Autosports Group Ltd · ASX:ASG
Autosports — Investor Presentation (February 2020)
36 slides from Autosports's investor presentation, Feb 28, 2020
Slide 1: ASG Investor Presentation
ASG Investor Presentation 28 February 2020 1
Slide 2: Agenda
AGEN DA H1 2020FY FINANCIAL RESULT & HIGHLIGHTS ASG STRATEGY & MARKET REVIEW H2 2020FY FOCUS AREAS & OUTLOOK Q & A ADDITIONAL INFORMATION 2
Slide 3: Agenda
AGENDA H1 2020FY FINANCIAL RESULT & HIGHLIGHTS ASG STRATEGY & MARKET REVIEW H2 2020FY FOCUS AREAS & OUTLOOK Q & A ADDITIONAL INFORMATION 3
Slide 4: H1 2020FY Results
H1 2020FY RESULTS STATUTORY RESULT IMPACTED BY NON CASH ACCOUNTING ADJUSTMENTS TO GOODWILL, LEASE LIABILITIES (AASB16 ADOPTION) AND ACQUISITION AMORTISATION 1 NORMALISED REVENUE, NPBT AND NPAT ALL UP ON H1 2019FY INTERIM DIVIDEND MAINTAINED AT 1.9 CENTS PER SHARE ACQUISITIONS OF SYDNEY CITY PRESTIGE
Slide 5: H1 2020FY Financial Result
H1 2020FY FINANCIAL RESULT STATUTORY RESULTS A$m Normalised % Movement Normalised (includes) Non-cash adjustments H1 2019FY on PCP H1 2020FY Total Revenue 862.5 0.5% 866.4 Impairment to the carrying value of goodwill Gross Profit 134.4 3.0% 138.5 $53.8M primarily as a result of a change to Opex
Slide 6: H1 2020FY Financial Trends | Normalised
H1 2020FY FINANCIAL TRENDS | NORMALISED Revenue REVENUE 2,000.0 1,800.0 2014-2019FY revenue growth CAGR 21.8% 1,600.0 1,400.0 817.6 885.6 2014-2019FY new vehicle revenue growth CAGR 1,200.0 23.4% 670.8 1,000.0 800.0 2014-2019FY used vehicle revenue growth CAGR 1,266.4 14.5% 600.0 1,039.2 936.6
Slide 7: Revenue Bridge
REVENUE BRIDGE 1HFY20 Statutory Revenue Growth 900 850 44 839 827 me | E 1 es eee 750 700 650 600 FY19 1H Like for like Impact of PY Greenfield Impact of PY acquisitions Acquisitions in FY20 FY20 1H ee EE | 7 Troup an
Slide 8: H1 2020FY Improving Revenue Mix
H1 2020FY IMPROVING REVENUE MIX Front end ($3.3M) Back end $7.2M Revenue growth driven by acquisitions New vehicle organic growth heavily impacted by product delays and a challenging new car market down $29.1M Used vehicle growth predominantly coming from acquisition of Sydney City Prestige. Orga
Slide 9: Margins Review
MARGINS REVIEW Gross margins continue to grow. EBITDA and NPBT margins under pressure as a result of the falling new car market. NORMALISED GP MARGIN NORMALISED EBITDA AND PBT MARGIN 16.50% 4.0% 3.8% 15.98% 3.4% 3.5% 3.5% 3.3% 3.2% 16.00% 15.65% 2.9% 3.0% 3.0% 15.50% 15.20% 2.5% 2.5% 2.4% 2.3% 14.90
Slide 10: Operating Expenses
OPERATING EXPENSES Growth trends 30% 28% 25% 24% 21% 20% 17% 21% 14% 15% 9.30% 10% 5% 5% 3.60% 3% 0.20% 0.50% 0% 2017 2018 2019 H1 2020 OPEX growth Revenue growth Gross profit Why it has risen Why it will realign Improved facility utilisation will unlock efficiencies and allow New car revenue gr
Slide 11: Cash Flow
CASH FLOW Strong operating cash flows of $14.7M PPE Expenditure $22.6M proceeds from borrowings less $8.2M of o Mercedes-Benz Hornsby underlying property acquisition $12.5M repayments resulting in net debt movement of $14.4M o Silverwater Collision Repair fit-out $1.2M $6M dividend paid o Ma
Slide 12: Balance Sheet
BALANCE SHEET MAJOR MOVEMENTS Balance Sheet SINCE 30 JUNE 2019 31-Dec-18 30-Jun-19 31-Dec-19 Total Borrowings 488,677 474,164 552,217 Cash & Cash Equivalents (11,690) (11,292) (14,083) Net debt up $10.2M to $77.9M Net Debt 476,987 462,872 538,134 o Corporate debt increase of $14.5M. $12.5m of land
Slide 13: Agenda
AGENDA FY2020 H1 FINANCIAL RESULT & HIGHLIGHTS ASG STRATEGY & MARKET REVIEW FY2020 H2 FOCUS AREAS & OUTLOOK Q & A ADDITIONAL INFORMATION 13
Slide 14: ASG Strategy
ASG STRATEGY Since listing ASG has pursued a clear and focused strategy evenly balanced between acquisitions, organic and greenfield growth ASG Strategic Framework 2019/20 Headwinds Opportunities 22 months of falling new car market OEM target reductions will assist restoration of Luxury & Pres
Slide 15: Trivett Alexandria Acquisition
TRIVETT ALEXANDRIA ACQUISTION ASG STRATEGY FIT Luxury Brands – Land Rover, Jaguar, Rolls-Royce, Bentley, Aston Martin and McLaren Sydney market Improving portfolio balance Long term staff Synergies available with Sydney based administration hub and super luxury brands in NSW and QLD SCALE
Slide 16: Luxury Market Update
LUXURY MARKET UPDATE The total new vehicle market has now experienced 22 consecutive months of decline for the first time. Previous cycles have seen the luxury market recover first. The last 7 months have seen a 5.4% growth in the luxury market. 20% 19% Total New Car Market 15% Calendar Year on Year
Slide 17: ASG New Car Revenue by Brand
ASG NEW CAR REVENUE BY BRAND ASG IS WELL PORTFOLIO BALANCE JAGUAR LAND ROVER POSITIONED ASG continues to be focused on improving its Jaguar Land Rover Sydney is ASG’s first ASG’s improved mix of revenue, positions it brand portfolio balance: Jaguar Land Rover site well for improvements in the
Slide 18: Used Cars – Growth with Opportunity
USED CARS – GROWTH WITH OPPORTUNITY Hub strategy continues to drive positive growth in Used Cars FCAI* estimate the used car market at 2.2m units per annum. Used Cars Double the new car market Used car growth was driven by the acquisition of Sydney City Prestige ASG operates a hub strategy in Sydn
Slide 19: Back-End – Collision and Panel Repair Growth
BACK-END – COLLISION AND PANEL REPAIR GROWTH A SG ' s s t r a t egy to g row ba ck -end r evenue s t rea ms i s o n t r a ck an d d ri ving b ot h r even u e a n d i mp r oved g r os s ma rg i n s f or the b us iness. Bac k-end revenue g rowt h cont i n ues t o i mpr ove A S G 's s t ren g t h , f l
Slide 20: Agenda
AGENDA FY2020 H1 FINANCIAL RESULT & HIGHLIGHTS ASG STRATEGY & MARKET REVIEW FY2020 H2 FOCUS AREAS & OUTLOOK Q & A ADDITIONAL INFORMATION 20
Slide 21: H2 2020FY Focus Areas
H2 2020FY FOCUS AREAS H2 2020FY Focus Areas At least maintain new vehicle market share in the luxury segment core business Continue to drive used vehicle growth through improved utilisation of Sydney City Prestige assets Work on reducing our Op Ex ratio Refocus on reducing overall vehicle st
Slide 22: FY2020 H1 Results Recap
FY2020 H1 RESULTS RECAP REVENUE CONTINUES TO GROW VIA ACQUISITION ASG’S LIKE FOR LIKE REVENUE AHEAD OF MARKET TREND GROSS MARGINS GROW ON IMPROVED REVENUE MIX OP EX HIGHER DUE TO ACQUISITIONS AND FACILITY INVESTMENTS IMPAIRMENT TO THE CARRYING VALUE OF GOODWILL $53.8M AS A RESULT OF A CHANGE TO ASG’
Slide 23: FY2020 H2 Outlook
FY2020 H2 OUTLOOK LUXURY MARKET IS EXPECTED TO CONTINUE A SLOW RECOVERY IN H2 2020FY TRIVETT ALEXANDRIA (FEBRUARY 2020) AND MERCEDES-BENZ HORNSBY ACQUISITIONS WILL SUPPORT FULL YEAR REVENUE GROWTH GROSS PROFIT MIX WILL CONTINUE TO IMPROVE WITH THE OPENING OF THE AUDI COLLISION REPAIR CENTRE IN SILVE
Slide 24: Agenda
AGENDA FY2020 H1 FINANCIAL RESULT & HIGHLIGHTS ASG STRATEGY & MARKET REVIEW FY2020 H2 FOCUS AREAS & OUTLOOK Q & A ADDITIONAL INFORMATION 24
Slide 25: Agenda
AGENDA FY2020 H1 FINANCIAL RESULT & HIGHLIGHTS ASG STRATEGY & MARKET REVIEW FY2020 H2 FOCUS AREAS & OUTLOOK Q & A ADDITIONAL INFORMATION 25
Slide 26: ASG Brand Portfolio
ASG BRAND PORTFOLIO PRESTIGE(6) USED CAR _ DEALERSHIPS (3) . Mercedes-Benz ® EB] Passenger = = Mercedes-Benz E] Vong (WW E] WENTLEY. HONDA Oo EE W) A ASTON MARTIN Sean) a GonD Metaren” EJ ) Audi BENTLEY [ROLLS] Ro (Royce) © BMW Motorrad [2 | 5 a8 Qroup a3 no
Slide 27: FY2020 H1 Statutory Financials
FY2020 H1 STATUTORY FINANCIALS Statutory History Aggregated accounts (statutory) FY19 H1 $m FY18 H1 FY19 H1 Restated FY20 H1 Total Revenue 792.7 826.6 826.6 838.6 Gross Profit 123.3 134.4 134.4 138.6 EBITDA 26.4 22.4 37.1 37.4 EBIT 22.3 17.2 18.1 (37.0) NPBT 16.9 8.1 5.2 (47.5) NPAT 12.2 5.4 3.3 (50
Slide 28: Capital Structure
CAPITAL STRUCTURE Normalised 31st December 2019 Capital Structure Facility $m $m $m FY 2019 FY 2019 H1 1H FY 2020 Capital Loans 74.8 71.8 89.2 Other Loans & Hire Purchase 4.2 4.9 2.8 Cash (11.3) (11.7) (14) Net debt / (Cash) (Excluding floorplan finance) 67.7 65.0 77.9 Net Debt (Cash) / EBITDA (Adju
Slide 29: FY2020 H1 Normalised Financial Result
FY2020 H1 NORMALISED FINANCIAL RESULT Normalised Trading Result $m 1H 2019 1H 2020 Growth on PCP New Vehicles 478.5 463.9 -3.0% BASIS OF PREPARATION Used Vehicles 208.9 224.9 7.7% The following items are excluded from normalised Finance & Insurance 10.7 12.7 18.4% result: Aftermarket 5.9 6.2 5.6% Se
Slide 30: FY2020 H1 AASB16 Leases Impact
FY2020 H1 AASB16 LEASES IMPACT H1 2019FY Statutory H1 2020FY Statutory Pre After Pre After A$m AASB16 AASB16 AASB16 A$m AASB16 AASB16 AASB16 Total Revenue 826.6 826.6 Total Revenue 838.59 838.59 Gross Profit 134.4 134.4 Gross Profit 138.56 138.56 Opex (112.0) 14.6 (97.3) Opex (118.1) 16.9 (101.2) EB
Slide 31: H1 FY2020 Statutory to Pro Forma Reconciliation
H1 FY2020 STATUTORY TO PRO FORMA RECONCILIATION Non-cash 31
Slide 32: H1 2020FY Statutory to Pro Forma Reconciliation
H1 2020FY STATUTORY TO PRO FORMA RECONCILIATION 32
Slide 33: ASX Announcement | 30 January 2020
ASX ANNOUNCEMENT | 30 JANUARY 2020 33
Slide 34: ASX Announcement | 12 February 2020
ASX ANNOUNCEMENT |12 FEBRUARY 2020 34
Slide 35: ASX Announcement | 25 February 2020
ASX ANNOUNCEMENT |25 FEBRUARY 2020 35
Slide 36: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This presentation contains summary information about Autosports Group Limited (ACN 614 505 261) (ASG) and its activities current as at the date of this presentation. The information in this presentation is of general background and does not purport to be complete. It
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