Inchcape (INCH) Investor Update summary

Strategic Overview and Growth Ambition

• Accelerate Plus strategy aims to solidify global leadership in automotive distribution, focusing on scaling, optimizing operations, and sustainable, profitable growth.

• Ambition to reach 10%+ market share in target markets, which would triple business size and represents a revenue ambition of ~£32bn.

• Growth to be driven by organic expansion, deepening OEM partnerships, contract wins, targeted acquisitions, and expanding into new and adjacent markets.

• Technology platforms (DXP, DAP), value-added services, and data capabilities are central to enhancing customer experience and operational efficiency.

• Sustainability and high-performance culture underpin the strategy, with ongoing reductions in emissions and focus on talent retention.

APAC Region Focus and Opportunities

• APAC is a high-growth region with strong GDP, low motorization rates, and increasing car ownership, offering significant upside.

• APAC represents 32% of group revenue, spans 11 markets, 23 OEM brands, and employs c.4,000 people, with operating margins averaging above 8%.

• Ambition to double the APAC business by scaling in existing and new markets, leveraging contract wins, M&A, and digital platforms.

• Recent expansion includes 14 contract wins/acquisitions since 2020 in markets like the Philippines, New Zealand, and Indonesia, with a focus on cultural integration and local expertise.

• Indonesia and the Philippines identified as major new growth markets, targeting market share growth from under 1% in 2024.

Value-Added Services and Technology

• Value-added services include parts distribution, finance & insurance, new energy vehicle services, and used car business, aiming to increase revenue per customer.

• Digital Parts Platform and omnichannel customer platforms drive parts sales, customer retention, and operational excellence, with double-digit growth in purchase value.

• DXP and DAP platforms enable personalized, omnichannel customer journeys and data-driven decision-making, improving conversion rates and satisfaction.

• After-sales and F&I are major contributors to gross profit, with after-sales accounting for about a third of group gross profit.

• No specific financial targets for VAS, but it is integral to margin resilience and growth.