 26: Outlook
ASG H1 2022FY PRESENTATION FEBRUARY 22 26 OUTLOOK For personal use only Continuing uncertainty around vehicle delivery timings New vehicle underlying demand is expected to continue to exceed supply throughout the 2022CY New vehicle supply is expected to slowly improve as semi-conductor related produ
Slide 27: Agenda
AGENDA For personal use only GROUP MODEL & GROWTH STRATEGY H1 2022FY RESULTS SUMMARY H1 2022FY FINANCIAL TRENDS GROWTH FOCUS AREAS RECAP & OUTLOOK APPENDIX
Slide 28: About ASG
ASG H1 2022FY PRESENTATION FEBRUARY 22 28 ABOUT ASG ASG was established in 2006 and operates one of Australia's largest networks of luxury and prestige car dealerships. For personal use only KEY FACTS ASG'S BRANDS ▪ Established 16 years ago by founders and major HISTORY shareholders, Ian Pagent and
Slide 29: Enhanced Platform for Growth
ASG H1 2022FY PRESENTATION FEBRUARY 22 29 ENHANCED PLATFORM FOR GROWTH For personal use only REVENUE BY BRAND REVENUE BY STATE GROSS PROFIT CONTRIBUTION SUPER LUXURY 2% 2016FY FY16 REVENUE CONTRIBUTION 2016 FY HONDA 3% 4% VW 5% MAZDA 8% AUDI 39% VOLKSWAGEN NSW FRONT END 41% MERCEDES-BENZ QLD MAZDA V
Slide 30: AASB16 Leases Impact
ASG H1 2022FY PRESENTATION FEBRUARY 22 30 AASB16 LEASES IMPACT For personal use only H1 2022FY H1 2021FY After After A$m Pre AASB16 AASB16 AASB16 A$m Pre AASB16 AASB16 AASB16 Total Revenue 910.79 910.79 Total Revenue 903.7 903.7 Gross Profit 174.51 174.51 Gross Profit 150.7 150.7 Opex (125.9) 19.6 (
Slide 31: H1 2022FY Operating Expense Bridge
ASG H1 2022FY PRESENTATION FEBRUARY 22 31 H1 2022FY OPERATING EXPENSE BRIDGE For personal use only
Slide 32: Statutory PBT to Normalised PBT Reconciliation
ASG H1 2022FY PRESENTATION FEBRUARY 22 32 STATUTORY PBT TO NORMALISED PBT RECONCILIATION For personal use only
Slide 33: Questions
For personal use only QUESTIONS
Slide 34: Important Notice and Disclaimer
ASG H1 2022FY PRESENTATION FEBRUARY 22 34 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 i
Slide 35: For personal use only
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