Inchcape (INCH) Investor presentation summary

Medium-term investment case

• Target >10% EPS CAGR to 2030, plus dividends; through-cycle 2025-30 targets include 25%-30% ROCE.

• 230 Distribution contracts across c.40 markets, backed by a diversified OEM portfolio, technology capabilities and scaled geographic footprint.

• Scale and optimise strategy includes 8 acquisitions since 2019, c.£750m raised from non-core disposals since 2019, portfolio rationalisation and Value Added Services development.

Growth opportunity

• Organic volume CAGR target of 3%-5%, comprising 1%-2% market growth and 2%-3% market outperformance; value-accretive M&A is an additional growth driver.

• TAM of 10.8m vehicles and ~£325bn; current share 3% and revenue ~£9.7bn, with ambition for 10% share and ~£32bn revenue across 25 markets where share is <10%.

• Distribution revenue grew from £3.4bn in 2016 to £9.3bn in 2024, while volumes rose from 150k to 340k.

Operating resilience and technology

• Through-cycle operating margin target c.6%; Distribution gross margin 15%-18% and adjusted operating margin 5%-7%.

• Vehicles contribute c.85% of revenue at 10%-15% gross margin; Parts contribute c.15% at 40%-45% gross margin.

• Technology examples include c.£200m lower Derco inventory, c.60%+ fewer air-freight orders in the Americas, c.50% higher order take from digital leads and c.30% higher F&I commission in Singapore.