ANNUAL GENERAL MEETING 5 June 2019 IMPORTANT INFORMATION This - - PowerPoint PPT Presentation
ANNUAL GENERAL MEETING 5 June 2019 IMPORTANT INFORMATION This - - PowerPoint PPT Presentation
ANNUAL GENERAL MEETING 5 June 2019 IMPORTANT INFORMATION This presentation contains forward -looking statements which are prospective in nature and are not based on historical facts, but rather on current expectations and projections
IMPORTANT INFORMATION
This presentation contains “forward-looking statements” which are prospective in nature and are not based on historical facts, but rather on current expectations and projections about future events. Such statements are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of forward-looking words such as “plans”, “expects” or “does not expect”, “is expected”, “is subject to”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements, including business, economic and regulatory changes as well as the risks set out in the Company’s annual report and accounts, which can be found on its website (www.theaaplc.com/investors). Such forward-looking statements should therefore be construed in the light of such factors. Neither the Company, nor any of its associates or directors, officers or advisers, provides any representation, assurance or guarantee that the events expressed or implied in any forward- looking statements in this announcement will actually occur. You are cautioned not to place undue reliance on these forward-looking
- statements. Other than in accordance with its legal or regulatory obligations (including under the Market Abuse Regulation, the Listing Rules
and the Disclosure Guidance and Transparency Rules), the Company is not under any obligation to update, revise or correct any forward- looking statements, whether as a result of new information, future events or otherwise. No statement in this presentation should be construed as a profit forecast or relied upon as a guide to future performance.
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INTRODUCTION
AGENDA
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Introduction Business performance and outlook Annual General Meeting voting
BOARD OF DIRECTORS AND COMPANY SECRETARY
Suzi Williams Non-Executive Director Cathryn Riley Non-Executive Director Steve Barber Non-Executive Director Mark Brooker Non-Executive Director John Leach Chairman Simon Breakwell Chief Executive Officer Andrew Blowers Senior Independent Director Nadia Hoosen Chief Legal Officer and Company Secretary (Board support) 4
AA INVESTMENT HIGHLIGHTS
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One of the UK’s most trusted commercial brands Market leadership position High recurring revenue with strong cash generation Excellent standards of service delivery Partner of choice for B2B customers Mature market with significant barriers to entry
FY19 REVIEW
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Solid operational progress across key strategic initiatives in Roadside and Insurance Successful renewal or extension of all targeted B2B contracts including LBG; new contract win with Arval and JLR mobility Continued strong cash conversion S&P ratings reaffirmed; effective maturity of debt extended to 2022 Well positioned to execute our strategy and deliver our medium-term growth targets Putting service, innovation and data at the heart of the AA
BUSINESS PERFORMANCE AND OUTLOOK
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DELIVERING OUR STRATEGIC PLAN – ONE YEAR IN
8 Roll-Out and Scale Innovation New AA marketing Membership stabilisation New product launches into the base New B2B service and product investments Continued insurance investment and growth Continued employment engagement improvements FY20/21 Accelerate Growth via Differentiation Roadside membership growth Insurance EBITDA growth Further new product innovations New B2B services embedded Improved business and
- perational efficiencies
Highly engaged and performing company FY21/22 Invest in Foundations New strategy New management team New brand marketing campaign Insurance growth acceleration Service resilience improvements IT stabilisation People engagement improvements FY19
OUR SERVICE EXCELLENCE IS OUR BEDROCK – WHICH? 2018 REVIEW
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Sources: Which? Recommended Breakdown Provider June 2018 Notes: (1) Overall Which? score relating to carmaker-branded cover
75 72 69 78 66 66 THIRD-PARTY COVER OVERALL SCORE
2014 2018 2014 2018 2014 2018
Green Flag
REPAIRED AT THE ROADSIDE
Green Flag
91% (1st ) 84% (2nd) 80% (3rd) 73% (4th) 72% (5th)
TOP 5 OEM-BRANDED COVER PROVIDED BY AA1
WE ARE THE PARTNER OF CHOICE FOR THE AUTOMOTIVE INDUSTRY
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Car Manufacturers Fleet & Leasing Companies Financial Institutions & Partnerships
0–5 5–10 >10
SELECTED B2B CLIENT BASE BY LENGTH OF RELATIONSHIP AND TYPE OF CUSTOMER
- No. of years
AA customer
MOVING BEYOND BREAKDOWN THROUGH SMART INNOVATION
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SMART BREAKDOWN ONWARD MOBILITY SERVICE MAINTENANCE AND REPAIR
Remote Resolution Opportunity
REMOTE RESOLUTIONS DIGITAL REPORTING
ADDITIONAL ONLINE DIGITAL JOURNEYS VIA THEAA.COM TODAY WE HAVE BREAKDOWNS VIA THE AA APP DIGITAL OPTIONS VIA VOICE CHANNELS Today Q1 2019 Q2-Q3 2019
DELIVERING INSURANCE GROWTH Drive more competitive premiums Broaden underwriting footprint New Insurance Innovation
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VISION FOR THE AA
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DELIVERY TARGETS FOR FY20
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EBITDA growth Greatly improved free cash flow generation of c£80m in FY20 New products and services across Roadside and Insurance New marketing and branding campaign to be launched this year Insurance books growing B2C membership stabilising Further and continuous operational efficiencies rooted in maintaining service excellence Further employee engagement improvement Putting service, innovation and data at the heart of the AA
QUESTIONS
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Before asking your question, please give your name and state whether you are a shareholder, proxy or corporate representative. If you are a proxy or corporate representative, please state your name and the name of the shareholder you are representing.
AGM VOTING
PROXY VOTES RECEIVED PRIOR TO MEETING
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Resolution % Votes For & Discretionary % Votes Against % Issued Share Capital Voted (including withheld)
1. Report and Accounts 100.00% 0.00% 77.28% 2. Directors’ Remuneration Report 88.15% 11.85% 77.28% 3. Final Dividend 100.00% 0.00% 77.28% 4. Elect Mark Brooker 100.00% 0.00% 77.28% 5. Elect Steve Barber 100.00% 0.00% 77.28% 6. Re-elect John Leach 99.95% 0.05% 77.28% 7. Re-elect Simon Breakwell 99.99% 0.01% 77.28% 8. Re-elect Andrew Blowers 99.84% 0.16% 77.28% 9. Re-elect Cathryn Riley 100.00% 0.00% 77.28% 10. Re-elect Suzi Williams 97.26% 2.74% 77.28%
PROXY VOTES RECEIVED PRIOR TO MEETING (CONTINUED)
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Resolution % Votes For & Discretionary % Votes Against % Issued Share Capital Voted (including withheld)
11. Appointment of the Auditor 100.00% 0.00% 77.28% 12. Remuneration of the Auditor 99.99% 0.01% 77.28% 13. Political Donations 97.22% 2.78% 77.28% 14. Authority to Allot Shares 97.24% 2.76% 77.28% 15. Authority to Allot Further Shares 56.25% 43.75% 77.28% 16. Disapplication of Pre-Emption Rights* 97.27% 2.73% 77.28% 17. Authority to Purchase own Shares* 99.75% 0.25% 77.28% 18. Reduced Notice for General Meetings (other than Annual General Meetings)* 98.69% 1.31% 77.28% * Special resolution