Peter Warren Automotive Holdings Ltd · ASX:PWR
Peter Warren Automotive — FY2023 Earnings Presentation
33 slides from Peter Warren Automotive's earnings presentation, Aug 22, 2023
Slide 1: Peter Warren Automotive Holdings Limited FY23 Results Presentation
22 August 2023 Peter Warren Automotive Holdings Limited FY23 Results Presentation Peter Warren Automotive Holdings Limited (ASX: PWR, “Peter Warren”) provides its FY23 Results Presentation relating to Peter Warren’s FY23 Results Announcement. -ENDS- This announcement was authorised for release by th
Slide 2: FY23 Results Presentation
- — Peter Warren 08 FY23 Results Presentation Tuesday 22 August 2023 Mark Weaver Victor Cuthell Chief Executive Officer Chief Financial Officer
Slide 3: Agenda
Agenda FY23 Result Highlights 3 FY23 Result Overview 6 FY23 Financial Summary 14 Strategy and Outlook 21 Questions 26 Appendices 28 Peter Warren Group Full Year Results 2023
Slide 4: FY23 Results Highlights
nc! <= Ag FY23 Results High Mark Wea
Slide 5: FY Financial Highlights
FY 23 Financial Highlights Diversity of revenue streams helped to deliver a solid resu Revenue EBITDA Underlying $2.07b $140.5m FY22 Revenue $1.71b FY22 EBITDA $130.1m 32.8 cents 11.0 cents Earnings per share FY23 Final dividend per share 22.0 cents FY23 Total dividend for the year (1) Underlying re
Slide 6: FY23 Highlights
FY23 Highlights Solid result in a dynamic environment FY23 Highlights In a higher cost environment, revenue growth driven in wi all parts of the business i Solid financial result of 8% EBITDA" growth through ) proactive and disciplined approach eG Order bank continues to grow and steady unwind is )
Slide 7: Mark Weaver
Mark Weaver Chief Executive Officer
Slide 8: Solid result reflects proactive and disciplined approach
Solid result reflects proactive and Oeh Arete” disciplined approach Driving revenue growth in a higher cost environment PBT bridge FY22 to FY23 5.3 — 88.200) = (0.7) [| 81.9 (2) @ Acquisitions reflects incremental contribution from Penfolds (additional 5 months), which is performing ahead of expecta
Slide 9: Vehicle Availability is Improving
Vehicle Availability is Improving Peter Warren e, Ne futomotve Holdings Supply is improving however significant pent-up demand remains ——_ Vehicle availability is improving * Improvement in vehicle supply in some OEM brands however consistency, port delays and product mix challenges remain + Improvi
Slide 10: Record order bank and pent-up demand support growth outlook
Peter Warren, Automotive Record order bank and pent-up demand support growth outlook 08 A Order bank remains strong with steady unwind anticipated —_ — Order book remains at record levels New Vehicle Order Write vs Deliveries * Order bank at June 2023 was up 155% since Dec 2021 + June 2023 saw deliv
Slide 11: Diversity of brands and revenue streams
Diversity of brands and revenue streams is a key growth driver Variance Excl. FY23 Fy22 Variance Acquisition Relative $m $m % Uplift Gross margin % New vehicles 1,380 1148 20.2% 11% A Low Used Vehicles 283 230 23.0% 13.6% A Low Parts and Accessories 233 180 29.3% 2.9% A Med Service 107 87 23.4% 13.5
Slide 12: ESG at Peter Warren
ESG at Peter Warren Cah Sigrcie Good progress across our Responsible Business Pillars + Carbon footprint review completed to establish a baseline to reduce carbon emissions from operations Environment and + Continued investment in our future through EV charging infrastructure and power capacity asse
Slide 13: Well positioned for NEV supply changes
Peter Warren e, Ne futomotve Well positioned for NEV supply changes — Fsigngs Segment diversity drives ~90% New Energy Vehicle model growth Market Share nl [e aH A by powertrain ¢ Y oo In the 6 months to June 2023, sales of including Battery Electric hens 03 Vehicles (BEVs) and Plug-in Hybrids (PHEV
Slide 14: Evolving our approach to digital
Evolving our approach to digital Capturing the online customer journey across the vehicle lifecycle Customer journey is progressively more digital A consistent ‘whole of life’ customer experience process is critical, with all channels synthesised and driven by customer choice Mining customer data an
Slide 15: FY23 Financial Summary
FY23 Financial Summary Victor Cuthell Chief Financial Officer
Slide 16: FY23 Financial Results
Peter Warren e Ne furomotve Holdings FY23 Financial Results Solid results across all key metrics EBITDA (Sm) Profit Before Tax ($m) $80.8 $81.1 $139.7 $75.7 | FY22 FY23 Fy21 FY22 FY23 (1) FY21 figures are proforma and FY22 / FY23 figures are statutory. Peter Warren Group Full Year Results 2023 15
Slide 17: FY23 Profit and Loss
FY23 Profit and Loss We drove revenue growth in every part of our business, and this offset cost inflation and achieved +8.0% EBITDA FY23 FY22 Variance Variance $m $m $m % Revenue 2,073.1 470.3 +3618 +21.1% Gross Profit 392.5 342.5 +50.0 414.6% Gross Profit % 18.9% 20.0% Operating expenses - underly
Slide 18: Gross Margin result solid at 18.9%
Gross Margin result solid at 18.9% Gross margins reduced from highs achieved during covid-19 trading 20.0% ; 7 FY21 FY22 FY23 Gross Margin % (Statutory) 0.9%" 20.9% 20.0% — — — — 18.9% (0.7%) (0.5%) — : (0.2%) (0.3%) (0.3%) FY22 Agency Agency Used Revenue Apprentice Other FY23 Gross Margin Acetg Imp
Slide 19: Operating Cost Bridge ($m)
Operating Cost Bridge ($m) Opex has been leveraged and is -0.8ppts lower as a % of revenue (v. LY) FY23 Opex % of Revenue 12.2% Opex % of Revenue (Agency-Accounting Adjusted) " 12.2% » Revenue adjusted for Agency-accounting by removing non-Agency revenue from prior periods 44 5.4 16.9 6.0 — 22.4 = —
Slide 20: Continued Strong Cashflow conversion
Continued Strong Cashflow conversion Operating cash flow conversion was 88.3% FY23 FY22 Statutory Statutory Venez sm sm % EBITDA 139.7 122.7 +13.9% Movement in working capital 27 (22.6) Movement in customer deposits (6.2) 15.6 Operating cash flow before floorplan interest 136.2 15.7 417.8% Floorplan
Slide 21: Capital Structure Supports Growth Plans
Capital Structure Supports Growth Plans Net Debt to property value provides considerable debt capacity Actual Actual 30 Jun 23 30 Jun 22 Mymt $m $m Cash and cash equivalents. 50.6 52.2 (1.6) Borrowings (58.9) (65.9) 7.0 Net Debt (8.3) (13.7) 5.4 Lease liabilities (219.1) (225.0) 5.9 Floorplan financ
Slide 22: Strategy and Outlook
Strategy and Outlook Mark-Weaver Chief Executive Officer
Slide 23: Three Primary Pillars
Three Primary Pillars Delivered through our workplace culture and core values Organic Growth Expansion of current operations in the sale of new and used vehicles and the provision of complementary services including: * New car bundling * Retail Life Cycle * Operational efficiencies * Car sales growt
Slide 24: The Peter Warren Growth Journey
The Peter Warren Growth Journey Successful execution of our Three Primary Pillars Demonstrated track record of delivering sustainable growth driven by organic and inorganic opportunities Successful acquisition and integration of new dealerships Evolving our property portfolio Peter Warren Group Full
Slide 25: Significant consolidation opportunities exist
Peter Warren e Ne furomotve Holdings Significant consolidation opportunities exist Market remains highly fragmented + The Australian auto industry is becoming more concentrated as the Australian dealership landscape (by dealer group and rooftops; larger dealer groups consolidate to gain efficiencies
Slide 26: Outlook
Outlook Market Conditions New vehicle demand continues to exceed supply, with the order book at record levels Improvement in vehicle supply has occurred in some OEM brands, however, challenges remain in supply, product mix and port delays We recognise the macroeconomic environment and consumer senti
Slide 27: Questions
Questions
Slide 28: Disclaimer
r Warren, motive Disclaimer igret IMPORTANT NOTICE The material in this presentation has been prepared by Peter Warren Automotive Holdings Limited (ASX: PWR) ABN 57 615 674 185 (“Peter Warren” or the Company’) and is general background information about Peter Warren's activities current as at the da
Slide 29: Appendices
4 , Appendices
Slide 30: Balance Sheet
Balance Sheet AASB 16 Reconciliation Peter Warren e Ne furomotve Holdings FY23 FY22 $m Actual Actual EBITDA (AASB 117) m8 99.3 Decrease in operating lease expense 29 23.4 EBITDA (AASB 16) 139.7 122.7 EBIT (AASB 117) 101.5 90.2 Decrease in operating lease expense 279 BA Increase in depreciation of ri
Slide 31: Adjustments to Statutory Income Statement
Peter Warren e Ne furomotve Holdings Adjustments to Statutory Income Statement Statutory Underlying “ June year end (ASm) FY23 FY22 FY23 FY22 Revenue 2,073.1 1,701.3 2,073.1 1,701.3 Cost of sales (1,680.6) (1,368.8) (1,680.6) (1,368.8) Gross profit 392.5 342.5 392.5 342.5 Gross profit margin 18.9% 2
Slide 32: Definitions
Definitions a Peter Warren, Ne Ausomotive Holdings AASB Australian Accounting Standards Board GPU refers to the gross margin per unit sold (GPU) ‘Accounting accounting standards, principles and practices applying by law or IFRS International Financial Reporting Standards Standards otherwise generall
Slide 33: Enquiries
Enquiries Investor relations contact details: Alexandra Abeyratne, Citadel-MAGNUS Phone: +61 438 380 057 Email: aabeyratne@citadelmagnus.com Company IR website: www,pwah.com.au Company address: 13 Hume Highway, Warwi
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