Date Theme Sector

26 August 2022 Company Update Consumer Discretionary

Company

Eagers Automotive Ltd (APE)

Time for a pit stop

Recommendation MARKET WEIGHT
12-mth target price (AUD) $13.20
Share price @ 25-Aug-22 (AUD) $13.16
Eagers’ 1H22 result was in line with recent guidance, with a ~10% decline in sales and EBITDA Forecast 12-mth capital return 0.3%
driven by constrained new vehicle supply. We make only modest changes to our forecasts, Forecast 12-mth dividend yield 4.4%
primarily driven by revised assumptions regarding the duration of new vehicle supply constraints. 12-mth total shareholder return 4.6%
Within the broader cyclicality of automotive dealership earnings, we are attracted to Eagers’
strategic growth drivers and strong balance sheet. The share price has outperformed the Small
Market cap ($m) 3,381
Ords by 23% over the past 3-months, coinciding with a re-rate in the multiple (FY24 PER from
Enterprise value ($m) 4,213
~12x to 14.3x). We now assess the current share price as broadly reflecting fair value taking a
12-month view and therefore moderate our rating from Overweight to MARKET WEIGHT. Shares on issue (m) 256.9
Sold short (%) 2.8
 Key Points ASX Small Ords weight (%) 1.0
Median turnover/day ($m) 7.3
1H22 result. EBITDA norm of $289m decreased 10% on pcp, primarily driven by constrained
new vehicle supply. The result was 3% above our forecast (noting we had not updated our
forecasts for the recent guidance), driven by slightly stronger sales and a modest beat on margins James Ferrier, CFA
(+10bps) on a more favourable mix (i.e higher service). PBT norm of $201m decreased 9% pcp, james.ferrier@wilsonsadvisory.com.au
was in line with recent guidance, but was 6% above our forecast, driven by the EBITDA beat and Tel. +61 3 9640 3827
modestly lower D&A and net interest expense. APE declared an interim dividend of 22.0cps (pcp:
28.4cps, including a an 8,4cps special dividend), but below our forecast of 25.5cps. Emma Wyndham-Smith
emma.wyndham-smith@wilsonsadvisory.com.au
Outlook. No explicit earnings guidance. Eagers expects the current supply/demand dynamic to Tel. +61 3 9640 3877
continue in 2H22. The 32% LFL growth in the order bank at the end of 1H22 has further
increased to August, providing a strong foundation for 2H22 and into 2023 (albeit COVID-
related challenges and macro-economic conditions remain uncertain). Eagers will focus on driving
12-mth price performance ($)
sustainable earnings growth through (a) increased productivity from property and people, (b)
invest in scaling pre-owned business, easyauto123 and rollout omni-channel offerings, (c) 18.00
integration of the ACT and SA acquisitions and (d) disciplined review of greenfield and
16.33
acquisition opportunities.
14.67

Forecasts. FY22 sales up 1% reflecting the 1H22 sales beat. FY23/24 down 2-3% reflecting 13.00
revised assumptions regarding the duration of new vehicle supply constraints. EBITDA upgraded 11.33
1-2% in FY22 and FY23 reflecting revised assumptions regarding the duration of new vehicle
9.67
supply constraints and FY24 modestly lowered (1%) reflecting margin normalisation. PBT
upgraded 3-4% in FY22 and FY23 and lowered 1% in FY24 primarily reflecting the EBITDA 8.00
Aug-21 Dec-21 Apr-22 Aug-22
changes, along with lower D&A. We have revised dividends under an assumption of a 55-65%
APE XSO
payout ratio across the forecast period.
1-mth 6-mth 12-mth
Valuation. Our revised 12mth target of $13.20 p/sh (formally $13.77 p/sh) is based on the
Abs return (%) 6.2 (5.6) (21.1)
midpoint of our earnings capitalisation valuation ($13.85, FY24 adjusted EV/EVBITDA at 9.5x)
Rel return (%) 2.2 2.1 (4.3)
and DCF valuation ($12.54). The change in valuation reflects incorporation of a DCF
methodology (previously 100% earnings capitalisation). Eagers is currently trading on a FY24
PER (pre-AASB16) of 15.4x. Eagers trades at a notable premium to ASX-listed peers in Peter
Warren Automotive (PWR.AX) and Autosports Group (ASG.AX).

Financial summary (Y/E Dec, AUD) FY20A FY21A FY22E FY23E FY24E Key changes 19-May After Var %
EBITDA norm ($m) 448.1 597.6 579.7 578.8 560.1 EBITDA FY22E 574.0 579.7 1%
NPAT norm ($m) 121.7 280.8 263.2 259.8 235.9 norm FY23E 567.3 578.8 2%
EPS norm (cents) 47.4 109.3 102.4 101.1 91.8 ($m) FY24E 567.5 560.1 -1%
Consensus EPS (cents) 104.7 96.4 91.9 EPS FY22E 104.1 102.4 -2%
EV/EBITDA (x) 9.7 7.0 7.4 7.8 8.6 norm FY23E 99.0 101.1 2%
P/E (x) 27.8 12.0 12.8 13.0 14.3 (cents) FY24E 93.9 91.8 -2%
Dividend yield (%) 1.9 5.4 4.3 4.5 4.7 Price target 13.77 13.20 -4%
Rating O/W M/W
Source: Company data, Wilsons estimate, Refinitiv.
All amounts are in Australian Dollar (A$) unless otherwise stated.

Wilsons Equity Research

Analyst(s) who owns shares in the Company: n/a Issued by Wilsons Advisory and Stockbroking Limited (Wilsons) ABN 68 010 529 665 – Australian Financial Services
Licence No 238375, a participant of ASX Group and should be read in conjunction with the disclosures and disclaimer in this report. Important disclosures regarding companies
that are subject of this report and an explanation of recommendations can be found at the end of this document.
26 August 2022 Consumer Discretionary
Eagers Automotive Limited

 Business Description  Investment Thesis

Eagers Automotive (APE) is an automotive dealership group. The core
business provides full facilities including the sale of new and used
vehicles, service, parts and the facilitation of finance and insurance.
Within the broader cyclicality of automotive dealership earnings, we are
attracted to Eagers’ strategic growth drivers – footprint optimisation,
finance penetration, growth in used car market share, and acquisitions.
The balance sheet holds modest levels of corporate net debt,
comfortably backed by freehold property, which provides significant
capacity to fund growth initiatives. However, we view the current share
price as broadly reflecting fair value.

 Catalysts  Risks
Acquisition activity, new vehicle sales growth and investment activity. Retail trading conditions, OEM relationships and go-to-market strategy
and changes to competitive landscape.

P&L ($m) FY20A FY21A FY22E FY23E FY24E Balance sheet ($m) FY20A FY21A FY22E FY23E FY24E
Sales 8,750 8,663 8,332 9,036 9,493 Cash & equivalents 209.1 197.6 161.5 287.6 296.3
EBITDA norm 448.1 597.6 579.7 578.8 560.1 Current receivables 268.9 229.0 250.0 271.1 284.8
EBIT norm 281.8 477.2 470.0 467.3 447.4 Current inventory 1,026 874.0 874.9 1,129 1,424
PBT norm 193.4 407.9 401.1 385.9 353.3 PPE 494.3 514.4 523.1 446.5 368.9
NPAT norm 121.7 280.8 263.2 259.8 235.9 Intangibles 785.6 775.3 886.9 827.4 827.4
NPAT reported 147.4 317.8 287.7 259.8 235.9 Other assets 1,250 1,141 1,071 1,087 1,098
EPS norm (cents) 47.4 109.3 102.4 101.1 91.8 Total assets 4,034 3,731 3,767 4,049 4,299
DPS (cents) 25.0 70.9 57.0 59.0 61.6 Current payables 436.4 364.3 375.0 406.6 427.2
Total debt 1,183 1,007 1,057 1,407 1,707
Growth (%) FY20A FY21A FY22E FY23E FY24E Other liabilities 1,490 1,272 1,147 935.2 782.9
Sales 50.4 (1.0) (3.8) 8.4 5.1 Total liabilities 3,109 2,643 2,579 2,749 2,917
EBITDA norm 174.5 33.4 (3.0) (0.2) (3.2) Minorities 13.9 21.6 0.0 0.0 0.0
NPAT norm 83.0 130.8 (6.3) (1.3) (9.2) Shareholders equity 910.7 1,066 1,188 1,300 1,382
EPS norm (cents) 36.3 130.8 (6.3) (1.3) (9.2)
DPS (cents) (1.0) 183.6 (19.6) 3.5 4.4 Cash flow ($m) FY20A FY21A FY22E FY23E FY24E
Operating cash flow 527.9 302.7 497.4 189.4 133.3
Margins and returns (%) FY20A FY21A FY22E FY23E FY24E Maintenance capex (35.7) 17.5 (113.4) (30.0) (30.0)
EBITDA margin 5.1 6.9 7.0 6.4 5.9 Free cash flow 492.2 320.2 384.0 159.4 103.3
EBIT margin 3.2 5.5 5.6 5.2 4.7 Growth capex 0.0 0.0 0.0 0.0 0.0
PBT margin 2.2 4.7 4.8 4.3 3.7 Acquisitions/disposals 6.2 120.0 (158.6) (93.8) (100.0)
NPAT margin 1.4 3.2 3.2 2.9 2.5 Dividends paid (28.9) (137.2) (165.7) (147.7) (154.1)
ROA 7.0 12.8 12.5 11.5 10.4 Other cash flow (163.3) (183.0) (145.8) (141.8) (140.4)
ROIC 14.8 25.2 22.6 19.3 16.0 Cash flow pre-financing 306.2 120.0 (86.2) (223.8) (291.3)
ROE 13.2 25.8 22.2 20.0 17.1 Funded by equity (22.9) 19.0 0.0 0.0 0.0
Funded by cash/debt (84.7) (7.6) 36.2 (126.2) (8.7)
Interims ($m) 1H21A 2H21A 1H22A 2H22E 1H23E
Sales 4,699 3,964 4,215 4,117 4,570 Liquidity FY20A FY21A FY22E FY23E FY24E
EBITDA norm 321.1 276.4 289.3 290.4 296.5 Cash conversion (%) 157.7 84.2 118.4 69.3 61.6
EBIT norm 256.6 220.6 234.6 235.4 240.9 Net debt ($m) 973.6 809.7 895.9 1,120 1,411
PBT norm 220.4 187.6 201.4 199.7 202.4 Net debt / EBITDA (x) 2.2 1.4 1.5 1.9 2.5
NPAT norm 149.3 131.5 129.9 133.2 136.9 ND / ND + Equity (%) 51.3 42.7 43.0 46.3 50.5
NPAT reported 195.2 122.7 171.0 116.6 136.9 EBIT / Interest expense (x) 3.2 6.9 6.8 5.7 4.8
EPS norm (cents) 58.1 51.2 50.6 51.9 53.3
DPS (cents) 28.4 42.5 22.0 35.0 22.5 Valuation FY20A FY21A FY22E FY23E FY24E
EV / Sales (x) 0.5 0.5 0.5 0.5 0.5
Stock specific FY20A FY21A FY22E FY23E FY24E EV / EBITDA (x) 9.7 7.0 7.4 7.8 8.6
Retailing revenue ($m) 8,748 8,662 8,332 9,036 9,493 EV / EBIT (x) 15.5 8.8 9.1 9.6 10.7
Property revenue ($m) 16.7 32.1 35.3 41.6 42.4 P / E (x) 27.8 12.0 12.8 13.0 14.3
Other revenue ($m) (15.0) (30.7) (35.3) (41.6) (42.4) P / BV (x) 3.7 3.1 2.8 2.6 2.4
Gross margin 17.9 18.7 19.0 18.5 18.0 FCF yield (%) 14.6 9.5 11.4 4.7 3.1
Opex / sales 12.8 11.8 12.0 12.1 12.1 Dividend yield (%) 1.9 5.4 4.3 4.5 4.7
Payout ratio (%) 52.8 64.9 55.6 58.4 67.1
Franking (%) 100.0 100.0 100.0 100.0 100.0
Weighted shares (m) 256.9 256.9 256.9 256.9 256.9

Source: Company data, Wilsons estimate, Refinitiv.

All amounts are in Australian Dollar (A$) unless otherwise stated.

Wilsons Equity Research Page 2

26 August 2022 Consumer Discretionary
Eagers Automotive Limited

1H22 Results Review

Figure 1: Summary of APE’s 1H22 result
Y /E De c, AUD 1 H2 1 A 1 H2 2 Gr owt h WI L S e Va r

Group sales $m 4,699.2 4,215.4 (10.3%) 4,113.9 2.5%

Total EBITDA norm $m 321.1 289.3 (9.9%) 281.4 2.8%

Margin % 6.8% 6.9% n/a 6.8% n/a

EBIT norm $m 256.6 234.6 (8.6%) 226.0 3.8%

Margin % 5.5% 5.6% n/a 5.5% n/a

PBT norm $m 220.4 201.4 (8.6%) 190.9 5.5%

PBT reported $m 267.4 246.5 (7.8%) 220.8 11.7%

NPAT norm $m 149.3 129.9 (13.0%) 130.9 (0.8%)

NPAT reported $m 195.2 171.0 (12.4%) 155.4 10.0%

EPS norm cents 58.1 50.6 (13.0%) 51.0 (0.8%)

DPS cents 28.4 22.0 n/a 25.5 (13.7%)

Operating cash flow $m 204.2 232.6 13.9% 207.4 12.2%

Corporate Net debt / (cash) $m 31.7 12.6 (60.2%) 27.9 (54.9%)

Statutory Net debt / (cash) $m 844.7 730.4 (13.5%) 727.9 0.3%

Source: Company data and Wilsons.

*Figures presented post-AASB16.

 Income Statement

Group sales of $4,215m decreased 10% on pcp, but was 3% above our forecasts. The decline on pcp was driven
by constrained new vehicle supply, Daimler Truck divestment (business sold in Apr-21) and ongoing COVID
related disruptions.

EBITDA norm of $289m decreased 10% on pcp but was 3% above our forecast largely driven by the sales beat as
well as a modest beat on margins (+10bps) on a more favourable mix (i.e higher service).

PBT norm of $201m decreased 9% pcp, was in line with recent guidance, but was 6% above our forecast (noting we
had not updated our forecasts for the recent guidance), driven by the EBITDA beat and modestly lower D&A and net
interest expense.

APE declared an interim dividend of 22.0cps (pcp: 28.4cps, including a an 8,4cps special dividend), but below our
forecast of 25.5cps.

 Cash Flow

Operating cash flow of $233m increased 13% on pcp and was 12% above our forecast, driven by a more favourable
working capital position associated with creditors.

 Balance Sheet

Corporate net debt at $12.6m decreased 60% on pcp and was ~$15m below our forecast driven the higher
operating cash flow and higher investing cash inflow associated with property divestments.

Wilsons Equity Research Page 3

26 August 2022 Consumer Discretionary
Eagers Automotive Limited

Earnings Outlook
 Guidance and Outlook

No explicit earnings guidance, as expected. Eagers expects the current dynamic of demand outstripping supply to
continue in 2H22. The 32% like-for-like growth in the order bank at the end of 1H22 has further increased to August
2022, providing a strong foundation for 2H22 and into 2023.

Eagers will focus on delivering the following key initiatives to drive sustainable growth in earnings:

• Increased productivity from property and people to capitalise on current market conditions.

• Continued investment in scaling its independent pre-owned business, easyauto123, including the roll out
of omni-channel offerings to support an expanded physical footprint.

• Integration of the ACT and South Australian acquisitions (to be completed in 2H22).

• Continue disciplined review of accretive and strategic acquisition opportunities consistent with
the Next100 Strategy and executing greenfield opportunities via existing partnerships and new
market entrants.

 Changes to Our Forecasts

Modest changes to our forecasts. We note the following:

• FY22 sales up 1% reflecting the 1H22 sales beat. FY23/24 down 2-3% reflecting revised assumptions
regarding the duration of new vehicle supply constraints.

• EBITDA upgraded 1-2% in FY22 and FY23 reflecting revised assumptions regarding the duration of new
vehicle supply constraints and FY24 modestly lowered (1%) reflecting margin normalisation.

• PBT upgraded 3-4% in FY22 and FY23 and lowered 1% in FY24 primarily reflecting the EBITDA changes,
along with lower D&A.

• We have revised dividends under an assumption of a 55-65% payout ratio across the forecast period.

Figure 2: Summary of changes to our forecasts

Y /E De c, AUD FY 2 2 E FY 2 3 E FY 2 4 E

Old Ne w % chg Old Ne w % chg Old Ne w % chg

Group sales $m 8,273.1 8,332.5 0.7% 9,296.8 9,035.9 (2.8%) 9,712.5 9,493.0 (2.3%)

Group EBITDA $m 574.0 579.7 1.0% 567.3 578.8 2.0% 567.5 560.1 (1.3%)

PBT $m 390.5 401.1 2.7% 372.9 385.9 3.5% 355.9 353.3 (0.7%)

NPAT norm $m 292.1 287.7 (1.5%) 254.3 259.8 2.2% 241.3 235.9 (2.2%)

EPS norm cents 104.1 102.4 (1.6%) 99.0 101.1 2.2% 93.9 91.8 (2.2%)

DPS cents 70.7 57.0 (19.4%) 65.9 59.0 (10.5%) 62.7 61.6 (1.7%)

Source: Wilsons.
*Figures presented post-AASB16.

Wilsons Equity Research Page 4

26 August 2022 Consumer Discretionary
Eagers Automotive Limited
 Revised Forecasts

Figure 3: Summary of our revised forecasts

Y /E De c, AUD FY 1 8 A FY 1 9 A FY 2 0 A FY 2 1 A FY 2 2 E FY 2 3 E FY 2 4 E FY 2 5 E

New vehicle $m 2,613.2 3,533.5 4,973.5 5,182.2 5,052.7 5,456.9 5,729.7 5,958.9

Used vehicle $m 688.7 1,148.8 2,078.9 1,970.2 1,842.1 2,026.3 2,147.9 2,276.8

Parts $m 502.0 682.4 1,008.4 937.6 881.4 951.9 990.0 1,029.6

Service $m 258.9 417.5 584.0 524.6 508.8 549.5 571.5 594.4

Other $m 35.8 33.8 103.1 47.5 47.5 51.3 53.9 56.0

Retailing $m 4,098.6 5,815.9 8,747.9 8,662.1 8,332.5 9,035.9 9,493.0 9,915.7

Property $m 24.4 21.9 16.7 32.1 35.3 41.6 42.4 43.3

Investments $m 13.9 0.2 0.0 0.0 0.0 0.0 0.0 0.0

Eliminations $m (24.0) (21.0) (15.0) (30.7) (35.3) (41.6) (42.4) (43.3)

Gr oup sa le s $m 4 ,1 1 2 .8 5 ,8 1 7 .0 8 ,7 4 9 .6 8 ,6 6 3 .5 8 ,3 3 2 .5 9 ,0 3 5 .9 9 ,4 9 3 .0 9 ,9 1 5 .7

Growth % 1.3% 41.4% 50.4% (1.0%) (3.8%) 8.4% 5.1% 4.5%

Group gross profit $m 673.2 989.8 1,569.9 1,620.0 1,583.2 1,671.6 1,708.7 1,784.8

Growth % (1.7%) 47.0% 58.6% 3.2% (2.3%) 5.6% 2.2% 4.5%

Margin % 16.4% 17.0% 17.9% 18.7% 19.0% 18.5% 18.0% 18.0%

Group opex $m 505.3 826.5 1,121.8 1,022.4 1,003.4 1,092.9 1,148.7 1,200.3

Growth % (2.9%) 63.6% 35.7% (8.9%) (1.9%) 8.9% 5.1% 4.5%

Margin % 12.3% 14.2% 12.8% 11.8% 12.0% 12.1% 12.1% 12.1%

Gr oup EBI TDA nor m $m 1 6 7 .8 1 6 3 .2 4 4 8 .1 5 9 7 .6 5 7 9 .7 5 7 8 .8 5 6 0 .1 5 8 4 .5

Growth % 2.2% (2.7%) 174.5% 33.4% (3.0%) (0.2%) (3.2%) 4.4%

Margin % 4.1% 2.8% 5.1% 6.9% 7.0% 6.4% 5.9% 5.9%

Depreciation & amortisation $m 15.6 26.6 166.3 120.4 109.7 111.5 112.6 113.8

Growth % (6.1%) 70.3% 524.3% (27.6%) (8.9%) 1.7% 1.0% 1.0%

Group EBIT norm $m 152.2 136.6 281.8 477.2 470.0 467.3 447.4 470.7

Growth % 3.1% (10.3%) 106.3% 69.3% (1.5%) (0.6%) (4.3%) 5.2%

Margin % 3.7% 2.3% 3.2% 5.5% 5.6% 5.2% 4.7% 4.7%

Bailment interest $m 14.6 24.6 22.2 17.0 17.0 22.0 30.8 34.7

Corporate net interest $m 11.9 11.6 66.2 52.2 52.0 59.3 63.2 67.1

Total net interest expense $m 26.5 36.2 88.4 69.2 69.0 81.3 94.1 101.8

Gr oup P BT nor m $m 1 2 5 .7 1 0 0 .4 1 9 3 .4 4 0 7 .9 4 0 1 .1 3 8 5 .9 3 5 3 .3 3 6 8 .9

Growth % 2.2% (20.1%) 92.6% 110.9% (1.7%) (3.8%) (8.4%) 4.4%

Margin % 3.1% 1.7% 2.2% 4.7% 4.8% 4.3% 3.7% 3.7%

Source: Company data and Wilsons.

*Figures presented post-AASB16.

Figure 4: Pre and post AASB-16 earnings

Y /E De c, AUD FY 1 8 A FY 1 9 A FY 2 0 A FY 2 1 A FY 2 2 E FY 2 3 E FY 2 4 E FY 2 5 E

P ost - AAS B1 6

EBITDA $m 167.8 163.2 448.1 597.6 579.7 578.8 560.1 584.5

EBIT $m 152.2 136.6 281.8 477.2 470.0 467.3 447.4 470.7

PBT $m 125.7 100.4 193.4 407.9 401.1 385.9 353.3 368.9

NPAT $m 94.0 66.5 121.7 280.8 263.2 259.8 235.9 246.3

P r e - AAS B1 6

EBITDA $m 284.3 445.0 443.9 447.1 429.6 455.4

EBIT $m 244.5 421.8 424.6 425.0 405.6 429.3

PBT $m 209.4 390.8 391.3 378.9 346.4 362.1

NPAT $m 132.5 268.5 256.4 254.8 231.0 241.4

Source: Company data and Wilsons.

Wilsons Equity Research Page 5

26 August 2022 Consumer Discretionary
Eagers Automotive Limited

Valuation
Our revised 12mth target of $13.20 p/sh (formally $13.77 p/sh) is based on the midpoint of our earnings
capitalisation valuation ($13.85, FY24 adjusted EV/EVBITDA at 9.5x) and DCF valuation ($12.54). The change in
valuation reflects incorporation of a DCF methodology (previously 100% earnings capitalisation). Eagers is currently
trading on a FY24 PER (pre-AASB16) of 15.4x. Eagers trades at a notable premium to ASX-listed peers in Peter
Warren Automotive (PWR.AX) and Autosports Group (ASG.AX).

Figure 5: DCF valuation

Y /E De c, AUD

Cost of ca pit a l Ca lcula t ion

Risk free rate % 3.0 PV of FCF forecast (8 yrs) $m 965.3

Equity risk premium % 6.0 PV of terminal value $m 2,478.4

Beta (unlevered) x 1.2 Ent e r pr ise v a lue $m 3 ,4 4 3 .7

Target gearing (D/D+E) % 20.0 TV as % EV % 72.0

Corporate tax rate % 28.0 Net debt / (cash) $m 221.7

Cost of equity % 10.9 Investments $m 0.0

Cost of debt (pre tax) % 7.0 Equit y v a lue $m 3 ,2 2 1 .9

WACC (pre tax) % 10.1 SOI (fully diluted) m 256.9

WACC (post tax) % 9 .7 Equit y v a lue p/sha r e $ 1 2 .5 4

Source: Wilsons.

Figure 6: Earnings capitalization valuation

Y /E De c, AUD FY 2 0 A FY 2 1 A FY 2 2 E FY 2 3 E FY 2 4 E

Wilsons v a lua t ion

EBITDA norm $m 448.1 597.6 579.7 578.8 560.1

- less bailment interest $m (22.2) (17.0) (17.0) (22.0) (30.8)

- less other $m (163.8) (152.6) (135.8) (131.7) (130.4)

Adjust e d EBI TDA nor m $m 2 6 2 .1 4 2 8 .0 4 2 6 .9 4 2 5 .0 3 9 8 .8

Multiple x 9.5x 9.5x 9.5x 9.5x 9.5x

Enterprise value $m 2,489.8 4,065.6 4,055.9 4,037.6 3,788.5

- less corporate net (debt) / cash $m (129.3) (128.7) (171.9) (221.7) (229.4)

- add other $m 0.0 0.0 0.0 0.0 0.0

Equit y v a lue $m 2 ,3 6 0 .5 3 ,9 3 6 .9 3 ,8 8 3 .9 3 ,8 1 5 .9 3 ,5 5 9 .1

Equit y v a lue p/sha r e $ 9 .1 9 1 5 .3 2 1 5 .1 2 1 4 .8 5 1 3 .8 5

- implied PER (pre-AASB16) x 17.8x 14.6x 15.2x 15.0x 15.4x

Source: Wilsons

Figure 7: APE 12m forward PER (x) Figure 8: Peer group 12m forward PER (x)
35 35.6
19
30 18 30.6
17
25.6
25 16
15 20.6
20
14
15.6
13
15
12 10.6
10 11
5.6
10
5 9 0.6
Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-18
Jan-18 Jul-18Jul-18
Jan-19Jan-19
Jul-19 Jul-19
Jan-20 Jan-20
Jul-20 Jul-20
Jan-21 Jan-21
Jul-21 Jul-21
Jan-22 Jan-22
Jul-22 Jul-22
APE.AX Average (x) APE.AX
RIC.AX ASG.AX(x)
Average PWR.AX

Source: Refinitiv. Source: Refinitiv.

Wilsons Equity Research Page 6

26 August 2022 Consumer Discretionary
Eagers Automotive Limited

Disclaimers and Disclosures

| Recommendation structure and other definitions

Definitions at wilsonsadvisory.com.au/disclosures.

| Analyst certification

Each analyst of Wilsons Advisory and Stockbroking Limited (ACN 010 529 665: AFSL 238375) (“Wilsons”) whose name appears in this research
certifies that (1) the recommendations and opinions expressed in this research accurately reflect the analyst’s personal, independent and objective views
about any and all of the subject securities or issuers; (2) no part of the analyst’s compensation was, is, or will be, directly or indirectly, related to the
specific recommendations or views expressed by the analyst in the research; and (3) to the best of the analyst’s knowledge, he/she is not in receipt of
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