INVESTOR PRESENTATION
March 2024
Representing over 60 brands across 40 markets
1. Reported YoY revenue growth (2023 vs 2022) | 2 |
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 |
Our financials
ROCE
>25%
Cash conversion
>60%
Strong financial position (M&A firepower)
Attractive capital allocation framework
3
FY 2023: A strong financial and operating performance
FINANCIALS:
£11.4bn
Revenue
2022: £8.1bn
£502m
PBT
2022: £373m
CASH & RETURNS: | |
84.8p | £498m |
EPS | FCF |
2022: 72.0p | 2022: £380m |
26%
ROCE
2022: 41%
33.9p
DPS
2022: 28.8p
OUR PEOPLE:
PLANET:
CUSTOMERS:
28% | 31% | 2.4% |
Women in Senior | reduction in Scope 1 | BEV's sold |
Leadership positions | and 2 GHG emissions | 2022: 2.5% |
2022: 22% | 2030 target: 46% reduction | |
versus 2019-baseline |
702
Reputation.com score
2022: 671
Figures are stated before adjusting items, and on the basis of continuing operations | |
Women in Senior Leadership includes Group Executive Team and its direct reports| Scope 2 emissions measured on a market approach | 4 |
BEV = battery electric (new) vehicles volumes | Reptutation.com score measured up to 1000 based on customer experience (industry average: 555) |
FY 2023: a strong performance
Topline: | Profitability: | Balance sheet | Shareholders: |
Revenue | Operating margin | and cash flow: | Basic EPS |
Free Cash Flow |
£11.4bn | 5.8% | £498m | 84.8p |
+41%
+70 bps from FY 2022 | with 74% FCF conversion | +18% from FY 2022 |
+12% | £502m | 0.8x | 33.9p | ||
+35% from FY 2022 | +18% from FY 2022 | ||||
Total | Organic | PBT | Leverage ratio | Dividend per share |
revenue | growth | (proforma) | (proposed) | |
growth | (YoY%) | |||
(YoY%) |
Where appropriate, figures stated before adjusting items, and on the basis of continuing operations | 5 |
FY 2023: Substantial strategic progress
Inchcape well positioned for growth
STRATEGIC DEVELOPMENTS
GROWTH OUTLOOK
Contract wins and bolt-on acquisitions
15 distribution contracts won and 3 acquisitions completed in FY 2023
Market share gains
Derco progress
- Integration
- Synergies
- Operating margin
- Working capital
FY 2024 | Medium to long term |
Another year of growth, | Expecting to return to |
albeit moderated | higher levels of growth |
Certain markets weaker | Supported by further |
than previous years | benefits from stronger |
Even stronger focus on | cost focus |
cost management
6
Accelerate strategic framework
Our Growth Drivers
Distribution Excellence | Vehicle Lifecycle Services |
Our Enablers
Culture and | Digital, Data & | Efficient Scale |
Capabilities | Analytics | Operations |
Responsible Business
7
Our growth drivers
Distribution Excellence
Our value chain
Vehicle Lifecycle Services
Vehicle lifecycle value profit split2
75% Currently
underserved
3x | by Inchcape |
25%
Initial User | Subsequent Users |
(0-4 years) | (4+ years) |
1: Analysis shows the split of profit attainable over an average vehicle's life, and assumes four different owners during that period | 8 |
The analysis captures the vehicle sales, finance & insurance commission and the aftersales services (including independent aftermarket) |
Inchcape has a robust business model
The Group's long-term prospects are supported by ….
Market leadership | Investments in | Aftermarket | A resilient |
in fragmented | digital and data | and Vehicle | business model |
markets | analytics | Lifecycle Services | Inchcape is a key |
Opportunity to | Driving a great | Growth through | |
element of the | |||
consolidate - through | consumer experience, | increased | OEM value chain |
organic investment | operational efficiency | participation in | |
and M&A | and long- term | broader parts of the | |
customer value | value chain | ||
+ | + | = |
Our Responsible Business agenda: People, Planet, Places and Practices
9
Why Inchcape is winning with our mobility company partners
Inchcape is a key element of the mobility company value chain
We manage the cost of complexity for our partners
Through consistent | Supported by our | Proven by our |
delivery of Distribution | digital and data | long track record |
Excellence on a | analytics capabilities | of performance |
global basis | ||
Including regulatory | To help our mobility | Longest mobility |
compliance, inventory | company partners | company partnership |
management & | maximise and grow | of 100+ years |
channel management | their market position |
Underpinned by our Responsible Business agenda: People, Planet, Places and Practices
10
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Disclaimer
Inchcape plc published this content on 09 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 April 2024 08:39:04 UTC.