Business SummaryAutomotive Holdings Group Limited (AHG) is a diversified automotive retailand logistics group with operations in Australian mainland states and in NewZealand. The Company operates its automotive retailer business in Australiathrough its subsidiaries, with operations in Western Australia, New SouthWales, Queensland and Victoria.

Automotive Retail: The business has passenger vehicle and bus and truckdealership operations in Queensland, New South Wales, Victoria andWestern Australia and passenger vehicle dealerships in New Zealand.Passenger brands include Alfa Romeo, Audi, Bentley, Chrysler, Citroen,Dodge, Fiat, Ford, FPV, Holden, HSV, Hyundai, Infiniti, Isuzu UTE, Jaguar,Jeep, Kia, Land Rover, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Peugeot,Porsche, Skoda, Subaru, Suzuki, Toyota, Volkswagen. Fiat Professional,Freightliner, Fuso, Higer, Hino, Iveco, LDV, Mercedes-Benz, Mercedes-BenzVans, Rosa, Volkswagen Commercial, Yutong. The automotive segment has180 motor vehicle franchises at 111 dealership locations operating within thegeographical areas of Australia and New Zealand.

Logistics: AHG operates logistics businesses throughout Australia viasubsidiaries - RAND Transport, Harris Refrigerated Transport, Scott'sRefrigerated Freightways and JAT Refrigerated Road Services (transport andcold storage), AMCAP, VSE (vehicle storage and engineering), GenuineTruck Bodies (body building services to the truck industry), KTMSportmotorcycles and HQVA (KTM and Husqvarna motorcycle importationand distribution in Australia and New Zealand).

Property: The property segment comprises AHG's direct property interests inland and buildings. AHG has acquired small property interests across Victoriaand Queensland, either arising from prior acquisitions or future Greenfieldopportunities.

Latest ResearchAccept the offer

The FY19 result was messy with Refrigerated Logistics (RL) now classifiedas a discontinued operation given the Board has committed to sell thebusiness. There were also additional write-offs in RL following the reviewof the carrying value of

receivables. This made the reported result incomparable with ourforecasts. Had RL, however, been included in continuing operations thenOperating NPAT would have been $48.6m which was slightly below ourforecast of $49.8m and also the guidance from May of $50m. There wasno final dividend whereas we had forecast one of 4.0c.

For more information see research 29 Aug 2019.

GICS - Retailing

Automotive Holdings Group Limited

ASX Code: AHG Price: $3.68 12 Mth Target Price: $3.00 Rating: Hold

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Snapshot

DateMarket Cap.Shares on issue12 Month High12 Month Low

2 October 2019$1,221m331.9m$3.83$1.39

RatingRating12 Mth Target Price

Capital GainGross Yield

Implied Total Return

Hold$3.00NA%NA%NA%

Investment FundamentalsFYE 30 Jun 2019A 2020F 2021F 2022F

Profit $m -125.7 50.8 54.1 58.5Profit (norm)* $m -125.7 50.8 54.1 58.5

EPS* ¢ -37.9 15.3 16.3 17.6EPS Growth % 0.0 0.0 6.6 8.0P/E* x 0.0 0.0 0.0 0.0P/E Relative % 0.0 0.0 0.0 0.0

DPS ¢ 0.0 4.0 5.0 6.0Yield % 0.0 0.0 0.0 0.0Franking % 0.0 100.0 100.0 100.0* Adjusted for goodwill and unusual itemsSource: Based on Bell Potter estimates

Share Price Chart

Total Return on $10,000 Investment

Profit & Loss ($M)2015A 2016A 2017A 2018A 2019A

Sales Revenue 5,202 5,599 6,060 6,436 5,875Total Revenue ex. Int. 5,243 5,626 6,080 6,473 5,917EBITDA 216 229 221 199 296Depreciation & Amort. -41 -43 -47 -53 -37Goodwill Amortisation -- -- -- -- --EBIT 175 185 174 147 259Net Interest -34 -37 -39 -43 -46Profit Before Tax 142 149 135 104 213Income Tax -41 -40 -29 -15 -5Outside Equity Int. -6 -7 -6 -5 -4Profit after Tax 94 102 100 84 97Significant Items after Tax -6 -11 -45 -51 -329Reported Profit after Tax 88 90 56 33 -233Preferred Dividends -- -- -- -- --

Cash Flow ($M)2015A 2016A 2017A 2018A 2019A

Receipts from Customers 5,751 6,166 6,654 7,060 7,132Funds from Operations 186 217 211 209 179Net Operating Cashflow 113 140 141 147 108Capex -98 -114 -102 -80 -41Acquisitions & Investments -75 -76 -78 -31 -1Sale of Invest. & Subsid. -- 27 14 5 --Net Investing Cashflow -156 -108 -143 -86 -19Proceeds from Issues -- -- 112 -- --Dividends Paid -71 -75 -81 -68 -28Net Financing Cashflow 13 7 -11 -83 -68Net Increase Cash -30 39 -14 -22 21Cash at Beginning 99 70 109 95 73Exchange Rate Adjust. -- -- -- -- --Cash at End 70 109 95 73 95

Ratios and Substantial Shareholders2015A 2016A 2017A 2018A 2019A

Profitability RatiosEBITDA Margin % 4.15 4.08 3.64 3.10 5.03EBIT Margin % 3.37 3.31 2.87 2.28 4.40Net Profit Margin % 1.81 1.81 1.65 1.31 3.46Return on Equity % 14.01 14.62 12.73 11.12 41.73Return on Assets % 6.19 5.98 5.45 4.40 9.86

Debt/Safety RatiosNet Debt/Equity % 116.88 136.97 130.55 163.94 215.66Interest Cover x 5.22 5.06 4.43 3.41 5.63

Top 5 Substantial ShareholdersA.P. Eagers Ltd and its associated entities 92.8%W F M Motors Pty Ltd 92.8%Perpetual Limited and subsidiaries 9.2%Dimensional Entities 5.0%

Balance Sheet ($M)2015A 2016A 2017A 2018A 2019A

Cash & Equivalent 70 109 95 73 81Receivables 319 334 357 417 271Inventories 732 828 900 1,111 1,005Other Current Assets 29 35 50 26 13Current Assets 1,150 1,305 1,402 1,645 1,797Prop. Plant & Equipment 349 359 401 377 219Intangibles 392 462 513 539 312Other Non-Current Assets 29 35 50 26 37Non-Current Assets 807 887 983 993 630Total Assets 1,957 2,191 2,385 2,638 2,426Interest Bearing Debt 883 1,094 1,142 1,346 1,174Other Liabilities 378 378 441 515 746Total Liabilities 1,261 1,472 1,583 1,862 1,920Net Assets 696 720 802 777 507Share Capital 542 542 653 653 653Reserves 2 3 3 2 5Retained Earnings 129 150 131 101 -170Outside Equity Int. 23 25 15 20 19Total Shareholders Equity 696 720 802 777 507

Current Analyst Recommendations *

* Source: Morningstar. This chart shows the spread of recommendations from thosebroker analyst's in Australia with research coverage of this stock.

Principals & DirectorsPrincipals

Directors

Mr Richard Anthony Fountayne England(Non-ExecutiveChairman,Non-Executive Director)Mr Gregory (Greg) James Duncan(Non-Executive Director)Ms Jane Matisse McKellar(Non-Executive Director)Mr Giovanni (John) Groppoli(Non-Executive Director)Ms Andrea Hall(Non-Executive Director)Mr Howard John Critchley(Non-Executive Director)Mr David Blackhall(Non-Executive Director)

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Automotive Holdings Group Limited

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