MARSHALL MOTOR HOLDINGS PLC 2015 FULL YEAR RESULTS PRESENTATION

Transcription

1 MARSHALL MOTOR HOLDINGS PLC 2015 FULL YEAR RESULTS PRESENTATION mmhplc.com Over 106 years of putting our customers above all else

2 INTRODUCTION 2

3 AGENDA Highlights Financial Overview Operating and Strategic Review Current Trading & Outlook Summary 3

4 HIGHLIGHTS FINANCIAL SUMMARY OPERATIONAL OVERVIEW STRATEGIC DEVELOPMENTS TRADING UPDATE Record financial performance at both revenue and PBT Revenues up 13.5% Adjusted PBT* 15.8m (21.4% increase YoY) Full year dividend 2.98p per share PBT retail +29.0%, leasing PBT +24.0% New car unit sales +9.9%, used +8.2% Aftersales revenues +8.5% IPO completed April 2015 Acquisition of SG Smith Holdings completed November 2015 Ongoing rollout of Phoenix 2 and ipad customer enquiry system 3 major site re-developments underway Q1 to date in line with our expectations Strong balance sheet Pipeline of potential acquisitions * Prior to acquisition costs 4

5 FINANCIAL OVERVIEW 5

6 Class Leading Returns CONTINUED TRACK RECORD OF STRONG GROWTH Revenue ( m) Adjusted PBT* ( m) Net Assets ( m) 1,300 1,250 1,200 1,150 1, CAGR 15.8% , , CAGR 51.5% * All references to Adjusted PBT are prior to acquisition costs

7 Class Leading Returns FINANCIAL SUMMARY Revenue ( m) 1, , % Var Gross Profit % 11.8% 11.6% 17bps Adjusted Operating Profit ( m) % (%) 1.5% 1.4% 10bps Finance Costs (2.9) (2.4) 22.7% Adjusted PBT ( m) % Reported PBT ( m) Tax 23.8% 22.9% Basic EPS (p)* DPS (p) N/A N/A Net Cash ( m) ** Net Debt ( m) (27.2) (51.7) * Calculated on average number of shares. (15.2p based on shares at 31/12/15) ** Excludes asset backed finance relating to leasing segment 7

8 Class Leading Returns SEGMENTAL RESULTS Segmental Revenue ( m) Var Retail 1, , % Leasing % Unallocated Total 1, , % Adjusted Segmental PBT ( m) Var Retail % Leasing % Unallocated (7.8) (5.4) Total % 8

9 Class Leading Returns RETAIL: REVENUE AND VOLUMES Revenue ( m) Var % LFL Var % New % 10.5% Used % 3.1% Aftersales % 2.4% Internal (29.3) (25.3) Total 1, , % 6.6% Unit Sales Var % LFL Var % New 35,103 31, % 7.2% Used 27,699 25, % 1.5% Total 62,802 57, % 4.7% 9

10 Class Leading Returns RETAIL: GROSS PROFIT Gross Profit ( m) GP% New Used Aftersales / Other % 18% 16% 14% 12% 10% 8% % 18% 16% 14% 12% 10% 8% % 58% 56% 54% 52% 50% 48% 18 6% 18 6% 18 46% 12 4% 12 4% 12 44% 6 2% 6 2% 6 42% 0 0% 0 0% 0 40% Mix % Revenue 50.6% 52.1% Gross Profit 33.4% 33.6% Mix % Revenue 38.4% 37.5% Gross Profit 23.6% 24.5% Mix % Revenue 11.0% 10.4% Gross Profit 43.0% 41.9% 10

11 Class Leading Returns LEASING SUMMARY Fleet (No. Vehicles) Disposal Profit Per Unit ( ) Leasing Equity ( m) 7,000 3, ,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 5,212 5,610 6,031 6,029 3,250 3,000 2,750 2,500 2,250 2,000 1,750 1,500 1,250 1,867 2,101 2,250 2, ,000 1, , , Funded Equity 11

12 Class Leading Returns BALANCE SHEET Intangible Trade / Other Receivables Property, Plant & Equipment Other Fixed Assets Inventory Trade / Other Receivables Inter-Company Trade Debtors Other Total Cash & Equivalents Current Assets Trade / Other Payables Trade / Other Payables (268.5) (230.0) Leasing Debt (51.4) (47.0) Bank Debt - (6.5) Other (5.2) (3.5) Total Liabilities (325.1) (287.0) Inter-Company - (56.1) Vehicle Funding (186.2) (110.4) Other (82.3) (63.5) Total (268.5) (230.0) Shareholders Equity Net Cash Net Inter-Co - (16.4) Net Debt (27.2) (51.7) 12

13 Class Leading Returns CASHFLOW EBIT Depreciation: Retail Leasing Share based payments Adjusted EBIT Working Capital (7.6) 14.0 Operating Cashflow Working Capital Inventory (77.6) I/C Settlement (16.4) Stock Funding 75.7 Other 10.7 Total (7.6) Tax / interest (6.7) (6.5) Gross Cashflow CAPEX: Retail (9.8) (5.8) Leasing (29.8) (27.3) Disposal Proceeds Free Cashflow (5.5) 19.1 Acquisitions (21.5) (15.8) Dividends (15.4) (4.5) Borrowings (2.2) 1.2 Investments Net IPO Proceeds Cashflow Underlying Total Cash Inflow Cashflow 22.3 I/C Settlement 16.4 Acquisitions 21.5 Pre-Admission Dividends 15.0 Investments (30.0) Net IPO Proceeds (36.9) Underlying Total Cash Inflow

14 Class Leading Returns BALANCE SHEET STRENGTH FOR FUTURE GROWTH Net assets 129.9m which equates to 1.68 per share 49.4m of unencumbered inventory and 11.1m of leasing fleet equity Adjusted net cash at year end of 24.1m Unsecured and un-utilised 75m RCF with 25m accordion facility 14

15 Class Leading Returns FINANCIAL GUIDANCE: 2016 H1:H2 split broadly in line with 2015 Unallocated segment loss broadly flat SG Smith increases interest cost Tax rate expected to be broadly in line with retail capital expenditure c 24m (2015: 9.8m) 15

16 OPERATING & STRATEGIC REVIEW 16

17 MARKET BACKDROP UK New Car Registrations (m) F UK Used Car Transactions (m) 2.63m new units registered in 2015 up 6.3% Fleet up 11.8%, retail up 2.5% 2016 SMMT forecast broadly flat At macro level a number of overseas markets continue to remain challenging China, Russia, Brazil and Middle East UK market fuelled by strong PCP offers and low interest rates Increased vehicle parc positive for aftersales growth 71% of new car finance cases PCP with used at 37% Franchised sector winning share from independents Source: SMMT and Experian

18 TO BE THE UK S PREMIER AUTOMOTIVE RETAIL AND LEASING GROUP VISION Class Leading Returns Customer First Retailing Excellence People Centric Strategic Growth 18

19 Customer First CONTINUED HIGH LEVELS OF CUSTOMER ADVOCACY Source of Customers: Previous / Recommended Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 28,755 customers surveyed 10,222 respondents in 2015 >96% showroom satisfaction 43% previous customers or recommended Source: Internal Management Information 19

20 Customer First CUSTOMER FIRST ONLINE Device Traffic (Marshallweb) Website Visitors (m) Desktop Tablet / Mobile 3.0 H1 H2 100% % % % % 0.5 0% 0 01/09 01/10 01/11 01/12 01/13 01/14 01/15 01/ % increase in visits YoY 7 th most visited dealer group website in UK www. marshallweb.co.uk Fully optimised website launched March 2016 Source: Hitwise and internal data 20

21 Customer First CUSTOMER FIRST - ONLINE 21

22 Customer First CUSTOMER FIRST - LEASING 6,029 vehicles on the fleet total value 62.5m Telematics offering & MI portal well received 16 new accounts opened 2 fleets converted to sole supply 22

23 Retailing Excellence RETAILING EXCELLENCE IN SHOWROOM Customer friendly ipad solution piloted 2014 Robust FCA, data capture and enquiry management process 70% locations brought online through Remainder through ipads deployed across sales community Increased sales executive activity and productivity management 23

24 Retailing Excellence RETAILING EXCELLENCE PHOENIX 2 Bespoke developed MI reporting system Fully embedded in the business and DMS integrated Unique system designed to provide real time information across the business Developed in-house over 7 years Working capital, stock management, WIP, customer experience, sales analysis Margin and returns optimisation.net Development of Phoenix 2 Fully Optimised Alerts call to action 24

25 Retailing Excellence RETAILING EXCELLENCE PHOENIX 2 25

26 People Centric PEOPLE CENTRIC Engagement Score - Trust Index % Trust index score in th Best Employer in the UK (Large Category) 89% Participation rate Source: Great Place to Work Survey 26

27 Strategic Growth PORTFOLIO STRATEGY Increase geographic footprint to create scalable national business Partner with the right brands Grow scale with existing brand partners to drive economies of scale Ongoing portfolio management Build and maintain balanced portfolio 27

28 Strategic Growth PORTFOLIO DEVELOPMENT ACQUISITIONS / STARTUPS 2 TRANSACTIONS & 4 START-UPS * * * 2 TRANSACTIONS & 1 START-UP * 2 TRANSACTIONS 2 TRANSACTIONS 2 TRANSACTIONS 3 TRANSACTIONS & 1 START-UP * 1 TRANSACTION EXITS CORPORATE 1 ST GERMAN BRAND ADDED MERCEDES -BENZ 2 ND GERMAN BRAND ADDED VOLKSWAGEN 3 RD GERMAN BRAND ADDED AUDI EXIT OF 25 NON-CORE, SUBSCALE OR LOSS MAKING OPERATIONS 4 TH GERMAN BRAND ADDED BMW MMH LISTS ON THE LSE *Start-up 28

29 Strategic Growth STRATEGIC GROWTH - SG SMITH ACQUISITION 24.0m off-market transaction Attractive multiple Increases Audi from 3 centres to 7, Skoda 1 to 2, TPS 1 to 3 and adds Mercedes CV AR Adds 3 new attractive and affluent markets: Kent, Surrey and London 2015 revenues 183.1m TP S 427 colleagues AUDI TP S Integration ongoing AUDI AUDI TP S MERC CV SKODA AUDI 29

30 Strategic Growth PORTFOLIO TODAY 1.3% Specialist 36.8% Prestige 28.9% Alt Premium 32.9% Volume Balanced portfolio covering 19 counties Highest brand coverage of any dealer group Headroom for growth with all OEMs 30

31 CURRENT TRADING & OUTLOOK Leasing growth returning to more normalized levels New car registrations up 4.7% March plate change month critical to H1 performance Q1 order take in line with management expectations Achievement of brand partner targets underpin the period 31

32 SUMMARY Record results SG Smith acquisition materially earnings enhancing Targeting further material revenue and profit growth in 2016 in line with current expectations Pipeline of quality acquisition opportunities building 32

33 APPENDIX mmhplc.com Over 106 years of putting our customers above all else

34 INVESTMENT HIGHLIGHTS 10 th largest UK dealer group with 1.2bn revenue Balanced Brand portfolio Excellent financial track record 7 th most visited Dealer Group website 26 th best employer in UK 4 th fastest growing top 100 dealer (since 2008) 87.5% brand coverage highest of any dealer group Fully integrated leasing business Bespoke Phoenix 2 system 34

35 APPENDIX: 4 YEAR TRACK RECORD (1) EBIT ROS % Gross Margin % 1.8% 15.0% 1.5% 12.5% 1.2% 0.9% 1.3% 1.4% 1.5% 10.0% 7.5% 11.7% 12.1% 11.6% 11.8% 0.6% 0.3% 0% 0.9% 5.0% 2.5% 0% EBITDAR ROS% Operating Costs % 3.0% 12.0% 2.5% 2.0% 1.5% 2.0% 2.4% 2.4% 2.4% 10.0% 8.0% 6.0% 10.9% 10.8% 10.2% 10.3% 1.0% 4.0% 0.5% 2.0% 0% 0.0%

36 APPENDIX: 4 YEAR TRACK RECORD (2) New Used % % % 7.0% 6.8% % 7.0% 6.8% % 6.4% 6.2% % 6.4% 6.2% After Sales Leasing % % % 43.0% 42.0% 41.0% 40.0% % 24.0% 23.5% 23.0% 22.5% % % Gross Profit ( m) Gross Profit % 36

37 APPENDIX: MMH VOLUMES New Vehicles Used Vehicles 42K 39K 36K CAGR 16.3% 42K 39K 36K CAGR 12.0% 33K 30K 27K 24K 21K 18K 15K 12K 9K 6K 12,188 12,699 16, ,245 27,250 31,951 35,103 33K 30K 27K 24K 21K 18K 15K 12K 9K 6K 12,540 14,289 16,635 16,615 18,965 23,395 25,598 27,699 3K 3K 0K 0K

38 APPENDIX: MMH NEW VEHICLE MARKET SHARE 1.4% 1.3% 1.2% 1.1% 1.0% 0.9% 0.8% 1.04% 1.23% 1.20% 1.29% 1.33% 0.7% 0.6% 0.5% 0.4% 0.3% 0.57% 0.64% 0.79% 0.2% 0.1% 0%

39 APPENDIX: MARKET BACKDROP (2/2) NEW CAR MARKET (MILLION VEHICLES) USED CAR MARKET (MILLION VEHICLES) Source: SMMT 40

40 Disclaimer This document comprises the written materials/slides for a presentation concerning Marshall Motor Holdings plc (the Company ) and its full year results for the period ended 31 December 2015 (the 2015 Results ). By reviewing this presentation you agree to be bound by the conditions set out below. No reliance may be placed for any purposes whatsoever on the information in this document or on its completeness. The presentation is intended to provide a general overview of the Company s business and does not purport to deal with all aspects and details regarding the Company. Accordingly, neither the Company nor any of its respective directors, officers, employees or advisers nor any other person makes any representation or warranty, express or implied, as to, and accordingly no reliance may be placed on, the fairness, accuracy or completeness of the information contained in the presentation or of the views given or implied. Neither the Company nor any of its respective directors, officers, employees or advisers nor any other person shall have any liability whatsoever for any errors or omissions or any loss howsoever arising, directly or indirectly, from any use of this information or its contents or otherwise arising in connection therewith. Certain statements in this presentation regarding the Company are or may be forward-looking statements. These forward-looking statements are neither historical facts or guarantees of future performance. Such statements are based on current expectations and belief and, by their nature, are subject to a number of known and unknown risks and uncertainties which may cause the actual results, prospects and developments of the Company to differ materially from those expressed or implied by these forward-looking statements. The information contained in this presentation is for background purposes only. The subject matter of the presentation may be subject to change and the Company does not take any responsibility for updating or amending the contents to reflect such changes. The material contained in this presentation reflects current legislation and the business and financial affairs of the Company which are subject to change without notice and audit, and is subject to the provisions contained within legislation. This presentation summarises information contained in the Interim Results. Without prejudice to the generality of these conditions, this summary information, including any views given or implied, or any statement made, in relation to such information should not be relied upon, nor should it be treated as accurate or complete. This presentation and all such information contained herein should be read subject to the Interims Results. The information contained in this presentation has been obtained from Company sources and from sources which the Company believes to be reliable but it has not independently verified such information and does not guarantee that it is accurate or complete. No statement in this presentation is intended to be a profit forecast and no statement in this presentation should be interpreted to mean that earnings per Company share for current or future financial years would necessarily match or exceed the historical published earnings per Company share. 41

41 2015 FULL YEAR RESULTS PRESENTATION MARSHALL MOTOR HOLDINGS PLC mmhplc.com Over 106 years of putting our customers above all else