Slide 1: A.P. Eagers 2014 First Half Results
For personal use only A.P. Eagers 2014 First Half Results September 2014 Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 2: 2014 Half Year Highlights
2014 Half Year Highlights For personal use only • Record PBT $46.0m up 9.3% • Record NPAT $33.3m up 6.0% • Record Basic EPS 18.7 cents up 2.7% • Record Full Franked interim dividend of 9.0 cents up 12.5% • Core Car Retailing segment improved • Acquisition of Ian Boettcher Motors ($150m T/O) (complet
Slide 3: Status of Industry New Vehicle Sales YTD June 2014
Status of Industry New Vehicle Sales YTD June 2014 For personal use only • Total sales June YTD down 2.4% • Private sales June YTD up 2.2% • Heavy commercial sales June YTD down 5.3% • Better balance between supply and demand compared to PCP • Retail Industry evolving following GFC, manufacturing ex
Slide 4: Interest Rate Trend
Interest Rate Trend For personal use only Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 5: Earnings Per Share
Earnings Per Share For personal use only Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 6: Financial Summary
Financial Summary For personal use only $ Million 1H 2014 1H 2013 Change Revenue 1375.8 1,349.4 Up 2% EBITDA 62.7 60.6 Up 3% EBIT 56.9 54.3 Up 5% PBT 46.0 42.0 Up 9% PAT 33.3 31.4 Up 6% Cash from operating 41.8 55.3(1) Down 24% activities NTA/share 2.35 2.15 Up 9% Net gearing excluding 26.0% 27.6% D
Slide 7: Balance Sheet - Summary
Balance Sheet - Summary For personal use only 30/06/14 • New vehicle inventory and $m receivables funded by CA-CL (excl. held for sale) 77.5 bailment debt. • Parts and some used vehicle Freehold Property (incl. held for 336.1 sale) inventory is balance sheet Other Non Current 249.5 funded. Tangible
Slide 8: Financial Trends – PBT Underlying
Financial Trends – PBT Underlying For personal use only Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 9: Financial Trends
Financial Trends For personal use only Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 10: Financial Trends
Financial Trends For personal use only Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 11: Financial Trends
Financial Trends For personal use only Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 12: Segment Results
Segment Results For personal use only Car Retailing Impressive Used car performance supported by F&I income growth. New, Parts and Service, Stable. RONA (after tax) 23.7% Truck Retailing Used performance weak reflecting poor market conditions. Good parts and service performance. RONA (after tax) 15.
Slide 13: Property Value $336m (2014) $334m (2013)
Property Value $336m (2014) $334m (2013) For personal use only Unconditional Changes • 2 Sturt Rd, Cardiff, NSW (sale and leaseback) $12.1m Sept ’14 • 934 Hunter St, Newcastle, NSW (sale and leaseback) $8.1m Sept ’14 • 80 McLachlan St, Fortitude Valley, QLD (put/call delayed settlement) $22.2m March
Slide 14: Brisbane CBD, QLD
Brisbane CBD, QLD For personal use only • Brisbane CBD (yellow) and planned development zones (blue) Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 15: Fortitude Valley, QLD
Fortitude Valley, QLD For personal use only • Close up of Fortitude Valley properties within development zone – previously sold (green) • Unconditionally contracted with settlement deferred until March 2016 (black striped) Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 16: For personal use only
For personal use only Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 17: For personal use only
For personal use only Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 18: For personal use only
For personal use only Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 19: For personal use only
For personal use only Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 20: For personal use only
For personal use only Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 21: Brisbane CBD, QLD
Brisbane CBD, QLD For personal use only • Brisbane CBD (yellow) and planned development zones (blue) Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 22: Woolloongabba, QLD
Woolloongabba, QLD For personal use only • Woolloongabba Centre Neighbourhood Plan (blue) Overlaid with AP Eagers Properties (red) Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 23: Woolloongabba, QLD
Woolloongabba, QLD For personal use only • Close up of Woolloongabba core (gold) overlaid with AP Eagers Properties (red) • Contracted (black striped but conditional on DA/BA’s. Due date for satisfaction of Conditions is September 2014 Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights
Slide 24: Newstead, QLD
Newstead, QLD For personal use only • Newstead neighbourhood plan (blue) overlaid AP Eagers properties (red) Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 25: Newstead, QLD
Newstead, QLD For personal use only • Close up of core Newstead properties within development zone • Black stripes – contracted but conditional on DA’s/BA’s (2015) Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 26: 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 27: Growth Timeline
Growth Timeline For personal use only Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 28: Growth Timeline
Growth Timeline For personal use only Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 29: Ian Boettchers Motors (Ipswich, QLD) Acquisition
Ian Boettchers Motors (Ipswich, QLD) Acquisition For personal use only • Announced 20 March 2014 completed 1 July 2014 • Annual Turnover $150m • IBM represents Mazda, Nissan, Volkswagen, Suzuki and Proton • Sells 4,400 new and used vehicles per annum • Goodwill and net assets cost $14m • Funded via
Slide 30: For personal use only
For personal use only Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 31: For personal use only
For personal use only Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 32: Craig Black Group (South West & Central QLD) Acquisition
Craig Black Group (South West & Central QLD) Acquisition For personal use only • Announced 6 may 2014, expected completion October 2014 • Annual turnover $245m • The acquisition includes Black Toyota in Dalby, Roma, Warwick, Oakey and Chinchilla and Central Highlands Toyota in Emerald, Longreach and
Slide 33: For personal use only
For personal use only Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 34: For personal use only
For personal use only Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 35: For personal use only
For personal use only Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 36: For personal use only
For personal use only Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 37: AHE Investment
AHE Investment For personal use only • 51,018,439 shares held @ 31/12/2013 • 57,273,311 shares held @ 30/06/2014 18.7% • 60,904,350 shares held @ 07/08/2014 19.9% • Increased investment during 2014 $37.9m • AP Eagers average cost per share $3.05 • 2014 Fully Franked after tax dividends (Mar/Oct 2014
Slide 38: The Next 12-24 Months
The Next 12-24 Months For personal use only • Complete Blacks transaction and integrate • Continue integration of Ian Boettcher Motors • Complete Land Rover, Jaguar and Volvo move from Fortitude Valley to Newstead • Improve truck retailing division • Continue Carzoos expansion within APE • Refine pl
Slide 39: A.P. Eagers Company Profile
For personal use only A.P. Eagers COMPANY PROFILE Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 40: AP Eagers Today (June 2014)
AP Eagers Today (June 2014) For personal use only • 101 year old automotive retail group founded in 1913 • 57 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 $336m (June 2014) • Represents all 12 of the
Slide 41: AP Eagers Investments
AP Eagers Investments For personal use only • 20.7% ownership of MTAI Insurance Company (Since 1985) [Sold August 2014] • 7.5% ownership of www.carsguide.com.au (Nov 2011) • 19.9% ownership of Automotive Holdings Group (July 2012) Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reser
Slide 42: 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, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 43: 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, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 44: AP Eagers Truck and Bus Brands
AP Eagers Truck and Bus Brands For personal use only Representing 11 truck and bus brands Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.
Slide 45: Revenue by State / % of Group Revenue
Revenue by State / % of group Revenue (2014 Annualised) For personal use only AP Eagers $2.7 billion revenue $0.15bn (5%) $1.17bn (43%) $0.0bn $0.65bn (24%) $0.61bn (22%) $0.16 BN (6%) $0.0 BN Monday, September 01, 2014 © 2014 AP Eagers Limited. All Rights Reserved.