Inchcape (INCH) Investor Update summary

Strategic evolution and growth ambition

• Accelerate Plus strategy targets over 10% market share in key markets, focusing on scaling, operational efficiency, and customer value.

• Growth is driven by organic expansion, new OEM contracts, M&A, and disciplined capital allocation, with a robust pipeline and share buybacks.

• Technology platforms and data analytics (DXP, DAP, Digital Parts Platform) enhance customer experience, decision-making, and operational excellence.

• Value-added services, including parts, finance & insurance, used cars, and NEV offerings, are prioritized to increase revenue per customer and margin resilience.

• Sustainability is integral, with ongoing carbon reduction, renewable energy adoption, and support for the mobility transition.

APAC region growth and operational highlights

• APAC is a high-potential region, representing 32% of group revenue, with strong GDP growth, low motorization rates, and growing car parc.

• The business operates in 11 APAC markets, distributing 90,000 vehicles annually, with c.4,000 employees and 23 OEM brands.

• Ambition to double the APAC business by scaling in existing and new markets, leveraging contract wins, M&A, and recent entries in Indonesia and the Philippines.

• Technology and data capabilities, including omnichannel platforms, drive contract wins, customer engagement, and double-digit growth in parts sales.

• Recent momentum includes 14 contract wins/acquisitions since 2020 and improved efficiencies through technology.

Financial and margin dynamics

• Margins improve with scale, with APAC margins consistently above 8% and group operating margins at 5–7%, supported by high-margin, vertically integrated businesses.

• Value-added services contribute about a third of group gross profit, with F&I and parts as major drivers; no specific financial targets are set for VAS.

• M&A is a major growth lever, with a structured approach to deal selection, due diligence, and integration, emphasizing cultural fit and OEM support.

• Consistent revenue growth and high ROCE (~25%) underpin financial strength.