Slide 1: Presentation to Stockbrokers
For personal use only 9 September 2008 Company Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000 Re: Presentation to Stockbrokers Please find attached today’s presentation to Taylor Collison. Yours faithfully A.P. Eagers Limited Denis Stark Company Secretary For more information on A
Slide 2: Taylor Collison Sydney Briefing
For personal use only Taylor Collison Sydney Briefing Tuesday 9 September 2008 © 2007 AP Eagers Limited. All Rights Reserved. Tuesday, 9 September 2008
Slide 3: About A.P. Eagers
About A.P. Eagers For personal use only • 95 year old automotive retail group founded in 1913 • 51 years as a listed public company – dividend paid every year • Record dividend each year for last 7 years • A.P. Eagers owns more than 69 acres of prime real estate mainly in metropolitan Brisbane • Bal
Slide 4: About A.P. Eagers
About A.P. Eagers For personal use only Represents 10 of the top 10 selling vehicle brands in Australia © 2007 AP Eagers Limited. All Rights Reserved. Tuesday, 9 September 2008
Slide 5: About A.P. Eagers
About A.P. Eagers For personal use only As well as 18 others, representing 28 vehicle brands in total © 2007 AP Eagers Limited. All Rights Reserved. Tuesday, 9 September 2008
Slide 6: Group Financial Results
Group Financial Results For personal use only 2008 PCP Change Includes GST refund of $11.5 Total Revenue $909m +15% million before tax. Trading (before Sale of Property & Associates Profit) EBITDA $44.2m +56% PBT of $16.6 million before Including Associate Profits GST refund compares to EBIT $40.8m
Slide 7: Financial Trends
Financial Trends For personal use only © 2007 AP Eagers Limited. All Rights Reserved. Tuesday, 9 September 2008
Slide 8: Trading Performance
Trading Performance For personal use only 2007 - Outstanding record year Qtr 1 2008 - Continued growth but slowing Qtr 2 2008 - Negative growth Qtr 3 2008 - Tough conditions being experienced Qtr 4 2008 - Better conditions anticipated 2009 - Fundamentals and circumstances should lead to positive gro
Slide 9: Automotive Franchised Retailing
Automotive Franchised Retailing For personal use only Revenue $897.0m + 13.8% Operating Profit $ 20.4m + 11.4% Interest $ 7.1m + 29.8% ADG / MTAI $ 0.8m ‐ 7.1% Segment Profit $ 14.1m + 3.0% (11.3% annualised after tax return on segment net assets compared to 13.1% in 2007.) Note: ADG $1.5m offset by
Slide 10: MTAI
MTAI For personal use only 1H 2H FY MTAI (100%) $2.3m <$3.4m> <$1.1m> APE (19.43%) $0.5m <$0.7m> <$0.2m> MTAI results based on financial year July 07 – June 08. MTAI’s losses are all associated with a mark to market valuation of their investment assets at June 30th 2008. Net profit before investment
Slide 11: Automotive Franchised Retailing
Automotive Franchised Retailing For personal use only New Cars 18,082 units +15% (same store basis +2.4%) Used Cars 7,965 units +16% (same store basis +8.2%) F&I +42% (same store basis +35%) Parts Revenue +12% Margin + 21% Service Revenue +32% Margin + 40% © 2007 AP Eagers Limited. All Rights Reserv
Slide 12: Australian new car sales
Australian new car sales (month of August and year to date) For personal use only Month YTD Variance +/- Vol. & % Total Market 2008 2007 2008 2007 MTH YTD MTH YTD AUSTRALIAN CAPITAL TERRITORY 1,180 1,424 10,732 11,153 -244 -421 -17.10% -3.80% NEW SOUTH WALES 22,669 26,549 212,496 214,428 -3,880 -1,9
Slide 13: Petrol has skyrocketed; other running costs keeping pace with inflation
Petrol has skyrocketed. Other car running costs are keeping pace with inflation For personal use only Consumer Price Indexes Indexes 1989-90=100 230 Auto fuel 210 190 All C PI 170 150 130 auto servicing 110 auto parts 90 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 Source: ABS, ANZ Bank © 2007 AP Ea
Slide 14: New cars are now cheaper, more affordable
New cars are now cheaper, more affordable For personal use only Consumer Price Indexes 170 Indexes 1989-90=100 All C PI 160 150 140 130 120 110 New car prices 100 90 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 Source: ABS, ANZ Bank © 2007 AP Eagers Limited. All Rights Reserved. Tuesday, 9 September
Slide 15: National vehicle fleet is approaching million
National vehicle fleet is approaching 15 million (car parc) For personal use only All vehicle registrations 15 mn other vehicles passenger & SUVs 10 5 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: ABS, ANZ Bank © 2007 AP Eagers Limited. All Rights Reserved. Tuesday, 9 Septemb
Slide 16: Bill Buckle Auto Group
Bill Buckle Auto Group For personal use only © 2007 AP Eagers Limited. All Rights Reserved. Tuesday, 9 September 2008
Slide 17: Bill Buckle Auto Group
Bill Buckle Auto Group For personal use only © 2007 AP Eagers Limited. All Rights Reserved. Tuesday, 9 September 2008
Slide 18: Bill Buckle Auto Group
Bill Buckle Auto Group For personal use only $12.7m to acquire Bill Buckle Auto Group. $22.6m to acquire related property assets. Turnover $170m, 180 staff, 4,000 new / used vehicles per annum National Market Share 2007 Growth 1H 2008 Toyota 22.5% +10.7% + 9.4% Subaru 3.7% + 2.5% + 6.4% VW 2.6% +27.
Slide 19: Property Segment
Property Segment For personal use only Revenue $13.6m + 20.9% Operating Profit $10.0m + 26.7% Interest $ 5.6m + 63.3% Operating contributions $ 4.5m ‐ 1.0% (4.6% annualised after tax return on segment net assets compared to 5.3% in 2007.) Balance sheet value of L&B at 30 June 2008 331m compared with
Slide 20: Debt Position
Debt Position For personal use only BBAG lease book $29m. Property Assets $331m. Focus on debt reduction in second half. June 2008 August 2008 ANZ Bank Bill Facility $174m $156m Bailment Facility $250m $ 243m © 2007 AP Eagers Limited. All Rights Reserved. Tuesday, 9 September 2008
Slide 21: Essential Operational Integration
Essential Operational Integration Decisions Taken For personal use only • Southside Ford sales operations relocating to Metro Ford effective 1 October 2008. • Southside Ford service and parts operations to continue. • Minimal trading P&L impact in 2008. • Property sale completion late 2008 / early 2
Slide 22: Southside Ford
Southside Ford For personal use only © 2007 AP Eagers Limited. All Rights Reserved. Tuesday, 9 September 2008
Slide 23: Metro Ford
Metro Ford For personal use only © 2007 AP Eagers Limited. All Rights Reserved. Tuesday, 9 September 2008
Slide 24: Woolloongabba Structure Plan
Woolloongabba Structure Plan For personal use only © 2007 AP Eagers Limited. All Rights Reserved. Tuesday, 9 September 2008
Slide 25: Woolloongabba Core
Woolloongabba Core For personal use only © 2007 AP Eagers Limited. All Rights Reserved. Tuesday, 9 September 2008
Slide 26: Actions July – Dec 2008 (2H)
Actions July – Dec 2008 (2H) For personal use only • Debt reduction (Bailment finance and ANZ corporate facility) using cashflow and addressing underperforming assets. • Maintain disciplines and remain motivated during current tougher trading cycle. • Continue development and plan launch of organic
Slide 27: Generic industry-wide reasons why 2009 will be better
Generic Industry-wide reasons why we believe 2009 will be better For personal use only • Anticipated further lower interest rates results in lower costs (bailment and corporate debt). • Anticipated further lower interest rates results in greater private new and used car customers. • Manufacturers an
Slide 28: A.P. Eagers Improvements in 2009
A.P. Eagers Improvements in 2009 For personal use only • Improved performance due to generic industry wide macro environment. • Lower debt due to reduced underperforming assets. • Organic growth strategy implementation. • Earnings accretive acquisitions. © 2007 AP Eagers Limited. All Rights Reserved