Slide 1: 2012 Full Year Results Presentation
For personal use only A.P. Eagers 2012 Full Year Results Presentation March 2013 Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 2: 2012 Full Year Highlights
2012 Full Year Highlights For personal use only • Record statutory EPS up 33% • Record underlying EPS up 25% • Record dividend up 25% • Dividend payout up 56% over 2 years • Widespread operational improvements – Focus and Process • Further value realised from the 2010 Adtrans acquisition. • Strategi
Slide 3: National Vehicle Sales
National Vehicle Sales For personal use only Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 4: Affordability
Affordability For personal use only The same applies to luxury cars; BMW 320i now 41.9 weeks compared to 51.1 five years ago. Source: CommSec Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 5: Exchange Rates Driving Sales
Exchange Rates Driving Sales For personal use only Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 6: Best to source from
Best to source from For personal use only Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 7: No real advantage
No real advantage For personal use only Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 8: Significant disadvantage for Australian sourcing/exports
Significant disadvantage for Australian sourcing/exports. For personal use only Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 9: Interest Rate Trend
Interest Rate Trend For personal use only Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 10: Importation of Vehicles into Australia
Importation of Vehicles into Australia For personal use only • Importation prohibited except in very specific circumstances • Full volume scheme by Manufacturers or distributors • Personal imports scheme – migrant/expat Aussies (Min 12mnths Pre ownership and use) • Registered Automotive workshop (RA
Slide 11: Competiveness of Global Vehicle Markets
Competiveness of Global Vehicle Markets For personal use only Country Australia USA Canada UK Number of Vehicle 66 51 48 54 Brands in Market Vehicle Sales 1,008,437 11,772,220 1,583,388 2,293,576 Market Size 15,757 230,828 32,987 42,474 Per Brand Source: VFACTS 2011 and Wards World Motor Vehicle Dat
Slide 12: APE Revenue by State %
APE Revenue by State % For personal use only 18% QLD NT 7% 45% NSW Vic SA 24% 6% Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 13: APE Vehicle Sales
APE Vehicle Sales For personal use only Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 14: 2012 Full Year Highlights - Financial
2012 Full Year Highlights - Financial For personal use only • Record statutory EPS up 33% • Record underlying EPS up 25% • Fully franked final dividend of 13 cents for a record full year dividend of 20 cents also up 56% over 2 years. • EBITDA increased to $115m up 17%. • NPBT increased by 35% to $78
Slide 15: Earnings Per Share
Earnings Per Share For personal use only 38.0 3.0 (1.2) 36.0 (0.8) 0.5 C (0.3) e 34.0 0.5 n 1.5 (0.2) t 32.0 s 3.6 30.0 p e 28.0 r 34.0 26.0 S 27.1 h 24.0 a r 22.0 e 20.0 AHG Investment Dilution Corporate Interest Cars 2011 Other 2012 Property MTAI Investment Nat. Trucks Profit on Sale exp. * * * Di
Slide 16: Financial Summary - Statutory
Financial Summary - Statutory For personal use only $ Million 2012 2011 Change Revenue 2,642.5 2,398.7 Up 10% EBITDA 114.8 98.3 Up 17% EBIT 103.5 83.9 Up 23% PBT 78.7 58.2 Up 35% PAT 55.5 40.3 Up 38% Cash from operating 55.6 64.5 Down14% activities NTA/share 2.06 1.67 Up 23% Gearing excluding 30.0%
Slide 17: Fair Value Adjustments
Fair Value Adjustments For personal use only $ Million 2012 2011 Balance Sheet - Freehold Property +0.7 +3.1 Profit or Loss - Investments 0 0 - Freehold Property +1.1 -3.2 - Intangible Assets -0.8 0 Total +0.3 -3.2 Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 18: Balance Sheet - Summary
Balance Sheet - Summary For personal use only 31/12/12 $m • New vehicle inventory and related CA-CL (excl. held for sale) 47.9 receivables funded by bailment debt. Freehold Property (incl. held for sale) 341.2 • Parts and most used vehicle inventory is balance sheet funded. Other Non Current Tangibl
Slide 19: Financial Trends
Financial Trends For personal use only Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 20: Financial Trends
Financial Trends For personal use only Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 21: Financial Trends
Financial Trends For personal use only Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 22: Franchise Automotive Retail Segment
Franchise Automotive Retail Segment For personal use only FY2012 FY2011 $m $m • Higher sales volumes drove Revenue 2,154 1,984 increased profit without a commensurate increase in net assets Profit before tax 61.3 51.3 employed. Total Assets 522.8 473.3 Total Liabilities 343.9 292.4 Net Assets 178.8
Slide 23: Truck Retailing Segment
Truck Retailing Segment For personal use only FY2011 FY2011 $m $m • Heavy vehicle market improved by Revenue 400.7 323.5 9.9% in 2012 but still lagging long term average demand levels. Profit before tax 8.0 4.1 • New Western Star facility opened in Sydney. Total Assets 133.4 108.8 • Greater focus on
Slide 24: Property Segment
Property Segment For personal use only FY2012 FY2011 $m $m • Lower interest cost in 2012. Rental Income 29.1 29.2 • Additional non-income generating Profit before tax 11.9 12.0 development property acquired in Cardiff NSW. Revaluation 1.9 (0.1) surplus/(deficit) (b/tax) • Overall impact of revaluati
Slide 25: Strategy (Focus: Grow EPS & Pay Larger Dividends)
Strategy (FOCUS: GROW EPS & PAY LARGER DIVIDENDS) For personal use only Exceed stakeholder expectations – Growth by selective customers, employees, acquisition partners (manufacturers), shareholders and community. Development of enhancements and complimentary services Business Optimisation – continu
Slide 26: Strategy: Business Optimisation
Strategy (FOCUS: GROW EPS & PAY LARGER DIVIDENDS) For personal use only • Business Optimisation – Short Term • Continue to improve performance in all business units • Pruning where required • Grow clusters e.g. Cardiff NSW (Completion December 2013) • Jaguar Land Rover Brookvale (April 2013) • Busin
Slide 27: Proposed Cardiff Cluster NSW
Proposed Cardiff Cluster NSW For personal use only Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 28: Proposed Cardiff Cluster NSW
Proposed Cardiff Cluster NSW For personal use only Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 29: Jaguar Land Rover Brookvale
Jaguar Land Rover Brookvale For personal use only Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 30: Strategy (Focus: Grow EPS & Pay Larger Dividends)
Strategy (FOCUS: GROW EPS & PAY LARGER DIVIDENDS) For personal use only Exceed stakeholder expectations – customers, employees, Growth by selective partners (manufacturers), acquisition shareholders and community. Development of enhancements and complimentary services Business Optimisation – continu
Slide 31: Strategy: Enhancement & Complimentary Services
Strategy (FOCUS: GROW EPS & PAY LARGER DIVIDENDS) For personal use only • Development of Enhancement & Complimentary Services – Medium / Long Term • MTAI Insurance (25yrs old, APE 21%) • www.carsguide.com.au (15mths old, APE 7.5%) • www.carzoos.com.au (11mths old APE 100%) • New initiatives second h
Slide 32: Strategy (Focus: Grow EPS & Pay Larger Dividends)
Strategy (FOCUS: GROW EPS & PAY LARGER DIVIDENDS) For personal use only Exceed stakeholder expectations – customers, employees, Growth by selective partners (manufacturers), acquisition shareholders and community. Development of enhancements and complimentary services Business Optimisation – continu
Slide 33: Growth By Selective Acquisition
Growth By Selective Acquisition For personal use only • October 2010 Adtrans cars and trucks (Sydney/Melbourne/Adelaide) • November 2010 Western Star / Man / Dennis Eagle Trucks (Sydney) • March 2011 Eblen Subaru (Adelaide) • September 2011 Daimler Trucks, Freightliner / Fuso / MB Trucks & Vans (Ade
Slide 34: Why Invest in AP Eagers – Secure Balance Sheet
Why Invest in AP Eagers – Secure Balance Sheet For personal use only • Any investment in AP Eagers is underpinned by $341m of prime metro and main road frontage real estate, (commercial rents paid by retail division) • Property risk is limited due to average land and building value ($7.1m x 48 curre
Slide 35: Why Invest in AP Eagers – Retailing
Why Invest in AP Eagers – Retailing For personal use only • Best consumer value equation for 35 years • Extremely competitive however industry structure and legislation has prevented “foreign” supply • Track record of consistent profits, strong growing dividends + 56% last 24 months • The Automotive
Slide 36: A.P. Eagers Company Profile
For personal use only A.P. Eagers COMPANY PROFILE Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 37: AP Eagers Today
AP Eagers Today For personal use only •100 year old automotive retail group founded in 1913 •55 years as a listed public company – dividend paid every year •A.P. Eagers owns more than 70 acres of prime real estate with land and buildings of $341m (Dec 2012) •Represents all 12 of the top 12 selling v
Slide 38: AP Eagers Investments
AP Eagers Investments For personal use only • 20.7% ownership of MTAI Insurance Company (Since 1985) • 7.5% ownership of www.carsguide.com.au (Nov 2011) • 18.6% ownership of Automotive Holdings Group (2012) Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 39: AP Eagers Volume Car Brands
AP Eagers Volume Car Brands For personal use only Represents 12 of the top 12 selling volume car brands in Australia Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 40: AP Eagers Luxury Car Brands
AP Eagers Luxury Car Brands For personal use only Represents 8 of the top 9 selling luxury car brands in Australia Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 41: AP Eagers Truck and Bus Brands
AP Eagers Truck and Bus Brands For personal use only Representing 11 truck and bus brands Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.
Slide 42: AP Eagers $2.6 billion revenue
AP Eagers For personal use only AP Eagers $2.6 billion revenue $0.15bn (6%) $1.13bn (44%) $0.0bn $0.53bn (20%) $0.62bn (24%) $0.16 BN (6%) $0.0 BN Monday, March 04, 2013 © 2013 AP Eagers Limited. All Rights Reserved.