Eagers Automotive Limited · ASX:APE
Eagers Automotive — H1 2021 Earnings Presentation
46 slides from Eagers Automotive's earnings presentation, Aug 26, 2021
Slide 1: 1H 2021 Results
For personal use only eqgels .. qutomotive 1H 2021 Results Keith Thornton | Chief Executive Officer Sophie Moore | Chief Financial Officer 26 August 2021
Slide 2: Financial Highlights 1H 2021
Financial Highlights 1H 2021 Group delivered strong underlying operating profit result despite ongoing operational impacts of COVID-19 Underlying Operating Daimler Trucks Gain on PBT Sale (Pre-Tax) $218.6m $30.7m Corporate Debt Net of Cash?) $32.0m <2} autémotive
Slide 3: Strategic Highlights 1H 2021
Strategic Highlights 1H 2021 Leveraging favourable market conditions to continue to accelerate Next100 strategic priorities M&A Opportunities Enal | Eagers Automotive 1H 2021 Results & autémotive
Slide 4: Agenda
For personal use only Agenda Financial Results . Market Context . Strategic Priorities . Outlook 1. 2 3 4. easyauto123 5 6. Q&A
Slide 5: Financial Results
For personal use only eqadcels .. qutomotive Financial Results
Slide 6: Summary P&L
Summary P&L i} $ MILLION | 1H21 ! 1H20 Revenue from continuing operations” H 4,699.2 1 4,155.0 Underlying operating EBITDAI from continuing operations” ' 252.9 ' 78.6 en Underlying Underlying operating PBT from continuing operations” H 218.6 40.3 Specific items reported below underlying profit” ' 48
Slide 7: Underlying to Statutory PBT - 1H21
Underlying to Statutory PBT - 1H21 4 _ . 1 18 218.6 (62) Underlying Profit AASBI6 Lease Standard Revaluation of Properties Sale of Assets Other Statutory Profit Before Tax Before Tax ween Underlin: ‘ory Pr fore Tax for 1H 202° <2) Gutemnotive
Slide 8: For personal use only
For personal use only 4.6 6.2 2.3 2.5
Slide 9: Strong Balance Sheet
Strong Balance Sheet Effective management of net working capital combined with strong liquidity position and owned property portfolio jlun-21 | FY20 Mvm myn $m $m $m — Effective working capital management, greater returns Inventory 961 1,026 (65) = 3%) on a leaner base Bailment finance (813) (844) 3
Slide 10: Market Context
For personal use only eqadcels .. qutomotive Market Context
Slide 11: For personal use only
For personal use only ‒ ‒ ‒ 140.0% 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% (20.0%) (40.0%) (60.0%)
Slide 12: Eagers geographic reach is unique
Eagers geographic reach is unique Scale & geographic diversity capitalising on market recovery across all regions and mitigating impacts of localised lockdowns State Performance & EA Share EA Market Australian New Total New State Gri Vehicle Market | Vehicle Market Share! Growth YOY QLD 21.6% 33.9%
Slide 13: Disciplined execution + favourable environment
Disciplined execution + favourable environment Strong financial performance driven by relentless execution - focusing on key income drivers & restructuring our cost base, enabled by technology & supported by favourable market dynamics ENVIRONMENT EXECUTION Economic Social Conditions Factors Income C
Slide 14: Market dynamics drive our order bank
Market dynamics drive our order bank New vehicle demand continues to materially outstrip supply — Recovery in new vehicle market and supply constraints have contributed to month-on-month order bank growth — Order bank growth expected to continue as new vehicle demand remains strong and vehicle suppl
Slide 15: Margin versus Expense
Margin versus Expense Annualised savings in excess of $100m on pre COVID-19 cost base delivering sustainable, long-term uplift in ROS Driven by Cost Reduction Cost out driving uplift in ROS relative to previous peak industry conditions — Disciplined Focus: Cost out delivering incremental, _ sustaina
Slide 16: Strategic Priorities
For personal use only eqadcels .. qutomotive Strategic Priorities
Slide 17: NEXT100 Strategy
NEXT100 Strategy Providing integrated mobility solutions for the next 100 years OPTIMISE DEVELOP GROW Engage our customers, everywhere Online. At the airport. In shopping malls. In multi- brand service hubs. At home. At work Our flexible owned and ty portfolio. tinue to lifestyles, circumstc wants a
Slide 18: Engage our Customers, Everywhere
Engage our Customers, Everywhere Acceleration of our property strategy provides platform to implement omni-channel retail approach ee Value of Property Acquired $110 million — $1 million Exited Leases Omni-channel Number Exited due to Property Acquisitions 4 8 Retail Number Exited due to Consolidati
Slide 19: Engage our Customers, Everywhere
Engage our Customers, Everywhere AutoMall strategy shifting into execution mode with the opening of AutoMall West Service and Albion Multi- Brand Service Centre
Slide 20: Engage our Customers, Everywhere
Engage our Customers, Everywhere © AutoMall strategy shifting into execution mode with the opening of AutoMall West Service and Albion Multi- Brand Service Centre | Eagers Automotive 1H 2021 Results & Qui Fhotive
Slide 21: Engage our Customers, Everywhere
Engage our Customers, Everywhere ( fe) . AutoMall strategy shifting into execution mode with the opening of AutoMall West Service and Albion Multi- Brand Service Centre QUTOMALL CITY S| CE | Eagers Automotive 1H 2021 Results <2] autémotive
Slide 22: Redefine our Workforce
Redefine our Workforce Cost out focus shifting towards productivity gains, enabled by technology and delivering a superior customer experience QO Redesigning our workplace Q Redefining our workforce Q Enabled by in-house technology development Q Productivity metrics reset 0 cx ONLINE FINANCE APPLICA
Slide 23: Deliver Optimised Vehicle Finance Solutions
Deliver Optimised Vehicle Finance Solutions Leveraging scale, expertise, partnerships and technology to drive our financial services model automotive Unique POS | Unique Scale | Unique Tool Kit PARTNERSHIPS ONLINE Headwinds Tailwinds FINANCE VOLKSWAGEN paced +. CIAL SER APPLICATION stgeorge FINANCIA
Slide 24: Support Innovation
Support Innovation Integrated technology solutions enhance customer experience and provide platform for productivity gains f 10 MINUTE SALES APP ONLINE FINANCE PRE-APPROVAL ONLINE SERVICE BOOKING SMS PAYMENTS ONLINE SERVICE APPROVAL Work Summary ‘Ask our Service team about P paying for your service
Slide 25: Reinvest with Discipline
Reinvest with Discipline Reinvestment strategy focused on disciplined M&A activity across core pillars of Scale, Strategic, Enablers & Consolidation Scale Consolidation <2} autémotive
Slide 26: easyauto123
For personal use only eqadcels .. qutomotive easyautol123
Slide 27: We have a clear focus
We have a clear focus Simplified business model post AHG integration with enhanced scale over a national footprint SIMPLIFYING FOR SUCCESS SCALE ON A NATIONAL FOOTPRINT 2015-2019 2021 onwards . > EAGERS AHs> QD Sieve Franchised Auto v v Franchised Trucks v v Independent Used Cars @Qeoazoos -easyauto
Slide 28: We are uniquely positioned
We are uniquely positioned Our globally unique new car scale provides a fast track to dominate the used car market in Australia INDEPENDENT USED easyautol23 Brand vision The easyautot23 brand is focused on providing customers with.. (SLITHIA O cravana 1 Z 3 AutoNation CARMAX Best Biggest Best experi
Slide 29: We are transforming the business model
We are transforming the business model Clear strategy to drive growth with key metrics continuing to trend in the right direction post AHG merger KEY ENABLERS TO DRIVE PRE-OWNED VEHICLE BUSINESS GROWTH easyauto123 Performance Pre & Post AHG Merger 1) £ s METRICS FY2019 vs 1H 2021 (2) Reconditioning
Slide 30: Independent Used profit has grown YoY
Independent Used" profit has grown YoY Asustainably profitable business provides the platform to accelerate top line growth Independent Used financial performance post AHG Merger — - Full Integration with Franchised Auto providing scale and expertise benefits +-10m - Full Integration with Carlins Au
Slide 31: Winning the race to the customer
Winning the race to the customer Technology enablers leading to online sales and driving omni-channel results MOBILE ONLINE CUSTOMER WEBSITE RI ‘SIGN EXPERIENCE EXPERIENCE ONLINE FINANCE PRE-APPROVAL THEBEST WAY TO & USED CARS. | Eagers Automotive 1 easyautolZ3 THE BEST WAY TO & USED CARS. = FILTER
Slide 32: easyauto123 growth plans
easyauto123 growth plans Expansion of easyauto123 footprint across Australia & New Zealand via repurposing existing facilities 2021 Results - New Zealand: 2 new sites opened in 1H 2021 with Toenere easyauto123 now operational in 3 locations across Auckland (North, Central & South) - Sydney: Relocati
Slide 33: New Zealand expansion
New Zealand expansion | easyauto123 now operational in New Zealand } North Harbour Eagers Automotive 1H 2021 Results (<0) SIRE tive
Slide 34: Flagship Brisbane Store
Flagship Brisbane Store easyauto123 flagship location planned for BNE AutoMall Eagers Automotive 1H 2021 Results (<0) SIRE tive
Slide 35: Outlook
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Slide 36: Outlook
Outlook Disciplined focus on accelerating our Next100 Strategy ea123 Growth Finance Penetration M&A Productivity Property agers Automotive 2021 Results & autémotive
Slide 37: Thank you
ly USE ON =THANK — — na FOr perso @ ers. Eagers Automotive 1H 2021 Re sults Qui otive
Slide 38: Questions?
For personal use only QUESTIONS?
Slide 39: Disclaimer
Disclaimer The information in this document (information) does not contain all information necessary for investment decisions, is not intended to be an offer, invitation or recommendation with respect to shares, is not financial product advice, and is intended to be general background information on
Slide 40: Appendix
ly USE ON — Appendix na FOr perso @ ers Eagers Automotive 1H 2021 Results x au otive
Slide 41: Statutory to Underlying EBITDAI & PBT - 1H 2021
Statutory to Underlying EBITDAI & PBT - 1H 2021 Underlying Continuing Operating” 252.9 (13.7) a” 6) 218.6 (60.5) 158.1 Impairment - - - - - - - Govt Wage Subsidy Income COVID-19 = = = = = = = Brand Restructure Compensation O4 - - - O4 (0.1) 03 AASB16 Lease Standard 82.9 (50.9) (20.2) 2 118 (3.5) 83
Slide 42: Statutory to Underlying EBITDAI & PBT - 1H 2020
Statutory to Underlying EBITDAI & PBT - 1H 2020 Underlying Continuing Operating” 78.6 Impairment - Govt Wage Subsidy Incorne COVID-19 66.0 AASB'6 Lease Standard 810 Revaluation of Properties - Rent Waivers COVID-19 6.0 Business Acquisition & Integration (19) Costs Employee Underpayments (1.1) Total
Slide 43: AASB 16
AASB 16 Increase in PBT of $11.8 million during the period 1H 2021 1H 2020 Deferred tax asset 70.5 63.3 72 T4% EBITDAI up 82.9 81.0 19 2.3% EBIT up 32.0 169 15.1 89.3% (Profitless)beforetox M88) 18 257.3% | Operating cash flows up 519 56.0 (4.1) (7.3%) Financing cash flows down (51.9) (56.0) 4l 73%
Slide 44: Definitions
44 Definitions Non-IFRS Financial Information AHG is defined as Automotive Holdings Group Limited CX is defined as customer experience EA is defined as Eagers Automotive Limited (formerly AP Eagers Limited) EBIT is defined as earnings before interest and tax EBITDA is defined as earnings before inte
Slide 45: Definitions
Definitions Non-IFRS Financial Information PBT margin is calculated as profit before tox before significant items as a percentage of revenue PCP is defined as prior corresponding period POS is defined as Point-of-Sale ROS is defined as Return on Sales which is defined as Underlying Operating Profit
Slide 46: For personal use only
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