Presentation to Stockbrokers

Transcription

1 9 September 2008 Company Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000 Re: Presentation to Stockbrokers Please find attached today s presentation to Taylor Collison. Yours faithfully A.P. Eagers Limited Denis Stark Company Secretary For more information on A. P. Eagers Ltd, visit 1

2 Taylor Collison Sydney Briefing Tuesday 9 September 2008

3 About A.P. Eagers 95 year old automotive retail group founded in years as a listed public company dividend paid every year Record dividend each year for last 7 years A.P. Eagers owns more than 69 acres of prime real estate mainly in metropolitan Brisbane Balance sheet value of land and buildings $331m (June 2008)

4 About A.P. Eagers Represents 10 of the top 10 selling vehicle brands in Australia

5 About A.P. Eagers As well as 18 others, representing 28 vehicle brands in total

6 Group Financial Results Includes GST refund of $11.5 million before tax. PBT of $16.6 million before GST refund compares to $16.4 million for 1H PCP Change Total Revenue $909m +15% Trading (before Sale of Property & Associates Profit) EBITDA $44.2m +56% Including Associate Profits EBIT $40.8m +61% PBT $28.1m +71% Group Result PAT $19.8m +71% EPS - Basic 67.9c +59% Total Dividend 22 cents unchanged

7 Financial Trends

8 Trading Performance Outstanding record year Qtr Continued growth but slowing Qtr Negative growth Qtr Tough conditions being experienced Qtr Better conditions anticipated Fundamentals and circumstances should lead to positive growth

9 Automotive Franchised Retailing Revenue $897.0m % Operating Profit $ 20.4m % Interest $ 7.1m % ADG / MTAI $ 0.8m 7.1% Segment Profit $ 14.1m + 3.0% (11.3% annualised after tax return on segment net assets compared to 13.1% in 2007.) Note: ADG $1.5m offset by MTAI <$0.7m>

10 MTAI 1H 2H FY MTAI (100%) $2.3m <$3.4m> <$1.1m> APE (19.43%) $0.5m <$0.7m> <$0.2m> MTAI results based on financial year July 07 June 08. MTAI s losses are all associated with a mark to market valuation of their investment assets at June 30 th Net profit before investments was up over 100%.

11 Automotive Franchised Retailing New Cars 18,082 units +15% (same store basis +2.4%) Used Cars 7,965 units +16% (same store basis +8.2%) F & I +42% (same store basis +35%) Parts Revenue +12% Margin + 21% Service Revenue +32% Margin + 40%

12 Australian new car sales (month of August and year to date) Month YTD Variance +/- Vol. & % Total Market MTH YTD MTH YTD AUSTRALIAN CAPITAL TERRITORY 1,180 1,424 10,732 11, % -3.80% NEW SOUTH WALES 22,669 26, , ,428-3,880-1, % -0.90% NORTHERN TERRITORY ,664 6, % 11.20% QUEENSLAND 15,679 19, , ,847-3,466-5, % -3.80% SOUTH AUSTRALIA 5,034 5,128 44,134 41, , % 6.70% TASMANIA 1,680 1,481 12,493 11, % 5.20% VICTORIA 20,575 22, , ,000-2,383 9, % 5.20% WESTERN AUSTRALIA 9,652 10,730 80,423 80,327-1, % 0.10% Total 77,324 88, , ,873-10,882 5, % 0.70%

13 Petrol has skyrocketed. Other car running costs are keeping pace with inflation Consumer Price Indexes Indexes =100 Auto fuel All CPI auto servicing auto parts Source: ABS, ANZ Bank

14 New cars are now cheaper, more affordable Consumer Price Indexes Indexes =100 All CPI New car prices Source: ABS, ANZ Bank

15 National vehicle fleet is approaching 15 million (car parc) All vehicle registrations 15 mn other vehicles passenger & SUVs Source: ABS, ANZ Bank

16 Bill Buckle Auto Group

17 Bill Buckle Auto Group

18 Bill Buckle Auto Group $12.7m to acquire Bill Buckle Auto Group. $22.6m to acquire related property assets. Turnover $170m, 180 staff, 4,000 new / used vehicles per annum National Market Share 2007 Growth 1H 2008 Toyota 22.5% +10.7% + 9.4% Subaru 3.7% + 2.5% + 6.4% VW 2.6% +27.0% +19.2% Audi 0.7% +25.2% +33.5% 29.5%

19 Property Segment Revenue $13.6m % Operating Profit $10.0m % Interest $ 5.6m % Operating contributions $ 4.5m 1.0% (4.6% annualised after tax return on segment net assets compared to 5.3% in 2007.) Balance sheet value of L&B at 30 June m compared with $314m at 31 December 2007 and $267m at 30 June 2007.

20 Debt Position BBAG lease book $29m. Property Assets $331m. Focus on debt reduction in second half. June 2008 August 2008 ANZ Bank Bill Facility $174m $156m Bailment Facility $250m $ 243m

21 Essential Operational Integration Decisions Taken Southside Ford sales operations relocating to Metro Ford effective 1 October Southside Ford service and parts operations to continue. Minimal trading P&L impact in Property sale completion late 2008 / early (Unquantifiable P&L impact) 2009 P&L impact $1m plus asset reduction circa $20m leading to corresponding lower debt.

22 Southside Ford

23 Metro Ford

24 Woolloongabba Structure Plan

25 Woolloongabba Core

26 Actions July Dec 2008 (2H) Debt reduction (Bailment finance and ANZ corporate facility) using cashflow and addressing underperforming assets. Maintain disciplines and remain motivated during current tougher trading cycle. Continue development and plan launch of organic growth strategy launch 2Q Continue growth through acquisition of carefully selected earnings accretive businesses.

27 Generic Industry-wide reasons why we believe 2009 will be better Anticipated further lower interest rates results in lower costs (bailment and corporate debt). Anticipated further lower interest rates results in greater private new and used car customers. Manufacturers and retailers should correct the excess inventory issue during 2H 2008 leading to less pressure on margins growing into The used car correction is an event in time rather than a continual issue. Record new car sales over six of the last seven years will continue to drive the engine room of the dealerships i.e. parts and service.

28 A.P. Eagers Improvements in 2009 Improved performance due to generic industry wide macro environment. Lower debt due to reduced underperforming assets. Organic growth strategy implementation. Earnings accretive acquisitions.