Inchcape Plc · LSE:INCH
Inchcape — Investor Presentation (May 2022)
14 slides from Inchcape's investor presentation, May 2022
Slide 1: Investor Presentation May 2022
INVESTOR PRESENTATION May 2022
Slide 2: Inchcape: Group overview
Inchcape 2 Inchcape: Group overview Our business Our differentiators Our financials Distribution focus Global scale ROCE c.90% of >40 markets profit 6 continents >25% Vehicles & Parts Technology Cash conversion Strong automotive brands Digital & Analytics leader >60% Leading global automotive distri
Slide 3: 2021 headline KPIs
Inchcape 3 2021 headline KPIs Topline Profitability Cash Shareholders Revenue Operating margin Free Cash Flow Underlying EPS £7.6bn 4.3% (2019: 4.0%) £289m 56.2p +21% £296m 88% 22.5p Organic growth (YoY%) PBT % FCF conversion DPS (proposed) Figures are stated pre-exceptionals
Slide 4: Considerable opportunities for an ambitious Inchcape
Inchcape 4 Considerable opportunities for an ambitious Inchcape Distribution Excellence Vehicle Lifecycle Services Annual new car volumes (units) Vehicle lifecycle value profit split2 90m 17m New market opportunities Typically insourced e.g. China, 75% Currently by OEMs US, UK underserved by Inchcap
Slide 5: Inchcape: the leading automotive distributor
Inchcape 5 Inchcape: the leading automotive distributor Our competitive advantages: ▪ The global leading distributor: >40 markets across six continents ▪ Long-term relationships with strong OEM brands ▪ A plug-and-play distribution platform: unique digital and data analytics capabilities
Slide 6: Distribution deals have accelerated over the past 5 years
Inchcape 6 Distribution deals have accelerated over the past 5 years 2010 2016 2017 2018 2019 2020 2021 Today Number of 0 2 2 3 3 5 6 deals Revenue - c.£400m c.£100m c.£250m c.£150m c.£200m c.£350m added New OEMs - 1 2 2 1 0 5 New markets - 3 0 3 2 2 3
Slide 7: Capturing more of the lifetime value of a vehicle
Inchcape 7 Capturing more of the lifetime value of a vehicle Vehicle Lifecycle Value Three opportunities in focus Timeline New vehicle import 1. 2021/ 22 Digital first, multi-brand, Lifetime 1st sale used car platform profits % B2C 25% 2. Digital Parts Platform 2023/ 75% 2nd sale 24 Digital platform
Slide 8: Capital allocation policy: highly attractive and disciplined
Inchcape 8 Capital allocation policy: highly attractive and disciplined 01 Invest in the 02 Dividends 03 Value 04 Share business accretive M&A buybacks Capex for organic Policy: Disciplined Consider growth and 40% annual payout approach to appropriateness of technological of basic EPS valuation shar
Slide 9: Investment case: well-positioned to deliver significant value
Inchcape 9 Investment case: well-positioned to deliver significant value Attractive Consolidation shareholder returns opportunities Margin expansion Dividend payout: 40% Strong organic growth We are the leader with c.1% Track record of share share of global distribution buybacks Leverage our global
Slide 10: Bringing mobility to the world's communities
Inchcape 10 BRINGING MOBILITY TO THE WORLD’S COMMUNITIES – FOR TODAY, FOR TOMORROW & FOR THE BETTER
Slide 11: Appendix
Inchcape 11 APPENDIX
Slide 12: Accelerate strategic framework
Inchcape 12 Accelerate strategic framework Our Growth Drivers Distribution Excellence Vehicle Lifecycle Services Our Enablers Culture and Digital, Data & Efficient Scale Capabilities Analytics Operations Responsible Business
Slide 13: Consolidation: plotting the landscape of opportunity
Inchcape 13 Consolidation: plotting the landscape of opportunity Typical distribution markets1 Number of 17m 17m 17m independent distributors Middle East >170 OEM Other Latam & operated OEMs >500 Africa (NSCs) (potential) APAC >250 Inchcape Independent OEM distributors Partners Europe >220 (existing
Slide 14: A strategic Responsible Business framework
Inchcape 14 A strategic Responsible Business framework Planet People Places Practices ▪ Mapping the risks and ▪ Prioritising safety ▪ Positively impacting ▪ Strengthening our opportunities of and wellbeing local communities governance policies, climate change ▪ Creating an inclusive and ▪ Supporting