Slide 1: Investor Presentation First Quarter 2023
Investor Presentation First Quarter 2023 4/19/2023 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be dee
Slide 3: AutoNation Investment Highlights
AutoNation Investment Highlights ▪ Substantial, predictable cash flow generation coupled ▪ Building concentrated scale and scope in markets to with disciplined capital allocation drives long-term maximize performance value ▪ Developing end-to-end transportation solutions to ▪ Trusted Industry leadin
Slide 4: Overview
Overview 11 Million 10+ Million 24,000 344 248 15 53 4 Customers Households Associates Franchises Franchised AN USA Collision Vehicle Dealerships Stores Centers Auctions 16 1 3 Total Revenue $27 Billion 13 7 17 44% 36% 15% 5% 8 20 2 40 1 Total Gross Profit $5.3 Billion 1 9 19 1 10 26% 11% 36% 27% 3
Slide 5: AutoNation: Initiatives
AutoNation: Initiatives To provide a comprehensive range of transportation solutions to our 11 Million Customers & Households Extending value creation of core business by increasing the depth and breadth of product and service offerings: ▪ Convenient, transparent and trusted customer experience to d
Slide 6: Financial Review
Financial Review 6
Slide 7: Financial Highlights – Q1 2023
Financial Highlights – Q1 2023 Our diversified business model and disciplined capital deployment delivered strong results Record 1Q EPS of $6.07 up 5% over Prior Year Strong performance and capital deployment Gross Profit of $1.3 Billion, down 2% from Prior Year Increase in After-Sales and Used vehi
Slide 8: Q1 2023 Financial Summary
Q1 2023 Financial Summary ($ in millions, except per share data) Q1 2023 Q1 2022 YoY Total revenue $6,398 $6,753 -5% Gross profit $1,286 $1,309 -2% SG&A Expense $783 $741 6% SG&A / Gross Profit 60.8% 56.6% 420bps Operating income $443 $519 -15% Net income $289 $362 -20% EPS $6.07 $5.78 5% 8
Slide 9: Robust Consistent Cash Flow Generation
Robust Consistent Cash Flow Generation CASH FLOW FROM OPERATIONS ($MM) $1,628 $1,668 $1,208 $769 ▪ Substantial consistent cash flow generation supports disciplined capital allocation and drives long-term shareholder value 2019 2020 2021 2022 CAPITAL EXPENDITURES ($MM) $336 ▪ Strong cash flow generat
Slide 10: Shares Outstanding Significantly Reduced
Shares Outstanding Significantly Reduced SHARES OUTSTANDING 89.3 83.5 ▪ Investments over the past 3+ years in 62.6 Share Repurchases have nearly halved 47.6 45.6 shares outstanding ▪ During First Quarter 2023, investment 2019 2020 2021 2022 1Q23 of $305 million to repurchase 2.4 million shares SHARE
Slide 11: After-Sales: Consistently Growing High-Margin Business
After-Sales: Consistently Growing High-Margin Business ▪ Continued focus on growth of After-Sales REVENUE ($MM) $1,090 ▪ Since 2019: Annual Revenue up $500+M $1,036 $1,032 $1,028 Gross Profit up $275+M $1,004 ▪ Q1 2023 Gross Profit up 11% from year ago Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 GROSS PROFIT
Slide 12: New Vehicles: Continued Robust Performance
New Vehicles: Continued Robust Performance 74,383 NEW RETAIL UNITS 56,442 57,890 55,565 60,074 ▪ Industry Unit sales remain below historical 55,065 levels ▪ Overall Inventory increasing, varies by brand and model ▪ Industry Fleet sales increasing ▪ Gross Profit PVRs continue to moderate Q4 '19 Q1 '2
Slide 13: Used Vehicles: Strong Gross Profit
Used Vehicles: Strong Gross Profit USED RETAIL UNITS 79,763 77,080 75,355 67,608 67,539 59,022 ▪ Enhancing Used vehicle economics through effective self sourcing, reconditioning and pricing ▪ Q1 Gross Profit increased 13% as PVR performance more than offset Q4 '19 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23
Slide 14: Continued Industry Leading Customer Financial Services
Continued Industry Leading Customer Financial Services REVENUE ($MM) PVR ($) $2,713 $2,711 $368 $2,443 $364 $361 $2,158 $1,935 $345 $332 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 FY '19 FY '20 FY '21 FY '22 Q1 2023 Q1 2023 Results Drivers and Trends ▪ Higher PVR partially offset lower unit volume ▪ Product
Slide 15: Sustained Profitability: SG&A/Gross & Operating Inc Margin
Sustained Profitability: SG&A/Gross & Operating Inc Margin ADJ SG&A / GROSS PROFIT (%) 72.3% 67.2% 58.0% 60.8% ▪ SG&A/Gross Profit remains well below 57.3% historical levels, reflecting continued expense discipline, investments in technology and new business FY 2019 FY 2020 FY 2021 FY 2022 Q1 2023 ▪
Slide 16: Appendix
Appendix This presentation contains certain non-GAAP financial measures for which we have set forth below reconciliations to the most comparable GAAP measures. The Company believes that these measures improve the transparency of the Company’s disclosure, provide a meaningful presentation of the Comp
Slide 17: Select Historical Data
Select Historical Data Global Financial Crisis to 2022 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Avg. SAAR (mm) 13.1 10.3 11.5 12.6 14.3 15.4 16.4 17.4 17.5 17.1 17.2 17.0 14.5 14.9 13.7 14.9 New Retail SAAR (mm) 10.6 8.6 9.2 10.3 11.7 12.8 13.6 14.2 14.2 14.1 13.9 1
Slide 18: Non-GAAP Reconciliations: Historical Adjusted SG&A
Non-GAAP Reconciliations Historical Adjusted SG&A Twelve Months Ended Twelve Months Ended Twelve Months Ended Twelve Months Ended ($ in millions) December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 SG&A as a Percentage SG&A as a Percentage SG&A as a Percentage SG&A as a Percentag
Slide 19: Non-GAAP Reconciliations: Historical Adjusted Operating Income
Non-GAAP Reconciliations Historical Adjusted Operating Income Twelve Months Ended Twelve Months Ended Twelve Months Ended Twelve Months Ended ($ in millions) December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 Percentage of Revenue Percentage of Revenue Percentage of Revenue Perc