Inchcape Plc · LSE:INCH
Inchcape — Investor Presentation (December 2021)
15 slides from Inchcape's investor presentation, December 2021
Slide 1: Investor Presentation December 2021
INVESTOR PRESENTATION December 2021
Slide 2: Inchcape: Group overview
Inchcape 2 Inchcape: Group overview Who we are Global presence: 36 markets, with an EM focus Key: Distribution Retail • Largest independent global automotive distributor APAC UK & Europe Australia Belgium o Distribution accounts for vast majority of profits Hong Kong Greece Singapore Romania, Bulgar
Slide 3: Considerable opportunities for an ambitious Inchcape
Inchcape 3 Considerable opportunities for an ambitious Inchcape Annual new car volumes (units) Vehicle lifetime value2 90m 17m Revenue Profit Initial User 45% 25% (0-4 years) New market opportunities Typically insourced e.g. China, by OEMs US, UK Subsequent Users 55% 75% (4+ years) Inchcape markets
Slide 4: Business model: a differentiated approach to distribution
Inchcape 4 Business model: a differentiated approach to distribution Why our OEM partners need us? ▪ Distribution is our specialism ▪ We are nimble, fast and efficient ▪ OEMs focus (capital and expertise) is on larger markets and powertrain evolution ▪ We have been helping car brands grow for decade
Slide 5: OEMs outsourcing distribution has gathered momentum
Inchcape 5 OEMs outsourcing distribution has gathered momentum % of distribution outsourced to independents 2016 2020 39% ▪ OEMs are focused on 33% the largest TIV markets ▪ OEMs are reallocating capital to CASE ▪ OEMs would like fewer partners 3% 3% 90% of our >50k <10k distribution markets X: Vehi
Slide 6: Consolidation: plotting the landscape of opportunity
Inchcape 6 Consolidation: plotting the landscape of opportunity Typical distribution markets1 Number of 17m 17m 17m independent distributors Middle East >170 OEM Other Latam & operated OEMs >500 Africa (NSCs) (potential) APAC >250 Inchcape Independent OEM distributors Partners Europe >220 (existing)
Slide 7: Capturing more of the lifetime value of a vehicle
Inchcape 7 Capturing more of the lifetime value of a vehicle Vehicle Lifecycle Value Three opportunities in focus Timeline New vehicle import 1. 2021/ 22 Digital first, multi-brand, Lifetime 1st sale used car platform profits % B2C 25% 2. Digital Parts Platform 2023/ 75% 2nd sale 24 Digital platform
Slide 8: Medium-term financial outlook
Inchcape 8 Medium-term financial outlook Distribution Excellence Vehicle Lifecycle Services1 Organic M&A ▪ At least double used car volumes ▪ TIV: 3+% growth p.a. ▪ Continue to bolt-on new distribution businesses ▪ Digital Parts Platform: ▪ Outperformance: 1+% p.a. operational and profitable ▪ Attra
Slide 9: Investment proposition: sustainable growth and cash returns
Inchcape 9 Investment proposition: sustainable growth and cash returns Disciplined capital Strong returns allocation & cash- Harnessing conversion Past five years: Vehicle global scale lifecycle >20% ROCE ▪ Dividends: £420m Consolidation wallet upside ▪ Acquisitions: £600m Roll-out digital FCF = 60-
Slide 10: Bringing mobility to the world's communities
Inchcape 10 BRINGING MOBILITY TO THE WORLD’S COMMUNITIES – FOR TODAY, FOR TOMORROW & FOR THE BETTER
Slide 11: Appendix
Inchcape 11 APPENDIX
Slide 12: Accelerate strategic framework
Inchcape 12 Accelerate strategic framework Our Growth Drivers Distribution Excellence Vehicle Lifecycle Services Our Enablers Culture and Digital, Data & Efficient Scale Capabilities Analytics Operations Responsible Business
Slide 13: APAC: OEM & market exposures
Inchcape 13 APAC: OEM & market exposures Inchcape New wins pre-2016 Passenger vehicles Commercial vehicles Toyota Lexus Jaguar Land Rover Subaru Isuzu Peugeot Citroen Suzuki BMW Chevrolet Hino Maxus Hong Kong Macau Singapore Australia Guam Brunei Thailand Indonesia Saipan New Zealand
Slide 14: Europe: OEM & market exposures
Inchcape 14 Europe: OEM & market exposures Inchcape New wins pre-2016 Passenger vehicles Toyota Lexus Jaguar Land Rover BMW Mini Rolls Royce Mazda Ford Hyundai Lithuania Latvia Estonia Finland Belgium Luxembourg Greece Romania Bulgaria North Macedonia Poland
Slide 15: Americas & Africa: OEM & market exposures
Inchcape 15 Americas & Africa: OEM & market exposures Inchcape New wins pre-2016 Passenger vehicles Commercial vehicles Mercedes BMW- Land Rolls Mercedes Western BMW Subaru Suzuki DFSK Mini Toyota Jaguar Geely Changan BYD Freightliner Hino Fuso Komatsu Others Benz Motorrad Rover Royce Benz Star Chil