Motorpoint Group Plc · LSE:MOTR
Motorpoint — FY2023 Earnings Presentation
32 slides from Motorpoint's earnings presentation, 2023
Slide 1: Full year 2023 results and strategy update
year 2023 results and strateg ‘update i
Slide 2: Full year 2023 highlights
Full year 2023 highlights Mark Carpenter, CEO Financial highlights and ESG update Chris Morgan, CFO Strategic update and outlook Mark Carpenter, CEO 2
Slide 3: The UK's leading omnichannel used vehicle retailer
“We are the UK’s leading omnichannel used vehicle retailer, investing for significant, profitable long term growth” 3
Slide 4: Motorpoint and Auction4Cars.com
Motorpoint Auction4Cars.com The UK’s leading omnichannel used vehicle retailer The UK’s leading independent Trade car auction site • Nearly New Consumer Vehicles • Online only • Light Commercial Vehicles Sell Your Car (C2B) Sell Your Car (C2B) < 4 years* > 4 years* < 30,000 miles* > 30,000 miles* Pa
Slide 5: Motorpoint virtuous circle
Motorpoint virtuous circle - remains at the core of what wedo ™ Motorpoint Group PLC | Full year 2023 results and strategy update
Slide 6: FY23 headwinds and FY24 proactive response
The investment we laid out in FY21 is thus far delivering good results and has positioned the Group better for the future. This allows us to pause the level of ongoing investment, given macro headwinds FY23 headwinds FY24 proactive response Our market share • Nearly-new vehicle shortages • Given inv
Slide 7: Strategic progress evident in our KPIs
Strategic progress evident in our KPIs KPI FY23 FY22 Market share (0-4 year market) 3.5% 3.1% Total revenue £1,440.2m £1,322.3m Total E-commerce revenue £660.5m £624.9m Total units sold 89.7k 97.7k Units sourced from consumers (% of retail sales) 23.8% 17.9% Strategic investment £6.1m £1.0m (Loss) /
Slide 8: Price Leadership - 99.5% of stock priced Good, Great or Low
Motorpoint Marshall Price Leadership - 99.5% of stock priced Good, Great or Low** £16,599* £19,350* £288 per month £350 per month 20,000 miles/21 plate 24,000 miles/21 plate “Excellent service from start to finish. Clear communication throughout with honesty and care at the forefront. The team reall
Slide 9: 8.9% market share (within 30 mins)
8.9% market Edinburgh (opened September 22) share*(within Coventry (opened October 22) 30 mins) Ipswich (opened May 23) Pipeline in place • Target 10% national share at maturity • No further openings planned currently Edinburgh Proven model Market share growth as customers repeat purchase at a locat
Slide 10: Brand awareness and market share by store opening cohort
Strong Brand awareness Brand awareness Market Market correlation Site catchments (spontaneous) (spontaneous) share FY23 share FY22 April 2023 April 2022 between new markets, Openings pre 2013 11% 9% 22% 22% brand awareness Openings 2013 - 17 7% 6% 11% 11% and market share gain Openings 2017 - 22 6%
Slide 11: Record revenue and return to cash surplus
“Record revenue and return to cash surplus. Profitability impacted by market conditions and investment” 11
Slide 12: Revenue, gross profit, profit before tax
Revenue 1,440.2 1322.3 8.9% Gross profit 85.7 106.3 -19.4% (Loss) / profit before tax (0.3) 21.5 nm EBITDA 16.2 32.3 -49.8% Net cash / (debt) 5.6 (21.2) +26.8m 12
Slide 13: Income statement FY23 vs FY22
£’m FY23 FY22 Change • Record revenue £1,440.2m, up 9% helped by vehicle mix Revenue and price inflation. Fall in retail volume reflects market constraints Retail 1,175.7 1,112.3 Wholesale 264.5 210.0 • Increased market share of the 0-4 year old market to 3.5% (FY22: 3.1%) Total revenue 1,440.2 1,32
Slide 14: Balance sheet FY23 vs FY22
£’m FY23 FY22 Change Fixed assets 13.1 10.9 2.2 • Three store openings and major refits at Burnley and Newport Intangible assets 3.7 0.6 3.1 • Intangible assets reflect software and website development Right of use assets 58.4 46.7 11.7 • Assets held for sale at year end (Stockton and Peterborough)
Slide 15: Cash flow
Cash flow 10.0 5.0 0.0 |= (5.0) (10.0) (15.0) (9.4) 9.7 (20.0) (21.2) (8.2) (25.0) (30.0) (5.9) (0.7) (35.0) Opening EBITDA, Capex Interest Lease payments Shares purchased Proceeds from Net working capital _Closing net cash cash & RCF and tax for EBT sale & leasebacks Motorpoint Group PLC | Full yea
Slide 16: We want to be viewed as the most environmentally friendly used car retailer
By supporting our environment And our communities • ESG Board committee now operational • First ED&I survey completed by employees, and We want to be plans formulated • EV charging point roll out viewed as the • New applicant tracking and onboarding system • Sold 137% more EVs than in FY22 launched
Slide 17: Good progress towards delivering strategic targets
“Good progress towards delivering strategic targets - limit investment in FY24 to those opportunities that offer the best near term returns” 17
Slide 18: Digital: visibility in Google search listings up 176%
• In house digital team recruited – significant increase in digital sales leads • SEO content team recruited; increasing organic searches • New Digital and Tech Hub launched in Manchester store – helping to attract the best talent • Data science increasingly driving business decisions for customer a
Slide 19: Website improvements
Landed • New home page – lifestyle imagery to inspire, easier navigation, enhanced content • New header and footer – enhanced look and feel • Search results page upgraded Further improvements in pipeline • Improved sort and filter options • Was/now pricing, with savings added New product detail page
Slide 20: New brand proposition: There's no car like a Motorpoint car
• Customer Experience project commenced to connect virtual and in store customer journey • Customer Board introduced to reduce CX tension points • 11% increase in customer retention from FY22 • Rapidly upscaled our E-commerce capability • New brand proposition launched, including extensive TV advert
Slide 21: Refreshed A4C brand and technology
• 'Sell Your Car' service - fully automated digital first offering, with 5,016 cars acquired from customers, up 131% • 23.8% of units sold acquired from customers, up 33% Refreshed the A4C brand • Refreshed look and feel of Auction4Cars brand / website. Redefined proposition USPs (Value, Transparenc
Slide 22: Automation delivering efficiency savings across the business
• Automation supporting headcount reduction (794 from 928 at March 22), despite increased digital capability and new stores. Store headcount reduced by 14% and Head Office by 21% • Merger of store sales and customer handover roles • Outbound payments fully automated; five days to one minute • Automa
Slide 23: Selective investment in areas offering best near term return
• Price leadership is vital; we continue to offer the best value for our customers • Motorpoint has a strong track record of demonstrating resilience in a downturn and efficiently managing cash resources • Rising inflation, interest rates, consumer uncertainty will continue to impact our market and
Slide 24: Appendix
Appendix Motorpoint Group PLC | Full year 2023 results and strategy update 24
Slide 25: Return on capital employed
Return on capital employed 120% 102% 100% 97% • Leasehold property model 80% 75% • Two sale and leasebacks of last remaining building properties 60% 53% • Significant headroom (£92.5m) to total stocking facility of £195.0m 40% • Vehicles paid for prior to 17% delivery/collection 20% 0% FY19 FY20 FY2
Slide 26: Financial KPIs (1 of 2)
Financial KPIs (1 of 2) Volumes Retail 57.3k 62.9k Wholesale 32.4k 34.8k Total 89.7k 97.7k Online 21.5k 23.4k Branch 35.8k 39.5k Total Retail 57.3k 62.9k Total GP per retail unit £1,300 £1,446 Total GP per wholesale unit £346 £440 Customer acquired vehicles (% of retail units) 23.8% 17.9% Vehicles a
Slide 27: Financial KPIs (2 of 2)
Financial KPIs (2 of 2) Average time to prep car (0-4 years) - days 8.3 9.4 Transport pu £ 117 99 Marketing £ 14.0m 18.9m Marketing pu (CAC) £ 244 300 People costs £ 36.2m 34.7m People costs pu £ 631 552 Depreciation and Occupancy £ 12.7m 9.2m Depreciation and Occupancy pu £ 222 146 Other Operating
Slide 28: Rapidly upscaling our E-commerce capability
Rapidly upscaling our E-commerce capability Increase customer acquisition and retention • Increased investment in technology and data science • Open 12 sales and collection branches • Leverage data to drive intelligence – customer segmentation, • Increase CAC in short term with subsequent reduction
Slide 29: Expand wholesale channels
Operational efficiency through technology and Expand wholesale channels innovation • Invest in Auction4Cars.com to accommodate new supply • Increase capacity for >200,000 vehicles channels • Complete Hub and Spoke preparation model supplying sales and • Enable migration to B2B platform with multiple
Slide 30: Equivalent cars at least 40% more expensive than three years ago
Hyundai Tuscon • £18.0k now versus £11.6k Equivalent cars at least 40% • £300 per month now versus £178 per month more expensive than three Vauxhall Corsa years ago • £13.8k now versus £8.3k • £202 per month now (with £800 deposit) versus £148 per month (no deposit) 30
Slide 31: Key Motorpoint benefits
Key Motorpoint benefits 86 ✓ Award winning service 84 ✓ Extensive choice ✓ Great value backed by price promise 82 ✓ Quality control and operational excellence 80 ✓ Flexible finance options 78 ✓ Competitive part exchange prices ✓ Test drives readily available 76 ✓ Home delivery 74 ✓ Same day driveawa
Slide 32: Disclaimer
The information, opinions and statements contained in this presentation and any associated discussion (this “Presentation”) has been prepared by Motorpoint Group PLC (the “Company”) and has not been independently verified. The Presentation is only intended for information and reference purposes as a