Inchcape Plc · LSE:INCH
Inchcape — Merger or Acquisition (March 2018)
11 slides from Inchcape's merger presentation, Mar 26, 2018
Slide 1: Strategic Distribution Acquisition in Central America
STRATEGIC DISTRIBUTION ACQUISITION IN CENTRAL AMERICA 26 MARCH 2018
Slide 2: Strategic Rationale
STRATEGIC RATIONALE HIGH-QUALITY CENTRAL AMERICAN DISTRIBUTION BUSINESS Inchcape has acquired Grupo Rudelman for £201M on a cash-free and debt-free basis Suzuki-led Distribution business in Costa Rica and Panama with a strong management team Establishes a scale presence in two of the most attractive
Slide 3: Investing to Accelerate Growth
INVESTING TO ACCELERATE GROWTH SUPPORTED BY OEM PARTNER OF CHOICE IGNITE SRATEGY Further demonstration of continued delivery of Ignite strategy Marks 6th Distribution deal in 24 months Expansion in Latin America with an existing OEM partner; OEM Partner of Choice in action Consistent with discipline
Slide 4: Financial Rationale
FINANCIAL RATIONALE ATTRACTIVE PRICE; MID-SINGLE DIGIT ACCRETION IN YEAR 1 FINANCIALS DEAL CONSIDERATIONS Acquisition Inchcape £M FY17E FY17 Sales 207 8,949 Cash consideration of £201M, represents 9.6x 2017 EBIT multiple1 EBIT 21 408 GROUP FINANCIAL MODEL UPDATES Funded from cash & committed debt fa
Slide 5: Evolving Inchcape Footprint
EVOLVING INCHCAPE FOOTPRINT CONTINUED SHIFT TOWARDS HIGHER-GROWTH DISTRIBUTION MARKETS REGIONAL MIX CHANNEL MIX POSITIONS INCHCAPE 22% 20% Australasia Distribution WELL FOR: 27% 11% 21% 25% Emerging Retail Markets 71% 80% 81% 29% 21% 20% UK/Europe Growth Asia 33% 36% 35% 29% 20% 19% 2014 2017 2017 P
Slide 6: Grupo Rudelman Overview
GRUPO RUDELMAN OVERVIEW A LEADING AUTOMOTIVE DISTRIBUTOR IN CENTRAL AMERICA KEY HIGHLIGHTS Distributor and exclusive retailer of Suzuki passenger cars in Costa Rica & Panama 2017 REVENUE BY MARKET High quality Distribution platform Partnership with Suzuki for 45 years Leading market shares in st
Slide 7: Growth in Attractive Markets
GROWTH IN ATTRACTIVE MARKETS SOLID FUNDAMENTALS DRIVE GROWTH OUTLOOK STRUCTURAL GROWTH OPPORTUNITY GDP GROWTH ’12-’16 ’18-’22 900 Passenger and Light Commercial CAGR CAGR 800 Vehicles per 1,000 capita 700 Costa Rica +4% +4% 600 Panama +6% +5% 500 400 300 TIV GROWTH 200 ’12-’16 ’18-’22 100 CAGR CAGR
Slide 8: Suzuki Brand Portfolio
SUZUKI BRAND PORTFOLIO WELL POSITIONED FOR EMERGING MARKET CONSUMERS KEY HIGHLIGHTS BRAND PORTFOLIO Suzuki has built and maintained strong market positions in Costa Rica and Panama City cars Celerio Alto K10 Alto 800 Complementary for emerging markets Hatch- backs Broad customer appeal driven by des
Slide 9: Evolving Latin America Business
EVOLVING LATIN AMERICA BUSINESS SCALE PLATFORM WELL POSITIONED FOR FURTHER GROWTH COSTA RICA FROM - 2016 TO - 2018 PANAMA 2 countries 6 countries PERU 1 strategic OEM >6x 4 strategic OEMs profit and selected emerging OEMs CHILE c. £200M sales c. £800M sales COLOMBIA c. 5,000 new c. 40,000 new vehicl
Slide 10: Establishes a strong Central American business
Establishes a Suzuki-led Delivery of our Creating value strong Central Distribution Ignite strategy for shareholders American business and our partners Significant presence in Well positioned, opportunities Accretive to attractive growth Japanese quality to drive future earnings markets brand with b
Slide 11: Disclaimer
DISCLAIMER The information contained in this presentation in relation to Inchcape plc (“Inchcape”) and its subsidiaries (the "Inchcape Group") has been prepared solely for use at this presentation. It should not be used for whole or in part for any other purpose. The presentation is not directed to,