Autosports Group Ltd · ASX:ASG
Autosports — FY2017 Earnings Presentation
35 slides from Autosports's earnings presentation, Aug 29, 2017
Slide 1: ASG Full Year Investor Presentation August 2017
For personal use only ASG Full Year Investor Presentation August 2017 1
Slide 2: 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 in 2006 group in 2007 21 years of motor vehicle industry 21 years of motor vehicle industry experience in Aus
Slide 3: Agenda
AGENDA For personal use only FY 2017 HIGHLIGHTS FY 2017 GROUP PERFORMANCE OVERVIEW FY 2017 STRATEGIC UPDATE BMW MELBOURNE ACQUISITION & FY 2018 OUTLOOK Q & A ADDITIONAL INFORMATION 3
Slide 4: FY 2017 Highlights
For personal use only FY 2017 HIGHLIGHTS FY 2017 GROUP PERFORMANCE OVERVIEW FY 2017 STRATEGIC UPDATE BMW MELBOURNE ACQUISITION & FY 2018 OUTLOOK Q & A ADDITIONAL INFORMATION 4
Slide 5: FY17 Highlights
FY17 HIGHLIGHTS Statutory NPBT for the period 18 November 2016 to For personal use only 30 June 2017 of $18.4M exceeding prospectus of $13.3M by 38.35% Pro forma exceeded prospectus forecast at NPBT, EBIT, EBITDA, NPAT & NPATA Pro forma NPBT up 45% on FY16 A first dividend of 4.6c per share
Slide 6: FY 2017 Group Performance Overview
For personal use only FY 2017 HIGHLIGHTS FY 2017 GROUP PERFORMANCE OVERVIEW FY 2017 STRATEGIC UPDATE BMW MELBOURNE ACQUISITION & FY 2018 OUTLOOK Q & A ADDITIONAL INFORMATION 6
Slide 7: FY17 Pro Forma Financial Highlights
FY17 PRO FORMA FINANCIAL HIGHLIGHTS ASG, including Doncaster BMW*, produced revenue of $1.446B up 14.2% on FY16 For personal use only Organic Growth contributed 57.8% of ASG’s revenue growth Gross margins grew from 14.0% in FY16 to 14.9% ASG, including Doncaster BMW, achieved EBITDA of $55.1
Slide 8: Statutory Financials: Nov to Jun
STATUTORY FINANCIALS: 18 NOV 16 TO 30 JUN 17 Statutory Highlights Statutory History For personal use only Historical Prospectus Actuals Aggregated accounts (statutory) Forecast FY17 Statutory result exceeds forecast $m FY14 FY15 FY16 FY17 FY17 Total Revenue 461.6 824.3 1032.6 901.5 906.1 Include
Slide 9: 2017 Proforma Result
2017 PROFORMA RESULT ASG Consolidated - YTD Pro Forma Income Statement BASIS OF PREPARATION $'000 Prospectus For personal use only Actuals Volvo Cars Brighton which settled on 12 September 2016 Forecast FY17 and Willims 5 dealerships that settled on 18 November 2016 have been included in the pro f
Slide 10: Pro Forma Financial Trends – Revenue & EBITDA
PRO FORMA FINANCIAL TRENDS – REVENUE & EBITDA For personal use only REVENUE Revenue growth of 14.2% in FY17 2014-2017FY revenue growth CAGR of 30.5% Seasonality in line with prospectus disclosures Doncaster BMW acquisition adds $51.4M in revenue EBITDA 60.0 EBITDA BMW Don 2H 17 2.4 50.0 1H 1
Slide 11: Pro Forma Financial Trends - Margin
PRO FORMA FINANCIAL TRENDS - MARGIN * For personal use only Margin Growth Drivers Greenfields sites continue to mature; 11 ASG dealerships are still under 5 years old FY16 margins impacted by 6 greenfields sites under 24 months since establishment A full year contribution from Pat Cole’s Autob
Slide 12: Key Performance Indicators
KEY PERFORMANCE INDICATORS New Vehicle units up 8.3% and Used Vehicle units up 9.8% in Op Ex affected by acquisitions For personal use only revenue up 14.8% volume and 8.7% in revenue Scale will drive opportunities Excluding Doncaster BMW, new car Pro form Finance and Insurance volume fe
Slide 13: Revenue Bridge
REVENUE BRIDGE FY17 Revenue Growth on FY16 For personal use only ASG’S Growth Drivers Organic Growth continues to be the primary driver of growth at ASG contributing 57.8% of the Group’s revenue growth despite the $51.4M contribution of Doncaster BMW Organic Growth has been driven by maturing gr
Slide 14: Strong Balance Sheet
STRONG BALANCE SHEET BASIS OF PREPARATION For personal use only Pro forma balance sheet and key ratios include all businesses 12 month trading profit Includes Doncaster BMW MAJOR MOVEMENTS SINCE 31 DEC 2016 Additional $18.5m capital loans drawn in April 17 to fund settlement of TIMG (Doncaster
Slide 15: Pro Forma Cash Flow
PRO FORMA CASH FLOW ASG typically receives payment for vehicles upon delivery (either from the customer or consumer finance company) Cash typically remitted to floor plan financier within 2 days of delivery of motor vehicle For personal use only Use of floor plan finance minimises investment i
Slide 16: FY 2017 Strategic Update
For personal use only FY 2017 HIGHLIGHTS FY 2017 GROUP PERFORMANCE OVERVIEW FY 2017 STRATEGIC UPDATE BMW MELBOURNE ACQUISITION & FY 2018 OUTLOOK Q & A ADDITIONAL INFORMATION 16
Slide 17: FY 2017 Strategic Update
FY 2017 STRATEGIC UPDATE What we said? For personal use only TOP 10 PRESTIGE AND LUXURY BRANDS IN AUSTRALIA (2016, by volume of vehicles) Prestige & Luxury brands Major cities East Coast Mazda Growth will be driven organically Greenfields sites will supplement organic Volkswagen growth Subur
Slide 18: Diversified Revenue Model
DIVERSIFIED REVENUE MODEL Multiple Income Streams give ASG, strength, flexibility and resilience. They give ASG multiple levers to drive sustainable growth "BACK-END" For personal use only "FRONT-END" New car sales Service Finance & Aftermarket (including Parts Insurance collision repair) Used car s
Slide 19: New Vehicle Market Update
NEW VEHICLE MARKET UPDATE Total Market remains at record levels 0.2% up at June After a slow start to the calendar year on Vfacts, record months in 2017 YTD For personal use only May, June and July have restored the market to record growth Largest markets NSW, QLD & VIC comprise 83% of the J
Slide 20: Used Cars – Growth with Opportunity
USED CARS – GROWTH WITH OPPORTUNITY The FCAI estimate the used car retail market at 2.2m vehicles ASG currently operates Used Car Retail hubs in Sydney and Brisbane For personal use only which is double the size of the new car market ASG’s used car retail hub strategy continues to perform Hu
Slide 21: Aftersales | Backend Growth - Improving the Mix
AFTERSALES|BACKEND GROWTH -IMPROVING THE MIX Growth in Service, Parts & Collision Repair continues to drive growth for ASG For personal use only ASG’s business model benefits from inbuilt growth in back-end revenue Service & Collision Repair from a maturing service, parts and panel customer base 2
Slide 22: BMW Melbourne Acquisition & FY 2018 Outlook
For personal use only FY 2017 HIGHLIGHTS FY 2017 GROUP PERFORMANCE OVERVIEW FY 2017 STRATEGIC UPDATE BMW MELBOURNE ACQUISITION & FY 2018 OUTLOOK Q & A ADDITIONAL INFORMATION 22
Slide 23: BMW Melbourne Acquisition
BMW MELBOURNE ACQUISITION ASG STRATEGY FIT SCALE Luxury Brands Revenue approximately $238M For personal use only Melbourne Staff 197 BMW, Mini & Panel Victorian market is Australia’s fastest growing market with 4.4% growth YTD Long term staff BMW Melbourne is not expected to be accre
Slide 24: BMW Melbourne Acquisition: The Deal
BMW MELBOURNE ACQUISITION $22M for the business, IP and For personal use only THE DEAL goodwill Plant & Equipment at valuation Stock at valuation FUNDING Cash reserves and debt facility from BMW Finance GEARING Consolidated ASG corporate debt remains well under 1 x EBITDA leaving good capa
Slide 25: Growth with Opportunity
GROWTH WITH OPPORTUNITY For personal use only GROWTH WITH OPPORTUNITY 12 ASG now operates 34 (not including acquisitions and 2 21 greenfields sites in second half FY2018) of 111 approximately 540 new car prestige or luxury Porsche 3 3 2 No ASG Dealership dealerships on the East Coast of Australia 6
Slide 26: 2018 Focus Areas
2018 FOCUS AREAS Organic Growth & Operations Improvements For personal use only Delivering further EPS growth from acquisitions Deliver improvements in synergies and logistics in our Victorian division Continue to drive organic growth in like-for-like sites by expanding Aftersales capacity, pr
Slide 27: Results Summary and Outlook
RESULTS SUMMARY 2017FY Recap For personal use only Exceeded pro forma prospectus forecast at NPBT, EBIT, EBITDA, NPAT & NPATA Completed the EPS accretive acquisition of Doncaster BMW adding the brands of BMW, Mini, Alpina and BMW Motorcycles to the ASG portfolio Announced the complementary acq
Slide 28: Q & A
For personal use only FY 2017 HIGHLIGHTS FY 2017 GROUP PERFORMANCE OVERVIEW FY 2017 STRATEGIC UPDATE BMW MELBOURNE ACQUISITION & FY 2018 OUTLOOK Q & A ADDITIONAL INFORMATION 28
Slide 29: Additional Information
For personal use only FY 2017 HIGHLIGHTS FY 2017 GROUP PERFORMANCE OVERVIEW FY 2017 STRATEGIC UPDATE BMW MELBOURNE ACQUISITION & FY 2018 OUTLOOK Q & A ADDITIONAL INFORMATION 29
Slide 30: ASG Brand Portfolio
ASG BRAND PORTFOLIO LUXURY (22) PRESTIGE(7) USED CAR COLLISION ACQUISITIONS DEALERSHIPS REPAIR GREENFIELDS For personal use only (2) FACILITIES (3) FY18 (6) (4) (1) * (1) (4) (1) * (1) (2) (1) (1) * (1) Bodyshop (2) (1) * (1) (1) (1) (1) (2) (1) (1) (2) * Subject to settlement 30
Slide 31: Capital Structure
CAPITAL STRUCTURE For personal use only Pro Forma 30 June 2017 Capital Structure Facility $m Capital Loans 36.5 ASG’s strong cash generation Other Loans & Hire Purchase facilities 2.8 Cash (14.9) results in a capital light business Pro forma Net debt / (cash) (Excluding floorplan finance) 24.4 Net
Slide 32: Statutory to Pro Forma Reconciliation
STATUTORY TO PRO FORMA RECONCILATION For personal use only 32
Slide 33: 2017 Proforma Result Detail
2017 PROFORMA RESULT DETAIL ASG Consolidated - YTD Pro forma Income Statement $'000 Prospectus ACTUALS BASIS OF PREPARATION Forecast For personal use only FY17 Volvo Cars Brighton which settled on 12 September New Vehicles 879,601 840,693 2016 and Willims 5 dealerships that settled on 18 Used Vehi
Slide 34: BMW Melbourne Announcement
BMW MELBOURNE ANNOUNCEMENT For personal use only ASX ANNOUNCEMENT | ASG acquisition of BMW Melbourne ASG Melbourne Pty Ltd, a wholly owned subsidiary of Autosports Group Limited (ASG), has entered into an agreement with BMW Melbourne Pty Limited to purchase the businesses operating as BMW Melbourne,
Slide 35: 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