Autosports Group Ltd · ASX:ASG
Autosports — Macquarie Conference 2018
25 slides from Autosports's conference presentation, May 2, 2018
Slide 1: ASG Macquarie Conference Presentation
For personal use only ASG Macquarie Conference Presentation May 2018 1
Slide 2: 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 For personal use only information in this presentation is of general background and does not purpo
Slide 3: Presenting Today
PRESENTING TODAY For personal use only Nick Pagent Aaron Murray Managing Director and CEO CFO Group CEO since formation of the Group CFO since 2009 after joining the Autosports Group in 2006 group in 2007 22 years of motor vehicle industry 22 years of motor vehicle industry experience in Aus
Slide 4: Agenda
AGENDA For personal use only ASG COMPANY INTRODUCTION NEW VEHICLE MARKET UPDATE | MARCH YTD 2018 GROWTH STRATEGY 2018H1 RECAP & OUTLOOK Q & A ADDITIONAL INFORMATION 4
Slide 5: ASG Company Introduction
For personal use only ASG COMPANY INTRODUCTION NEW VEHICLE MARKET UPDATE | MARCH YTD 2018 GROWTH STRATEGY 2018H1 RECAP & OUTLOOK Q & A ADDITIONAL INFORMATION 5
Slide 6: Introduction to ASG
INTRODUCTION TO ASG ASG was established in 2006 and operates one of Australia's largest networks of luxury and prestige car dealerships. ASG Brands For personal use only History • Established 12 years ago by founders and major shareholders, Ian Pagent and Nick Pagent 6 dealerships 5 dealerships 2 de
Slide 7: ASG Company Introduction
ASG COMPANY INTRODUCTION Consistent Industry Fundamentals For personal use only Consistent and stable growth in new cars, driven by long term trends Clear and focused strategy to concentrate on the prestige and luxury segments of the market 2018FY has seen improving coverage of major metropoli
Slide 8: Continuing Operational Excellence
CONTINUING OPERATIONAL EXCELLENCE ASG's operational excellence is recognised by its customers and OEM partners For personal use only Dealer Of The Year Awards 1st OPERATIONAL 2012, 2013, 2015, 2016 2014 2017 2017 2016, 2017 EXCELLENCE Audi Centre Mosman Audi Indooroopilly Audi Sutherland Audi Centre
Slide 9: New Vehicle Market Update
For personal use only ASG COMPANY INTRODUCTION NEW VEHICLE MARKET UPDATE | MARCH YTD 2018 GROWTH STRATEGY 2018H1 RECAP & OUTLOOK Q & A ADDITIONAL INFORMATION 9
Slide 10: New Vehicle Market Trends
NEW VEHICLE MARKET TRENDS – MARCH YTD 2018 Total Market is at record levels 4.4% up on March 2017 SUV sales continue to grow at 42.3% of the total market up from a full year 2017 number of 39.2% Largest markets NSW, QLD & VIC comprise 83% of the total For personal use only new car market Sma
Slide 11: Luxury & Prestige Market Update
LUXURY & PRESTIGE MARKET UPDATE – MARCH YTD 2018 ASG's strategy of competing in both the Prestige and Luxury segments means we have resilience whilst maintaining exposure to the growing segments. For personal use only LUXURY TOTAL PRESTIGE TOTAL Luxury Market has contracted by 4.7% during the Marc
Slide 12: Growth Strategy
For personal use only ASG COMPANY INTRODUCTION NEW VEHICLE MARKET UPDATE | MARCH YTD 2018 GROWTH STRATEGY 2018H1 RECAP & OUTLOOK Q & A ADDITIONAL INFORMATION 12
Slide 13: 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 For personal use only Audi Centre Brisbane Doncaster BMW Melbourne BMW Canterbury BMW (Willims Motor Group) Ac
Slide 14: Acquisition Growth | BMW | 2017-2018
ACQUISITION GROWTH | BMW | 2017 -2018 BMW GROWTH For personal use only Prior to listing ASG did not represent the BMW Group brands of BMW & MINI BMW & MINI account for 24.5% of the Luxury Market YTD March 2018. This number is up from 22.8% of the Luxury Doncaster BMW Market at March 2017 (source
Slide 15: Organic Growth Strategy | Greenfields
ORGANIC GROWTH STRATEGY | GREENFIELDS With the opening of the Gold Coast Maserati & Bentley sites, ASG will have 13 greenfield sites under five years old For personal use only DEALERSHIP BRANDS CATEGORY YEAR ACQUIRED / ESTABLISHED Autosports Honda Prestige CY13 greenfield Cost effective Fiat Alfa Le
Slide 16: How Does a Greenfields Site Work?
HOW DOES A GREENFIELDS SITE WORK? YEAR 1 YEAR 2 YEAR 3 YEAR 4 For personal use only ACQUIRE Focus on new & Aftersales Vehicle replacement Maturity START UP used car sales beginning to build cycle aids sales No customer One year parc only Database now at 50% Database marketing Strong databa
Slide 17: Organic Growth | Unlocking Aftersales Demand
ORGANIC GROWTH| UNLOCKING AFTERSALES DEMAND Growth in Service, Parts & Collision Repair continues to drive growth for ASG For personal use only ASG’s business model benefits from inbuilt growth in back-end revenue from a maturing service, parts and panel customer base Service & Collision Repair 20
Slide 18: 2018H1 Recap & Outlook
For personal use only ASG COMPANY INTRODUCTION NEW VEHICLE MARKET UPDATE | MARCH YTD 2018 GROWTH STRATEGY 2018H1 RECAP & OUTLOOK Q & A ADDITIONAL INFORMATION 18
Slide 19: 2018FY H1 Recap
2018FY H1 RECAP For personal use only Growth on Revenue and EBITDA driven by acquisition led growth Completed the acquisition of Melbourne BMW & Canterbury BMW increasing ASG’s coverage in the brands of BMW, Mini, Alpina and BMW Motorcycles in the Melbourne and Sydney markets Diverse revenue s
Slide 20: ASG's Outlook
ASG’S OUTLOOK March quarter trading in line with expectations within the prestige and luxury segments for H2 2018FY and in line with the For personal use only outlook provided in February. Anticipate conditions to remain stable through till the end of the financial year with normal seasonality Press
Slide 21: Q & A
For personal use only ASG COMPANY INTRODUCTION NEW VEHICLE MARKET UPDATE | MARCH YTD 2018 GROWTH STRATEGY 2018H1 RECAP & OUTLOOK Q & A ADDITIONAL INFORMATION 21
Slide 22: Additional Information
For personal use only ASG COMPANY INTRODUCTION NEW VEHICLE MARKET UPDATE | MARCH YTD 2018 GROWTH STRATEGY 2018H1 RECAP & OUTLOOK Q & A ADDITIONAL INFORMATION 22
Slide 23: 2018FY H1 Result Detail
2018FY H1 RESULT DETAIL Profit & Loss Statement period ended 31 December 2017 For personal use only Financial Statements 1H FY17 YTD 1H FY18 YTD +/- % New Vehicles 377,391 462,094 84,703 22.4% BASIS OF PREPARATION Used Vehicles 189,501 212,798 23,297 12.3% Finance & Insurance 11,662 12,082 420 3.6%
Slide 24: Strong Balance Sheet
STRONG BALANCE SHEET MAJOR MOVEMENTS SINCE 30 JUN 2017 For personal use only Additional $15.5m capital loans drawn in November 2017 to fund settlement of Melbourne BMW Additional floorplan facilities of $43.4m and $6.1m for Melbourne BMW and Volvo Cars Rushcutters Bay Interest coverage affecte
Slide 25: Cash Flow
CASH FLOW ASG typically receives payment for vehicles upon delivery to customers (either from the customer or consumer finance company) Cash typically remitted to floor plan financier within 2 days of delivery of motor vehicle For personal use only Use of floor plan finance minimises investmen