Slide 1: 2016 Full Year Results Presentation
For personal use only 2016 Full Year Results February 2017 Presentation 2016 Full Year Results Presentation 22/02/2017 1
Slide 2: 2016 Full Year Highlights
2016 Full Year Highlights For personal use only • Record statutory profit before tax $141.4m, up 17% • Record net profit after tax $105.5m, up 21% • Record statutory (basic) EPS of 55.4 cents, up 16% • Record full year dividend of 35 cents, up 9% • Record results from core Car Retailing segment • Si
Slide 3: National Vehicle Sales
National Vehicle Sales For personal use only 2016 Full Year Results Presentation 22/02/2017 3 3
Slide 4: Australian New Vehicle Sales – 2016
Australian New Vehicle Sales – 2016 For personal use only • New vehicle market up 2.0% YoY • 2nd record year in a row • WA down 5.6%; QLD down 1.1% • NSW up 4.4%; SA up 3.9%; VIC up 3.4% • Continued strong growth in luxury brands • Some imbalance between supply and demand 2016 Full Year Results Pres
Slide 5: Volume and Luxury Brand Market Share – 2016
Volume and Luxury Brand Market Share – 2016 For personal use only Volume Brands Market Share Luxury Vehicles Market Share* * Luxury is defined as luxury vehicle selling more than 500 units annually (V Facts) 2016 Full Year Results Presentation 22/02/2017 5 5
Slide 6: Volume and Luxury Brand Market Share – 2015
Volume and Luxury Brand Market Share – 2015 For personal use only Volume Brands Market Share Luxury Vehicles Market Share* * Luxury is defined as luxury vehicle selling more than 500 units annually (V Facts) 2016 Full Year Results Presentation 22/02/2017 6 6
Slide 7: Vehicle Sales By Fuel Type
Vehicle Sales By Fuel Type Electric vehicle sales down 80% YoY (excl. Tesla). Traditional fuels still make up ~99% of new vehicle sales For personal use only New Vehicle Sales by Fuel Type (2016 v 2015) 2015 2016 -0.7% 773.9 768.6 +8.7% 363.0 334.1 +2.9% 32.2 33.1 +4.0% 12.1 12.6 -70.3% -80.2% 1.1 0
Slide 8: Exchange Rate Impact
Exchange Rate Impact For personal use only • 83% of cars sold in Australia are imported from Japan, Thailand, Korea and EU Countries • Manufacturers have long planning horizons and diversified exposures • Product and production planning based on 3-7 year cycles • Most manufacturers pursuing global c
Slide 9: Exchange Rates
Exchange Rates For personal use only 2016 Full Year Results Presentation 22/02/2017 9
Slide 10: Affordability
Affordability For personal use only 2016 Full Year Results Presentation 22/02/2017 10
Slide 11: APE Vehicle Sales 2016
APE Vehicle Sales 2016 For personal use only (1) Auction sales of 5,739 units excluded from total (2015: 5,748) 2016 Full Year Results Presentation 22/02/2017 11
Slide 12: 2016 Full Year Highlights - Financial
2016 Full Year Highlights - Financial For personal use only • Record statutory (basic) EPS of 55.4 cents, up 16% • Record fully franked final dividend of 22 cents, up 10% • EBITDA increased to $179.8m, up 10% • Underlying(1) net profit before tax increased to $137.5 million, up 9% • Cash flow from o
Slide 13: Financial Summary
Financial Summary For personal use only $ Million 2016 2015 Change Revenue 3,833.2 3,246.4 Up 18% EBITDA 179.8 163.1 Up 10% EBIT 165.8 142.3 Up 17% PBT 141.4 121.0 Up 17% PAT 105.5 87.0 Up 21% Cash from operating activities 110.7 84.6 Up 31% NTA/share 2.44 2.95 Down -17% Net gearing excluding bailme
Slide 14: Balance Sheet - Summary
Balance Sheet - Summary For personal use only 2016 • New vehicle inventory funded by bailment ($M) debt. CA - CL (excl. held for sale) 142.7 • Parts and most used vehicle inventory is balance sheet funded. Freehold Property (incl. held for sale) 298.5 • AHG, Smart Group and Cox Automotive Other Non
Slide 15: Asset Fair Value Adjustments (before tax)
Asset Fair Value Adjustments (before tax) For personal use only 2016 2015 ($M) ($M) Balance Sheet - Freehold Property + 12.1 + 2.2 - Investments - 36.8 + 46.2 Profit or Loss - Investments + 2.0 + 3.5 - Freehold Property + 1.2 (2.1) - Intangible Assets - (5.5) Total -21.5 + 44.3 2016 Full Year Result
Slide 16: Earnings Per Share
Earnings Per Share For personal use only EPS Bridge 58.0 0.4 1.8 1.7 9.4 1.5 57.0 56.0 55.4 55.0 54.0 53.0 Cents 52.0 51.0 50.0 49.0 48.0 47.6 47.0 46.0 2015 NPAT Operational AHG Investment Profit on Sale MTAI, Impairment, Dilution (EIP) 2016 NPAT Result (net of interest) Property / Other Income, In
Slide 17: Financial Summary - Cashflow
Financial Summary - Cashflow Cash Flow Bridge 2016 For personal use only 250.0 73.5 201.0 168.9 24.2 200.0 34.0 62.8 52.7 150.0 $ Milion 100.0 6.9 50.0 37.5 - 17.6 - 2016 Full Year Results Presentation 22/02/2017 15 17
Slide 18: Financial Trends – Underlying PBT
Financial Trends – Underlying PBT For personal use only * Operating Earnings is EBITDA Underlying excluding profit/loss on sale of assets and from associates. It includes AHG dividend. ** PBT Underlying excludes business acquisition costs, GST tax refunds and fair value adjustments relating to freeh
Slide 19: Financial Trends
Financial Trends For personal use only * Operating Earnings is EBITDA Underlying excluding profit/loss on sale of assets and from associates. It includes AHG dividend (from 2012). 2016 Full Year Results Presentation 22/02/2017 19
Slide 20: Financial Trends
Financial Trends For personal use only 2016 Full Year Results Presentation 22/02/2017 20
Slide 21: Financial Trends
Financial Trends For personal use only 2016 Full Year Results Presentation 22/02/2017 21
Slide 22: Segment Results
Segment Results For personal use only Car retailing Record car retail volumes in NSW with positive contributions from acquisitions. Strong trading in service business. Truck retailing Strong profit performance from truck business despite continued challenging new and used heavy truck trading conditi
Slide 23: Segment Results – Car Retailing
Segment Results – Car Retailing For personal use only 2016 2015 ($M) ($M) • Record results with profit contribution up 6.8% on prior year Revenue 3,449.7 2,884.7 • Record results for South Australia and Segment Profit before Tax 104.6 98.0 Newcastle dealership operations Total Assets 1,067.5 732.8 •
Slide 24: Segment Results – Truck Retailing
Segment Results – Truck Retailing For personal use only 2016 2015 ($M) ($M) • Segment represents 9.5% of revenue and 2.9% of net assets Revenue 363.8 345.1 • Strong profit performance from truck Segment Profit before Tax 6.3 (3.3) business despite continued challenging new and used heavy truck Total
Slide 25: Segment Results – Property
Segment Results – Property For personal use only 2016 2015 ($M) ($M) • Settlement of Fortitude Valley and Woolloongabba properties Revenue 30.3 27.9 Segment Profit before Tax 16.2 16.2 • Revaluation gain of $12.1m, including $1.2m through the statement of profit or Revaluation surplus/deficit loss 1
Slide 26: Segment Results – Investments
Segment Results – Investments For personal use only 2016 2015 ($M) ($M) • Substantial asset balance providing stable returns Revenue 14.4 13.8 Segment Profit before Tax 14.8 14.9 • Profit before tax excludes unrealised revaluation loss on investments Revaluation surplus/deficit (38.8) 46.2 before ta
Slide 27: AHG Investment
AHG Investment For personal use only • 66,320,000 shares held at 31/12/16 (19.99%) • Investment valued at $261.9m at $3.95 (31/12/16) • An unrealised revaluation loss of $37.8m within investment segment • Share price (31/12/15) $4.52, (31/12/16) $3.95 • 5,415,650 new shares acquired in 2016 @ $4.52
Slide 28: Cox Automotive Australia Investment - $10.0M
Cox Automotive Australia Investment - $10.0M For personal use only Completed Structure of the Combined Business NOTE: The "UNDER CONSIDERATION" arrangements depicted above will not form part of the combined business on completion of the Scheme of Arrangement. Cox Automotive may consider making them
Slide 29: Why Used Cars?
WHY USED CARS? For personal use only NEW CAR USED CAR MARKET MARKET Leading US Automotive Retailers Market Cap.* Carmax 12.5Bn (21x) Penske 4.4Bn (13x) Autonation 4.8Bn (12x) *Source: https://au.finance.yahoo.com/ as at 20/02/2017 2016 Full Year Results Presentation 22/02/2017 29
Slide 30: Customers' Perceptions of the Used Car Buying Experience
THEORY & RATIONALE Customers’ Perceptions of the Used For personal use only Car Buying Experience. “Dealers do not have my best interests at heart.” Commission based – it’s only about the sale Try to upsell Don’t care about what I need Don’t tell the whole truth 2016 Full Year Results Presen
Slide 31: Used Car Portfolio Strategy: Zooper + Carzoos
USED CAR PORTFOLIO STRATEGY: … ZOOPER + CARZOOS TO MEET EACH CONSUMER NEED For personal use only 2016 Full Year Results Presentation 22/02/2017 31
Slide 32: Zooper! Used Cars
ZOOPER! USED CARS For personal use only 2016 Full Year Results Presentation 22/02/2017 32
Slide 33: Global Trend: Automotive Retail in Shopping Malls
GLOBAL TREND: AUTOMOTIVE RETAIL IN SHOPPING MALLS For personal use only 2016 Full Year Results Presentation 22/02/2017 33
Slide 34: Carzoos
CARZOOS For personal use only 2016 Full Year Results Presentation 22/02/2017 34
Slide 35: Learnings to Date: Carzoos Retail Store Adoption
LEARNINGS TO DATE: For personal use only Carzoos Retail Store Adoption* *Retail store walk-ins only. Excludes inventory driven appointments 2016 Full Year Results Presentation 22/02/2017 35
Slide 36: Simplr. Finance
Simplr. Finance For personal use only 2016 Full Year Results Presentation 22/02/2017 36
Slide 37: 2017 Focus
2017 Focus For personal use only • Continued development of Used Car Strategy Zooper and Carzoos, supported by Simplr • Further EPS growth for Birrells, Crampton and Tony Ireland group acquisitions • Renewed focus on all business processes to deliver optimal operating cost • Implement already prepar
Slide 38: Disclaimer
Disclaimer For personal use only • 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 b
Slide 39: Appendix
For personal use only Appendix 2016 Full Year Results Presentation 22/02/2017 39
Slide 40: A.P. Eagers Company Profile
For personal use only A.P. Eagers COMPANY PROFILE 2016 Full Year Results Presentation 22/02/2017 40
Slide 41: AP Eagers Today (December 2016)
AP Eagers Today (December 2016) For personal use only • 104 year old automotive retail group founded in 1913 • 60 years as a listed public company – dividend paid every year • A.P. Eagers owns $299m of prime real estate • Represents all 20 of the top 20 selling vehicle brands in Australia and 33 car
Slide 42: AP Eagers Volume Car Brands
AP Eagers Volume Car Brands For personal use only Represents 10 of the top 10 selling volume car brands in Australia 2016 Full Year Results Presentation 22/02/2017 42
Slide 43: AP Eagers Luxury Car Brands
AP Eagers Luxury* Car Brands For personal use only Represents 10 of the top 11 selling luxury car brands in Australia * Luxury is defined as a luxury vehicle selling more than 500 units annually (per VFACTS) * Maserati sold 483 units in 2016 (2015: 519 units) 2016 Full Year Results Presentation 22/0
Slide 44: AP Eagers Truck and Bus Brands
AP Eagers Truck and Bus Brands For personal use only Representing 14 truck and bus brands 2016 Full Year Results Presentation 22/02/2017 44
Slide 45: Revenue by State / % of group Revenue
Revenue by State / % of group Revenue For personal use only AP Eagers $3.83 billion revenue $0.15bn (4%) $1.81bn (47%) $0.0bn $0.64bn (17%) $0.75bn (20%) $0.33bn (9%) $0.16bn (4%) 2016 Full Year Results Presentation 22/02/2017 45
Slide 46: Income Opportunity Franchised Dealership
Income Opportunity Franchised Dealership For personal use only 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 blade