Eagers Automotive Limited · ASX:APE
Eagers Automotive — FY2021 Earnings Presentation
39 slides from Eagers Automotive's earnings presentation, Feb 24, 2022
Slide 1: FY 2021 Results
For personal use only eqgels .. qutomotive FY 2021 Results Keith Thornton | Chief Executive Officer Sophie Moore | Chief Financial Officer 24 February 2022
Slide 2: FY 2021 Highlights
FY 2021 Highlights Record full year result driven by simplified business leveraging scale, geographic diversity and favourable market conditions ERecord Profit Franchised Automotive @&) covers . motive Independent Used ;execution, cost out program and strong market conditions Strategic Property . Ow
Slide 3: Agenda
For personal use only Agenda Financial Results . Operational Update . Strategic Priorities . Outlook 1. 2 3 4. easyauto123 5 6. Q&A
Slide 4: Financial Results
For personal use only eqadcels .. qutomotive Financial Results
Slide 5: Financial Highlights FY 2021
Financial Highlights FY 2021 Disciplined focus on cost base underpinning sustainable Return on Sales performance Daimler Trucks Gain on Sale (Pre-Tax) Underlying Operating PBT! $30.2m $401.8m Corporate Debt Net of Cash2 $128.4m <2} autémotive
Slide 6: Summary P&L
Summary P&L $ MILLION Revenue from continuing operations' Underlying operating EBITDA! from continuing operations! Underlying operating PBT from continuing operations! Specific iterns reported below underlying profit! Statutory profit before tax from continuing operations Statutory profit after tax
Slide 7: Underlying to Statutory PBT — FY21
Underlying to Statutory PBT — FY21 429 02 Tal 401.8 (5.2) Underlying Profit ‘AASBI6 Lease Standard Revaluation of Properties Sale of Assets Other Statutory Profit Before Tax! Before Tax (1) Refer to Slide 34 for a detailed reconciliation between Underlying Profit Before Tax and Statutory Profit Befo
Slide 8: Segment Results
Segment Results Continuing operations Car Retailing Strong performance on pcp driven by cost out initiatives, strong margins driven by sustained demand and supply chain dynamics and continued focus on the national pre-owned strategy. Truck Retailing Decline in performance relative to pcp driven by s
Slide 9: Strong Balance Sheet
Strong Balance Sheet Effective management of net working capital combined with strong liquidity position and owned property portfolio YE20 YE21 $m a Effective working capital management, greater returns on a leaner base Owned property portfolio valued at $451m at Dec-21 vs $356m at Dec-20 Net debt o
Slide 10: Operational Update
For personal use only eqadcels .. qutomotive Operational Update
Slide 11: Unique scale and diversity in strong market
Unique scale and diversity in strong market National footprint & breadth of brand representation capitalising on strong market conditions in Australia & New Zealand stralian New Vehicle Market! Australian monthly new car soles growth vs pep we} mm |e tom tot Ser Mor Jan” Sap ae “ou 68 8 Scale, Brand
Slide 12: For personal use only
For personal use only ‒ ‒ ‒ 12 | EAGERS AUTOMOTIVE
Slide 13: Key drivers of our result
Key drivers of our result Strong market conditions supported by greater productivity and a more efficient cost base ais a | Strong Demand Property Consolidation COVID-19 Impacts o2o ah OF teem Customers Employees Supply Chain & Logistics Financial Impact $25 million reduction in Underlying Operating
Slide 14: Strategic Priorities
For personal use only eqadcels .. qutomotive Strategic Priorities
Slide 15: NEXT100 Strategy
NEXT100 Strategy Providing integrated mobility solutions for the next 100 years DEVELOP GROW OPTIMISE Engage our customers, everywhere Online. At the airport. In shopping malls. In multi- Our flexible owned and lifestyles, circumstances, wants and needs. Autom Redefine our workforce Our workforce: r
Slide 16: Engage our Customers, Everywhere
Engage our Customers, Everywhere Acceleration of our property strategy provides platform to implement omni-channel retail approach Value of Property Acquired $169 million — $111 million Exited Leases Omni-channel Number Exited due to Property Acquisitions 7 8 Retail Number Exited due to Consolidatio
Slide 17: Engage our Customers, Everywhere: AutoMall design
Engage our Customers, Everywhere AutoMall design concept finalised and design discussions commenced with OEM partners ‘AUTOMALL —— = = a . soar Fs!
Slide 18: Engage our Customers, Everywhere: AutoMall West
Engage our Customers, Everywhere AutoMall West scheduled to open late Q1 2022 Refer to the Eagers Automotive website for a visual illustration of the concept design for the AutoMall West facility which is an example of the transformed and consolidated automotive retail formats which underpin our omn
Slide 19: Strategic property acquisitions and redevelopment projects
Engage our Customers, Everywhere Strategic property acquisitions and redevelopment projects Osborne Park WA Maitland NSW - Strategic property acquisitions completed in Jan 2021 - Option to acquire property in 2022 - Consolidate 8 brands across 2 locations - Consolidate 3 additional brands (2 current
Slide 20: How technology enables NEXT100 Strategy
How technology enables NEXT100 Strategy Controlled investment in in-house technology platform driving progress against three pillars of our strategy O Redefine our Deliver optimised Support workforce vehicle finance innovation solutions Integrated technology platform In-house development & partnersh
Slide 21: How technology enables our NEXT100 Strategy
How technology enables our NEXT100 Strategy Eagers Automotive Future Driven Refer to the Eagers Automotive website for a visual demonstration of some of the technology solutions that have been developed and rolled out over the last 12 months which are designed to complement the online component of o
Slide 22: Deliver Optimised Vehicle Finance Solutions
Deliver Optimised Vehicle Finance Solutions Optimising digital capabilities to ensure we win the race to our customers New Vehicle Finance Penetration Financial Services > Record new business volumes ~$2 billion 0B » New & Used Car Finance Penetration increased despite i challenging market condition
Slide 23: Reinvest with Discipline
Reinvest with Discipline Reinvestment strategy focused on disciplined M&A activity across core pillars of Scale, Strategic, Enablers & Consolidation 2021 Acquisitions Overview - Kelly Trotter Motor Group (Cardiff) - Heritage Motor Group (Maitland) - Toowoomba Ford > Complementary brands Consolidatio
Slide 24: easyauto123
For personal use only eqadcels .. qutomotive easyautol123
Slide 25: 2021 Key achievements
2021 Key achievements Strong financial performance despite impacts of COVID-19 lockdowns, improved digital easyautol23 experience driving increase in online engagement = Financial Performance! Key Metrics! Independent Used financial performance post AHG Merger coe, METRICS FY2019 vs FY20212 | FY21 a
Slide 26: How we will win
\e) < we will win = Sourcing wis 7 Buying the right vehicles at the right price - at scale Data & Analytics o o a { 1 Large scale fulfilment centres driving economies of scale li < © ” Your Car, Your Way — let the customer decide @) Customer on Experience — © UL, Underpinned by data and analytics dr
Slide 27: Sourcing & Reconditioning
Sourcing & Reconditioning Buying the right vehicles at the right price, at scale, with cost effective reconditioning solutions ivate Buying Reconditioning - Dedicated private buying teams Dedicated - Proprietary technology & data buying teams driving the Eagers Buyers Portal (>) - Centralised “call-
Slide 28: Outlook
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Slide 29: Outlook
Outlook Disciplined focus on accelerating our Next100 Strategy ea123 Franchised Automotive Growth @ eqgers .. = automotive Finance Penetration + Property Independent Used Strategic M&A Property Ownership Technology 29 agers Automotive FY 2021 Results OD SF Stive
Slide 30: Thank you
ly USE ON =THANK — — na FOr perso 30 Eagers Automotive FY 2021 Re sults @ au Pacuvel
Slide 31: Questions?
For personal use only QUESTIONS?
Slide 32: 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 on
Slide 33: Appendix
ly USE ON — Appendix na FOr perso @ ers “automotive
Slide 34: Statutory to Underlying EBITDAI & PBT - FY 2021
Statutory to Underlying EBITDAI & PBT - FY 2021 $ MILLION FY21 Underlying Continuing Operating! Brand Restructure Compensation AASB16 Lease Standard Revaluation of Properties Business Acquisition & Integration Costs Sale of Assets Dividends received Miscellaneous Total significant items Statutory Co
Slide 35: Statutory to Underlying EBITDAI & PBT - FY 2020
Statutory to Underlying EBITDAI & PBT - FY 2020 Depn& Interest . Underlying Continuing Operating’ 284.2 (39.8) (35.1) 209.4 (69.0) 140.4 Impairment - (80.7) (80.7) 24.2 (56.5) Govt Wage Subsidy Income COVID-19 133.8 133.8 (40.1) 93.6 Brand Restructure Compensation 318 318 (9.5) 22.2 AASB16 Lease Sta
Slide 36: AASB 16 impact
AASB 16 Increase in PBT of $17.1 million during the period Deferred tax asset EBITDAI up Po nn nn nnn nn nn en nnn eee i ‘ Profit/(Loss) before tax Operating cash flows up Financing cash flows down 6 Eagers Automot (15.5%) (15.5%) QO & TS 1. motive
Slide 37: Definitions
Definitions Non-lFRS Financial Information AHG is defined as Automotive Holdings Group Limited CX is defined as customer experience EA is defined as Eagers Automotive Limited (formerly AP Eagers Limited) EBIT is defined as earnings before interest and tax EBITDA is defined as earnings before interes
Slide 38: Definitions
Definitions Non-lFRS Financial Information PBT margin is calculated as profit before tax before significant items as a percentage of revenue PCP is defined as prior corresponding period POS is defined as Point-of-Sale ROS is defined as Return on Sales which is defined as Underlying Operating Profit
Slide 39: For personal use only
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