Peter Warren Automotive Holdings Ltd · ASX:PWR
Peter Warren Automotive — H1 FY2024 Earnings Presentation
28 slides from Peter Warren Automotive's earnings presentation, Feb 21, 2024
Slide 1: H1 FY24 Results Presentation
H1 FY24 Results Prese 21 February 2024 mm Mark Weaver _... Victd —— Chief Executive Officer Chie cial Officer ie . ) 7 wate x . ae ary
Slide 2: Agenda
Agenda H1 FY24 Result Highlights 3 H1 FY24 Business Review 7 H1 FY24 Financial Summary 13 Outlook 20 Questions 22 Appendices 24 Peter Warren Group Half Year Results 2024
Slide 3: H1 FY24 Results Highlights
H1 FY24 Results Highlights Mark Weaver By : Z Chief Executive Officer | ion *
Slide 4: H1 FY24 Financial Highlights
H1 FY24 Financial Highlights Strong revenue growth enabled a small increase in EBITDA Revenue $1.20b H1 FY23 Revenue $1.00b Oz 8.5 cents H1 FY24 Interim dividend per share (1) Underlying result excludes one-off costs of $2.6m in HI FY24. No one-off costs occurred in Hi FY23. Peter Warren Group Half
Slide 5: PBT Bridge
PBT Bridge The increased EBITDA result was impacted by rising interest costs EBITDA +$0.7m ' i ! 8.0 H ' = ' ' H H | 2. 34.4 (7.9) (1.4) HIFY23 Acquisition GP Opex Interest D&A HiFY24 PBT EBITDA Reduction PBT (1) PBT is underlying and excludes one-off costs of $2.6m for acquisition expenses, legal c
Slide 6: H1 FY24 Highlights
H1 FY24 Highlights Revenue growth and acquisitions have mitigated margin pressure —_ — H1 FY24 Highlights Outlook ~ Margin pressure offset by revenue increase (20.4%) * Revenues are expected to continue to grow + Margins on new cars may taper, but good margins will continue in service, parts, afterm
Slide 7: H1 FY24 Business Review
H1 FY24 Business Review — Mark Weaver Chief Executive
Slide 8: External Factors Indicate Increasing Revenues
External Factors Indicate Increasing Revenues The 3-year service car parc is growing rapidly Annual Vehicle Deliveries 000 Missing vehicle sales 2015 2016S 2017,—=«2018._—S 2019 »S 2020S 2021 += 2022-2023 «= 2024 Source: Vlacts Orders v Deliveries Order Bank 3-year car parc increasing SaHAsSsssRAG F
Slide 9: Brilliant Basics Leading the Change
Brilliant Basics Leading the Change
Slide 10: Brilliant Basics
{Sh Brilliant Basics Driving organic growth through disciplined execution of the basics First class Embracing physical and digital channels CSI focused stomer Engageme Per-order growth from leveraging technology 65 years of established relationships 7 : : d \ National support functions Procurement s
Slide 11: FY17 FY18 FY19
✓ ✓ • ✓ • ✓ • • ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24F ✓ ✓ • ✓ • ✓ • • •
Slide 12: Leading The Change
Leading The Change Peter Warren is well-positioned for emerging industry change State of the New Energy Vehicle (NEV) Market Peter Warren’s NEV Readiness Now v 24/7 digital dealership + New Fuel Types provide customer choice: Y Delivering greater transparency (5) Knowledgeable sales staff y} Bb LBS
Slide 13: © ce © ‘S it <a N > i a
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Slide 14: H1 FY24 Financial Results
H1 FY24 Financial Results Volume and revenue growth drove increased EBITDA Revenue ($m) EBITDA ($m) 70.6 n3 1,203 999 54.0 . L Hi FY2q) HIFY22 Hi FY23 HIFY24 Hi FY2i) Hi FY222) Hi FY23 Hi FY242) New Vehicle Units Sold PBT (Sm) 15,762 45.2 13,384 365 34.4 ) ) [ i; | HiFY2i Hi FY22 HI FY23 HIFY24 Hi F
Slide 15: H1 FY24 Profit and Loss
H1 FY24 Profit and Loss EBITDA grew by $0.7m as revenue growth and acquisitions offset a reduction in gross profit margin HI FY24 HIFY23 Variance Variance oo $m $m $m % @ Revenue growth came from acquisitions and from our diverse revenue streams, with parts and C1) Revenue 1,203.1 999.0 +2041 +20.4%
Slide 16: Gross Profit Margin
Gross Profit Margin Acquisition and increased new vehicle supply diluted gross margin 20.8% 19.6% 19.1% 18.3% 17.6% HI FY22 H2 FY22 HI FY23 H2 FY23 HiFY24 19.6% 1.0% ces _18-3% C1) 0.2% “OM Y | +0.2% 17.6% 102%) — 03, oo -0.3% HI NewCar UsedCar Other Ha Impact of NewCar UsedCar ther FY23 Margins Mar
Slide 17: Operating Cost Bridge ($m)
Operating Cost Bridge ($m) Opex has been leveraged and is 0.9 ppts lower at 11.7% of revenue Opex as a % of Revenue @ Operating expenses have been tightly controlled 12.6%) ang ; 4 to mitigate margin reduction * Opex is down by 0.9 ppts to 11.7% of revenue 1.7% eo + Acost reduction program saved $7m
Slide 18: Cash Flow Statement
Cash Flow Statement 21% increase in operating cash flows enabled repayment of borrowings 68 8 8 co) HI FY24 H1 FY23 Variance on on * * Operating cash flow increased by 21.2% to $44.1m EBITDA 68.7 70.6 (2.7%) after including: Movement in working capital 9) 55) $6.4m outflow due to customer deposits M
Slide 19: Capital Structure Supports Growth
Capital Structure Supports Growth Net debt to property value provides considerable debt capacity Actual Actual Sim) 31Dec 23 30 Jun23.—‘Vatiance Cash and cash equivalents 23.9 50.6 (26.7) Borrowings (79.4) (58.9) (20.5) Net Debt (55.5) (8.3) (47.2) Land & Buildings at Valuation 228 229 Net Debt to p
Slide 20: Outlook
Outlook Mark Weaver Chief Executive Officer 20
Slide 21: Outlook
Outlook * Revenues are expected to continue to grow * New car margins may taper given the supply increase * Margins will continue to be good in service, parts, aftermarket, finance and insurance * Peter Warren will continue its focus on the basics: Gross profit Inventory * Cost reduction programs an
Slide 22: Questions
Questions
Slide 23: Disclaimer
Disclaimer 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 date of this presentation
Slide 24: Appendices
Appendice
Slide 25: Balance Sheet
Balance Sheet AASB 16 Reconciliation $m 31 Dec 23 30 Jun 23 Variance $m HI FY24 Hi FY23 Actual Actual Actual Actual Cash and cash equivalents Bg 50.6 (26.7) EBITDA (AASB 117) 53.4 56.9 Trade and other receivables gi 68.9 12.2 Decrease in operating lease expense 15.3, 137 Inventories 449.3 361.0 88.3
Slide 26: Adjustments to Statutory Income Statement
Adjustments to Statutory Income Statement Statutory Underlying " December half year end (ASm) Hi FY24 Hi FY23 Hi FY24 Hi FY23 Revenue 1,203.1 999.0 1,203.1 999.0 Cost of sales (991.4) (803.0) (991.4) (803.0) Gross profit 2.7 196.0 2.7 196.0 Gross profit margin 17.6% 19.6% 17.6% 19.6% Employee benefi
Slide 27: Definitions
Definitions AASB Australian Accounting Standards Board LFL Like for like Accounting Accounting standards, principles and practices applying by law or NEV Anew energy vehicle which includes hybrid, electric, hydrogen powered Standards otherwise generally accepted and consistently applied in Australia
Slide 28: 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 i Highway, Warwick Farm, NSW, 2170, Australia ~1 : 2. =
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