Morgans Conference. October 2015

Transcription

1 Morgans Conference October 2015

2 Financial Trends PBT Underlying Operating Earnings PBT Underlying $ million H H H H H H H 2015 Operating Earnings is EBITDA Underlying excluding profit/loss on sale of assets and from associates. It includes AHG dividend. PBT Underling excludes business acquisition costs, GST tax refunds, and fair value adjustments relating to freehold property assets, investments and intangible assets. 12

3 Financial Trends Dividend 30.0 Interim Dividend Final Dividend Cents per share

4 Strategy (FOCUS: GROW EPS & PAY LARGER DIVIDENDS) Exceed stakeholder expectations customers, employees, partners (manufacturers), shareholders and community. Growth by selective acquisition Development of enhancements and complimentary services Business Optimisation continuous improvement in processes and systems.. 4

5 APE Vehicle Sales 2014 A.P Eagers New Vehicle Sales Total 44, % (4.0% of National Market) A.P. Eagers Used Vehicle Sales Total 25, % (Retail used 19380) 23% 5% 46% Cars - Qld Cars - NT Cars - NSW Cars - SA National Trucks 23% 3% 33% Retail Cars - Qld Retail Cars - NT Retail Cars - NSW Retail Cars - SA Auction - QLD National Trucks 20% 6% 29% 9% 3% 2014 New Vehicles 1 : 0.43 Retail Used Vehicles (Excludes Auctions) 2005 New Vehicles 1 : 0.23 Retail Used Vehicles 5

6 Growth Timeline Revenue 3,500,000 3,000,000 Revenue Acquisitions, Organic Growth and Disposals Eagers Mitsubishi $ A ' s 2,500,000 2,000,000 1,500,000 1,000, ,000 - Bridge Toyota May 05 Bayside Honda/Kia Feb 06 Brisbane Motor Auctions Mar 06 Austral Audi/ Citroen Dec 06 Hidden Valley Ford/ Aug 06 Kloster Motor Feb 07 Surfers City Holden Aug 07 Bill Buckle Auto Mar 08 Bayside Honda/Kia Aug 09 Caloundra City Autos April 10 Adtrans Oct 10 Western Star Trucks Sydney Nov 10 Eblen Mar 11 Daimler Benz Trucks Adelaide Aug11 City Peugeot Oct 11 Bill Buckle Audi April 11 Infiniti Centre Brisbane Feb 212 AHG Initial Strategic Investmen t July 12 Northern Beaches Land Rover Jaguar Mar 13 Main North and Unley Nissan/ Renault Sept 13 Hidden Valley Ford/ Jun 13 Reynella May 14 Kedron July 14 Ian Boettcher Motors July 14 Craig Black Oct14 Volvo Sunshine Coast July H12015 HY

7 Growth Timeline PBT underlying PBT Underlying Acquisitions, Organic Growth and Disposals Eblen Mar 11 Eagers Mitsubishi $ A ' s Bridge Toyota May 05 Bayside Honda/Kia Feb 06 Brisbane Motor Auctions Mar 06 Austral Audi/ Citroen Dec 06 Hidden Valley Ford/ Aug 06 Kloster Motor Feb 07 Surfers City Holden Aug 07 Bill Buckle Auto Mar 08 Bayside Honda/Kia Aug 09 Caloundra City Autos April 10 Adtrans Oct 10 Western Star Trucks Sydney Nov 10 Daimler Benz Trucks Adelaide Aug11 City Peugeot Oct 11 Bill Buckle Audi April 11 Infiniti Centre Brisbane Feb 212 AHG Initial Strategic Investmen t July 12 Northern Beaches Land Rover Jaguar Mar 13 Main North and Unley Nissan/ Renault Sept 13 Hidden Valley Ford/ Jun 13 Reynella May 14 Kedron July 14 Ian Boettcher Motors July 14 Craig Black Oct14 Volvo Sunshine Coast July H

8 Income Opportunity Franchised Dealership NEW CAR SALES: + Accessories + Finance + Insurance + Car Care + Trade-In USED CAR SALES: + Accessories + Finance + Insurance + Car Care + Trade-In VEHICLE SERVICE: - Value add products i.e. Tyres, wheel alignments, batteries, wiper blades. VEHICLE REPAIR: - Warranty (Manufacturer pays) and Non Warranty (Customer pays) - Internal reconditioning of Used Cars PARTS SALES: - Internal (Service, warranty repair, non-warranty repair, accessories) - External (Retail dealership direct to customer) - External (Wholesale / Trade large distribution centres deliver to customers) - Hard parts (Panel) + Mechanical parts TARGET BASED INCENTIVES: - Volume, Market Share, Franchise Standards, Customer Satisfaction 8

9 Used Car Market 3 Major Global Trends Stage 1 Disruption: Big Box / Fixed Price Stage 2 Disruption: Tech Fuelled Disruption No Dealership Model 9

10 The big are getting bigger! Source: Carmax Investor Relations Presentation, May

11 And there is a new frontier of competition fuelled by technology. Wall Street Journal, May Fortune.com, July Techcrunch.com, May

12 More Used Car Sales leads to more New Car Sales *1 RTA NSW Data. VFACTS NSW Share Assumption 12

13 2016 and Beyond New Format - Shopping Centres - Stand alone branded Carzoos sites Improved customer benefits Improved customer experience New independent finance brand to complement Carzoos New Private to Private offering within Carzoos (Peer to Peer) Supported by Carzoos aims to become the largest purchaser of private used vehicles Success in the above leads to Carzoos becoming the largest seller of used vehicles nationally

14 The Next Months Complete Land Rover, Jaguar and Volvo move from Fortitude Valley to Newstead Improve truck retailing division Continue Used Car expansion with AP Eagers existing franchised outlets Launch new stand alone Carzoos direct model Launch new branded products to support Carzoos direct model Acquire 2-3 new acquisitions More Used Car Sales leads to more New Car Sales 14