INVESTOR PRESENTATION

May 2023

Inchcape: Group overview

Our business

Our differentiators

Distribution focusGlobal scale

c.90% of

6 continents

profit

>40 markets

Vehicles & Parts

Technology

Strong automotive

Digital & Analytics

brands

leader

Leading global automotive distributor

Specialist in higher growth markets

Long-term relationships with global OEMs

Leveraging technological capability

2

Our financials

ROCE

c.25%

Cash conversion

>60%

Strong financial position (M&A firepower)

Attractive capital allocation framework

3

2022 headline financials

Topline

Profitability

Cash

Shareholders

Revenue

Operating margin

Free Cash Flow

Adjusted EPS

£8.1bn

5.1%

£380m

72.0p

+15%

£373m

£(378)m

28.8p

(2021: 22.5p)

Organic growth (YoY%)

PBT

Net debt1

Dividend per share

(proposed)

Figures are stated before adjusting items, and on the basis of continuing operations

1: net debt reflects the completion of the Derco transaction on 31 December 2022. NB. Derco did not contribute any revenue or profit to the Inchcape Group in 2022

4

Considerable opportunities for an ambitious Inchcape

Distribution Excellence

Annual new car volumes (units)

90m17m

New market

opportunities

Large markets;

e.g. China,

typically

US, UK,

insourced

Brazil,

by OEMs

Mexico

Inchcape

17m

markets

worldwide

Global

Typical distribution

markets1

Vehicle Lifecycle Services

Vehicle lifecycle value profit split2

75% Currently

underserved

3x

by Inchcape

25%

Inchcape

volumes

Initial User

Subsequent Users

(0-4 years)

(4+ years)

  1. Defined as those markets with annual new car volumes of less than 1m units
  2. Analysis shows the split of profit attainable over an average vehicle's life, and assumes four different owners during that period
    The analysis captures the vehicle sales, finance & insurance commission and the aftersales services (including independent aftermarket)

5

Distribution deals & OEM opportunities have accelerated

2010

2016

2017

2018

2019

2020

2021

2022

2023

to date

Number of

0

2

2

3

3

5

5

5

22

deals

Revenue

-

c.£400m

c.£100m

c.£250m

c.£150m

c.£200m

c.£200m

c.£2.3bn

c.£300m

added1

New OEMs

-

1

2

2

1

0

3

7

1

New markets

-

3

0

3

2

2

3

1

1

  1. Shows revenue reported in the last full financial year prior to Inchcape's ownership (e.g. Derco acquired on 31 December 2022, and 'revenue added' is the £2.2bn generated in the year ending December 2022)
  2. CATS Group (Philippines: Mercedes-Benz, Chrysler, Dodge, Jeep, Jaguar Land Rover and RAM) and Mercedes-Benz Indonesia; remain subject to customary conditions with completion anticipated in the second half of 2023

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Inchcape plc published this content on 04 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 May 2023 07:52:04 UTC.