DISCLAIMER A Diversified Transportation Services Company Headquartered in Bloomfield Hills, MI USA Diversified business mix provides multiple opportunities for growth Cars, Best Value COMPANY OVERVIEW commercial vehicle, power system & parts distribution locations Retail automotive segment focused on Premium/Luxury brands which generate more than 70% of automotive revenue Capital allocation focused on acquisitions, cash dividends, and securities repurchases Record first quarter revenue; increased 5% 7 7 Sam ...

Penske Automotive Group, Inc. (NYSE:PAG) Q1 2023 Earnings Conference Call April 26, 2023 2:00 PM ET Company Participants Anthony Pordon - Investor Relations Roger Penske - Chairman and Chief Executive Officer Shelley Hulgrave - Executive Vice President and Chief Financial Officer Tony Facione - Vice President and Corporate Controller Conference Call Participants John Murphy - Bank of America Daniel Imbro - Stephens Mike Ward - Benchmark Rajat Gupta - JPMorgan David Whiston - Morningstar Operator Good aftern ...

Revenue and Sales Performance - In 2022, the company generated total revenue of $27.8 billion, with $23.7 billion from retail automotive dealerships, $3.5 billion from retail commercial truck dealerships, and $578.8 million from commercial vehicle distribution and other operations[14]. - The retail automotive segment represented 85.2% of total revenues and 85.3% of total gross profit in 2022, with 71% of revenue coming from premium brands[17]. - The company retailed and wholesaled over 539,000 vehicles in 2022, with 338 retail automotive franchised dealerships operating globally[15][17]. - In 2022, the retail commercial truck business accounted for 12.7% of total revenues, with 21,002 new and used trucks sold[19]. - The North American sales of Class 6-8 medium- and heavy-duty trucks increased by 12.1% in 2022, totaling 448,723 units sold[28]. - In 2022, the company retailed 185,831 new vehicles, generating 42.4% of retail automotive dealership revenue and 30.2% of gross profit[57]. - The company retailed 261,739 used vehicles in 2022, contributing 38.0% of retail automotive dealership revenue and 13.2% of gross profit[58]. - Finance and insurance sales accounted for 3.6% of retail automotive dealership revenue and 20.6% of gross profit in 2022[59]. - Service and parts sales represented 10.2% of retail automotive dealership revenue and 34.9% of gross profit in 2022[62]. - Approximately 23.4% of new vehicles sold in the U.S. and U.K. in 2022 were either pure electric or hybrid electric vehicles[52]. - The U.S. retail automotive dealership revenues are primarily derived from 49% new vehicle sales, 40% used vehicle sales, and 11% service and parts sales[82]. - In 2022, revenue from BMW/MINI, Audi/Volkswagen/Porsche/Bentley, Toyota/Lexus, and Mercedes-Benz/Sprinter/smart dealerships accounted for 26%, 21%, 14%, and 10% of total automotive dealership revenues, respectively[142]. Acquisitions and Expansion - The company acquired 19 retail automotive franchises in 2022, including 15 in the U.K. and four in the U.S.[17]. - The company operates 338 retail automotive franchises worldwide as of December 31, 2022[56]. - The company has 21 CarShop used vehicle dealerships, with 8 located in the U.S. and 13 in the U.K.[57]. - The company has diversified revenue streams across traditional vehicle and commercial truck dealerships, finance and insurance, and service and parts operations[40]. Financial Performance and Dividends - The quarterly stock dividend was increased four times in 2022 from $0.46 to $0.57 per share, with a latest declared dividend of $0.61 per share payable on March 1, 2023[34]. - The company recorded $490 million in equity earnings from its investment in Penske Truck Leasing in 2022, up from $365.8 million in 2021[24]. - The company has significant financial commitments, including $3.0 billion in floor plan notes payable, $1.6 billion in non-vehicle long-term debt, and $5.4 billion in future lease commitments[167]. - The company has a cash dividend of $0.61 per share announced for payment on March 1, 2023, with expectations to continue comparable dividends in the future[203]. Market Trends and Competition - The company faces increased competition from online vehicle websites and other dealership groups, impacting new and used vehicle sales[119]. - The company competes in a fragmented used vehicle market, selling approximately 36.2 million units annually in the U.S.[116]. - The franchised automotive dealer industry in the U.S. is valued at approximately $1.2 trillion, with public automotive retail groups accounting for less than 10% of total industry revenue[83]. - The company faces competition from various channels, including direct sales by manufacturers and independent used vehicle dealers[115]. - The company competes with various logistics providers and seeks to integrate its logistics services with its full-service truck leasing and rental business[123]. Operational and Regulatory Risks - The company is subject to numerous environmental laws and regulations, which may require significant capital and operating expenditures[130]. - The company is exposed to risks related to regulatory compliance, particularly with new FTC regulations that may complicate vehicle sales transactions[129]. - The company faces risks from regulatory changes regarding zero-emission vehicles, which could increase costs and affect demand for its services[153]. - The company is subject to various legal and regulatory risks that could adversely affect operations, including potential changes in franchise laws[183]. - Climate change and environmental regulations may lead to increased operational costs and stricter compliance requirements in the future[186]. Employee and Corporate Culture - As of December 31, 2022, the company employed over 26,500 people, reflecting a 7.4% increase from December 31, 2021[125]. - The company maintains an employee turnover rate of approximately 21%, which is below the industry average[127]. - The company believes its inclusive culture enhances its ability to attract and retain talent, which is crucial for delivering exceptional customer service[124]. Cybersecurity and Information Systems - The company has implemented a comprehensive Information Security Program, including annual cybersecurity risk assessments to evaluate risks and their potential impacts[95]. - The company employs multi-layered preventive controls, such as web and cloud application firewalls, to detect and block cyber-attacks[96]. - The company relies heavily on centralized information systems for operations, and any failure or disruption could adversely affect business operations and sales[194]. - Cybersecurity threats pose significant risks to the company, with potential impacts on operations, sales, and reputation due to data breaches or cyber-attacks[195]. Future Outlook and Challenges - The company expects increased new vehicle availability in 2023, but ongoing production disruptions and supply shortages may suppress sales volumes[145]. - The company anticipates that increasing consumer adoption of electric vehicles may present new service opportunities but could also lead to a decline in service revenues over time[134]. - The impact of driverless vehicles on sales and service levels remains uncertain, with potential significant effects on the automotive retail and trucking industries[164]. - The company faces risks from potential tariffs and trade restrictions that may affect the profitability of selling foreign vehicles[182].

Financial Data and Key Metrics Changes - The company reported a record revenue increase of 11% to $7 billion in Q4 2022, with earnings per share rising 6% to $4.21 [19] - For the full year 2022, revenue increased by 9% to nearly $28 billion, and earnings before taxes rose 16% to $1.9 billion [18] - The company repurchased approximately 2.5 million shares for $284 million during Q4 2022, totaling $887 million for the year, representing 11% of shares outstanding at the beginning of 2022 [25][19] Business Line Data and Key Metrics Changes - Retail automotive revenue increased by 4%, and when excluding foreign exchange effects, it rose by 10% [6] - CarShop unit sales increased by 12% to 71,242 units, with revenue rising 16% to $1.7 billion, although variable gross profit per unit declined by 19% [7] - Service and parts revenue increased by 6%, and when excluding foreign exchange, it increased by 11% [21] Market Data and Key Metrics Changes - The company’s forward order bank in the U.K. is 23% higher than the previous year, representing 31,800 units or GBP 100 million of forward gross profit [20] - Used vehicle inventory had a 53-day supply, while new vehicle inventory had a 25-day supply [26] Company Strategy and Development Direction - The company aims to leverage artificial intelligence to improve operational efficiencies and reduce costs [28] - The focus remains on disciplined capital allocation, with a target of 5% growth through acquisitions and organic growth [45] - The company is committed to increasing its Penske Transportation Solutions fleet from over 414,000 units to 500,000 by 2025 [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for premium vehicles despite supply constraints expected to continue into 2023 [5] - The company anticipates that the current business environment for leasing, maintenance, and logistics will remain strong in 2023 [9] - Management noted that affordability issues have not significantly impacted premium customers, who continue to show strong demand [34] Other Important Information - The company’s long-term debt was reported at $1.6 billion, with 35% fixed debt and an average interest rate of 3.8% [12] - The company has $107 million in cash and over $1.1 billion in liquidity, indicating a strong balance sheet [27] Q&A Session Summary Question: What is the outlook for consumer demand in 2023? - Management noted that demand for new vehicles remains strong, particularly in the premium luxury segment, and inventory turnover is quick [33] Question: How is the company managing SG&A expenses? - SG&A expenses increased due to higher compensation in the U.K., but management is focused on operational efficiencies and AI to reduce costs [38][64] Question: How did the company achieve sales growth despite supply constraints? - The company benefited from a strong mix of premium luxury vehicles and a favorable market environment in the U.K. [42] Question: What are the priorities for excess cash in 2023? - The company plans to maintain a balanced approach between shareholder returns and growth investments, with a focus on selective acquisitions [45][46] Question: How does the company view the truck business compared to light vehicles? - Management indicated that truck acquisitions have lower CapEx requirements and are currently more attractive due to lower multiples compared to light vehicles [92]

Financial Data and Key Metrics Changes - Revenue increased 7% to $6.9 billion, while EBT decreased 2% to $467 million and net income declined 4% to $340 million, with earnings per share increasing 3% to $4.61 [8] - Excluding foreign exchange impacts, revenue increased 12% to $7.3 billion, EBT increased 1% to $481 million, net income decreased 1% to $351 million, and earnings per share increased 7% to $4.75 [9] - Year-to-date EBITDA reached $1.6 billion, a 21% increase compared to the same period last year, with trailing 12-month EBITDA at $2.1 billion [19] Business Line Data and Key Metrics Changes - Retail Automotive operations saw new units decline 6% due to supply constraints, while used units declined 11% due to challenges in acquiring affordable inventory [10][11] - Retail automotive revenue declined 3%, but increased 4% when excluding FX, with variable gross profit per unit increasing $70 to $5,830 [12] - CarShop unit sales were 16,400 with revenue of $380 million, but profitability was impacted by vehicle acquisition prices and reconditioning costs [13] - Retail Commercial Truck dealership business saw total unit sales increase 25% to 6,031, with revenue increasing 42% to $1 billion and gross profit increasing 21% to $140 million [14] Market Data and Key Metrics Changes - In the U.K., the forward order bank is over 60% higher than the previous year, representing 36,000 units and $101 million in gross profit [11] - Penske Transportation Solutions (PTS) revenue increased 19% to $3.5 billion, with profit increasing 15% to a record $468 million [17] Company Strategy and Development Direction - The company is focused on operational efficiencies and has implemented AI to improve customer interactions and streamline processes [27][90] - Sustainability initiatives include building infrastructure for electric vehicles and installing over 1,500 charging stations [30] - The company plans to maintain a balanced capital allocation strategy, focusing on growth and shareholder returns [96] Management's Comments on Operating Environment and Future Outlook - Management expects supply constraints to persist for the next 9 to 12 months, but demand for new vehicles remains strong [11] - The company is confident in its diversified business model and ability to manage macro challenges [25] - Management remains optimistic about the premium luxury market, with strong pre-orders and minimal cancellations [52] Other Important Information - The company repurchased 2.8 million shares for $309 million in Q3, with a total of $675 million in share repurchases year-to-date [21] - The quarterly dividend was increased by 24% to $0.57 per share, with $114 million paid in dividends through September 30 [22] Q&A Session All Questions and Answers Question: What is the outlook on new vehicle grosses? - Management indicated that new vehicle grosses have remained high due to tight inventory and strong demand, with expectations for this to continue for the next 6 to 12 months [35][40] Question: How does the company view the used vehicle market? - Management acknowledged challenges in the used vehicle market due to a shortage of affordable inventory and indicated a focus on technology to improve customer engagement and sales [41][47] Question: Can you discuss the recent acquisition in the U.K.? - The acquisition of five Mercedes-Benz dealerships and three service centers is expected to generate $550 million in revenue and fits well within the company's existing operations [57][60] Question: What are the risks associated with proposed F&I legislation? - Management supports the elimination of unfair practices but noted uncertainty regarding the impact of proposed rules on the business [73][75] Question: What is the current state of SG&A and productivity? - SG&A is expected to normalize between 70% and 72%, with improvements in sales force productivity driven by AI and automation initiatives [81][83]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-12297 Penske Automotive Group, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of i ...

Financial Data and Key Metrics Changes - Revenue for Q2 2022 was $6.9 billion, a decline of 1% year-over-year, impacted by foreign exchange losses of $245 million; excluding FX, revenue increased by 2% [8] - Earnings before taxes increased by 8% to $500 million, net income from continuing operations rose by 10% to $374 million, and earnings per share increased by 17% to $4.93; excluding FX, EBT was up 10% to $511 million [9] Business Line Data and Key Metrics Changes - Retail automotive operations saw a 17% decline in total unit sales due to supply constraints; automotive revenue declined by 8%, but gross profit only decreased by 3% [10] - CarShop unit sales increased by 7% to 20,000 units, with revenue rising by 15% to $468 million; however, same-store variable gross profit per unit retail decreased to $2,145 from $2,714 year-over-year [11] - The retail commercial truck dealership business experienced a 23% increase in revenue to $769 million, with unit sales rising to 4,174 units [13] Market Data and Key Metrics Changes - Penske Transportation Solutions (PTS) reported a 20% increase in revenue to $3.3 billion, with profit rising by 33% to $472 million; equity earnings increased by $34 million to $137 million year-to-date [15] - New vehicle supply in the US is at 12 days, while used vehicle inventory has a 42-day supply [22][23] Company Strategy and Development Direction - The company is focused on sustainability initiatives, including electrification and the installation of over 1,300 charging stations across its network [27][28] - The company has completed acquisitions and new open points representing $745 million in annual revenue, with plans to acquire five Mercedes-Benz dealerships in the UK expected to generate approximately $550 million in revenue for 2022 [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for vehicles despite supply constraints and expects current supply challenges to persist for the next nine to twelve months [23] - The company aims to maintain a disciplined capital allocation strategy, focusing on opportunistic acquisitions, investments, and shareholder returns [19][20] Other Important Information - The company returned $437 million to shareholders in 2022, representing 59% of net income, and increased its quarterly dividend by 15% [18] - Long-term debt remains below $1.5 billion, with a leverage ratio of 0.7x, providing flexibility for future acquisitions [21] Q&A Session Summary Question: Concerns about SG&A costs as volumes recover - Management indicated that SG&A costs have decreased from 78% of gross pre-COVID to 66% currently, with expectations to stabilize in the low 70s as business normalizes [38][39] Question: Opportunities for leveraging capital for buybacks or acquisitions - Management emphasized a cautious approach to leverage, preferring to maintain flexibility while considering both buybacks and acquisitions [46][54] Question: Trends in PTL and gain on sale impact - The gain on sale in Q2 was $140 million, up $95 million year-over-year, with PAG's share being $27 million [63] Question: Impact of electric vehicles on dealership operations - Management acknowledged the need for training and facility changes to accommodate electric vehicles, which will require more educational support for customers [65] Question: Visibility into inventory and demand for the back half of the year - Management reported strong forward sold orders in both the US and UK, with a positive outlook for demand in the commercial truck sector [72][74] Question: Affordability issues impacting CarShop customers - Management confirmed that affordability issues are more pronounced for CarShop customers compared to franchise-level customers, affecting margins [84] Question: SG&A cost reduction without headcount reduction - Management indicated that there are still opportunities to reduce costs through technology and improved efficiency, despite rising costs in other areas [89][90]

PENSKE Automotive Second Quarter 2022 Financial Results SYTNER On-Highway Power Systems Mining Defense DISCLAIMER Statements in this press release may involve forward-looking statements, including forwardlooking statements regarding Penske Automotive Group, Inc.'s financial performance, acquisitions, and growth plans. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others, the company's ability to successfully ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-12297 Penske Automotive Group, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of ...

Penske Automotive Group, Inc. (NYSE:PAG) Q1 2022 Results Conference Call April 27, 2022 2:00 PM ET Company Participants Anthony Pordon - EVP, Investor Relations and Corporate Development Roger Penske - Chair & CEO Shelley Hulgrave - CFO Tony Facione - Vice President and Corporate Controller Conference Call Participants John Murphy - Bank of America Stephanie Moore - Truist Securities Mike Ward - Benchmark Company Daniel Imbro - Stephens Inc Rajat Gupta - JPMorgan David Whiston - Morningstar Operator Good af ...