Autosports Group Ltd · ASX:ASG
Autosports — Macquarie Australia Conference 2017
29 slides from Autosports's conference presentation, May 3, 2017
Slide 1: Investor presentation May 2017
For personal use only Investor presentation May 2017 1
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This presentation contains summary information about Autosports Group Limited (ACN 614 505 261) (ASG) and its activities current as at the date of this For personal use only presentation. The information in this presentation is of general background and does not purpo
Slide 3: Presenting Today
PRESENTING TODAY For personal use only Nick Pagent Aaron Murray Managing Director and CEO CFO Group CEO since formation of the Group CFO since 2009 after joining the Autosports Group group in 2007 20 years of motor vehicle industry 20 years of motor vehicle industry experience in Australia a
Slide 4: ASG Company Introduction
ASG COMPANY INTRODUCTION Attractive Industry Fundamentals For personal use only Consistent and stable growth in new cars, driven by long term trends Clear and focused strategy to concentrate on the prestige and luxury segments of the market 2017FY has seen improving coverage of major metropoli
Slide 5: Agenda
AGENDA For personal use only ASG BUSINESS OVERVIEW & STRATEGY TIMG ACQUISITION & ASG QUALITY UPDATE GROWTH DRIVERS & OUTLOOK ASG 2017 OUTLOOK HIGHLIGHTS Q & A APPENDIX | ADDITIONAL INFORMATION 5
Slide 6: ASG Business Overview & Strategy
For personal use only ASG BUSINESS OVERVIEW & STRATEGY TIMG ACQUISITION & ASG QUALITY UPDATE GROWTH DRIVERS & OUTLOOK ASG 2017 OUTLOOK HIGHLIGHTS Q & A APPENDIX | ADDITIONAL INFORMATION 6
Slide 7: ASG Company Overview
ASG COMPANY OVERVIEW For personal use only Founded in 2006 with one site Now covers 34 outlets across Sydney, Melbourne and Brisbane Represents the brands of: Audi, Alpina, Bentley, BMW, Mercedes Benz, Maserati, Mini, Lamborghini, Fiat Alfa Romeo, Volvo, Volkswagen, Mazda and Honda 1000 empl
Slide 8: Strategy: Prestige and Luxury
STRATEGY: PRESTIGE AND LUXURY For personal use only Fastest growing segments over a sustained period Represents the brands of: Audi, Alpina, Bentley, BMW, Mercedes Benz, Maserati, Mini, Lamborghini, Fiat Alfa Largest Markets. NSW, QLD and Vic comprise 82% Romeo, Volvo, Volkswagen, Mazda and Ho
Slide 9: ASG Brand Portfolio
ASG BRAND PORTFOLIO For personal use only Used car Collision repair Prestige (7) Luxury (22) Dealerships (2) facilities (3) Variety of Prestige and Luxury Authorised by: brands 4 Dealerships 2 Dealerships 2 Dealerships 9
Slide 10: TIMG Acquisition & ASG Quality Update
For personal use only ASG BUSINESS OVERVIEW & STRATEGY TIMG ACQUISITION & ASG QUALITY UPDATE GROWTH DRIVERS & OUTLOOK ASG 2017 OUTLOOK HIGHLIGHTS Q & A APPENDIX | ADDITIONAL INFORMATION 10
Slide 11: Opening Up Victoria – Via Acquisition of BMW in Melbourne
OPENING UP VICTORIA – VIA ACQUISITION OF BMW IN MELBOURNE ON STRATEGY ACQUISITION COMPLETION ON TIME For personal use only Addition of new Luxury Brands Settlement completed on schedule in April 2017 to capture the seasonally strong June Quarter Strong revenue of approximately $235m pa trading
Slide 12: BMW Acquisition Update
BMW ACQUISITION UPDATE FIRST COMPLETED ACTIONS ONGOING REVIEW New Dealer Principal appointed with BMW support Operational expense review underway to uncover For personal use only potential synergies and cost savings Internal transfer from NSW ASG site to assist with culture and integration R
Slide 13: Quality Update: DOTY Awards 2016
QUALITY UPDATE: DOTY AWARDS 2016 For personal use only AUDI – Audi Centre Parramatta (1st), Audi Centre Mosman (2nd), Audi Five Dock (3rd) VOLVO | Volvo Cars Sydney (1st), Volvo Cars Parramatta (2nd) MERCEDES-BENZ | Mercedes-Benz Toowong (3rd) 13
Slide 14: Continuing Operational Excellence
CONTINUING OPERATIONAL EXCELLENCE For personal use only OPERATIONAL EXCELLENCE DRIVES o OEM KPI based payments o Opportunity for expansion within the brand o Demonstrates ASG’s capacity to represent multi brands individually Volkswagen 2016 DOTY announced in May 2017 14
Slide 15: Growth Drivers & Outlook
For personal use only ASG BUSINESS OVERVIEW & STRATEGY TIMG ACQUISITION & ASG QUALITY UPDATE GROWTH DRIVERS & OUTLOOK ASG 2017 OUTLOOK HIGHLIGHTS Q & A APPENDIX | ADDITIONAL INFORMATION 15
Slide 16: ASG's Growth Driven Organically
ASG’s GROWTH DRIVEN ORGANICALLY For personal use only Organic growth continues to be the primary driver of growth at ASG contributing to 78.7% of the pro forma revenue growth in the 1H 2017FY Growth has been underpinned by maturing greenfields businesses and improving back end income streams As a re
Slide 17: Diversified Revenue Model
DIVERSIFIED REVENUE MODEL Multiple Income Streams give ASG, strength, flexibility and resilience. They give ASG multiple levers to drive sustainable growth For personal use only "FRONT-END" "BACK-END" New car sales Service Finance & Aftermarket (including Parts Insurance collision repair) Used car s
Slide 18: New Cars: Q1 2017 Luxury Market
NEW CARS: Q1 2017 LUXURY MARKET For personal use only CommSec Analysis of Luxury Market Prestige & Luxury Market Growth Trends CommSec have noted a March quarter pause The market growth over the last 20 years has been a in Luxury Car Sales from record highs CAGR of 8%. The growth has not been li
Slide 19: New Cars | March 2017 VFacts Analysis
NEW CARS |MARCH 2017 VACTS ANALYSIS For personal use only LUXURY NATIONAL ASG MARKET Alfa Romeo -17.1% -4.0% (NSW) Total Market -2.1% vs March Quarter 2016 Audi -14.9% -9.7% (NSW) -3.7% (QLD) Luxury Sales -4.2% vs March Quarter 2016 Regional trends very different Bentley +45.5% +200.0% (QLD)
Slide 20: Used Cars – ASG Wholesale Retail Hub Strategy
USED CARS – ASG WHOLESALE RETAIL HUB STRATEGY For personal use only ASG Operates Used Car Retail hubs in Sydney and Used Vehicle Revenue continues to perform strongly in Brisbane the 2017FY Hubs are considered more efficient for stock The acquisition of BMW Doncaster gives our Victorian mana
Slide 21: Aftersales/Backend Growth
AFTERSALES/BACKEND GROWTH Growth in Service, Parts & Collision Repair continues to drive growth for ASG For personal use only Growth Cap Ex | Unlocking Aftersales Income Growth ASG’s business model benefits from inbuilt growth in back-end revenue from a maturing service, parts and panel customer bas
Slide 22: Growth with Opportunity
GROWTH WITH OPPORTUNITY For personal use only GROWTH WITH OPPORTUNITY ASG now operates 29 of approximately 540 new car prestige or luxury dealerships on the East Coast of Australia Porsche No ASG Dealership The industry remains highly fragmented Consolidation opportunities are being driven by: I
Slide 23: ASG 2017 Outlook Highlights
For personal use only ASG BUSINESS OVERVIEW & STRATEGY TIMG ACQUISITION & ASG QUALITY UPDATE GROWTH DRIVERS & OUTLOOK ASG 2017 OUTLOOK HIGHLIGHTS Q & A APPENDIX | ADDITIONAL INFORMATION 23
Slide 24: ASG 2017 Highlights
ASG 2017 HIGHLIGHTS For personal use only ASG REAFFIRMS ITS PROFORMA PROSPECTUS FORECAST AND ITS FY 2017 OUTLOOK VFACTS REGISTRATIONS DATA SHOWS LUXURY SEGMENT -4.2% IN MARCH QUARTER VS MARCH QUARTER 2016 TRADING CONTINUES TO BE STRONG IN USED PRESTIGE AND LUXURY AND SERVICE AND PARTS DIVISIONS ASG
Slide 25: Q & A
For personal use only ASG BUSINESS OVERVIEW & STRATEGY TIMG ACQUISITION & ASG QUALITY UPDATE GROWTH DRIVERS & OUTLOOK ASG 2017 OUTLOOK HIGHLIGHTS Q & A APPENDIX | ADDITIONAL INFORMATION 25
Slide 26: Appendix | Additional Information
For personal use only ASG BUSINESS OVERVIEW & STRATEGY TIMG ACQUISITION & ASG QUALITY UPDATE GROWTH DRIVERS & OUTLOOK ASG 2017 OUTLOOK HIGHLIGHTS Q & A APPENDIX | ADDITIONAL INFORMATION 26
Slide 27: Pro Forma Financial Summary
PRO FORMA FINANCIAL SUMMARY PRO FORMA HISTORICAL AND FIRST HALF17 INCOME STATEMENT For personal use only BASIS OF PREPARATION A$m Pro forma historical Proforma The Volvo Brighton deal which settled on 12 September FY17 2016 & 5 Willims Dealerships that settled on18 November Y/E 30 June FY2014 FY20
Slide 28: Strong Balance Sheet
STRONG BALANCE SHEET For personal use only Pro Forma Balance Sheet 31-Dec-16 BASIS OF PREPARATION Total Borrowings 268,193 Pro forma balance sheet and key ratios include all Cash & Cash Equivalents (30,287) businesses 6 month trading profit (as per prospectus forecast) Net Debt 237,906 Pro forma
Slide 29: Pro Forma Cash Flow
PRO FORMA CASH FLOW For personal use only 29
Autosports Group — Macquarie Australia Conference 2017 on 6ix