Halfords Group Plc · LSE:HFD
Halfords — Investor Presentation (February 2025)
29 slides from Halfords's investor presentation, February 2025
Slide 1: Fusion Garage Services – Investor Visit February 2025
FUSION GARAGE SERVICES Halfords Group plc Investor Visit February 2025
Slide 2: Introducing the Halfords Team
INTRODUCING THE HALFORDS TEAM Today’s speakers: Graham Stapleton Jo Hartley Anthony Caie CEO CFO Transformation & Business Change Director
Slide 3: Introducing the Halfords Team
INTRODUCING THE HALFORDS TEAM Also joining us today: Karen Bellairs Holly Cassell Paul Jacobs Colin Morgan Chief Customer Investor Relations & Operations Director Divisional Director Officer and ESG Director – Garages Retail Garages MD
Slide 4: Agenda
FUSION GARAGES AGENDA HALFORDS & FUSION Unity Place, 1 OVERVIEW 09:30 – 10:30 Milton Keynes The service market The Fusion model Results & rollout Travel time -15 mins Milton Keynes 2 RETAIL STORE VISIT 10:45-11:30 Retail Store Travel Time -15 mins Halfords Garage 3 GARAGE VISIT 11:45 – 12:30 Service
Slide 5: Fusion leverages our key differentiator to unlock sustainably profitable growth
FUSION GARAGES FUSION LEVERAGES OUR KEY DIFFERENTIATOR TO UNLOCK SUSTAINABLY PROFITABLE GROWTH The Motoring Services market is vast and fragmented: a clear opportunity Our offer is unique, enabled by physical infrastructure, technology and data Retail is a critical differentiator which is near
Slide 6: Halfords & the Motoring Services Market
HALFORDS & THE MOTORING SERVICES MARKET
Slide 7: Market Summary
FUSION GARAGES MARKET SUMMARY ⲻSHAREⲻ ⲻCUSTOMERⲻ ⲻMARKETⲻ 12 10 8 £bn 6 4 2 0 Dutiful Delegators Convenience Commanders Halfords National chains Magazine Motorists Local Loyals Motoring Servicing Consumer Tyres OEM / Dealer Local independent Dealership Devotees Passionate Petrol Heads The market is
Slide 8: Customer Summary
FUSION GARAGES CUSTOMER SUMMARY PRIMARY CUSTOMER GROUPS Market size (vol) 12.5m 7.9m Halfords Consideration 78% 69% Gender Female 59% Male 51% Age <45 years 45-64 years 1. In garage – clean, welcoming, friendly 1. Online experience – convenient booking Top 3 needs 2. Convenience – simple booking, sa
Slide 9: Halfords within the Service Market
FUSION GARAGES HALFORDS WITHIN THE SERVICE MARKET Our 350+ retail Access to around half of stores & single the UK car parc, with a group website unique ability to utilise generate millions of data to convert & retain service customers within the interactions Halfords ecosystem. annually. FUSION Our
Slide 10: New Customer Acquisition
FUSION GARAGES NEW CUSTOMER ACQUISITION TRADITIONAL GARAGE BUSINESS Traditional advertising Traditional advertising Price promotion Price promotion Retail Loyalty & Fleet referrals data Higher customer acquisition cost £££ Lower customer acquisition cost £ Garages without the Halfords infrastructure
Slide 11: Leveraging Our Differentiators: The Fusion Model
LEVERAGING OUR DIFFERENTIATORS: THE FUSION MODEL
Slide 12: The Fusion Model – Bletchley Example
FUSION GARAGES THE FUSION MODEL – BLETCHLEY EXAMPLE BEFORE AFTER 12
Slide 13: Model – Bletchley Space Utilisation
FUSION GARAGES THE FUSION MODEL – BLETCHLEY SPACE UTILISATION BEFORE AFTER 4 CAR CAPACITY 7 CAR CAPACITY Office space Office space Tyre storage Tyre storage Equipment Desk & Car Ramp 4 technicians 8 technicians Desk & Equipment Office Office Car Ramp Car Ramp Car Ramp Car Ramp Car Ramp Car Ramp Car
Slide 14: The Fusion Model – Bletchley Workshop
FUSION GARAGES THE FUSION MODEL – BLETCHLEY WORKSHOP 14
Slide 15: The Fusion Model – Bletchley Reception
FUSION GARAGES THE FUSION MODEL – BLETCHLEY RECEPTION 15
Slide 16: The Fusion Model – Retail Site
FUSION GARAGES THE FUSION MODEL – RETAIL SITE 16
Slide 17: The Fusion Model – Operating Model
FUSION GARAGES THE FUSION MODEL – OPERATING MODEL BEFORE AFTER Managing the business Managing Managing the Creating Managing the customers workshop demand business Centre Manager Managing Managing the Creating customers workshop demand Centre Manager Automotive Service Assistant Manager Workshop Con
Slide 18: The Fusion Model – Summary of Fusion
FUSION GARAGES THE FUSION MODEL – SUMMARY OF FUSION Managing the business Centre Manager Updated Halfords branding Managing Managing the Creating customers workshop demand Automotive Service Assistant Manager Workshop Controller Manager Customer Service Advisor (CSA) Technicians x8 “Front of house”
Slide 19: Bletchley Results
THE FUSION MODEL – BLETCHLEY RESULTS
Slide 20: The Fusion Model – Bletchley Sales Mix
FUSION GARAGES THE FUSION MODEL – BLETCHLEY SALES MIX BEFORE AFTER Tyres SMR Tyres SMR Customer type Year on Year sales Fleet +64% Consumer +42% 20
Slide 21: The Fusion Model – Bletchley P&L (Provisional)
FUSION GARAGES THE FUSION MODEL – BLETCHLEY P&L (PROVISIONAL) BEFORE AFTER CHANGE Q3 FY24 Q3 FY25 Change YoY £k % to sales £k % to sales % %pt Sales 204 299 46% Gross Profit 106 52% 175 59% 66% 7% Variable costs -46 -23% -85 -29% 84% -6% Fixed Costs -34 -17% -34 -11% 0% 5% Contribution 25 12% 56 19%
Slide 22: Programme Results & Rollout
THE FUSION MODEL – PROGRAMME RESULTS & ROLLOUT
Slide 23: Fusion Rollout to Date
FUSION GARAGES THE FUSION ROLLOUT TO DATE ⲻTO DATEⲻ Live April Locations National Sheffield, Widnes, Chester, Stockton-on-tees, Bridgwater, 13 12 Blackpool, Bletchley, Exeter, Kidderminster, Peterborough (x2), Sites Bedford, Portsmouth Halfords Reading, Bridgwater, Canterbury, Kings Lynn, Exeter, Ch
Slide 24: Full Fusion Results
FUSION GARAGES THE FULL FUSION RESULTS ⲻSALESⲻ ⲻCONTRIBUTIONⲻ Pre Post Pre Post Sales have improved by c.50% Year on Year Overall contribution forecast to improve by up to 100% 24
Slide 25: Full Fusion Results
FUSION GARAGES THE FULL FUSION RESULTS BEFORE AFTER c 3.5 4.0+ Live examples from Bletchley: “Fantastic service, Sophie was incredibly friendly “Excellent Service, Will be using and helpful. Easiest MOT + repairs I've had in a them again. Sophie and Perry were long time! Will definitely be going bac
Slide 26: Future Rollout – FY26 and Beyond
FUSION GARAGES FUTURE ROLLOUT – FY26 AND BEYOND ⲻSITE SELECTIONⲻ Potential for 6+ ramps supported by 8+ technicians Retail store within customer drive time Specific local considerations e.g. car parking, lease etc ⲻINDICATIVE POTENTIAL ROLLOUTⲻ Total anticipated sites likely to meet criteria: c.150
Slide 27: Summary
SUMMARY
Slide 28: Fusion leverages our key differentiator to unlock sustainably profitable growth
FUSION GARAGES FUSION LEVERAGES OUR KEY DIFFERENTIATOR TO UNLOCK SUSTAINABLY PROFITABLE GROWTH The Motoring Services market is vast and fragmented: a clear opportunity Our offer is unique, enabled by physical infrastructure, technology and data Retail is a critical differentiator which is near
Slide 29: Thank you.
Thank you. For further information, please visit www.halfordscompany.com or contact investor.relations@halfords.co.uk Halfords Group Plc Icknield Street Drive Washford West Redditch Worcestershire B98 0DE
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