Slide 1: ASG Half Year Investor Presentation February 2018
For personal use only ASG Half Year Investor Presentation February 2018 1
Slide 2: Presenting Today
PRESENTING TODAY For personal use only Nick Pagent Aaron Murray Managing Director and CEO CFO Group CEO since formation of the Group CFO since 2009 after joining the Autosports Group in 2006 group in 2007 21 years of motor vehicle industry 21 years of motor vehicle industry experience in Aus
Slide 3: Agenda
AGENDA For personal use only H1 2018 HIGHLIGHTS H1 2018 GROUP PERFORMANCE OVERVIEW H1 2018 STRATEGIC UPDATE CANTERBURY BMW ACQUISITION & FY 2018 OUTLOOK Q & A ADDITIONAL INFORMATION 3
Slide 4: H1 2018 FY Highlights
H1 2018FY HIGHLIGHTS Revenue up 21.9% in a challenging new car market For personal use only Like for like revenue growth up 1.1% in line with guidance at AGM (Nov 17) Gross profit up 22.9% on improving mix of sales driven by Service and Parts growth of 34.2% and 42.8% respectively EBITDA up
Slide 5: Agenda: H1 2018 Highlights
For personal use only H1 2018 HIGHLIGHTS H1 2018 GROUP PERFORMANCE OVERVIEW H1 2018 STRATEGIC UPDATE CANTERBURY BMW ACQUISITION & FY 2018 OUTLOOK Q & A ADDITIONAL INFORMATION 5
Slide 6: Positioning for Growth: Revenue & EBITDA
POSITIONING FOR GROWTH Revenue & EBITDA For personal use only Growth on Revenue and EBITDA driven by acquisition led growth with Doncaster BMW and Melbourne BMW ASG outperformed Vfacts market data in important Audi, BMW, Mercedes Benz and Volvo brands in H1 2018 Diverse revenue streams contrib
Slide 7: Financial Trends – Margin
FINANCIAL TRENDS – MARGIN For personal use only * Comparison to pro-forma historical financials Despite the challenging new car market gross margins increased during H1 2018 Greenfields sites continue to mature; 12 ASG Dealerships are still under 5 years old with 4 still under 2 years old A fu
Slide 8: Strong Balance Sheet
STRONG BALANCE SHEET MAJOR MOVEMENTS SINCE 30 JUN 2017 For personal use only Additional $15.5m capital loans drawn in November 2017 to fund settlement of Melbourne BMW Additional floorplan facilities of $43.4m and $6.1m for Melbourne BMW and Volvo Cars Rushcutters Bay Interest coverage affecte
Slide 9: Cash Flow
CASH FLOW ASG typically receives payment for vehicles upon delivery to customers (either from the customer or consumer finance company) Cash typically remitted to floor plan financier within 2 days of delivery of motor vehicle For personal use only Use of floor plan finance minimises investmen
Slide 10: Agenda: Strategic Update
For personal use only H1 2018 HIGHLIGHTS H1 2018 GROUP PERFORMANCE OVERVIEW H1 2018 STRATEGIC UPDATE CANTERBURY BMW ACQUISITION & FY 2018 OUTLOOK Q & A ADDITIONAL INFORMATION 10
Slide 11: Strategic Update
STRATEGIC UPDATE NOV 2016 APR 2017 NOV 2017 APR 2018 Audi Centre Brisbane Doncaster BMW Melbourne BMW Canterbury BMW (Willims Motor Group) For personal use only Acquisitions Greenfields SEP 2016 SEP 2017 Volvo Cars Mt Gravatt Volvo Cars Rushcutters Bay Focused strategy split evenly betwe
Slide 12: New Vehicle Market Trends – Calendar Year
NEW VEHICLE MARKET TRENDS – CALENDAR YEAR Total Market remains at record levels 0.9% up at SUV out-selling sedan for the first time at 39.2% of the total market December 2017 YTD up 5.6% For personal use only Largest markets NSW, QLD & VIC comprise 83% of the Small SUV segment up 6.5% total
Slide 13: New Vehicle Market Update – H1 2018FY
NEW VEHICLE MARKET UPDATE – H1 2018FY Autosports Groups strategy of competing in both the Prestige and Luxury segments means we have resilience whilst maintaining exposure to the growing segments. The fall in the luxury market in the first half of 2018FY has been balanced by a rise in the prestige m
Slide 14: Used Cars – Growth with Opportunity
USED CARS – GROWTH WITH OPPORTUNITY Hub strategy continues to drive positive growth in Used Cars For personal use only FCAI estimate the used car market at 2.2m per annum. Double the new car market Used Cars 2018HY Revenue Growth up 12.3% ASG operates a hub strategy in Sydney and Brisbane Used C
Slide 15: Aftersales/Backend Growth – Improving the Mix
AFTERSALES|BACKEND GROWTH -IMPROVING THE MIX Growth in Service, Parts & Collision Repair continues to drive growth for ASG For personal use only ASG’s business model benefits from inbuilt growth in back-end revenue from a maturing service, parts and panel customer base Service & Collision Repair 2
Slide 16: Agenda: Canterbury BMW Acquisition & Outlook
For personal use only H1 2018 HIGHLIGHTS H1 2018 GROUP PERFORMANCE OVERVIEW H1 2018 STRATEGIC UPDATE CANTERBURY BMW ACQUISITION & FY 2018 OUTLOOK Q & A ADDITIONAL INFORMATION 16
Slide 17: Canterbury BMW Acquisition
CANTERBURY BMW ACQUISITION ASG STRATEGY FIT SCALE For personal use only Luxury Brand and Major Market Annual revenue approximately $89M in FY18 First BMW presence in Sydney Staff 65 Administration and logistics synergies with ASG’s NSW market is Australia’s largest market Inner West Hub
Slide 18: Canterbury BMW Acquisition: The Deal
CANTERBURY BMW ACQUISITION $15.6M for the business, IP For personal use only THE DEAL and goodwill Plant & Equipment at valuation Stock at valuation Cash reserves and debt facility FUNDING from BMW Finance GEARING Consolidated ASG corporate debt remains under 1 x EBITDA leaving good capaci
Slide 19: Why BMW
WHY BMW BMW is currently undertaking the largest product roll-out in the For personal use only THE FUTURE company’s history Strategic partnerships with Intel, Mobileye and Delphi on autonomous drive. Strong i-NEXT EV strategy Perfectly placed for the future with maximum flexibility. SUV segm
Slide 20: Growth with Opportunity
GROWTH WITH OPPORTUNITY ASG now operates 35 of approximately 540 new car prestige Consolidation opportunities are being driven by: Increasing industry regulation For personal use only or luxury dealerships on the East Coast of Australia Retirement of private dealership owners The industry
Slide 21: 2018 Focus Areas
2018 FOCUS AREAS Organic Growth & Operations Improvements For personal use only Delivering further EPS growth from acquisitions Optimise operational structure through the centralisation of administration, marketing and logistics functions Take advantage of increased Service and Parts capacity
Slide 22: Results Summary and Outlook
RESULTS SUMMARY 2018FY H1 Recap For personal use only Revenue up 21.9% on pcp. Gross Profit up 22.9% on pcp NPATA up 15.4% on pcp Completed the acquisition of Melbourne BMW increasing ASG’s coverage in the brands of BMW, Mini, Alpina and BMW Motorcycles in the Melbourne market. Announced t
Slide 23: Agenda: Q & A
For personal use only H1 2018 HIGHLIGHTS H1 2018 GROUP PERFORMANCE OVERVIEW H1 2018 STRATEGIC UPDATE CANTERBURY BMW ACQUISITION & FY 2018 OUTLOOK Q & A ADDITIONAL INFORMATION 23
Slide 24: Agenda: Additional Information
For personal use only H1 2018 HIGHLIGHTS H1 2018 GROUP PERFORMANCE OVERVIEW H1 2018 STRATEGIC UPDATE CANTERBURY BMW ACQUISITION & FY 2018 OUTLOOK Q & A ADDITIONAL INFORMATION 24
Slide 25: Resilient Revenue Model
RESILIENT REVENUE MODEL Challenging new car trading conditions offset by improvements in used cars, aftermarket, service, parts and collision repair. "BACK-END" For personal use only "FRONT-END" New car sales Service Finance & Aftermarket (including Parts Insurance collision repair) Used car sales M
Slide 26: ASG Brand Portfolio
ASG BRAND PORTFOLIO LUXURY (26) PRESTIGE(7) USED CAR COLLISION ACQUISITIONS DEALERSHIPS REPAIR GREENFIELDS For personal use only (2) FACILITIES (4) FY18 (6) (4) Canterbury BMW (1) (1) (5) Settles April 2018 (1) (2) (1) (1) (2) (2) (1) (1) (1) (3) (1) (2) (3) 26
Slide 27: Capital Structure
CAPITAL STRUCTURE ASG’s strong cash For personal use only Facility $m Jun 17 Dec 17 generation results in a capital Capital Loans 36.5 52.5 light business Other Loans & Hire Purchase facilities 2.8 5.7 Cash (14.9) (10.6) Floorplan finance supports Pro forma Net debt / (cash) (Excluding floorplan f
Slide 28: Reconciliation to Statutory Income Statements
RECONCILATION TO STATUTORY INCOME STATEMENTS Reconciliation to statutory revenue For personal use only Actual Consolidated 31-Dec-17 $m Statutory revenue 792.7 * Statutory revenue reclass 24.9 Revenue 817.6 * add other revenue items classed as COGS for statutory accounts Group underlying PBT reconci
Slide 29: 2018FY H1 Result Detail
2018FY H1 RESULT DETAIL Profit & Loss Statement period ended 31 December 2017 For personal use only Financial Statements 1H FY17 YTD 1H FY18 YTD +/- % New Vehicles 377,391 462,094 84,703 22.4% BASIS OF PREPARATION Used Vehicles 189,501 212,798 23,297 12.3% Finance & Insurance 11,662 12,082 420 3.6%
Slide 30: Canterbury BMW Announcement
CANTERBURY BMW ANNOUNCEMENT ASX ANNOUNCEMENT | ASG acquisition of Canterbury BMW For personal use only ASG Melbourne Pty Ltd, a wholly owned subsidiary of Autosports Group Limited (ASG), has entered into an agreement with Baldacchino 888 Prestige Autohaus Pty Ltd to purchase the businesses operating
Slide 31: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This presentation contains summary information about Autosports Group Limited (ACN 614 505 261) (ASG) and its activities current as at the date of this presentation. The information in this presentation is of general background and does not purport to be complete. It