Autosports Group Ltd · ASX:ASG

Autosports — Investor Presentation (August 2018)

31 slides from Autosports's investor presentation, Aug 27, 2018

  1. Slide 1: ASG Full Year Investor Presentation

    ASG Full Year Investor Presentation August 2018 1

  2. Slide 2: Presenting Today

    PRESENTING TODAY Nick Pagent Aaron Murray Managing Director and CEO Chief Financial Officer  Group CEO since formation of the Autosports Group in  Group CFO since 2009 after joining the group in 2007 2006  21 years’ of motor vehicle industry experience gained  22 years’ of motor vehicle industry

  3. Slide 3: Agenda

    AGENDA FY 2018 HIGHLIGHTS FY 2018 GROUP PERFORMANCE OVERVIEW FY 2018 STRATEGIC UPDATE FY 2019 OUTLOOK Q & A ADDITIONAL INFORMATION 3

  4. Slide 4: FY 2018 Highlights

    FY 2018 HIGHLIGHTS FY 2018 GROUP PERFORMANCE OVERVIEW FY 2018 STRATEGIC UPDATE FY 2019 OUTLOOK Q & A ADDITIONAL INFORMATION 4

  5. Slide 5: FY2018 Highlights

    FY2018 HIGHLIGHTS 1 1 1 Further details on percentage change from normalised FY2018 to pro forma FY2017 – refer to page 8. 5

  6. Slide 6: FY2018 Highlights

    FY2018 HIGHLIGHTS  Results driven by:-  $144M in revenue growth from the accretive acquisitions of Melbourne BMW and Canterbury BMW  $107M in revenue growth from the full year cycling of our FY17 acquisition of Doncaster BMW  Like for like revenue growth of $56M  Improvements in mix of back-end

  7. Slide 7: FY 2018 Group Performance Overview

    FY 2018 HIGHLIGHTS FY 2018 GROUP PERFORMANCE OVERVIEW FY 2018 STRATEGIC UPDATE FY 2019 OUTLOOK Q & A ADDITIONAL INFORMATION 7

  8. Slide 8: FY2018 Normalised Financial Result

    FY2018 NORMALISED FINANCIAL RESULT BASIS OF PREPARATION A$m FY2017 FY2018  ASG listed 16th November 2016 Y/E 30 June Pro forma Normalised Total revenue 1,446.2 1,754.2  FY17 comparison data pro forma vs FY18 normalised growth 14.2% 21.3%  Acquisition amortisation of intangibles $4.3M Gross profit

  9. Slide 9: FY2018 Financial Trends – Sustained Growth

    FY2018 FINANCIAL TRENDS – SUSTAINED GROWTH 1,754.2 REVENUE 1,446.1  Total revenue up 21.3% in FY18 ($308M)  2014-2018FY revenue growth CAGR 28%  Acquisition growth contributed $144.6M  Back-end Service, Parts & Collision Repair revenue grew by 39% EBITDA 61.0 55.2  EBITDA growth of 10.6% in FY1

  10. Slide 10: Financial Trends | Stable Margins

    FINANCIAL TRENDS | STABLE MARGINS * All historical data is pro forma * FY2018 data is normalised Margin Growth Drivers  GP Margin continued to improve assisted by ASG’s improving mix of back-end revenue  GP Margin growth was also supported by 100% of ASG’s acquisition growth in FY17 and FY18 comin

  11. Slide 11: Key Performance Indicators

    KEY PERFORMANCE INDICATORS  New Vehicle units up 17% and revenue up 22.2% on pcp  Used Vehicle units up 8.2% in volume and 10% in revenue on pcp  Increasing revenue per unit sale has supported margin growth during FY18  Finance and Insurance income grew 14.5% in FY18 on pcp Pro forma historical

  12. Slide 12: Revenue Bridge

    REVENUE BRIDGE Revenue Growth FY17 to FY18 * All historical data is pro forma * FY2018 data is normalised ASG’S FY2018 Growth Drivers  Total revenue grew by $308M or 21.3% during FY18  Organic Growth was more subdued in FY18 at $56.1M reflecting challenging new vehicle market conditions  The full

  13. Slide 13: Strong Balance Sheet

    STRONG BALANCE SHEET MAJOR MOVEMENTS SINCE 30 JUN 2017 Balance Sheet Strong Balance Sheet Y/E 30 June Pro Forma 30-Jun-17 Normalised 30-Jun-18  Additional $39.7M in borrowings Total Borrowings 311,013 479,543 made up of:- Cash & Cash Equivalents (14,903) (14,302) o $24.3M to fund BMW Net Debt 296,1

  14. Slide 14: Cash Flow

    CASH FLOW  ASG continues FY18 with strong cash conversion of 121.6%  ASG typically receives payment for vehicles upon delivery (either from the customer or consumer finance company)  Cash typically remitted to floor plan financier within 2 days of delivery of motor vehicle  Use of floor plan fin

  15. Slide 15: FY 2018 Strategic Update

    FY 2018 HIGHLIGHTS FY 2018 GROUP PERFORMANCE OVERVIEW FY 2018 STRATEGIC UPDATE FY 2019 OUTLOOK Q & A ADDITIONAL INFORMATION 15

  16. Slide 16: On Strategy Growth

    ON STRATEGY GROWTH Since listing ASG has pursued a clear and focused strategy evenly balanced between acquisitions, organic and greenfield growth NOV 2016 APR 2017 NOV 2017 APR 2018  Audi Centre Brisbane  Doncaster BMW  Melbourne BMW  Canterbury BMW (Willims Motor Group) Acquisitions Greenfields

  17. Slide 17: New Vehicle Market Trends – June YTD 2018

    NEW VEHICLE MARKET TRENDS – JUNE YTD 2018 Total Market SUV Growth  June YTD the new vehicle market is 1% up on the record 2017 market  SUV sales growth is the dominant theme in the new vehicle market up 10.7%  June (-2.9%) and July (-7.8%) markets have been more challenging  SUV’s now account fo

  18. Slide 18: East Coast | Luxury Outperforms: Prestige Growing

    EAST COAST |LUXURY OUTPERFORMS:PRESTIGE GROWING ASG's dual strategy concentrates on luxury and prestige brands and the resilient major east coast markets. NSW / VIC / QLD LUXURY NSW / VIC / QLD PRESTIGE Source: VFacts  The Luxury market in NSW / VIC / QLD declined by 0.8% (458 units) 2018YTD  The

  19. Slide 19: Acquisition Growth | BMW | 2017-2018

    ACQUISITION GROWTH | BM W | 2017-20 18 ASG's acquisition strategy has seen the business improve the balance of its brand portfolio BMW GROWTH RIGHT BRANDS, RIGHT MARKETS  Prior to listing ASG did not represent the BMW Group brands of BMW & MINI  BMW & MINI account for 24.2% of the Luxury Vehicle M

  20. Slide 20: Growth Strategy | Maturing Back-End

    GROWTH STRATEGY |MATURING BACK-END Multiple income streams give ASG strength, flexibility and resilience. They give ASG multiple levers to drive sustainable growth. "FRONT-END" “BACK-END" New car sales Finance & Aftermarket Service Parts Collision Repair Insurance Used car sales Motorcycles BACK-END

  21. Slide 21: FY 2019 Outlook

    FY 2018 HIGHLIGHTS FY 2018 GROUP PERFORMANCE OVERVIEW FY 2018 STRATEGIC UPDATE FY 2019 OUTLOOK Q & A ADDITIONAL INFORMATION 21

  22. Slide 22: FY2019 Focus Areas

    FY2019 FOCUS AREAS FY2019 Focus Areas  Capitalise on restructure at Melbourne BMW to drive operational expense improvements  Continue to improve our gross profit mix with growth in Service, Parts & Collision Repair revenue  Drive organic growth in our Used Vehicle hubs in Sydney and Brisbane  Ma

  23. Slide 23: FY2018 Results Recap | FY2019 Outlook

    FY2018 RESULTS RECAP | FY2019 OUTLOOK FY2018 Results Recap  Normalised revenue up 21.3%  Normalised EBITDA up 10.6%  Normalised NPAT up 8.1%  Completed the acquisition of Melbourne BMW and Canterbury BMW  Opened the Volvo Cars Rushcutters Bay greenfields site  ASG maturing service, parts and c

  24. Slide 24: Q & A

    FY 2018 HIGHLIGHTS FY 2018 GROUP PERFORMANCE OVERVIEW FY 2018 STRATEGIC UPDATE FY 2019 OUTLOOK Q & A ADDITIONAL INFORMATION 24

  25. Slide 25: Additional Information

    FY 2018 HIGHLIGHTS FY 2018 GROUP PERFORMANCE OVERVIEW FY 2018 STRATEGIC UPDATE FY 2019 OUTLOOK Q & A ADDITIONAL INFORMATION 25

  26. Slide 26: FY2018 Statutory Financials

    FY2018 STATUTORY FINANCIALS Aggregated Statutory Financials Statutory Highlights  FY17 Statutory Accounts were for the period 18 November 2016 to 30 June 2017  NPATA of $30.4M up from $14.8M in FY17  Final dividend of 4.8c fully franked  Full year dividend of 9c fully franked  Net cash flow fro

  27. Slide 27: ASG Brand Portfolio

    ASG BRAND PORTFOLIO LUXURY (27) PRESTIGE(7) USED CAR COLLISION REPAIR ACQUISITIONS DEALERSHIPS (2) FACILITIES (4) GREENFIELDS FY18 (6) (4) (1) (1) ** (1) (5) (1) (1) (1) ** (1) (2) (1) Opening Gold Coast Sept 18 ** (2) (2) MINI Canterbury October 2018 (1) (1) (1) (4) (1) (2) (3) 27

  28. Slide 28: Capital Structure

    CAPITAL STRUCTURE ASG’s strong cash generation results in a capital light business Floorplan finance supports inventory holdings minimising cash required for holding stock. $77.7m of the $133.4m increase in floorplan comes from BMW acquisitions and Volvo Cars * Full year FY17 EBITDA used for calcu

  29. Slide 29: Statutory to Pro Forma Reconciliation

    STATUTORY TO PRO FORMA RECONCILATION Statutory Reconciliation Pro Forma Normalised 30-Jun-17 30-Jun-18 $m $m Statutory revenue 906.1 1,692.0 Pre completion ASG trading from 1 July 2016 to completion 404.6 - Pre completion trading for acquisitions (acquired Willims business and Volvo Cars Brighton) f

  30. Slide 30: FY2018 Financial Result

    FY2018 FINANCIAL RESULT BASIS OF PREPARATION  ASG listed 18th November 2016  FY17 comparison data pro forma vs FY18 normalised  Acquisition amortisation of intangibles $4.3M  Normalisations of $1.3M relating to acquisition and restructuring costs BMW IMPACT  Acquisition of Melbourne BMW (Novemb

  31. Slide 31: 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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