Asbury Automotive Group Inc · NYSE:ABG

Asbury Automotive — Merger or Acquisition (July 2020)

20 slides from Asbury Automotive's merger presentation, Jul 6, 2020

  1. Slide 1: Business Update and Acquisition of Park Place Dealerships

    Business Update and Acquisition of Park Place Dealerships July 6, 2020 1 © Asbury Automotive Group 2020. All rights reserved.

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements To the extent that statements in this presentation are not recitations of historical fact, such statements constitute “forward-looking statements" as such term is defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this presen

  3. Slide 3: Asbury's Acquisition of Park Place – Opportunity to Re-engage and Re-negotiate

    Asbury’s Acquisition of Park Place – Opportunity to Re-engage and Re-negotiate 1 Asbury business quickly rebounding from COVID-19 low point in April (SAAR at 8.6M) 2 Momentum and expense re-alignment expected to drive enhanced profitability and cash flow 3 Acquisition enhances scale, diversification

  4. Slide 4: Business Update – Successfully Navigating COVID-19

    1 Business Update – Successfully Navigating COVID-19  Strong rebound in May and June with PTI consistent with pre-COVID levels  Recent performance and accelerating trends support a positive current outlook for back half of 2020  New volume for June down from LY due to lower inventory levels, but

  5. Slide 5: New and Used Car Sales Recovering

    1 New and Used Car Sales Recovering New Vehicle Unit Sales (Same Store) % of 2019 volume 66% 80% 84% 8,844 7,927 7,978 7,070 6,695 5,219 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Used Retail Vehicle Unit Sales (Same Store ) % of 2019 volume 62% 93% 101% 6,698 7,138 6,860 6,659 6,96

  6. Slide 6: Parts & Service Gross Profit Improving

    1 Parts & Service Gross Profit Improving Parts & Services Gross Profit (Same Store; $ in millions) % of 2019 GP 53% 64% 100% 2019 Average: $44.3 Customer Pay Repair Order Traffic % of 2019 Volume (Same Store; RO Count in thousands) 57% 78% 94% 2019 Average: 105.4 Parts and service coming back as eco

  7. Slide 7: Actions Taken During COVID-19 Pandemic

    2 Actions Taken During COVID-19 Pandemic  Top priority remains maintaining the health and safety of our employees and guests  Reduced store hours and adjusted business in compliance with relevant guidelines  Significantly reduced marketing expenses  Accelerated and increased focus on digital and

  8. Slide 8: Asbury on Firm Footing with Quick Recovery and Positive Momentum

    2 Asbury on Firm Footing with Quick Recovery and Positive Momentum (1) June April May Estimates Same store: New unit growth -34% -20% -16% Used unit growth -38% -7% 1% P&S gross profit growth -47% -36% 0% New margin 4.8% 4.5% 5.7% Used margin 5.6% 7.0% 8.9% F&I PVR $ 1,604 $ 1,704 $ 1,823 All stores

  9. Slide 9: Park Place Addition Transforms Asbury into Stronger, More Diverse Company

    3 Park Place Addition Transforms Asbury into Stronger, More Diverse Company Asbury(1) Park Place(1) Pro Forma(2) Luxury Import Revenue by 36% 43% Luxury Category 100% Domestic 21% Dealerships 83 8 91 Revenue (MM) $7,210 $1,750 $8,960 Revenue per $87 $219 $98 dealership (MM) Adj. EBITDA (MM)(4) $333

  10. Slide 10: Benefits of Luxury Dealerships

    3 Benefits of Luxury Dealerships Asbury(1) Pro Forma(2) Luxury Luxury 36% Others Others 51% 49% 64% Asbury’s Pre-tax Store Level Income(3) Asbury’s New Vehicle Gross Profit Per Unit Luxury Import Domestic Luxury Domestic Import Expect to shift brand mix from 36% to 49% luxury, which is more resilien

  11. Slide 11: Meaningfully Increases Presence to Attractive Dallas Market

    3 Meaningfully Increases Presence to Attractive Dallas Market Current Demographic(1) Economic Forecast 2018 – 2023(2) HH Income $125K+ 23.7% 20.1% 19.4% Dallas Mkt National Texas Dallas, home to 24 Fortune 500 companies, is one of the top luxury car markets in the country (1) Source: Census Reporter

  12. Slide 12: Revised Transaction With Favorable Terms That Create Flexibility

    4 Revised Transaction With Favorable Terms That Create Flexibility Prior Deal New Deal  19 franchises: 3 Mercedes-Benz, 2 Lexus, 2  12 franchises: 3 Mercedes-Benz, 2 Lexus, 1 Jaguar, 2 Land Rover, 1 Porsche, 1 Volvo, 3 Jaguar, 1 Land Rover, 1 Porsche, 1 Volvo, 3 Sprinter, and 5 ultra luxury (1 Ben

  13. Slide 13: Maintaining Strong Credit Profile and Liquidity Position

    4 Maintaining Strong Credit Profile and Liquidity Position  Ended June in a strong liquidity position, with approximately $730 million of available liquidity, including cash, floor plan offsets, revolver and used vehicle line  Additional liquidity available through mortgages and debt capital marke

  14. Slide 14: Emerging Trends Support Asbury/Park Place Combination

    5 Emerging Trends Support Asbury/Park Place Combination Theme Post-COVID-19 Emerging Trends Personal Car Ownership  Potential increase in personal car ownership as consumer preferences may shift away from mass transit / ride sharing / car pooling Miles Driven  May see greater increase in miles dri

  15. Slide 15: Long Term Value Creation Criteria

    5 Long Term Value Creation Criteria Contribution Award-winning stores with strong Enhances Portfolio margins and loyal following Strong presence in attractive Higher Growth Market DFW market Higher concentration of premium Improved Brand Mix Strategic luxury brands Strategic Increased parts and serv

  16. Slide 16: Appendix

    Appendix 16 © Asbury Automotive Group 2020. All rights reserved.

  17. Slide 17: Asbury Automotive Group

    Asbury Automotive Group (NYSE:ABG) . Fortune 500 automotive retailer . 31 vehicle brands(2) . 7th largest U.S. based franchised auto retailer . Sold over 193,000 retail vehicles(1) . $7.2 billion in total revenues(1) . Handled over 2.2 million repair orders(1) . 83 dealership locations; 102 franchis

  18. Slide 18: Asbury to Acquire Park Place Dealerships

    Asbury to Acquire Park Place Dealerships Top Ranked in the Largest Dealerships in the Country 10 Mercedes-Benz of Dallas Mercedes-Benz of Fort Worth Mercedes-Benz of Arlington 15 Lexus Grapevine Asbury announces acquisition of Park Place Lexus of Plano 10  $1.7 billion in annual revenue(1)  8 luxu

  19. Slide 19: Large, Well Maintained, Award Winning Dealerships

    Large, Well Maintained, Award Winning Dealerships Leasing premier real estate portfolio with ideal retail locations on favorable terms; includes a right to purchase option 19 © Asbury Automotive Group 2020. All rights reserved.

  20. Slide 20: Transformational to Asbury's Brand Portfolio

    Transformational to Asbury’s Brand Portfolio Other Pro Forma Brand Mix(3) (1,2) Other Asbury (1) Park Place Park Further diversifies our brand mix (1) Based on total revenue for twelve months ended 12/31/2019. (2) Excludes non-franchised revenue related to stand alone collision centers (3) Pro forma

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