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) |
- Defined as those markets with annual new car volumes of less than 1m units
-
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 |
- 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)
- 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.