Half Year 2022 Inchcape PLC Earnings Presentation Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew Nussey - Peel Hunt LLP, Research Division - Analyst : A couple of questions from me, please. First of all, you gave some useful insight in terms of new vehicle supply out to FY '25. I wonder if you could just give us some insights what the markets or the OEMs are thinking about in terms of inflation over that period in terms of new vehicles? And secondly on Derco, could you just expand on how the business has grown, has it been largely organic, have they done their own M&A or have they benefited from outsourcing of OEM relationships? And in terms of Bolivia, which looks like a potentially interesting new market for Inchcape if the deal completes, who currently distributes your core OEM brands in that market, I think, particularly Daimler and what have you? And lastly, just you mentioned very briefly, the rental model within Derco. Could you just explain what that is and how significant it is in terms of the overall business please?

Question: Georgios Alexandre Bela Pilakoutas - Numis Securities Limited, Research Division - Analyst : I've got a few, if that's okay, and I might kick off with a couple more strategic and then a couple more on net finance side for Gijsbert, if that's okay. And on the strategic ones, the first one, can you just give a sense on how [Sunita] that kind of penetration on kind of non-new car incomes around kind of used car penetration and finance and used penetration and how that benchmarks to Inchcape in LatAm? Then the second one is you've spoken about 18% aggregate market share. What do you think adding Inchcape -- what would that will take you to in terms of aggregate market share in those markets? Do you then think that there is a correlation between market share and margins? And then REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 28, 2022 / 7:30AM, INCH.L - Half Year 2022 Inchcape PLC Earnings Presentation finally, I'd like to push you a little bit more on some of the revenue synergies, and let's say you were getting to approaching 30% market share of that new car market. It's quite a unique footprint in that auto ecosystem. Just interested to understand how this changes the opportunity compared to other markets where you're in where you're only representing a smaller proportion of brands, particularly kind of the flow of used cars and perhaps what opportunity could bravoauto that creates. And then whether this is changing your thinking more broadly going forward about the importance of having multiple brands in certain markets versus being kind of, I guess, more thinly spread across more markets.

Question: Georgios Alexandre Bela Pilakoutas - Numis Securities Limited, Research Division - Analyst : Yes. That's perfect. And then I've got 3 for Gijsbert, if that's okay. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 28, 2022 / 7:30AM, INCH.L - Half Year 2022 Inchcape PLC Earnings Presentation

Question: Georgios Alexandre Bela Pilakoutas - Numis Securities Limited, Research Division - Analyst : So the first one is, the margin in Americas and Africa is quite a bit above where it was kind of in 2019. So just interested to hear if you can give a bit more color on what some of the moving parts are there, and I guess, how sustainable that is? And then a couple on the balance sheet. Firstly, inventory still -- it feels kind of (inaudible) kind of still on the low side. Just wondering what kind of outflow one would expect to get to a more normalized level from kind of an absolute cash position. And then secondly is just how to think about leverage from here. 0.6x, I appreciate that will be paid down fairly quickly, but how do you think about deals in the meantime?

Question: Paul Rossington - HSBC, Research Division - Analyst : Well done on the numbers today and congratulations on the deal. Just one very quick follow-up for me. It's more on current trading, or sorry, not specific on current trading, but you talked previously about your order books being quite robust. And you also said the cancellation rates have not moved. Are you able to give a bit more granular detail about how -- what kind of forward visibility those order books actually give you at group level? Is it 6 months, is it 12 months, is it very significantly on a market-by-market basis. And that's my only question.

Question: Paul Rossington - HSBC, Research Division - Analyst : Yes, it does actually. And one of the follow-up just checking my list here. When you say the GBP 350 million to GBP 370 million full year PBT guidance is based on constant -- sorry, current FX rates. What is your Japanese yen, Aussie dollar assumption just if you're allowed to disclose that for reference.