Autosports Group Ltd · ASX:ASG
Autosports — FY2020 Earnings Presentation
34 slides from Autosports's earnings presentation, Aug 28, 2020
Slide 1: Autosports Group Limited 2020FY Presentation
For personal use only Autosports Group Limited 2020FY Presentation August 2020
Slide 2: Agenda
AGENDA For personal use only 2020FY Highlights & Results Summary 2 0 2 0 F Y F i n a n c i a l Tr e n d s ASG COVID-19 Response & Strategic Review 2020FY Recap, 2021FY Focus Areas & Outlook Appendix
Slide 3: Agenda
AGENDA For personal use only 2020FY Highlights & Results Summary 2 0 2 0 F Y F i n a n c i a l Tr e n d s ASG COVID-19 Response & Strategic Review 2020FY Recap, 2021FY Focus Areas & Outlook Appendix
Slide 4: Highlights
HIGHLIGHTS For personal use only Statutory revenue $1.7b up 1% on 2019FY Statutory loss ($102.4m) impacted by non-cash impairments to goodwill, recognition of AASB16 leasing standards and acquisition amortisation Normalised* EBITDA $44.3m, NPBT $23.1m Strong operating cashflow normalised for AASB16
Slide 5: Financial Result
FINANCIAL RESULT NORMALISATIONS For personal use only A$M Normalised % Movement Normalised ▪ Non-cash adjustments 2020FY on PCP 2019FY ▪ The Group conducted a review of its goodwill carrying value in respect of the full Total Revenue 1,699.3 1.0% 1,681.9 year ended 30 June 2020. Following the comple
Slide 6: 2020FY Summary
2020FY SUMMARY For personal use only 2020FY HIGHLIGHTS H1 2020FY ▪ Revenue 1.1% and normalised gross profit 3.7% up on H1 2019FY ▪ COVID-19 has presented unprecedented challenges and driven significant change ▪ H1 2020FY impacted by lower OEM KPI bonus achievement compared to H1 2019FY ▪ OEM financi
Slide 7: Agenda
AGENDA For personal use only 2020FY Highlights & Results Summary 2 0 2 0 F Y F i n a n c i a l Tr e n d s ASG COVID-19 Response & Strategic Review 2020FY Recap, 2021FY Focus Areas & Outlook Appendix
Slide 8: Financial Trends
FINANCIAL TRENDS 2020FY 1,800.0 1,699.3 1,691.4 1,681.9 For personal use only REVENUE GROWTH 1,600.0 1,401.5 1,400.0 ▪ ASG has a strong record of generating consistent revenue growth through a mix 1,221.3 of acquisitions and organic growth 1,200.0 1,003.7 1,000.0 ▪ Last 3 years have seen a maintenan
Slide 9: Revenue Bridge
For personal use only REVENUE BRIDGE
Slide 10: Margin Overview
MARGIN OVERVIEW For personal use only Normalised EBITDA margin Normalised GP margin 4.0% 3.7% 3.7% 17.0% 3.5% 16.6% 3.4% 3.3% 3.5% 16.5% 16.3% 3.1% 2.6% 2.6% 3.0% 2.6% 16.0% 15.7% 2.6% 2.6% 15.61% 2.5% 2.2% 2.2% 15.5% 1.9% 14.9% 14.8% 14.9% 2.0% 1.7% 15.0% 14.5% 1.4% 1.5% 14.5% 14.7% 1.0% 1.4% 1.4%
Slide 11: Cash Flow
CASH FLOW For personal use only ▪ Operating cash normalised for AASB16 impact up $55.2m driven by: ▪ Operating profit ▪ ATO deferrals $32m ▪ OEM financier support with capital repayment holidays of $3.5m ▪ OEM financier support with Floorplan interest ▪ Interim dividend of $3.8m cancelled ▪ Closing
Slide 12: Liquidity
LIQUIDITY ASG COVID-19 RESPONSE & IMPACTS For personal use only Clear focus and strong support of our OEM financiers has allowed strong management of ASG’s liquidity during COVID-19 2020FY LIQUIDITY MOVEMENTS ▪ Increase in available cash of $24.7m ▪ Unused bailment facility increase $125m ▪ Addition
Slide 13: Balance Sheet
BALANCE SHEET For personal use only Balance Sheet FUTURE READY 2020FY 2019FY ▪ Net debt down $18.3m to $49.4m Total Borrowings 463,418 474,164 Cash & Cash Equivalents (38,817) (11,292) o Corporate debt increase of $13.4m Net Debt 424,601 462,872 o Total corporate debt of $79m offset by $32m of Inven
Slide 14: Agenda
AGENDA For personal use only 2020FY Highlights & Results Summary 2 0 2 0 F Y F i n a n c i a l Tr e n d s ASG COVID-19 Response & Strategic Review 2020FY Recap, 2021FY Focus Areas & Outlook Appendix
Slide 15: Expense Management
EXPENSE MANAGEMENT ASG COVID-19 RESPONSE & IMPACTS For personal use only EXPENSE MANAGEMENT ▪ Targeted expense management to ensure ASG is well positioned for growth post COVID-19 ▪ Acquisitions have added to cost base both in facility and variable expenses of $19m, which has been absorbed whilst st
Slide 16: Strong Performance Against Market
STRONG PERFORMANCE AGAINST MARKET ASG COVID-19 RESPONSE & IMPACTS For personal use only REVENUE MAXIMISATION Vfacts vs ASG Order write 40.00% ▪ Total revenue recovered to be in line with 2019FY at $1.7b 30.00% 20.00% ▪ Luxury market outperformed the broader market 10.00% ▪ April saw vehicle sales dr
Slide 17: Strategic Overview
STRATEGIC OVERVIEW For personal use only ASG IS WELL POSITIONED PORTFOLIO BALANCE MELBOURNE LOCKDOWN ▪ The resilience of ASG’s diverse revenue stream ▪ ASG’s focus on east coast cities and luxury ▪ 4 dealerships and 2 collision repair sites generating base has been demonstrated over the last 12 bran
Slide 18: Strategic Update
STRATEGIC UPDATE ASG continues to have a focused strategy concentrating on prestige & luxury brands on the east coast of Australia For personal use only LUXURY MARKET Luxury Vs total market Vfacts FYTD June 2020 40% 33% ▪ 83% of ASG’s revenue comes from the luxury segment 30% 19% ▪ Total market down
Slide 19: Diverse Revenue Streams Continue to Bring Resilience
DIVERSE REVENUE STREAMS CONTINUE TO BRING RESILIENCE ASG is well positioned for post COVID-19 growth. For personal use only USED CARS SERVICE & PARTS COLLISION REPAIR ▪ Used car revenue grew by 2.4% despite ▪ Service revenue grew by 3% ▪ Panel was heavily affected by lockdown the COVID-19 interrupti
Slide 20: Agenda
AGENDA For personal use only 2020FY Highlights & Results Summary 2 0 2 0 F Y F i n a n c i a l Tr e n d s ASG COVID-19 Response & Strategic Review 2020FY Recap, 2021FY Focus Areas & Outlook Appendix
Slide 21: Results Recap
RESULTS RECAP For personal use only R e v e n u e , E B I T D A a n d N PAT o p t i m i s e d i n a c h a l l e n g i n g n e w c a r e n v i r o n m e n t Strong operating cashflow normalised for AASB16 of $55.2m Operating expenses drop off the back of a like for like H2 2020FY reduction of $23m Ma
Slide 22: Focus Areas
FOCUS AREAS COVID-19 PREPARED & FUTURE READY For personal use only Continue to focus on the health of our staff and customers during the COVID -19 pandemic Maintain the strong cash preservation and liquidity disciplines from H2 2020FY Maximise revenue opportunities to take advantage of improvements
Slide 23: Outlook
OUTLOOK For personal use only The outlook remains too uncertain to give firm guidance July & August trading has been above expectation in NSW and QLD offsetting the impact of Melbourne Level 4 lockdown We expect the demand for vehicles to remain strong with sales bouncing back strongly as restrictio
Slide 24: Agenda
AGENDA For personal use only 2020FY Highlights & Results Summary 2 0 2 0 F Y F i n a n c i a l Tr e n d s ASG COVID-19 Response & Strategic Review 2020FY Recap, 2021FY Focus Areas & Outlook Appendix
Slide 25: ASG Brand Portfolio
ASG BRAND PORTFOLIO For personal use only USED CAR COLLISION REPAIR LUXURY ( 3 6) PRESTIGE ( 6 ) DEALERSHIPS ( 3 ) FACILITIES ( 6 ) 6 3 1 1 3 4 1 5 1 4 1 2 2 1 3 1 1 1 1 2 1 1 2 3
Slide 26: Statutory Financials Consolidated
STATUTORY FINANCIALS CONSOLIDATED 2020FY For personal use only 2 2019FY 1 $m 2017FY 2018FY Restated 2020FY Total Revenue 906.1 1,692.0 1,693.6 1,701.7 Gross Profit 142.6 265.9 275.5 265.4 EBITDA 28.4 59.6 80.9 76.6 EBIT 23.8 50.7 41.5 (76.1) NPBT 18.4 37.4 16.9 (97.8) NPAT 12.3 26.4 11.2 (102.4) NPA
Slide 27: Capital Structure
CAPITAL STRUCTURE For personal use only Facility $m $m 2020FY 2019FY Capital Loans 86.3 74.8 Other Loans & Hire Purchase 1.9 4.2 Cash (39) (11) Net debt / (Cash) (Excluding floorplan finance) 49.4 67.7 Net Debt (Cash) / EBITDA (Adjusted)* 1.5 1.7 Floorplan Finance 375.2 395.2 Total Net Debt 376.7 39
Slide 28: Normalised Financial Result
NORMALISED FINANCIAL RESULT 2020FY For personal use only NORMALISATIONS INCLUDED $m 2020FY 2019FY Growth on PCP ▪ Non-cash adjustments New Vehicles 988.2 977.4 1.1% ▪ Impairment to the carrying value of goodwill $109.2m primarily as a result of a change to ASG’s Used Vehicles 430.7 420.4 2.4% indepe
Slide 29: AASB16 Leases Impact and 2019FY Restatement
2020FY AASB16 LEASES IMPACT AND 2019FY RESTATEMENT 2020FY For personal use only 2019FY Statutory 2020FY Statutory A$m Pre AASB16 AASB16 After AASB16 A$m Pre AASB16 AASB16 After AASB16 Total Revenue 1,693.6 1,693.6 Total Revenue 1,701.71 1,701.71 Gross Profit 275.5 275.5 Gross Profit 265.37 265.37 Op
Slide 30: H2 2020FY Op Ex Bridge
H2 2020FY OP EX BRIDGE ASG COVID-19 RESPONSE & IMPACTS For personal use only ASG’s Op Ex response has been calibrated to ensure high levels of expense reduction whilst positioning the business to take advantage of any post COVID-19 bounce back in demand
Slide 31: Statutory PBT to Normalised PBT Reconciliation
STATUTORY PBT TO NORMALISED PBT RECONCILIATION 2020FY For personal use only
Slide 32: ASX Announcement | August 2020
ASX ANNOUNCEMENT | 26 AUGUST 2020 2020FY For personal use only
Slide 33: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER For personal use only 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 purpo
Slide 34: For personal use only
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