Motorpoint Group Plc · LSE:MOTR
Motorpoint — H1 FY24 Earnings Presentation
30 slides from Motorpoint's earnings presentation, November 2023
Slide 1: stra y ies
4 stra y ies id teg) update
Slide 2: Half year 2024 highlights
Half year 2024 highlights Mark Carpenter, CEO Financial highlights and ESG update Chris Morgan, CFO Strategic update and outlook Mark Carpenter, CEO 2
Slide 3: Focusing on Brilliant Basics in FY24
“Focusing on Brilliant Basics in FY24 – lean cost base, faster stock turn and lower prices” 3
Slide 4: Motorpoint and Auction4Cars.com
Motorpoint Auction4Cars.com The UK’s leading omnichannel used vehicle retailer The UK’s leading independent Trade car auction site • Cars and vans • Cars and Vans • Online and In-Store • Online only Sell Your Car (C2B) Sell Your Car (C2B) < 5 years* > 5 years* < 50,000 miles* > 50,000 miles* Part Ex
Slide 5: Motorpoint virtuous circle
Motorpoint virtuous circle - remains at the core of whatwedo ™ Motorpoint Group PLC | Half year 2024 results and strategy update
Slide 6: Ipswich store
Ipswich store • Ipswich opened May 2023 • 20 stores in total • Target 10% market share in each area in which we operate • Paused new store roll out due to macro headwinds 6
Slide 7: H1 FY24 headwinds and proactive response
H1 FY24 headwinds H1 FY24 proactive response • Although supply has eased, a shortage • Increased retail and trade metal of good quality, nearly-new margin through faster stock turn vehicles remains • Increased APR rates to protect • Further reduction in nearly-new market finance commission size - 1.
Slide 8: • Reflecting increased new • Increased affordability as
• Lower stock financing • Higher finance commissions • Reflecting increased new vehicle production • Increased affordability as prices fall • Younger, lower mileage stock • Lower preparation costs • Lower purchase fees 8
Slide 9: KPI progression hampered by right-sizing activity
KPI progression hampered by right-sizing activity Market share (0-5 year market) 271% 271% Total revenue £607.2m £786.7m £1,440.2m Total E-commerce revenue £224.3m £350.6m £660.5m Total units sold 39.3k 49.0k 89.7k . ° : Te ener ee a 24.2% 208% 23.8% (Loss) / Profit before tax & exceptional £(3.7m)
Slide 10: Days in stock and margin per unit
54 Days in Stock Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 50 51 1,000 47 900 FY22 H1 FY23 FY23 H1 FY24 800 700 600 • Days in Stock improvement has driven improved margin £ per unit 500 400 300 1,000 950 924 946 917 200 900 £ per unit 100 850 785 804 798 - 800 765 762 757 754 Metal margin net of Auction & Pre
Slide 11: Lower marketing spend in H1 FY24, and CAC below £200
Lower marketing spend in H1 FY24, and CAC below £200 £25.0m per unit Focus on variable spend to reduce local costs, despite inflation £20.0m £4.1m £3.8m £2.8m Central costs less controllable as this includes fixed rent £2.9m £3.7m £3.3m £2.2m and rates £3.3m £15.0m £3.8m £3.2m £2.2m £3.3m Decrease i
Slide 12: Price Leadership - 99.98% of stock priced Good, Great or Low
Motorpoint Cinch Price Leadership - 99.98% of stock priced Good, Great or Low £8,748** £9,015** £161 per month £180 per month “From opening the door for us on arrival to complete dedication 36,212 miles/69 plate 39,268 miles/69 plate from the salesperson. It was a joy to walk around the car lots Hyu
Slide 13: Used car price increase example
Hyundai Tuscon • £16,999 now versus £11,999 in 2021 Example vehicle 50% per • £329 per month now versus £220 per month month more expensive than in 2021 Based on an equivalent 3 year old SE 1.6 model. Monthly PCP costs with no deposit. Oct 2023 versus May 2021 13
Slide 14: Largest monthly drop in values since 2011
November 2023 * £16,500 October 2023 £19,100 November 2023 ** £20,550 October 2023 £24,150 Since half year we experienced the largest monthly drop in values since November 2023 ** £13,950 2011. Will improve affordability for October 2023 £16,200 consumers in near term * Price as of 14/11/23 ** Price
Slide 15: Headwinds reduced profit and business right-sized. Strong cash generation
“Headwinds reduced profit and business right-sized. Strong cash generation” 15
Slide 16: Financial Highlights
Financial Highlights Revenue 607.2 786.7 -22.8% (Loss) / profit before taxation & exceptional (3.7) 3.0 -6.7 items Cash generated from operations 5.8 10.6 -4.8 Net cash 11.2 45 +67 Motorpoint Group PLC | Half year 2024 results and strategy update 16
Slide 17: Income statement
£’m H1 FY24 H1 FY23 Change Revenue Retail 509.8 653.1 • Revenue fall reflects reduction in nearly new market Wholesale 97.4 133.6 size and macro headwinds Total revenue 607.2 786.7 -22.8% • Proactive response to protect metal margin and offset reduction in finance commissions • Operating expense fal
Slide 18: Balance sheet
£’m H1 FY24 H1 FY23 FY23 Fixed assets 12.4 13.3 13.1 • One new store, Ipswich, opened in H1 FY24 Intangible assets 4.2 1.9 3.7 • Intangible assets increase slow down, reflecting reduced strategic tech investment Right of use assets 55.4 57.8 58.4 • Inventory drop reflects right sizing to match custo
Slide 19: Cash flow
Cash flow 14.0 12.0 11.2 10.0 8.0 6.0 56 (5.3) 4.0 1.6 (1.9) 2.0 (1.0) 0.0 Openingnet cash EBITDA pre exceptional Capex Interest Lease payments _ Exceptional payments Tax receipt Net working capital Closing net cash
Slide 20: Most environmentally friendly used car retailer
By supporting our environment And our communities • Recognised by the Financial Times as one • Partnership with Diversity Jobs Group of Europe's Climate Leaders (who are to extend reach into diverse pools We want to be most successful in reducing their core viewed as the most • Anonymised applicatio
Slide 21: Good progress on strategic objectives
“Good progress on strategic objectives offering the best near term returns" 21
Slide 22: E-commerce upscale and customer acquisition and retention
Upscale E-commerce capability Customer acquisition and retention • Upgrades to website Product Detail Pages (PDP) and new • 20th store opened in May 2023 (Ipswich) vehicle imagery – increased views and sessions, and lower • Improving customer experience with creation of single bounce rates customer
Slide 23: Website imagery before and after
After Before • vehicle imagery – increased views and sessions, and lower bounce rates 23
Slide 24: Wholesale and supply expansion; operational efficiency
Wholesale and supply expansion Operational efficiency • Less reliance on stock attracting purchase fees - fees per unit • Continued automation yields further efficiency gains dropped 20% from H1 FY23 • A4C days in stock improved from 13.1 to 9.9 days • New A4C customer dashboards – unique personalis
Slide 25: Selective strategic investment and outlook
• Price leadership is vital; we continue to offer the best value for our customers through a leaner cost base and faster stock turn • High inflation, elevated interest rates and consumer uncertainty continue to impact our market and profitability for FY24 • Proactive focus in FY24 on cash generation
Slide 26: Appendix
Appendix Motorpoint Group PLC | Half year 2024 results and strategy update 26
Slide 27: Financial KPIs (1 of 2)
Financial KPIs (1 of 2) Volumes Retail 25.8k 31.6k Wholesale 13.5k 17.4k Total 39.3k 49.0k Online 8.5k 10.6k Branch 17.3k 20.9k Total Retail 25.8k 31.5k Total GP per retail unit £1,267 £1,373 Total GP per wholesale unit £370 £304 Customer acquired vehicles (% of retail units) 24.2% 22.6% Motorpoint
Slide 28: Financial KPIs (2 of 2)
Financial KPIs (2 of 2) Days to prepare a car 87 8.8 Transport pu £ 123 109 Marketing £ 5.1m 7.9m Marketing pu (CAC) £ 198 250 People costs £ 16.4m 20.5m People costs pu £ 636 649 Central costs £ 8.0m 7.6m Central costs pu £ 310 241 Other Operating Expenses £ 6.6m 6.8m Total Operating Expenses £ 36.
Slide 29: Key Motorpoint benefits
Key Motorpoint benefits 86 ✓ Award winning service 84 ✓ Extensive choice ✓ Great value backed by price 82 promise Target ✓ Quality control and operational 80 excellence 78 ✓ Flexible finance options ✓ Competitive part exchange prices 76 ✓ Test drives readily available 74 ✓ Home delivery ✓ Same day d
Slide 30: The information, opinions and statements contained in this presentation and any associated discussion (this
The information, opinions and statements contained in this presentation and any associated discussion (this “Presentation”) has been prepared by Motorpoint Group PLC (the “Company”) and has not been independently verified. The Presentation is only intended for information and reference purposes as a