Peter Warren Automotive Holdings Ltd · ASX:PWR
Peter Warren Automotive — Investor Presentation (August 2021)
33 slides from Peter Warren Automotive's investor presentation, Aug 27, 2021
Slide 1: Investor Presentation: Full year results to 30 June 2021
INVESTOR PRESENTATION Full year results to 30 June 2021 Mark Weaver Chief Executive Officer Bernard Friend Friday 27 August 2021 Chief Financial Officer
Slide 2: Agenda
Agenda 01 About Peter Warren Automotive Holdings 02 FY21 Result Overview 03 FY21 Financial Summary 04 Market Context and Strategy 05 Outlook 06 Questions
Slide 3: About Peter Warren Automotive Holdings: Investment Highlights
ABOUT PETER WARREN AUTOMOTIVE HOLDINGS INVESTMENT HIGHLIGHTS 60+ 28 Established automotive dealership business of scale with YEARS IN OEM opportunity to grow OPERATION BRANDS Diversified offering providing a resilient earnings base Scale, capital investments, and OEM relationships provide a platform
Slide 4: Diversified Business Model Across Franchises & Geographies
DIVERSIFIED BUSINESS MODEL ACROSS FRANCHISES & GEOGRAPHIES ALIGNED TO AUSTRALIA'S GROWTH CORRIDORS Volume Prestige QLD NSW Luxury Other 04 FY21 Financial results | August 2021
Slide 5: FY21 Result Overview
01 About Peter Warren Automotive Holdings 02 FY21 Result Overview 03 FY21 Financial Summary 04 Market Context and Strategy 05 Outlook 06 Questions
Slide 6: FY21 Exceeded Prospectus Forecast
FY21 EXCEEDED PROSPECTUS FORECAST DELIVERED STRONG PERFORMANCE IN ALL KEY FINANCIAL METRICS Revenue ($A million) EBITDA ($A million) Profit before tax ($A million) $1,376.6 $1,526.5 $1,621.2 $49.5 $76.0 $108.0 $15.9 $45.0 $75.7 +18% +118% +376% +6% +42% +68% FY20 FY21F FY21 FY20 FY21F FY21 FY20 FY21
Slide 7: FY21 Operating Highlights
FY21 OPERATING HIGHLIGHTS Growth across all departments of the business, indicating performance beyond the underlying buoyant market conditions Ongoing focus on operating efficiencies and cost reductions Made significant investments into our IT infrastructure and enhanced our digital capabilities to
Slide 8: Strong Revenue Growth Across Diverse Revenue Base
STRONG REVENUE GROWTH ACROSS DIVERSE REVENUE BASE EXCEEDS FY20 BEYOND BUOYANT MARKET CONDITIONS PURCHASE OF NEW FY21 FY20 VEHICLE June year end (A$m) Variance (%) Pro forma Pro forma New Vehicles 1,095 888 23% TRADE IN / USED SERVICE SALE Used Vehicles 239 222 8% Aftermarket 23 19 22% Parts and Acce
Slide 9: Outperformed the Market
OUTPERFORMED THE MARKET OUR NEW VEHICLE UNITS SOLD HAVE GROWN +0.6% (2 YEAR CAGR) AUSTRALIAN MARKET NSW & QLD PETER WARREN 1,102,055 +0.6% (2.8%) 1,042,021 22,396 (0.4%) 22,136 950,186 574,026 569,975 495,487 20,152 2.15% 2.12% ........................................................................
Slide 10: COVID-19 Impacts and Response
COVID-19 IMPACTS AND RESPONSE Peter Warren Sales Volume 4,000,000 FY20 FY21 Lockdown April and May 2020 3,000,000 2,000,000 1,000,000 0 Mar Apr May Jun HOW WE HAVE ADAPTED RESILIENT OPERATING MODEL INVESTMENT IN HUMAN CAPITAL Improved operating efficiencies. Ceased Experience shows that volumes reco
Slide 11: Exceeding Prospectus Forecast
EXCEEDING PROSPECTUS FORECAST FY21 PRO FORMA PBT PERFORMANCE VERSUS PROSPECTUS (A$m) Improvement in rate from 16.9% to 18.0% Includes both the GP & operating cost effects of higher revenue 8.3 0.9 75.7 17.2 (2.0) 6.3 Includes depreciation on Warwick Farm 45.0 Improvement in operating costs ratio and
Slide 12: FY21 Financial Summary
01 About Peter Warren Automotive Holdings 02 FY21 Result Overview 03 FY21 Financial Summary 04 Market Context and Strategy 05 Outlook 06 Questions
Slide 13: FY21 Financial Highlights
FY21 FINANCIAL HIGHLIGHTS IMPROVEMENT ACROSS KEY FINANCIAL METRICS STRONG REVENUE POSITIVE OPERATING STRONG EBITDA STRONG FINANCIAL GROWTH LEVERAGE PERFORMANCE POSITION Pro forma revenue of Gross margin of 18.0% Pro forma EBITDA of Operating cashflow $1,621.2m up 18% (FY20: 16.0%) $108.0m (FY20: $49
Slide 14: FY21 Pro Forma Profit and Loss
FY21 PRO FORMA PROFIT AND LOSS EXCEEDING PROSPECTUS FORECAST IN ALL FINANCIAL METRICS FY21 FY21 FY20 June year end (A$m) Variance (%) Prospectus Variance (%) Pro forma Pro forma Forecast Revenue 1,621.2 1,376.6 18% 1,526.5 6% Gross Profit 292.1 220.9 32% 257.8 13% EBITDA 108.0 49.5 118% 76.0 42% EBI
Slide 15: Improvements in Cost Base Efficiencies
IMPROVEMENTS IN COST BASE EFFICIENCIES EXPENSES AS A % OF REVENUE AHEAD OF PROSPECTUS FORECAST AND PRIOR YEAR 12.4% 11.9% FY21 FY21 FY20 Operating expenses (A$m) Variance (%) Prospectus Variance (%) Pro forma Pro forma Forecast 11.4% Employee benefits expenses 133.3 120.2 11% 131.7 1% Advertising ex
Slide 16: Continued Strong Cash Conversion
CONTINUED STRONG CASH CONVERSION CASHFLOW CONVERSION AT 82.1% 170.7% Pro forma cashflows FY21 FY21 FY20 Variance Variance Prospectus June year end (A$m) Pro forma Pro forma (%) (%) Forecast ~100% EBITDA 108.0 49.5 118% 76.0 42% 84.7% 82.1% Movement in working capital (18.6) 30.1 (10.9) Operating cas
Slide 17: No Corporate Debt
NO CORPORATE DEBT CASH AND DEBT POSITION 30 Jun 21 31 Dec 20 DIVIDEND POLICY A$m Actual Pro forma Mvmt As foreshadowed in the prospectus, no dividend has been declared Cash and cash equivalents 42.9 23.4 19.5 for the year ending 30 June170.8% 2021 Net cash / (debt) 42.9 23.4 19.5 Intention is to tar
Slide 18: Strengthened Balance Sheet
STRENGTHENED BALANCE SHEET 30 June 21 31 Dec 20 1 $43m in cash. No corporate debt at 30 June 2021 A$m Ref Actual Pro forma Mvmt 2 Inventories include new and used cars, parts and accessories Cash and cash equivalents 1 42.9 23.4 19.5 Trade and other receivables 56.8 43.8 13.0 New vehicle inventory i
Slide 19: Market Context and Strategy
01 About Peter Warren Automotive Holdings 02 FY21 Result Overview 03 FY21 Financial Summary 04 Market Context and Strategy 05 Outlook 06 Questions
Slide 20: Large, Growing and Highly Fragmented Market
LARGE, GROWING AND HIGHLY FRAGMENTED MARKET AUSTRALIAN VEHICLE CAR PARC MARKET PREDOMINATELY LOCATED NEW VEHICLE SALES IN AUSTRALIA (NUMBER OF REGISTERED VEHICLES) ACROSS THE EASTERN SEABOARD MARKET SIZE BY STATE (2020 NEW VEHICLE SALES) 1% 21% 917k new vehicles 10% sold in 2020 6% 33% 2% 25% 2% ~$6
Slide 21: Our Strategic Priorities
OUR STRATEGIC PRIORITIES EVOLUTION OF OUR CONTINUED ORGANIC ACQUISITION PROPERTY PORTFOLIO GROWTH OPPORTUNITIES Pursue new acquisition Expansion of current operations in opportunities, with a disciplined Ownership or long-term leases of the sale of new and used vehicles approach to screening based o
Slide 22: Multiple Growth Drivers for FY22
MULTIPLE GROWTH DRIVERS FOR FY22 ACHIEVING OPERATIONAL NEW CAR BUNDLING EFFICIENCIES Positioned to achieve further scale Enhance income streams by benefits in a fragmented and addressing consumer convenience consolidating industry needs across the automotive value Focus on centralising common and ch
Slide 23: Outlook
01 About Peter Warren Automotive Holdings 02 FY21 Result Overview 03 FY21 Financial Summary 04 Market Context and Strategy 05 Outlook 06 Questions
Slide 24: Trading Update and Outlook
TRADING UPDATE AND OUTLOOK TRADING UPDATE Trading in July and August has been impacted by lockdowns in NSW and, to a lesser extent, QLD However, the impact has been mitigated somewhat by a strong new vehicle order bank at 30 June 2021 which has supported the delivery of new vehicles in Q1FY22 We hav
Slide 25: Questions
QUESTIONS
Slide 26: Disclaimer
DISCLAIMER IMPORTANT NOTICE The material in this presentation has been prepared by Peter Warren Automotive Holdings Limited (ASX: PWR) [ABN 615 674 185] (“Peter Warren” or the Company") and is general background information about Peter Warren’s activities current as at the date of this presentation.
Slide 27: Supplementary Materials
SUPPLEMENTARY MATERIALS
Slide 28: Pro Forma Adjustments to Statutory Income Statement
PRO FORMA ADJUSTMENTS TO STATUTORY INCOME STATEMENT Statutory Actual June year end (A$m) FY2021 FY2020 Statutory Pro forma June year end (A$m) FY21 Actual FY21 Prospectus FY20 FY21 Actual FY21 Prospectus FY20 Revenue 1,635.0 1,527.0 1,391.3 1,621.2 1,526.5 1,376.6 Cost of sales (1,329.1) (1,268.7) (
Slide 29: Pro Forma Adjustments to Statutory Income Statement
PRO FORMA ADJUSTMENTS TO STATUTORY INCOME STATEMENT FY21 FY21 FY21 NPAT EBITDA PBT June year end (A$m) Footnote FY21 Prospectus FY20 FY21 Prospectus FY20 FY21 Prospectus FY20 Statutory 37.5 15.4 8.9 102.1 70.4 65.6 54.8 22.4 12.0 Jobkeeper 1 (0.4) (0.4) (9.9) (0.5) (0.5) (14.2) (0.5) (0.5) (14.2) Im
Slide 30: Pro Forma Adjustments to Statutory Cash Flow
PRO FORMA ADJUSTMENTS TO STATUTORY CASH FLOW FY21 FY21 FY20 Prospectus A$m Footnote Actual Actual Variance Forecast Variance Statutory net cash flow before financing and 44.0 59.9 (15.9) 20.4 23.6 taxation Jobkeeper 1 (0.5) (14.2) 13.7 (0.5) (0.0) Offer costs 2 4.7 0.0 0.0 4.2 0.5 Property costs 3 (
Slide 31: Board of Directors
BOARD OF DIRECTORS John Ingram Paul Warren Catherine West Niran Peiris Non-Executive Chair Executive Director Non-Executive Director Non-Executive Director John is an experienced director and Paul, the eldest son of the Company’s Catherine has 25+ years legal, business, Niran has an extensive backgr
Slide 32: Leadership Team
LEADERSHIP TEAM Paul Warren Mark Weaver Bernard Friend Executive Director Chief Executive Officer Chief Financial Officer Paul, the eldest son of the Company’s Mark has 15+ years Automotive experience Bernard is Peter Warren Automotive founder, Peter Warren. Paul joined the including advisory, compl
Slide 33: Investor Relations Contact Details
Investor relations contact details: Maddie Seacombe Citadel-Magnus Phone: +61 2 8234 0114 Email: mseacombe@citadelmagnus.com Address: Suite 27.03, Level 27 420 George Street Sydney NSW 2000 Australia Company website: www.pwah.com.au 33 FY21 Financial results | August 2021
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