Inchcape Plc · LSE:INCH
Inchcape — Investor Presentation (August 2021)
11 slides from Inchcape's investor presentation, August 2021
Slide 1: Investor presentation
Investor presentation August 2021
Slide 2: Inchcape: Group overview
Inchcape: Group overview Who we are Global presence: 36 markets, with an EM focus Key: Distribution Retail APAC UK & Europe • Largest independent global automotive distributor Australia Belgium Hong Kong Greece o Distribution accounts for vast majority of Group profits Romania, Bulgaria Singapore Br
Slide 3: Distribution business model
Distribution business model Sales & Marketing Logistics Network Management Retailing Aftersales 1 2 4 3 5 5 6 9 7 9 8 9 National Network Aftersales and marketing 6 servicing management 4 Brand positioning 8 2 5 7 1 3 Product planning 9 Imports & logistics Parts New & Used distribution vehicle sales
Slide 4: Revenue trend vs 2019: positive momentum
Revenue trend vs 2019: positive momentum Organic revenue growth (vs 2019) 1H20 2H20 1H21 1% 2% (6)% (3)% (9)% (17)% vs 2020 Group +37% Distribution +33% (29)% (30)% Retail +44% (29)% Group Distribution Retail 4
Slide 5: 1H21 results: strong business performance
1H21 results: strong business performance 2021 2020 2019 H1 H2 H1 H1 Revenue £3.9bn £3.8bn £3.0bn £4.7bn1 Organic growth % +37% (9)% (29)% Operating margin % 4.1% 3.6% 0.9% 3.8% PBT £143m £120m £9m £156m Free cash flow £184m £182m £(5)m £25m Figures are stated pre-exceptionals 1: 2019 result include
Slide 6: Strategic priorities
“Bringing Mobility to the world’s communities - for today, for tomorrow and for the better” Strategic priorities
Slide 7: Opportunities for an ambitious Inchcape
Opportunities for an ambitious Inchcape Why our OEM partners need us? Inchcape key market TIVs vs Typical ‘retail market’ TIV1 22m 17m Non-INCH market 4.7m - Distribution is our specialism INCH retail market INCH distribution market - We are more nimble, faster and efficient 2.3m 1.7m - Majority of
Slide 8: Distribution fragmentation a huge opportunity
Distribution fragmentation a huge opportunity Annual new car volumes (units) 90m 17m Distribution markets offer greater GDP+ growth prospects New market Typically opportunities insourced e.g. China, US, UK by OEMs 30% Inchcape markets coverage of ‘typical distribution markets’ Inchcape 0.2m Total nu
Slide 9: Capturing the vehicle lifecycle opportunity
Capturing the vehicle lifecycle opportunity Vehicle Lifecycle Value New vehicle import 1st sale Initial user Subsequent users (0-4 years) (4+ years) % Vehicle lifetime value1 2nd sale % Revenue 60% 40% 3rd sale Profit 50% 50% % % Finance & Insurance Aftersales Trade-in Currently underserved 1: analy
Slide 10: Strategic priorities: distribution is our beating heart
Strategic priorities: distribution is our beating heart Distribution Excellence Vehicle Lifecycle Services People, Culture & Capabilities Digital, Data & Analytics Efficient Scale Operations 10
Slide 11: Investment proposition: growth and cash returns
Investment proposition: growth and cash returns Disciplined capital allocation Strong cash- conversion Leveraging our Past five years: distribution scale Expansion opportunities FCF = 60-70% of - Dividends: £390m GDP+ organic operating profit Global sharing of - Acquisitions: £600m growth best pract