Autocanada Inc. · TSX:ACQ
Autocanada — Q3 2023 Earnings Presentation
25 slides from Autocanada's earnings presentation, Nov 9, 2023
Slide 1: AutoCanada Investor Presentation November 2023
AUTOCANADA (TSX:ACQ) INVESTOR PRESENTATION NOVEMBER 2023
Slide 2: Forward-Looking Statements and Non-GAAP and Other Financial Measures
Forward-Looking Statements and Non-GAAP and Other Financial Measures Forward-Looking Statement Certain information contained in this presentation is forward-looking information within the meaning of applicable Canadian securities legislation. The use of any of the words “could”, “expect”, “believe”,
Slide 3: A Leader Within the Personal Transportation Ecosystem
AUTOCANADA INVESTOR PRESENTATION | NOVEMBER 2023 AUTOCANADA OVERVIEW A Leader Within the $ 6.3B $ 256M Revenue1 TTM Adjusted EBITDA1, 2 TTM Personal Transportation 28 1.1M Ecosystem Automotive Brands1 Service & Collision Repair Orders1, 2 TTM • Dynamic, diversified and consumer-centric business mode
Slide 4: Capital Market Profile
AUTOCANADA INVESTOR PRESENTATION | NOVEMBER 2023 The Only Publicly Listed Automotive Dealership Group In Canada Capital Market Profile Stock Quote and Capitalization Table Ticker: TSX:ACQ Market Cap: $632.8 M1 Last Price: $26.801 Net Debt: $442.1 M2 52 Week Hi/Lo: $30.80/$15.141 Enterprise Value: $1
Slide 5: Company Profile
AUTOCANADA INVESTOR PRESENTATION | NOVEMBER 2023 Diversified Brand Mix With Cross Boarder and Coast-to-Coast Operations Company Profile Geographically Diversified with a Healthy Brand Mix High-Performing Dealerships 2022 Dealership Awards Dealership BMW Montreal Overall BMW Retailer of the Year Rank
Slide 6: Company History
AUTOCANADA INVESTOR PRESENTATION | NOVEMBER 2023 Company History $100.00 $90.00 $80.00 $70.00 SHARE PRICE $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $- 2018 2021 Acquisition of 14 stores Acquisition of in Illinois in Q2; Paul AutoPoint 2006 2010 2014 Antony appointed Group adds 11 IPO as an income fu
Slide 7: Recently Expanded Leadership Team
Management Team With Proven Track Record Driving Vision & Strategy Recently Expanded Leadership Team Paul Antony Azim Lalani Peter Hong Jeffrey Thorpe Brian Feldman Drew Forret Executive Chairman Chief Financial Officer Chief Strategy Officer & General Counsel President, North America Chief Operatin
Slide 8: Environment, Social & Governance (ESG) Overview
Environment People Environment, Social & Governance • We offer a variety of hybrid and electric- • We strive to provide our employees with powered vehicles which generate far fewer competitive compensation, meaningful and emissions into the atmosphere. challenging work, an engaging and collaborative
Slide 9: Investment Highlights
AUTOCANADA INVESTOR PRESENTATION | NOVEMBER 2023 1. Scale and Durability Provides Opportunity For Margin Expansion and Sustainable Growth Investment Highlights • Transportation solutions addressing the full lifecycle of consumer mobility and allowing operations to adjust to changing market conditio
Slide 10: Total Addressable Market >US$850 BB
Large and Fragmented Total Addressable Market >US$850 BB NEW VEHICLE MARKET U.S.7 NEW VEHICLE MARKET CANADA7 Market Provides Ample 0.1% 1.8% 8.9% 9.6% Growth Potential > 3,700 OEM Franchise Dealerships in Canada 1 91.0% 88.6% •1.5 MM New Vehicles1 •2.9MM Used Vehicles1 •CAD$197.9 MM Total Sales2 Aut
Slide 11: AutoCanada Has Considerable Runway For Growth
AutoCanada Has Considerable Runway For Growth Accretive growth through M&A with the objective of accelerating shareholder value creation. Opportunity Target Regions Disciplined, Realizing Is Significant And End Markets Flexible M&A Synergies Targeting OEM Franchise Dealerships and Focus on high-ROI
Slide 12: AutoCanada Growth Pillars
AutoCanada Growth Pillars New Light Used Light Parts, Service Finance & Vehicle Vehicle & Collison Insurance 39% TTM Sales 43% TTM Sales 12% TTM Sales 6% TTM Sales 20% TTM Gross Profit 11% TTM Gross Profit 37% TTM Gross Profit 32% TTM Gross Profit • OEM Franchise Dealerships are local • Used light v
Slide 13: Operation Optimization
AUTOCANADA INVESTOR PRESENTATION | NOVEMBER 2023 Maximize Gross Profit • Ensure optimal capture of all revenue generating opportunities in our stores. Operation Optimization • Implement best practices to reduce performance variance across the platform. • Modernize Canadian automotive retail for cons
Slide 14: Maximize Gross Profit: Used Vehicle Sourcing
AUTOCANADA INVESTOR PRESENTATION | NOVEMBER 2023 Maximize Gross Profit Enhance Used Vehicle Sourcing & Speed To Market Days To Sell GPU 0-30 $2,389 Lack of new inventory and corresponding new sales volume has created a shortage of used inventory. 31-60 $1,922 • 10 We Buy Your Car's (WBYC’s) per Stor
Slide 15: Maximize Gross Profit: F&I Best Practices & Fixed Operations
AUTOCANADA INVESTOR PRESENTATION | NOVEMBER 2023 F&I GPU2 NEW BY STORE1 Maximize Gross Profit F&I Best Practices & $6,000 $5,000 Fixed Operations $4,000 $3,000 Optimization $2,000 $1,000 $0 Performance bandwidth in F&I GPU1,2 at the store level F&I GPU2 USED BY STORE1 currently has significant dispe
Slide 16: Modernizing Canadian Automotive Retail
AUTOCANADA INVESTOR PRESENTATION | NOVEMBER 2023 Modernizing Canadian Maximize Gross Profit Automotive Retail • AutoCanada and Kijiji strategic partnership includes the integration of consumer solutions developed by AutoCanada. These solutions include providing Kijiji's users with the ability to pur
Slide 17: Optimize Cost Structure
AUTOCANADA INVESTOR PRESENTATION | NOVEMBER 2023 Optimize Cost Structure Focus On ROI Across The Platform Creating A Growth Oriented, Cost-Effective Organization Drawing on the collective experience of the executive team to execute a multi-year cost transformation, substantially closing the gap to p
Slide 18: Modernize Corporate Infrastructure
AUTOCANADA INVESTOR PRESENTATION | NOVEMBER 2023 Creating Modernize Corporate Economies of Scale Infrastructure Geographic Leadership Platform Vice Presidents reorganized by geography to allow local managers to foster strong collaborative teams and tailor their approach to the local market to improv
Slide 19: Financial Review
FINANCIAL REVIEW
Slide 20: Q3 2023 Results Overview
AUTOCANADA INVESTOR PRESENTATION | NOVEMBER 2023 Q3 2023 Results Overview Financial Review Third Quarter Results ($M, unless otherwise noted) Q3 2023 Q3 2022 Change Consolidated Revenue 1,657.4 1,623.9 +2.1% Gross Profit % 1 17.5% 16.8% +0.7 ppts Adjusted EBITDA1 66.7 76.4 -12.6% Adjusted EBITDA1% 4
Slide 21: Income Statement Highlights
AUTOCANADA INVESTOR PRESENTATION | NOVEMBER 2023 Q3 2023 Results Overview Q3/2022 Income Statement Highlights Q3/2023 Financial Review TOTAL REVENUE ADJUSTED EBITDA1 FULLY DILUTED EPS $1,623.9 M $1,657.4 M $76.4 M $1.16 $0.81 $66.7 M Q3/2022 Q3/2023 Q3/2022 Q3/2023 Q3/2022 Q3/2023 Growth Q3/23 vs. Q
Slide 22: Q3 2023 Results Continued: Business Mix
AUTOCANADA INVESTOR PRESENTATION | NOVEMBER 2023 Q3 2023 Results Continued 2018 TTM Canadian Business Mix Highlights 21.5% Brand Segment Revenue Segment Retail Unit 8.5% Segment 57.2% Revenue % % Retail Unit % Sales % Financial Review Import Honda 31% 5% 40% 7% Hyundai 9% 11% 44.1% Kia 2% 3% Nissan
Slide 23: Geographic Mix and Adjusted EBITDA
AUTOCANADA INVESTOR PRESENTATION | NOVEMBER 2023 Q3 2023 Results Continued Geographic Mix Highlights Adjusted EBITDA Margin1 Adjusted EBITDA1 Financial Review -2.2 CONSOLIDATED ADJUSTED EBITDA1 ($M) 5.4% 4.7% TTM Consolidated Adjusted EBITDA1 $256 million 4.0% 3.6% 94.1 2.9% TTM Canadian Operations
Slide 24: Leverage Profile
AUTOCANADA INVESTOR PRESENTATION | NOVEMBER 2023 Leverage Profile Financial Review Total Net Funded Debt to Bank EBITDA Leverage Ratio of 2.18 DISCIPLINED MANAGEMENT OF LEVERAGE TOTAL NET FUNDED DEBT Q3 2023 ($millions) Revolving term facility - Credit Facility 164.2 Senior Unsecured Notes 345.2 Oth
Slide 25: Thank You
MAutoCanada THANK YOU