A.P Eagers RBS Morgans Business Breakfast

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Transcription:

A.P Eagers RBS Morgans Business Breakfast Wednesday 20 th February

January 1913 E.G. Eager & Son Pty Ltd was established in Brisbane s Adelaide Street

1922 E.G. Eager operated the state s first motor car assembly line at its current Newstead Property

1922 E.G. Eager operated the state s first motor car assembly line at its current Newstead Property

1926 1931 E.G. Eager sold more United States imported Willys Overland vehicles than any other dealer in the world. Old Whitey

November 1931 E.G. Eager secured the franchise for General Motors in Qld and Northern NSW.

November 1931 E.G. Eager secured the franchise for General Motors in Qld and Northern NSW including from 1948 Australia s own car - the Holden. 1948 Brisbane Holden Launch

In May 1957 Eagers listed as a public company and has paid a dividend every year now for 55 years.

Meanwhile... In 1978 Alan Piper established A.P. Motors Pty Ltd (APM) acquiring from the administrators Coachcraft Ford at Woolloongabba. During the early 1980 s APM added Honda (1981) and Toyota (1985). In 1986 APM changed its name to A.P. Group Ltd and listed.

A.P. Group Ltd 1986

A.P. Eagers Limited Expansion occurred with Austral Honda (1987) and Rolls- Royce/Bentley and Land Rover (1989) and Brisbane Motor Auctions (1989). 1992 A merger was completed between Eagers and A.P. Group creating A.P. Eagers Limited with Alan Piper emerging as the major shareholder and Managing Director.

Sadly in 2000 Alan Piper passed away at the far too young age of 55.

Nick Politis (2000) Alan Piper asked Nick Politis to purchase his shares and Nick has been A.P. Eagers Limited s largest shareholder for the last decade.

A.P. Eagers Limited In 2000 the Company had sales revenue of $500 million, profit after tax of $4.3 million and 600 employees. Following Alan s death, Ken Macdonald became the CEO and further expanded the Company. Upon Ken s retirement in 2005 the Company had sales revenue of $1.07bn, profit after tax of $13.3 million and 1,200 employees. In 2012 the Company had sales revenue of $2.6bn profit after tax of $XX.X million and 3,000 employees.

A.P. Eagers Today 100 year old automotive retail group founded in 1913 55 years as a listed public company dividend paid every year A.P. Eagers owns more than 70 acres of prime real estate with land and buildings of $337m (June 2012) Represents all 12 of the top 12 selling vehicle brands in Australia and 30 car brands in total along with 11 truck / bus brands 97 dealership locations in Qld, NT, NSW, Vic and SA 3,000 employees

AP Eagers Investments 20.8% ownership of MTAI Insurance Company (Since 1985) 7.5% ownership of www.carsguide.com.au (Nov 2011) 18.6% ownership of Automotive Holdings Group (2012)

A.P. Eagers Volume Car Brands Represents 12 of the top 12 selling volume car brands in Australia

A.P. Eagers Luxury Car Brands Represents 8 of the top 9 selling luxury car brands in Australia

A.P. Eagers Truck and Bus Brands Representing 11 truck and bus brands

AP Eagers $0.15bn (6%) $1.13bn (44%) AP Eagers $2.6 billion $0.0bn $0.53bn (20%) $0.62bn (24%) $0.16 BN (6%) $0.0 BN

A.P. Eagers $337m Property Portfolio

Property Portfolio June 2012 $337m VIC/SA 9% NSW 24% NEWSTEAD/ FORTITUDE VALLEY/ WOOLLOONGABBA 40%

Map I Brisbane CBD Brisbane CBD (yellow) and planned development zones (blue)

Map II Woolloongabba Woolloongabba Centre Neighbourhood Plan (blue) Overlaid with AP Eagers Properties (red)

Map IV: Fortitude Valley Fortitude Valley Centre Neighbourhood Plan (blue) overlaid AP Eagers properties (red)

Map V: Fortitude Valley Close up of Fortitude Valley properties within development zone Currently owned (red) sold (green)

Map VI: Newstead Newstead neighbourhood plan (blue) overlaid AP Eagers properties (red)

Close up of core Newstead properties within development zone

How does a car Dealership work? Sells - New cars - Pre-owned cars - Finance and Insurance - Car care products (window tint, paint and fabric protection etc) Sells - Maintenance and repair - Parts for maintenance and repair - Wholesale parts (depends on Dealership)

Internet

Record 2011 and Record 2012 2011 Record basic EPS + 21% (record underlying EPS +25%) Record full year FF dividend 80cents (1 for 5 share split:16cents) + 25% 2012 Record underlying NPBT $78.4m* + 27% *Subject to Audit

2012 Reason for Record Low interest rates, manufacturer interest rate campaigns Imported brands (87%) benefiting from strong Australian dollar Industry volume up 10.3% on PCP Greater volume = Increased variable costs with stable fixed costs Continued internal innovation, i.e. Carzoos Continued internal best practise improvements

2012 Record Performance well spread Record result in Cars, NT, QLD, SA and Nationally Record result in Trucks Nationally

How has the growth been achieved? Feb 2007 Apr 2007 Jul 2007 Apr 2008 Feb 2010 Oct 2010 Feb 2011 Purchased Klosters Motor Group, Newcastle Purchased 19.6% of Adtrans Group, South Australia Purchased Surfers City Holden, Gold Coast Purchased Bill Buckle Auto Group, Sydney Purchased Caloundra City Autos, Sunshine Coast Purchased 100% of Adtrans Group, South Australia Purchased Eblen Motors, Adelaide 2012 Purchased 18.6% of AHG, Western Australia

Automotive Holdings Group (AHE) 48, 413, 300 units @ $2.86 per share AHE closed $4.10 (18/02/13) Earnings accretive Focus on EPS and DPS growth Working with all stakeholders to create value

Thank you.

Questions?