Autosports Group Ltd · ASX:ASG
Autosports — FY2019 Earnings Presentation
32 slides from Autosports's earnings presentation, Aug 29, 2019
Slide 1: ASG Investor Presentation August 2019
For personal use only ASG Investor Presentation August 2019 1
Slide 2: Agenda
AGENDA For personal use only 2019FY FINANCIAL RESULTS SUMMARY FINANCIAL TRENDS ASG MARKET REVIEW & STRATEGY 2020FY FOCUS AREAS & OUTLOOK APPENDIX 2
Slide 3: 2019FY Financial Results Summary
For personal use only 2019FY FINANCIAL RESULTS SUMMARY FINANCIAL TRENDS ASG MARKET REVIEW & STRATEGY 2020FY FOCUS AREAS & OUTLOOK APPENDIX 3
Slide 4: 2019FY Results
2019FY RESULTS For personal use only REVENUE, EBITDA AND NPAT OPTIMISED IN A CHALLENGING NEW CAR ENVIRONMENT GROSS PROFIT AND GROSS MARGINS CONTINUE TO GROW ON AN IMPROVED REVENUE MIX H2 2019FY MUCH BETTER THAN H1 2019FY DRIVEN BY IMPROVED INVENTORY MANAGEMENT AND OP EX REDUCTIONS OUTLOOK FOR 2020FY
Slide 5: 2019FY Financial Result
2019FY FINANCIAL RESULT NORMALISATIONS A$m Normalised % movement Normalised Statutory reclassification of $66.8M in Other 2018FY on PCP 2019FY For personal use only Revenue to Cost of Sales Total revenue 1,744.0 0.2% 1,748.1 Gross profit 264.6 3.6% 274.1 Result excludes $0.8M pre-tax of acquisit
Slide 6: 2019FY Highlights – A Tale of Halves
2019FY HIGHLIGHTS – A TALE OF 2 HALVES 2019FY seasonalisation shows higher than normal H2 contribution. Over the 2017FY and 2018FY periods, PBT seasonality ranged between 55% and 57% of H2 contribution. H1 HEADWINDS For personal use only H1 2019FY vs H2 2019FY Consolidated accounts (Normalised) Wo
Slide 7: 2019FY Improving Revenue Mix
2019FY IMPROVING REVENUE MIX Normalised Trading Result FRONT-END REVENUE For personal use only $m 2018FY 2019FY % movement Front end New Vehicles 1,019.6 977.4 -4.1% Total luxury market on the East Coast declined 11.6% on 2019FY Used Vehicles 415.5 420.4 1.2% ASG saw new car revenue decline limi
Slide 8: Financial Trends
For personal use only 2019FY FINANCIAL RESULTS SUMMARY FINANCIAL TRENDS ASG MARKET REVIEW & STRATEGY 2020FY FOCUS AREAS & OUTLOOK APPENDIX 8
Slide 9: 2019FY Financial Trends
2019FY FINANCIAL TRENDS REVENUE GROWTH For personal use only ASG has a strong record of generating consistent revenue growth 2015FY – 2019FY total revenue growth CAGR 22% 2015FY – 2019FY new vehicle revenue growth CAGR 22% 2015FY – 2019FY service revenue growth CAGR 23% 2015FY – 2019FY par
Slide 10: Revenue Bridge
For personal use only REVENUE BRIDGE 10
Slide 11: Stable Margins
STABLE MARGINS NORMALISED EBITDA MARGIN NORMALISED GP MARGIN For personal use only 4.0% 16.0% 15.71% 3.8% 15.58% 3.5% 3.5% 15.5% 15.65% 3.3% 3.4% 15.2% 3.0% 3.2% 3.2% 3.0% 14.9% 2.5% 15.0% 2.9% 2.7% 2.4% 2.5% 2.0% 2.2% 2.3% 14.5% 2.0% 1.5% 14.3% 14.3% 1.0% 1.3% 1.4% 14.0% 14.0% 0.5% 13.5% 0.0% FY14
Slide 12: Cash Flow
CASH FLOW Disciplined cash management For personal use only PPE Expenditure MacGregor land $6.4M Gold Coast Bentley and Maserati fit-out $3.2M Capitalised service loan cars $2.2M Maintenance Capex $2.4M 2020FY Capex expected to be $6.5M 12
Slide 13: Balance Sheet
BALANCE SHEET MAJOR MOVEMENTS SINCE 30 JUNE 2018 For personal use only Balance Sheet 30-Jun-18 30-Jun-19 Total Borrowings 479,543 474,164 Net debt up $7.6M to $67.7M Cash & Cash Equivalents (14,302) (11,292) Net Debt 465,241 462,872 o Corporate debt increase of $4.6M Inventory Finance (Floorplan)
Slide 14: ASG Market Review & Strategy
For personal use only 2019FY FINANCIAL RESULTS SUMMARY FINANCIAL TRENDS ASG MARKET REVIEW & STRATEGY 2020FY FOCUS AREAS & OUTLOOK APPENDIX 14
Slide 15: ASG Strategy
ASG STRATEGY Since listing ASG has pursued a clear and focused strategy balanced between acquisitions, organic and greenfield growth NOV 2016 APR 2017 NOV 2017 APR 2018 NOV 2018 AUG 2019 SEP 2019 Audi Centre Brisbane Mercedes- For personal use only Doncaster BMW Melbourne BMW Canterbury
Slide 16: Acquisition Update
ACQUISITION UPDATE The environment for accretive acquisitions has improved SYDNEY CITY PRESTIGE For personal use only Fits with successful Prestige Auto Traders used car hub strategy Will help drive growth in used car revenues Used car market double the size of the new car market Turnover ap
Slide 17: New Vehicle Market Trends
NEW VEHICLE MARKET TRENDS Total Market 2008/9 vs 2018/9 2018 calendar year the total market was 3% down on the record 2017 The market has now experienced 16 consecutive months of decline For personal use only market equalling the decline experienced in 2008/9 2019FY total market down 7.8% Ju
Slide 18: East Coast Luxury & Prestige 2019FY
EAST COAST LUXURY & PRESTIGE 2019FY ASG continues to outperform the market in challenging market conditions. ASG saw like for like new vehicle revenue decline by 9.4% during 2019FY. NSW / VIC / QLD LUXURY NSW / VIC / QLD PRESTIGE For personal use only 120,000 111,234 300,000 98,322 251,581 100,000 2
Slide 19: Headwinds Starting to Ease
HEADWINDS STARTING TO EASE ASG was impacted by a number of non-recurring factors in 2019FY WLTP BUGS HAIL For personal use only The implementation of new global emission Heightened surveillance by the Department Sydney was affected by a severe hail testing procedures in Europe (WLTP) has of Ag
Slide 20: ASG New Car Revenue by Brand
ASG NEW CAR REVENUE BY BRAND ASG IS WELL PORTFOLIO BALANCE AUDI EXAMPLE POSITIONED For personal use only Improved revenue balance between Audi, BMW and Mercedes-Benz Audi is down 32.2% calendar YTD ASG’s brand partners has increased represent 67% of the total luxury market resilience in Austra
Slide 21: Used Cars – Growth with Opportunity
USED CARS – GROWTH WITH OPPORTUNITY Hub strategy continues to drive positive growth in Used Cars For personal use only FCAI* estimate the used car market at 2.2m units per annum. Used Cars Double the new car market Total used car revenue grew 1.2% in 2019FY ASG operates a hub strategy in Sydney an
Slide 22: Maturing Back-End
MATURING BACK-END ASG's strategy to grow back-end revenue streams is on track and driving both revenue and improved gross margins for the business. Back-end revenue growth continues to improve ASG's strength, flexibility and resilience. For personal use only "FRONT-END" “BACK-END" New car sales Fina
Slide 23: 2020FY Focus Areas & Outlook
For personal use only 2019FY FINANCIAL RESULTS SUMMARY FINANCIAL TRENDS ASG MARKET REVIEW & STRATEGY 2020FY FOCUS AREAS & OUTLOOK APPENDIX 23
Slide 24: 2019FY Results Recap
2019FY RESULTS RECAP For personal use only REVENUE, EBITDA AND NPAT OPTIMISED IN A CHALLENGING NEW CAR ENVIRONMENT GROSS PROFIT AND GROSS MARGINS COTINUE TO GROW ON AN IMPROVED REVENUE MIX H2 2019FY MUCH BETTER THAN H1 2019FY DRIVEN BY IMPROVED INVENTORY MANAGEMENT AND OP EX REDUCTIONS OUTLOOK FOR 2
Slide 25: 2020FY Outlook
2020FY OUTLOOK For personal use only NEW VEHICLE MARKET CONDITIONS EXPECTED TO GRADUALLY IMPROVE THROUGH 2020FY ASG HAS LIKE FOR LIKE GROWTH OPPORTUNITIES ESPECIALLY IN WLTP AFFECTED BRANDS SERVICE AND PARTS GROWTH EXPECTED TO CONTINUE IN 2020FY INTEGRATION OF MERCEDES-BENZ HORNSBY AND SYDNEY CITY P
Slide 26: Appendix
For personal use only 2019FY FINANCIAL RESULTS SUMMARY FINANCIAL TRENDS ASG MARKET REVIEW & STRATEGY 2020FY FOCUS AREAS & OUTLOOK APPENDIX 26
Slide 27: ASG Brand Portfolio
ASG BRAND PORTFOLIO LUXURY (27) PRESTIGE(6) USED CAR COLLISION ACQUISITIONS DEALERSHIPS (3) REPAIR AND For personal use only FACILITIES (4) GREENFIELDS FY19 (4) 6 4 1 1 Gold Coast 5 1 2 1 Sydney & Brisbane sites 1 2 Passenger 1 Vans 1 Gold Coast 2 2 1 1 Canterbury 1 1 1 Mosman Smash Repairs 4 1 2 2
Slide 28: 2019FY Statutory Financials
2019FY STATUTORY FINANCIALS Statutory History For personal use only Consolidated accounts (statutory) Statutory Highlights $m 2017FY * 2018FY 2019FY Total Revenue 906.1 1,692.0 1,693.6 Gross Profit 142.6 265.9 275.5 Interim dividend of 2.0c per share fully franked EBITDA 28.4 59.6 50.5 Final div
Slide 29: Capital Structure
CAPITAL STRUCTURE 30 June 2019 Capital Structure For personal use only Facility $m $m 2018FY 2019FY Capital Loans 70.1 74.8 Other Loans & Hire Purchase facilities 4.3 4.2 Cash (14.3) (11.3) Net debt / (cash) (Excluding floorplan finance) 60.1 67.7 Net Debt (Cash) / EBITDA (adjusted)* 1.2 1.7 Floorpl
Slide 30: 2019FY Normalised Financial Result
2019FY NORMALISED FINANCIAL RESULT Normalised Trading Result For personal use only BASIS OF PREPARATION $m 2018FY 2019FY Growth on PCP New Vehicles 1,019.6 977.4 -4.1% Used Vehicles 415.5 420.4 1.2% Statutory reclassification of $66.8M in Finance & Insurance 25.1 23.5 -6.4% Other Revenue to Cost o
Slide 31: Statutory to Pro Forma Reconciliation
STATUTORY TO PRO FORMA RECONCILIATION Statutory Reconciliation For personal use only Normalised Normalised 30-Jun-18 30-Jun-19 $m $m Statutory revenue 1,692.0 1,693.6 *Statutory revenue reclass 62.2 54.4 Discontinued business Alfa Fiat (10.2) (12.3) Pro forma revenue 1,744.0 1,735.8 Statutory PBT 37
Slide 32: 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 For personal use only presentation. The information in this presentation is of general background and does not purpo