Slide 1: 2016 Full Year Results
2016 FULL YEAR RESULTS THE UK’S LARGEST AUTOMOTIVE ONLINE RETAILER Pendragon PLC 2017 1
Slide 2: Strategic and Operational Highlights
• Our initiatives such as Move Me CloserTM, Sell Your Car and our aftersales progress update portal are leading the evolution of automotive online retailing • The Evanshalshaw.com and Stratstone.com websites have developed further during the year generating 22.7 million visits in the year, up +14.4%
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS Pendragon PLC 2017 3
Slide 4: Summary
SUMMARY +36% +18% • Underlying PBT up 7.6% • Underlying EPS up 5.4% +16% +11% +8% +1% • Debt : Underlying EBITDA at 0.6 which is below our target range of 1.0 – 1.5 +35% +33% +19% +38% +5% -20% Pendragon PLC 2017 4
Slide 5: Underlying £m Summary
Underlying £m 2016 2015 Variance SUMMARY Revenue 4,537.0 4,453.9 +1.9% • Used vehicle revenue up 9.5% Gross Profit 559.6 548.9 +1.9% on a L4L basis Gross Margin 12.3% 12.3% - • Aftersales revenue up 7.3% on a L4L basis Operating Costs (458.4) (448.4) +2.2% Operating Costs as a % 81.9% 81.7% +0.2% •
Slide 6: Non-Underlying £m Summary
SUMMARY Non-Underlying £m 2016 2015 Variance • The Group sold five franchise (Loss)/Gain on Disposals Net of (0.8) 10.6 (11.4) points in the period, yielding Property Impairments proceeds of £8.9m and generating a loss on disposal VAT Provisions - (3.2) 3.2 of £0.8m Gain on Disposals of Investments
Slide 7: Summary Cash Flow £m
Summary Cash Flow £m 2016 2015 Underlying Operating Profit Before Other Income 101.2 100.5 Depreciation and Amortisation 29.9 25.3 Non-Underlying Items - (3.2) SUMMARY Share Based Payments 2.2 2.0 Working Capital and Contract Hire Vehicle Movement (30.7) 1.0 • Debt : Underlying EBITDA ratio Operatin
Slide 8: Balance Sheet £m
Balance Sheet £m 2016 2015 SUMMARY • Strong balance sheet Property 199.3 172.7 • Stock levels have been Plant & Equipment 206.0 180.0 increased to grow used vehicle Goodwill & Intangibles 362.2 366.6 revenue Stock 846.2 830.6 Debtors 153.1 134.5 Assets Held For Resale 6.6 16.2 Creditors (1,308.9) (1
Slide 9: Net Debt, Buyback and Dividend Summary
SUMMARY • Debt : Underlying EBITDA at 0.6 which is below our target -40% range of 1.0 – 1.5 • £20m share buyback programme commenced on Net Debt 20-May-16 with £7.5m purchases to date • Progressive dividend policy -27% -38% -38% with cover maintained • Final proposed 2016 dividend of 0.75p -42% -30%
Slide 10: Strong like-for-like growth across used, aftersales and new
SUMMARY • Strong L4L growth across used, aftersales and new Pendragon PLC 2017 10
Slide 11: Pendragon PLC 2017
** * 2016 Disposals were Derby Jaguar, St Albans Ford, Wolverhampton Jaguar and Woodford Jaguar & Land Rover Pendragon PLC 2017 11
Slide 12: Industry Insight
INDUSTRY INSIGHT Pendragon PLC 2017 12
Slide 13: Car parc growth
SUMMARY • 4.1% growth (5.5% predicted) in 0-3 year car parc in 2016, 3.7% forecast in 2017 • 3.1% growth (4.3% predicted) in 4-6 year car parc in 2016, 9.8% forecast in 2017 Pendragon PLC 2017 13
Slide 14: Used market growth
SUMMARY • 6.0% growth (2.8% predicted) in the used market in 2016 – Pendragon L4L revenue grew by 9.5% in 2016 • 1.8% growth in the used market forecast in 2017 • Pendragon’s UK L4L used to new retail units ratio of 4.1 in 2016 – an increase of 24.2% in 3 years Pendragon PLC 2017 14
Slide 15: New retail market
SUMMARY • New retail market flat in 2016 • Total market up 2.3% (1.25% predicted) in 2016 • Forecast of 0.3% growth in 2017 (Pendragon total market estimate) Pendragon PLC 2017 15
Slide 16: Strategic Highlights
STRATEGIC HIGHLIGHTS Pendragon PLC 2017 16
Slide 17: Our Strategic Pillars
Our Strategic Pillars focus on Choice, Value, Customer Service and Convenience. Our Systems and Intellectual Property provides a superior advantage over our peers and is a key enabler for our strategic pillars. Pendragon PLC 2017 17
Slide 18: Pinewood provides a strategic advantage to the Group
• Pinewood (the Group’s IT and software division), provides a strategic advantage to the Group • Integrated responsive websites generating 22.7m visitors (Evanshalshaw.com and Stratstone.com) • Market intelligence and intellectual property • Industry leading initiatives across used, aftersales and n
Slide 19: Used vehicle strategic pillars
Choice • 22,000 vehicles online – extensive choice of used vehicles Value • Daily monitoring of prices backed up by our price guarantee Customer Service • Payment online – self-serve online experience • Move Me CloserTM – the UK’s first click and collect automotive service Convenience • 85 Sell Your
Slide 20: New Evans Halshaw Car Store Openings 2017
New Evans Halshaw Car Store Openings: • Exeter • Coventry • Glasgow • Gloucester • Ipswich FIRST HALF OF 2017 SECOND HALF OF 2017 • 5 x new points for enhanced geographical coverage in the UK Pendragon PLC 2017 20
Slide 21: Aftersales strategic pillars
Choice • Range of propositions for customers Value • Daily monitoring of prices backed up by our price guarantee Customer Service • Personal Video Health checks • Progress update portal Convenience • Online Service Booking • Drop and collect options Pendragon PLC 2017 21
Slide 22: New vehicle strategic pillars
Choice • 23 world wide brands Value • Development of our new car offering to align to our current used vehicle initiatives Customer Service • Customer survey and action for every transaction Convenience • 197 franchise points in the UK and USA Pendragon PLC 2017 22
Slide 23: Team
Team • ~9,700 team members Development • Continued investment in our people Investment • Significant investment in our technician resource as we drive our aftersales growth Pendragon PLC 2017 23
Slide 24: Strategic and Operational Highlights
• Our initiatives such as Move Me CloserTM, Sell Your Car and our aftersales progress update portal are leading the evolution of automotive online retailing • The Evanshalshaw.com and Stratstone.com websites have developed further during the year generating 22.7 million visits in the year, up +14.4%