Inchcape Plc · LSE:INCH
Inchcape — FY 2024 Earnings Presentation
32 slides from Inchcape's earnings presentation, Mar 4, 2025
Slide 1: FY 2024 Results & Medium Term Targets
FY 2024 RESULTS & MEDIUM TERM TARGETS 4 March 2025
Slide 2: Agenda
Inchcape 2 Agenda Overview 2024 Medium Term Summary and and strategic Financial Results targets FY 2025 outlook context Duncan Tait Adrian Lewis Adrian Lewis Duncan Tait Chief Executive Chief Financial Officer Chief Financial Officer Chief Executive
Slide 3: Key takeaways from today
Inchcape 3 Key takeaways from today Another year of Disciplined approach Medium term target strategic, operational to capital allocation - to generate £2.5bn and financial new £250m share in Free Cash Flow - progress buyback driving >10% EPS CAGR + dividends
Slide 4: Medium term target: deliver >10% EPS CAGR to 2030
Inchcape 4 Medium term target: deliver >10% EPS CAGR to 2030 Supported by a clear investment case: The leading global automotive …with an attractive financial …driving shareholder value Distributor… profile… ▪ Long-term, diversified OEM ▪ Growth driven by market ▪ Clear dividend policy portfolio out
Slide 5: Our pillars to drive diversified growth: Scale and Optimise
Inchcape 5 Our pillars to drive diversified growth: Scale and Optimise Scale: 230 Distribution contracts across c.40 8 acquisitions since 2019, driving market Market-leading technology capabilities diverse markets share gains and growth Optimise: Non-core asset disposals, raising Disciplined OEM and
Slide 6: Financial Results
2024 FINANCIAL RESULTS Adrian Lewis, Group CFO
Slide 7: 2024: Progress across key financial metrics
Inchcape 7 2024: Progress across key financial metrics Revenue: Profitability: Balance sheet Shareholder returns: & cash: £9.3bn £444m £462m 71.3p Reported revenue Adjusted PBT Free cash flow Adjusted basic EPS +5% in constant currency 151% FCF:PAT conversion1 (7)% from FY 2023 +4% +2% 6.3% £190m 0.
Slide 8: Revenue: Growth driven organically and by acquisitions
Inchcape 8 Revenue: Growth driven organically and by acquisitions Europe Americas Translational FX & Africa (4)% 11% M&A 2% FY 2024 (5)% APAC £9.8bn (6)% 0% Constant currency FY 2023 £9.4bn Reported 2% FY 2024 £9.3bn Group organic growth Reported 4% Constant currency growth Where appropriate, figure
Slide 9: Operating Margins: Continued resilience
Inchcape 9 Operating Margins: Continued resilience FY 2023 Gross 6.6% Margins Regional mix Reported (20)bps Translational FX Stable overhead: FY 2024 revenue ratio (10)bps 6.4% ▪ Strong cost Constant management currency FY 2024 ▪ Derco synergies 6.3% -bps Reported Where appropriate, figures stated b
Slide 10: APAC: Growth from acquisitions, resilient margins
Inchcape 10 APAC: Growth from acquisitions, resilient margins Reported Reported revenue £m operating profit £m 2,995 2291 235 2,827 2023 2024 2023 2024 Organic growth % +16% 0% Adjusted operating 8.1%1 7.8% Reported % +21% +6% margin % FY 2024 revenue: FY 2024 operating margin: FY 2025 outlook: ▪ Ov
Slide 11: Americas: Improved performance in H2 2024
Inchcape 11 Americas: Improved performance in H2 2024 Reported Reported revenue £m operating profit £m 3,746 3,265 256 207 2023 2024 2023 2024 Organic growth % +7% (4)% Adjusted operating 6.8% 6.3% Reported % +153% (13)% margin % FY 2024 revenue: FY 2024 operating margin: FY 2025 outlook: ▪ Robust p
Slide 12: Europe & Africa: Strong growth, market outperformance
Inchcape 12 Europe & Africa: Strong growth, market outperformance Reported Reported revenue £m operating profit £m 135 142 2,809 3,003 2023 2024 2023 2024 Organic growth % +21% +11% Adjusted operating 4.8% 4.7% Reported % +23% +7% margin % FY 2024 revenue: FY 2024 operating margin: FY 2025 outlook:
Slide 13: Disclosure update: Inchcape market tracker
Inchcape 13 Disclosure update: Inchcape market tracker Quarterly disclosure Regional Market Data Appendix ▪ Inchcape total addressable Disclosure of top 4 markets by region of total industry v olumes (TIV) by region market (TAM) The data below is based on new car distribution v olumes (passenger v e
Slide 14: Distribution contracts: building scale and diversification
Inchcape 14 Distribution contracts: building scale and diversification Distribution contract dynamics: Contracts won, FY21 to FY24: 22 (4) 230 40+ 212 85% Average per contract contribution 190 Chinese at maturity (Yr 5): OEMs Market share: At least 2% 140 Revenue range: £20m - £30m 2021 2022 2023 Wi
Slide 15: Income statement: key financials
Inchcape 15 Income statement: key financials Lower Net Finance Costs driven by positive impact of reduction in net debt £m (unless otherwise stated) FY 2023 FY 2024 Adjusting items Revenue 9,382 9,263 ▪ Acquisition & integration costs £42m Adjusted Operating Profit 620 584 – Inc. £32m Derco, largely
Slide 16: Net debt: Substantially reduced
Inchcape 16 Net debt: Substantially reduced 2024 highlights: Net Cash / (Debt) bridge (£m) ▪ FCF of £462m 396 ▪ FCF: PAT conversion of 151% Dividend ▪ Strong working capital Share performance - inflow of £195m Buyback £0m ▪ Cash proceeds from non-core (294) FX (190) disposals 462 Other ▪ Net debt of
Slide 17: 2024 summary: Progress against key financial metrics
Inchcape 17 2024 summary: Progress against key financial metrics Delivering top line High returns: growth: 4% 27% Revenue growth ROCE Resilient margins: Profit growth: 6.3% 5% PBT growth, Operating margins at constant currency Highly cash generative: Leverage reduced: £462m 0.3x FCF generated Closin
Slide 18: Medium Term Targets
Inchcape 18 MEDIUM TERM TARGETS Adrian Lewis, Group CFO
Slide 19: Medium term targets: 2025 – 2030, through-the-cycle
Inchcape 19 Medium term targets: 2025 – 2030, through-the-cycle Key value drivers: Driving returns Disciplined capital Delivering and growth: allocation: shareholder value: Market outperformance 3%-5% organic volume CAGR Dividends 40% of EPS >10% EPS CAGR c.6% + dividends Resilient operating £2.5 bi
Slide 20: Growth: organic volume CAGR of 3% - 5%
Inchcape 20 Growth: organic volume CAGR of 3% - 5% Growth Drivers: Volume Growth Target: Inchcape TAM: broadly flat to 10.8m in 2024 Organic volume CAGR 3.0% 3% - 5% Market growth: 1% - 2% Market outperformance: 2% - 3% 1.6% M&A `` 2019 2024 Value-accretive acquisitions Source: IHS, Inch TIV defined
Slide 21: Operating margins of c.6%: resilience through-the-cycle
Inchcape 21 Operating margins of c.6%: resilience through-the-cycle Product areas Gross Profit Gross Operating costs Operating Operating margin Margin margin target Revenue contribution Profile Optimise Key drivers 7% Vehicles: c.85% Employees Tailwinds: Revenue contribution* ▪ Economies of scale Pr
Slide 22: Cash generation: £2.5bn, 100% PAT conversion rate
Inchcape 22 Cash generation: £2.5bn, 100% PAT conversion rate Our track record of Free Cash Flow generation1: Cash Generation Guidance: 100% FCF:PAT conversion 500 Capital-light Working capital 400 operating model optimisation leveraging third party in newly acquired dealer networks businesses 300 2
Slide 23: Our updated capital allocation policy
Inchcape 23 Our updated capital allocation policy Dividends Committed to on-going 40% annual share buybacks payout of basic New £250m programme adjusted EPS for FY 2025 Value-accretive M&A Potential to invest in bolt-on acquisitions Net debt to adjusted EBITDA limit of 1x (pre IFRS16)
Slide 24: Medium term targets: 2025 – 2030, through-the-cycle
Inchcape 24 Medium term targets: 2025 – 2030, through-the-cycle Key value drivers: Driving returns Disciplined capital Delivering and growth: allocation: shareholder value: Market outperformance 3%-5% organic volume CAGR Dividends 40% of EPS >10% EPS CAGR c.6% + dividends Resilient operating £2.5 bi
Slide 25: Summary and FY 2025 Outlook
SUMMARY AND FY 2025 OUTLOOK Duncan Tait, Group CEO
Slide 26: FY 2024: continued strategic, operational & financial progress
Inchcape 26 FY 2024: continued strategic, operational & financial progress The world’s leading independent Resilient performance in FY 2024, automotive Distributor with strong balance sheet ▪ Record of 22 contract wins Revenue growth: Adjusted PBT: ▪ Divestments of non-core assets 4% £444m ▪ Launch
Slide 27: Medium term targets: 2025 – 2030, through-the-cycle
Inchcape 27 Medium term targets: 2025 – 2030, through-the-cycle Key value drivers: Driving returns Disciplined capital Delivering and growth: allocation: shareholder value: Market outperformance 3%-5% organic volume CAGR Dividends 40% of EPS >10% EPS CAGR c.6% + dividends Resilient operating £2.5 bi
Slide 28: FY 2025 outlook: another year of growth expected
Inchcape 28 FY 2025 outlook: another year of growth expected RESILIENT SHORT-TERM KEY DYNAMICS: HIGHER EPS GROWTH – OUTLOOK DRIVEN BY: ▪ Product cycles and ▪ Another year of ramp-up of new ▪ Profit growth growth expected contracts skewing ▪ New £250m share growth to H2 2025 ▪ At prevailing foreign b
Slide 29: Q&A
_ inchcape Q&A
Slide 30: Key takeaways from today
Inchcape 30 Key takeaways from today Another year of Disciplined approach Medium term target strategic, operational to capital allocation - to generate £2.5bn and financial new £250m share in Free Cash Flow - progress buyback driving >10% EPS CAGR + dividends
Slide 31: Appendix
@®inchcape APPENDIX
Slide 32: FY 2024: Distribution contract wins and exits
Inchcape 32 FY 2024: Distribution contract wins and exits Contracts won in FY 2024: Contract exits in FY 2024: OEM brand Market OEM brand Market Ford Estonia Geely Chile JAC Trucks Columbia JAC Chile Changan Caribbean Citroen Peru Forland Ecuador Chevrolet Bolivia Foton Australia Harley Davidson Chi