Slide 1: 2015 Results
2015 RESULTS 15 MARCH 2016
Slide 2: Stefan Bomhard, Group Chief Executive
STEFAN BOMHARD GROUP CHIEF EXECUTIVE
Slide 3: 2015 Highlights
2015 HIGHLIGHTS Robust revenue, profit, margin Executive team strengthened by growth and cash conversion appointments and promotions Further dividend growth and Positive local drivers in Singapore, a £100m share buyback Hong Kong and Emerging Markets New strategic objectives established 3
Slide 4: Robust 2015 Performance
ROBUST 2015 PERFORMANCE REVENUE OPERATING CASH +7.8% CCR CONVERSION OF +2.0% ACR 101% OPERATING PROFIT £182.5m +10.3% CCR CASH RETURNED +7.8% ACR TO SHAREHOLDERS UNDERPINNED BY OUR STRONG BALANCE SHEET Note: All numbers and growth rates pre exceptional items and property profits 4
Slide 5: Balanced Set of Income Sources
BALANCED SET OF INCOME SOURCES TRADING PROFIT CONTRIBUTION BY REGION Europe 5% UK 18% North Asia 23% Emerging South Asia Markets 15% Australasia 14% 25% Note: 2015 trading profit contribution %, pre exceptional items and at constant currency 5
Slide 6: Strength Across Portfolio
STRENGTH ACROSS PORTFOLIO 2015 TRADING PROFIT GROWTH % 30 +26.6% 25 20 +18.3% 15 +13.1% +10.7% 10 5 -4.4% -2.8% 0 -5 Europe UK North Asia Australasia Emerging Markets South Asia GROUP OPERATING PROFIT +10.3% Note: Growth rates pre exceptional items and property profits, at constant currency 6
Slide 7: Consistency of Performance
CONSISTENCY OF PERFORMANCE REVENUE OPERATING PROFIT* ADJUSTED EPS** DIVIDEND PER SHARE £324.7m £6,836m 52.1p 20.9p £301.1m 50.2p 20.1p £6,703m £280.7m 43.5p £259.8m 17.4p £6,525m £244.4m 39.1p 14.5p 35.5p £6,085m 11.0p £5,826m 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 201
Slide 8: Christopher Davies, Group Financial Controller
CHRISTOPHER DAVIES GROUP FINANCIAL CONTROLLER
Slide 9: Summary Profit & Loss Account
SUMMARY PROFIT & LOSS ACCOUNT 2015 2014 CHANGE CHANGE £M £M ACR CCR Sales 6,836.3 6,702.7 2.0% 7.8% Operating profit 275.2 271.0 1.5% 1.6% Underlying operating profit* 324.7 301.1 7.8% 10.3% Underlying profit before tax* 312.1 285.9 9.2% 10.5% Tax rate (%)** 24.0 24.0 - - Basic adjusted EPS (p) 52.1
Slide 10: Gross Margin and Overhead Analysis
GROSS MARGIN AND OVERHEAD ANALYSIS GM 14.5% OVERHEADS 9.7% +20 BPS YoY OF SALES, FLAT YoY* Market portfolio mix effect Fixed cost leverage Growth in high margin Aftersales Higher IT amortisation *Note: 2014 included a property disposal profit of £17.3m. YoY change excludes this from the prior year b
Slide 11: Positive Group Mix Effect
POSITIVE GROUP MIX EFFECT REGIONAL TRADING MARGIN GROUP Australasia 7.4% +20 BPS +20 BPS North Asia 10.7% -40 BPS UK 2.3% -30 BPS South Asia* 10.4% +100 BPS Emerging Markets 4.6% +130 BPS Europe 3.3% - * South Asia 2014 trading margin excludes property disposal profit 11
Slide 12: Group Trading Profit
GROUP TRADING PROFIT Reported Growth +2.9% Underlying Growth +8.4% 400 10.5 13.1 350 1.3 7.2 344.6 354.7 300 (17.3) 327.3 (2.9) (1.8) £m 250 200 150 2014 Property 2014 Europe UK Australasia Emerging South Asia North Asia 2015 reported profit underlying Markets reported Note: All numbers at actual ex
Slide 13: Net Finance Costs
NET FINANCE COSTS 2015 2014 £M £M Bank and loan interest 1.1 1.1 Stock holding interest (18.4) (18.6) Interest on private placement notes (3.1) (2.9) Pension interest net & other 6.2 5.6 Interest excluding mark to market (14.2) (14.8) Mark to market gain 0.9 1.5 Total net finance costs (13.3) (13.3)
Slide 14: Impact of Currency
IMPACT OF CURRENCY REVENUE -5.8% OPERATING PROFIT* -2.5% *Note: 2014 included a property disposal profit of £17.3m. YoY change excludes this from the prior year base. %’s are differences between ACR and CCR on slide 4 14
Slide 15: Cash Flow
CASH FLOW 2015 2014 2015 2014 2015 2014 OPERATING CASH FLOW FREE CASH FLOW NET CASH £M £M £M £M £M £M Operating profit 324.7 318.4 Operating cash flow 328.4 405.8 Free cash flow 177.6 290.7 Transactions in own Depreciation / amortisation 48.5 44.4 Net interest (17.4) (17.8) shares (net) (110.3) (97.
Slide 16: Guidance – Full Year 2016
GUIDANCE – FULL YEAR 2016 Tax rate Interest cost 24-25% c£15m (excl. mark to market) Capital Net cash expenditure £170m £85m 16
Slide 17: Business Update
BUSINESS UPDATE
Slide 18: Australasia: Strong 2015 Performance
AUSTRALASIA STRONG 2015 PERFORMANCE OUTPERFORMING NON-MINING STATES PREMIUMISATION WITH SUBARU DRIVING GROWTH OF DEMAND Subaru Volume +7.6% New South Wales +6.9% Premium Brands growing Market +3.8% faster than the market Queensland +5.4% Victoria +4.2% Western Australia -7.9% 18
Slide 19: Subaru Australia Brand Growth Strategy
SUBARU AUSTRALIA BRAND GROWTH STRATEGY Adding a local layer to our partner’s global marketing to drive brand share 19
Slide 20: North Asia: Market Leadership Strengthened
NORTH ASIA MARKET LEADERSHIP STRENGTHENED Multi-year diesel commercial vehicle (DCV) replacement scheme drove New volume growth GROWTH ACROSS MARKET MARKET +11.6% VALUE DRIVERS GROWTH SHARE MODERATED +1.1% Good gross profit growth in +6.1% New, Service & Parts IN H2 2015 +280 BPS H1 H2 FY 20
Slide 21: UK: Inchcape's Brands Taking Share
UK INCHCAPE’S BRANDS TAKING SHARE UK LFL Revenue +9.5% LOUIS FALLENSTEIN Used vehicle margin pressure limited leverage APPOINTED UK CEO OCTOBER 2015 New vehicle growth feeding Aftersales 21
Slide 22: South Asia: Market Rebounding
SOUTH ASIA MARKET REBOUNDING CAR PARC AGE IMPROVED H2 2015 PROFILE (k units) PERFORMANCE 330 273 +47.5% +3.0% < 7 years > 7 years H1 Trading H2 Trading Profit Profit 55% AGED > 7 YEARS Note: All numbers and growth rates pre exceptional items and property profits 22
Slide 23: Emerging Markets: Strength from Our Diversification
EMERGING MARKETS STRENGTH FROM OUR DIVERSIFICATION NEW DIRE DAWA RESILIENT PERFORMANCE STRONG PROFIT Sales and Aftersales IN RUSSIA GROWTH facility in Ethiopia Defensive Aftersales In Poland, Romania supporting growth and Bulgaria Improved vehicle margins 23
Slide 24: Europe: Resilient Performance
EUROPE RESILIENT PERFORMANCE Market share leader in Greece: 12.3% (+30 BPS) Belgian market growth driven by the fleet segment Strong performance in Finland ARIS ARAVANIS APPOINTED CEO CONTINENTAL EUROPE 24
Slide 25: Robust 2015 revenue and profit growth
Robust 2015 Strength from Strong cash New strategic revenue and our diversified generation, objectives profit growth portfolio of £182.5m established markets returned to shareholders 25
Slide 26: Looking Ahead
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Slide 27: 2016 Outlook
2016 OUTLOOK Attractive local level drivers across our revenue streams SOLID and some of our markets CONSTANT CURRENCY Growth in Aftersales: Expansion in 1-5 year Car Parc PERFORMANCE across the majority of our markets EXPECTED IN 2016 New strategic focus to capture the opportunities for our Group a