Peter Warren Automotive Holdings Ltd · ASX:PWR
Peter Warren Automotive — FY2024 Earnings Presentation
30 slides from Peter Warren Automotive's earnings presentation, Aug 21, 2024
Slide 1: FY24 Results Presentation ASX Announcement
ASX Announcement 21 August 2024 Peter Warren Automotive Holdings Limited FY24 Results Presentation Peter Warren Automotive Holdings Limited (ASX: PWR, “Peter Warren”) provides its FY24 Results Presentation relating to Peter Warren’s FY24 Results Announcement. -ENDS- This announcement was authorised
Slide 2: FY24 Results Presentation
FY24 Results Presentation a =~ 21 August 2024 Paul Warren Victor Cuthell a Interim Chief Executive Officer Chief Financial Officer —_
Slide 3: Agenda
Agenda FY 24 Results Highlights 3 FY24 Business Review 7 FY24 Financial Summary 14 Outlook 21 Questions 23 Appendices 25 Peter Warren Group Full Year Results 2024
Slide 4: FY24 Results Highlights
FY24 Results Highlights ~:
Slide 5: FY Financial Highlights
FY 24 Financial Highlights FY24 PBT of $56.8m achieved versus guidance of $52m - $57m (1) Underlying PBT excludes one-off costs of $3.4m (FY23: $0.8m) (2) 19.4% Revenue Growth $2.5bn FY23 Revenue $2.1bn Revenue Strong Inventory Control New Car Inventory — LFL® $363.9m 31 December Inventory $362.4m P
Slide 6: Revenue and PBT Bridge
Revenue and PBT Bridge Strong revenue growth offset by new car margin reductions Revenue Bridge ($rr PBT Bridge" ($m) EBITDA -$5.5m Higher rates +131 2475 nn enn nn nanan 2 ------------5 Increased inventory +271 GE 416.3 +$5.9m Acquisition-related Other | i : 81.9 | | : | 56.8 ore GP % reduction ref
Slide 7: FY24 Highlights
FY24 Highlights Addressing our new car margin pressure through inventory management, cost control and margin initiatives FY 24 Highlights e, Ce, PBT of $56.8m achieved v. guidance of $52m - $57m Revenue growth of 19.4% Margin initiatives implemented to reduce the impact of new car margin pressure Ne
Slide 8: FY24 Business Review
Slide 9: Brilliant Basics
| FY24 Business Review Brilliant Basics Growing Revenues Margins, Costs and Inventory Expansion Strategy a
Slide 10: External Factors Indicate Growing Revenues in Service and Parts
External Factors Indicate Growing Revenues in Service and Parts Order bank is reducing as orders are fulfilled Annual Ve! on 1,250 1,200 Lower vehicle sales 1,150 2015 2016 «2017: «2018-2019 «2020 2021:«-2022 «20232024 le Deliveries 000’s 1,100 1,050 1,000 950 900 850 800 750 3-year service car parc
Slide 11: Brilliant Basics
{6} Brilliant Basics Driving organic growth by leveraging our size and scale National support functions | Procurement savings Website enhancements : : Employer of choice Wholesale parts supply — Telephony / lead management Leveraging our size and scale . Hub and spoke approach Talent management Used
Slide 12: Margins, Costs and Inventory Management
Margins, Costs and Inventory Management New car inventory steady at Dec 2023 levels (excluding acquisitions) Inventory Management Program Delivering Results Focus on Margins and Costs Across Service Lines New Vehicle Inventory ($m) 189 a 3828 Dec-23 Acquisitions LFL Increase Jun-24 * Pressure on inv
Slide 13: Leading the Change
Leading the Change Hybrids now growing as Electric growth has slowed Current State of New Energy Vehicle (NEV) Market Market Share by Fuel Type” Hl Hi Hl CY 2024 CY 2023 CY 2022 Electric 7.9% Hybrid Q # 7.6% PHEV 1.3% 0.6% 0.5% Total NEVs 22.1% 14.6% 10.0% Industry Outlook for the Next 1- 4 Years +
Slide 14: Expansion Strategy
Expansion Strategy Track record of acquisition success cessful Track Record of Acquisitions Revenue REVENUE GROWTH FYi7 FYI8. «-FYI9.-s«FY20.-««FY21.=-FY22,—FY23—-FY24 . Grew 3x in 7 years History of overperforming acquisitions Strong proposition to OEMs Bolt-on additions in late FY24 SKN NN EPS acc
Slide 15: FY24 Financial Summary
FY24 Financial Summary
Slide 16: FY24 Financial Results
FY24 Financial Results Strong growth in revenues, however PBT impacted by new car margins and interest Revenue ($m) EBITDA ($m) ~ Fy2i) FY22 FY23 FY24 Fyai) FY222) FY232) New Vehicle Units Sold PBT (Sm) - - FY21 Fy22 FY23 FY24 Fyat) F222) Fy232 (1) Proforma result as reported in the Prospectus (2) U
Slide 17: FY24 Profit and Loss
FY24 Profit and Loss Driving efficiencies in areas we control FY24 FY23 Variance Variance $m $m $m % C1) Revenue 2,475.1 2,073.1 402.0 19.4% @ Gross Profit 418.6 392.5 261 6.7% Gross Profit % 16.9% 18.9% (3) Operating expenses - underlying (283.6) (252.0) (31.6) (12.5%) Operating expenses % (11.5%)
Slide 18: Gross Profit
Gross Profit New car supply impacting industry gross margins FY22 FY23 18.9% FY23 Impact of New Car Acquisitions Margins (1) Source: VFACTS Australian Vehicle Sales Peter Warren Group Full Year Results 2024 0.2% Other 1,267k FY24 +0.1% Used Car Margins National Vehicle Sales") FY24 Gross profit % re
Slide 19: Operating Cost Bridge ($m)
Operating Cost Bridge ($m) Cost control measures reduced operating expenses as a % of revenue Opex as a % of Revenue * Underlying operating expenses are down from 12.2% of revenue to 11.5% * Operating expenses have been tightly controlled to mitigate margin reduction + Cost reduction program saved $
Slide 20: Cash Flow Statement
Cash Flow Statement Strong operating cash flow conversion eo 00 6° FY24 FY23 Wananee Statutory Statutory sm sm oo EBITDA 131.6 139.7 (5.8%) Movement in working capital 5.7 (3.5) Operating cash flow before floorplan interest 137.3 136.2 +0.8% Floorplan Interest (24.7) (12.8) Operating cash flow after
Slide 21: Capital Structure Supports Growth
Capital Structure Supports Growth Net debt to property value provides considerable debt capacity Acted Atel i NET DEBT AND PROPERTY om 30 Jun 24 30Jun23 Variance Cash and cash equivalents 35.2 50.6 (15.4) * Property owned: $226m Borrowings (95.9) (58.9) (37.0) + Net debt to property value of 27% pro
Slide 22: Outlook
Slide 23: Outlook
Outlook + Further revenue growth expected in FY25, particularly in service and parts + New car margins continue to be under pressure with variations based on OEM supply levels + Good margins expected in service, parts, aftermarket and finance + Key FY24 focus areas to continue into FY25: + Enhanced
Slide 24: Questions
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Slide 25: Disclaimer
Disclaimer IMPORTANT NOTICE The material in this presentation has been prepared by Peter Warren Automotive Holdings Limited (ASX: PWR) ABN 57 615 674 185 (“Peter Warren” or the “Company’) and is general background information about Peter Warren's activities current as at the date of this presentatio
Slide 26: Appendices
Appendices
Slide 27: Balance Sheet AASB Reconciliation
Balance Sheet AASB 16 Reconciliation 30-Jun-24 30-Jun-23 - FY24 FY23 sm Variance sm Actual Actual Actual Actual Cash and cash equivalents 35.2 50.6 (15.4) EBITDA (AASB 117) 99.6 1.8 Trade and other receivables 102.0 68.9 331 Decrease in operating lease expense 32.0 27.9 Inventories 416.9 361.0 5.9 E
Slide 28: Adjustments to Statutory Income Statement
Adjustments to Statutory Income Statement Statutory Underlying “ @ June year end ($m) FY24 FY23 FY24 FY23 Revenue 2,475.1 2,073.1 2,475.1 2,073.1 Cost of sales (2,056.5) (1,680.6) (2,056.5) (1,680.6) Gross profit 418.6 392.5 418.6 392.5 Gross profit margin 16.9% 18.9% 16.9% 18.9% Employee benefits e
Slide 29: Definitions
Definitions AASB Australian Accounting Standards Board LFL Like for like ‘Accounting Accounting standards, principles and practices applying by law or NEV New Energy Vehicle (Including hybrid, electric, hydrogen powered vehicles) Standards otherwise generally accepted and consistently applied in Aus
Slide 30: Enquiries
Enquiries Investor relations contact details: Katrina Dang Phone: +61 2 9828 8704 Email: investors@pwah.com.au Company IR website: www.pwah.com.au Company address: 13 Hume Highway, Warwick Farm, NSW, 2170, Australia
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