Eagers Automotive Limited · ASX:APE
Eagers Automotive — H1 2016 Earnings Presentation
33 slides from Eagers Automotive's earnings presentation, Aug 24, 2016
Slide 1: 2016 Half Year Results Presentation
For personal use only 2016 Half Year Results August 2016 Presentation
Slide 2: 2016 Half Year Highlights
2016 Half Year Highlights For personal use only • Record statutory profit before tax $67.9m, up 14% on 1H15 • Record net profit after tax $49.1m, up 12% on 1H15 • Record statutory (basic) EPS of 26.2 cents, an increase of 7% on 1H15 • Record fully franked interim dividend of 13 cents, up 8% on 1H15
Slide 3: Australian New Vehicle Sales – June YTD 2016
Australian New Vehicle Sales – June YTD 2016 For personal use only Total Australian Market Share by State (VFACTS) ACT • New vehicle market up 3.4% YTD 2% WA • Correct balance between supply and 9% demand. NSW 34% • Strong growth in luxury brands VIC 27% • Retail industry evolving following GFC, man
Slide 4: New Vehicle Sales by Country of Origin and Exchange Rates
For personal use only 70 80 90 100 110 Jun-12 14% Sep-12 7% Dec-12 18% Mar-13 4% Jun-13 5% Sep-13 Dec-13 Mar-14 by Country of Origin Jun-14 New Vehicle Sales (VFACTS) 24% Sep-14 28% Exchange Rates Dec-14 Monthly 5 Years: AUD / JPN Mar-15 Jun-15 Sep-15 USA Japan Korea Other Dec-15 Thailand Australia
Slide 5: Affordability
Affordability For personal use only 90 Day Bank Bill Rate 9.00 8.00 7.00 6.00 Last Price (%) 5.00 4.00 3.00 2.00 1.00 -
Slide 6: APE Vehicle Sales 1H 2016
APE Vehicle Sales 1H 2016 For personal use only APE New Vehicle Sales by State APE Used Retail Vehicle Sales by State Total 28,800 + 8.6% (4.8% of National Market) Total 11,151 (1) + 9% (est. 0.5% of National Market) 4% 3% 6% 10% 15% 23% Cars - NSW 3% 17% Cars - NT Retail Cars - NSW Cars - QLD Retai
Slide 7: 2016 Half Year Highlights - Financial
2016 Half Year Highlights - Financial For personal use only • Record statutory (basic) EPS of 26.2 cents, an increase of 7% on 1H15 • Record fully franked interim dividend of 13 cents, up 8% on 1H15 • EBITDA $86.7m, up 12% on 1H15 • Underlying(1) net profit before tax increased by 13.9% to $66.6 mil
Slide 8: Financial Summary
Financial Summary For personal use only $ Million 1H 2016 1H 2015 Change Revenue 1,838.3 1,639.5 Up 12% EBITDA 86.7 77.5 Up 12% EBIT 80.2 70.9 Up 13% PBT 67.9 59.5 Up 14% PAT 49.1 44.1 Up 11% Cash from operating activities 71.0 50.0 Up 42% NTA/share 2.33 2.61 Down -11% Net gearing excluding bailment
Slide 9: Balance Sheet - Summary
Balance Sheet - Summary For personal use only 1H 2016 • New vehicle inventory funded by bailment ($M) debt. CA - CL (excl. held for sale) 174.0 • Parts and most used vehicle inventory is balance sheet funded. Freehold Property (incl. held for sale) 285.1 • AHG and Smart Group investments Other Non C
Slide 10: Earnings Per Share
Earnings Per Share For personal use only EPS Bridge 27.5 0.7 0.8 27.0 26.5 0.6 26.2 26.0 1.3 0.0 25.5 25.0 Cents 24.5 24.5 24.0 23.5 23.0 22.5 22.0 1H 2015 NPAT Operational AHG Investment Profit on Sale MTAI, Impairment, Dilution 1H 2016 NPAT Result (net of interest) Property / Other Income, Investm
Slide 11: Financial Trends – Underlying PBT
Financial Trends – Underlying PBT For personal use only Financial Trends: Underlying PBT 90.0 85.4 Operating Earnings (EBITDA) PBT Underlying 80.0 78.0 76.3 70.1 70.0 67.9 66.6 61.1 61.9 59.0 57.8 60.1 58.5 60.0 54.2 52.1 $ million 50.0 46.1 44.2 45.3 40.6 41.2 42.0 40.0 38.2 35.6 36.4 37.2 32.8 33.
Slide 12: Financial Trends: Operating Margin
Financial Trends For personal use only Operating Margin Operating Earnings Margin % Linear (Operating Earnings Margin %) 5.0% 4.8% 4.6% 4.6% 4.6% 4.4% 4.5% 4.3% 4.1% 4.0% Percentage 3.9% 4.0% 3.5% 3.6% 3.0% Includes AHG dividend from 2012 2.5% 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H2016 Oper
Slide 13: Financial Trends: EPS Statutory (Basic)
Financial Trends For personal use only EPS Statutory (Basic) June - first 6 months December - second 6 months 60.0 50.0 47.6 43.0 40.0 36.4 34.0 23.1 Government Cents stimulus 24.3 30.0 25.5 18.2 24.4 17.7 21.0 20.0 13.0 GFC/ 13.4 Lehman Bros 10.4 24.5 26.2 9.8 10.0 18.2 18.7 1.7 16.3 11.0 10.6 12.5
Slide 14: Financial Trends: Dividend
Financial Trends For personal use only Dividend 35.0 32.0 Interim Dividend Final Dividend 30.0 27.0 25.0 23.0 20.0 20.0 Cents per Share 20.0 18.0 16.0 15.0 15.0 12.8 12.4 13.0 11.6 8.8 10.4 10.0 8.6 7.2 7.6 8.0 8.2 6.6 7.2 4.8 4.4 13.0 4.0 12.0 5.0 3.6 3.8 8.0 9.0 7.0 4.6 5.6 3.4 3.6 3.8 4.4 4.4 4.4
Slide 15: Segment Results
Segment Results Segment Contributions For personal use only $ million Car retailing -50.0 -25.0 - 25.0 50.0 75.0 Record car retailing in NSW with positive 47.7 contributions from acquisitions. Strong trading Car Retailing 50.7 in service business. 0.8 Truck Retailing Truck retailing 3.2 Strong profi
Slide 16: AHG Investment
AHG Investment For personal use only • 60,904,350 shares held at 30/06/16 19.9% • Investment valued at $229m at $3.76 (30/06/16) • An unrealised revaluation loss of $46.3m within investment segment • Share price (31/12/15) $4.52, (30/06/16) $3.76, (23/08/16) $4.93 • 3,962,389 new shares subscribed f
Slide 17: Carsguide Investment
Carsguide Investment For personal use only NOTE: The "UNDER CONSIDERATION" arrangements depicted above will not form part of the combined business on completion of the Scheme of Arrangement. Cox Automotive may consider making them available to the combined business in future, but there is no obligat
Slide 18: Opening 12th September 2016
opening 12th September 2016 For personal use only
Slide 19: Guiding Insight: Technology driving a shift in consumer behaviour
Guiding Insight: Technology … is driving a shift in consumer behaviour. For personal use only Technology … is the enabler for business disruption. Google case study on today’s car buyer. Source: https://www.thinkwithgoogle.com/articles/consumer-car- buying-process-reveals-auto-marketing-opportunitie
Slide 20: The Carzoos Compelling Customer Benefits
THE CARZ COMPELLING CUSTOMER BENEFITS * 7-day money-back guarantee _ © Free comprehensive motor vehicle insurance | | * No haggle discounted pricing (Algorithm based) i » Capped price servicing * 24/7 roadside assistance * Carzoos 175,000 km warranty Selling ” © 24hour guaranteed best in market pric
Slide 21: The Carzoos Compelling Customer Benefits
THE CARZOOS COMPELLING CUSTOMER BENEFITS Buying Consumer Pain Points « 7-day money-back guarantee » Free comprehensive motor vehicle insurance No haggle discounted pricing (Algorithm based) WHAT CAR? WHAT PRICE? « Capped price servicing * 24/7 roadside assistance Carzoos 175,000 km warranty ’ Sellin
Slide 22: The Carzoos Customer
THE CARZOOS CUSTOMER Buying Consumer Pain Points 7-day money-back guarantee Free comprehensive motor vehicle insurance No haggle discounted pricing (Algorithm based) Capped price servicing 24/7 roadside assistance Carzoos 175,000 km warranty Selling 24 hour guaranteed best in market price (not as a
Slide 23: The Carzoos Customer Enablers
THE CARZOOS CUSTOMER Buying 7-day money-back guarantee Free comprehensive motor vehicle insurance No haggle discounted pricing (Algorithm based) Capped price servicing 24/7 roadside assistance Carzoos 175,000 km warranty Selling 24 hour guaranteed best in market price (not as a part exchange) 30-day
Slide 24: For personal use only
For personal use only
Slide 25: Completed Acquisitions in 2016
Completed Acquisitions in 2016 For personal use only Birrell Motors Group + $205m turnover for second half (v’s 2nd half 2015) Crampton Automotive Group + $65m turnover for second half (v’s 2nd half 2015) Tony Ireland Group * + $20m turnover for second half (v’s 2nd half 2015) Combined + $290m turno
Slide 26: Forward-Looking Statements
Forward-Looking Statements For personal use only This document may contain forward-looking statements, forecasts and estimates made by the Company (forward-looking statements), including the anticipated future performance of the Company and the market in which it operates. These forward-looking stat
Slide 27: Appendix
For personal use only Appendix
Slide 28: A.P. Eagers Company Profile
For personal use only A.P. Eagers COMPANY PROFILE 50
Slide 29: AP Eagers Today (June 2016)
AP Eagers Today (June 2016) For personal use only • 103 year old automotive retail group founded in 1913 • 59 years as a listed public company – dividend paid every year • A.P. Eagers owns $285m of prime real estate • Represents all 12 of the top 12 selling vehicle brands in Australia and 33 car bra
Slide 30: AP Eagers Volume Car Brands
AP Eagers Volume Car Brands For personal use only Represents 10 of the top 10 selling volume car brands in Australia 30
Slide 31: AP Eagers Luxury Car Brands
AP Eagers Luxury* Car Brands For personal use only Represents 10 of the top 11 selling luxury car brands in Australia * Luxury is defined as luxury vehicle selling more than 500 units annually (V Facts) * Infiniti (574 units) and Maserati (519 units) increase this segment from 9-11 brands in 2015) 3
Slide 32: AP Eagers Truck and Bus Brands
AP Eagers Truck and Bus Brands For personal use only Representing 14 truck and bus brands 32
Slide 33: Revenue by State / % of group Revenue
Revenue by State / % of group Revenue For personal use only AP Eagers $1.83 billion revenue $0.07bn (4%) $0.87bn (47%) $0.0bn $0.32bn (18%) $0.38bn (21%) $0.14bn (7%) $0.05bn (3%)