Eagers Automotive Limited · ASX:APE
Eagers Automotive — H1 2024 Earnings Presentation
36 slides from Eagers Automotive's earnings presentation, Aug 22, 2024
Slide 1: Half Year 2024 Results Presentation
eacers .. qutemotive For personal use only 22 August 2024 Market Announcements Office ASX Limited Half Year 2024 Results Presentation Attached is the Half Year Results Presentation for Eagers Automotive Ltd (ASX:APE) for the half year ended 30 June 2024. For more information: Keith Thornton Jon Snow
Slide 2: HY 2024 Results
eQogels .. “ automotive HY 2024 Results Keith Thornton | Chief Executive Officer Sophie Moore | Chief Financial Officer 7Z02 LSNONY ZZ
Slide 3: Agenda
For personal use only Agenda Overview Financial Operational Strategic Outlook Q&A CQ Sieivtive
Slide 4: Financial highlights HY 2024
Financial highlights HY 2024 =a Revenue $5.5bn => =©) ama Cash at Bank For personal use only $297.4m 3 | Eagers Automotive F —" Statutory PBT $181.3m & Available Liquidity $444.7m s Underlying Operating PBT” $182.5m ii Es Owned Property?) $726.9m auditors f1H24) and 31 (comparative financial informa
Slide 5: Half Year 2024 scorecard
Half Year 2024 scorecard Delivering against revenue growth expectations and continued execution of strategic initiatives fi 413.4% Material Record Half vs prior Strategic Execution Growth year Underlying +4.6% Independent Used Record 1H24 profit result Strong Core Operating vs prior a ac E Business
Slide 6: Financial Results
eqacers .. qutomotive Financial Results
Slide 7: Half Year 2024 Summary P&L
Half Year 2024 Summary P&L M Record 1H 2024 = Balanced $ Million HY22-HY23 NZ] Revenue contributions across organic, greenfield +13.4% id ition Underlying Operating Results and acquisitions For personal use only Revenue from continuing operations 4215.4 4,817.6 5464.2 +6466 +13.4% 1) Record 1H 2024
Slide 8: Balance sheet strength and disciplined capital management
Balance sheet strength and disciplined capital management Syndicated Debt Facility Captive Debt =» Cash on Hand $53.0 222.2 297.4 Property Owned (incl. CWIP) 552.8 5914 7269 < syndicated Debt (124.6) (124.6) ($25.3) Captive Debt (346.4) (360.4) (4673) (e) Syndicated Debt (net of cash) 228.4 97.6 (27
Slide 9: Inventory levels and market dynamics
Inventory levels and market dynamics Inventory levels Historical cash rate trend December 2013 to June 2024 25% 25% 15% 18% 15% For personal use only 0.8% 0.1% LS December 2023 to June 2024 1646 32 677) FY23 reported LFL Retail Joint Acquisitions Greenfield 1H24 reported Venture Historical cash rate
Slide 10: Refinanced debt facilities
Refinanced debt facilities 797.0 Credit approval secured for additional property debt facilities Total undrawn debt facilities including credit approved ilities of $797.0 million & autémotive
Slide 11: Maintained record interim dividend for 2024
Maintained record interim dividend for 2024 Long term consistent track record of maximising shareholder returns Ordinary 8 SY 2 Dividends” How We Deliver Returns Cc 60 for our Shareholders OQ Wx 50 oO " 40 3290 380 360 365 2770 | Optimise our business via transformation initiatives to op) 7 5 253 25
Slide 12: Operational Update
@) egoers . “| qutomotive Operational Update
Slide 13: Record new vehicle market
Record new vehicle market a . == Monthly Sales 2024 a . ., . . Australian New Vehicle Market" = =vonthiySales2028 Australian New Vehicle Order Write vs Deliveries > January 2020 to June 2024 Monthly Sales 2022 January 2020 to June 2024 — Order Write Monthly Sales 2021 = Delivery Monthly Sales 2020 J
Slide 14: Resilience of the Automotive Retail Model
Resilience of the Automotive Retail Model Lower gross margin opportunity due to limited Service & Parts operations Key Levers - Outlook vs 1H24 Underlying Gross Margin (core like-for-like basis) > 2024 4, | Fo UTea — Outlook Unkx = Ondustry Dynamics qNew Car Volume New Car GPU Used Car Volume OOOOH)
Slide 15: Focused on controllable costs
Focused on controllable costs Controllable Costs Cc Impact Mitigation ie) increases in legislated Technology enabled productivity People (ab) P! award & superannuation gains driving lower headcount 12) 5 High inflation driving Rebalancing owned vs leased Property high annual rent escalation portfoli
Slide 16: Further upside from optimisation
Further upside from optimisation 1) Improved contribution from ongoing integration & optimisation of acquisitions Wi upside HROS — — Down e Continuous improvement in performance of maturing greenfield operations c'! Core like-for-like ROS I HY June e Strong performance of Retail Joint Venture in 2H2
Slide 17: Strategic Priorities
eqacers .. “ qutomotive Strategic Priorities
Slide 18: Optimisation of business model and clear growth strategy
For personal use only Optimisation of business model and clear growth strategy Optimisation Building an optimised business model to maximise operating leverage Reinvest with Engage our Redefineour Deliver optimised Support discipline customers workforce vehicle finance innovation everywhere solution
Slide 19: Strategic progress on key margin levers
Strategic progress on key margin levers Driving long term sustainable strong return on sales through execution of key strategic initiatives Property People & Finance & Technology Insurance Portfolio at | 2H24 Committed Jun-24 Acquisitions oO F&I PVR vs Industry Average $726.9m ~$56m *6.2% | -3.0% |
Slide 20: Retail Joint Venture
Retail Joint Venture Market Performance 1H24 Financial Performance Hl Underlying Profit — Unit soles ~ 9 ' 296 1 8 1 % 2 1 % H Profit contribution impacted by —= excess inventory Cc ! fo) Deliveries BEV Market Share Return on Sales I I o 1 Lo} co) D vewenergy | 7:9% 1.3% — Vehicle Market BEV Total P
Slide 21: Australia's largest independent used car retail operation
— : 5 ’ easyauto123 Australia's largest independent used car retail operation ~Brand Vision Key Differentiators Brand USPs 52 change the EF: A) 20 Best Experience ae, — . . - + qear buying fem) ee Best Choice Yexperience Product Offering National Footprint Omni-Channel Strategy Best Price f Buying,
Slide 22: Record independent used result
easyauto123 Record independent used result Historical underlying profit before tax 1H24 performance in line with global industry leader For personal use only easyauto123 CARMmAaX $1 ,270 Net operating uss71 re) Net operating profit per profit per retail unit retail unit? FYI9 Fy20 FY21 FY22 Pool of
Slide 23: Unique business model & competitive advantage
Unique business model & competitive advantage Unique Business Model ae Be io) Fa Purpose built end-to- end platform improves customer experience Real estate light model to reduce overheads. Digital interaction mproves finance penetration. Economical vehicle delivery model use only, Key Success Facto
Slide 24: Outlook
eqoers .. “ automotive Outlook
Slide 25: Outlook
Outlook Industry Dynamics New Car Volume New Car GPU ed Car Volume ed Car GPU Parts Department PBT Service Department PBT F&I Penetration 24 | Eagers Automotive HY 2024 1H24 Actual 2H24 Outlook Business Units Franchised Automotive tr. Continued strength of our core business - Strong margins and mate
Slide 26: Outlook
Outlook Optimisation > Key Metric: ay Rent to Gross Profit Ratio % reduction Margin Levers Key Metric: Revenue per Employee $1.5m per person Key Metric: Penetration Baseline ROS Property People &Tech FSI E Strategic Upside Opportunity s Automotive HY 21 Strategic Ambition | FY FY20. FY21 FY22. FY23_
Slide 27: Thank you
CQgers |. \ automotive Thank you
Slide 28: Questions?
For personal use only QUESTIONS?
Slide 29: Disclaimer
e only For personal us 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 ba
Slide 30: Appendix
eqoers .. “ automotive Appendix
Slide 31: Statutory to Underlying EBITDA & PBT - HY 2024
For personal use onl Statutory to Underlying EBITDA & PBT — HY 2024 $ MILLION HY 2024 Underlying Operating Impairment AASB16 Lease Standard Business Acquisition, Divestment & Integration Costs Sale of Assets Miscellaneous Total Significant Items Statutory EBITDA 265.9 69.3 335.2 Depn & Amort (17.3)
Slide 32: Statutory to Underlying EBITDA & PBT - HY 2023
Statutory to Underlying EBITDA & PBT - HY 2023 $ MILLION HY 2023 EBITDA Berit DSS: SSeS: PBT Ucks NG Amort Expense Income Expense Cc Underlying Operating 254.1 (10.8) (35.9) - 207.4 (62.4) 145.0 je) Impairment - - - ® Y) — AASBi6 Lease Standard 707 (46.7) (22.0) 54 73 (2.2) 51 > __ Business Acquisit
Slide 33: Definitions
Definitions Non-lFRS Financial Information BEV is defined as a battery electric vehicle S\CAGR is defined as compound annual growth rate excludes all acquisitions, divestments and greenfield operations over a 3-year investment cycle to represent core ludes all isiti di id field i g i | underlying bu
Slide 34: Definitions
Definitions Non-lFRS Financial Information FA is defined as Franchised Automotive > Fal is defined as Finance & Insurance ec Independent Used is defined as the combined easyauto123 and Carlins auction businesses oO LFL excludes business acquired (Ireland's of Cairns, Alice Springs Toyota and NGP Vic
Slide 35: Definitions
Definitions Non-IFRS Financial Information ROS is defined as Return on Sales which is defined as Underlying Operating Profit Before Tax divided by Revenue from > Continuing Operations Cc Significant items are items that are non-recurring in nature, individually material or do not relate to the opera
Slide 36: For personal use only
CQgelrs _. automotive