Eagers Automotive Limited · ASX:APE
Eagers Automotive — H1 2018 Earnings Presentation
28 slides from Eagers Automotive's earnings presentation, Aug 22, 2018
Slide 1: 2018 Half Year Results Presentation
2018 Half Year Results August 2018 Presentation
Slide 2: 2018 Half Year Highlights
2018 Half Year Highlights • Record statutory profit before tax $69.5m, up 2.1% on 1H17 • Record net profit after tax $53.7m, up 8.8% on 1H17 • Record statutory (basic) EPS of 27.7 cents, up 9.1% on 1H17 • Record fully franked interim dividend of 14.0 cents, up 3.7% on 1H17 • Record results from VIC
Slide 3: Australian New Vehicle Sales – June YTD 2018
Australian New Vehicle Sales – June YTD 2018 Total Australian Market Share by State (VFACTS) ACT • New vehicle market up 1.0% 2% WA 8% • NSW down 2.7%; NT down 0.4% NSW • WA up 4.1%; TAS up 4.0%; VIC up 3.4%; QLD up 2.7% 32% VIC 29% • New vehicle market down 7.8% in July 18 with TAS the only state w
Slide 4: APE Vehicle Sales 1H 2018
APE Vehicle Sales 1H 2018 APE New Vehicle Sales by State APE Used Retail Vehicle Sales by State Total 31,397 + 0.9% (5.2% of National Market) Total 11,814 -4.1% (est. 1.0% of National Market) 4% 3% 5% 10% 13% 2% 6% 21% Cars - NSW Retail Cars - NSW 5% Cars - NT Retail Cars - NT Cars - QLD Retail Cars
Slide 5: 2018 Half Year Highlights - Financial
2018 Half Year Highlights - Financial • Record statutory (basic) EPS of 27.7 cents, up 9.1% on 1H17 • Record fully franked interim dividend of 14.0 cents, up 3.7% on 1H17 • EBITDA $90.3m, up 1.6% on 1H17 • Underlying(1) net profit before tax increased by 1.4% to $69.2 million • Cash flow from operat
Slide 6: Financial Summary
Financial Summary $ Million 1H18 1H17 Change Revenue 2,097.5 2,033.4 Up 3% EBITDA 90.3 88.8 Up 2% EBIT 82.6 80.5 Up 3% PBT 69.5 68.1 Up 2% PAT 53.7 49.3 Up 9% Cash from operating activities 86.3 100.3 Down -14% NTA/share 2.26 2.30 Down -2% Net gearing excluding bailment debt 22.4% 24.6% 2018 Half Ye
Slide 7: Balance Sheet - Summary
Balance Sheet - Summary 1H18 ($M) • New vehicle inventory funded by bailment debt CA - CL 69.6 • Parts and most used vehicle inventory is Freehold Property 298.5 balance sheet funded Other Non Current Tangible Assets 87.4 • Increased investment in AHG to 25.8% shareholding (YE17: 23.8%), valued at I
Slide 8: Earnings Per Share
Earnings Per Share EPS Bridge 2018 Half Year Results Presentation 8
Slide 9: Financial Trends – Underlying PBT
Financial Trends – Underlying PBT Financial Trends: Underlying PBT 100.0 Operating Earnings (EBITDA) * PBT Underlying ** 88.5 90.0 84.7 85.4 82.9 80.8 80.0 78.1 76.3 72.5 70.1 66.6 70.9 69.2 68.0 68.3 70.0 61.1 61.9 59.0 57.8 60.1 58.5 $ million 60.0 54.2 52.1 50.0 44.2 45.3 46.1 40.6 41.2 42.0 38.2
Slide 10: Financial Trends
Financial Trends Includes AHG dividend from 2012 Operating Earnings is EBITDA Underlying excluding profit/loss on sale of assets and from associates. It includes AHG dividend. 2018 Half Year Results Presentation 10
Slide 11: Financial Trends
Financial Trends 2018 Half Year Results Presentation 11
Slide 12: Financial Trends
Financial Trends 2018 Half Year Results Presentation 12
Slide 13: Segment Results
Segment Results Car retailing Segment Contributions Record results from VIC and TAS operations, 1H17 1H18 80 QLD performed well, challenging market conditions impacted NSW and SA results. 69.5 70 68.1 Strong trading in parts and service businesses 60 Truck retailing 50 49.6 45.3 Record results refle
Slide 14: Outlook
Outlook • Implement new Risk Based Pricing (RBP) finance models from our multiple financiers • Through superior process, procedures and training excel in RBP penetration • Complete portfolio adjustments related to underperforming operations • Continue to redevelop and reorganise our inner City Brisb
Slide 15: Industry Flex Commission to Risk Based Pricing
Industry Flex Commission to Risk Based Pricing – Starting Nov 2018 2018 Half Year Results Presentation 15
Slide 16: The Result – UK and USA
The Result – UK and USA 2018 Half Year Results Presentation 16
Slide 17: BNE Auto Mall, Brisbane Airport
BNE Auto Mall, Brisbane Airport 2018 Half Year Results Presentation 17
Slide 18: Flexible Land and Building Portfolio
Flexible Land and Building Portfolio • 39 Properties (QLD / NSW / VIC / SA) owned $298m (35%) • 174 Leased Properties nationwide approx. value $549m (65%) • Average lease expiry 3 years 6 months • (Adjusted to reflect $ value) Average lease expiry 3 years 6 months • Automotive retailing will adapt o
Slide 19: AHG Investment
AHG Investment • 85,703,588 shares (25.8%) valued at $244.3m at $2.85 (30/06/18) • Unrealised revaluation loss of $65.7m in investment segment $2.85 (Jun18) vs $3.64 (Dec17) • 6.7m new shares acquired in 1H18 costing $22.5m plus 1.4m new shares acquired commencing 2 July 2018 costing $3.7m • 2018 Fu
Slide 20: 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
Slide 21: Appendix
Appendix 2018 Half Year Results Presentation 21
Slide 22: A.P. Eagers Company Profile
A.P. Eagers COMPANY PROFILE 2018 Half Year Results Presentation 22
Slide 23: AP Eagers Today (June 2018)
AP Eagers Today (June 2018) • 105 year old automotive retail group founded in 1913 • 61 years as a listed public company – dividend paid every year • A.P. Eagers owns $298m of prime real estate • Represents all 20 of the top 20 selling vehicle brands in Australia and 32 car brands in total along wit
Slide 24: AP Eagers Volume Car Brands
AP Eagers Volume Car Brands Represents all 10 of the top 10 selling volume car brands in Australia 2018 Half Year Results Presentation 24
Slide 25: AP Eagers Luxury Car Brands
AP Eagers Luxury* Car Brands Represents 9 of the top 10 selling luxury car brands in Australia * Luxury is defined as luxury vehicle selling more than 500 units annually (V Facts) 2018 Half Year Results Presentation 25
Slide 26: AP Eagers Truck and Bus Brands
AP Eagers Truck and Bus Brands Representing 11 truck and bus brands 2018 Half Year Results Presentation 26
Slide 27: Revenue by State / % of group Revenue
Revenue by State / % of group Revenue AP Eagers $2.10 billion revenue for HY $0.08bn (4%) $0.92bn (44%) $0.0bn $0.36bn (16%) $0.39bn (19%) $0.25bn (12%) $0.1bn (5%) 2018 Half Year Results Presentation 27
Slide 28: Income Opportunity Franchised Dealership
Income Opportunity Franchised Dealership NEW CAR SALES: + Accessories + Finance + Insurance + Car Care + Trade-In USED CAR SALES: + Accessories + Finance + Insurance + Car Care + Trade-In VEHICLE SERVICE: - Value add products i.e. Tyres, wheel alignments, batteries, wiper blades. VEHICLE REPAIR: - W