Slide 1: Investor presentation
Investor presentation May 2021
Slide 2: Inchcape: Group overview
Inchcape: Group overview Who we are Global presence: 36 markets, with an EM focus Key: Distribution Retail APAC UK & Europe • Largest independent global automotive distributor Australia Belgium Hong Kong Greece o Distribution accounts for vast majority of Group profits Romania, Bulgaria Singapore Br
Slide 3: Distribution business model
Distribution business model Sales & Marketing Logistics Network Management Retailing Aftersales 1 2 4 3 5 5 6 9 7 9 8 9 National Network Aftersales and marketing 6 servicing management 4 Brand positioning 8 2 5 7 1 3 Product planning 9 Imports & logistics Parts New & Used distribution vehicle sales
Slide 4: Quarterly revenue trend: underlying resilience
Quarterly revenue trend: underlying resilience Organic revenue growth (yoy%) How we’ve adapted Implemented click & collect; offering 1Q20 2Q20 3Q20 4Q20 1Q21 physically distanced delivery service 5% 4% 2% (6)% (5)% (2)% (13)% (2)% Added online payment capability (6)% (10)% (9)% (for both vehicles an
Slide 5: 2020 results: encouraging bounce-back in H2
2020 results: encouraging bounce-back in H2 H1 H2 FY 2019 2020 2019 2020 2019 2020 Revenue £4.7bn £3.0bn £4.7bn £3.8bn £9.4bn £6.8bn Organic growth % (29)% (9)% (19)% Operating margin % 3.8% 0.9% 4.2% 3.6% 4.0% 2.4% PBT £156m £9m £170m £120m £326m £129m Free cash flow £25m £(5)m £188m £182m £213m £1
Slide 6: Strategic priorities
“Bringing Mobility to the world’s communities - for today, for tomorrow and for the better” Strategic priorities
Slide 7: Opportunities for an ambitious Inchcape
Opportunities for an ambitious Inchcape Why our OEM partners need us? Inchcape key market TIVs vs Typical ‘retail market’ TIV1 22m 17m Non-INCH market 4.7m - Distribution is our specialism INCH retail market INCH distribution market - We are more nimble, faster and efficient 2.3m 1.7m - Majority of
Slide 8: The market remains highly fragmented
The market remains highly fragmented Our markets in context of the global auto distribution opportunity c17m units p.a Region 2019 TIV 2021-25 (CAGR%) APAC 5m 4% Potential new markets Europe 6m 3% 1% Africa & Middle East 4m 7% Americas 2m 7% Global 90m 3% INCH volumes INCH distribution markets Typic
Slide 9: Strategic priorities: distribution is our beating heart
Strategic priorities: distribution is our beating heart Distribution Excellence Vehicle Lifecycle Services People, Culture & Capabilities Digital, Data & Analytics Efficient Scale Operations 9
Slide 10: Distribution Excellence
Distribution Excellence Becoming the undisputed number one choice for OEMs Customer Lifetime Value Accelerate New vehicle import Customer omni-channel retention Customer acquisition Globalise distribution processes Our six core distribution activities Digitalise processes 10
Slide 11: Vehicle Lifecycle Services
Vehicle Lifecycle Services Simply capturing more value Vehicle Lifecycle Value Expand New vehicle import services & activities 1st sale % Leverage 2nd sale existing infrastructure % Build-on 3rd sale % relationships % Finance & Insurance Aftersales Trade-in 11
Slide 12: Looking ahead
“Bringing Mobility to the world’s communities - for today, for tomorrow and for the better” Looking ahead
Slide 13: Outlook
Outlook Near-term Strategic-focus - Encouraging bounce-back as restrictions eased - Distribution at our core; becoming the number 1 - Covid-19 situation remains dynamic - Greater use of technology across our business - Group supported by geographical diversification - Further building our OEM relati
Slide 14: Investment proposition: growth and cash returns
Investment proposition: growth and cash returns Disciplined capital allocation Strong cash- conversion Leveraging our Past five years: distribution scale Expansion opportunities FCF = 60-70% of - Dividends: £420m GDP+ organic operating profit Global sharing of - Acquisitions: £600m growth best pract