Eagers Automotive Limited · ASX:APE
Eagers Automotive — Investor Presentation (November 2020)
31 slides from Eagers Automotive's investor presentation, Nov 23, 2020
Slide 1: Independent Pre-Owned Car Strategy November 2020
eqdels .. automotive INDEPENDENT PRE-OWNED CAR STRATEGY NOVEMBER 2020
Slide 2: Agenda
Agenda ¢ Simplifying for success e Why used cars ¢ Our brand ¢ Economic drivers ¢ Our results to date * Accelerators and enablers ¢ Questions and answers EAGERS AUTOMOTIVE |NDEPENDE 2RE-OWNED CAR STRATEG' e@ _ automotive
Slide 3: Simplifying for success
Martin Ward Simplifying for success 2015-2019 2021 onwards - > EAGERS AHG»> QD EBFrdtive Franchised Auto Y ¥Y ¥v Franchised Trucks v v v Independent Used Cars @) carzoos easyauto123 easyauto123 Carkine Refrigerated Logistics x EEE. pall Harrig G2 x Other Distribution / Logistics x Kia om x Property
Slide 4: Simplifying for success
Martin Ward Simplifying for success 2015-2019 2021 onwards EAcERS a> Wo Oam. —" Independent Used Cars @®carz00s easyauto123 & easyauto123 Zarline EAGERS AUTOMOTIVE |NDI
Slide 5: Automotive retail valuations
Automotive retail valuations Market cap figures as of 18-11-20 Used Cars US Market $250 ° AutoNation. $200 a a g a 2 2 wy Q = 4 Wi 4 < = a MARKET SHARE MARKET CAP MARKET SHARE 182% USDS$15.23n 2.03% 131% USD$38.51bn 43% STRATEGY CE) cocers . ~ automotive EAGERS AUTOMOTIVE |NDOEPENDENT PRE-OWN
Slide 6: Why used cars? Market size
Why used cars? MARKET SIZE New Cars US market New Cars Australia Used Cars US market Used Cars Australia ‘Source: US bureau of economic anal jutomotive-industry-2017, VFACTS Source: mtaa.com.au/directions-in-australias-automotive-industry-2017, VFACTS. EAGERS AU automot
Slide 7: Why used cars? Opportunity
Why used cars? OPPORTUNITY Category sh Killers Brand Benefit Experience EAGERS AUTOMOTIVE | y RE-OWNI C8 ¢ —) automotive
Slide 8: Why used cars? Control
Why used cars? EAGERS AUTOMOTIVE CONTROL People Ae Property x v Product x v Promotion x Vv Profit Margin x v q automotive
Slide 9: Why used cars? Barriers to entry
Why used cars? BARRIERS TO ENTRY EAGERS AUTOMOTIVE |NDI NDEN RE-OWNED CAR STRATEG* 2 ) automotive
Slide 10: Why used cars? Barriers to entry
Why used cars? BARRIERS TO ENTRY Roy Morgan Image of Professions Survey Nurses School Teachers Police Accountants Bank Managers Federal MPs Real Estate Agents © 1% of Australians aged 14+ rating the profession Car Salesman () a ‘very high ‘or ‘high’ for ethics and honesty 0 0 2 3 40 5 4 7 80 0 00 EA
Slide 11: Evolution of the used car category
Evolution of the used car category ONLINE eo ea ¢ : carlypso, Ooeepi easyauto123 Carvana Carlypso ©) TRADITIONAL easyauto123 Beepi + Fixed premises + Foxed premises And/or And/or + Fullomni-channel «Online & denier = Launched P2P + Online P2P whaggeonpres SPalony reso cede ehlopaageed ios. Sle Hoyac
Slide 12: easyauto123 Our mission
easyauto123 Our mission To change the used car buying experience forever.
Slide 13: The easyauto123 brand customer focus
1 Best experience « Nationally located one-stop-shop retail superstores. e Customer-friendly trading hours. e 7-day money-back guarantee. Tay The easyauto123 brand is focused on providing customers with... 2 Biggest range © The largest selection of quality verified used cars and budget cars. Your ca
Slide 14: easyauto123 Background and history
easyauto123 Background and history “1 PERTH, WA 3 PERTH, WA 5 BRISBANE, Qld Joondalup Dec 2015 Canning Vale May 2017 Hendra Feb 2018 FAR CEMA VOPR CO RE EERE ET Obs Preys 203 2018 2049 20.200 2 pe, NSW 4 ence: Vic Seven Hills Apr 2017 Brooklyn Aug 2017 ue coma | xan
Slide 15: Key success factors
Key success factors The easyautol23... 4 Gh Sourcing 2) Reconditioning f 3) / Customer experience @ Be- B Net profit per vehicle EAGERS AUTOMOTIVE |NDEPENDE RE-OWNED CAR STRATEG* é : automotive
Slide 16: Net profit per vehicle drivers
PY fa Lh, Metal + Finance Property + People + Value-add products + Marketing + Inventory + Other
Slide 17: For personal use only
* For personal use only *“Net operating profit” represents divisional net profit extracted from management accounts.
Slide 18: For personal use only
* For personal use only *“Net operating profit” represents divisional net profit extracted from management accounts.
Slide 19: easyauto123 results: Volume and gross margin growth
easyauto123 results Volume and gross margin (S) growth Average Volume fer>ztIoor>HUzZMaeer>~zZIOOrF>OUzZmeeH~ZIHobr qdaocsea¥v¥vowudcuacatsrFsawvowgudqaceas5uy SLEHMEVMOZOHXSACEAMAMOZAHLS a ERNANO No. \/19 = OC1'20 average volume per steve, NoV'R8 = Cet'P. Excludes Brookiyn during Covid=I® closure A
Slide 20: easyauto123 results: Expense reduction
easyauto123 results Expense reduction ” vo fe) 3 c 3 a = fe) 2 L Rent cost evid-9 trading impacts, 20 avetage Feorpian cost per car sold vs, Nov'IB ~ Oct’ Nov"? Oct “9 closure (Aug’?0- Oct'70) 18 - Oct'¥. Excludes Brookiyn during Covic *Nov'I8- Oct'20 average rent percor sold va, Nov" Marketing cost
Slide 21: easyauto123 results: Productivity growth
easyauto123 results Productivity growth Volume per sales team member increased by 44% YOY Average volume per sales team member *Nov'19 - Oct'20 average volume per Sales Tear Member vs. Nov'18 - Oct''9. Excludes Brooklyn during Covid-19 closure (Aug’20 - Oct'20)
Slide 22: Footprint growth
easyauto123 growth accelerators/enablers Footprint growth Fegehesrernemre: 1 PERTH, WA 3 PERTH, WA 5 BRISBANE, Qld 7 NEW ZEALAND Joondalup Dec 2015 Canning Vale May 2017 Hendra Feb 2018 Manukau Nov 2020 Cheque] tenQen.enn nui ceili pit 015 2016 204 2018 2019 2020 [ | 2 SYDNEY, NSW 4 MELBOURNE, Vic 6
Slide 23: Omni-channel investment
easyauto123 growth accelerators/enablers Omni-channel investment [] | oe] New proprietary website Development of transactable e-commerce experience. EAGERS AUTOMOTIVE |ND 360 co 360 degree imaging Market-leading technology providing full online transparency to the customer. Analytics and optimisatio
Slide 24: Omni-channel results
easyauto123 growth accelerators/enablers Omni-channel results Website lead volume Website attributed deliveries Website click 'n’ collect 18% 16% 14% 12% 10% 8% ‘Source: Eagers Automotive Ltd EAGERS AUTOMOTIVE
Slide 25: The unique trifecta
easyauto123 The unique trifecta) a ap j Franchised Automotive + easyauto123 EAGERS AUTOMOTIVE INDEPENDENT PRE-OWNED CAR STRATEGY <2) oti automotive
Slide 26: For personal use only
Metal + Finance Property + People + Value-add products + Marketing + Inventory + Other
Slide 27: Next: optimise and develop
Next 100 OPTIMISE 4 DEVELOP Engage our customers, everywhere Online. At the airport. In shopping malls. In multi-brand service hubs. At home, At work. Our flexible owned and leased property portfolio allows us to continue to evolve to. fit our customers’ lifestyles, circumstances, wants and needs. E
Slide 28: For personal use only
QEA EAGERS AUTOMOTIVE INDEPENDE STRATEG
Slide 29: Non-IFRS financial measures
For personal use only EA is Net Operating Profit. Management uses these and other measures to evaluate the underlying performance of EA. Unless otherwise specified, non-IFRS financial measures have not been subject to audit or review in accordance with Australian Accounting Standards. referred to as
Slide 30: Appendix
Appendix EAGERS AUTOMOTIVE |NDE! EN RE AR EG 2 automotive
Slide 31: Company overview
Company overview « Australia’s leading automotive retail group. « Represents the Top 19 brands in Australia based on volumes for the 12 months ended 31 Dec 2019. * 108 year old company. + 30 car brands and 12 truck brands represented + Over 8,000 employees. across more than 250 new car and truck dea
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