Annual2021ReportEagers Automotive LimitedABN 87 009 680 013 5 Year
Financial Summary
Year ended
31 December
OPERATING RESULTS
From continuing operations
Revenue
EBITDAI
Depreciation and amortisation
Impairment and property revaluations through profit and loss
EBIT
Finance costs
Finance income
Profit before tax
Income tax expense
Profit from continuing operations
Group trading results
Loss from discontinued operations
Non-controlling interest in subsidiary
Attributable profit after tax
Operating statistics
Basic earnings per share - cents
Dividends per share - cents
Dividend franking - %
As at
31 December
Funds employed
Contributed equity
Reserves
Retained earnings
Non-controlling interest in subsidiary
Total equity
Non-current liabilities
Current liabilities
Total liabilities
Total funds employed
Represented by
Property plant and equipment
Intangibles
Financial assets at fair value through OCI
Other non-current assets
Property assets held for resale
Other current assets
Total assets
Other statistics
Shares on issue – ‘000
Number of shareholders
Total Debt (1)
Net debt (total debt less bailment finance less cash) - $’000
2021
$’000
2020
$’000
RESTATED
2019
$’000
2018
$’000
2017
$’000
8,663,462
8,749,675
5,816,979
4,112,802
4,058,779
651,642
(120,428)
(5,156)
526,058
(79,619)
10,368
456,807
(118,070)
338,737
625,447
(166,257)
(90,700)
368,490
(88,384)
-
280,106
(88,575)
191,531
342,407
(95,217)
(244,925)
2,265
(65,569)
-
(63,304)
(17,176)
(80,480)
(8,000)
(12,913)
(35,320)
(8,921)
(59,113)
(2,787)
317,824
147,290
(142,380)
125.2
42.5
100
57.6
25.0
100
(67.4)
25.3
100
215,283
(46,137)
-
169,146
(40,744)
-
128,402
(30,906)
97,496
-
(1,619)
95,877
50.1
36.5
100
176,668
(16,651)
210
160,227
(24,598)
-
135,629
(37,456)
98,173
-
(2,146)
96,027
50.3
36.0
100
2021
$’000
2020
$’000
RESTATED
2019
$’000
2018
$’000
2017
$’000
1,173,069
1,173,069
(617,978)
(580,200)
1,173,069
(560,126)
199,463
9,423
821,829
317,848
13,860
924,577
1,443,313
1,490,490
1,665,761
2,545,827
371,405
(124,306)
380,558
8,002
635,659
544,994
818,696
369,028
38,131
367,855
10,761
785,775
276,092
762,904
3,109,074
4,033,651
4,036,317
4,858,146
1,363,690
1,038,996
1,999,349
1,824,771
510,725
21,635
1,087,451
1,300,548
1,342,946
2,643,494
3,730,945
514,374
775,295
577
494,266
785,574
2,366
456,058
773,174
2,366
1,067,324
1,188,502
1,245,734
-
-
388,407
313,325
149,774
269,905
-
1,562,943
2,380,814
877,938
4,033,651
4,858,146
1,999,349
18,670
1,354,705
3,730,945
361,121
309,414
288,033
22,600
-
843,603
1,824,771
256,933
10,767
1,056,611
128,409
256,933
11,159
256,933
9,955
1,233,079
1,744,826
129,263
314,867
191,309
5,038
899,405
310,264
191,008
5,442
793,544
238,523
Gearing ratio (debt/debt plus equity) – %
Gearing ratio (net debt/net debt plus total equity) – %
49.3
10.6
57.1
12.3
68.0
27.7
58.6
32.8
50.2
23.3
(1)
Bailment Finance
Bailment finance is a form of financing peculiar to the motor industry, which is provided by financiers on a vehicle by vehicle basis. It is short-term in nature,
is generally secured by the vehicle being financed and is principally represented on the borrower’s balance sheet as vehicle inventory with the liability
reflected under current liabilities. Because of its short-term nature, it is excluded from net debt and the corresponding gearing ratio.
Contents
5 Year Financial Summary
2021 Highlights
2021 Financial Highlights
Company Profile
Where Do We Operate?
Chairman's Letter
Message from the CEO
Outlook
Our Next100
Our Values
Eagers Automotive Foundation
Sustainability Report
Board of Directors
Executive Management
Directors’ Report
Auditor’s Declaration of Independence
Financial Statements 2021
Notes to and Forming Part of the
Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Corporate Directory
2
4
5
6
7
8
10
12
13
14
16
18
36
37
38
56
58
64
135
136
141
143
Annual General Meeting
Our Annual General Meeting will be held at 11:00am (Qld
time) on Wednesday, 18 May 2022. It will be held as a "hybrid"
meeting, giving sharholders an opportunity to attend either
online or in person.
Financial Calendar
2021 Financial Year End
31 December 2021
Full Year Results Announcement
24 February 2022
Final Dividend Announcement
24 February 2022
Final Dividend Record Date
Final Dividend Payment Date
Annual General Meeting*
Half Year End
Half Year Results Announcement*
Interim Dividend Announcement*
1 April 2022
20 April 2022
18 May 2022
30 June 2022
August 2022
August 2022
Interim Dividend Record Date*
September 2022
Interim Dividend Payment Date*
October 2022
2022 Financial Year End
31 December 2022
*Estimate only, subject to any changes notified to the ASX.
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2021
Highlights
Record full year result driven by simplified
business leveraging scale, geographic diversity
and favourable market conditions.
Record Profit
Delivered through disciplined execution, cost
out program and strong market conditions
Strong Balance Sheet
Underpinned by substantial asset base and
available liquidity
Key drivers
of our result
Strong market conditions supported
by greater productivity and a more
efficient cost base.
Robust Outlook
Strong demand continues to outstrip supply
with record order bank continuing to grow
Strong
Demand
Property
Consolidation
Strategy Execution
Continued progress against the 5 key pillars
of our Next100 Strategy
Greater
Productivity
Reduced
Cost Base
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 4
5
2021
Financial
Highlights
Disciplined focus on cost
base underpinning sustainable
Return on Sales performance.
Underlying Operating PBT1
Return on Sales (Underlying)1
$401.8m
from
$209.4m
in 2020
4.6% from 2.4%
in 2020
Statutory PAT
$330.7m
from
$156.2m
in 2020
Corporate Debt Net of Cash2
$128.4m
from
$129.3m as at 31
December 2020
Daimler Trucks Gain on Sale (Pre-tax)
Total Dividend for 2021
$30.2m
70.9 cents per share
from
25.0 cps
in 2020
1
Underlying operating results refers to continuing operations outlined and reconciled to statutory results on slides 34 (FY2021) and 35 (comparative
financial information) of the Investor Presentation released to the ASX on 24 February 2022. Underlying operating figures are non-financial
measures and have not been subject to audit by the Company’s external auditors.
2 At 31 December 2021.
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT
66
7
Company Profile
2016 saw further growth with the
acquisition of Motors Group Tasmania
and the Victorian businesses
Silver Star Motors, Mercedes–Benz
Ringwood and Waverley Toyota.
Our presence in regional
Queensland grew substantially
in 2016 with the acquisition of
the Crampton Automotive and
Tony Ireland Groups, taking us
into new geographic territories in
Toowoomba and Townsville.
In 2018 we completed the acquisition
of Toowoomba Motor Group
(Mitsubishi and Kia), Metro Nissan
(Brisbane) and Southern Vales
Nissan (Adelaide).
We acquired a strategic holding in
AHG in 2012 which provided indirect
exposure to the West Australian
market. This investment grew to full
ownership of AHG in 2019, bringing
significant operations in Perth,
Sydney, Newcastle/Hunter Valley,
Brisbane, Melbourne and Auckland.
2021
2021 saw strategic acquisitions
of Toowoomba Ford and multi-
franchised dealerships in Cardiff
and Maitland.
We have also continued to invest in
new automotive retail formats, such
as AutoMall West in Indooroopilly
Shopping Centre in West Brisbane,
which will provide a more tailored,
flexible, convenient experience
for customers.
We are now also in the design phase
for our automotive retailing and
mobility hub which will be set on over
90,000m2 of land in Brisbane Airport’s
new $300 million Brisbane Auto Mall,
with the aim of providing a world-
class automotive retailing experience
for our customers of the future.
About us
Origins
Eagers Automotive Limited is the
leading automotive retail group in
Australia and New Zealand, with a long
and proud history of 109 years.
Our name was changed to Eagers
Automotive Limited from A.P.
Eagers Limited in 2020 following our
acquisition of the listed Automotive
Holdings Group Limited (AHG). This
new name better reflects our position
in the automotive industry and recent
growth, whilst also maintaining a
connection to our foundation.
We are a pure automotive retail group
representing a diversified portfolio of
automotive brands across Australia and
New Zealand.
Our core business consists of the
ownership and operation of motor vehicle
dealerships. We provide full facilities
including the sale of new and used
vehicles, service, parts and the facilitation
of allied consumer finance.
Our operations are typically provided
through strategically clustered
dealerships, many of which are situated
on properties owned by us in high profile,
main road locations, with the balance
leased by us.
Our main operations are located in
Brisbane, regional Queensland, Adelaide,
Darwin, Melbourne, Perth, Sydney, the
Newcastle/Hunter Valley region of New
South Wales, Tasmania and Auckland.
Dividends and EPS Growth
We have paid a dividend to our
shareholders every year since we listed
on the Australian stock exchange
in 1957.
We have a track record of delivering
Earnings Per Share (EPS) growth
from acquisitions.
Our origins trace back to 1913 when
Edward Eager and his son, Frederic,
founded their family automotive
business, E.G. Eager & Son Ltd, which
continues today as one of our wholly-
owned subsidiaries.
After establishing the first motor
vehicle assembly plant in Queensland
in 1922, we secured the distributorship
of General Motors products in
Queensland and northern New South
Wales in 1930 and listed as a public
company in 1957 under the name
Eagers Holdings Limited.
A merger in 1992 with the listed A.P.
Group Limited saw the addition of
a number of new franchises and
our name change to A.P. Eagers
Limited. Further new franchises and
geographic diversification followed.
Our acquisition of AHG in 2019
cemented our position as the leading
automotive retail group in Australia
and New Zealand.
Growth
Our sales revenue from continuing
operations, which excludes
operations during the period either
divested or held for sale, has
increased from $500 million in 2000
to $8.7 billion in 2021.
Our operations expanded into the
Northern Territory with the acquisition
of Bridge Toyota in 2005.
In 2010, we acquired the publicly
listed Adtrans Group Limited, being
South Australia’s premier car retailer.
This was our direct entry into South
Australia.
Eblen Motors was acquired in 2011,
Main North and Unley Nissan and
Renault were added in 2013, and
Reynella Subaru was acquired in
2014, complementing our existing
operations in South Australia.
A new business, Precision Automotive
Technology, was established in 2013
to source and distribute our own
range of car care products.
In 2014, our Queensland operations
continued to expand through the
acquisition of Ian Boettcher Motors in
Ipswich and the Craig Black Group in
south-west and central Queensland.
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 66
7
Where do we Operate?
National footprint and breadth of brand representation capitalising
on strong market conditions in Australia and New Zealand.
NT & WA market size:
~10% of national market
QLD & SA & TAS market size:
~30% of national market
NSW & VIC market size:
~60% of national market
Very strong presence
Strong presence
Growth opportunities
Eagers brand representation
covers 96% of new vehicle sales
in Australia in 2021.
State
Queensland
Western Australia
South Australia
Tasmania
Northern Territory
New South Wales
Victoria
Australian Capital Territory
Australian Market
New Zealand Market
Eagers Market Share
11.4%
20.2%
15.0%
11.3%
27.8%
9.4%
5.4%
-
10.2%
4.5%
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 8
9
Chairman's
Letter
Tim Crommelin
Our balance sheet
and financial position
remain very strong,
with significant
available liquidity,
providing the capacity
and flexibility to
support disciplined
reinvestment.
Dear shareholders,
2021 was both challenging and rewarding for Eagers
Automotive.
As with much of the retail sector, the COVID-19 pandemic
continued to pose significant challenges for the
automotive retail industry during the year. Our business
operations were adversly affected by the pandemic's
continued economic impact, including as a result of
government-mandated lockdowns in New South Wales,
Victoria and Auckland, New Zealand, as well as border
closures and supply chain disruption.
The health and safety of our people, our customers and
our local communities remains our first priority. We have
consistently demonstrated our ability to adapt quickly to
evolving public health requirements, while continuing to
operate safely and provide excellent customer service,
despite the challenges associated with the pandemic.
Under the leadership of our Chief Executive Officer,
Keith Thornton, who has taken to the role seamlessly
since commencing in February 2021, the Company
has continued to execute its strategy with discipline,
delivering a record financial performance for the year.
Our record statutory profit before tax from continuing
operations of $456.8 million in 2021 was up from $280.1
million in 2020, while our underlying operating profit before
tax of $401.8 million was up from $209.4 million in 2020.
Our balance sheet and financial position remain very
strong, with significant available liquidity, providing
the capacity and flexibility to support disciplined
reinvestment. We believe this will drive returns to
shareholders in future years.
We are delighted to continue our long history of
rewarding shareholders, with a fully franked final
dividend for 2021 of 42.5 cents per share.
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 8
9
We are delighted to
continue our long
history of rewarding
shareholders, with
a fully franked final
dividend for 2021 of
42.5 cents per share.
The final dividend, combined with our ordinary interim
dividend and our special dividend relating to the strategic
divestment of the Daimler Trucks business, takes the total
dividends for the full year to 70.9 cents per share, up from
25.0 cents per share for the previous year.
Keith provides further details about the Company’s 2021
performance, strategic initiatives and outlook on the
following pages, whilst I note that we have continued to
experience strong demand in all regions during early 2022
and are well-positioned for the future.
The pandemic, together with heightened focus on climate
change, has accelerated the global consciousness of
Environmental, Social and Governance (ESG) matters.
ESG risks and opportunities remain a priority for us as we
continue efforts to reduce our impact on the environment,
enhance our business as a place to work and support
our communities. We are pleased to include our first
Sustainability Report in this Annual Report.
On behalf of the Board, I would like to acknowledge Keith
and the management team for their leadership navigating
the Company through significant external disruption. Thank
you to all of our employees – your hard work and dedication
in a challenging environment allowed the Company to
continue to achieve outstanding results in 2021.
I would also like to thank my fellow Directors for their
valuable contribution and counsel throughout the year.
In particular, I acknowledge and thank David Cowper who
is intending to retire as a Director at our Annual General
Meeting this year. David has been an extremely dedicated,
industrious and loyal servant of the Company since his
initial appointment to the Board in July 2012, including in
the vital role of Chairman of our Audit & Risk Committee.
David’s efforts have been tireless and his contribution to the
Company has been enormous.
Finally, thank you to all of our shareholders for your ongoing
support. We are excited about the year ahead and look
forward to continuing to deliver for shareholders in the
long term.
Yours faithfully,
Tim Crommelin
Chairman
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 10
11
Message from
the CEO
Keith Thornton
Dear shareholders,
As I said at the time of my appointment in February 2021,
it is an immense privilege to be Chief Executive Officer of
Eagers Automotive and I am now pleased to be able to
report on my first year in the role.
The last 12 months have presented Eagers Automotive
with some of the most unique challenges and market
dynamics of my near 20 years with the Company. Yet the
transformative steps we have taken in recent years and
the strong focus on operational performance from our
team have positioned the Company to perform strongly
regardless of the external environment.
Operating environment
Despite the myriad of challenges presented by COVID-19,
our team has continued to deliver for customers, OEM
partners and shareholders.
Our overall scale and geographic diversity have enabled
Eagers Automotive to capitalise on the new vehicle market
recovery across all regions while also mitigating the impacts
of localised COVID-19 restrictions.
During 2021, we experienced government-mandated
lockdowns in New South Wales, in both our Sydney and
Newcastle regions, as well as in Victoria and Auckland,
as a result of the pandemic. In total 114 trading days were
impacted and restricted more than 35% of the Company
at any one time. While this was indeed challenging, the
experience we had gained from business interruptions
during the initial on-set of COVID-19 in 2020 allowed us to
quickly adjust during 2021. Our local teams were able to
provide safe and convenient solutions for our customers
through online-enabled ‘click and collect’ sales combined
with contactless delivery and service options.
While the lockdowns impacted trading in sections of our
service and parts operations and resulted in the deferral of
some new and used vehicle sales and deliveries, our order
book has remained exceptionally strong with demand for
new and used vehicles remaining robust across the country.
Although customer activity, workforces and supply chains
were interrupted by the pandemic during 2021, new car
orders materially outstripped new car deliveries in every
month of the year, creating a record order book for us and
the industry at large.
Geographically, our two largest markets of Queensland and
Western Australia were largely unaffected by lockdowns,
experiencing particularly strong trading conditions
throughout 2021.
Financial performance
Despite the COVID-19-related disruptions, we delivered
a record financial performance, maintaining a relentless
focus on executing our Next100 Strategy while remaining
disciplined in our daily operational management of the
business to capitalise on favourable market dynamics.
Consolidated revenue from continuing operations for the full
year was $8.7 billion, marginally down on the prior period due
to the divestment of our Daimler Trucks business in April 2021.
However, on a statutory basis our record profit before tax
from continuing operations of $456.8 million, up from $280.1
million in the previous year, equated to a statutory after-
tax profit of $330.7 million, up from $156.2 million in the
previous year.
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 10
11
Outlook
Despite ongoing supply chain constraints and temporary
disruption to logistics and resourcing in early 2022 as a
result of the Omicron outbreak, unusually strong demand
has continued across all of our operating regions while the
impact from lockdowns has become increasingly muted.
Our strong balance sheet and fortified liquidity position
provide the flexibility and capacity to continue the active
transformation of our business. We believe that as we
anticipate and respond to the evolution of the automotive
retail industry, we are best positioned to capitalise on
accretive consolidation within the industry.
We plan on further investment in organic growth initiatives
as we continue to review strategically complementary
acquisition opportunities. Our aim is to accelerate
execution of our Next100 Strategy.
Thank you
I would like to thank each and every customer we served
in 2021. Your support is greatly appreciated and never
taken for granted. We will continue to work hard to support
you and repay your custom while striving to deliver on our
internal mantra of ‘we can help you with that’.
I would like to acknowledge all 7,345 members of our team
– your dedication and commitment have been instrumental
to the delivery of our strong results in 2021.
Thank you to the Board and my predecessor Martin Ward
for your advice and support throughout the year. I look
forward to continuing to work together in 2022 as we build
on the legacy of strong growth and financial management.
To each OEM partner, we are proud to represent your
brand. Our position as your retail partner is a privilege and
responsibility we take very seriously. We will continue to
focus on being a preferred partner for your business.
To our banks and finance partners, our landlords large and
small, and all our other business suppliers, we thank you for
your overwhelming support during what has continued to
be a challenging time for business.
And finally, to our valued shareholders, we thank you for
your ongoing support.
We are very excited for what the future holds.
Yours faithfully,
Keith Thornton
Chief Executive Officer
We delivered a record
financial performance,
maintaining a relentless
focus on executing our
Next100 Strategy
Our simplified business model, and the benefits of our
restructuring, rationalisation and cost-out initiatives,
contributed to an underlying operating profit before tax of
$401.8 million for the full year, a significant increase on the
$209.4 million recorded in 2020. A structural reduction in our
on-going cost base enabled us to achieve a return on sales
of 4.6% on an underlying basis.
Strategic progress – Next100
Throughout 2021, our team continued its focus on executing
our Next100 Strategy and actively pursuing aligned
opportunities to deliver growth in shareholder returns.
We continued to pro-actively manage our dealership
portfolio with strategic acquisitions of Toowoomba Ford
and multi-franchised dealership groups in Cardiff and
Maitland, in addition to the Daimler Trucks divestment.
We further rebalanced our property portfolio through the
acquisition of 10 strategic sites valued at $168.7 million,
taking the total value of the portfolio to $432.5 million at the
end of 2021, excluding assets held for resale, compared to
$356.5 million at the end of 2020.
In conjunction with our strategic property acquisitions, we
continued to invest in new automotive retail formats, such
as AutoMall West located at Indooroopilly Shopping Centre
in west Brisbane. This new retail format will provide a more
tailored, flexible and convenient experience for our customers
while leveraging economies of scale to enable a more
economically sustainable retail footprint for the longer term.
To develop an automall concept in this way and of this size,
supported by a significant number of major OEM partners, is
a truly globally unique initiative in our industry and another
example of how Eagers Automotive is committed to leading
innovation in retail solutions for our partners.
Our national, fixed-price pre-owned vehicle business,
easyauto123, continues to grow profitably as it benefits from
being fully integrated into our business, our investment in
the ‘your car, your way’ integrated online buying, selling
and financing options for customers, and our disciplined
approach to cost management. During the year, we opened
new easyauto123 sites in Sydney, Townsville and multiple
locations in Auckland. We have continued to redesign
our workforce and workspace in response to changing
customer habits as we extended our measured investment
in proprietary technology to optimise workforce productivity
and improve customer experience.
We also remain committed to delivering optimised financial
solutions for our customers. Despite the impact of COVID-19
on automotive retail finance, we continued to outperform
industry benchmarks while originating more than $2 billion
of loans during the year.
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 1212
Outlook
Discipled focus on accelerating our Next100 Strategy.
easyauto123 Growth
Creating shareholder value through profitable growth of the easyauto123 business
Finance Penetration
Leveraging Point of Sale (POS) advantage, technology investments & a favourable credit market to continue
finance penetration growth
Property
Continue restructuring owned & leased properties and acquisition of strategically located leased sites to
increase flexibility and deliver enhanced customer experience on lower cost base
Technology
Continue to invest in integrated technology solutions, enhancing customer experience & providing a platform for
productivity gains
M&A
Continue to review acquisition, rationalisation & consolidation opportunities in line with Next100 Strategy
Franchised Automotive
Independent Used
Strategic Property
Ownership
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 1212
13
OUR NEXT100
Providing integrated mobility solutions for the next 100 years.
OPTIMISE
DEVELOP
GROW
Engage our
customers,
everywhere
Redefine
our workforce
Online.
Our workforce:
At the airport.
In shopping malls.
In multi-brand service
hubs.
At home. At work.
Our flexible owned
and leased property
portfolio allows
us to continue to
evolve to fit our
customers’ lifestyles,
circumstances, wants
and needs.
Re-defined and
re-imagined,
based on our
customers’ journey.
This transformation
is aimed at delivering
an all new and vastly
superior customer
experience on a more
sustainable and
productive cost base.
Deliver optimised
vehicle finance
solutions
Capitalise on the
unique position our
industry occupies in
the distribution of
motor vehicles, with
the aim of becoming
the preferred provider
of automotive and
mobility finance
solutions.
Deliver ultra-
competitive, highly
tailored finance
solutions sourced
from our extensive
funding relationships.
Support
innovation
Reinvest with
discipline
Support our partners
to introduce ACE
(autonomous,
connected and
electric) and
other emerging
product and service
innovations.
Our partners cover
circa 95% of the
total market for new
vehicles in Australia
and are at the
forefront of design,
performance and
innovation.
Disciplined use of
shareholder funds
combined with
rigorous review of
existing and new
operations to support
an unrelenting focus
on long term wealth
creation.
Utilise balance sheet
strength to capitalise
on evolving and
emerging market
trends.
EXCEED STAKEHOLDER EXPECTATIONS
Customers. Employees. Partners. Shareholders. Community.
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 14
Our Values
We have adopted the following values, which express the standards and behaviours we expect
of all our team members. They guide our interactions with all stakeholders and bring our team
together as one aligned Eagers Automotive team.
Integrity
Inclusiveness
Owner’s
Mindset
Agility
Doing what we say we will do
Our reputation is the foundation on which
our Company is built. It is shaped by the
way each of us behaves and acts every
day. Others need to be able to rely on us
while we constantly strive to be better than
ever before. Regardless of success, we
value humility and authenticity as these are
necessary for creating high levels of trust
and transparency across all parts of our
business. Our success is directly linked to us
doing what we say we will do and optimising
outcomes for all stakeholders.
Embracing the value
and contribution of all
individuals in our team
Respect runs deep in our Company. Everyone
matters. No one is more or less important
as an individual than anyone else, however
we all have different roles to play. Success
is never achieved in isolation and we strive
to be a connected team, supporting each
other and encouraging each individual
contribution to group goals. Everyone has
safe passage to offer their own view based
on their unique experiences and background.
We learn together and we succeed as one.
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 14
15
Integrity
Inclusiveness
Owner’s
Mindset
Agility
Taking pride in our work
and owning our contribution
We are a team focussed on continuous
improvement in our behaviour, our skills, our
standards and our results. Each individual
is empowered to take ownership of their
contribution to the team. We support
pragmatic thinking, authentic people who
respectfully challenge themselves and each
other to do better every day.
Being flexible in our thinking
and open to change
We constantly look for new and better ways to
optimise outcomes for our stakeholders. We
encourage innovative thought to build better
processes, enhance efficiencies and improve
results. While we strive to grow our Company,
we know that size can reduce agility, so we
drive nimble action. New ideas and shared
learnings are important to help us maintain
the speed and agility of a market leader in our
ever-changing industry.
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 16
17
What is the Eagers
Automotive Foundation?
Community Driven
Our commitment to community support for over 100 years led to the
establishment of the Eagers Automotive Foundation in 2013.
The Foundation is a non – profit organisation committed to supporting our communities and
worthwhile causes by engaging with our stakeholders and utilising our growing scale to actively
contribute in meaningful and sustainable ways.
Community Engagement
During 2021 we continued our long history of supporting local communities and charities through
various fund raising activities conducted by both the Eagers Automotive Foundation and the
Eagers Automotive dealerships in New South Wales, Northern Territory, Queensland, South
Australia, Tasmania, Victoria, Western Australia and New Zealand.
3
To create a lasting
spirit of giving within
the Eagers Automotive
network for those in need
in our community.
To engage the Eagers
Automotive network
to drive positive
sustainable change in
our community.
To encourage and support initiatives of
Eagers Automotive stakeholders that help
drive positive change for those in need.
To secure voluntary assistance through financial support,
sponsorship, skills transfer and in-kind donations from
Eagers Automotive businesses and stakeholders.
1
To deliver 100% of donations to intended recipients.
To operate with the highest standards of integrity.
1. Life Flight, QLD
2. Kevin Bynder Paints maintenance kit for NAIDOC Week, WA
3. Minda Inc, SA
4. Wrapping Christmas presents for Salvation Army, WA
5. National Schools Tree Planting Day, WA
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 16
17
Our support for these communities and
charities exceeded $960,000 in 2021.
Numerous charities,communities and
worthwhile causes benefited from our
dealerships’ initiatives during 2021 including:
Northern Territory
. Autism NT . Carers NT . Danilda Dilba Health Services
Queensland
. St.Vincent de Paul Society (Qld) . Traction for Young
People . Anglicare Australia . Junior Diabetes Research
Foundation . Minda Inc. . The Endeavour Rally . RACQ Life
Flight Rescue . Felicity Purcell Nursing Bursary
. Darkness to Daylight . The Prince Charles Hospital
Foundation Common Good Bike Rally . Micah Projects
. MindFX . Ginger Cloud Foundation . Australian Cervical
Cancer Foundation . Ronald McDonald House (Townsville)
. Townsville Sunrise Rotary Club
New South Wales
. Elouera Surf Life Saving Club . Little Wings
. Phoenix Community Project . Variety NSW Bash
Tasmania
. Variety Tasmania the Children’s Charity
. Camp Quality . Cancer Council Tasmania
. St Giles Society . Pathways Tasmania
South Australia
. Backpacks for SA Kids . Kickstart for SA Kids
. Youth Opportunities . Autism Dogs Program
. Royal Society for the Blind . Minda Inc.
. Living Without Limits Foundation
Western Australia
. Kevin Bynder Indigenous Artist
. National Breast Cancer Foundation
. Salvation Army . Hearts for the Homeless
. City of Perth Christmas Parade . Movember
. National Schools Tree Planting Day
. Oz Harvest . Perth Children’s Hospital Foundation
. Lifeline . Little Luca’s Big Fight
. Pink Ribbon Breakfast . Purple Hearts Foundation
. Perth Special Children’s Christmas Party
Victoria
. Variety Bikes for Kids . Brainwave . Monash Medical
Centre – Children Hospital
New Zealand
. Westpac Rescue Helicopter . The Handathon
. New Zealand Make a Wish Foundation
. The Breast Cancer Foundation
2
4
5
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 18
19
Sustainability
Report
This is Eagers Automotive’s first sustainability report.
However, our sustainability journey has been underway
for many years and is one of continual improvement
and accountability.
We have chosen to report in line with the globally recognised reporting
Standard provided by the Sustainability Accounting Standards Board
(SASB) and its guidance for companies in the multiline and speciality
retailers & distributors sector. This Standard not only has a particular
focus on the information needs of institutional investors but has also been
chosen by the International Sustainability Standards Board and the IFRS
Foundation in November 2021 as the preferred reporting framework for
harmonising sustainability disclosures for financial markets globally.
This report is arranged in four sections – Environment, Social, Governance
and Climate Change - to capture the issues that are of most relevance to
our business.
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 18
19
Sustainability
Report
Contents
1. Environment
1.1 Electricity Consumption
1.2 Hazardous Chemicals
1.3 Underground Petroleum Storage Systems (UPSS)
1.4 Packaging
1.5 Commitments to Reduce CO2 Emissions
2. Social
2.1 Labour Practices
2.2 Balancing Work Goals with Life Goals
2.3 Response to COVID-19
2.4 Employee Engagement
2.5 Health and Safety
2.6 Diversity & Inclusion
2.7 Diversity Objectives
2.8 The Eagers Automotive Foundation
3. Governance
3.1 Data Security
3.2 Ethics and Whistle Blower Policies
3.3 Anticorruption
3.4 Modern Slavery
3.5 Grievance Policies
3.6 Risk Management Framework
4. Climate Change
4.1 Greenhouse Gas Emissions
4.2 Management of and Reporting on
Climate Change Risk
Appendix: SASB Reference Table
20
20
21
21
21
21
23
23
24
25
26
26
27
27
29
30
30
30
31
31
31
31
32
32
32
33
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT
20
1. Environment
This section provides information on initiatives we utilise to
reduce our environmental impact.
1.1 Electricity Consumption
Heating, ventilation and air conditioning (HVAC) are the largest users of electricity in our business, at
approximately 75% of total usage. We are conscious that although HVACs consume most of the electricity, it is
important that we continue to provide employees with a comfortable and safe place to work and we also view
this as essential for our customer facilities.
We have taken a proactive approach to reduce electricity consumption, with many sites replacing traditional
bulb lighting with more efficient LED lighting and installing light sensors and timing devices. 34 dealerships have
also installed Solar Photovoltaic (PV) systems, that each provide between 30Kw and 200Kw of electricity.
Southside Toyota Brisbane
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 21
1.2 Hazardous Chemicals
Our operations involve the handling, storage and sale of many hazardous chemicals such as paints, solvents,
fuel, degreasers, aerosols and oil. We have implemented a structured framework to assess and manage the risk
of harm that these materials can cause to people and the environment. This includes specific control measures
for each site, including a register of chemicals, Safety Data Sheets, signage and employee training in handling
and use of chemicals.
1.3 Underground Petroleum Storage Systems (UPSS)
Across our network of dealerships, there are 56 UPSSs that store oil and petroleum products which could
present safety and environmental risks if they were to deteriorate over time. We have taken a proactive
approach to address this issue. Qualified contractors complete a variety of equipment integrity tests
which have been used to establish a plan that will see all UPSSs decommissioned. 18 UPSSs have been
decommissioned to date.
1.4 Packaging
As an automotive retailer, we do not package any products across our network of dealerships.
1.5 Commitments to Reduce CO2 Emissions
Whilst automotive retailers have little influence over the sales strategies of Original Equipment Manufacturers
(OEMs), the vast majority of OEMs who we represent have set significant targets for reducing CO2 emissions and
increasing the sale of electric vehicles. The table on Page 22 provides a summary of those targets from 12 of the
top 15 brands sold in Australia which accounted for 76% of national new vehicle sales and 89 % of our sales in 2021.
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 22
23
OEM
TARGET
YEAR
1
2
3
4
5
6
7
8
9
10
11
12
Reduce global average CO2 emissions from new vehicles by 90% compared to 2010 levels
Global battery electric vehicle sales target of 3.5 million each year
Reduce the average ‘well-to-wheel’ CO2 emissions, and achieve a 90% reduction
compared to 2010 levels
25% of new vehicles will be electric, with the remaining 75% having an electrified element
100% electrification of new vehicles worldwide
Global sales target for electric vehicles of 1.7 million each year
All vehicles, production facilities and suppliers will be carbon neutral
40% of global sales will be battery electric powered
5 electric vehicle models on sale in Australia
All vehicles, production facilities and suppliers will be carbon neutral
CO2 emissions from new vehicles to be 40% below 2010 levels and electric vehicles
to be 50% of all vehicles sold
To be carbon neutral across the life cycle of its products
Introduce 23 new electrified models, including 15 new electric vehicles with the aim of an
electrification mix of more than 50% globally
Introduce 20 new electric vehicles and e-POWER equipped models in the next five years,
targeting an increase in their electrification sales mix across major markets including Europe (+75%),
Japan (+55%), China (+40%) and the US (+40% by 2030) – an investment of 2 trillion Yen
Reduce vehicles’ CO2 emissions in production and during the use phase by 30% between 2018
and 2030 and increase the proportion of the fleet that is electric to at least 40%
Sell more than 1 million e-cars globally
Reduce the average CO2 emissions from new passenger cars by at least 90% by 2050,
compared with 2010
Increase the ratio of electric vehicles and hybrid cars to up to 40% of the gross number of
vehicles sold globally and, by the early 2030s, all their commercial cars to be equipped with electric
powertrain technology
Make entire new vehicle fleet CO2-neutral and ensure it no longer has any relevant effects
on air quality in inner cities
2050
2030
2050
2030
2040
2026
2050
2030
2024
2045
2030
2050
2030
2026
2030
2025
2050
2030
2040
Plug-in hybrids or all-electric vehicles to account for more than 50 percent of car and van sales
2030
Reduce CO2 emissions per vehicle and kilometre driven by 40% on 2019 levels across entire value chain
Total climate neutrality
Target production of 40% electric vehicles by 2030, and 80% by 2035
100% production of electric vehicles
Total climate neutrality
2030
2050
2030
2040
2050
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 22
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2. Social
2.1 Labour Practices
To satisfy the SASB Standard, the following information excludes corporate staff.
2.1.1 Remuneration
Throughout 2021 all employees were
remunerated above the minimum wage except
for 107 who were remunerated at the minimum
wage in line with their appropriate Award or
Industrial Agreement.
Minimum Wage
Australia
1.7%
Total: 107
New Zealand
0.0%
Total: 0
The average hourly remuneration of our
employees in 2021, measured as total wages
and commissions, less overtime payments, is
summarised below.
Average Full Time Earnings
Australia
New Zealand*
$66.07
$29.41
$32.88
$54.68
Management
Parts and
Services
Finance and
Administration
Sales, Car Care,
Insurance Consultants
$67.56
$29.06
$29.49
$51.47
*Amounts are shown in NZ Dollars.
2.1.2 Rate of Termination
The table below shows the
number of employment
terminations across our
dealerships in 2021 and this is
reflective of the relatively high
turnover rate across
the industry.
Termination
Australia
New Zealand
Voluntary
Involuntary
Voluntary
Involuntary
35.2%
Total: 2,275
3.4%
Total: 206
28.4%
Total: 133
1.7%
Total: 8
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 24
25
2.1.3 Labour Laws and Payroll Systems
We did not incur any monetary loss in 2021 due to legal proceedings associated with labour law violations.
In December 2019 we announced on the Australian Stock Exchange that we had self-reported the
underpayment of employees to Fair Work Australia. We had identified the issue during a system upgrade.
Our detailed investigation, with the assistance of independent experts, determined that approximately 6,200
employees and former employees had been affected over a period of seven years, with the total payment
shortfall being $4.5 million. All remediation payments plus interest were processed in 2020 and Fair Work has
finalised its review of the matter. Following the merger with AHG, we undertook a further review into their payroll
systems and immediately self-reported the findings to Fair Work Australia. We took full responsibility to ensure
that all current and former AHG employees were paid full entitlements plus interest.
It was with great disappointment that we learned of the payroll underpayments. Our people underpin our
business and our value. We constantly strive to provide a work environment where all our people feel valued,
recognised and respected for their contributions. A fundamental part of this is ensuring that our employees
are appropriately rewarded. To this end, we have proactively remedied our mistakes and implemented many
controls to mitigate the risk of any reoccurrence, including:
• We have implemented a national classification framework and template employment contracts for every
type of position. This assists with setting minimum terms for positions and applying correct Award conditions.
• We have introduced the Kronos Time and Attendance system across the group. This assists with compliance,
recording and payment of overtime and correct provisioning.
• Our payroll system now automatically includes service anniversary dates that assist with implementing
appropriate adjustments to Award rates.
• All training is completed after commencement of employment.
• Managers receive improved education and training on Award requirements.
2.2 Balancing Work Goals with Life Goals
We take pride in our employees having work goals, along with life goals.
We recognise this in many ways, including:
2.2.1 Service Recognition
We are proud that many of our employees have chosen to have long careers with us. To celebrate this, we
recognise annual service anniversaries that begin after 10 years with us, and then occur every subsequent five
years. This recognition happens at multiple levels within the business and includes our Chief Executive Officer,
Keith Thornton, personally acknowledging the services of these long-standing employees. We celebrate our
achievements as a team in each dealership, and a token gift of appreciation and celebratory event is provided.
2.2.2 Paid Maternity Leave Program
Over and above our statutory obligations under the Paid Parental Leave Act 2010 in Australia, we offer a Paid
Maternity Leave Program to provide further support following birth or adoption. Our payments subsidize
payments under the applicable government scheme and are designed to assist employees maintain their usual
average pay for a period of up to 12 weeks during their parental leave. Where an employee does not qualify for
a government scheme, we offer eligible employees to the program’s cap value of $15,000.
2.2.3 Career Development and Training Programs
We value continuous learning that supports professional goals. In that regard, we provide training in many
areas including:
a) Sales and Service Development
b) Car Care
c) Finance and Insurance
d) Workplace, Health, Safety and Environment
e) Managing Award Based Workforce
f) Product-specific training
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 24
25
2.2.4 Apprenticeships / Traineeships
As Australia and New Zealand’s leading automotive retailer, we are committed to the future of the automotive
industry and actively look to encourage people to pursue careers in our sector. We employ 607 apprentices.
379 new apprentices were employed in 2021 and 188 apprentices completed their training to become qualified
Automotive Technicians, Automotive Electricians and Parts Interpreters.
We provide many benefits to support our apprentices during their training, including payment of technical fees,
interest-free loans to purchase toolkits, the opportunity to salary sacrifice some expenses, and discounts on
vehicles, parts and servicing.
2.3 Response to COVID-19
A major focus of our sustainability agenda has been on the management of COVID-19 and its impact on
our employees.
We have continually monitored the numerous changes to State and Territory Health Directives to assist our
employees in understanding these complex requirements. Each dealership has operated under a COVID
Safe Plan, and our People & Safety Team has provided regular ‘COVID Alerts’ to guide our businesses as
circumstances have changed.
We took many steps in 2021 for the safety and wellbeing of our employees. This included implementing new
operational processes, safe work practice instructions, changing work rosters to minimise movement across our
operations and implementing tailored and more frequent cleaning and sanitisation practices.
Specific initiatives to assist employees deal with the impact of the health crisis in 2021 included:
Mental Health Awareness Training
Employee Engagement
We introduced the Mentally Healthy Workplace
training program to assist managers implement
workplace practices promoting stronger mental
health outcomes for employees.
COVID-19 Vaccination Incentive
We launched an incentive program to
encourage employees to receive their COVID-19
vaccinations. Fully vaccinated employees could
elect either to receive a $200 gift card or for
us to make a $200 donation to the Eagers
Automotive Foundation. 5,009 employees
claimed this incentive.
To ensure employees continued to feel
connected and supported through government-
enforced lockdowns, we introduced site-specific
initiatives in NSW and Victoria, including:
a) Provision of financial support for employees
to, for example, purchase meals through
Uber Eats or other items (eg. headphones) to
assist during snap lockdowns.
b) In conjunction with our Corporate Health
Plan providers Medibank and Bupa, we rolled
out various COVID-safe activities, including
Healthy Minds Podcasts, Mindfulness Tracks
and Managers Guide to Mental Health, along
with virtual classrooms for cooking and yoga.
Economic Support to Employees
We have supported employees through
lockdowns by providing full access to leave
entitlements and continuing to remunerate
those unable to attend work due to State Health
Directions and unable to work from home.
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 26
27
2.4 Employee Engagement
It is important that our people have a workplace that they are proud of and allows them to perform their
best each day. Prior to our merger with AHG and the COVID-19 pandemic, we conducted annual employee
engagement surveys. While the events of the last two years have led to this annual survey being postponed,
it is being reinstated in 2022. An independent specialist organisation has been engaged to conduct our 2022
survey. By utilizing an independent external provider, employees can be confident that the survey is both
anonymous and confidential, as well as allowing their feedback to be benchmarked against a portfolio of other
large employers. Survey results are reviewed, relayed to employees and action plans developed to act on the
feedback.
2.5 Health and Safety
We are committed to ensuring that our people are safe at work. Implementing better safety and wellbeing
practices is an ongoing priority and included the following in 2021.
2.5.1 New Integrated Workplace Health, Safety and Environment Management (WHSE) System
Following the merger with AHG, multiple safety management systems were being used across the group. In
2021, we completed a comprehensive review of our safety management systems to ensure they all align.
All of our sites now use the same WHSE software platform to report incidents and injuries, thereby improving
consistency of reporting and analysis.
A suite of safety training videos has also been developed to help employees understand WHSE issues on topics
such as Incident & Hazard Reporting, Risk Management, Inductions, Underground Petroleum Storage Systems
(UPSS) and Drug & Alcohol Policy.
2.5.2 Management of Hazardous
Chemicals
As referred to in the Environment
section of this report, many hazardous
chemicals are used, stored and sold in
our business. We use a risk management
approach to provide a safe working
environment. Specific control measures
for use and storage of chemicals have
been developed for each site, including
chemical registers, Safety Data Sheets,
employee training and signage.
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 26
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2.6 Diversity and Inclusion
We recognise the inherent benefits in having a diverse workforce and value the differences between people
and the contribution these differences can make to our business. To encourage and foster the move towards
a more diverse work force is not only the right thing to do, it also makes good business sense. It provides
opportunity to attract and retain the most talented and engaged people whose diversity reflects the
communities in which we operate. We believe this helps to encourage greater innovation within our business.
In order to achieve optimum diversity in our workforce, it is essential that recruitment, selection, training,
promotion and career management decisions are based on merit and are non-discriminatory. Our managers
are charged with responsibility for ensuring employees are treated fairly and with respect and dignity.
Within our policy of appointing or promoting on a non-discriminatory basis, we endorse the objectives of equal
opportunity so that all candidates are given equal consideration.
2.7 Diversity Objectives
In accordance with our diversity policy, the Board has set the following objectives for achieving diversity in the
composition of our Board, senior executives and workforce generally:
2.7.1 Board Composition
In February 2021, we set a diversity target to increase female representation on
the Board to 30% by 2025. Women now make up 22.2% of the Board.
Board
2.7.2 Diversity & Inclusion Training
‘Inclusiveness’ is one of the key values of our Company. This recognises the
unique contribution that each person brings to our business and the strength
and innovation that can come through a diverse and inclusive workforce.
To help embed this value across the group, our objective is to develop and
deliver diversity and inclusion training for all managers over a four-year period,
focussing on increasing awareness of unconscious biases and understanding
how differences can contribute to the development of a high-performance
culture.
Female
22.2%
Feb 2022
Male
77.8%
Feb 2022
20.0%
Feb 2021
80.0%
Feb 2021
Whilst progress against this objective has been hampered due to the many business lockdowns and
other impacts of the COVID-19 pandemic, priority during the year was given to regional initiatives,
including these targeted programs:
Fearless Female Forum
GROW Program
This is a networking group that aims to inspire
and motivate our female and non-binary
employees in Western Australia, allowing them
to connect with leaders in our businesses and
encouraging them to take a leap in their career
without doubt or negative self-talk. The forum
provides a safe space to collaborate and
support one another, while working towards
bridging the gender gap in our industry.
This program operates across our South
Australian dealership network and is a 12-month
in-house development program to encourage
employees to lean in and develop self-
confidence and personal leadership skills to
further their careers.
The Fearless Female Forum and GROW Program have been very successful and we intend to expand
their scope. A group-wide program is being designed for broader delivery across the group.
We also offer management training on a range of diversity-related topics, including:
• Unconscious Bias
• Duty of Care
• Workplace Harassment & Bullying
• Discrimination
• Probation
• Mental Health Awareness
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 28
29
Other diversity and inclusion activities are guided centrally and practised at the dealership level. We
publish an annual Health & Wellbeing Calendar that provides dealerships with information on the various
events and initiatives they may choose to support. These include RUOK Day, Harmony Day, International
Women’s Day, National Sorry Day, Māori Language Week etc. For example, in relation to RUOK Day in 2021 we
provided employees with access to a series of webinars on mental health. Members of our corporate team
also participated in the Brisbane International Women’s Day Fun Run and the Darkness to Daylight 100km
Challenge to end domestic violence.
2.7.3 Workforce Gender Composition
We are committed to improving the gender balance of our workforce. Guided by the SASB reporting framework,
the following table shows the gender representation in our Australian business.
Management
Non-management
Apprentices and Trade Graduates
Female
Male
Female
Male
8.2% 91.8%
Total: 74
Total: 833
25.6% 74.4%
Total: 1,600
Total: 4,660
Female
5.1%
Total: 41
Male
94.9%
Total: 757
Our objective is to recognise and better understand relevant gender issues in our workforce. Our annual
employee engagement survey will assist in achieving this, with the survey results to be utilised to improve our
understanding of gender issues and to develop appropriate education and training programs to address them.
We have engaged an independent organisation that specialises in facilitating workplace engagement
surveys to conduct our employee engagement survey this year. By utilizing an independent external provider,
employees can be confident that the survey is both anonymous and confidential, as well as allowing the survey
feedback to be benchmarked against a portfolio of other large employers. The annual survey is currently
underway and scheduled for completion in the first half of 2022. Survey results will be reviewed, relayed to
employees and action plans developed to act on the feedback. We value feedback from our employees and we
understand that their satisfaction leads to better organisational performance.
We also continue with our gender pay gap analysis each year to ensure all remuneration throughout the group
is based on role and performance, regardless of gender.
2.7.4 Cultural Diversity Recognition
To better understand the diverse demographic of our workforce and ensure that it is representative of our
customers, our objective is to better understand the cultural heritage and diversity of our employees. We aim to
achieve this through our annual employee engagement survey, with the survey results utilised to recognise the
cultural diversity of our workforce and to develop appropriate programs to address any relevant issues.
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 28
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2.8 The Eagers Automotive Foundation
We have a long and proud tradition of supporting local communities, charities and philanthropic organisations
throughout our 109-year history. The Eagers Automotive Foundation provides such support through
engagement with our stakeholders and utilising our growing scale.
The Foundation’s vision is to create a lasting spirit of giving within the Eagers Automotive network for those
in need in our community. It engages with our employees to gather their ideas on which charities and causes
to support.
All administration expenses of the Foundation are paid for by Eagers Automotive Limited, ensuring that 100%
of donations are delivered to intended recipients.
Please refer to Pages 16-17 for further information about our Foundation.
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 30
3. Governance
3.1 Data Security
We take a proactive approach to protecting our customer and employee data.
We believe our data security strategy provides a level of protection above that of most large retail business.
We have applied multiple strategies to reduce the risk of cyber security breaches, including:
• Next-Generation Antivirus protection across all endpoints in the business.
• Strong mail-filter settings.
• Modern firewall and internet gateway.
• Secure remote access mechanisms.
Online cyber-security training is provided for employees. This is combined with internal simulated phishing
undertaken by our security team to prepare staff for real-life cyber-security breaches. An online reporting
mechanism is also available for staff to report suspicious events.
An annual independent review of our cybersecurity practices is also undertaken. In addition, our Internal Audit
team undertakes physical audits of security at dealership locations.
There were no known successful cyber security breaches of our customer and employee data in 2021. Our Next-
Generation Antivirus protection strategy prevented 450 known potential data breaches, while our mail filter
strategy prevented 26.5 million spam or malicious emails from being delivered to mailboxes across the business.
In the event of a data breach, our incident response plan seeks to (i) identify the situation quickly, (ii) minimise
the potential loss, and (iii) importantly, ensure that affected people are notified promptly.
In 2021, there were two reportable data breaches that involved the theft of personally identifiable information
(PII), each involving the theft of physical documents from a dealership. Affected individuals were notified and
procedures were modified to reduce the likelihood of re-occurrence. 630 individuals were affected.
3.2 Ethics and Whistle Blower Policies
We are committed to a culture of honesty and ethical behaviour and have adopted integrity as one of our four
corporate values. This is supported by our Code of Conduct and our Whistleblower and Ethics Policies.
We believe behaving ethically in business extends beyond duties imposed by laws and includes:
• Honesty and loyalty.
• Putting the interest of the Company ahead of personal gain.
• Not being involved in fraudulent, corrupt, illegal, unlawful or dishonest practices.
• Avoidance of deceptive or sharp practices which would reflect unfavourably on the Company.
• Proper use of the Company’s resources and information.
We place great importance in fostering a culture that engages our people to speak up about unethical
behaviour. To this end we have implemented an integrity reporting framework to provide eligible whistleblowers
with a safe avenue to raise concerns confidentially and anonymously. This includes an independently operated
telephone hotline. Employees can choose to report issues directly to their managers or other senior personnel.
These matters are taken seriously and promptly investigated.
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 31
3.3 Anticorruption
3.4 Modern Slavery
Corruption describes a situation where
a benefit is offered or provided, with no
legitimate purpose, and with the intention
to influence a third-party to act in a
particular way.
Our Code of Conduct recognises the risk
of corruption and identifies a number of
situations that may give rise to bribes or
corrupt business dealings, including the
making of political donations or using
donations or sponsorships as a means of
making improper payments.
Employees must report any suspected
bribery or corrupt behaviour to their
manager, other senior personnel or our
whistleblower hotline under the Code
of Conduct. The Code will guide the
investigation process.
Modern slavery describes situations where
coercion, threats or deception are used to
exploit victims and undermine or deprive
them of their freedoms. We recognise the
importance of protecting human rights and
acknowledge the risk that modern slavery
practices may exist within our supply chains.
To this end, we have established a Modern
Slavery working group, as described in our
Modern Slavery Statement. The focus is on
due diligence, identifying risks, responding to
risks, and awareness.
We have surveyed our network of suppliers
to better understand where risks of modern
slavery practices may exist. Although no
specific risks of modern slavery have been
identified to date, we recognise this is a
continuous process.
3.5 Grievance Policies
We place great importance on providing a workplace that is fair and equitable. Employees have the right not
to be bullied, discriminated against or harassed in the workplace. Our Discrimination, Sexual Harassment and
Workplace Bullying Policy outlines the steps employees can take if they feel aggrieved. We are committed to:
• Taking complaints seriously and investigating.
• Not pre-judging any situation.
• Dealing with complaints promptly, fairly, confidentially and impartially.
3.6 Risk Management Framework
We recognise that robust risk management processes and practices, integrated into our work culture, are
important to ensure business risks are managed appropriately.
Our risk management approach aims to improve business performance by ensuring risks (including those
related to climate change) are maintained within acceptable levels. Risks are identified, prioritised and
managed in a way that raises awareness among employees and provides confidence to stakeholders.
The Board oversees our risk governance and is responsible for ensuring a sound system of risk oversight,
management and internal control is in place, including for sustainability-related risks. The Board sets the risk
appetite within which management is expected to operate.
The Audit & Risk Committee monitors, assesses and reports to the Board on the effectiveness of the risk
management system and reviews the group risk register.
The risk register is prepared by management and includes specific risk groups across multiple categories. Risk
management plans and controls for individual risks are developed and implemented by management.
Sustainability risks (including those related to climate change) are identified, assessed, prioritised and
managed within this framework. They are considered in the strategic, legal and social risk categories of the
risk register.
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 32
4. Climate Change
We recognise the seriousness of climate change and the need to look after our environment.
Although we generate a relatively low level of emissions in the operation of our business, we pursue various initiatives across
our network of businesses to reduce our environmental impact. These are described in the Environment section of this Report.
As an intermediary in the sale of vehicles, we acknowledge it is likely that climate change will impact our business in the future.
Risks associated with climate change might be physical as a result of extreme weather or from the impacts of countries or
OEMs transitioning to a carbon-free future.
4.1 Greenhouse Gas Emissions
We measure our Scope 1 and 2 greenhouse gas
emissions in Australia, and these are reported
annually to the Clean Energy Regulator. Scope 1
emissions are direct emissions from sources that
we own or control; whilst Scope 2 emissions are
indirect emissions associated with electricity that
we purchase.
Our Scope 1 and 2 emissions from 1 July 2020 to
30 June 2021 were:
T CO2-e
Scope 1
33,009
Scope 2
29,561
4.2 Management of and Reporting on Climate Change Risk
Our approach to managing climate change risk sits within our Risk Management Framework, as described in
the Governance section of this report.
Reporting on the environmental impact of our business and the various initiatives we undertake to reduce
our environmental footprint, represents only part of the broader impact from climate change. The Task Force
on Climate-related Financial Disclosures (TCFD), a leading standard in climate change reporting, provides
a framework for companies to explain the risks and opportunities that are presented by climate change as
well as speaking to the needs of capital markets for this information. We are reviewing this framework as we
continue the process of gathering data that might be necessary for reporting on the potential future impact of
climate change on our business.
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 33
Appendix A:
SASB Reference Table
TOPIC
ACCOUNTING METRIC
Energy Management in
Retail and Distribution
Total energy consumed
PAGE
20, 32
Description of approach to identifying and addressing data security risks
30, 31
Data Security
(1) Number of data breaches, (2) percentage involving personally identifiable
information (PII), (3) number of customers affected
(1) Average hourly wage and (2) percentage of in-store employees earning
minimum wage, by region
Labour Practices
(1) Voluntary and (2) involuntary turnover rate for in-store employees
Total amount of monetary losses as a result of legal proceedings
associated with labour law violations
30
23
23
24
Workplace Diversity
and Inclusion
Percentage of gender representations for (1) management and
(2) all other employees
27, 28
Product Sourcing,
Packaging and Marketing
Discussion of processes to assess and manage risks and/or hazards
associated with chemicals in products
21, 26, 31
Discussion of strategies to reduce the environmental impact of packaging
21
EAGERS AUTOMOTIVE — 2021 ANNUAL REPORT 34
35
Financial
Report
For the year ended 31 December 2021
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For the year ended 31 December 2021
Contents
Board of Directors
Executive Management
Directors’ Report
Auditor’s Declaration of Independence
Financial Statements 2021
Notes to and Forming Part of the
Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
36
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Board of Directors
Timothy Boyd Crommelin
BCom, FSIA, FSLE
Chairman of Board
Independent Director
Member of Remuneration & Nomination Committee
Independent, non-executive Director since February 2011.
Chairman of Morgans Holdings (Australia) Limited. Director
of Senex Energy Ltd (2010 to present) and Australian Cancer
Research Foundation. Member of University of Queensland
Senate until 31 December 2021. Broad knowledge of corporate
finance, risk management and acquisitions and over 40
years’ experience in the stockbroking and property industry.
Nicholas George Politis
AM, BCom
Director
Non-executive Director since May 2000. Motor vehicle
dealer. Executive Chairman of WFM Motors Pty Ltd,
Eagers Automotive Limited’s largest shareholder. Vast
automotive retail industry experience and Director of a
substantial number of proprietary limited companies.
Dan Thomas Ryan
BEc, MBus, FAICD
Director
Member of Remuneration & Nomination Committee
Non-executive Director since January 2010. Director and
Chief Executive Officer of WFM Motors Pty Ltd, Eagers
Automotive Limited’s largest shareholder. Director of a
substantial number of proprietary limited companies.
Significant management experience in automotive,
transport, manufacturing and retail industries.
David Arthur Cowper
BCom, FCA
Independent Director
Chairman of Audit & Risk Committee
Non-executive Director since July 2012. Chartered
accountant, with more than 35 years in the profession.
Former partner of Horwath Chartered Accountants and
Deloitte Touche Tohmatsu. Former Chairman of Horwath’s
motor industry specialisation unit for six years. Area of
professional specialisation while at Horwath and Deloitte
was in providing audit, financial and taxation services to
public and large private companies in the motor industry.
Marcus John Birrell
Independent Director
Member of Audit & Risk Committee
Non-executive Director since July 2016. Former Director of
Australian Automotive Dealer Association Limited (2014
to 2017). Distinguished career in the automotive industry,
including 38 years at manufacturer, financier and retail level
and 21 years as Executive Chairman of Birrell Motors Group.
Sophie Alexandra Moore
BBus, CA, FFin
Director
Chief Financial Officer
Joined the Company as Chief Financial Officer in August
2015. Appointed as a Director in March 2017. Executive
responsibility for accounting, taxation, internal audit, payroll
and treasury functions. Previous senior finance roles with
PricewaterhouseCoopers and Flight Centre Travel Group
Limited. Admitted as a chartered accountant in 1997.
Gregory James Duncan
OAM, BEc, FCA
Independent Director
Chairman of Remuneration & Nomination Committee
Member of Audit & Risk Committee
Non-executive Director since December 2019. Chairman
of Cox Automotive Australia Board of Management (2016
to present). Director of advisory and investment firm
JWT Bespoke Pty Ltd (2013 to present). Former owner
and Executive Chairman of Trivett Automotive Group,
Australia’s largest prestige automotive business. Former
Director of Automotive Holdings Group Ltd (2015 to 2019).
EAGERS AUTOMOTIVE — Financial Report 2021 Board of Directors continued
Executive Management
37
Keith Thomas Thornton
BEc
Chief Executive Officer (since 24 February 2021)
Commenced with the Company in July 2002. Prior to his
appointment as Chief Executive Officer in February 2021, Keith
had been responsible for the Group’s automotive operations
since June 2007, most recently as Chief Operating Officer
from January 2017 until February 2021. Keith is a licensed
motor dealer with substantial automotive retail and wholesale
experience in volume, niche and prestige industry sectors.
Keith also brought significant industry experience to the
Company, having previously worked for various automotive
manufacturers. Keith is an Alternate Director of Australian
Automotive Dealer Association Limited (2014 to present).
Denis Gerard Stark
LLB, BEc
General Counsel & Company Secretary
Commenced with the Company in January 2008.
Responsible for overseeing the company secretarial,
legal, investor relations and property administration
functions. Previous senior executive and company
secretarial experience with public companies. Admitted
as a solicitor in Queensland in 1994 and Victoria in 1997.
David Scott Blackhall
BCom, MBA, FAICD
Independent Director
Non-executive Director since December 2019. Over half a
century of automotive industry experience with manufacturers,
including at Managing Director level, as dealer principal
and owner of various automotive franchises. Chairman
(since November 2021) and Chief Executive (2016 to 2019) of
Australian Automotive Dealer Association Limited. Managing
Director of corporate advisory firm Raglan Ridge Advisors.
Former Director of Automotive Holdings Group Ltd (2019).
Michelle Victoria Prater
BBus, CPA, ACIS, AICD
Director
Non-executive Director since February 2020. Executive
Chairman of APPL Group (2004 to present), a property
development and investment group with an extensive
automotive property portfolio including significant
properties leased to Eagers Automotive dealerships.
Former executive roles at corporate and operational
levels with Automotive Holdings Group Ltd (1993 to 2004)
including as an executive Director (2002 to 2004).
Martin Andrew Ward
BSc (Hons), FAICD
Director (until 1 March 2021)
Chief Executive Officer and Managing Director
(until 24 February 2021)
Joined the Company in July 2005. Appointed Chief
Executive Officer in January 2006. Appointed Managing
Director in March 2006. Motor vehicle dealer. Director
of Australian Automotive Dealer Association Limited
(2014 to present). Former Chief Executive Officer of Ford
Motor Company’s Sydney Retail Joint Venture.
EAGERS AUTOMOTIVE — Financial Report 2021 38
Directors’ Report
The Directors of Eagers Automotive Limited ABN 87 009 680 013 (“the Company” or “Eagers”) present their report together with the
consolidated financial report of the Company and its controlled entities (“the Group”), for the year ended 31 December 2021 and the
auditor’s report thereon.
Directors
The Directors of the Company at any time during or since the end of the year, and their qualifications, experience and special
responsibilities, are detailed on pages 36 - 37.
Company Secretary
The Company Secretary and his qualifications and experience are detailed on page 37.
Directors’ Meetings
The number of Directors’ meetings (including meetings of committees of Directors) and number of meetings attended by each Director
during the year were:
Board
Meetings
Audit & Risk Committee
Meetings
Remuneration & Nomination
Committee Meetings
Attended
Held
Attended
Held
Attended
Held
12
10
12
12
11
13
13
13
10
2
13
13
13
13
13
13
13
13
13
2
-
-
-
4
4
-
4
-
-
-
-
-
-
4
4
-
4
-
-
-
8
-
7
-
-
-
8
-
-
-
8
-
8
-
-
-
8
-
-
-
Name
T B Crommelin (1)
N G Politis
D T Ryan (1)
D A Cowper (2)
M J Birrell (2)
S A Moore
G J Duncan (1) (2)
D S Blackhall
M V Prater
M A Ward (3)
Principal Activities
The Group’s principal activities during the year consisted of the selling of new and used motor vehicles, distribution and sale of parts,
accessories and car care products, repair and servicing of vehicles, provision of extended warranties, facilitation of finance and leasing
in respect of motor vehicles, and the ownership of property and investments. The products and services supplied by the Group were
associated with, and integral to, the Group’s motor vehicle dealership operations. There were no significant changes in the nature of
the Group’s activities during the year.
Financial & Operational Review
Eagers Automotive Limited (ASX: APE) (“Eagers Automotive” or “the Company”), Australia’s leading automotive retail group, today
announced its results for the twelve months ended 31 December 2021 (FY2021). On a continuing basis, the Company delivered
Underlying Operating Profit Before Tax(4) of $401.8 million, compared to $209.4 million in the prior corresponding period (pcp).
Strong economic conditions and changes in consumer behaviour, primarily in response to the impacts of COVID-19, generated strong
demand for new vehicles, with a 14.5% increase in the new car market(5) compared to the twelve months ended 2020. These market
dynamics are further buoyed by demand continuing to materially outstrip supply, with the Company’s order bank increasing month-
on-month over the last twelve months.
Underlying profit continues to be supported by the ongoing benefits of our material cost out program completed over the last 18 months.
Statutory Net Profit After Tax (including discontinued operations) for FY2021 was $330.7 million, compared to a profit of $156.2 million
in FY2020. On a statutory basis (excluding discontinued operations), the Company recorded a Statutory Net Profit Before Tax from
continuing operations of $456.8 million for FY2021 compared to a Statutory Net Profit Before Tax of $280.1 million in the pcp. The
FY2021 statutory result included significant items totalling $55.0 million net income before tax, predominately relating to the gain on
sale of assets totalling $42.9 million, offset by non-cash impairments of $5.2 million associated with the revaluation of a property.
(1) Remuneration & Nomination Committee members
(2) Audit & Risk Committee members
(3) Mr Ward ceased as a Director on 1 March 2021
(4) Underlying operating results refers to continuing operations, adjusted for significant items outlined and reconciled to statutory results on slides 34 (FY2021)
and 35 (comparative financial information) of the Investor Presentation. Underlying operating figures are non-financial measures and have not been
subject to audit by the Company’s external auditors.
(5) According to Federal Chamber of Automotive Industry (FCAI) statistics sourced through VFACTS.
EAGERS AUTOMOTIVE — Financial Report 2021 39
Full Year to
December 2021
$ Million
Full Year to
December 2020
$ Million
8,663.5
651.6
456.8
330.7
70.9
8,663.5
455.9
401.8
288.9
8,749.7
625.5
280.1
156.2
25.0
8,749.7
284.2
209.4
140.4
Key Financial Highlights from Continuing Operations
Statutory Results
Revenue
EBITDAI (1)
Statutory Profit Before Tax
Statutory Profit After Tax
Total Dividend per Share – cents
Underlying Operating Results (2)
Underlying Revenue (2)
Underlying EBITDAI (1)
Underlying Profit Before Tax (2)
Underlying Profit After Tax (2)
Dividend
The Board has approved payment of an ordinary final dividend of 42.5 cps fully franked for the year (FY2020: 25.0 cps). The ordinary
final dividend has been approved for payment on 20 April 2022 to shareholders who are registered on 1 April 2022 (Record Date). When
combined with the ordinary interim and special dividends paid in October 2021, the total dividend based on FY2021 earnings is 70.9 cps
(FY2020: 25.0 cps) fully franked.
The dividends reflect a payout ratio of 57% on the attributable Statutory Net Profit After Tax (including discontinued operations) and
65% on the attributable Underlying Operating Profit After Tax(2) for the twelve months ended 31 December 2021. The payout reflects
the Board’s confidence in the strength of the Eagers Automotive business and future strategy, balanced with the desire to ensure the
Company has the capacity and flexibility to invest in restructuring and growth initiatives while maintaining a prudent approach to
managing through the ongoing uncertainty of the COVID-19 environment.
The Company’s dividend reinvestment plan (DRP) will not operate in relation to the final dividend.
Dividends paid to members during the year under review were as follows:
Year ended 31 December
Final ordinary dividend for the year ended 31 December 2020 of 25.0 cents (2019: 11.25 cents) per share
paid on 20 April 2021
Interim ordinary dividend for 2021 of 20.0 cents (2020: nil cents) per share paid on 15 October 2021
Special dividend of 8.4 cents (2020: nil) per share paid on 15 October 2021
2021
$’000
2020
$’000
64,233
28,905
51,387
115,620
21,582
137,202
-
28,905
-
28,905
(1) EBITDAI means earnings before interest, tax, depreciation, amortisation and impairment.
(2) Underlying operating results refers to continuing operations, adjusted for significant items outlined and reconciled to statutory results on slides 34 (FY2021)
and 35 (comparative financial information) of the Investor Presentation. Underlying operating figures are non-financial measures and have not been
subject to audit by the Company’s external auditors.
EAGERS AUTOMOTIVE — Financial Report 2021Directors’ Report continued
40
External Environment
Financial Performance
The new car market continues to be driven by strong consumer
demand, with favourable economic conditions and changes in
social trends and consumer behaviour contributing to a strong
recovery relative to the prior period, which was heavily impacted
by the onset of the COVID-19 pandemic. According to Federal
Chamber of Automotive Industry (FCAI) statistics, the new car
market was up 14.5% compared to FY2020.
The larger markets of Queensland, New South Wales and Victoria
recorded sales increases of 17.4%, 8.6% and 20.4% respectively.
Other markets also recorded increases, with South Australia up
14.2%, Western Australia up 18.7% and Tasmania up 18.4%.
Strategic Developments
During the period, the Company made substantial progress with
its Next100 Strategy across a number of key areas including:
• Expansion of our fixed price, pre-owned easyauto123 business
on a more efficient cost base, including new sites in Sydney,
Townsville and multiple new locations in Auckland;
• Development of integrated technology solutions leading to an
acceleration in online capability across the entire end-to-end
online customer experience, providing a platform for organic
growth in online sales and productivity gains through the
integration with instore processes and back-office systems;
• Completion of the sale of the Daimler Truck business on 30
April 2021;
• Acquisition of Toowoomba Ford and the Kelly Trotter Motor
Group and Heritage Motor Group, both of which are multi
franchised dealership groups in Cardiff and Maitland NSW.
All three acquisitions included the purchase of strategically
located properties, with a number of the properties settling
in FY2022, which will enable future consolidation with existing
dealership in these regions; and
• Continued execution of our property strategy with a
combination of exiting leased properties, strategic property
acquisitions (including previously leased property) and
investment in new, transformed and consolidated automotive
retail formats, such as AutoMall West in Indooroopilly
Shopping Centre in West Brisbane.
Progress against our strategy, combined with maintaining our
disciplined focus on cost base, has underpinned our record
financial results and sustainable Return on Sales performance.
Statutory and Underlying(1) revenue from continuing operations
decreased by 1.0% to $8,663.5 million, with the marginal decline
driven by the divestment of our Daimler Truck business in April
2021. On a like-for-like basis Statutory and Underlying(1) revenue
from continuing operations increased by 6.5% to $8,390.0
million. In both periods revenue was impacted by the COVID-19
pandemic and supply constraints.
EBITDAI(2) from continuing operations increased to $651.6
million in FY2021 (FY2020: $625.5 million). Underlying(1)
EBITDAI(2) increased to $455.9 million in FY2021 (FY2020:
$284.2 million). Profit margins increased as indicated by
the Underlying(1) operating EBITDAI(2)/Revenue ratio of 5.3%
(FY2020: 3.2%), with a comparable increase in Underlying(1)
operating NPBT(3)/Sales ratio of 4.6% (FY2020: 2.4%).
The strong margins predominately reflect the ongoing
benefits of our material cost out program completed over
the last 18 months, supported by market dynamics.
Statutory borrowing costs from continuing operations
decreased by 10.0% to $79.6 million (FY2020: $88.4 million),
driven by a reduction in lease liabilities resulting from the sale
of the Daimler Truck business. Underlying(1) borrowing costs
decreased by 12.0% to $30.9 million for FY2021 (FY2020: $35.1
million), reflecting Group bailment charges benefiting from a
reduction in inventory and associated bailment levels. Included
within statutory borrowing costs is interest expense recognised
in accordance with AASB 16 Leases of $48.7 million (down from
$53.3 million in the pcp).
Statutory depreciation and amortisation charges from
continuing operations decreased by 27.6% to $120.4 million
for FY2021 (FY2020: $166.3 million), driven by a reduction in
the right-of-use asset resulting from the sale of the Daimler
Truck business and prior year impairments. Underlying(1)
depreciation and amortisation charges decreased by 41.7% to
$23.2 million for FY2021 (FY2020: $39.8 million). The decrease is
predominately driven by the sale of the Daimler Truck business
and its associated buy back commitments. Included within the
statutory depreciation expense is an additional $97.2 million
of depreciation expense recorded in accordance with AASB 16
(down from $126.5 million in the pcp).
Segments
The Car Retailing Segment(4) delivered an Underlying(1) Operating
Profit Before Tax of $388.4 million, an increase of $189.0 million
compared to $199.4 million in FY2020. The profit performance
reflects the first full year contribution to a reporting period from
significant permanent cost reductions in response to COVID-19,
supplemented by strong market dynamics. The increase is
reflected across all regions in Australia and New Zealand.
Performance across both periods was impacted by Government
lockdowns, particularly in April and May 2020 – the peak impact
of COVID-19 restrictions and in the second half of 2021. The Car
Retailing Segment(4) recorded a Statutory Profit Before Tax from
continuing operations of $403.0 million compared to a profit of
$272.7 million in FY2020.
(1) Underlying operating results refers to continuing operations, adjusted for significant items outlined and reconciled to statutory results on slides 34 (FY2021)
and 35 (comparative financial information) of the Investor Presentation. Underlying operating figures are non-financial measures and have not been
subject to audit by the Company’s external auditors.
(2) EBITDAI means earnings before interest, tax, depreciation, amortisation and impairment.
(3) NPBT means Net Profit Before Tax
(4) Car Retailing segment includes reallocation of Hino and Iveco operations in 2021, previously reported in Truck Retailing in 2020.
EAGERS AUTOMOTIVE — Financial Report 2021Directors’ Report continued Continued focus on our fixed price, pre-owned strategy
via the easyauto123 business, with operations across
Australia and New Zealand, is delivering strong results. The
easyauto123 business delivered a strong performance for
the year ended 2021, despite the impacts of lockdowns in key
regions. The significant improvement in financial performance
demonstrated across all key metrics, was underpinned by
a more efficient cost base and the benefits from scale and
integration into the wider business.
Car Retailing Statutory and Underlying(1) revenue from
continuing operations increased by 8.6% to $8,438.3 million
(FY2020: $7,776.5 million), with FY2020 reflecting the peak impact
of COVID-19 restrictions. On a like-for-like basis(2), Car Retailing
Statutory and Underlying(1) revenue from continuing operations
increased by 6.4% to $8,035.5 million (FY2020: $7,553.8 million).
The Truck Segment(3) delivered an Underlying(1) Operating Profit
Before Tax of $4.6 million, a decrease compared to $19.8 million
in FY2020, reflecting the sale of the Daimler Truck business on
30 April 2021 and reallocation of Iveco and Hino operations to
Cars retailing in 2021.
The Statutory Profit Before Tax from continuing operations
was $39.2 million, compared to a profit of $23.5 million in
FY2020 and was impacted by the gain on sale of the Daimler
Truck business.
The property portfolio value increased to $432.5 million as at 31
December 2021 (excluding assets held for sale) compared with
$356.5 million at 31 December 2020 and $409.2 million at 30
June 2021. The increase is due to the deliberate and ongoing
rebalance of the property portfolio. The movement for the period
included the acquisition of 10 strategic sites during the period,
offset by the $5.2 million revaluation decrement in our property
portfolio and the sale of 11 non-core properties during the period.
A vacant non-core property is classified as held for sale at 31
December 2021, with settlement expected February 2022.
The Property Segment recorded an Underlying(1) Operating Profit
Before Tax of $12.6 million (excluding impairment and gains
on sale), up $8.6 million on the pcp. The increase in underlying
profit was driven by the internal rental income generated on
strategically located properties acquired during the year,
partially offset by the reduction in internal rental income from a
number of properties divested in 2021.
The Property Segment recorded a Statutory Profit Before Tax
of $18.4 million for FY2021 compared to a loss of $4.1 million in
the pcp. The movement was driven by gains on sale of non-core
property, partially offset by a loss on revaluation of a property.
41
Financial Position
Eagers Automotive is in a very strong financial position
underpinned by a substantial property portfolio and asset base,
together with $733.1 million of available liquidity at 31 December
2021. This liquidity position includes available cash and undrawn
commitments under our corporate debt facilities.
Corporate debt (Term and Capital loan facility) net of cash
on hand decreased to $128.4 million as at 31 December 2021,
marginally down from $129.3 million at 31 December 2020. During
the period, the debt profile of the Company was rebalanced
through the refinancing of our syndicated debt facility on longer
tenor whilst simultaneously repaying all debt drawn under the
facility, and the utilisation of favourable long term fixed price
financing to fund strategic property acquisitions.
The Group’s leverage metrics are in a very strong position,
with the gearing ratio at 0.28 times (FY2020: 0.29 times) and
the capitalisation ratio at 8.9% (FY2020: 9.7%), excluding
discontinued operations, vehicle bailment and lease liabilities.
Total inventory levels decreased to $874.0 million as at 31
December 2021, down from $1,025.8 million at 31 December 2020.
The decrease in inventory and associated floorplan is primarily
due to the sale of the Daimler Truck business. Inventory levels
continue to be impacted by a combination of global supply
chain dynamics and management’s initiatives in response to
COVID-19. Eagers Automotive continues to maintain a significant
equity ownership in used vehicle inventory.
The Company continues to focus on cash management,
retaining a strong cash position of $197.6 million as at 31
December 2021 driven by strong operating cash flows of
$302.7 million, supplemented by investing activities of
$137.5 million, enabling a net reduction in corporate debt,
acquisition of property and businesses and payment of
dividends. On a like-for-like basis, adjusting for COVID-19
impacts, discontinued operations and AASB 16, net cash
from operating activities for the period was $312.8 million
compared to $193.5 million in the pcp.
Please note that the operating cash flows for the twelve months
ended 31 December 2020 included a number of extraordinary
actions to fortify our cash position in response to COVID-19,
including but not limited to liquidating equity owned stock,
which we have rebuilt in 2021, and the receipt of government
wage subsidies.
The balance sheet reflects a net current asset position of $30.4
million as at 31 December 2021, compared to a net current
liability position of $102.8 million at 31 December 2020. Our
net current asset position is impacted by the application of
the new lease standard which results in the recognition of a
$132.5 million net current lease liability as at 31 December 2021,
reflecting property rental charges for the next 12 months. This
commitment was recorded off balance sheet under the previous
accounting standard.
Removing the impact of the new lease standard results in a
net current asset position for the Group of $162.9 million at 31
December 2021.
(1) Underlying operating results refers to continuing operations, adjusted for significant items outlined and reconciled to statutory results on slides 34 (FY2021)
and 35 (comparative financial information) of the Investor Presentation. Underlying operating figures are non-financial measures and have not been
subject to audit by the Company’s external auditors.
(2) Like-for-like Car Retailing revenue excludes Hino and Iveco operations in 2021, and other divested operations.
(3) Car Retailing segment includes reallocation of Hino and Iveco operations in 2021, previously reported in Truck Retailing in 2020.
EAGERS AUTOMOTIVE — Financial Report 2021Directors’ Report continued 42
Outlook
Despite the ongoing supply chain constraints and temporary
disruption to logistics and resourcing experienced in early 2022
as a result of the Omicron outbreak, unusually strong demand
continues in all regions across both Australia and New Zealand.
Eagers Automotive has a strong balance sheet and fortified
liquidity position, providing the flexibility and capacity to
capitalise on transformation and consolidation opportunities,
and invest in targeted organic growth initiatives and
acquisition opportunities as it accelerates execution of the
Next100 Strategy.
In the near term, Eagers Automotive is focused on delivering
improved operational performance through:
• Leveraging current strong market conditions, disciplined
management of operations and implementation of integrated
technology solutions to drive increased efficiency, productivity
and a greater customer experience;
• Accelerating the scaling of easyauto123 through dedicated
sourcing channels, large format, factory style reconditioning
centres and the rollout of integrated technology solutions
that underpin an omni-channel offering, driving growth in
volume, fractionalising cost and delivering an enhanced
customer experience; and
• Executing our property strategy through the redevelopment
of recently acquired strategic properties and further progress
on our AutoMall strategy to transform and consolidate our
automotive retail formats and deliver an enhanced customer
experience on a substantially lower cost base.
In the short to medium term, the Group is focused on driving EPS
growth by prioritising the following initiatives:
• Continuing to drive operational efficiencies across all aspects
of our business through a whole of Company focus on
delivering the Next100 Strategy;
Matters Subsequent to the End of the
Financial Year
The Directors are not aware of any matter or circumstance not
dealt with in this report or the consolidated financial report
that has arisen since the end of the year under review and has
significantly affected or may significantly affect the Group’s
operations, the results of those operations or the state of affairs
of the Group in future financial years.
Environmental Regulation
The Group’s property development and service centre
operations are subject to various environmental regulations.
Environmental licences are held for particular underground
petroleum storage tanks.
Planning approvals are required for property developments
undertaken by the Group in relevant circumstances. Authorities
are provided with appropriate details and to the Directors’
knowledge developments during the year were undertaken in
compliance with planning requirements in all material respects.
Management works with regulatory authorities, where
appropriate, to assist compliance with regulatory requirements.
There were no material adverse environmental issues during the
year to the Directors’ knowledge.
Remuneration Report
Contents of Remuneration Report
1.
Introduction and Key Management Personnel (KMP)
2. Remuneration strategy and principles
3. Remuneration governance
4. FY21 business performance
5. Executive remuneration framework for FY21
43
43
44
43
45
46
48
48
49
50
• Creating shareholder value by accelerating the growth of our
6. Remuneration structure and outcomes for FY21
7. Remuneration framework changes for FY21
8. Executive contractual arrangements
9. Non-executive Director remuneration
10. Statutory disclosures
easyauto123 business as the dominant player in the pre-
owned car market across Australia and New Zealand;
• Leveraging our point-of-sale advantage, technology
investments and a favourable credit market to continue
pursuing growth in our finance penetration levels; and
• Capitalise on the transformation and consolidation of the
automotive retail industry through a focus on accretive
acquisition opportunities, selected rationalisation of our
dealership portfolio and complementary consolidation that
supports our strategic mandate.
Significant Changes in the State of Affairs
In the Directors’ opinion there was no significant change in the
state of affairs of the Group during the financial year that is not
disclosed in this report or the consolidated financial report.
EAGERS AUTOMOTIVE — Financial Report 2021Directors’ Report continued 43
1.
Introduction and Key Management Personnel (KMP)
This report outlines the remuneration arrangements for the Company’s KMP, which include Directors and executives who have
authority and responsibility for planning, directing and controlling the activities of the Group.
The information provided in this report has been prepared in accordance with the requirements under the Corporations Act 2001 (“the
Act”) and relevant Accounting Standards. This report forms part of the Directors’ Report and unless otherwise indicated the following
sections have been audited in accordance with section 308 (3c) of the Corporations Act 2001.
The KMP for FY21 were:
Name
Non-executive Directors (NEDs)
Tim Crommelin
Nick Politis
David Cowper
Dan Ryan
Marcus Birrell
Greg Duncan
David Blackhall
Michelle Prater
Executive Directors
Martin Ward
Position
Chair
Director
Director
Director
Director
Director
Director
Director
Term as KMP in FY21
Full year
Full year
Full year
Full year
Full year
Full year
Full year
Full year
Chief Executive Officer (until 24 February 2021),
Director (until 1 March 2021)
Part year – 1 January to 1 March 2021
Sophie Moore (CFO)
Executive Director, Chief Financial Officer
Full year
Other Executive KMP
Keith Thornton (CEO)
Chief Operating Officer (until 24 February 2021),
Chief Executive Officer (from 24 February 2021)
Denis Stark (GCCS)
General Counsel & Company Secretary
Full year
Full year
There have been no changes to KMP since the reporting date.
2. Remuneration strategy and principles
The Company’s remuneration strategy and principles, which guide our remuneration framework, are outlined below.
Our Remuneration Principles
Aligned to the
Next100 Strategy
Linked to the achievement
of long-term financial and
non-financial objectives
Drive equity
ownership
Linked to long-term value
creation for shareholders
Simplicity
Flexibility
Easily explained to and
understood by internal and
external stakeholders
Enables the Board to apply
appropriate judgement
where in the interests of the
Company to do so, with the
rationale to be disclosed
transparently where
discretion is used
Our Remuneration Strategy
Remuneration packages are intended to reflect the individual’s duties and responsibilities, be competitive
in attracting and retaining quality talent and be aligned to shareholder interests.
EAGERS AUTOMOTIVE — Financial Report 2021Directors’ Report continued 44
3. Remuneration governance
The Company’s remuneration governance structure provides oversight of the Company’s remuneration practices and policies.
The following diagram illustrates the remuneration governance framework.
Board
The Board is responsible for approving and reviewing the remuneration
arrangements for NEDs and the CEO, based on recommendations of the
Remuneration & Nomination Committee. The Board also reviews the CEO’s
performance on a continual basis.
Remuneration & Nomination Committee
The Remuneration & Nomination Committee reviews and makes
recommendations to the Board regarding NED and CEO remuneration
arrangements and KMP equity plans. These reviews take place at least
annually, taking into account relevant factors including market conditions.
Management
The CEO, in consultation with the Chair of the Remuneration & Nomination
Committee, sets and reviews the remuneration arrangements of other
executive KMPs ensuring the appropriateness of their reward framework
and reviews their performance at least annually.
Remuneration advisors
External advisors may be engaged
directly by the Board or through
the Remuneration & Nomination
Committee to provide advice or
information relating to KMP that is free
from the influence of management.
As reported last year, KPMG was
engaged in FY20 and early FY21 to
assist with a remuneration review,
changes to the executive remuneration
framework and benchmarking.
KPMG’s engagement did not
involve providing any remuneration
recommendations as defined by the
Corporations Act 2001.
4. FY21 business performance
During FY21, despite an unusual and challenging external environment, the Company achieved strong growth in respect of key
financial and non-financial metrics, which has been reflected in our strong financial results and share price performance.
STATUTORY
NPAT
$330.7
MILLION
EARNINGS
PER SHARE
125.2
CENTS
DIVIDENDS
PER SHARE
70.9
CENTS
12-MONTH
TOTAL
SHAREHOLDER
RETURN
5.1%
The table below details Eagers’ performance against key financial and operational metrics for the five-year period ended
31 December 2021.
Name
Statutory net profit after tax (NPAT) ($ million)
Statutory earnings per share (EPS) – basic (cents)
Dividend per share (cents)
Share price at year end ($)
2021
330.7
125.2
70.9
13.44
2020
156.2
57.6
25.0
13.29
2019
(139.6)
(67.4)
25.3
10.24
2018
97.5
50.1
36.5
6.00
2017
98.2
50.3
36.0
7.97
EAGERS AUTOMOTIVE — Financial Report 2021Directors’ Report continued 45
5. Executive remuneration framework for FY21
Total Fixed Remuneration (TFR)
Short-Term Incentives (STI)
Long-Term Incentives (LTI)
• Each executive KMP receives
a competitive base pay (plus
superannuation) to reflect the
market for a comparable role.
• Base pay is reviewed annually and
on promotion to ensure it remains
competitive with the market.
• Benefits may include use of motor
vehicles, health insurance, and
health and fitness programs.
Commission Plan for COO
• The COO prior to his appointment as CEO in February 2021,
New LTI Plan
• As referred to in last year’s
Remuneration Report, a new LTI plan
was introduced for executive KMP in
FY21 (LTI Plan).
• Delivered in options with an exercise
price of $12.32 per option. (This was the
share price on the initial grant date).
• Focus on creation of shareholder
value by rewarding the achievement of
financial performance hurdles.
• Two financial performance hurdles
must be achieved for any options
to vest.
• Performance is measured at the end
of four-year period (FY21 to FY24).
• Financial hurdles:
• Interest cover ratio of 2.5 times; and
• Compound annual growth in EPS
above the Baseline:
• 50% of options vest at 9.0% EPS
growth over the four-year period.
• 100% of options vest at 10% EPS
growth over the four-year period.
• For CEO, maximum award is up to
50% of base pay per annum over the
four-year period, subject to the two
financial hurdles.
• For CFO, maximum award is up to
17% of base pay per annum over the
four-year period, subject to the two
financial hurdles.
• For GCCS, maximum award is up to
6% of base pay per annum over the
four-year period, subject to the two
financial hurdles.
• If options vest at end of the four-year
period, and are exercised, they will
convert to ordinary shares with no
holding lock.
• Options for the four-year period were
allocated on the initial grant date, with
the number of options determined
using ‘fair value’ methodology.
• If employment ceases, all unvested
options will lapse, unless the Board
determines otherwise.
participated in a commission plan as described in last year’s
Remuneration Report.
• Under the Commission Plan, the COO received a percentage of
net profit before tax of relevant business units. This had a direct
link to the Company’s financial performance and is commonly
used for senior management in the automotive industry, where
fixed remuneration is set relatively low and variable remuneration
forms a larger proportion of the remuneration mix.
• The Commission Plan ceased at the end February 2021.
New STI Plan
• A new STI plan was introduced for executive KMP in FY21
(STI Plan).
• Delivered in a mix of cash and performance rights.
• Focus on creation of shareholder value by rewarding the
achievement of both financial and non-financial performance
hurdles.
• Performance is measured annually over the four-year period
(FY21 to FY24).
• If rights vest, they convert to ordinary shares subject to holding
lock until 28 February 2025 or cessation of employment.
• Rights for the four-year period were allocated on the initial grant
date, with the number of rights determined using ‘fair value’
methodology.
• If employment ceases, there will be no STI payment or vesting of
rights for the year in which employment ceases, unless the Board
determines otherwise.
CEO
• Non-financial hurdles - up to one-third of base pay, by cash
payment, with 50% subject to strategic hurdles and 50% subject
to sustainability hurdles.
• Financial hurdles – up to two-thirds of base pay, by a mix of cash
payment and rights, subject to two financial hurdles (both of
which must be achieved):
• Interest cover ratio of 2.5 times; and
• Compound annual growth in underlying EPS above baseline
EPS of 52.0 cents for FY20 (Baseline):
• At 7.0% EPS growth, $200,000 in cash and $200,000 of rights
will vest.
• At 7.5% EPS growth, a further $200,000 of rights will vest.
• At 8.0% EPS growth, a further $200,000 of rights will vest.
CFO
• Cash payment of up to one-third of base pay, subject to non-
financial and financial performance hurdles:
• Non-financial hurdles - 75% of STI payment subject to
strategic and sustainability hurdles (split evenly between
strategic and sustainability).
• Financial hurdles – 25% of STI payment subject to financial
hurdle of 8% compound annual growth in underlying EPS above
the Baseline.
GCCS
• Cash payment of up to 29% of base pay, subject to non-financial
and financial performance hurdles:
• Non-financial hurdles - 80% of STI payment subject to
strategic and sustainability hurdles (split evenly between
strategic and sustainability).
• Financial hurdles – 20% of STI payment subject to financial
hurdle of 7% compound annual growth in underlying EPS above
the Baseline.
• Performance rights of up to 12% of base pay, subject to two
financial hurdles:
• Interest cover ratio of 2.5 times; and
• Compound annual growth in underlying EPS above the Baseline:
• At 7.5% EPS growth, $25,000 of rights vest.
• At 8.0% EPS growth, a further $25,000 of rights vest.
EAGERS AUTOMOTIVE — Financial Report 2021Directors’ Report continued 46
6. Remuneration structure and outcomes for FY21
As reported in the finance and operational review section of this Directors‘ Report, the Company delivered strong results against key
financial and non-financial metrics for FY21. The following are details of the FY21 remuneration structures and outcomes awarded to
executive KMP based on both Company and individual performance.
(a) STI Plan - performance outcomes for FY21
Design feature
Eligibility
Instrument
Performance period
Maximum opportunity
Performance measures
Further detail
Executive KMP.
A mix of cash and performance rights, as described in section 5 of this report.
Performance is measured annually over the four-year period FY21 to FY24.
As described in section 5 of this report.
The Board, following review by the Remuneration & Nomination Committee, approved the achievement
of the financial performance hurdles of all executive KMP, the achievement of the CEO’s non-financial
performance hurdles and the CEO’s STI payment.
The CEO, in consultation with the Remuneration & Nomination Committee, approved achievement of
the non-financial performance hurdles of the other executives.
Achievement of the financial performance hurdles was determined with reference to the Company’s
annual growth in underlying EPS and interest cover performance hurdles, as described in section 5 of
this report, having regard to the Group’s audited financial statements.
Achievement of the non-financial performance hurdles was determined with reference to achievement
of individual performance and engagement against various strategic and sustainability hurdles,
including in these areas:
• Strategic performance hurdles
• for the CEO, achievement through leading specific progress against our Next100 Strategy,
maximising franchised automotive outcomes via organic and acquisitive growth opportunities, and
maximising used car business growth opportunities via a defined expansion roadmap.
• for the CFO, achievement through contributions towards specific progress against our Next100
Strategy, managing key financial measures for anticipated requirements while positing the
Company for Next100 execution, and leading key acquisitions and divestments to completion
balancing the desired outcomes with appropriate commerciality.
• for the GCCS, achievement through contributions towards specific progress against our Next100
Strategy, key acquisitions and divestments to completion balancing the desired outcome with
appropriate commerciality, and establishing legal/corporate framework for growth ambitions and
Next100 Strategy.
• Sustainability performance hurdles
• for the CEO, achievement through driving group-wide stakeholder engagement, roadmap for key
sustainability initiatives including Environmental, Social, and Governance (ESG) and diversity, and
group-wide operational adherence to relevant regulatory and contractual requirements.
• for the CFO, achievement through organisational compliance with accounting and taxation
obligations, finalisation of nominated projects, and operational adherence to relevant regulatory
and contractual requirements.
• for the GCCS, achievement through advisory in respect of operations, sustainability/ESG initiatives,
corporate governance and corporate values, an environment of high transparency, ethics and
integrity, and operational adherence to relevant regulatory and contractual requirements.
EAGERS AUTOMOTIVE — Financial Report 2021Directors’ Report continued 47
6. Remuneration structure and outcomes for FY21 (continued)
(a) STI Plan - performance outcomes for FY21 (continued)
Executive KMPs received 100% of their STI Plan awards for FY21 following assessment by the Board, Remuneration & Nomination
Committee and the CEO, as described in section 5 of this report. It was considered that no reduction to maximum entitlements was
warranted based on review of the individual’s performance during the year against these measures.
Performance included continuing simplification of the Group’s businesses to focus on core automotive retail, successful sale of
the Daimler Truck Division, cost-out program, proactive and successful response to ongoing issues arising from the ongoing global
health crisis, and continuing reorganisation and optimisation of businesses and property portfolio to provide greater flexibility for
implementation of our omni-channel approach. Individual performances in these areas were considered, as were their contributions to
ensuring the Company’s long-term success post COVID-19. In these circumstances, payment of the full STI awards was determined to
be appropriate, particularly in light of the Company’s record 2021 operational and financial performance.
CEO
CFO
GCCS
% awarded for FY21
under STI Plan
100%
100%
100%
STI paid
$600,000
$200,000
$125,000
Rights vested
50,463
-
4,205
(b) COO Commission Plan - performance outcomes for FY21
Design feature
Eligibility
Instrument
Performance period
Opportunity
Name
COO
(c) LTI Plan for FY21
Further detail
COO only (and only for the months of January and February 2021, prior to his appointment as CEO).
Cash.
January and February 2021. This plan ceased to apply at end of February 2021.
The commission amount was set as a percentage of net profit before tax of the relevant business units.
This award, whilst uncapped, had a direct link to Company financial performance and is a structure
commonly found for senior operations executives in the automotive industry, where fixed remuneration
is set relatively low and variable remuneration forms a larger proportion of the remuneration mix.
Percentage of net profit before tax
Total Commission paid for FY21
(January and February only)
A percentage of the national cars division total net profit before tax.
$235,918
A new LTI plan was introduced for FY21, as detailed in section 5 of this report, for better alignment with ASX200 market practice.
(d) No Retention Grants in FY21
No equity retention grants were made in FY21.
As reported in our previous Remuneration Reports, a one-off equity retention grant was awarded in early 2020 to recognise the CFO’s
importance to the ongoing success of the Company. As previously disclosed, the Board had sought to balance the expectations of
external stakeholders and the need to retain key talent in the longer term by ensuring the grant was delivered wholly in equity and
subject to continued employment and a disposal restriction but without any performance conditions. More detail on the grant is
provided in the following table. There were no equity retention grants made in FY21.
Design feature
Eligibility
Instrument
Grant date
Vesting period
Restriction period
Opportunity
Allocation methodology
Further detail
CFO only.
Restricted Shares.
17 February 2020.
• 30% vested immediately on grant.
• 35% vested on 31 December 2020.
• 35% vested on 31 December 2021.
All vested shares are subject to a disposal restriction until April 2025 or cessation of employment.
$1,019,664.
Face value.
Vesting conditions
Continued employment until the vesting date.
EAGERS AUTOMOTIVE — Financial Report 2021Directors’ Report continued 48
7. Remuneration framework changes for FY21
A comprehensive review of the executive remuneration framework was undertaken in FY20 in response to the ‘first strike’ received at
our 2020 Annual General Meeting. The Board engaged with shareholders, proxy advisors and other stakeholders to better understand
their concerns and also obtained independent external advice in FY20 in relation to our remuneration framework.
As a result, many changes were made to the remuneration framework for FY21 and these are reflected in our new STI Plan and LTI
Plan, as described in section 5 of this report. Our remuneration framework is now better aligned with ASX200 market practice, while
maintaining a strong pay-for-performance culture.
STI
• A new remuneration framework was introduced for FY21.
Key Changes to Remuneration Framework
• Greater disclosure on the new STI framework and performance measures is included in this Remuneration Report.
• The STI Plan for FY21 was assessed against both financial and non-financial performance hurdles and was awarded in a mix of
cash and equity.
• There is no re-testing of STI performance hurdles.
LTI
• A new LTI plan was introduced for FY21 with a performance period of four years and awarded wholly in equity.
• Clear LTI performance hurdles were set for the four-year performance period, assessed wholly against financial measures with
graduated vesting.
• There is no re-testing of LTI performance hurdles.
• The new LTI plan includes appropriate change-in-control and claw-back provisions in line with market practice.
OTHER
• This Remuneration Report includes improved transparency and disclosure in relation to the remuneration framework and structures.
• No equity retention grants were made during FY21.
• The Board did not award any one-off bonuses for FY21.
8. Executive contractual arrangements
Executive KMP are employed under common employment agreements. Any termination benefits would be subject to compliance with
the limits set by the Corporations Act 2001.
The following table details the contractual terms for executive KMP.
Name
CEO
CFO
GCCS
Duration of
service agreement
Notice period
by employee
Ongoing
Ongoing
Ongoing
12 months
3 months
3 months
Notice period
by company
12 months
3 months
3 months
Payments upon
termination
At the Board’s discretion
At the Board’s discretion
At the Board’s discretion
EAGERS AUTOMOTIVE — Financial Report 2021Directors’ Report continued 49
9. Non-executive Director remuneration
The objectives of the Company’s policy regarding Non-executive Director (NED) fees are:
• to preserve the independence of NEDs by not providing them with any performance-related remuneration. NEDs do not participate
in schemes designed for the remuneration of executives, equity schemes, incentive programmes or retirement allowance
programmes, nor do they receive performance-based bonuses.
• to be market competitive with regard to NED fees, which are reviewed annually.
NED fees are limited to a maximum aggregate amount approved by shareholders, with the current limit of $1,000,000 per annum
having been approved at the 2020 Annual General Meeting.
All NEDs receive a single fee based on their position, without any extra fees payable for sitting on Committees.
NED fees for FY21 were as reflected in the following table (exclusive of superannuation).
Role
Chair of the Board
Chair of the Audit & Risk Committee
Other NEDs
NED fees for FY22 are as reflected in the following table (exclusive of superannuation).
Role
Chair of the Board
Chair of the Audit & Risk Committee
Chair of the Remuneration & Nomination Committee
Other NEDs
Fees
$100,000 per annum
$100,000 per annum
$85,000 per annum
Fees
$125,000 per annum
$115,000 per annum
$115,000 per annum
$100,000 per annum
EAGERS AUTOMOTIVE — Financial Report 2021Directors’ Report continued 50
10. Statutory disclosures
Statutory remuneration disclosures are prepared in accordance with the Corporations Act 2001 and Australian Accounting Standards
and include share-based payments expensed during the financial year, calculated in accordance with AASB 2 Share-based Payment.
(a) Executive KMP in FY20 and FY21
Table 1 – Statutory Table of executive KMP remuneration
Short-term benefits
Post employment benefits
Share-based payments
Salary &
fees
($)
Bonus &
commission
($)
Year
Non-
monetary
& other
benefits 1
($)
Superannuation
($)
Other post-
employment
benefits
($)
Performance
rights &
options 2
($)
Performance-
related
percentage
(%)
Total
($)
2021
1,050,000
835,918 3
233,638
25,000
2020
2021
2020
2021
2020
275,000
1,082,316 4
591,667
200,000
458,333
150,000
412,500
125,000
320,833
105,000
2021 5
200,000
2020
1,109,144
-
-
119,812
23,334
24,880
40,031
15,217
(9,628)
155,798
2021
2,254,167
1,160,918
287,375
2020
2,163,310
1,337,316
315,707
21,348
22,631
21,348
22,631
21,348
4,167
25,000
74,429
89,044
-
-
-
-
-
-
-
-
-
1,850,005
3,994,561
-
1,498,475
450,216
1,287,848
407,914
1,062,476
129,165
-
-
-
729,327
462,398
194,539
1,289,942
2,429,386
6,206,275
-
407,914
4,313,291
67
72
50
53
35
23
-
-
Executive
KMP
Keith
Thornton
Sophie
Moore
Denis Stark
Martin
Ward
Total
1
2
3
Includes benefits such as the provision of motor vehicles, insurance policy costs, health and fitness programme costs and the movement in the provision
for employee entitlements. Where amounts are negative, leave taken for the year exceeded the sum of leave accrued for the year and other benefits. This
does not represent an amount paid or owed by the KMP to the Company.
Performance rights and options are valued using a binomial tree methodology. A pre-determined value of the portion of the rights and options attributable
to the year under review has been expensed in the income statement in conformity with AASB 2 and reflected in the recipient’s remuneration. Vesting is
subject to the achievement of performance hurdles as previously detailed in this Remuneration Report.
This includes $235,918 for the COO Commission Plan (in respect of the months of January and February only) as described in section 6(b) of this
Remuneration Report, the balance being for the STI Plan.
This is for the COO Commission Plan (January to December 2020).
4
5 Mr Ward was a KMP until 1 March 2021.
EAGERS AUTOMOTIVE — Financial Report 2021Directors’ Report continued 51
10. Statutory disclosures (continued)
(b) NEDs in FY20 and FY21
Table 2 – Statutory Table of NED remuneration
Short-term benefits
Post employment benefits
Share-based payments
Salary &
fees
($)
Bonus &
commission
($)
Non-
monetary
& other
benefits 6
($)
Superannuation
($)
Other post-
employment
benefits
($)
Performance
rights &
options 7
($)
Performance-
related
percentage
(%)
Total
($)
100,000
50,000
85,000
42,500
85,000
42,500
100,000
50,000
85,000
42,500
85,000
42,500
85,000
42,500
85,000
35,417
710,000
347,917
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
514
519
514
519
514
519
514
519
514
519
514
519
514
519
514
475
4,112
4,108
9,750
4,750
8,288
4,038
8,288
4,038
9,750
4,750
8,288
4,038
8,288
4,038
8,288
4,038
8,288
3,365
69,228
33,055
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
110,264
55,269
93,802
47,057
93,802
47,057
110,264
55,269
93,802
47,057
93,802
47,057
93,802
47,057
93,802
39,257
783,340 8
385,080
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
NED
Tim
Crommelin
Nick Politis
Dan Ryan
David
Cowper
Marcus
Birrell
Greg
Duncan
David
Blackhall
Michelle
Prater
Total
Year
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
6
7
8
Includes benefits such as the provision of motor vehicles, insurance policy costs, health and fitness programme costs and the movement in the provision for
employee entitlements.
Performance rights and options are valued using a binomial tree methodology. A pre-determined value of the portion of the rights and options attributable
to the year under review has been expensed in the income statement in conformity with AASB 2 and reflected in the recipient’s remuneration. Vesting is
subject to the achievement of performance hurdles as previously detailed in this Remuneration Report.
The increase in total fees for NEDs in 2021 was due to the Directors having agreed to forego their fees for six months during 2020 as a result of the initial
impact and uncertainty arising from the COVID-19 pandemic.
EAGERS AUTOMOTIVE — Financial Report 2021Directors’ Report continued 52
10. Statutory disclosures (continued)
(c) Performance Rights and Options of KMP
The following are details of all performance rights and options which were granted to KMP over unissued ordinary shares in the
Company in or before the year under review. A performance right is a right to acquire a share at a nil exercise price upon the
achievement of performance hurdles. An option is a right to acquire a share upon payment of an exercise price and achievement of
performance hurdles.
No rights or options were granted to, lapsed or were exercised by KMP during or after the year under review, except as detailed below.
(i) Movement in Performance Rights of KMP
Table 3 – Grants and vesting of Performance Rights in FY21
Name
Keith Thornton
Sophie Moore
Denis Stark
Martin Ward
(ii) Movement in Options of KMP
Table 4 – Grants and exercise of Options in FY21
Name
Keith Thornton
Sophie Moore
Denis Stark
Martin Ward
Opening
balance
Performance
Rights granted
Performance
Rights Vested (1)
Performance
Rights lapsed
nil
nil
nil
nil
Opening
balance
518,583
117,570
64,820
2,153,985
212,853
54,130
17,738
nil
Options
granted
869,564
144,927
36,232
50,463
nil
4,205
nil
Options
exercised
518,583 (2)
nil
64,820 (3)
nil
2,153,985 (4)
nil
nil
nil
nil
Options
lapsed
nil
nil
nil
nil
Closing
balance
162,390
54,130
13,533
nil
Closing
balance
869,564
262,497
36,232
nil
(1) These rights vested and converted to ordinary shares on 24 February 2022 and remain subject to a trading restriction as described in section 5 of this
Remuneration Report.
(2) These options were granted on 4 July 2014 and had vested by end of 2019. They were exercised on 7 June 2021 at an exercise price of $5.4652 and were
valued at $10.318 per option on the day of exercise.
(3) These options were granted on 4 July 2014 and had vested by end of 2019. They were exercised on 29 March 2021 at an exercise price of $5.4652 and were
valued at $9.1748 per option on the day of exercise.
(4) These options were granted on 4 July 2014 and had vested by end of 2019. 1,180,000 of them were exercised on 29 March 2021 at an exercise price of $5.4652
and were valued at $9.1748 per option on the day of exercise. The balance of these options were exercised on 4 June 2021 at an exercise price of $5.4652
and were valued at $10.5048 per option on the day of exercise.
EAGERS AUTOMOTIVE — Financial Report 2021Directors’ Report continued 53
10. Statutory disclosures (continued)
(c) Performance Rights and Options of KMP (continued)
(iii) Performance Rights and Options granted to KMP
Table 5 – Details of share-based payments (Performance Rights and Options)
Chief Executive Officer
Performance Rights
Options
No.
No.
No.
Fair
No.
No.
Grant Date
granted
lapsed
exercised (1)
value
granted
lapsed
24 February
2021
50,463
52,265
54,103
56,022
nil
nil
nil
nil
50,463
$11.89
nil
nil
nil
$11.48
$11.09
$10.71
No.
exercised
Fair
value
End of
performance
period
31 Dec 2021
Status
Vested 24
February 2022
31 Dec 2022
Unvested
31 Dec 2023
Unvested
31 Dec 2024
Unvested
869,564
nil
nil
$2.76
31 Dec 2024
Unvested
(1) Performance rights are automatically exercised upon vesting. 50,463 rights granted for 2021 were exercised on 24 February 2022, valued at the closing price
of the underlying shares on the day of exercise.
Chief Financial Officer
Performance Rights
Options
No.
No.
No.
Fair
No.
No.
Grant Date
granted
lapsed
exercised
value
granted
lapsed
No.
exercised
Fair
value
17 February
2020
24 February
2021
30,000 (2)
35,000 (2)
35,000 (2)
17,422
18,034
18,674
nil
nil
nil
nil
nil
nil
nil
nil
$9.00
$9.00
nil
$9.00
nil
nil
nil
$11.48
$11.09
$10.71
End of
performance
period
31 Dec 2019
31 Dec 2020
31 Dec 2021
Status
Vested 17
February 2020
Vested 31
December
2020
Vested 31
December
2021
31 Dec 2022
Unvested
31 Dec 2023
Unvested
31 Dec 2024
Unvested
144,927
nil
nil
$2.76
31 Dec 2024
Unvested
(2) These rights converted to ordinary on their vesting date and remain subject to a trading restriction as described in section 6(d) of this Report.
General Counsel & Company Secretary
Performance Rights
Options
No.
No.
No.
Fair
No.
No.
Grant Date
granted
lapsed
exercised (3)
value
granted
lapsed
24 February
2021
4,205
4,355
4,509
4,669
nil
nil
nil
nil
4,205
$11.89
nil
nil
nil
$11.48
$11.09
$10.71
No.
exercised
Fair
value
End of
performance
period
31 Dec 2021
Status
Vested 24
February 2022
31 Dec 2022
Unvested
31 Dec 2023
Unvested
31 Dec 2024
Unvested
36,232
nil
nil
$2.76
31 Dec 2024
Unvested
(3) Performance rights are automatically exercised upon vesting. 4,205 rights granted for 2021 were exercised on 24 February 2022, valued at the closing
price of the underlying shares on the day of exercise.
Further details of the performance rights and options granted to KMP are specified in Notes 42 and 43 to the consolidated financial report.
EAGERS AUTOMOTIVE — Financial Report 2021Directors’ Report continued 54
10. Statutory disclosures (continued)
(d) Relevant Interest in the Company’s Shares Held by KMP
Table 6 – Shareholdings of KMP
Name
NEDs
Tim Crommelin
Nick Politis
Dan Ryan
David Cowper
Marcus Birrell
Greg Duncan
David Blackhall
Michelle Prater (1)
Opening balance as at
1 January
Year
Received from EIP
Purchases
Sales
Closing balance as at
31 December
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
438,286
392,286
69,905,321
69,536,516
1,200
1,200
15,053
15,053
2,000,000
2,000,000
300,000
284,442
28,056
23,056
2,540,096
2,540,096
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
46,000
100,000
368,805
nil
nil
nil
nil
nil
nil
50,000
15,558
nil
5,000
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
nil
438,286
438,286
70,005,321
69,905,321
1,200
1,200
15,053
15,053
2,000,000
2,000,000
350,000
300,000
28,056
28,056
2,540,096
2,540,096
(1) Ms Prater was appointed as a non-executive Director on 3 February 2020.
Name
Executive KMP
Keith Thornton
Sophie Moore
Denis Stark
Martin Ward (2)
Opening balance as at
1 January
Year
Received from EIP
Purchases
Sales
Closing balance as at
31 December
2021
2020
2021
2020
2021
2020
2021
2020
266,162
392,852
121,789
16,622
151,519
173,606
2,583,682
2,484,615
518,583
23,310
nil
105,167
64,820
108,473
nil
99,067
nil
nil
nil
nil
nil
nil
40,000
nil
465,339
150,000
nil
nil
40,000
130,560
nil
nil
319,406
266,162
121,789
121,789
176,339
151,519
2,623,682
2,583,682
(2) These figures reflect Mr Ward’s dealings up to 1 March 2021 as he ceased being a KMP on that date.
(e) Hedging of shares of unvested equity awards
The Board has adopted a policy which prohibits any Director or employee who participates in an equity plan from using derivatives,
hedging or similar arrangements to reduce or eliminate the risk associated with the plan in relation to unvested equity award or shares
that are subject to trading restrictions, without the Chair’s approval. Any breach will result in the forfeiture or lapsing of the unvested
equity awards or additional performance hurdles or trading restrictions being imposed, at the Board’s discretion.
(f) KMP transactions
There were no related party transactions with KMP during the reporting period requiring disclosure in this report.
EAGERS AUTOMOTIVE — Financial Report 2021Directors’ Report continued 55
Directors’ Interests
The relevant interest of each Director in shares, rights and options issued by the Company as at the date of this report are as follows:
Name
Tim Crommelin
Nick Politis
Dan Ryan
David Cowper
Marcus Birrell
Sophie Moore
Greg Duncan
David Blackhall
Michelle Prater
Ordinary Shares
Share Options
Performance
Rights
438,286
70,005,321
1,200
15,053
2,000,000
121,789
350,000
28,056
2,540,096
-
-
-
-
-
-
-
-
-
-
262,497
54,130
-
-
-
-
-
-
Shares Under Option
Non-Audit Services
2,173,910 options and 284,721 performance rights were granted
by the Company over unissued fully paid ordinary shares during
the year under review. No options or rights have been granted
since the end of the year under review.
3,492,998 shares were issued as a result of the exercise of
options and 54,668 shares were issued as a result of the exercise
of performance rights during or since the year under review.
At the date of this report, there are 2,503,728 unissued shares
under option and 230,053 unvested performance rights.
Indemnification and Insurance
The Company’s constitution provides that, to the extent
permitted by law, the Company must indemnify each person
who is or has been a Director or Secretary against liability
incurred in or arising out of the discharge of duties as an
officer of the Company or out of the conduct of the business
of the Company and specified legal costs. The indemnity is
enforceable without the person having to incur any expense
or make any payment, is a continuing obligation and is
enforceable even though the person may have ceased to be an
officer of the Company.
At the start of the financial year under review and at the start
of the following financial year, the Company paid insurance
premiums in respect of Directors and Officers liability insurance
contracts. The contracts insure each person who is or has been
a Director or executive officer of the Company against certain
liabilities arising in the course of their duties to the Company
and its controlled entities. The Directors have not disclosed
details of the nature of the liabilities covered or the amount of
the premiums paid in respect of the insurance contracts as such
disclosure is prohibited under the terms of the contracts.
Auditor
A copy of the auditor’s Independence Declaration as required
under section 307C of the Corporations Act 2001 is attached
and forms part of this report.
The Company may decide to employ its auditor on assignments
additional to their statutory audit duties where the auditor’s
expertise or experience with the Group is important.
Details of the amounts paid or payable to the auditor for audit
and non-audit services provided to the Group during the year
are set out in Note 40 to the consolidated financial report.
In accordance with advice received from the Audit & Risk
Committee, the Directors are satisfied that the provision of the
non-audit services was compatible with the general standard
of independence for auditors imposed by the Corporations
Act 2001 and did not compromise the auditor independence
requirements of the Act because all non-audit services were
reviewed by the Committee to ensure they did not impact the
partiality and objectivity of the auditor.
Rounding of Amounts to Nearest
Thousand Dollars
The Company is of a kind referred to in Class Order 98/100
issued by the Australian Securities & Investments Commission,
relating to the “rounding off” of amounts in the Directors’
report and financial report. Amounts in the Directors’ report
and financial report have been rounded off to the nearest
thousand dollars in accordance with that Class Order.
This report is made in accordance with a resolution of
the Directors.
Deloitte Touche Tohmatsu continues in office as auditor of
the Group in accordance with section 327 of the Corporations
Act 2001.
Tim Crommelin
Director
Brisbane, 24 February 2022
EAGERS AUTOMOTIVE — Financial Report 2021Directors’ Report continued 56
Auditor’s Declaration
of Independence
EAGERS AUTOMOTIVE — Financial Report 2021 57
Financial Statements 2021
For the year ended 31 December 2021
Consolidated Statement of Profit or Loss
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
Consolidated Statement of Financial Position
38
16
43
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to and Forming Part of the
Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
63
43
45
46
EAGERS AUTOMOTIVE — Financial Report 2021 58
Consolidated Statement of
Profit or Loss
For the year ended 31 December 2021
Revenue
Finance income
Other gains
Share of net profits of associates
Raw materials and consumables purchased
Employee benefits expense
Finance costs
Depreciation and amortisation expense
Impairment of non-current assets
Other expenses
Profit before tax
Income tax expense
Profit from continuing operations
Loss from discontinued operations
Profit for the year
Attributable to:
Owners of Eagers Automotive Limited
Non-controlling interests
Earnings/(loss) per share for profit attributable to the ordinary equity holders of the Company:
Basic earnings/(loss) per share
From continuing operations
From discontinued operations
Diluted earnings/(loss) per share
From continuing operations
From discontinued operations
Notes
3
4
5
48(c)
6(a)
6(a)
6(a)
6(b)
7
37
34(c)
32(b)
45(a)
45(b)
Consolidated
2021
$’000
2020
$’000
8,663,462
8,749,675
10,368
58,234
1,130
-
48,900
3,758
(7,043,492)
(7,179,720)
(672,077)
(79,619)
(120,428)
(5,156)
(613,158)
(88,384)
(166,257)
(90,700)
(355,615)
(384,008)
456,807
280,106
(118,070)
338,737
(8,000)
330,737
317,824
12,913
330,737
(88,575)
191,531
(35,320)
156,211
147,290
8,921
156,211
Cents
Cents
125.2
128.4
(3.2)
124.7
127.9
(3.2)
57.6
71.4
(13.8)
57.3
71.0
(13.7)
The above Consolidated Statement of Profit or Loss should be read in conjunction with the accompanying notes.
EAGERS AUTOMOTIVE — Financial Report 2021 Consolidated Statement of Profit or
Loss and Other Comprehensive Income
For the year ended 31 December 2021
59
Profit for the year
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations
Items that will not be reclassified subsequently to profit or loss
Gain on revaluation of property
Deferred tax expense
Total other comprehensive income for the year
Total comprehensive profit for the year
Total comprehensive profit attributable to:
Owners of Eagers Automotive Limited
Non-controlling interests
Notes
32(a)
19, 32(a)
32(a)
Consolidated
2021
$’000
330,737
2020
$’000
156,211
9
9
4,999
(1,500)
3,499
51
51
6,459
(1,937)
4,522
3,508
4,573
334,245
160,784
321,332
12,913
334,245
151,863
8,921
160,784
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
EAGERS AUTOMOTIVE — Financial Report 2021 60
Consolidated Statement of
Financial Position
As at 31 December 2021
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Current tax receivables
Prepayments and deposits
Finance lease receivables
Assets classified as held for sale
Total current assets
Non-current assets
Other loans receivable
Financial assets at fair value through other comprehensive income
Investments in associates
Other non-current receivables
Property, plant and equipment
Intangible assets
Deferred tax assets
Other non-current assets
Right-of-use assets
Finance lease receivables
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Borrowings - bailment and other current loans
Current tax liabilities
Provisions
Deferred revenue
Lease liabilities
Total current liabilities
Non-current liabilities
Borrowings
Deferred revenue
Provisions
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Retained earnings
Non-controlling interests
Total equity
Notes
9
10
11
24
12
18
13
14
15
16, 48
14
19
20
21
17(a)(i)
18
22
23
24
25
26
17(a)(i)
27
29
28
17(a)(i)
31
32(a)
32(b)
34(c)
Consolidated
2021
$’000
2020
$’000
197,620
228,960
874,049
574
18,787
34,715
18,670
209,092
268,863
1,025,781
-
31,898
27,309
-
1,373,375
1,562,943
23,910
577
2,074
11,801
514,374
775,295
152,000
10,508
631,099
235,932
23,148
2,366
1,561
2,851
494,266
785,574
162,005
9,837
801,129
187,971
2,357,570
3,730,945
2,470,708
4,033,651
364,263
696,292
-
101,770
13,442
167,179
436,372
878,149
16,381
131,372
23,965
179,522
1,342,946
1,665,761
311,062
16,462
14,058
958,966
1,300,548
2,643,494
304,513
20,906
26,497
1,091,397
1,443,313
3,109,074
1,087,451
924,577
1,173,069
(617,978)
510,725
1,065,816
21,635
1,087,451
1,173,069
(580,200)
317,848
910,717
13,860
924,577
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
EAGERS AUTOMOTIVE — Financial Report 2021 61
Consolidated Statement of
Changes in Equity
For the year ended 31 December 2021
Issued
capital
$’000
Asset
revaluation
reserve
$’000
Share-
based
payments
reserve
$’000
Foreign
currency
translation
reserve
$’000
Business
combination
reserve
$’000
Investment
revaluation
reserve
$’000
Retained
earnings
$’000
Attributable
to owners of
the parent
$’000
Non-
controlling
interests
$’000
Total
equity
$’000
1,173,069
32,834
(62,510)
1,204
(479,042)
(72,686)
317,848
910,717
13,860
924,577
-
-
-
-
-
-
-
-
-
-
-
-
-
3,499
3,499
(12,255)
-
-
-
-
-
-
-
-
-
-
-
-
3,204
-
(51,019)
19,037
(253)
-
-
(29,031)
-
9
9
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
317,824
317,824
12,913
330,737
-
3,508
-
3,508
-
317,824
321,332
12,913
334,245
-
12,255
-
-
-
-
-
-
-
-
-
-
-
-
3,204
-
3,204
(137,202)
(137,202)
(3,985)
(141,187)
-
-
-
-
-
(51,019)
19,037
(253)
-
-
-
(51,019)
19,037
(253)
-
-
(2,548)
(2,548)
1,395
1,395
(137,202)
(166,233)
(5,138)
(171,371)
1,173,069
24,078
(91,541)
1,213
(479,042)
(72,686)
510,725
1,065,816
21,635 1,087,451
Consolidated entity Notes
Balance at
1 January 2021
Profit for the year
Other
comprehensive
income
Total
comprehensive
income for the year
Transfer to retained
earnings
Transactions
with owners in
their capacity as
owners:
Share-based
payments expense
32(a)
Dividends provided
for or paid
32(b)
32(a)
32(a)
Shares acquired
by employee share
trust
Shares issued
pursuant to staff
share plan
Income tax on
items taken to or
transferred directly
from equity
Sale of shares to
non-controlling
interests
Issues of shares
to NCI
Balance at
31 December 2021
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
EAGERS AUTOMOTIVE — Financial Report 2021 62
Consolidated Statement of
Changes in Equity
For the year ended 31 December 2021
Issued
capital
$’000
Asset
revaluation
reserve
$’000
Share-
based
payments
reserve
$’000
Foreign
currency
translation
reserve
$’000
Business
combination
reserve
$’000
Investment
revaluation
reserve
$’000
Retained
earnings
$’000
Attributable
to owners of
the parent
$’000
Non-
controlling
interests
$’000
Total
equity
$’000
1,173,069
28,312
(37,863)
1,153
(479,042)
(72,686)
199,463
812,406
9,423
821,829
-
-
-
-
-
-
-
-
-
-
4,522
4,522
-
-
-
-
-
-
-
-
-
408
-
(31,497)
8,610
(2,168)
(24,647)
-
51
51
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
147,290
147,290
8,921
156,211
-
4,573
-
4,573
-
147,290
151,863
8,921
160,784
-
-
-
-
-
-
-
408
-
408
(28,905)
(28,905)
(4,484)
(33,389)
-
-
-
(31,497)
8,610
(2,168)
-
-
-
(31,497)
8,610
(2,168)
(28,905)
(53,552)
(4,484)
(58,036)
1,173,069
32,834
(62,510)
1,204
(479,042)
(72,686)
317,848
910,717
13,860 924,577
Consolidated entity Notes
Balance at
1 January 2020
Profit for the year
Other
comprehensive
income
Total
comprehensive
income for the year
Transactions
with owners in
their capacity as
owners:
Share-based
payments expense
32(a)
Dividends provided
for or paid
32(b)
Shares acquired
by employee share
trust
32(a)
Payments received
from employees for
exercised options
Income tax on
items taken to or
transferred directly
from equity
Balance at
31 December 2020
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
EAGERS AUTOMOTIVE — Financial Report 2021 Consolidated Statement of
Cash Flows
For the year ended 31 December 2021
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Receipts from Government
Receipts from insurance claims
Interest and other costs of finance paid
Income taxes paid
Dividends received
Interest received
63
Consolidated
2021
$’000
2020
$’000
Notes
9,529,429
9,924,255
(9,032,831)
(9,360,074)
-
4,776
(79,619)
(131,176)
1,695
10,431
133,780
4,276
(96,723)
(84,281)
4,629
2,025
Net cash provided by operating activities
46
302,705
527,887
Cash flows from investing activities
Payments for acquisition of businesses - net of cash acquired
Payments for property, plant and equipment
Payments for shares in other corporations
Proceeds from sale of businesses
Proceeds from sale of property, plant and equipment
Proceeds from return of capital
Receipts from subleases
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Proceeds from issues of shares and other equity securities
Payments for shares acquired by the Trust
Proceeds from borrowings
Repayment of borrowings
Transactions with non-controlling interests
Dividends paid to members of Eagers Automotive Limited
Dividends paid to minority shareholders of a subsidiary
Repayment of lease liabilities
Net cash (used in)/provided by financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Cash and cash equivalents at the end of the financial year
35(a)
36(a)
32(a)
32(a)
8
9
(14,403)
(67,807)
1,524
111,774
85,265
-
21,138
137,491
19,037
(51,019)
-
(16,741)
(42,246)
-
7,747
6,568
15,236
-
(29,436)
8,610
(31,497)
108,699
(150,522)
(284,483)
(1,666)
(137,202)
(9,102)
(121,194)
(451,668)
(11,472)
209,092
197,620
-
(28,905)
(3,096)
(160,222)
(390,894)
107,557
101,535
209,092
The December 2020 and 2021 Consolidated Statement of Cash Flows has been prepared to include cash flows from continuing and
discontinued operations in accordance with AASB 107 Statement of Cash Flows. Refer to Note 37.
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
EAGERS AUTOMOTIVE — Financial Report 2021 64
Notes to and Forming Part of the
Consolidated Financial Statements
31 December 2021
1 Summary of significant accounting policies
(a) General information and basis of preparation
The financial report covers the Group (consolidated entity) of
Eagers Automotive Limited (“the Company” and “the Group”)
and its subsidiaries (consolidated financial statements). Eagers
Automotive Limited is a publicly listed company incorporated
and domiciled in Australia.
The financial report has been prepared on a going-concern
basis, in line with AASB 101 Presentation of Financial Statements.
Compliance with IFRS
These consolidated financial statements are general purpose
financial statements which have been prepared in accordance
with the Corporations Act 2001, Accounting Standards and
Interpretations, and comply with other requirements of the law.
The consolidated financial statements comprise the
consolidated financial statements of the Group. For the
purposes of preparing the consolidated financial statements,
the Company is a for-profit entity. Accounting Standards
include Australian Accounting Standards. Compliance with
Australian Accounting Standards ensures that the consolidated
financial statements and notes of the Company and the Group
comply with International Financial Reporting Standards (IFRS).
Historical cost convention
These consolidated financial statements have been prepared
under the historical cost convention, as modified by the
revaluation of financial assets, derivatives and certain classes
of property, plant and equipment to fair value.
Fair value is the price received to sell an asset or paid to
transfer a liability in an orderly transaction between market
participants at the measurement date, regardless of whether
that price is directly observable or estimated using another
valuation technique. In estimating the fair value of an asset
or a liability, the Group takes into account the characteristics
of the asset or liability if market participants would take those
characteristics into account when pricing the asset or liability
at the measurement date. Fair value for measurement and/or
disclosure purposes in these consolidated financial statements
is determined on such a basis, except for share-based payment
transactions that are within the scope of AASB 2 Share-based
Payment and measurements that have some similarities to fair
value but are not fair value, such as net realisable value in AASB
102 Inventories or value-in-use in AASB 136 Impairment of Assets.
In addition, for financial reporting purposes, fair value
measurements are categorised into Level 1, 2 or 3 based on the
degree to which the inputs to the fair value measurements are
observable and the significance of the inputs to the fair value
measurements in its entirety, which are described as follows:
• Level 1 inputs are quoted prices (unadjusted) in active markets
for identical assets or liabilities that the entity can access at
the measurement date;
• Level 2 inputs are inputs, other than quoted prices included
within Level 1, that are observable for the asset or liability,
either directly or indirectly; and
• Level 3 inputs are unobservable inputs for the asset
or liability.
Functional and presentation currency
The presentation currency of the Group is the Australian Dollar.
The consolidated financial statements were authorised for issue
by the Directors on the 24th of February 2022.
Accounting policies
The following is a summary of the material accounting
policies adopted in the preparation of the financial report. The
accounting policies have been consistently applied, unless
otherwise stated.
Going concern
The consolidated financial statements have been prepared
on the basis that the Group is a going concern, able to realise
assets in the ordinary course of business and settle liabilities as
and when they fall due.
The Group has maintained a robust Consolidated Statement
of Financial Position with net current assets of $30 million at
the reporting date ($12 million excluding assets classified as
held for sale). The Consolidated Statement of Financial Position
includes a substantial asset base and property portfolio valued
at $448.3 million (including construction in progress) at 31
December 2021 and total available liquidity of $733 million (cash
in bank of $198 million and undrawn facilities of $535 million).
Corporate debt net of cash is $128 million at 31 December 2021.
The Group has generated positive net cash flows from operating
activities of $303 million and earnings before interest, taxes,
depreciation and amortisation (EBITDA) of $657 million for the
year ended 31 December 2021.
Based on the strength of the Group’s Consolidated Statement of
Financial Position and its cash flow modelling, the Directors are of
the view that the Group will be able to settle all obligations as they
fall due for a period of 12 months following these consolidated
financial statements. The Directors are therefore of the opinion
that the preparation of the consolidated financial statements as
a going concern is appropriate.
In regards to the ongoing COVID-19 pandemic, lockdowns and
other restrictions have occurred across parts of Australia and
New Zealand during the year. The Directors of the Company
have assessed these restrictions on continuing operations and
consider the future impacts to be short term in nature, and
will not have a material impact on the overall Group and its
available liquidity.
(b) Basis of consolidation
The consolidated financial statements incorporate the
consolidated financial statements of Eagers Automotive Limited
and entities (including structured entities) controlled by the
Company and its subsidiaries. Control is achieved when
the Company:
• has power over the investee;
• is exposed, or has rights, to variable returns from its
involvement with the investee; and
• has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if
facts and circumstances indicate that there are changes to one
or more of the three elements of control listed above.
When the Company has less than a majority of the voting rights
of an investee, it has power over the investee when the voting
rights are sufficient to give it the practical ability to direct the
relevant activities of the investee unilaterally.
EAGERS AUTOMOTIVE — Financial Report 2021 65
1 Summary of significant accounting policies (continued)
(b) Basis of consolidation (continued)
The Company considers all relevant facts and circumstances
in assessing whether or not the Company’s voting rights in an
investee are sufficient to give it power, including:
• the size of the Company’s holding of voting rights relative to
the size and dispersion of holdings of the other vote holders;
• potential voting rights held by the Company, other vote
holders or other parties;
• rights arising from other contractual arrangements; and
• any additional facts and circumstances that indicate that the
Company has, or does not have, the current ability to direct the
relevant activities at the time that decisions need to be made,
including voting patterns at previous shareholders’ meetings.
Consolidation of a subsidiary begins when the Company
obtains control over the subsidiary and ceases when the
Company loses control of the subsidiary. Specifically, income
and expenses of a subsidiary acquired or disposed of during
the year are included in the Consolidated Statement of Profit
or Loss and Other Comprehensive Income from the date the
Company gains control until the date when the Company
ceases to control the subsidiary.
Profit or loss and each component of other comprehensive
income are attributed to the owners of the Company and to
the non-controlling interests. Total comprehensive income of
subsidiaries is attributed to the owners of the Company and
to the non-controlling interests even if this results in the non-
controlling interests having a deficit balance. When necessary,
adjustments are made to the consolidated financial statements
of subsidiaries to bring their accounting policies in line with the
Group’s accounting policies.
All intra-group assets and liabilities, equity, income, expenses
and cash flows relating to transactions between members of
the Group are eliminated in full on consolidation.
(i) Changes in the Group’s ownership interests in
existing subsidiaries
Changes in the Group’s ownership interests in subsidiaries that
do not result in the Group losing control over the subsidiaries
are accounted for as equity transactions. The carrying amounts
of the Group’s interests and the non-controlling interests are
adjusted to reflect the changes in their relative interests in the
subsidiaries. Any difference between the amount by which the
non-controlling interests are adjusted and the fair value of the
consideration paid or received is recognised directly in equity
and attributed to owners of the Company.
When the Group loses control of a subsidiary, a gain or loss is
recognised in profit or loss and is calculated as the difference
between (i) the aggregate of the fair value of the consideration
received and the fair value of any retained interest and (ii) the
previous carrying amount of the assets (including goodwill), and
liabilities of the subsidiary and any non-controlling interests. All
amounts previously recognised in other comprehensive income
in relation to that subsidiary are accounted for as if the Group
had directly disposed of the related assets or liabilities of the
subsidiary (i.e., reclassified to profit or loss or transferred to
another category of equity as specified/permitted by applicable
Accounting Standards). The fair value of any investment
retained in the former subsidiary at the date when control is lost
is regarded as the fair value on initial recognition for subsequent
accounting under AASB 9 Financial Instruments (when
applicable), the cost on initial recognition of an investment in an
associate, or a joint venture.
Investments in associates
(ii)
An associate is an entity over which the Group has significant
influence. Significant influence is the power to participate in
the financial and operating policy decisions of the investee but
is not control over those policies. If the Group holds, directly or
indirectly, 20% or more of the voting power of the investee, it is
presumed the Group has significant influence, unless it can be
clearly demonstrated that this is not the case.
The results and assets and liabilities of associates are
incorporated in these consolidated financial statements using
the equity method of accounting, except when the investment,
or a portion thereof, is classified as held for sale, in which case it
is accounted for in accordance with AASB 5 Non-current Assets
Held for Sale and Discontinued Operations. Under the equity
method, an investment in an associate is initially recognised in
the Consolidated Statement of Financial Position at cost and
adjusted thereafter to recognise the Group’s share of the profit
or loss and other comprehensive income of the associate. When
the Group’s share of losses of an associate exceeds the Group’s
interest in that associate (which includes any long-term interests
that, in substance, form part of the Group’s net investment in
the associate), the Group discontinues recognising its share
of further losses. Additional losses are recognised only to
the extent that the Group has incurred legal or constructive
obligations or made payments on behalf of the associate.
An investment in an associate is accounted for using the
equity method from the date on which the investee becomes
an associate. On acquisition of the investment in an associate,
any excess of the cost of the investment over the Group’s share
of the net fair value of the identifiable assets and liabilities of
the investee is recognised as goodwill, which is included within
the carrying amount of the investment. Any excess of the
Group’s share of the net fair value of the identifiable assets and
liabilities over the cost of the investment, after reassessment, is
recognised immediately in profit or loss in the period in which the
investment is acquired.
The requirements of AASB 128 Investments in Associates and
Joint Ventures are applied to determine whether it is necessary
to recognise any impairment loss with respect to the Group’s
investment in an associate. When necessary, the entire carrying
amount of the investment (including goodwill) is tested for
impairment of assets as a single asset by comparing its
recoverable amount (higher of value-in-use and fair value less
costs of disposal) with its carrying amount. Any impairment loss
recognised forms part of the carrying amount of the investment.
Any reversal of that impairment loss is recognised in accordance
with AASB 136 to the extent that the recoverable amount of the
investment subsequently increases.
The Group discontinues the use of the equity method from the
date when the investment ceases to be an associate, or when
the investment is classified as held for sale. When the Group
retains an interest in the former associate and the retained
interest is a financial asset, the Group measures the retained
interest at fair value at that date and the fair value is regarded
as its fair value on initial recognition in accordance with AASB 9.
The difference between the carrying amount of the associate at
the date the equity method was discontinued, and the fair value
of any retained interest and any proceeds from disposing of a
part interest in the associate is included in the determination of
the gain or loss on disposal of the associate.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 66
1 Summary of significant accounting policies (continued)
(b) Basis of consolidation (continued)
Investments in associates (continued)
(ii)
In addition, the Group accounts for all amounts previously
recognised in other comprehensive income in relation to
that associate on the same basis as would be required if
that associate had directly disposed of the related assets
or liabilities. Therefore, if a gain or loss previously recognised
in other comprehensive income by that associate would be
reclassified to profit or loss on the disposal of the related assets
or liabilities, the Group reclassifies the gain or loss from equity to
profit or loss (as a reclassification adjustment) when the equity
method is discontinued.
The Group continues to use the equity method when an
investment in an associate becomes an investment in a
joint venture or an investment in a joint venture becomes an
investment in an associate. There is no remeasurement to fair
value upon such changes in ownership interests.
When the Group reduces its ownership interest in an associate
but the Group continues to use the equity method, the Group
reclassifies to profit or loss the portion of the gain or loss that
had previously been recognised in other comprehensive income
relating to that reduction in ownership interest if that gain or
loss would be classified to profit or loss on the disposal of the
related assets or liabilities.
When the Group increases its ownership interest such that an
existing associate becomes a subsidiary, the Group remeasures
its previously held interest at its acquisition date fair value
and recognises the resulting gain or loss in profit or loss. The
acquisition of the investment in the subsidiary is recognised in
accordance with Note 35(c).
When a Group entity transacts with an associate of the Group,
profits and losses resulting from the transactions with the
associate are recognised in the Group’s consolidated financial
statements only to the extent of interests in the associate that
are not related to the Group.
(c) Rounding of amounts
The Company is of a kind referred to in the ASIC Corporations
(Rounding in Financial/Directors’ Reports) Instrument 2016/191,
issued by the Australian Securities and Investments Commission
(ASIC), relating to the “rounding off” of amounts in the financial
report. Amounts in the financial report have been rounded off
in accordance with that instrument to the nearest thousand
dollars, or in certain cases, to the nearest dollar.
(d) Goods and services tax
Revenues, expenses, assets and liabilities are recognised net of
the amount of goods and services tax (GST) except:
• where the GST incurred on a purchase of goods and services
is not recoverable from the taxation authority, in which case
the GST is recognised as part of the cost of acquisition of the
asset or is part of the expense item as applicable; and
• receivables and payables are stated with the amount of
GST included.
The net amount of GST recoverable from, or payable to, the
taxation authority is included as part of receivables or payables
in the Consolidated Statement of Financial Position.
Cash flows are included in the Consolidated Statement of
Cash Flows on a gross basis and the GST component of cash
flows arising from investing and financing activities, which
is recoverable from or payable to the taxation authority, are
classified as operating cash flows.
Commitments and contingencies are disclosed net of
the amount of GST recoverable from, or payable to, the
taxation authority.
(e) Other accounting policies
Significant other accounting policies that summarise the
recognition, treatment and measurement basis used, and
are relevant to understanding the consolidated financial
statements, are included throughout the relevant notes to the
consolidated financial statements.
(f) New or revised standards and interpretations that
are first effective in the current reporting period
New and revised standards and amendments thereof and
interpretations effective for the current year that are relevant to
the Group, but have not had a material impact, are:
• AASB 2020-8 Amendments to Australian Accounting
Standards - Interest Rate Benchmark Reform - Phase 2; and
• AASB 2021-3 Amendments to Australian Accounting
Standards - Covid-19-Related Rent Concessions beyond 30
June 2021.
The standards in issue but not yet effective, and are not
expected to have a material impact on the Group, are as
follows:
• AASB 17 Insurance Contracts (as amended);
• AASB 2021-5 Amendments to Australian Accounting
Standards - Deferred Tax related to Assets and
Liabilities arising from a Single Transaction;
• AASB 2021-2 Amendments to Australian Accounting
Standards - Disclosure of Accounting Policies
and Definition of Accounting Estimates;
• AASB 2014-10 Amendments to Australian Accounting
Standards - Sale or Contribution of Assets between
an Investor and its Associate or Joint Venture;
• AASB 2015-10 Amendments to Australian
Accounting Standards - Effective Date of
Amendments to AASB 10 and AASB 128;
• AASB 2017-5 Amendments to Australian Accounting
Standards - Effective Date of Amendments to AASB
10 and AASB 128 and Editorial Corrections;
• AASB 2020-1 Amendments to Australian
Accounting Standards - Classification of
Liabilities as Current or Non-current;
• AASB 2020-6 Amendments to Australian Accounting
Standards - Classification of Liabilities as Current
or Non-current - Deferral of Effective Date; and
• AASB 2020-3 Amendments to Australian Accounting
Standards - Annual Improvements 2018-2020 and
Other Amendments.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 67
2 Critical accounting estimates and judgements
Estimates, assumptions and judgements are continually evaluated and are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the Group and that are believed to be reasonable
under the circumstances.
The Group makes estimates, assumptions and judgements concerning the future. The resulting accounting estimates will, by definition,
seldom equal the related actual results. The estimates, assumptions and judgements that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities are included in the following notes:
Note
Note 11
Note 11
Note 17
Note 17
Note 19
Note 20
Note 21
Note 35
Note 36
Key judgements and estimates
Demonstrator vehicle write-down to net realisable value
Used vehicle write-down to net realisable value
Leases
Recoverability of right-of-use assets and other non-current assets
Fair value estimation of land, buildings and capital works in progress
Recoverability of goodwill and other intangibles with indefinite useful lives
Deferred tax asset
The fair value of assets and liabilities acquired in business combinations
Sale of Daimler Truck Operations and property
3 Revenue
Set out below is the disaggregation of the Group’s revenue:
Consolidated revenue for the year ended
31 December 2021 from continuing operations
Type of goods or service
New vehicles
Used vehicles
Parts
Service
Other
Total revenue from external customers
Timing of revenue recognition
At a point in time
Over time
Total revenue from external customers
Geographical markets
Australia
New Zealand
Total revenue from external customers
Retailing
$’000
Property
$’000
Total
$’000
5,182,209
1,970,178
937,638
524,567
47,517
8,662,109
8,128,223
533,886
8,662,109
8,143,758
518,351
8,662,109
-
-
-
-
1,353
1,353
5,182,209
1,970,178
937,638
524,567
48,870
8,663,462
1,353
8,129,576
-
533,886
1,353
8,663,462
1,353
-
8,145,111
518,351
1,353
8,663,462
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 68
3 Revenue (continued)
Consolidated revenue for the year ended
31 December 2020 from continuing operations
Type of goods or service
New vehicles
Used vehicles
Parts
Service
Other
Total revenue from external customers
Timing of revenue recognition
At a point in time
Over time
Total revenue from external customers
Geographical markets
Australia
New Zealand
Total revenue from external customers
(a) Recognition and measurement
(i) Revenue
Retailing
$’000
Property
$’000
Total
$’000
4,973,458
2,078,945
1,008,382
584,035
103,052
8,747,872
8,163,837
584,035
8,747,872
8,282,687
465,185
8,747,872
-
-
-
-
1,803
1,803
4,973,458
2,078,945
1,008,382
584,035
104,855
8,749,675
1,803
8,165,640
-
584,035
1,803
8,749,675
1,803
8,284,490
-
465,185
1,803
8,749,675
Sales revenue
Revenue from the sale of motor vehicles and parts is recognised when the performance obligation has been satisfied. The
performance obligation is considered to be satisfied at a point in time when the vehicles or parts are invoiced and physically
dispatched or collected.
Service revenue
Service work on customers’ vehicles is carried out under instruction from the customer. Service revenue is recognised over time based
on when the performance obligation is satisfied, which is when services are rendered. Revenue arising from the sale of parts fitted to
customers’ vehicles during service is recognised at a point in time upon satisfaction of the performance obligation, which is considered
by the Group to be upon delivery of the fitted parts to the customer upon completion of the service.
(ii) Other revenue items
Warranties revenue
The Group sells extended warranties beyond those provided by the manufacturer, which further protects the customer for repairs and
defects in the vehicle over a specified period. Under AASB 15 Revenue from Contracts with Customers, warranties are considered to be
a distinct service as they are both regularly supplied by the Group to customers on a stand-alone basis and are available to customers
from other providers in the market. As a result, where vehicles are being sold with an extended warranty included, a portion of the
vehicle sale price is required to be allocated to the warranty based on the stand-alone selling price of those services. Revenue relating
to the warranties is recognised over time, while the transaction price allocated to these services is recognised as a contract liability at
the time of the initial sales transaction and is released on a straight-line basis over the period of the service.
Rental income
Rental income from operating leases is recognised on a straight-line basis over the lease term.
Finance and insurance commissions
The Group acts as an agent in the sale of vehicle finance and insurance products. The revenue (i.e., commission from the sale of these
products) is recognised at a point in time when the performance obligation is satisfied, which is upon delivery of the vehicle and the
transfer of control to the customer.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 69
3 Revenue (continued)
(a) Recognition and measurement (continued)
(ii) Other revenue items (continued)
Dividend revenue
Dividend revenue is recognised when the right to receive a dividend has been established. Dividends received from associates are
accounted for in accordance with the equity method of accounting in the consolidated financial statements.
4 Finance income
Finance income
Consolidated
2021
$’000
10,368
2020
$’000
-
Finance income relates to income earned on sublease arrangements, in accordance with AASB 16 Leases. Refer to Note 18.
5 Other gains
Gain/(loss) on disposal of non-financial assets
Gain on disposal of properties
Gain on disposal of businesses
Brand restructure compensation
Gain on divestment of associates
Waived rent
Notes
36(a)
Consolidated
2021
$’000
15,168
10,957
31,894
215
-
-
2020
$’000
(567)
1,962
5,417
31,751
860
9,477
58,234
48,900
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 70
6 Expenses
(a) Profit before income tax includes the following specific expenses:
Depreciation
Buildings
Plant and equipment
Leasehold improvements
Right-of-use asset depreciation
Total depreciation
Amortisation
Customer relationships
Total amortisation
Total depreciation and amortisation
Finance costs
Vehicle bailment
Interest on lease liabilities
Other
Total finance costs
Superannuation
Provision expenses
Notes
19
19
19
17(a)(ii)
20
17(a)(ii)
Consolidated
2021
$’000
2020
$’000
4,754
19,165
5,383
89,664
118,966
3,402
36,563
5,087
119,151
164,203
1,462
1,462
2,054
2,054
120,428
166,257
17,022
48,715
13,882
79,619
22,219
53,324
12,841
88,384
55,499
56,806
Allowance for expected credit losses
10(b)
765
1,386
Employee benefits expense
Employee benefits expense - gross
Employee benefits expense recognised in cost of sales - gross
Government grants offset against employee benefits expense
Government grants offset against employee benefits expense recognised in cost of sales
Total employee benefits expense
Share-based payments
Business acquisition and divestment costs
672,077
107,530
-
-
706,129
116,339
(92,971)
(40,813)
779,607
688,684
42, 43
3,204
1,803
408
1,789
Business restructuring and integration costs
-
1,689
(b) Impairment of non-current assets
Revaluation decrement of land and buildings
Impairment of right-of-use asset
Impairment of fixed assets
Notes
19
17
19
Consolidated
2021
$’000
5,156
-
-
5,156
2020
$’000
9,996
73,150
7,554
90,700
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 71
6 Expenses (continued)
(c) Recognition and measurement
(i) Property, plant and equipment
Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost or revalued
amounts, net of their residual values, over their estimated useful lives, as follows:
• Buildings
• Plant & equipment
30 - 40 years
3 - 10 years
• Leasehold improvements
The shorter of the lease term and the useful life of the asset (5 - 30 years)
(ii) Finance costs
Borrowing costs are recognised as expenses in the period in which they are incurred. Borrowing costs include:
• interest on bank overdrafts, short and long-term borrowings;
• interest on vehicle bailment arrangements;
• interest on finance lease liabilities; and
• amortisation of ancillary costs incurred in connection with the arrangement of borrowings.
7
Income tax
(a) Income tax expense
Current income tax expense
Deferred income tax expense
Notes
Consolidated
2021
$’000
108,736
9,334
118,070
2020
$’000
73,192
15,383
88,575
Deferred income tax expense included in income tax expense comprises:
In respect of the current year
21
9,334
15,383
Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.
(b) Numerical reconciliation of income tax expense to prima facie tax payable
Profit before income tax expense
Tax at the Australian tax rate of 30% (2020: 30%)
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
Non-taxable income
Non-deductible capital expenditure
Non-taxable dividends
Non-allowable expenses
Property impairment
Application of capital losses against current year capital gains
Sundry items
Income tax expense
(c) Tax (expense) relating to items of other comprehensive income
456,807
280,106
137,042
84,032
-
541
(325)
608
1,547
(17,488)
(3,855)
118,070
(1,781)
-
(6,503)
559
2,999
-
9,269
88,575
Aggregate deferred tax arising in the reporting period and recognised in
other comprehensive income
(1,500)
(1,937)
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 72
7
Income tax (continued)
(d) Recognition and measurement
Taxes
Eagers Automotive Limited and its wholly-owned Australian entities are part of a tax consolidated group in accordance with Part
3-90 of the Income Tax Assessment Act 1997. The existence of a tax consolidated group allows for wholly-owned corporate groups to
operate as a single entity for income tax purposes.
The head entity, Eagers Automotive Limited, and the wholly-owned entities in the tax consolidated group continue to account for their
own income tax expense, current and deferred tax amounts in accordance with the Eagers Automotive Tax Funding Agreement. These
tax amounts are measured by adopting a notional tax approach which requires each member to calculate their separate tax amounts
as if each entity in the tax consolidated group continues to be a standalone taxpayer. Assets or liabilities arising for wholly-owned
subsidiaries under the Tax Funding Arrangement are recognised as accounts receivable from or payable to other entities in the Group.
In addition to its own income tax expense, current and deferred tax amounts, the head entity also recognises the current tax liabilities
(or assets) and the deferred tax assets arising from unused tax losses and tax credits assumed from controlled entities in the tax
consolidated group.
Income tax
The income tax expense or benefit for the period is the tax payable on the current period’s taxable income based on the notional
income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences
between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.
8 Dividends
(a) Ordinary dividends fully franked based on tax paid @ 30%
Final dividend for the year ended 31 December 2020 of 25.0 cents per share
(2019: 11.25 cents) paid on 20 April 2021
Interim dividend for the year ended 31 December 2021 of 28.4 cents per share
(2020: nil) paid on 15 October 2021. This is based on an ordinary dividend of 20.0 cents,
and a special dividend of 8.4 cents.
Total dividends paid
Consolidated
2021
$’000
2020
$’000
64,233
28,905
72,969
-
137,202
28,905
Dividends paid in cash during the years ended 31 December 2021 and 2020 were as follows:
Paid in cash
137,202
28,905
(b) Dividends not recognised at year end
In addition to the above dividends, since year end the Directors have recommended the payment of a final dividend
of 42.5 cents per share, fully franked based on tax paid at 30%. The aggregate amount of the proposed dividend
expected to be paid on 20 April 2022 out of the retained profits at 31 December 2021 but not recognised as a liability
at year end is:
109,197
64,233
(c) Franked dividends
The final dividend recommended after 31 December 2021 will be franked out of existing franking credits or out of franking credits
arising from the payment of income tax in the year ending 31 December 2021.
Franking credits available for subsequent reporting periods based on a tax rate of 30% (2020: 30%)
487,161
388,995
The above amounts represent the balances of the franking account as at the end of the financial year, adjusted for:
(i)
franking credits that will arise from the payment of the current tax liability;
(ii) franking debits that will arise from the payment of dividends recognised as a liability at the reporting date; and
(iii) franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date.
Impact on franking credits of dividends not recognised
(46,799)
(27,528)
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 9 Current assets – Cash and cash equivalents
Current assets
Cash at bank and on hand
Short term deposits
Restricted cash
73
Consolidated
2021
$’000
2020
$’000
197,620
207,334
-
-
1,455
303
197,620
209,092
The above figures are reconciled to cash at the end of the financial year as shown in the Consolidated Statement of Cash Flows.
(a) Recognition and measurement
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short term, highly liquid
investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current
liabilities on the Consolidated Statement of Financial Position.
10 Current assets – Trade and other receivables
Trade and other receivables
Allowance for expected credit losses
(a) Ageing of trade receivables
The ageing of trade receivables at 31 December 2021 is detailed below:
Not past due
Past due 0-30 days
Past due 31 days plus
Total
Consolidated
2021
$’000
233,024
(4,064)
228,960
2020
$’000
274,502
(5,639)
268,863
Consolidated
2021
2020
Gross
$’000
223,166
6,604
3,254
Provision
$’000
3,573
165
326
Gross
$’000
252,371
15,124
7,007
233,024
4,064
274,502
Provision
$’000
4,560
378
701
5,639
The Group has applied the expected credit losses methodology to these trade receivables, in line with AASB 9. Included in the Group’s
trade receivables balance are debtors with a net carrying amount of $9,367,000 (2020: $21,052,000) which are past due at the reporting
date. The average age of these receivables is 61 days (2020: 63 days).
(b) Movement in expected credit losses
Opening balance
Additional loss allowance
Amounts written off during the year
Disposal due to divestment
Closing balance
Consolidated
2021
$’000
5,639
765
(676)
(1,664)
4,064
2020
$’000
4,888
1,386
(635)
-
5,639
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 74
10 Current assets – Trade and other receivables (continued)
(b) Movement in expected credit losses (continued)
The Group applies the simplified approach permitted by AASB 9, which requires expected lifetime losses to be recognised from initial
recognition of the receivable. The expected credit losses on these financial assets are estimated using a provision matrix based on
the Group’s historical credit losses experience. In line with this, the Group has provided 10% for all receivables over 90 days and 2.5% of
total trade receivables excluding motor vehicle debtors.
(c) Recognition and measurement
Receivables
Trade receivables are recognised initially at the transaction price, less the expected lifetime credit losses to be recognised from initial
recognition of the receivables.
11 Current assets – Inventories
New and demonstrator motor vehicles & trucks - bailment stock - at cost
Less: Write-down to net realisable value
Used vehicles & trucks - at cost
Less: Write-down to net realisable value
Parts and other consumables - at cost
Less: Write-down to net realisable value
Consolidated
2021
$’000
528,027
(15,013)
513,014
247,445
(14,347)
233,098
136,374
(8,437)
127,937
2020
$’000
705,824
(16,748)
689,076
216,472
(16,714)
199,758
148,094
(11,147)
136,947
Total inventories
874,049
1,025,781
(a) Recognition and measurement
Inventories
New motor vehicles and demonstrator vehicles are stated at the lower of cost and net realisable value. Costs are assigned on the basis
of specific identification.
Used motor vehicles are stated at the lower of cost and net realisable value on a unit-by-unit basis. Net realisable value has been
determined by reference to the likely net realisable value given the age of the vehicles at year end. This is affected through the application
of a specific provision percentage against cost of vehicles based on age. Costs are assigned on the basis of specific identification.
Spare parts and accessories are stated at the lower of cost and net realisable value. Costs are assigned to individual items based on
weighted average cost.
Work in progress is stated at cost. Cost includes labour incurred to date and consumables utilised during the service. Costs are
assigned to individual customers based on specific identification.
(b) Critical accounting estimates and judgements
(i) Demonstrator vehicle write-down to net realisable value
In determining the amount of write-downs for demonstrator vehicle inventory, management has made judgements based on the
expected net realisable value of inventory. Historic experience and current knowledge of the products have been used in determining
any write-downs to net realisable value.
(ii) Used vehicle write-down to net realisable value
In determining the amount of write-downs required for used vehicle inventory, management has, in consultation with published
used vehicle valuations, made judgements based on the expected net realisable value of that inventory. Historic experience, current
knowledge of the products and the valuations from an independent used car publication have been used in determining any write-
downs to net realisable value.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 12 Other current assets
Prepayments and deposits
13 Assets classified as held for sale
Assets classified as held for sale
75
Consolidated
2021
$’000
18,787
2020
$’000
31,898
Consolidated
2021
$’000
18,670
2020
$’000
-
Assets classified as held for sale at 31 December 2021 represents a vacant property sale that is unconditional at the reporting date,
and is due to settle in February 2022. The asset is presented within total assets of the Property segment in Note 30.
(a) Recognition and measurement
Assets held for sale
Assets (and disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale
transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset
(or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale, which should
be expected to qualify for recognition as a completed sale within one year from the date of classification.
Assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value
less costs to sell. Where assets are sold above the lower of their previous carrying amounts and fair value less costs to sell, this gain is
recognised in profit or loss when the sale is recognised.
14 Non-current assets – Receivables
Other loans receivable
Other non-current receivables
Consolidated
2021
$’000
23,910
11,801
35,711
15 Non-current assets – Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income
Shares in an unlisted company - Dealercell Holdings Pty Limited 1
Shares in an unlisted company - AHG Property Syndicate No. 1 Unit Trust (1)
Consolidated
2021
$’000
322
255
577
2020
$’000
23,148
2,851
25,999
2020
$’000
588
1,778
2,366
1
The Directors have assessed that the fair value of the investment as at 31 December 2021 is materially consistent with its cost of acquisition. This is a level 3
fair value measurement asset being derived from inputs other than quoted prices that are unobservable from the asset either directly or indirectly.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 76
15 Non-current assets – Financial assets at fair value through other comprehensive income (continued)
(a) Valuation of financial assets at fair value through other comprehensive income
Details of the Group’s assets held at fair value through other comprehensive income and information about the fair value hierarchy as
at 31 December 2021 are as follows:
Class of financial assets
and liabilities
Level 3 financial assets at fair
value through other comprehensive
income - unlisted
Unobservable inputs used in determination of fair values
Carrying
amount
31/12/21
$'000
Carrying
amount
31/12/20
$'000 Valuation technique
Key input
577
2,366 Net asset assessment.
Pre-tax operating margin taking into account
managements' experience and knowledge of
market conditions and financial position.
There were no transfers between levels in the year.
(b) Recognition and measurement
Investments and other financial assets
Investments are recognised and derecognised on settlement date where the purchase or sale of an investment is under a contract
whose terms require delivery of the investment within the timeframe established by the market concerned. They are initially measured
at fair value, net of transaction costs, except for those financial assets classified as fair value through profit or loss (FVPL), which are
initially measured at fair value.
Subsequent to initial recognition, investments in associates are accounted for under the equity method in the consolidated financial
statements.
The Group classifies its remaining financial assets in the following measurement categories:
• those to be measured subsequently at fair value (either through other comprehensive income (OCI) or through profit or loss), and
• those to be measured at amortised cost.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments
that are not held for trading, the classification will depend on whether the Group has made an irrevocable election at the time of initial
recognition to account for the equity investment at fair value through other comprehensive income (FVOCI).
Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not carried at FVPL,
transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at
FVPL are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely
payment of principal and interest.
Equity instruments
The Group subsequently measures all equity investments at fair value. The fair values of quoted investments are based on current
bid prices. If the market for a financial asset is not active (and for unlisted securities), the Group establishes fair value by using
valuation techniques. These include reference to the fair values of recent arm’s-length transactions involving the same instruments
or other instruments that are substantially the same, discounted cash flow analysis, and pricing models to reflect the issuer’s specific
circumstances.
Where the Group’s management has elected to present fair value gains and losses on equity investments in OCI, there is no
subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from
such investments continue to be recognised in profit or loss as other income when the Group’s right to receive payments is established.
Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from
other changes in fair value. The Group recognises the payment of dividends in the profit and loss for those equity instruments
measured at FVOCI.
Impairment
For trade receivables and other receivables, finance lease receivables and other loans receivable, the Group applies the simplified
approach permitted by AASB 9, which requires expected lifetime losses to be recognised from initial recognition of these financial
assets. The expected credit losses on these financial assets are estimated using a provision matrix based on the Group’s historical
credit loss experience.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 16 Non-current assets – Investments in associates
Shares in associate - Vehicle Parts (WA) Pty Ltd
Shares in associate - Mazda Parts
77
Consolidated
2021
$’000
1,555
519
2,074
2020
$’000
1,233
328
1,561
Investments in associates are accounted for in the consolidated financial statements using the equity method of accounting (refer
Note 48). Reconciliation of the carrying amount of investment in associate is set out in Note 48(b).
17 Right-of-use assets and lease liabilities
(a) Leases
(i) Amounts recognised in the Consolidated Statement of Financial Position
The Consolidated Statement of Financial Position shows the following amounts relating to leases:
Right-of-use assets
Property
Equipment
Consolidated entity
Year ended 31 December 2021
Opening net book amount
Exchange differences
Additions
Disposals
Depreciation charge
Rent reviews
Adjustments to lease terms
Closing net book amount
Consolidated entity
Year ended 31 December 2020
Opening net book amount
Additions
Disposals
Depreciation charge
Impairment loss
Rent reviews
Adjustments to lease terms
Closing net book amount
Consolidated
2021
$’000
2020
$’000
629,853
1,246
631,099
Property
$’000
Equipment
$’000
801,129
(3,070)
49,471
(132,743)
(89,415)
5,002
(521)
-
-
1,495
-
(249)
-
-
801,129
-
801,129
Total
$’000
801,129
(3,070)
50,966
(132,743)
(89,664)
5,002
(521)
629,853
1,246
631,099
Notes
Property
$’000
Equipment
$’000
Total
$’000
6(b)
995,691
11,220
(68,407)
(119,093)
(73,150)
48,823
6,045
801,129
12,809
1,008,500
-
(12,751)
(58)
-
-
-
-
11,220
(81,158)
(119,151)
(73,150)
48,823
6,045
801,129
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 78
17 Right-of-use assets and lease liabilities (continued)
(a) Leases (continued)
(i) Amounts recognised in the Consolidated Statement of Financial Position (continued)
Lease liabilities
Current
Non-current
(ii) Amounts recognised in the Statement of Profit or Loss
The Statement of Profit or Loss shows the following amounts relating to leases:
Depreciation charge of right-of-use assets
Buildings
Equipment
Interest expense
Expense relating to short-term leases
(iii) Maturity analysis of contracted undiscounted cash flows
Maturity analysis
Not later than one year
Later than 1 year and not later than 5 years
Later than 5 years
Total undiscounted lease payments
Less: Present value adjustment
Present value of lease payments
Notes
6(a)
6(a)
Consolidated
2021
$’000
2020
$’000
167,179
958,966
1,126,145
179,522
1,091,397
1,270,919
Consolidated
2021
$’000
2020
$’000
89,415
249
89,664
48,715
3,645
52,360
119,093
58
119,151
53,324
2,146
55,470
Consolidated
2021
$’000
2020
$’000
167,179
585,321
665,649
1,418,149
(292,004)
1,126,145
179,522
665,413
742,344
1,587,279
(316,360)
1,270,919
In addition to the above lease payments is a minimum lease payment of $49.2 million expected to occur within 2-5 years, under a non-
cancellable lease that has not yet commenced. The lease relates to vacant land for future development and is expected to commence
in 2022. The lease agreement contains an option to prepay the lease at the end of the first 12 months after commencement instead of
regular monthly lease payments. The Directors have not yet made a decision over the rent payment options as outlined in the contract.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 79
17 Right-of-use assets and lease liabilities (continued)
(b) Recognition and measurement
Leases
The Group as a lessee
The Group assesses whether a contract is or contains a lease
at inception of the contract. The Group recognises a right-of-
use asset and a corresponding lease liability with respect to all
lease arrangements in which it is the lessee, except for short-
term leases (defined as leases with a lease term of 12 months or
less) and leases of low value assets. For these leases, the Group
recognises the lease payments as an operating expense on
a straight-line basis over the term of the lease unless another
systematic basis is more representative of the time pattern in
which economic benefits from the leased assets are consumed.
Lease liabilities
At the commencement date of the lease, the Group recognises
lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments
include fixed payments (including in-substance fixed payments)
less any lease incentives receivable, variable lease payments
that depend on an index or a rate, and amounts expected to
be paid under residual value guarantees. The lease payments
also include the exercise price of a purchase option reasonably
certain to be exercised by the Group and payments of penalties
for terminating a lease, if the lease term reflects the Group
exercising the option to terminate. The variable lease payments
that do not depend on an index or a rate are recognised as
an expense in the period in which the event or condition that
triggers the payment occurs.
In calculating the present value of lease payments, the
Group uses the incremental borrowing rate at the lease
commencement date if the interest rate implicit in the lease
is not readily determinable. The incremental borrowing rate is
defined as the rate of interest that the lessee would have to
pay to borrow over a similar term and with a similar security over
the funds necessary to obtain an asset of a similar value to the
right-of-use asset in a similar economic environment.
The lease liability is presented as a separate line in the
Consolidated Statement of Financial Position.
After the commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced for the
lease payments made. In addition, the carrying amount of lease
liabilities is remeasured whenever:
• The lease term has changed or there is a change in the
assessment of exercise of a purchase option, in which case
the lease liabilities are remeasured by discounting the revised
lease payments using a revised discount rate;
• The lease payments change due to changes in an index or
rate or a change in expected payment under guaranteed
residual value, in which case the lease liability is remeasured
by discounting the revised lease payments using the initial
discount rate (unless the lease payments change is due to
a change in a floating interest rate, in which case a revised
discount rate is used); and
• A lease contract is modified and the lease modification is
not accounted for as a separate lease, in which case the
lease liability is remeasured by discounting the revised lease
payments using a revised discount rate.
Right-of-use assets
The Group recognises right-of-use assets at cost at the
commencement date of the lease (i.e., the date the underlying
asset is available for use).
The cost of right-of-use assets includes the amount of lease
liabilities recognised, initial direct costs incurred, and lease
payments made at or before the commencement date less any
lease incentives received. Right-of-use assets are subsequently
measured at cost, less any accumulated depreciation and
impairment losses, and are adjusted for any remeasurement of
lease liabilities.
Unless the Group is reasonably certain to obtain ownership of
the leased asset at the end of the lease term, the recognised
right-of-use assets are depreciated on a straight-line basis over
the shorter of its estimated useful life and the lease term.
Whenever the Group incurs an obligation for costs to dismantle
and remove a leased asset, restore the site on which it is located
or restore the underlying asset to the condition required by the
terms and conditions of the lease, a provision is recognised and
measured under AASB 137 Provisions, Contingent Liabilities and
Contingent Assets. The costs are included in the related right-of-
use asset, unless those costs are incurred to produce inventories.
The right-of-use assets are presented as a separate line in the
Consolidated Statement of Financial Position.
Right-of-use assets are subject to impairment in accordance
with AASB 136. Any identified impairment loss is accounted
for in line with our accounting policy for ‘Property, plant and
equipment’ (refer to Note 19(a)).
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption
to its short-term leases of property, machinery/equipment
and motor vehicles (i.e., those leases that have a lease of 12
months or less from the commencement date and do not
contain a purchase option). It also applies the low-value assets
recognition exemption to leases that are considered of low
value. Lease payments on short-term leases and leases of low-
value assets are recognised as an expense on a straight-line
basis over the lease term.
Sale and leaseback transactions
Where the Group enters into a sale and leaseback transaction,
the Group firstly applies the requirements of AASB 15 to
determine whether control has passed, and whether the transfer
is accounted for as a sale. Further, when the Group enters into
a sale and leaseback transaction and the fair value of the
consideration for the sale of the property does not equal the
fair value of the asset, or the payments for the lease are not at
market rates, the following adjustments are made to measure
the sale proceeds at fair value:
• any below market terms are accounted for as a prepayment
of lease payments; and
• any above market terms are accounted for as additional
financing provided by the buyer-lessor to the Group.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 80
17 Right-of-use assets and lease liabilities (continued)
(b) Recognition and measurement (continued)
Leases (continued)
Incremental borrowing rate
The Group has determined its incremental borrowing rate by
considering the interest rate on their financing facility and
applying, where considered necessary, adjustments to align this
with an asset specific rate. The adjustments consider the term
of the agreement, security of asset and the funds necessary
to obtain an asset of a similar value in a similar economic
environment. Significant judgement is required to assess and
apply these adjustments.
The application of the incremental borrowing rate impacts
the initial valuation of the lease liability and associated
interest expense.
(c) Critical accounting estimates and judgements
(i) Recoverability of right-of-use assets and other non-current
assets
In applying the standard, the Directors have made certain
assumptions and judgements in relation to the determination of
the recoverable amount for these assets.
(ii) Leases
On application, the Group has recognised right-of-use assets
and lease liabilities in the Consolidated Statement of Financial
Position and the depreciation of right-of-use assets and interest
on lease liabilities in the Consolidated Statement of Profit or Loss.
Material right-of-use assets and lease liabilities were recognised
on the acquisition of AHG. In applying the standard, the Directors
make ongoing assumptions and judgements including but not
limited to the appropriate discount rate on incremental borrowing
rates and likely exercise of the renewal options.
Significant judgement in determining the lease term of
contracts with renewal options
The Group determines the lease term as the non-cancellable
term of the lease, together with periods covered by an option
to extend the lease if it is reasonably certain to be exercised, or
any periods covered by an option to terminate the lease, if it is
reasonably certain not to be exercised.
The Group has the option, under some of its property leases;
to lease the asset for additional terms. The Group applies
judgement in evaluating whether it is reasonably certain to
exercise the option to renew. That is, it considers all relevant
factors that create an economic incentive for it to exercise the
renewal. After the commencement date, the Group reassesses
the lease term if there is a significant event or change in
circumstances that is within its control and affects its ability to
exercise (or not to exercise) the option to renew (e.g., a change in
business strategy).
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 18 Finance lease receivables
Amounts receivable under finance leases
Year 1
Year 2
Year 3
Year 4
Year 5
Onwards
Total undiscounted lease payments
Less: Unearned finance income
Present value of lease payments receivable
Current
Non-current
Total finance lease receivables
81
Consolidated
2021
$’000
34,715
34,430
33,223
28,525
27,428
192,135
350,456
(79,809)
270,647
34,715
235,932
270,647
2020
$’000
27,309
27,969
27,479
26,060
21,547
147,016
277,380
(62,100)
215,280
27,309
187,971
215,280
During the year, the finance lease receivables increase was driven by a number of sublease arrangements being entered into
associated with the divestment of Daimler Truck Operations.
All subleases are back-to-back arrangements, and as such there is no residual value risk. The Group is not exposed to foreign currency
risk as a result of the lease arrangement, as all leases are denominated in Australian Dollars.
The back-to-back subleases have terms between 1 and 14 years. Lease agreements in place include clauses to enable rental increases
in line with that of the corresponding head lease held by the Group.
The Directors of the Group estimate the loss allowance on finance lease receivables at the end of the reporting period at an amount
equal to lifetime expected credit losses. None of the finance lease receivables at the end of the reporting period are past due, and
taking into account the historical default experience and the future prospects of the industries in which the lessees operate, together
with the value of collateral held over these finance lease receivables, the expected credit loss associated with the finance lease
receivables balance is immaterial. As such, no expected credit loss allowance was recorded in the current year in respect of finance
lease receivables.
(a) Recognition and measurement
Leases
The Group as a lessor
Sublease arrangements
When the Group is an intermediate lessor, it accounts for the head lease and the sublease as two separate contracts. The sublease is
classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.
Amounts due from lessees under finance leases are recognised as receivables at the amount of the Group’s net investment in the
leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return of the Group’s net
investment outstanding in respect of the leases.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 82
19 Non-current assets – Property, plant and equipment
Freehold land and buildings - at fair value
Directors' valuation 2
Land
Buildings
Total land and buildings
Construction in progress - at cost
Construction in progress
Leasehold improvements
At cost
Accumulated depreciation
Total leasehold improvements
Plant and equipment
At cost
Accumulated depreciation
Total plant and equipment
Consolidated
2021
$’000
2020
$’000
249,962
182,490
432,452
202,384
154,079
356,463
15,825
7,405
27,809
(3,415)
24,394
48,516
(6,813)
41,703
43,793
(4,319)
39,474
141,514
(50,590)
90,924
Total property, plant and equipment
514,374
494,266
2
Valuation of land and buildings
The basis of the Directors’ valuation of land and buildings is the assessed fair value, being the amounts for which the assets could be exchanged between
willing parties in an arm’s length transaction at the balance date, based on current prices in an active market for similar properties in the same location
and condition. The assessed fair value is supported by periodic, but at least triennial valuations, by external third-party valuers. The 2021 valuations were
made by the Directors based on their assessment of prevailing market conditions and supported by fair value information received from independent
expert property valuers on certain properties and the Group’s own market activities and market knowledge.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 83
19 Non-current assets - Property, plant & equipment (continued)
Valuation of land and buildings (continued)
Details of the Group’s freehold land and buildings and information about the fair value hierarchy as at 31 December 2021 are as follows:
Unobservable inputs used in determination of fair values
Class of
assets &
liabilities
Level 3
Car – HBU
Alternate
Use
Level 3
Car
Dealership
Carrying
amount
31/12/21
$'000
Carrying
amount
31/12/20
$'000
Valuation
technique
40,541
46,140 Direct
comparison
Key input
Input
External
valuations
Price/sqm
land
Average/
range
2021
Average/
range
2020
Average
$2,692/
sqm
Average
$3,071/
sqm
Range
$1,489 -
$4,002/
sqm
Range
$1,234 -
$5,065/
sqm
Other key
information
Land size
Range
(weighted
average)
2021
Range
(weighted
average)
2020
Average
4,067 sqm
Average
3,005 sqm
Range
2,015 -
4,931 sqm
Range
2,015 -
4,853 sqm
380,956
283,222 Summation
method,
income
capitalisation
and direct
comparison
External
valuations
industry
benchmarks
Capitalisation
rate
Average
6.1%
Average
6.4%
Net rent /
sqm land
Average
$116/sqm
Average
$115/sqm
Level 3
Truck
Dealership
9,888
20,039 Direct
comparison
External
valuations
Price/sqm
land Price/
sqm GBA
Range
0.0% -
9.0%
Range
5.4% -
9.5%
Range
$0 - $300/
sqm
Range $47
- $330/
sqm
Net rent /
sqm GBA 3
Average
$295/sqm
Average
$255/sqm
Average
$430/
sqm
Range
$430 -
$430/
sqm
Average
$411/sqm
Land size
Range
$276 -
$532/sqm
Range
$0 - $980/
sqm
Average
23,006
sqm
Range
23,006
- 23,006
sqm
Range
$107 -
$1,730/
sqm
Average
24,353
sqm
Range
23,006
- 25,700
sqm
Net rent/
sqm land
Average
$20/sqm
Average
$29/sqm
Range $0 -
$20/sqm
Range $17
- $39/sqm
Capitalisation
rate
Average
4.7%
Average
6.9%
Range
4.7% -
4.7%
Range
6.3% -
7.2%
Level 3
Other
Logistics
1,067
7,062 Income
capitalisation
method
supported
by market
comparison
External
valuations
Capitalisation
rate
Average
8.0%
Average
6.8%
Net rent /
sqm GBA (1)
Average
$71/sqm
Average
$129/sqm
Range
8.0% -
8.0%
Range
7.8% -
8.5%
Range $71
- $71/sqm
Range
$143 -
$215/sqm
Total
432,452
356,463
There were no transfers between levels in the year.
Explanation of asset classes: Car - Higher and Best Use (HBU) alternate use refers to properties currently operated as car dealerships
which have a HBU greater than that of a car dealership; Car Dealership refers to properties operating as car dealerships with a HBU
consistent with that use; Truck Dealership refers to properties being operated as truck dealerships with a HBU consistent with that use;
Other Logistics are industrial properties used for parts warehousing and vehicle logistics.
3 GBA is the gross building area.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 84
19 Non-current assets - Property, plant & equipment (continued)
Carrying amounts that would have been recognised if land and buildings were stated at cost
If freehold land was carried at historical cost, its current carrying value would be $235,675,000 (2020: $165,799,000). If freehold buildings
were carried at historical cost, its current carrying value (after depreciation) would be $182,490,000 (2020: $154,079,000).
Non-current assets pledged as security
Refer to Note 27 for information on non-current assets pledged as security by the Group.
Reconciliations
Reconciliation of the carrying amounts of each class of property, plant and equipment at the beginning and end of the year is set
out below:
Consolidated 2021
Freehold
land
$’000
Buildings
$’000
Construction
in progress
$’000
Leasehold
improvements
$’000
Plant and
equipment
$’000
Total
$’000
Opening net book amount
202,384
154,079
Exchange differences
Transfers
Additions
Revaluation gain recognised in asset
revaluation reserve
Revaluation recognised in profit and loss
Disposals
Transfer to property assets held for sale
-
-
-
1,521
112,376
56,336
4,999
(5,156)
(45,971)
(18,670)
-
-
(24,692)
-
Depreciation charge
-
(4,754)
7,405
-
(1,972)
10,392
-
-
-
-
-
Carrying amount at end of year
249,962
182,490
15,825
39,474
-
(1,888)
5,488
-
-
90,924
494,266
(438)
2,339
15,187
-
-
(438)
-
199,779
4,999
(5,156)
(13,297)
(47,144)
(131,104)
-
(5,383)
24,394
-
(19,165)
41,703
(18,670)
(29,302)
514,374
During the period the Group acquired Land and Buildings of which $138 million was directly funded through capital loan facilities
obtained by the Group. Refer to Note 27 for further information on movement in borrowings.
During the period the Group concluded all buyback arrangements, reflected as a disposal.
Consolidated 2020
Opening net book amount
Exchange differences
Transfers
Additions
Revaluation gain recognised in asset
revaluation reserve
Revaluation recognised in profit and loss
Disposals
Depreciation charge
Impairment loss
Freehold
land
$’000
176,031
-
6
32,450
6,459
(9,996)
(2,566)
-
-
Buildings
$’000
Construction
in progress
$’000
Leasehold
improvements
$’000
Plant and
equipment
$’000
Total
$’000
76,713
-
10,268
73,428
-
-
(2,928)
(3,402)
-
14,453
6
(15,380)
8,326
-
-
-
-
-
60,851
128,010
456,058
320
4,943
2,232
-
-
(21,220)
(5,087)
(2,565)
39,474
206
163
532
-
30,210
146,646
-
-
(26,113)
(36,563)
(4,989)
90,924
6,459
(9,996)
(52,827)
(45,052)
(7,554)
494,266
Carrying amount at end of year
202,384
154,079
7,405
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 85
19 Non-current assets - Property, plant & equipment (continued)
(a) Recognition and measurement
Property, plant and equipment
Land and buildings are shown at fair value, based on annual
assessment by the Directors supported by periodic valuations
by external independent valuers, less subsequent depreciation
for buildings. Revaluations are made with sufficient regularity
to ensure that the carrying amount does not differ materially
from that which would be determined using fair value at
the end of the reporting period or immediately prior to the
initial classification of assets held for sale. Any accumulated
depreciation at the date of revaluation is eliminated against
the gross carrying amount of the asset and the net amount
is restated to the revalued amount of the asset. All other
property, plant and equipment are stated at historical cost less
accumulated depreciation and impairment losses. Historical
cost includes expenditure that is directly attributable to the
acquisition of the items.
Subsequent costs are included in the asset’s carrying amount
or recognised as a separate asset as appropriate, only when
it is probable that future economic benefits associated with
the item will flow to the Group and the cost of the item can
be measured reliably. All other repairs and maintenance are
charged to profit or loss during the financial period in which they
are incurred.
Increases in the carrying amounts arising on revaluation of land
and buildings are credited to property, plant and equipment
revaluation reserve in shareholders’ equity. To the extent that
the increase reverses a decrease previously recognised in profit
or loss, the increase is first recognised in profit or loss. Decreases
that reverse previous increases of the same asset are first
charged against revaluation reserves directly in equity to the
extent of the remaining reserve attributable to the asset; all
other decreases are charged to profit or loss.
The asset’s residual values and useful lives are reviewed, and
adjusted if appropriate, at each balance date.
An asset’s carrying amount is written down immediately to its
recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing
proceeds with carrying amounts. These are included in profit or
loss. When revalued assets are sold, it is Group policy to transfer
the amounts included in the asset revaluation reserve in respect
of those assets to retained earnings.
The cost of improvements to or on leasehold properties
is amortised over the unexpired period of the lease or the
estimated useful life of the improvement, whichever is shorter.
(b) Critical accounting estimates and judgements
Fair value estimation of land, buildings and capital work
in progress
Land and buildings with a carrying value of $432.5 million (2020:
$356.5 million) are carried at fair value. Fair value inherently
involves estimates and judgements to be made. The Directors
determine the fair value of land and buildings at least annually
and if required in contemplation of sale. The Directors’
assessment is supported by formal independent valuations
conducted periodically but at least every three years.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 86
20 Non-current assets – Intangibles
Goodwill
Trade marks/brand names
Customer relationships
Movement - Goodwill
Balance at the beginning of the financial year
Additional amounts recognised:
Acquired through business combinations during the year
Less: Disposal of businesses
Balance at the end of the financial year
Movement - Trade marks/brand names
Balance at the beginning of the financial year
Less: Disposal of businesses
Balance at the end of the financial year
Movement - Customer relationships
Balance at the beginning of the financial year
Amortisation charge
Balance at the end of the financial year
(a) Impairment tests for goodwill
Notes
35
36
36
Consolidated
2021
$’000
763,988
5,915
5,392
2020
$’000
771,755
6,965
6,854
775,295
785,574
771,755
757,301
10,749
(18,516)
763,988
6,965
(1,050)
5,915
6,854
(1,462)
5,392
15,500
(1,046)
771,755
6,965
-
6,965
8,908
(2,054)
6,854
For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units (CGU), or groups of
CGUs, that are expected to benefit from the synergies of the combinations. Each unit or group of units to which goodwill is allocated
represents the lowest level at which goodwill is monitored for internal management purposes.
The Group has eight groups of CGUs in the Car Retailing Segment, grouped by the operating regions (QLD & NT, NSW, VIC & TAS, SA,
WA, NZ), National Used and Finance, with the lowest level for which there are independent cash flows determined to be on an operating
region or state basis. During the twelve months, and following the disposal of the Daimler Truck Operations business, the remaining
truck businesses were allocated to three of the six operating CGUs in the Car Retailing Segment. As a result, there no longer remains a
national Trucks Segment CGU.
The recoverable amount of a CGU or group of CGUs to which goodwill and other indefinite life intangible assets is allocated is
determined based on the greater of its value-in-use and its fair value less costs of disposal. Fair value is determined as being the
amount obtainable from the sale of a CGU in an arm’s length transaction between knowledgeable and willing parties at the balance
date. If relevant, this fair value assessment less costs of disposal is conducted by the Directors based on their extensive knowledge of
the car and truck retailing industry including the current market conditions prevailing in the industry. The value-in-use assessment is
conducted using a discounted cash flow (DCF) methodology requiring the Directors to estimate the future cash flows expected to arise
from the CGU’s and then applying a discount rate to calculate the present value.
The DCF model adopted by the Directors utilises cash flow forecasts derived from the 2022 financial budgets approved by the Board,
with a range of growth rates applied thereafter to year four that does not exceed 2% (2020: 1.5%). A growth rate of 2% is applied
from year four and into the terminal period (2020: 1.5%). The budgets consider all available sources of information (both external and
internal); external macro-economic conditions are strong and despite supply chain dynamics, the industry continues to deliver vehicles.
The Group is continuing to benefit from favourable market conditions and cost outs achieved, delivering underlying profit before tax
performance significantly ahead of budget.
The forecast growth rate and terminal growth rate have been based on consideration of historical performance and the expected
future operating conditions. The terminal growth rate is not deemed to exceed the long-term average growth rate for the industry
and generally accepted future consumer price index (CPI) rate. A post-tax discount rate of 8.0% was applied to the cash flows,
incorporating the impact of AASB 16 on the Group’s cost of debt.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 87
20 Non-current assets – Intangibles (continued)
(a) Impairment tests for goodwill (continued)
Consideration of COVID-19 and the associated impacts on the automotive retail industry and the wider economy
The Group believes that the assumptions underpinning the DCF calculations used to evaluate the recoverability of goodwill and
intangible assets have been adjusted to reflect reasonable estimates of the impact of COVID-19 and the risks associated with
estimated cash flows. Whilst there is no impairment concerning any of the CGU’s at 31 December 2021, the Directors acknowledge that
there is a heightened level of uncertainty around key assumptions in the current environment.
The Directors have considered the market context and performance with reference to the VFACTS National Report New Vehicle Sales
results for December 2021. National market new vehicle sales increased 14.5% year-to-date December 2021, compared to year-to-date
December 2020. New vehicle sales is a leading indicator for used vehicle, parts and service department performance.
Consideration of climate change
In estimating the recoverable amount the Group has considered the potential impacts of climate change both on the Group’s business
model and corporate strategy. It is believed that the most significant change for a vehicle retailer may be the increasing rate of
demand for electric and hybrid vehicles (including hydrogen fuel cell electric vehicles) in preference to traditional internal combustion
engine vehicles. This change, in isolation, is not expected to significantly impact the Group’s business model as the Group is pivoting to
supplying a greater percentage of electric and hybrid vehicles in line with consumer demand and availability of supply. Other potential
impacts of the Group’s initiatives in respect of climate change are being considered and will be reflected in the recoverable amount
as the Group’s sustainability planning evolves. There is significant headroom in all CGUs and the impact of the Group’s initiatives in
respect of climate change impacts is not expected to have an impact on the carrying value of assets.
Sensitivity analysis performed
The Group has performed sensitivity analysis of reasonably possible changes in the assumptions used in the model, including
reducing growth rates from a maximum of 2.0% to a fixed growth rate of 0% applied from the second forecast year through to year
five, whilst holding terminal growth rate at 2.0%. Further, the Group has sensitised the discount rate from 8.0% to 8.5%. Under each of
these independent scenarios, no impairment was identified.
A segment-level summary of the goodwill allocation is presented as follows:
Car retailing operations:
Goodwill
Trade marks/brand names
Customer relationships
Truck retailing operations:
Goodwill
Trade marks/brand names
Consolidated
2021
$’000
2020
$’000
763,988
730,077
5,915
5,392
5,915
6,854
775,295
742,846
-
-
-
41,678
1,050
42,728
775,295
785,574
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 88
20 Non-current assets – Intangibles (continued)
(b) Recognition and measurement
Impairment of long-lived assets (excluding goodwill)
(i)
Assets that have an indefinite useful life are not subject to
amortisation and are tested annually for impairment. Assets
that are subject to amortisation are reviewed for impairment
whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount is
the higher of an asset’s fair value less costs of disposal and its
value-in-use. For the purposes of assessing impairment, assets
are grouped at the lowest levels for which there are separately
identifiable independent cash inflows (cash-generating
units (CGU)) and these cash flows are discounted using the
estimated weighted average cost of capital of the asset/CGU.
An impairment loss is recognised in profit or loss immediately,
unless the relevant asset is carried at fair value, in which case
the impairment loss is treated as a revaluation decrease (refer
Note 19(a)). Where an impairment loss subsequently reverses, the
carrying amount of the asset (CGU) is increased to the revised
estimate of its recoverable amount, but only to the extent that
the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment
losses been recognised for the asset (CGU) in prior years. A
reversal of an impairment loss is recognised in profit or loss
immediately, unless the relevant asset is carried at fair value, in
which case, the reversal of the impairment loss is treated as a
revaluation increase (refer Note 19(a)).
(ii) Customer relationships
Customer relationships acquired in a business combination
where management believes there are contracted relationships
in place that generate repeat transactions which creates future
economic benefits and are amortised on a straight-line basis
over the period of their expected benefit, being their finite
useful life of five years. Customer relationships are made up of
fleet customer arrangements in place for the new vehicle and
servicing business.
(iii) Trademarks/brand names
Trademarks/brand names are valued on acquisition where
management believe there is evidence of any of the following
factors: an established brand name with longevity, a reputation
that may positively influence a consumer’s decision to purchase
or service a vehicle, and/or strong customer awareness within
a particular geographic location. The trademarks are valued
using a discounted cash flow methodology. The majority of the
Group’s trademarks are considered to have an indefinite life
as the Group expects to hold and support such trademarks
through marketing and promotional support for an indefinite
period. They are recorded at cost less any impairment.
(iv) Goodwill
Goodwill represents the excess of the cost of an acquisition over
the fair value of the Group’s share of the net identifiable assets
acquired and liabilities assumed of the acquired subsidiary,
associate or business at the date of acquisition. Goodwill
on acquisition of subsidiaries and businesses is included in
intangible assets. Goodwill on acquisition of associates is
included in investment in associates. Goodwill acquired in
business combinations is not amortised. Instead, goodwill is
tested for impairment annually, or more frequently if events or
changes in circumstances indicate that it might be impaired,
and is carried at cost less accumulated impairment losses. An
impairment loss for goodwill is recognised immediately in profit
or loss and is not reversed in a subsequent period. Gains and
losses on the disposal of an entity include the carrying amount
of goodwill relating to the entity sold.
Goodwill is allocated to groups of CGUs for the purpose of
impairment testing.
(c) Critical accounting estimates and judgements
Recoverability of goodwill and other intangibles with indefinite
useful lives
Goodwill and other intangibles with indefinite useful lives of
$769.9 million (2020: $778.7 million) are tested annually for
impairment, based on estimates made by Directors. The
recoverable amount of the intangibles is based on the greater
of ‘Value-in-use’ or ‘fair value less costs to dispose’. Value-in-
use is assessed by the Directors through a discounted cash flow
analysis which includes significant estimates and assumptions
related to growth rates, margins, working capital requirements
and discount rates based on the current cost of capital. Fair
value less costs of disposal is assessed by the Directors based
on their knowledge of the industry and any recent market
transactions. The above figures therefore reflect the estimates
of the recoverable amounts post any impairment recognised
during the year.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 21 Non-current assets - Deferred tax assets
Deferred tax assets
The balance comprises temporary differences attributable to:
Amounts recognised in profit or loss
Book versus tax carrying value of plant and equipment
Leases
Deferred income
Inventory valuation
Prepayments
Provisions
Expected credit losses
Employee benefits
Other
Sundry items
Total amounts recognised in profit or loss
Amounts recognised directly in equity
Revaluation of property, plant and equipment
Share options trust
Total amounts recognised directly in equity
The deferred tax expense included in income tax expense in respect of the above temporary differences
resulted from the following movements:
Opening balance at 1 January 2021
Deferred tax (expense)
Deferred tax recognised directly in equity
Revaluation of property, plant and equipment
Share options trust
Deferred tax recognised through a business combination
Deferred tax assets relating to business combinations
Closing balance at 31 December 2021
89
Notes
Consolidated
2021
$’000
2020
$’000
152,000
162,005
25,548
67,047
4,944
(2,157)
(766)
1,215
33,115
6,475
24,422
159,843
(8,948)
1,105
(7,843)
162,005
(9,334)
(1,500)
253
15,036
72,919
12,372
212
(1,737)
1,688
36,786
10,371
26,839
174,486
(17,190)
4,709
(12,481)
176,505
(15,383)
(1,937)
2,168
576
652
152,000
162,005
7(a)
32(a)
32(a)
(i) Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and
when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a
net basis. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Deferred tax liabilities
Deferred tax assets
Net deferred tax asset
(11,871)
163,871
152,000
(18,927)
180,932
162,005
At the reporting date, the Group has no unused revenue tax losses (2020: nil) available for offset against future profits. No deferred
tax asset has been recognised in respect of capital losses of $116.9 million (2020: $142.9 million) as it is not considered probable that
there will be future capital gains available to utilise the capital losses. The capital losses may be carried forward indefinitely.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 90
21 Non-current assets - Deferred tax assets (continued)
(a) Recognition and measurement
Deferred taxes
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are
recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. The
relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred
tax asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability.
No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction, other than a
business combination, where at the time of the transaction the temporary differences did not affect either accounting profit or taxable
profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable
amounts will be available to utilise those temporary differences and losses.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.
(b) Critical accounting estimates and judgements
Deferred tax asset
Recognition and measurement of deferred tax assets require certain judgements and assumptions to be made, including but not
necessarily limited to the expected realisation of certain assets and liabilities and the likelihood and timing of sufficient profits
available in the future.
22 Current liabilities – Trade and other payables
Trade and other payables
Trade payables 4
Other payables
Consolidated
2021
$’000
2020
$’000
116,668
247,595
364,263
144,988
291,384
436,372
Other payables comprises of customer deposits held of $71.4 million (2020: $57.6 million), taxes payable of $15.4 million (2020: $21.5
million), general accruals of $118.8 million (2020: $175.9 million), with the remaining balance relating to miscellaneous payables.
4
The average credit period on purchases of goods is 30 days.
No interest is charged on trade payables from the date of invoice.
The Group has financial risk management policies in place to ensure that all payables are paid within the credit timeframe.
(a) Recognition and measurement
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year which are
unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. They are recognised initially at the fair value of
what is expected to be paid, and subsequently at amortised cost, using the effective interest rate method.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 23 Current Liabilities - Borrowings - bailment and other current loans
Bailment finance
Term facility
Capital loan
91
Consolidated
2021
$’000
2020
$’000
681,325
844,307
-
14,967
696,292
26,000
7,842
878,149
(i) Bailment finance
Bailment finance is provided on a vehicle-by-vehicle basis by various finance providers at an average interest rate of 2.21% p.a.
applicable at 31 December 2021 (2020: 2.38%). Bailment finance is repayable within a short period after the vehicle is sold to a third
party, generally within 48 hours.
(ii) Capital loan
Capital loans are provided by various finance providers to the Group to fund certain property transactions. The capital loans are
secured by registered first mortgages given by subsidiaries over specific freehold land and buildings. The majority of capital loans are
amortising in nature, with principal and interest repayable each period, with the remainder non-amortising in nature and repayable on
the expiry date. Refer to Note 33(b) for further information on contractual maturity analysis.
Interest rate risk exposures
(iii)
Details of the Group’s exposure to interest rate changes on interest bearing liabilities is set out in Note 33.
(iv) Fair value disclosures
Details of the Group’s fair value of interest bearing liabilities is set out in Note 33.
(v) Security
Details of the security relating to each of the secured liabilities and further information on bank loans is set out in Note 27.
(a) Recognition and measurement
(i) Borrowings
Borrowings are initially recognised at fair value net of transaction costs incurred. Borrowings are subsequently measured at amortised
cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the
period of the borrowings using the effective interest rate method.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least
12 months after the balance date.
(ii) New motor vehicle stock and related bailment
Motor vehicles secured under bailment plans are provided to the Group under bailment agreements between the floor plan loan
providers and entities within the Group. The Group obtains title to the vehicles immediately prior to sale. Motor vehicles financed
under bailment plans held by the Group are recognised as trading stock with the corresponding liability shown as owing to the
finance provider.
24 Current liabilities – Current tax liability or receivable
Current income tax receivable
Current income tax payable
Net current income tax (receivable)/payable
(a) Recognition and measurement
Please refer to Note 7 for recognition and measurement of tax balances.
Consolidated
2021
$’000
(574)
-
(574)
2020
$’000
-
16,381
16,381
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 92
25 Current liabilities – Provisions
Annual leave
Long service leave
Buyback provision
Consolidated
2021
$’000
57,429
44,341
-
2020
$’000
62,977
51,279
17,116
101,770
131,372
(a) Recognition and measurement
(i) Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable
that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The
amount recognised as a provision is the best estimate taking into account the risks and uncertainties surrounding the obligation.
(ii) Employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave,
when it is probable that settlement will be required and they are capable of being measured reliably.
Liabilities recognised in respect of short-term employee benefits are measured at their nominal values using the remuneration
rate expected to apply at the time of settlement.
Contributions are made by the Group to defined contribution employee superannuation funds and are charged as expenses
when incurred.
(iii) Buybacks
If the sale of the vehicle is combined with a residual value commitment (i.e., buyback arrangements), and the control has not been
transferred (i.e., the repurchase price is not higher than the assessed fair market value), the Group recognises the sales transaction
as an operating lease transaction.
The revenue and expense are recognised over the residual value commitment period in the Consolidated Statement of Profit or Loss.
Assets under operating leases, a residual value provision, and deferred lease income are recognised in the Consolidated Statement
of Financial Position. Refer to Notes 26 and 29. The asset is depreciated over the commitment period and the deferred lease income is
recognised as revenue over the same period. The residual value provision amount remains unchanged until the end of the commitment
period. If the vehicle is returned at the end of the commitment period, the residual value provision is paid to the customer.
All buyback arrangements have concluded in the current reporting period.
26 Current liabilities – Other current liabilities
Deferred revenue
Consolidated
2021
$’000
13,442
2020
$’000
23,965
Deferred revenue relates to recognition of revenue in accordance with the performance obligations in certain warranty contracts.
Balances in the prior year also include buybacks arrangements within the Group that concluded in the current reporting period.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 27 Non-current liabilities – Borrowings (secured)
Term facility
Capital loan
Secured liabilities
Total secured liabilities (current and non-current) are:
Term facility 5
Capital loan 6
Bailment finance 7
Refer to Note 33(b)(iii) for maturities.
Assets pledged as security
The carrying amounts of assets pledged as security are:
Non-current assets pledged as security
Freehold land and buildings - first mortgage
Other non-current assets
Current assets pledged as security
Inventories
Other current assets
Total assets pledged as security
93
Notes
Consolidated
2021
$’000
-
311,062
311,062
2020
$’000
111,500
193,013
304,513
-
326,029
681,325
137,500
200,855
844,307
1,007,354
1,182,662
19
432,452
905,967
681,325
346,057
349,625
970,529
844,307
380,280
2,365,801
2,544,741
5
6
7
The term facility is secured by a general security agreement which includes registered first mortgages held by a security trustee over specific freehold land
and buildings and a general charge over assets. This excludes new and used inventory and related receivables, letter of set off given by and on account of
the parent entity and its subsidiaries, and a Corporate Guarantee and Indemnity unlimited as to amount given by the parent entity and its subsidiaries.
The capital loan is secured by registered first mortgages given by subsidiaries over specific freehold land and buildings, letter of set off given by and on
account of the parent entity and its subsidiaries, and a Corporate Guarantee and Indemnity unlimited as to amount given by the parent entity and its
subsidiaries.
Vehicle bailment finance reflects a liability payable to the consolidated entity’s bailment financiers. This liability is represented by and secured over debtors
included in current assets receivables in respect of recent vehicle deliveries to customers, and by new vehicles, demonstrator vehicles and some used
vehicles all included in inventories (bailment stock). Refer to Note 11.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 94
27 Non-current liabilities – Borrowings (secured) (continued)
Financing arrangements
The consolidated entity has access to the following lines of credit at the balance date:
Total facilities
Term facility 8
Working capital facility (includes bank overdraft)
Capital loan 9
Bailment finance 10
Bank guarantees
Drawn at balance date
Term facility
Capital loan
Bailment finance
Bank guarantees
Undrawn at balance date
Term facility
Working capital facility (includes bank overdraft)
Capital loan
Bailment finance
Bank guarantees
Consolidated
2021
$’000
2020
$’000
382,000
30,000
449,527
367,600
130,000
314,930
1,597,030
1,808,588
58,000
60,918
2,516,557
2,682,036
-
326,029
681,325
49,257
137,500
200,855
844,307
50,417
1,056,611
1,233,079
382,000
30,000
123,498
915,705
8,743
230,100
130,000
114,075
964,281
10,501
1,459,946
1,448,957
Term facility at the balance date was provided on a non-amortisable (interest only) basis subject to compliance with specific covenants for a fixed term.
The majority of the capital loan facility at the balance date was provided on an amortisable (principal and interest) basis over a fixed term.
8
9
10 Bailment facilities are used to finance the acquisition of new vehicle and some used vehicle trading stock. These facilities include a combination of fixed
term and open ended arrangements and are subject to review periods ranging from quarterly to annual. These facilities generally include short term
termination notice periods and are disclosed as current liabilities in the Consolidated Statement of Financial Position.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 28 Non-current liabilities - Provisions
Long service leave
Other provisions
95
Consolidated
2021
$’000
8,613
5,445
14,058
2020
$’000
8,574
17,923
26,497
The other provisions balance held at reporting date relates to provisions held for make good of leased property. This is for the
expected cost of restoring the premises to its original condition at the end of the lease. Balances in the prior year also include
buybacks arrangements within the Group that concluded in the current reporting period.
(a) Recognition and measurement
(i) Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that
the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount
recognised as a provision is the best estimate taking into account the risks and uncertainties surrounding the obligation.
(ii) Employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave, when
it is probable that settlement will be required and they are capable of being measured reliably.
Liabilities recognised in respect of long-term employee benefits are measured as the present value of the estimated future cash
outflows to be made by the Group in respect of services provided by employees up to the reporting date.
29 Non-current liabilities - Deferred revenue
Deferred revenue
Consolidated
2021
$’000
16,462
2020
$’000
20,906
Deferred revenue relates to recognition of revenue in accordance with the performance obligations in certain warranty contracts
(refer to Note 3(a)(ii)). Balances in the prior year also include buybacks arrangements within the Group that concluded in the current
reporting period.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 96
30 Segment information
Segments are identified on the basis of internal reports about components of the consolidated entity that are regularly reviewed by
the chief operating decision maker, being the Board of Directors (“the Board”), in order to allocate resources to the segment and to
assess its performance.
The Group operates in four operating and reporting segments (with no aggregation taking place) being (i) Car Retailing (ii) Truck
Retailing (iii) Property and (iv) Investments, these being identified on the basis of being the components of the Group that are regularly
reviewed by the Board for the purpose of resource allocation and assessment of segment performance. Information regarding the
Group’s reporting segments is presented below.
As a result of the divestment of the Daimler Truck Operations business during the first half of 2021, the Group has changed the
structure of its internal organisation. This has caused a change in the composition of its reportable segments since the prior period,
resulting in the Group operating in three reporting segments from April 2021. The Truck Retailing reporting segment represents
only Daimler dealerships for the twelve months ended 31 December 2021. The remaining non-Daimler Truck dealerships have been
reallocated to the Car Retailing segment.
Per AASB 8 Operating Segments paragraph 29, the corresponding segment information for earlier periods, including the prior year, has
not been restated in respect of the change in the structure of the Group’s reportable segments as this information is not available.
Instead, in accordance with AASB 8 paragraph 30, the Group has disclosed segment information for the current period on both the old
basis and the new basis of segmentation.
The accounting policies of the reportable segments are the same as the Group’s accounting policies as described in Note 1. Segment
profit represents the profit earned by each segment without allocation of unrecouped corporate/head office costs and income tax.
External bailment is allocated to the Car Retailing and Truck Retailing segments. Funding costs in relation to bills payable are allocated
to the Car Retailing, Truck Retailing, Property, and Investment segments based on notional market-based covenant levels.
This is the measure reported to the Board for the purposes of resource allocation and assessment of segment performance. For the
purpose of monitoring segment performance and allocating resources between segments, the Board monitors the tangible, intangible,
and financial assets attributable to each segment. All assets are allocated to reportable segments.
(i) Car Retailing
Within the Car Retailing segment, the Group offers a diversified range of automotive products and services, including new vehicles,
used vehicles, vehicle maintenance and repair services, vehicle parts, service contracts, vehicle brokerage, vehicle protection products
and other aftermarket products. They also facilitate financing for vehicle purchases through third-party sources. New vehicles, vehicle
parts, and maintenance services are predominantly supplied in accordance with franchise agreements with manufacturers. This
segment includes the Motors Tasmania Truck Retailing business (as it is managed inside the Motors Tasmania car business), a motor
auction business and forklift rental business. For the year ended 31 December 2021, this segment also incorporates the remaining non-
Daimler Truck dealerships, as detailed above.
(ii) Truck Retailing
For the year ended 31 December 2021, this segment includes only Daimler Truck dealerships which has been divested during the
period, as detailed above. Within the Truck Retailing segment, the Group offers a diversified range of products and services, including
new trucks, used trucks, truck maintenance and repair services, truck parts, service contracts, truck protection products, and other
aftermarket products. They also facilitate financing for truck purchases through third-party sources. New trucks, truck parts, and
maintenance services are predominantly supplied in accordance with franchise agreements with manufacturers.
(iii) Property
Within the Property segment, the Group acquires commercial properties principally for use as facility premises for its motor dealership
operations. The Property segment charges the Car Retailing segment commercial rentals for owned properties occupied by that
segment. The Property segment reports property assets at fair value, based on annual assessments by the Directors supported by
periodic, but at least triennial valuations by external independent valuers. Revaluation increments arising from fair value adjustments
are reported internally and assessed by the chief operating decision maker as profit adjustments in assessing the overall returns
generated by this segment to the Group.
Investments
(iv)
This segment includes the Group’s investment in DealerMotive Limited which is only relevant for the prior year segment note as the
investment was disposed of in 2020.
(a) Geographic information
The Group operates in two principal geographic locations, being Australia and New Zealand.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 97
30 Segment information (continued)
(b) Segment results
In accordance with AASB 8 paragraph 30, the Group has disclosed segment information for the current period on both the old basis
and the new basis of segmentation. The table below discloses segment information on the new basis of segmentation for the 12
months ended 31 December 2021:
Segment reporting 2021 - new basis
Car Retailing
$’000
Truck
Retailing
$’000
Property
$’000
Investments
$’000
Eliminations
$’000
Consolidated
$’000
Sales to external customers
8,438,283
223,826
Inter-segment sales
Total sales revenue
-
-
8,438,283
223,826
1,353
30,699
32,052
21,748
(9,158)
12,590
-
-
(5,156)
-
-
10,957
-
-
459,990
(68,147)
391,843
1,078
(1,412)
-
8,833
1,708
-
215
735
6,333
(2,314)
4,019
-
(391)
-
5,364
30,186
-
-
-
403,000
39,178
18,391
Segment result
Operating profit before interest
External interest expense allocation
Operating contribution
Share of net profit of equity accounted
investments
Business acquisition and divestment costs
Property revaluation
Profit on termination of leases
Profit on sale of businesses
Profit on sale of property
Manufacturer compensation income
Miscellaneous
Segment profit
Unallocated corporate expenses
Profit before tax
Income tax expense
Net profit
Depreciation and amortisation
(106,441)
(7,819)
(6,168)
Assets
Segment assets
Liabilities
Segment liabilities
Net assets
3,271,999
2,317,465
954,534
-
-
-
458,946
326,029
132,917
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,663,462
(30,699)
-
(30,699)
8,663,462
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
488,071
(79,619)
408,452
1,078
(1,803)
(5,156)
14,197
31,894
10,957
215
735
460,569
(3,762)
456,807
(118,070)
338,737
(120,428)
3,730,945
2,643,494
1,087,451
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 98
30 Segment information (continued)
(b) Segment results (continued)
In accordance with AASB 8 paragraph 30, the Group has disclosed segment information for the current period on both the old basis
and the new basis of segmentation. The table below discloses segment information on the old basis of segmentation for the 12 months
ended 31 December 2021.
Segment reporting 2021 - old basis
Car Retailing
$’000
Truck
Retailing
$’000
Property
$’000
Investments
$’000
Eliminations
$’000
Consolidated
$’000
Sales to external customers
8,084,944
577,165
Inter-segment sales
Total sales revenue
-
-
8,084,944
577,165
1,353
30,699
32,052
21,748
(9,158)
12,590
-
-
(5,156)
-
10,957
-
-
-
446,376
(66,110)
380,266
1,078
(1,412)
-
8,833
-
1,708
215
735
19,947
(4,351)
15,596
-
(391)
-
5,364
-
30,186
-
-
391,423
50,755
18,391
Segment result
Operating profit before interest
External interest expense allocation
Operating contribution
Share of net profit of equity accounted
investments
Business acquisition and divestment costs
Property revaluation
Profit on termination of leases
Profit on sale of property
Profit on sale of business
Manufacturer compensation income
Miscellaneous
Segment profit
Unallocated corporate expenses
Profit before tax
Income tax expense
Net profit
Depreciation and amortisation
(101,918)
(12,342)
(6,168)
Assets
Segment assets
Liabilities
Segment liabilities
Net assets
3,172,170
99,828
458,947
2,218,404
953,766
99,061
767
326,029
132,918
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,663,462
(30,699)
-
(30,699)
8,663,462
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
488,071
(79,619)
408,452
1,078
(1,803)
(5,156)
14,197
10,957
31,894
215
735
460,569
(3,762)
456,807
(118,070)
338,737
(120,428)
3,730,945
2,643,494
1,087,451
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 99
Property
$’000
Investments
$’000
Eliminations
$’000
Consolidated
$’000
30 Segment information (continued)
(b) Segment results (continued)
Segment reporting 2020
Sales to external customers
Inter-segment sales
Total sales revenue
Segment result
Operating profit before interest
External interest expense allocation
Operating contribution
Share of net profit of equity accounted
investments
Business acquisition and divestment costs
Impairment of non-current assets
Property revaluation
Profit on sale of property/businesses & rent
waivers
Business integration costs
Government wage subsidies
Manufacturer compensation income
Segment profit
Unallocated corporate expenses
Profit before tax
Income tax expense
Net profit
Car Retailing
$’000
Truck
Retailing
$’000
7,776,540
971,332
-
-
7,776,540
971,332
256,780
(71,468)
185,312
970
(612)
(80,704)
-
13,996
(1,689)
123,669
31,751
272,693
26,391
(9,059)
17,332
-
(1,177)
-
-
441
-
6,899
-
23,495
1,803
14,903
16,706
11,830
(7,857)
3,973
-
-
-
(9,996)
1,962
-
-
-
-
-
-
-
-
-
2,788
-
-
-
860
-
-
-
(4,061)
3,648
Depreciation and amortisation
(131,435)
(31,402)
(3,420)
Assets
Segment assets
Liabilities
Segment liabilities
Net assets
3,283,011
403,274
347,366
2,506,415
776,596
381,804
21,470
220,855
126,511
-
-
-
-
(c) Recognition and measurement
Operating segments
Operating segments are identified based on internal reports that are regularly reviewed by the Group’s Board of Directors in order to
allocate resources to the segment and assess its performance.
The Group has four operating segments being (i) Car Retailing (ii) Truck Retailing (iii) Property and (iv) Investments. Currently the
segment of “Other” is not required.
-
8,749,675
(14,903)
(14,903)
-
8,749,675
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
295,001
(88,384)
206,617
3,758
(1,789)
(80,704)
(9,996)
17,259
(1,689)
130,568
31,751
295,775
(15,669)
280,106
(88,575)
191,531
(166,257)
4,033,651
3,109,074
924,577
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 100
31 Contributed equity
(a) Paid up capital
Ordinary shares - Fully paid
Consolidated
2021
$’000
2020
$’000
1,173,069
1,173,069
Ordinary shares confer on their holders the right to participate in dividends declared by the Board and to vote at general meetings of
the Company.
At the reporting date, the Employee Share Trust held 2,597,771 shares, which are reported in share capital (2020: 2,274,938).
(b) Movements in ordinary share capital
Date
Details
1 January 2021
Opening balance
31 December 2021
Closing balance
Number of
shares
256,933,106
256,933,106
Issue price
-
-
$’000
1,173,069
1,173,069
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 32 Reserves and retained earnings
(a) Reserves
Asset revaluation reserve
Share-based payments reserve
Foreign currency translation reserve
Business combination reserve
Investment revaluation reserve
Movements:
Asset revaluation reserve:
Balance at the beginning of the financial year
Revaluation surplus during the year - gross
Deferred tax
Transfer to retained earnings relating to properties sold
Balance at the end of the financial year
Share-based payments reserve:
Balance at the beginning of the financial year
Deferred tax
Payments received from employees for exercised options
Shares acquired by the Employee Share Trust
Employee share schemes - value of employee services
Balance at the end of the financial year
Foreign currency translation reserve:
Balance at the beginning of the financial year
Other comprehensive income
Balance at the end of the financial year
Business combination reserve:
Balance at the beginning of the financial year
Balance at the end of the financial year
Investment revaluation reserve:
Balance at the beginning of the financial year
Balance at the end of the financial year
101
Notes
19
21
32(b)
21
Consolidated
2021
$’000
24,078
(91,541)
1,213
(479,042)
(72,686)
(617,978)
32,834
4,999
(1,500)
(12,255)
24,078
2020
$’000
32,834
(62,510)
1,204
(479,042)
(72,686)
(580,200)
28,312
6,459
(1,937)
-
32,834
(62,510)
(37,863)
(253)
19,037
(51,019)
3,204
(91,541)
1,204
9
1,213
(2,168)
8,610
(31,497)
408
(62,510)
1,153
51
1,204
(479,042)
(479,042)
(479,042)
(479,042)
(72,686)
(72,686)
(72,686)
(72,686)
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 102
32 Reserves and retained earnings (continued)
(b) Retained earnings
Retained profits at the beginning of the financial year
Net profit for the year
Less: NCI Share
Transfer to retained earnings
Dividends provided for or paid
Retained profits at the end of the financial year
(c) Nature and purpose of other reserves
Consolidated
2021
$’000
317,848
330,737
(12,913)
12,255
(137,202)
510,725
2020
$’000
199,463
156,211
(8,921)
-
(28,905)
317,848
(i) Asset revaluation reserve
The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets as described in
Note 19(a).
(ii) Share-based payments reserve
The share-based payment reserve is used to recognise the fair value of performance rights expected to vest and the fair value of
equity expected to be issued under various share incentive schemes referred to in Notes 42 and 43.
(iii) Foreign currency translation reserve
The foreign currency translation reserve is used to recognise the cumulative net movement in foreign assets, liabilities and results held
by foreign subsidiaries since acquisition.
(iv) Business combination reserve
The business combination reserve is used to recognise the difference between the value of consideration paid to acquire the non-
controlling interest, the carrying value of the non-controlling interest and the value of shares acquired.
Investment revaluation reserve
(v)
The investment revaluation reserve represents the cumulative gains and losses arising on assets held at FVOCI that have been
recognised in other comprehensive income.
33 Financial instruments
(a) Overview
The Group has exposure to the following key risks from its use of financial instruments:
• Credit risk
• Liquidity risk
• Market risk (interest rate risk)
This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and processes
for measuring and managing risk, and the Group’s management of capital. Further quantitative disclosures are included throughout
these consolidated financial statements.
The Directors have overall responsibility for the establishment and oversight of the Group’s risk management framework.
The Directors have established an Audit and Risk Committee (“the Committee”) which is responsible for monitoring, assessing and
reporting on the Group’s risk management system. The Committee will provide regular reports to the Board of Directors on its activities.
The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk
limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to
reflect changes in market conditions and the Group’s activities.
The Committee oversees how management monitors compliance with the risk management policies and procedures, and reviews
the adequacy of the risk management framework in relation to the risks. The Committee is assisted in its oversight by Internal Audit.
Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are
reported to the Committee.
The Group’s principal financial instruments comprise bank loans, bailment finance, cash and short-term deposits. The main purpose of
these financial instruments is to raise finance for and fund the Group’s operations. The Group has various other financial instruments
such as trade debtors and trade creditors which arise directly from its operations. It is, and has been throughout the period under
review, the Group’s policy that no speculative trading in financial instruments shall be undertaken.
The main risks arising from the Group’s financial instruments are interest rate risk, credit risk and liquidity risk. The Board reviews and
agrees on policies for managing each of these risks and they are summarised as follows.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 103
(iii) Market risk
Market risk is the risk that changes in market prices, such as
interest rates, will affect the Group’s income or the value of its
holdings of financial instruments. The objective of market risk
management is to manage and monitor market risk exposures
within acceptable parameters, whilst optimising the return on risk.
Interest rate risk
The Group’s policy is to keep between 0% and 50% of its
borrowings at fixed rates of interest. As at 31 December 2021,
30% (2020: 53%) of the Group’s borrowings were at a fixed rate
of interest (excluding bailment interest).
The Group classifies interest rate swaps as cash flow hedges.
Interest rate sensitivity
The sensitivity analysis below has been determined based on
the exposure to interest rates for both derivative and non-
derivative instruments at reporting date and the stipulated
change taking place at the beginning of the financial year and
held constant throughout the reporting period. A 50 basis point
increase or decrease is used when reporting interest rate risk
internally to key management and represents management’s
assessment of the possible change in interest rates.
At the reporting date, if interest rates had been 50 basis points
higher or lower and all other variables were held constant, the
Group’s net profit after tax would increase/decrease by $5.0
million (2020: $5.9 million) per annum. This is mainly due to the
Group’s exposures to interest rates on its variable rate borrowings.
(iv) Capital management
The Board’s policy is to maintain a strong capital base so as to
maintain investor, creditor and market confidence and to sustain
future development of the business.
The Board seeks to maintain a balance between the higher
returns that might be possible with higher levels of borrowings and
the advantages and security afforded by a sound capital position.
There were no changes in the Group’s approach to capital
management during the period.
33 Financial instruments (continued)
(a) Overview (continued)
(i) Credit risk
Credit risk refers to the risk that a counterparty will default on
its contractual obligations resulting in a financial loss to the
Group. The Group has adopted a policy of only dealing with
creditworthy counterparties and obtaining sufficient collateral
where appropriate, as a means of mitigating the risk of financial
loss from defaults. Further, it is the Group’s policy that all
customers who wish to trade on credit terms are subject to
credit verification procedures.
Trade receivables consist of a large number of customers,
spread across geographical areas. The Group applies the
simplified approach permitted by AASB 9, which requires
expected lifetime credit losses to be recognised from initial
recognition of the receivable. The expected credit losses on
these financial assets are estimated using a provision matrix
based on the Group’s historical credit loss experience.
With respect to credit risk arising from financial assets of the
Group (comprised of cash, cash equivalents, receivables, finance
lease receivables and other loans receivable), the Group’s
maximum exposure to credit risk at the balance date, excluding
the value of any collateral or other security, is the carrying
amount as disclosed in the Consolidated Statement of Financial
Position and Notes to the Consolidated Financial Statements.
The Group’s credit risk on liquid funds is limited as the counter
parties are major Australian banks with favourable credit ratings
assigned by international credit rating agencies.
(ii) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet
its financial obligations as they fall due. The Group’s approach
to managing liquidity is to ensure, as far as possible, that it will
always have sufficient liquidity to meet its liabilities when due,
under both normal and stressed conditions.
The Group’s overall objective is to maintain a balance between
continuity of funding and flexibility through the use of bank
overdrafts and bank loans.
The Group’s ability to manage liquidity risk is not affected by the
application of AASB 16 given the net current asset position at
31 December 2021, despite recognition of current lease liabilities
and finance lease receivables. The cash commitments in relation
to each lease remain unchanged. Management are of the view
that the Group will continue to generate sufficient operating cash
flows to meet its financial obligations as they fall due.
The Group also manages liquidity risk by maintaining adequate
reserves, banking facilities and reserve borrowing facilities, by
continuously monitoring forecast and actual cash flows and
matching the maturity profiles of financial assets and liabilities.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 104
33 Financial instruments (continued)
(b) Credit risk
(i) Exposure to credit risk
The carrying amount of financial assets (as per Note 10) represents the maximum credit exposure. The maximum exposure to credit risk
at the reporting date was:
Trade and other receivables
Less: Allowance for expected credit losses
Consolidated
2021
$’000
233,024
(4,064)
228,960
2020
$’000
274,502
(5,639)
268,863
Impairment losses
(ii)
The ageing of trade receivables at the reporting date is detailed in Note 10.
(iii) Fair values & exposures to credit & liquidity risk
Detailed in the following table, the Directors consider that the carrying amounts of financial assets and financial liabilities recorded in
the consolidated financial statements approximate their fair value.
Financial assets
Trade and other receivables net of expected credit losses
Cash and cash equivalents
Other non-current receivables
Financial liabilities
Bills payable and fully drawn advances
Capital loan
Vehicle bailment
Trade and other payables
Consolidated
2021
$’000
2020
$’000
Notes
10
9
14
27
27
22
228,960
197,620
35,711
462,291
-
326,029
681,325
364,263
268,863
209,092
25,999
503,954
137,500
200,855
844,307
436,372
1,371,617
1,619,034
The fair value of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are
determined with reference to quoted market prices (includes listed redeemable notes, bills of exchange, debentures and perpetual notes).
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 105
33 Financial instruments (continued)
(b) Credit risk (continued)
(iii) Fair values & exposures to credit & liquidity risk (continued)
Maturity profile
The below table provides a maturity profile for the Group’s financial instruments that are exposed to interest rate risk at balance
date. The amounts disclosed in the table are gross contractual undiscounted cash flows (principal and interest) required to settle the
respective liabilities. The interest rate is based on the rate applicable as at the end of the financial period.
Contractual maturities of financial assets and liabilities
Less than
1 year
$’000
1 - 2 years
$’000
2 - 3 years
$’000
3 - 4 years
$’000
4 - 5 years
$’000
5+ years
$’000
Total
$’000
At 31 December 2021
Interest bearing
Floating rate
Financial assets
Cash and cash equivalents
Average interest rate
197,620
0.10%
-
-
-
3,295
1,764
5,059
1.72%
-
-
-
3,295
1,764
5,059
1.52%
-
-
-
-
-
-
268,707
207,034
1,764
1,764
270,471
208,798
1.49%
1.91%
-
-
-
-
16,313
16,313
3.09%
197,620
681,325
485,626
25,133
1,192,084
681,325
3,295
1,764
686,384
1.95%
24,005
3.34%
72,925
3.35%
21,892
3.19%
41,086
3.18%
58,270
3.17%
154,735
3.20%
372,913
Trade and other payables
364,264
240,761
-
-
-
-
-
-
-
-
23,910
264,671
-
364,264
Please refer to Note 17(a)(iii) and Note 18 for ageing of lease liabilities and finance lease receivables, respectively.
Financial liabilities
Vehicle bailment (current)
Fully drawn advances
Capital loan
Average interest rate
Fixed rate
Financial liabilities
Capital loan
Average interest rate
Non-interest bearing
Financial assets
Trade debtors
Financial liabilities
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 106
33 Financial instruments (continued)
(b) Credit risk (continued)
(iii) Fair values & exposures to credit & liquidity risk (continued)
Maturity profile (continued)
Less than
1 year
$’000
209,092
0.10%
844,307
32,114
1,791
878,212
2.32%
1 - 2 years
$’000
2 - 3 years
$’000
3 - 4 years
$’000
4 - 5 years
$’000
5+ years
$’000
Total
$’000
-
-
-
247,206
1,791
248,997
2.21%
-
-
-
191,595
1,791
193,386
2.35%
-
-
-
-
1,791
1,791
1.79%
-
-
-
-
-
-
-
-
1,791
1,791
1.86%
14,565
14,565
1.71%
209,092
844,307
470,915
23,520
1,338,742
12,429
3.17%
12,429
3.17%
61,349
3.17%
10,316
3.17%
29,610
3.17%
202,451
328,584
3.17%
At 31 December 2020
Interest bearing
Floating rate
Financial assets
Cash and cash equivalents
Average interest rate
Financial liabilities
Vehicle bailment (current)
Fully drawn advances 11
Capital loan (non-current)
Average interest rate
Fixed rate
Financial liabilities
Capital loan (non-current)
Average interest rate
Non-interest bearing
Financial assets
Trade debtors
Financial liabilities
Trade and other payables
436,372
271,714
-
-
-
-
-
-
-
-
23,148
294,862
-
436,372
(iv) Estimation of fair value
The following summarises the major methods and assumptions used in estimating the fair value of financial instruments:
Loans and borrowings
Fair value is calculated based on discounted expected future principal and interest cash flows.
Trade and other receivables/payables
For receivables/payables with a remaining life of less than one year, the notional amount is deemed to reflect the fair value. All other
receivables/payables are discounted to determine the fair value.
11 The amount included in fully drawn advances relate to variable rates that are hedged with interest rate swaps to fixed rates.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 107
34 Investments in subsidiaries
(a) Deed of cross guarantee
Name of Entity
Eagers Automotive Limited
360 Finance Pty Ltd
360 Financial Services Australia Pty Ltd
360 Insurance Services Pty Ltd
A.P. Ford Pty Ltd
A.P. Group Pty Ltd
A.P. Motors (No.1) Pty Ltd
A.P. Motors (No.2) Pty Ltd
A.P. Motors (No.3) Pty Ltd
A.P. Motors Pty Ltd
ACM Autos Holdings Pty Ltd
ACM Autos Pty Ltd
ACM Liverpool Pty Ltd
ACN 132 712 111 Pty Ltd
Adtrans Australia Pty Ltd
Adtrans Automotive Group Pty Ltd
Adtrans Corporate Pty Ltd
Adtrans Group Pty Ltd
Adtrans Hino Pty Ltd
Adtrans Truck Centre Pty Ltd
Adtrans Trucks Adelaide Pty Ltd
Adtrans Trucks Pty Ltd
Adtrans Used Pty Ltd
Adverpro Pty Ltd
AHG 1 Pty Ltd
AHG Automotive Mining and Industrial Solutions Pty Ltd
AHG Coatings Pty Ltd
AHG Finance 2005 Pty Ltd
AHG Finance Pty Ltd
AHG Franchised Automotive Pty Ltd
AHG International Pty Ltd
AHG Management Company Pty Ltd
AHG Newcastle Pty Ltd
AHG Property Pty Ltd
AHG Services (NSW) Pty Ltd
AHG Services (QLD) Pty Ltd
AHG Services (VIC) Pty Ltd
AHG Services (WA) Pty Ltd
AHG Trade Parts Pty Ltd
AHG Training Pty Ltd
AHG WA (2015) Pty Ltd
AHGCL 2016 Pty Ltd
AHGSW 2018 Pty Ltd
AP Townsville Pty Ltd
APE Cars Mgmt Pty Ltd
Associated Finance Pty Ltd
Auckland Auto Collection Limited
Austral Pty Ltd
AUT 6. Pty Ltd
Auto Ad Pty Ltd
Equity Holding
Member of DOCG
Membership Group
Opt In/Out
2021
%
100
-
-
-
100
100
100
100
100
100
80
80
100
100
100
100
100
100
100
100
-
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
78
100
100
100
100
100
100
2020
%
2021
2020
2021
2020
2021
2020
100
100
100
100
100
100
100
100
100
100
80
80
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Y
N
N
N
Y
Y
Y
Y
Y
Y
N
N
Y
Y
Y
Y
Y
Y
Y
Y
N
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
N
N
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
N
Y
Y
Y
C
N/A
N/A
N/A
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
N/A
N/A
N/A
N/A
Opt Out
C
C
C
C
C
C
C
C
N/A
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
EC
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
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C
C
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EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 108
34 Investments in subsidiaries (continued)
(a) Deed of cross guarantee (continued)
Name of Entity
Automotive Holdings Group (Queensland) Pty Ltd
Automotive Holdings Group (Victoria) Pty Ltd
Automotive Holdings Group Pty Ltd
BASW Pty Ltd
Big Rock 2005 Pty Ltd
Big Rock Pty Ltd
Bill Buckle Autos Pty Ltd
Bill Buckle Holdings Pty Ltd
Bill Buckle Leasing Pty Ltd
Black Auto CQ Pty Ltd
Boonarga Welding Pty Ltd
Bradstreet Motors Holdings Pty Ltd
Bradstreet Motors Pty Ltd
Cardiff Car City Holdings Pty Ltd
Cardiff Car City Pty Ltd
Carlin Auction Services (NSW) Pty Ltd
Carlin Auction Services (QLD) Pty Ltd
Carlins Automotive Auctioneers (QLD) Pty Ltd
Carlins Automotive Auctioneers (S.A) Pty Ltd
Carlins Automotive Auctioneers (WA) Pty Ltd
Carlins Automotive Auctioneers Pty Ltd
Carlins Corporate Vehicle Services Pty Ltd
Carlins Group Holdings Pty Ltd
Carsplus Australia Pty Ltd
Carzoos Pty Ltd
Castle Hill Autos No. 1 Pty Ltd
Castlegate Enterprises Pty Ltd
CFD (2012) Pty Ltd
CH Auto Pty Ltd
Cheap Cars QLD Pty Ltd
Chellingworth Pty Ltd
City Auto (2016) Holdings Pty Ltd
City Auto (2016) Pty Ltd
City Automotive Group Pty Ltd
City Motors (1981) Pty Ltd
Crampton Automotive Pty Ltd
Doncaster Auto (2016) Pty Ltd
Drive A While Pty Ltd
Dual Autos Pty Ltd
Duncan Autos 2005 Pty Ltd
Duncan Autos Pty Ltd
E. G. Eager & Son Pty Ltd
EACAB Pty Ltd
Eagers Finance Pty Ltd
Eagers MD Pty Ltd
Eagers Nominees Pty Ltd
Eagers Retail Pty Ltd
EASST Pty Ltd
Easy Auto 123 Pty Ltd
Essendon Auto (2017) Pty Ltd
Equity Holding
Member of DOCG
Membership Group
Opt In/Out
2021
%
2020
%
2021
2020
2021
2020
2021
2020
100
100
100
80
80
100
100
100
100
100
80
80
80
80
80
53
-
53
53
53
53
-
53
100
100
100
100
100
100
78
100
80
80
100
100
100
-
100
100
100
100
100
78
100
80
100
100
100
100
100
100
100
100
80
80
100
100
100
100
100
80
80
80
80
80
53
53
-
53
100
53
53
53
100
100
100
100
100
100
100
100
80
80
100
100
100
100
100
100
100
100
100
-
100
80
100
100
-
100
100
Y
Y
Y
Y
N
Y
Y
Y
Y
Y
Y
N
N
N
N
N
N
N
N
N
N
N
N
Y
Y
Y
Y
Y
Y
Y
Y
N
N
Y
Y
Y
N
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Opt Out
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Y
Y
Y
Y
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Y
Y
Y
Y
Y
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N
N
N
Y
Y
Y
Y
Y
Y
Y
Y
N
N
Y
Y
Y
Y
Y
Y
Y
Y
Y
N/A
Y
Y
Y
Y
N/A
Y
Y
C
C
C
EC
N/A
C
C
C
C
C
EC
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
C
C
C
C
C
C
EC
C
N/A
N/A
C
C
C
N/A
C
C
C
C
C
EC
C
EC
C
C
C
C
C
C
C
C
EC
N/A
C
C
C
C
C
EC
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
C
C
C
C
C
C
C
C
N/A
N/A
C
C
C
C
C
C
C
C
C
N/A
C
EC
C
C
N/A
C
C
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 109
34 Investments in subsidiaries (continued)
(a) Deed of cross guarantee (continued)
Name of Entity
Eurocars (SA) Pty Ltd
Falconet Pty Ltd
Ferntree Gully Autos Holdings Pty Ltd
Ferntree Gully Autos Pty Ltd
Finmo Pty Ltd
Geraldine Nominees Pty Ltd
Giant Autos (1997) Pty Ltd
Giant Autos Pty Ltd
Graham Cornes Motors Pty Ltd
Grand Autos 2005 Pty Ltd
Highland Autos Pty Ltd
Highland Kackell Pty Ltd
HM (2015) Holdings Pty Ltd
HM (2015) Pty Ltd
IB MD Pty Ltd
IB Motors Pty Ltd
Janasen Pty Ltd
Janetto Holdings Pty Ltd
Kingspoint Pty Ltd
Laverton Auto (2016) Pty Ltd
Leaseline & General Finance Pty Ltd
Lionteam Pty Ltd
LWC International Limited
LWC Limited
Maitland City Motor Group Holdings Pty Ltd
Maitland City Motor Group Pty Ltd
Matchacar Pty Ltd
MB VIC Pty Ltd
MBSA Motors Pty Ltd
MCM Autos Pty Ltd
MCM Sutherland Pty Ltd
Melbourne City Autos (2012) Pty Ltd
Melbourne Truck and Bus Centre Pty Ltd
Melville Autos 2005 Pty Ltd
Melville Autos Pty Ltd
Mornington Auto Group (2012) Pty Ltd
Motors Group (Glen Waverley) Pty Ltd
Motors TAS Pty Ltd
Newcastle Commercial Vehicles Pty Ltd
North City (1981) Pty Ltd
North City 2005 Pty Ltd
Northside Autos 2005 Pty Ltd
Northside Nissan (1986) Pty Ltd
Northwest (WA) Pty Ltd
Novated Direct Pty Ltd
NSW Vehicle Wholesale Pty Ltd
Nuford Ford Pty Ltd
Nundah Motors Pty Ltd
OPM (2012) Holdings Pty Ltd
OPM (2012) Pty Ltd
Equity Holding
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Membership Group
Opt In/Out
2021
%
2020
%
2021
2020
2021
2020
2021
2020
100
100
100
100
100
-
100
100
90
80
80
100
100
100
80
100
100
100
100
-
100
100
100
100
80
80
100
100
100
80
100
100
100
100
100
100
87.5
100
100
100
100
100
100
100
100
100
100
100
80
80
100
100
80
80
100
100
100
100
99
80
80
100
80
80
80
100
100
100
100
100
100
100
100
100
80
80
100
100
100
80
100
100
100
100
100
100
80
100
100
100
100
100
100
100
100
100
100
100
80
80
Y
Y
N
N
Y
N
Y
Y
Y
N
N
Y
N
N
Y
Y
Y
Y
Y
N
Y
Y
Y
Y
N
N
Y
Y
Y
N
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
N
N
Y
Y
N
N
Y
Y
Y
Y
Y
N
N
Y
N
N
Y
Y
Y
Y
Y
Y
Y
Y
N
N
N
N
Y
Y
Y
N
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
N
N
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Opt Out
Opt Out
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Opt In
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C
C
N/A
N/A
C
N/A
C
C
EC
N/A
N/A
C
N/A
N/A
EC
C
C
C
C
N/A
C
C
C
C
N/A
N/A
C
C
C
C
C
N/A
N/A
C
C
C
C
EC
N/A
N/A
C
N/A
N/A
EC
C
C
C
C
C
C
C
N/A
N/A
N/A
N/A
C
C
C
N/A
N/A
C
C
C
C
C
C
C
C
C
C
C
C
EC
EC
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
N/A
N/A
N/A
N/A
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 110
34 Investments in subsidiaries (continued)
(a) Deed of cross guarantee (continued)
Name of Entity
Osborne Park Autos Pty Ltd
Penrith Auto (2016) Pty Ltd
Perth Auto Alliance Pty Ltd
Port City Autos Pty Ltd
Precision Automotive Technology Pty Ltd
PT (2013) Pty Ltd
Rent Two Buy Pty Ltd
RL Sublessor Pty Ltd
Sabalan Holdings Pty Ltd
Sabalan Pty Ltd
Shemapel 2005 Pty Ltd
Skipper Trucks Pty Ltd
South West Queensland Motors Pty Ltd
Southeast Automotive Group Pty Ltd
Southern Automotive Group Pty Ltd
Southside Autos (1981) Pty Ltd
Southside Autos 2005 Pty Ltd
Southwest Automotive Group Pty Ltd
Stillwell Trucks Pty Ltd
Submo Pty Ltd
SWGT Pty Ltd
Total Autos (1990) Pty Ltd
Total Autos 2005 Pty Ltd
Vehicle Storage & Engineering Pty Ltd
VMS Pty Ltd
WA Trucks Pty Ltd
Webster Trucks Mgmt Pty Ltd
Western Equipment Rentals Pty Ltd
Whitehorse Trucks Pty Ltd
Widevalley Pty Ltd
WS Motors Pty Ltd
Zupp Holdings Pty Ltd
Zupps Aspley Pty Ltd
Zupps Gold Coast Pty Ltd
Zupps Mt Gravatt Pty Ltd
Zupps Parts Pty Ltd
Zupps Southside Pty Ltd
Equity Holding
Member of DOCG
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Opt In/Out
2021
%
2020
%
2021
2020
2021
2020
2021
2020
100
100
100
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100
100
100
100
80
80
100
-
80
100
100
100
100
100
-
100
100
100
100
100
100
100
100
100
-
100
78
100
100
100
100
100
-
100
100
100
100
100
99
100
100
80
80
100
100
80
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Y
Y
Y
N
Y
N
Y
Y
N
N
Y
N
Y
Y
Y
Y
Y
Y
N
Y
Y
Y
Y
Y
Y
Y
Y
Y
N
Y
Y
Y
Y
Y
Y
Y
N
Y
Y
Y
Y
Y
N
Y
N
N
N
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
C
C
C
N/A
C
N/A
C
C
N/A
N/A
C
N/A
EC
C
C
C
C
C
N/A
C
C
C
C
C
C
C
C
C
N/A
C
EC
C
C
C
C
C
N/A
C
C
C
C
C
N/A
C
N/A
N/A
N/A
C
C
EC
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
C
Opt In
Opt In
Opt Out
C - Member of the Closed Group
EC - Member of the Extended Closed Group
All subsidiaries that are either directly controlled by Eagers Automotive Limited, or are wholly owned within the Group, have ordinary
class of shares and are incorporated in Australia or New Zealand.
All entities noted as members of the Deed of Cross Guarantee (DOCG) above, were parties to a Deed of Cross Guarantee with Eagers
Automotive Limited pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 which has been lodged with and
approved by Australian Securities and Investments Commission as at 31 December 2021. Under the DOCG each of these companies
guarantee the debts of the other named companies.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 111
34 Investments in subsidiaries (continued)
(a) Deed of cross guarantee (continued)
(i) Members of the closed group
A Consolidated Statement of Profit or Loss and Consolidated Statement of Financial Position, comprising the Company and entities
which are members of the Closed Group, after eliminating all transactions between parties to the Deed of Cross Guarantee, at 31
December 2021 is set out below:
Deed of Cross Guarantee
Consolidated Statement of Profit or Loss
Profit before tax from continuing operations
Addback: AASB 16 closed group adjustment
Profit before tax from continuing operations
Income tax expense from continuing operations
Profit for the period from continuing operations
Loss for the period from discontinued operations
2021
$’000
2020
$’000
350,166
(2,733)
347,433
(84,315)
263,118
(8,000)
198,694
553
199,247
(67,687)
131,560
-
Profit for the year
255,118
131,560
Consolidated Statement of Financial Position
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Current tax receivable
Prepayments and deposits
Finance lease receivables
Assets classified as held for sale
Total current assets
Non-current assets
Other loans receivable
Financial assets at fair value through other comprehensive income
Investments in associates
Other non-current receivables
Property, plant and equipment
Intangible assets
Deferred tax assets
Other non-current assets
Right-of-use assets
Finance lease receivables
Total non-current assets
Total assets
189,637
195,455
720,778
10,270
16,055
34,715
18,670
172,663
235,378
813,512
-
29,820
27,309
-
1,185,580
1,278,682
22,659
577
1,555
11,801
502,015
679,996
139,439
10,508
563,243
235,932
23,148
588
1,233
-
474,122
667,283
147,219
9,837
718,161
187,971
2,167,725
2,229,562
3,353,305
3,508,243
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 112
34 Investments in subsidiaries (continued)
(a) Deed of cross guarantee (continued)
(i) Members of the closed group (continued)
Deed of Cross Guarantee
Current liabilities
Trade and other payables
Borrowings - bailment and other current loans
Current tax liabilities
Provisions
Deferred revenue
Lease liabilities
Total current liabilities
Non-current liabilities
Borrowings
Deferred revenue
Provisions
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Retained earnings
Non-controlling interests
Total equity
2021
$’000
2020
$’000
258,081
557,415
-
85,145
7,917
150,975
326,232
680,536
24,235
112,306
15,864
164,104
1,059,533
1,323,277
311,062
16,462
11,857
304,513
20,906
24,264
883,559
1,014,753
1,222,940
1,364,436
2,282,473
2,687,713
1,070,832
820,530
1,173,069
(637,209)
534,972
1,070,832
-
1,173,069
(599,431)
246,892
820,530
-
1,070,832
820,530
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 113
34 Investments in subsidiaries (continued)
(a) Deed of cross guarantee (continued)
(ii) Members of the extended closed group
Entities that are parties to the Deed of Cross Guarantee and controlled by Eagers Automotive Limited.
A Consolidated Statement of Profit or Loss and Consolidated Statement of Financial Position, comprising the entities that are parties
to the Deed of Cross Guarantee, after eliminating all transactions between parties to the Deed of Cross Guarantee, at 31 December
2021 is set out below:
Deed of Cross Guarantee
Consolidated Statement of Profit or Loss
Profit before tax from continuing operations
Addback: AASB 16 extended closed group adjustment
Profit before tax from continuing operations
Income tax expense from continuing operations
Profit for the period from continuing operations
Loss for the period from discontinued operations
2021
$’000
2020
$’000
380,566
(2,343)
378,223
(91,784)
286,439
(8,000)
252,610
328
252,938
(73,484)
179,454
-
Profit for the year
278,439
179,454
Consolidated Statement of Financial Position
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Current tax receivable
Prepayments and deposits
Finance lease receivables
Assets classified as held for sale
Total current assets
Non-current assets
Other loans receivable
Financial assets at fair value through other comprehensive income
Investments in associates
Other non-current receivables
Property, plant and equipment
Intangible assets
Deferred tax assets
Other non-current assets
Right-of-use assets
Finance lease receivables
Total non-current assets
Total assets
190,115
213,264
788,357
6,643
16,604
34,715
18,670
173,360
245,710
862,063
-
30,016
27,309
-
1,268,368
1,338,458
22,659
577
1,555
11,801
508,009
725,089
142,297
10,508
590,088
235,932
23,148
588
1,233
-
477,058
700,616
149,049
9,837
736,978
187,971
2,248,515
2,286,478
3,516,883
3,624,936
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 114
34 Investments in subsidiaries (continued)
(a) Deed of cross guarantee (continued)
(ii) Members of the extended closed group (continued)
Deed of Cross Guarantee
Current liabilities
Trade and other payables
Borrowings - bailment and other current loans
Current tax liabilities
Provisions
Deferred revenue
Lease liabilities
Total current liabilities
Non-current liabilities
Borrowings
Deferred revenue
Provisions
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Retained earnings
Non-controlling interests
Total equity
2021
$’000
2020
$’000
257,600
614,087
-
93,178
8,910
157,804
314,441
726,228
21,600
116,919
16,517
167,992
1,131,579
1,363,697
311,062
16,462
11,857
304,513
20,906
24,264
911,644
1,029,540
1,251,025
1,379,223
2,382,604
2,742,920
1,134,279
882,016
1,173,069
(617,978)
562,539
1,117,630
16,649
1,173,069
(580,201)
281,430
874,298
7,718
1,134,279
882,016
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 34 Investments in subsidiaries (continued)
(b) Information relating to Eagers Automotive Limited (the parent entity)
Financial performance
Profit for the year
Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Retained earnings
Reserves
Asset revaluation reserve
Business combination reserve
Investment revaluation reserve
Share-based payments reserve
115
2021
$’000
2020
$’000
192,927
85,373
40,811
612,945
653,756
-
-
-
-
637,655
637,655
13,883
-
13,883
653,756
623,772
1,173,069
1,173,069
97,863
38,898
1,683
1,683
(479,042)
(479,042)
(48,276)
(91,541)
653,756
(48,326)
(62,510)
623,772
Refer Notes 38(a) and 38(b) in respect of guarantees entered into by the parent entity in relation to debts of its subsidiaries.
(c) Details of non-wholly owned subsidiaries
The table below shows details of non-wholly owned subsidiaries of the Group. The Group have reviewed its subsidiaries that have non-
controlling interests and note that they are not material to the reporting entity.
Individually immaterial subsidiaries with non-controlling interest
Profit allocated to
non-controlling interests
Accumulated
non-controlling interests
2021
$’000
12,913
2020
$’000
8,921
2021
$’000
21,635
2020
$’000
13,860
Movement - non-controlling interest
Balance at the beginning of the financial year
Profit for the year
Acquisition of non-controlling interest
Payment of dividend
Disposal of non-controlling interest
Balance as at the end of the financial year
Consolidated
2021
$’000
2020
$’000
13,860
12,913
1,395
(3,985)
(2,548)
21,635
9,423
8,921
-
(4,484)
-
13,860
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 116
35 Business acquisitions
(a) Acquisition of businesses
The Group acquired the following businesses during the 2021 year as detailed below:
Year
2021
2021
2021
Name of business
Westpoint Volkswagen
Armstrong Ford
Date of acquisition
Principal activity
31 March 2021
Motor Vehicle Dealer
1 September 2021
Motor Vehicle Dealer
Kelly Trotter and Heritage Motor Group
1 December 2021
Motor Vehicle Dealer
Proportion
acquired
100%
100%
100%
The acquired businesses did not contribute materially to the consolidated profit before tax or consolidated revenue for the period.
Allocation of purchase consideration
The purchase price of the businesses acquired has been allocated as follows:
Westpoint
Volkswagen
$’000
Armstrong
Ford
$’000
Kelly Trotter
and Heritage
Motor Group
$’000
2021
Total
consolidated
$’000
Cash consideration
Total purchase consideration
Consolidated fair value at acquisition date
Net assets acquired
Receivables, prepayments
Inventory
Property, plant and equipment
Creditors, borrowings and provisions
Net assets acquired
Acquisition cost
Goodwill on acquisition 1
785
785
890
890
12,728
12,728
14,403
14,403
2021
$’000
79
8,025
604
(5,054)
3,654
14,403
10,749
1 Goodwill arose on the business combinations because as at the date of acquisition the consideration paid for the combination included amounts in
relation to the benefit of expected synergies and future revenue and profit growth from the businesses acquired. These benefits were not recognised
separately from goodwill as the future economic benefits arising from them could not be reliably measured in time for inclusion in these consolidated
financial statements. Therefore the amount allocated to goodwill on acquisition has been provisionally determined at the end of the reporting period.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 117
35 Business acquisitions (continued)
(b) Acquisition of businesses in prior year
The Group acquired the following businesses during the 2020 year, which have been finalised in the 2021 year, as detailed below:
Year
2020
2020
2020
Name of business
Toyota Albion
Daimler Trucks Somerton
Indooroopilly Honda
Date of acquisition
Principal activity
31 January 2020
Motor Dealership
31 July 2020
Motor Dealership
12 November 2020
Motor Dealership
Proportion
acquired
100%
100%
100%
The acquired businesses did not contribute materially to the consolidated profit before tax or consolidated revenue for the period.
Allocation of purchase consideration
The purchase price of the businesses acquired has been allocated as follows:
Cash consideration
Total purchase consideration
Consolidated fair value at acquisition date
Net assets acquired
Receivables, prepayments
Inventory
Property, plant and equipment
Creditors, borrowings and provisions
Net assets acquired
Acquisition cost
Goodwill on acquisition 2
Toyota Albion
$’000
14,932
14,932
Daimler
Trucks
Somerton
$’000
1,698
1,698
Indooroopilly
Honda
$’000
2020
Total
consolidated
$’000
111
111
16,741
16,741
2020
$’000
111
2,249
168
(1,287)
1,241
16,741
15,500
2 Goodwill arose in the business combinations because as at the date of acquisition the consideration paid for the combination included amounts in relation
to the benefit of expected synergies and future revenue and profit growth from the businesses acquired. These benefits were not recognised separately
from goodwill as the future economic benefits arising from them could not be reliably measured in time for inclusion in these consolidated financial
statements. Subsequent to year end, the acquisitions were finalised with no adjustment.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 118
35 Business acquisitions (continued)
(c) Recognition and measurement
Business combinations
The acquisition method of accounting is used for all business
combinations regardless of whether equity instruments or other
assets are acquired. Cost is measured as the fair value of the
assets given, shares issued or liabilities incurred or assumed at
the date of exchange. Acquisition related costs are recognised
in profit or loss as incurred. Where equity instruments are issued
in an acquisition, the value of the instruments is their published
market price as at the date of acquisition unless, in rare
circumstances, it can be demonstrated that the published price
at the date of acquisition is an unreliable indicator of fair value
and that other evidence and valuation methods provide a more
reliable measure of fair value. Transaction costs arising on the
issue of equity instruments are recognised directly in equity.
Where the business combination is achieved in stages, the
Group remeasures its previously held equity interest in the
acquiree at the acquisition-date fair value and the difference
between the fair value and the previous carrying amount is
recognised in the profit or loss.
Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured
initially at their fair values at the acquisition date, irrespective
of the extent of any non-controlling interest. The excess of the
cost of acquisition over the fair value of the Group’s share of the
identifiable net assets acquired is recorded as goodwill (refer to
Note 20(b)(iv)). If the cost of acquisition is less than the fair value
of the net assets of the subsidiary acquired, the difference is
recognised directly in profit or loss but only after assessment of
the identification and measurement of the net assets acquired.
Where settlement of any part of cash consideration is deferred,
the amounts payable in the future are discounted to their
present values as at the date of acquisition. The discount rate
used is the Australian Government bond rate that matches the
future maturity period.
If the initial accounting for a business acquisition is incomplete
by the end of the reporting period in which the acquisition
occurs, the consolidated entity reports provisional amounts for
the items for which accounting is incomplete. The provisional
amounts are adjusted during the measurement period
(no longer than 12 months from the initial acquisition) on a
retrospective basis by restating the comparative information
presented in the consolidated financial statements.
(d) Critical accounting estimates and judgements
The fair value of assets and liabilities acquired in
business combinations
Acquisitions made by the Group have required some
judgements and estimates to be made. The Directors have
judged that no significant intangible assets have been acquired
in the business combinations other than goodwill. Additionally,
as part of the acquisition and negotiation process, judgements
have been made as to the fair value of vehicle and parts
inventory, warranties and other assets and liabilities acquired.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 36 Business divestments
(a) Business disposal and discontinued operations
The Group sold the following businesses during the 2021 year as detailed below:
Year
2021
2021
2021
2021
2021
2021
2021
Name of business
360 Finance
Daimler Truck Operations
Carlins Automotive Auctioneers (WA) Pty Ltd
Coffs Harbour Iveco and Hino
Doncaster Jaguar Land Rover
Skippers Transport Parts
Port City Autos
Date of sale
Principal activity
31 March 2021
Finance Company
30 April 2021
31 May 2021
18 June 2021
1 July 2021
Trucks Business
Automotive Business
Trucks Business
Automotive Business
13 August 2021
Parts Business
1 September 2021
Automotive Business
Net assets disposed of
Receivables, prepayments
Inventory
Property, plant and equipment
Goodwill
Intangible assets
Creditors, borrowings and provisions
Deferred tax asset
Net assets disposed
Total consideration received (100% cash)
Liabilities paid on our behalf
Total sale consideration
Legal fees
Gain on sale
119
Proportion
disposed
100%
100%
47%
100%
100%
100%
100%
Consolidated
2021
$’000
42,656
163,530
15,937
18,516
1,050
(166,565)
5,072
80,196
111,774
308
112,082
(8)
31,894
The Directors have considered these disposals during the twelve month period to December 2021 in the context of AASB 5 and they
have determined that the disclosure requirements of discontinued operations do not apply. This judgement has been made based on
all of the available facts and circumstances surrounding the sale and the impact of the related segments and remaining businesses.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 120
36 Business divestments (continued)
(b) Disposal of businesses in prior year
The Group sold the following businesses during the 2020 year as detailed below:
Year
2020
2020
2020
2020
2020
2020
2020
2020
2020
Name of business
Date of sale
Principal activity
Frankston Mitsubishi and Kia
16 March 2020
Motor Vehicle Dealership
Bunbury Trucks
Refrigerated Logistics
Stillwell Kia
Knox Mitsubishi
Caloundra City Autos
Zupps Beaudesert
Zupps Browns Plains
Browns Plains Mazda
15 May 2020
Motor Dealership
29 June 2020
Other Logistics
3 July 2020
8 July 2020
Motor Dealership
Motor Dealership
16 October 2020
Motor Vehicle Dealership
6 November 2020
Motor Vehicle Dealership
12 November 2020
Motor Vehicle Dealership
13 November 2020
Motor Vehicle Dealership
Net assets disposed of
Receivables, prepayments
Inventory
Property, plant and equipment
Intangible assets
Creditors, borrowings and provisions
Net assets disposed
Total consideration received (100% cash)
Gain on sale
Proportion
disposed
100%
100%
100%
100%
100%
100%
100%
100%
100%
Consolidated
2020
$’000
425
5,052
2,013
1,046
(6,206)
2,330
7,747
5,417
(c) Critical accounting estimates and judgements
Sale of Daimler Truck Operations and property
The Group completed the agreement for the sale of its Daimler Truck business to Velocity Vehicle Group (VVG) on 30 April 2021, as
announced on the Australian Securities Exchange on 14 December 2020. The Group also completed the sale of the Milperra property,
the location of the Stillwell Trucks operation, to VVG as part of the transaction.
The sale of the Daimler Truck business delivered cash proceeds of $104 million and a gain on sale of $30 million. The calculation of
the gain on sale requires judgement in determining the amount of goodwill to be allocated to the sale. Accordingly, the Directors have
applied a consistent approach to past divestments and allocated goodwill to the sale based on the past trading performance of the
disposed truck businesses.
The Directors have also considered AASB 5 and judgementally determined that the divestment did not meet the recognition criteria for a
discontinued operation. Therefore, the trading results for 2021 up to the date of disposal have been included within continuing operations.
In the prior year, with consideration to the requirements of AASB 5, the Directors determined that the definition of a disposal group
held-for-sale was not met at the reporting date for the Daimler Truck business. Therefore, the associated assets and liabilities were not
reclassified to non-current assets held-for-sale as at 31 December 2020.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 121
37 Discontinued operations
The loss from discontinued operations in the year ended 31 December 2020 relates to the divestment of Refrigerated Logistics which
occurred on 29 June 2020. This business was acquired as part of the acquisition of AHG in 2019 and was immediately classified as
an asset held for sale. The buyer, Anchorage Capital Partners, acquired the business on a debt-free basis, with the sale proceeds at
completion directed to the repayment of the finance leases and hire purchase liabilities associated with Refrigerated Logistics. The
loss from discontinued operations reported in the Consolidated Statement of Profit or Loss represents a combination of Refrigerated
Logistics trading losses for the period ended 31 December 2020 and the loss realised on divestment of the business.
The loss from discontinued operations in the current year ended 31 December 2021 relates to a provision recorded for a claim submitted
prior to the end of the financial year from Anchorage Capital Partners in relation to the Refrigerated Logistics Share Sale Agreement.
38 Contingent liabilities
(a) Parent entity
Unsecured guarantees, indemnities and undertakings have been given by the parent entity in the normal course of business in respect
of financial and trade arrangements entered into by its subsidiaries. It is not anticipated that the parent entity will become liable for
any amount in respect thereof. At 31 December 2021 no subsidiary was in default in respect of any arrangement guaranteed by the
parent entity and all amounts owed have been brought to account as liabilities in the consolidated financial statements.
(b) Deed of cross guarantee
Eagers Automotive Limited and all of its 100% owned subsidiaries were parties to a deed of cross guarantee lodged with ASIC as
at 31 December 2021. Under the deed of cross guarantee each company within the closed Group guarantees the debts of the other
companies. The maximum exposure of the parent entity in relation to the cross extended guarantees is $2,383,000,000 (2020:
$3,095,000,000).
39 Commitments for expenditure
(a) Capital commitments
Capital expenditure for land, buildings, plant and equipment contracted for at the end of the reporting period but not recognised as
liabilities is as follows:
Within one year
40 Remuneration of auditor
Deloitte and related network firms 3
Audit or review of financial reports:
Group
Subsidiaries
Statutory assurance services required by legislation to be provided by the auditor
Other services:
Tax consulting services
Regulatory compliance services
Total remuneration for other services
3
The auditor of Eagers Automotive Limited is Deloitte Touche Tohmatsu
Consolidated
2021
$’000
8,801
2020
$’000
2,263
Consolidated
2021
$’000
2020
$’000
1,083
237
1,320
103
485
95
580
2,003
1,106
209
1,315
-
162
1,146
1,308
2,623
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 122
41 Subsequent events
No matter or circumstance has occurred subsequent to year end that has significantly affected, or may significantly affect, the
operations of the Group, the results of those operations or the state of affairs of the Group or economic entity in subsequent
financial years.
42 Key management personnel
The remuneration report included in the Directors’ Report sets out the remuneration policies of the consolidated entity and the
relationship between these policies and the Group’s performance.
The following have been identified as key management personnel (KMP) with authority and responsibility for planning, directing and
controlling the activities of the Group, directly or indirectly during the financial year.
The specified Executives of Eagers Automotive Limited during the financial year were:
(a) Details of key management personnel
(i) Directors
T B Crommelin
Chairman (non-executive)
S A Moore
D A Cowper
N G Politis
D T Ryan
M J Birrell
G J Duncan
D S Blackhall
M V Prater
M A Ward
D G Stark
K T Thornton
Director and Chief Financial Officer
Director (non-executive)
Director (non-executive)
Director (non-executive)
Director (non-executive)
Director (non-executive)
Director (non-executive)
Director (non-executive)
Previously Managing Director and Chief Executive Officer,
resigned 24 February 2021
Company Secretary
Chief Executive Officer, appointed 24 February 2021.
Previously Chief Operating Officer - Cars
(ii) Executives
(b) Compensation of key management personnel
The aggregate compensation made to key management personnel of the Company and the Group is set out below.
Short term
Post employment benefits
Share-based payments
(c) Option holdings of key management personnel
Details of options held by key management personnel can be found in Note 42(f).
(d) Loans to key management personnel
There are no loans to key management personnel.
(e) Other transactions with key management personnel
Other transactions with key management personnel are detailed in Note 44.
Consolidated
2021
$’000
4,417
144
2,429
6,990
2020
$’000
4,168
122
408
4,698
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 123
42 Key management personnel (continued)
(f) Share-based payments
Plan C: EPS Performance Rights and Options – Key Executives 2014
The Group commenced an earnings per share (EPS) based performance rights and options compensation scheme for specific
executive officers in 2014. The fair value of these performance rights and options is calculated on grant date and recognised over the
period to vesting. The vesting of the performance rights and options granted is based on the achievement of specified earnings per
share growth targets and interest cover thresholds. The fair value has been calculated using a binomial option pricing model based on
numerous variables including the following:
Performance rights
Award date 4 July 2014
Vesting date
Expiry date
Share price at grant date
Expected life
Volatility
Risk free interest rate
Dividend yield
Performance options
Award date 4 July 2014
Vesting date
Expiry date
Share price at grant date
Exercise price
Expected life
Volatility
Risk free interest rate
Dividend yield
31-Mar-16
04-Jul-21
$ 5.47
31-Mar-17
04-Jul-21
$ 5.47
31-Mar-18
31-Mar-19
31-Mar-20
04-Jul-21
30-Sep-22
30-Sep-22
$ 5.47
$ 5.47
$ 5.47
1.7 years
2.7 years
3.7 years
4.7 years
5.7 years
25%
2.51%
4.2%
25%
2.63%
4.2%
25%
2.79%
4.2%
25%
2.96%
4.2%
25%
3.13%
4.2%
31-Mar-16
04-Jul-21
$ 5.47
$ 5.47
31-Mar-17
04-Jul-21
$ 5.47
$ 5.47
31-Mar-18
31-Mar-19
31-Mar-20
04-Jul-21
30-Sep-22
30-Sep-22
$ 5.47
$ 5.47
$ 5.47
$ 5.47
$ 5.47
$ 5.47
4.4 years
4.9 years
5.4 years
5.9 years
7.0 years
25%
2.90%
4.2%
25%
2.98%
4.2%
25%
3.06%
4.2%
25%
3.24%
4.2%
25%
3.31%
4.2%
The Managing Director, General Manager Queensland and Northern Territory, previous Chief Financial Officer, General Counsel and
Company Secretary and four other senior executives have been granted rights and options under the EPS share incentive plan (Plan
C). The modified grant date method (AASB 2) is applied to this incentive plan whereby the cost of the plan is determined by the value
of the rights and options at grant date and the probability of the EPS and interest cover targets being achieved and vesting occurring.
The number of performance rights and options granted under the plan is as follows:
Performance rights
Number
137,791
137,571
143,464
149,551
156,173
Performance options
Number
769,228
712,760
705,258
663,363
656,857
Grant date
End performance period
Expiry date
Fair value at grant date
04-Jul-14
04-Jul-14
04-Jul-14
04-Jul-14
04-Jul-14
31-Dec-15
31-Dec-16
31-Dec-17
31-Dec-18
31-Dec-19
04-Jul-21
04-Jul-21
04-Jul-21
30-Sep-22
30-Sep-22
$ 5.08
$ 4.87
$ 4.67
$ 4.48
$ 4.29
Grant date
End performance period
Expiry date
Fair value at grant date
04-Jul-14
04-Jul-14
04-Jul-14
04-Jul-14
04-Jul-14
31-Dec-15
31-Dec-16
31-Dec-17
31-Dec-18
31-Dec-19
04-Jul-21
04-Jul-21
04-Jul-21
30-Sep-22
30-Sep-22
$ 0.91
$ 0.94
$ 0.95
$ 1.01
$ 1.02
No performance rights or options were forfeited or expired during the year. Nil rights were issued and 3,061,498 options exercised during
the year.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 124
42 Key management personnel (continued)
(f) Share-based payments (continued)
Plan C: EPS Performance Rights and Options – Key Executives 2014 (continued)
No costs of the share plan were expensed during 2021 (2020: nil). The share plan was fully expensed by the end of 2019, with a
cumulative expense being recognised of $6,557,247.
Plan J: EPS Performance Rights and Options - Key Executive
The Group commenced a new EPS based performance rights and options compensation scheme for two specific executive officers in
2015. The fair value of these performance rights and options is calculated on grant date and recognised over the period to vesting. The
vesting of the performance rights and options granted is based on the achievement of specified earnings per share growth targets
and interest cover thresholds. The fair value has been calculated using a binomial option pricing model based on numerous variables
including the following:
Performance rights
Award date 12 June 2015
Vesting date
Expiry date
Share price at grant date
Expected life
Volatility
Risk free interest rate
Dividend yield
Performance options
Award date 12 June 2015
Vesting date
Expiry date
Share price at grant date
Exercise price
Expected life
Volatility
Risk free interest rate
Dividend yield
31-Mar-16
31-Mar-17
31-Mar-18
31-Mar-19
31-Mar-20
12-Jun-22
12-Jun-22
12-Jun-22
30-Sep-22
30-Sep-22
$9.25
$9.25
$9.25
$9.25
$9.25
0.8 years
1.8 years
2.8 years
3.8 years
4.8 years
24%
1.98%
3.7%
24%
1.99%
3.7%
24%
2.06%
3.7%
24%
2.18%
3.7%
24%
2.33%
3.7%
31-Mar-16
31-Mar-17
31-Mar-18
31-Mar-19
31-Mar-20
12-Jun-22
12-Jun-22
12-Jun-22
30-Sep-22
30-Sep-22
$9.25
$9.25
$9.25
$9.25
$9.25
$9.25
$9.25
$9.25
$9.25
$9.25
3.9 years
4.4 years
4.9 years
5.5 years
6.1 years
24%
2.19%
3.7%
24%
2.27%
3.7%
24%
2.35%
3.7%
24%
2.46%
3.7%
24%
2.54%
3.7%
Two specific executives have been granted performance rights and options under the EPS share incentive plan (Plan J). The modified
grant date method (AASB 2) is applied to this incentive plan whereby the cost of the plan is determined by the value of the rights and
options at grant date and the probability of the EPS targets being achieved and vesting occurring. The number of rights and options
granted under the plan is as follows:
Performance rights
Number
Grant date
End performance period
Expiry date
Fair value at grant date
2,783
5,780
5,995
6,218
6,458
Performance options
12-Jun-15
12-Jun-15
12-Jun-15
12-Jun-15
12-Jun-15
31-Dec-15
31-Dec-16
31-Dec-17
31-Dec-18
31-Dec-19
12-Jun-22
12-Jun-22
12-Jun-22
30-Sep-22
30-Sep-22
$8.98
$8.65
$8.34
$8.04
$7.74
Number
Grant date
End performance period
Expiry date
Fair value at grant date
17,605
33,783
32,678
31,645
31,250
12-Jun-15
12-Jun-15
12-Jun-15
12-Jun-15
12-Jun-15
31-Dec-15
31-Dec-16
31-Dec-17
31-Dec-18
31-Dec-19
12-Jun-22
12-Jun-22
12-Jun-22
30-Sep-22
30-Sep-22
$1.42
$1.48
$1.53
$1.58
$1.60
No performance rights or options were forfeited or expired during the year. No rights were issued, and no options were exercised during
the year.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 125
42 Key management personnel (continued)
(f) Share-based payments (continued)
Plan J: EPS Performance Rights and Options - Key Executive (continued)
No costs of the share plan were expensed during 2021 (2020: nil). The share plan was fully expensed by the end of 2019, with a
cumulative expense being recognised of $449,959.
Plan L: Executive incentive plan - Grant of performance rights - Key Executive
The Group commenced a new performance rights compensation scheme for a specific executive officer in 2020. The fair value of these
performance rights is calculated on grant date and recognised over the period to vesting. The performance rights are automatically
exercised and converted to vested restricted shares on the conversion date, being the date that is one week after release of the
Company’s full-year financial results. The vesting of the performance rights granted is based on continued employment at the relevant
vesting dates. The fair value was estimated by taking the market price of the Company’s shares on the grant date less the present
value of expected dividends that will not be received during the period.
Performance rights
Award date 17 February 2020
Vesting date
Share price at grant date
Expected life
Risk free interest rate
Dividend yield
31-Dec-19
31-Dec-20
31-Dec-21
$9.00
$9.00
$9.00
0.0 years
0.87 years
1.87 years
0.81%
4.056%
0.81%
4.056%
0.75%
4.056%
The number of performance rights granted under the plan is as follows:
Performance rights
Number
30,000
35,000
35,000
Grant date
17-Feb-20
17-Feb-20
17-Feb-20
End performance period
Fair value at grant date
31-Dec-19
31-Dec-20
31-Dec-21
$9.00
$9.00
$9.00
No performance rights were forfeited or expired during the year. A total of 35,000 rights were issued during the year in respect of the
2020 performance year.
The value of the performance rights expensed during the year was $133,548, with a cumulative expense being recognised at
31 December 2021 of $846,531 (2020: $712,983).
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 126
42 Key management personnel (continued)
(f) Share-based payments (continued)
Plan M: EPS Performance Rights and Options – Key Executives
The Group commenced a new EPS based performance rights and option compensation scheme for specific executive officers in 2021.
The fair value of these performance rights and options is calculated on grant date and recognised over the period to vesting. The
vesting of the performance rights and options granted is based on the achievement of specified earnings per share growth targets
and interest cover thresholds. The fair value has been calculated using a binomial option pricing model based on numerous variables
including the following:
Performance rights
Award date 24 February 2021
Vesting date
Expiry date
Share price at grant date
Expected life
Volatility
Risk free interest rate
Dividend yield
Performance options
Award date 24 February 2021
Vesting date
Expiry date
Share price at grant date
Exercise price
Expected life
Volatility
Risk free interest rate
Dividend yield
28-Feb-22
28-Feb-23
28-Feb-24
28-Feb-25
28-Feb-22
28-Feb-23
28-Feb-24
28-Feb-25
$ 12.32
$ 12.32
$ 12.32
$ 12.32
1.0 years
2.0 years
3.0 years
4.0 years
38%
0.06%
3.5%
38%
0.08%
3.5%
38%
0.21%
3.5%
38%
0.42%
3.5%
28-Feb-25
30-Apr-25
$ 12.32
$ 12.32
4.1 years
38%
0.44%
3.5%
Specific executives have been granted performance rights and options under the EPS share incentive plan (Plan M). The modified grant
date method (AASB 2) is applied to this incentive plan whereby the cost of the plan is determined by the value of the rights and options
at grant date and the probability of the EPS targets being achieved and vesting occurring. The number of rights and options granted
under the plan is as follows:
Performance rights
Number
54,668
74,042
76,646
79,365
Performance options
Number
2,173,910
Grant date
End performance period
Expiry date
Fair value at grant date
24-Feb-21
24-Feb-21
24-Feb-21
24-Feb-21
Grant date
24-Feb-21
31-Dec-21
31-Dec-22
31-Dec-23
31-Dec-24
28-Feb-22
28-Feb-23
28-Feb-24
28-Feb-25
$ 11.89
$ 11.48
$ 11.09
$ 10.71
End performance period
Expiry date
Fair value at grant date
31-Dec-24
30-Apr-25
$ 2.76
No performance rights or options were forfeited or expired during the year. No rights were issued during the year, and no options
were exercised.
The value of the performance rights expensed during the year was $1,570,838, with a cumulative expense being recognised at
31 December 2021 of $1,570,838 (2020: nil). The value of the performance options expensed during the year was $1,499,998, with a
cumulative expense being recognised at 31 December 2021 of $1,499,998 (2020: nil).
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 127
43 Share-based payments
Recognised share-based payments expenses
Refer Note 32(a) for movements in share-based payments reserve.
Plan F: EPS Performance Options – Senior Management 2013
The Group commenced an EPS based share options compensation scheme for 57 specific senior staff, including the Company
Secretary/General Counsel. The fair value of these performance options is calculated on grant date and recognised over the period to
vesting. The vesting of the performance options granted is based on the achievement of specified earnings per share growth targets.
The fair value has been calculated using a binomial option pricing model based on numerous variables including the following:
Performance options
Award date 27 March 2013
Vesting date
Expiry date
Share price at grant date
Exercise price
Expected life
Volatility
Risk free interest rate
Dividend yield
31-Mar-15
31-Mar-16
31-Mar-17
31-Mar-18
31-Mar-19
31-Mar-20
31-Mar-20
31-Mar-20
31-Mar-20
31-Mar-20
$ 4.84
$ 5.04
$ 4.84
$ 5.04
$ 4.84
$ 5.04
$ 4.84
$ 5.04
$ 4.84
$ 5.04
4.5 years
4.5 years
5.0 years
5.5 years
6.0 years
30%
3.08%
4.20%
30%
3.08%
4.20%
30%
3.13%
4.20%
30%
3.17%
4.20%
30%
3.22%
4.20%
Specific executives have been granted options under the EPS share incentive plan (Plan F). The modified grant date method (AASB 2) is
applied to this incentive plan whereby the cost of the plan is determined by the value of the options at grant date and the probability
of the EPS targets being achieved and vesting occurring. The number of options granted under the plan is as follows:
Performance options
Number
951,950
951,950
911,510
892,840
883,750
Grant date
End performance period
Expiry date
Fair value at grant date
27-Mar-13
27-Mar-13
27-Mar-13
27-Mar-13
27-Mar-13
31-Dec-14
31-Dec-15
31-Dec-16
31-Dec-17
31-Dec-18
31-Mar-20
31-Mar-20
31-Mar-20
31-Mar-20
31-Mar-20
$ 0.93
$ 0.93
$ 0.96
$ 0.98
$ 0.99
No options were forfeited or expired during the year. No options were exercised during the year.
No costs of the share plan were expensed during 2021 (2020: nil). The share plan was fully expensed by the end of 2017 with a
cumulative expense recognised of $3,607,822.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 128
43 Share-based payments (continued)
Plan H: EPS Performance Rights and Options – Key Executives
The Group commenced a new EPS based performance rights and options compensation scheme for four specific executive officers in
2015. The fair value of these performance rights and options is calculated on grant date and recognised over the period to vesting. The
fair value has been calculated using a binomial option pricing model based on numerous variables including the following:
Performance rights
Award date 21 January 2015
Vesting date
Expiry date
Share price at grant date
Expected life
Volatility
Risk free interest rate
Dividend yield
Performance options
Award date 21 January 2015
Vesting date
Expiry date
Share price at grant date
Exercise price
Expected life
Volatility
Risk free interest rate
Dividend yield
31-Mar-16
31-Mar-17
31-Mar-18
31-Mar-19
31-Mar-20
21-Jan-22
21-Jan-22
21-Jan-22
30-Sep-22
30-Sep-22
$5.85
$5.85
$5.85
$5.85
$5.85
1.2 years
2.2 years
3.2 years
4.2 years
5.2 years
22%
2.20%
4.4%
22%
2.12%
4.4%
22%
2.11%
4.4%
22%
2.15%
4.4%
22%
2.22%
4.4%
31-Mar-16
31-Mar-17
31-Mar-18
31-Mar-19
31-Mar-20
21-Jan-22
21-Jan-22
21-Jan-22
30-Sep-22
30-Sep-22
$5.85
$5.65
$5.85
$5.65
$5.85
$5.65
$5.85
$5.65
$5.85
$5.65
4.1 years
4.6 years
5.1 years
5.9 years
6.4 years
22%
2.15%
4.4%
22%
2.18%
4.4%
22%
2.21%
4.4%
22%
2.28%
4.4%
22%
2.33%
4.4%
Four specific executives have been granted rights and options under the EPS share incentive plan (Plan H). The modified grant date
method (AASB 2) is applied to this incentive plan whereby the cost of the plan is determined by the value of the rights and options at
grant date and the probability of the EPS targets being achieved and vesting occurring. The number of rights and options granted
under the plan is as follows:
Performance rights
Number
Grant date
End performance period
Expiry date
Fair value at grant date
14,412
15,065
15,746
16,459
17,202
Performance options
21-Jan-15
21-Jan-15
21-Jan-15
21-Jan-15
21-Jan-15
31-Dec-15
31-Dec-16
31-Dec-17
31-Dec-18
31-Dec-19
21-Jan-22
21-Jan-22
21-Jan-22
30-Sep-22
30-Sep-22
$5.55
$5.31
$5.08
$4.86
$4.65
Number
Grant date
End performance period
Expiry date
Fair value at grant date
95,235
93,020
93,020
91,953
93,020
21-Jan-15
21-Jan-15
21-Jan-15
21-Jan-15
21-Jan-15
31-Dec-15
31-Dec-16
31-Dec-17
31-Dec-18
31-Dec-19
21-Jan-22
21-Jan-22
21-Jan-22
30-Sep-22
30-Sep-22
$0.84
$0.86
$0.86
$0.87
$0.86
No performance rights or options were forfeited or expired during the year. No rights were issued during the year. A total of 407,969
options were exercised during the year.
No costs of the share plan were expensed during 2021 (2020: nil). The share plan was fully expensed by the end of 2019, with a
cumulative expense being recognised of $749,281.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 129
43 Share-based payments (continued)
Plan K: EPS Performance Rights and Options – Key Executives
The Group commenced a new EPS based performance rights and options compensation scheme for one specific executive officer in
2016. The fair value of these performance rights and options is calculated on grant date and recognised over the period to vesting. The
vesting of the performance rights and options granted is based on the achievement of specified earnings per share growth targets
and interest cover thresholds. The fair value has been calculated using a binomial option pricing model based on numerous variables
including the following:
Performance rights
Award date 31 March 2016
Vesting date
Expiry date
Share price at grant date
Expected life
Volatility
Risk free interest rate
Dividend yield
Performance options
Award date 31 March 2016
Vesting date
Expiry date
Share price at grant date
Exercise price
Expected life
Volatility
Risk free interest rate
Dividend yield
31-Mar-17
31-Mar-18
31-Mar-19
31-Mar-20
31-Mar-24
31-Mar-24
31-Mar-24
31-Mar-24
$9.75
$9.75
$9.75
$9.75
1.0 year
2.0 years
3.0 years
4.0 years
27%
1.95%
3.8%
27%
1.88%
3.8%
27%
1.90%
3.8%
27%
1.98%
3.8%
31-Mar-17
31-Mar-18
31-Mar-19
31-Mar-20
31-Mar-24
31-Mar-24
31-Mar-24
31-Mar-24
$9.75
$10.34
$9.75
$10.34
$9.75
$10.34
$9.75
$10.34
4.5 years
5.0 years
5.5 years
6.0 years
27%
2.03%
3.8%
27%
2.08%
3.8%
27%
2.13%
3.8%
27%
2.18%
3.8%
One specific executive has been granted rights and options under the EPS share incentive plan (Plan K). The modified grant date
method (AASB 2) is applied to this incentive plan whereby the cost of the plan is determined by the value of the rights and options at
grant date and the probability of the EPS targets being achieved and vesting occurring. The number of rights and options granted
under the plan is as follows:
Performance rights
Number
Grant date
End performance period
Expiry date
Fair value at grant date
7,987
8,296
8,620
8,960
31-Mar-16
31-Mar-16
31-Mar-16
31-Mar-16
31-Dec-16
31-Dec-17
31-Dec-18
31-Dec-19
31-Mar-24
31-Mar-24
31-Mar-24
31-Mar-24
$9.39
$9.04
$8.70
$8.37
Performance options
Number
48,076
46,012
44,910
43,859
Grant date
End performance period
Expiry date
Fair value at grant date
31-Mar-16
31-Mar-16
31-Mar-16
31-Mar-16
31-Dec-16
31-Dec-17
31-Dec-18
31-Dec-19
31-Mar-24
31-Mar-24
31-Mar-24
31-Mar-24
$1.56
$1.63
$1.67
$1.71
No performance rights or options were forfeited or expired during the year. No rights were issued during the year.
No costs of the share plan were expensed during 2021 (2020: nil). The share plan was fully expensed by the end of 2019, with a
cumulative expense being recognised of $599,980.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 130
44 Related parties
Key management personnel
Other information on key management personnel has been disclosed in the Directors’ Report.
Remuneration and retirement benefits
Information on the remuneration of key individual management personnel has been disclosed in the Remuneration Report included in
the Directors’ Report.
Other transactions of Directors and Director-related entities
The aggregate amount of “Other transactions” with key management personnel are as follows:
(i) Mr N G Politis is a Director and shareholder of a number of companies involved in the motor industry with whom the consolidated
entity transacts business. These transactions, sales of $352,415 (2020: $465,669) and purchases of $710,876 (2020: $976,540)
during the last 12 months, are primarily the sale and purchase of spare parts and accessories and are carried out under terms
and conditions no more favourable than those which it is reasonable to expect would have applied if the transactions were at
arm’s length.
(ii) Mr M Birrell is a Director and owner of a number of properties leased by subsidiaries of Eagers Automotive Limited. The lease
transactions of $2,076,941 (2020: $1,870,034) have been carried out under terms and conditions no more favourable than those which
it is reasonable to expect would have applied if the transactions were at arm’s length. In respect of those properties, the Group paid
and was subsequently reimbursed for repairs and maintenance totalling nil (2020: $175,585) for which Mr M Birrell’s related party was
liable. During the period $105,775 (2020: nil) was received in relation to short term sublease arrangements.
Furthermore, during the twelve months ended 31 December 2021, Mr M Birrell purchased stock with a value of $5,986 (2020: $251,746)
from one of the subsidiaries. This transaction was carried out under terms and conditions no more favourable than those which it is
reasonable to expect would have applied if the transactions were at arm’s length.
Mr M Birrell is a Director and owner of a company involved in the provision of finance to the motor vehicle industry with whom the
consolidated entity transacts business. These transactions, totalling $170,753 (2020: $204,241), are commissions paid to the Group and
are carried out under terms and conditions no more favourable than those which it is reasonable to expect would have applied if the
transactions were at arm’s length.
(iii) Controlled entities may, from time to time, sell motor vehicles, parts and servicing of motor vehicles for domestic use to Directors
of entities in the Group or their Director-related entities within a normal employee relationship on terms and conditions no more
favourable than those which it is reasonable to expect would have been adopted if dealing with the Directors or their Director-related
entities at arm’s length in the same circumstances.
Wholly-owned Group
The parent entity of the wholly-owned Group is Eagers Automotive Limited. Information relating to the wholly-owned Group is set out in
Note 34.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 45 Earnings per share
(a) Basic earnings per share
Attributable to the ordinary equity holders of the Company
From continuing operations
From discontinued operation
(b) Diluted earnings per share
Attributable to the ordinary equity holders of the Company
From continuing operations
From discontinued operation
(c) Reconciliation of earnings used in calculating earnings per share
Basic earnings per share
Profit attributable to the ordinary equity holders of the Company used in calculating
basic and diluted earnings per share:
Profit for the year
Less: attributable to non-controlling interest
Profit attributable to the ordinary equity holders of the Company used in calculating
basic earnings per share
131
Consolidated
2021
Cents
125.2
128.4
(3.2)
124.7
127.9
(3.2)
2020
Cents
57.6
71.4
(13.8)
57.3
71.0
(13.7)
Consolidated
2021
$’000
2020
$’000
330,737
(12,913)
156,212
(8,921)
317,824
147,291
Diluted earnings per share
Profit for the year attributable to the owners of Eagers Automotive Limited
317,824
147,291
Profit attributable to the ordinary equity holders of the Company used in calculating
diluted earnings per share
Weighted average number of ordinary shares outstanding during the year
Shares deemed to be issued for no consideration in respect of employee options
Weighted average number of ordinary shares outstanding during the year used in the
calculation of diluted earnings per share
317,824
147,291
2021
Number
2020
Number
253,801,325
255,840,110
1,105,408
1,315,694
254,906,733
257,155,804
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 132
45 Earnings per share (continued)
(d) Recognition and measurement
Earnings per share
Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude any costs of servicing
equity (other than dividends), divided by the weighted average number of ordinary shares, adjusted for any bonus element.
(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
• the profit attributable to owners of the Company, excluding any costs of servicing equity other than ordinary shares; and
• by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary
shares issued during the year and excluding treasury shares.
(ii) Diluted earnings per share
Diluted earnings per share is calculated as net profit attributable to members of the parent, adjusted for:
• costs of servicing equity (other than dividends);
• the after-tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as
expenses; and
• other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential
ordinary shares, divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for
any bonus element.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 133
46 Reconciliation of net profit after tax to the net cash inflows from operations
Net profit after tax
Depreciation and amortisation
Revaluation decrement of non-current assets
Share of profits of associate
(Gain) on disposal of non-financial assets
(Gain) on sale of property, plant & equipment
Employee share scheme expense
Rent waivers
(Gain) on sale of business
(Increase)/decrease in assets -
Receivables
Inventories
Prepayments
Contract assets
Non-current receivables
(Decrease) in liabilities -
Creditors (including bailment finance)
Provisions
Deferred revenue
Taxes payable
Net cash inflow from operating activities
Notes
6(a)
6(b)
5
5
5
5
Consolidated
2021
$’000
330,737
120,428
5,156
(1,130)
(15,168)
(10,957)
3,204
-
(31,894)
39,903
151,732
13,111
39,594
(8,950)
2020
$’000
156,211
166,257
90,700
(3,758)
(860)
(1,395)
408
(9,477)
(5,417)
40,660
433,146
(8,678)
31,905
-
(260,245)
(347,084)
(42,041)
(14,968)
(15,807)
(5,888)
-
(8,843)
302,705
527,887
47 Changes in liabilities arising from financing activities
The below table represents the cash and non-cash movements in financing activities for 2021:
1 January
2021
$’000
Financing
cash flows
$’000
Termination
of leases
$’000
137,500
(137,500)
200,855
1,270,919
(13,022)
(121,194)
-
-
(104,053)
Term facility
Capital loan
Lease liabilities
Total
1,609,274
(271,716)
(104,053)
Fair value
adjustments/
rent reviews
$’000
Property
acquisitions
$’000
New
leases
$’000
Other
changes 4
$’000
31 December
2021
$’000
-
-
5,674
5,674
-
138,196
-
138,196
-
-
78,050
78,050
-
-
(3,251)
(3,251)
-
326,029
1,126,145
1,452,174
The below table represents the cash and non-cash movements in financing activities for 2020:
1 January
2020
$’000
Financing
cash flows
$’000
Termination
of leases
$’000
Fair value
adjustments/
rent reviews
$’000
Property
acquisitions
$’000
New
leases
$’000
Other
changes (1)
$’000
31 December
2020
$’000
Term facility
Capital loan
332,313
(194,625)
77,778
18,840
Lease liabilities
1,192,557
(160,222)
Total
1,602,648
(336,007)
-
-
(84,366)
(84,366)
-
-
48,823
48,823
-
104,237
-
104,237
-
-
220,422
220,422
(188)
-
53,705
53,517
137,500
200,855
1,270,919
1,609,274
4 Other changes includes interest charged and foreign currency translation in relation to financing activities.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 134
48 Investments in associates
(a) Carrying amounts
Investments in associates are accounted for in the consolidated financial statements using the equity method of accounting.
Information relating to the associates is set out below:
Name of company
Unlisted securities
Vehicle Parts (WA) Pty Ltd
Mazda Parts
Ownership interest
Consolidated
2021
%
50.00
16.67
2020
%
50.00
16.67
2021
$’000
2020
$’000
1,555
519
2,074
1,233
328
1,561
Vehicle Parts (WA) Pty Ltd
Vehicle Parts (WA) Pty Ltd provides warehousing and distribution of automotive parts and accessories for Subaru in Western Australia.
Mazda Parts
Mazda Parts provides warehousing and distribution of automotive parts and accessories for Mazda in Western Australia.
(b) Movement in the carrying amounts of investments in associates
Carrying amount at the beginning of the financial year
Equity share of profit from ordinary activities after income tax
Dividends received during the year
Disposal of Investment
Carrying amount at the end of the financial year
(c) Share of associate profit
Consolidated
2021
$’000
1,561
1,130
(617)
-
2,074
2020
$’000
16,806
3,758
(4,629)
(14,374)
1,561
Based on the last published results for the 12 months to 30 June 2021 plus unaudited results up to 31 December 2021.
Profit from ordinary activities after income tax
1,130
3,758
(d) Reporting date of associates
The associates’ reporting dates are 30 June annually.
EAGERS AUTOMOTIVE — Financial Report 2021Notes to and Forming Part of the Consolidated Financial Statements continued31 December 2021 135
Directors’ Declaration
The Directors declare that:
(a) in the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable;
(b) in the Directors’ opinion, the consolidated financial statements and notes set out on pages 58 to 134 are in accordance with
the Corporations Act 2001, including:
(i) complying with Accounting Standards and the Corporations Regulations 2001, and
(ii) giving a true and fair view of the financial position and performance of the Company and the consolidated entity;
(c) in the Director’s opinion, the financial statements and notes are in accordance with International Financial Reporting Standards
as stated in Note 1(a);
(d) the Directors have been given the declarations required by s.295A of the Corporations Act 2001
At the date of this declaration, the Company is within the class of companies affected by ASIC Corporations (Wholly owned
Companies) Instrument 2016/785. The nature of the deed of cross guarantee referred to in the ASIC Corporation Instrument is such
that each company which is party to the deed guarantees to each creditor payment in full of any debt in accordance with the deed
of cross guarantee.
In the Directors’ opinion, there are reasonable grounds to believe that the Company and its subsidiaries to which the ASIC
Corporation Instrument applies, as detailed in Note 34 to the consolidated financial statements will, as a group, be able to meet any
obligations or liabilities to which they are, or may become, subject by virtue of the deed of cross guarantee.
Signed in accordance with a resolution of the Directors made pursuant to s.295(5) of the Corporations Act 2001.
On behalf of the Directors
Tim Crommelin
Director
Brisbane, 24 February 2022
EAGERS AUTOMOTIVE — Financial Report 2021 136
Independent Auditor’s Report
EAGERS AUTOMOTIVE — Financial Report 2021 137
EAGERS AUTOMOTIVE — Financial Report 2021Independent Auditor’s Report continued 138
EAGERS AUTOMOTIVE — Financial Report 2021Independent Auditor’s Report continued 139
EAGERS AUTOMOTIVE — Financial Report 2021Independent Auditor’s Report continued 140
EAGERS AUTOMOTIVE — Financial Report 2021Independent Auditor’s Report continued SHAREHOLDER INFORMATION
141
Shareholder Information
As at 10 March 2022
Equity Securities
The company’s quoted securities consist of 256,933,106 ordinary fully paid shares (ASX:APE).
Top 20 Holders of Ordinary Shares
WFM MOTORS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
JOVE PTY LTD
NATIONAL NOMINEES LIMITED
MILTON CORPORATION LIMITED
ARGO INVESTMENTS LIMITED
MUTUAL TRUST PTY LTD
ALAN PIPER INVESTMENTS (NO1) PTY LTD
FOUR LEAF FAMILY PTY LTD
BNP PARIBAS NOMINEES PTY LTD
CPU SHARE PLANS PTY LIMITED
BERNE NO 132 NOMINEES PTY LTD
BIRRELL INVESTMENTS PTY LTD
D COLMAN
BNP PARIBAS NOMS PTY LTD
PULO RD PTY LTD
LG MCGRATH INVESTMENTS PTY LTD
HEGFORD PTY LTD
No. of shares
% of issued shares
69,873,037
30,160,020
16,274,853
14,419,795
12,396,588
8,188,052
6,795,986
6,083,588
5,358,239
4,936,250
3,288,587
3,012,451
2,602,154
2,444,101
2,000,000
1,881,710
1,843,558
1,746,935
1,428,632
1,371,652
27.20
11.74
6.33
5.61
4.82
3.19
2.65
2.37
2.09
1.92
1.28
1.17
1.01
0.95
0.78
0.73
0.72
0.68
0.56
0.53
EAGERS AUTOMOTIVE — Financial Report 2021 142
Shareholder Information continued
As at 10 March 2022
Distribution of Shareholders
Range
1
1,001
5,001
10,001
100,001 and over
-
-
-
-
1,000
5,000
10,000
100,000
505 shareholders hold less than a marketable parcel of 40 shares at $12.75 per share.
Substantial Shareholders1
WFM Motors Pty Ltd
Vernon Charles Wheatley/Jove Pty Ltd
1
As disclosed in substantial holding notices received by the Company
Performance Rights and Options
No. of shareholders
5,438
3,789
803
803
109
10,942
Notice date
No. of shares1
23 September 2019
17 November 2019
69,536,516
15,356,763
230,053 performance rights, 2,173,910 unvested options and 329,818 vested options are on issue to 15 holders pursuant to the
Company’s equity incentive plans. Vesting is subject to achievement or waiver of pre-determined performance hurdles. Performance
rights and options do not have any dividend or voting rights.
Employee Incentive Scheme
3,887,280 shares were purchased on-market during the reporting period for the purposes of our employee incentive scheme at an
average price of $13.54 per share.
On-market Buy-back
The company does not have a current on-market share buy-back.
Voting Rights
The following voting rights attach to ordinary shares, subject to the company’s constitution:
• A shareholder entitled to attend and vote at a meeting may do so in person or by proxy, attorney or corporate representative.
• On a show of hands, each shareholder entitled to vote has one vote.
• On a poll, each shareholder entitled to vote has one vote for each fully paid share and a fraction for each partly paid share.
• If a share is held jointly with two or more holders in attendance, only the holder whose name appears first in the register may vote.
Corporate Governance Statement
The company’s Corporate Governance Statement is located on the company’s website at https://www.eagersautomotive.com.au/
shareholders/corporate-governance/.
EAGERS AUTOMOTIVE — Financial Report 2021 Corporate Directory
Eagers Automotive Limited
Board of Directors
ABN 87 009 680 013
Tim Crommelin, Chairman, Non-executive Director
143
Nick Politis, Non-executive Director
Dan Ryan, Non-executive Director
David Cowper, Non-executive Director
Marcus Birrell, Non-executive Director
Sophie Moore, Executive Director & Chief Financial Officer
Greg Duncan, Non-executive Director
David Blackhall, Non-executive Director
Michelle Prater, Non-executive Director
Chief Executive Officer
Keith Thornton
Company Secretary
Denis Stark
Incorporation
Incorporated in Queensland on 17 April 1957
Registered Office
5 Edmund Street
Newstead Qld 4006
Postal Address
PO Box 199
Fortitude Valley Qld 4006
Telephone
(07) 3608 7100
Facsimile
(07) 3608 7111
Website
www.eagersautomotive.com.au
Auditor
Deloitte Touché Tohmatsu
Riverside Centre
123 Eagle Street
Brisbane Qld 4001
Share Registry
Computershare Investor Services Pty Limited
Level 1
200 Mary Street
Brisbane Qld 4000
Enquiries within Australia:
Enquiries outside Australia: +61 3 9415 4000
1300 552 270
EAGERS AUTOMOTIVE — Financial Report 2021 144
Controlled Entities
As at 10 March 2022
Entity
ACN
Entity
A.C.N. 132 712 111 PTY LTD
132 712 111
AHG SERVICES (QLD) PTY LTD
A.P. FORD PTY. LTD.
010 602 383
AHG SERVICES (VIC) PTY LTD
A.P. GROUP PTY LTD
010 030 994
AHG SERVICES (WA) PTY LTD
A.P. MOTORS (NO 1) PTY. LTD.
010 585 234
AHG TRADE PARTS PTY LTD
A.P. MOTORS (NO 2) PTY. LTD.
010 585 243
AHG TRAINING PTY LTD
A.P. MOTORS (NO.3) PTY. LTD.
010 585 252
AHG WA (2015) Pty Ltd
A.P. MOTORS PTY. LTD.
010 579 996
AHGCL 2016 Pty Ltd
ACM AUTOS HOLDINGS PTY LTD
621 081 552
AHGSW 2018 Pty Ltd
ACM AUTOS PTY LTD
121 604 082
AP TOWNSVILLE PTY LTD
ACM LIVERPOOL PTY LTD
121 604 055
APE CARS MGMT PTY LTD
ACN
132 055 737
145 856 328
132 055 700
609 816 257
159 538 226
603 598 750
615 618 678
626 195 668
600 279 927
632 136 906
ADTRANS AUSTRALIA PTY. LTD.
008 278 171
ASSOCIATED FINANCE PTY. LIMITED
009 677 678
ADTRANS AUTOMOTIVE GROUP PTY LTD
007 866 917
AUCKLAND AUTO COLLECTION LIMITED
939375
ADTRANS CORPORATE PTY LTD
056 340 928
AUSTRAL PTY LTD
ADTRANS GROUP PTY LTD
008 129 477
AUT 6. PTY LTD
ADTRANS HINO PTY LTD
127 369 260
AUTO AD PTY LTD
ADTRANS TRUCK CENTRE PTY LTD
106 764 327
AUTOMOTIVE HOLDINGS GROUP (QUEENSLAND)
PTY LTD
009 662 202
008 985 886
605 815 021
127 499 683
ADTRANS TRUCKS PTY. LTD.
ADTRANS USED PTY. LTD.
ADVERPRO PTY LTD
AHG 1 PTY LTD
008 264 935
074 561 514
AUTOMOTIVE HOLDINGS GROUP (VICTORIA) PTY LTD
158 935 249
AUTOMOTIVE HOLDINGS GROUP PTY LTD
111 470 038
612 630 618
BASW PTY LTD
116 779 198
BIG ROCK 2005 PTY LTD
601 452 199
112 854 403
008 968 867
AHG AUTOMOTIVE MINING AND INDUSTRIAL
SOLUTIONS PTY LTD
162 034 111
BIG ROCK PTY LTD
AHG COATINGS PTY LTD
609 750 558
BILL BUCKLE AUTOS PTY LTD
000 388 054
AHG FINANCE 2005 PTY LTD
112 854 387
BILL BUCKLE HOLDINGS PTY LIMITED
062 951 106
AHG FINANCE PTY LTD
064 015 676
BILL BUCKLE LEASING PTY LIMITED
000 871 910
AHG FRANCHISED AUTOMOTIVE PTY LTD
128 362 185
BLACK AUTO CQ PTY LTD
135 015 191
AHG INTERNATIONAL PTY LTD
147 802 211
BOONARGA WELDING PTY LTD
099 480 903
AHG MANAGEMENT COMPANY PTY LTD
147 802 337
BRADSTREET MOTORS HOLDINGS PTY LTD
602 181 386
AHG NEWCASTLE PTY LTD
600 832 755
BRADSTREET MOTORS PTY LIMITED
061 172 183
AHG PROPERTY PTY LTD
131 182 968
CARDIFF CAR CITY HOLDINGS PTY LTD
602 181 751
AHG SERVICES (NSW) PTY LTD
132 055 728
CARDIFF CAR CITY PTY LIMITED
062 072 299
EAGERS AUTOMOTIVE — Financial Report 2021 145
Controlled Entities continued
As at 10 March 2022
Entity
ACN
Entity
CARLIN AUCTION SERVICES (NSW) PTY
069 462 148
EASY AUTO 123 PTY LTD
ACN
148 136 314
CARLINS AUTOMOTIVE AUCTIONEERS PTY LTD
069 430 182
ESSENDON AUTO (2017) PTY LTD
616 989 596
CARLINS AUTOMOTIVE AUCTIONEERS (QLD) PTY LTD
648 699 325
EUROCARS (SA) PTY LTD
CARLINS AUTOMOTIVE AUCTIONEERS (SA) PTY LTD
639 409 537
FALCONET PTY. LTD.
CARLINS AUTOMOTIVE AUCTIONEERS (WA) PTY LTD
121 606 826
FERNTREE GULLY AUTOS HOLDINGS
PTY LTD
114 124 346
008 936 409
613 081 208
CARLINS GROUP HOLDINGS PTY LTD
619 469 966
FERNTREE GULLY AUTOS PTY LTD
145 562 401
CARSPLUS AUSTRALIA PTY LTD
082 428 279
FINMO PTY LTD
CARZOOS PTY LTD
608 791 911
GIANT AUTOS (1997) PTY LTD
CASTLE HILL AUTOS NO. 1 PTY. LTD.
148 096 244
GIANT AUTOS PTY LTD
621 801 054
078 830 770
112 854 832
CASTLEGATE ENTERPRISES PTY LTD
088 414 715
GRAHAM CORNES MOTORS PTY. LTD.
008 123 993
CFD (2012) PTY LTD
CH AUTO PTY LTD
CHEAP CARS QLD PTY LTD
CHELLINGWORTH PTY LTD
158 508 233
600 297 783
616 472 729
112 854 467
GRAND AUTOS 2005 PTY LTD
HIGHLAND AUTOS PTY LTD
HIGHLAND KACKELL PTY LTD
112 854 878
121 604 297
121 805 785
HM (2015) Holdings Pty Ltd
605 790 065
CITY AUTO (2016) HOLDINGS PTY LTD
611 922 993
HM (2015) PTY LTD
CITY AUTO (2016) PTY LTD
611 928 968
IB MD PTY LTD
CITY AUTOMOTIVE GROUP PTY LIMITED
067 985 602
IB MOTORS PTY LTD
CITY MOTORS (1981) PTY LTD
008 973 402
JANASEN PTY LTD
CRAMPTON AUTOMOTIVE PTY LTD
057 283 253
JANETTO HOLDINGS PTY LTD
DRIVE A WHILE PTY LTD
DUAL AUTOS PTY LTD
DUNCAN AUTOS 2005 PTY LTD
DUNCAN AUTOS PTY LTD
168 250 128
113 068 830
112 854 485
093 664 192
KINGSPOINT PTY LTD
LEASELINE & GENERAL FINANCE PTY. LTD.
010 131 361
LIONTEAM PTY LTD
112 854 458
LWC INTERNATIONAL LIMITED
E. G. EAGER & SON PTY. LTD.
009 658 306
LWC LIMITED
EACAB Pty Ltd
EAGERS FINANCE PTY. LTD.
652 679 000
009 721 288
MAITLAND CITY MOTOR GROUP HOLDINGS PTY LTD
602 179 000
MAITLAND CITY MOTOR GROUP PTY LTD
112 526 431
EAGERS MD PTY LTD
009 727 753
MATCHACAR PTY LTD
EAGERS NOMINEES PTY. LTD.
009 723 488
MB VIC PTY LTD
EAGERS RETAIL PTY. LTD.
EASST Pty Ltd
009 662 211
651 942 264
MBSA MOTORS PTY LTD
MCM AUTOS PTY LTD
609 773 873
608 791 877
132 711 892
121 606 862
605 791 142
169 210 173
169 209 607
009 388 621
104 649 505
104 766 565
3361910
1861124
EAGERS AUTOMOTIVE — Financial Report 2021 146
Controlled Entities continued
As at 10 March 2022
Entity
ACN
Entity
MCM SUTHERLAND PTY LTD
121 606 808
SOUTH WEST QUEENSLAND MOTORS
PTY LTD
ACN
600 279 589
MELBOURNE CITY AUTOS (2012) PTY LTD
150 616 747
SOUTHEAST AUTOMOTIVE GROUP PTY LTD
103 071 290
MELBOURNE TRUCK AND BUS CENTRE
PTY LTD
MELVILLE AUTOS 2005 PTY LTD
MELVILLE AUTOS PTY LTD
143 202 699
SOUTHERN AUTOMOTIVE GROUP PTY LTD
103 181 237
112 854 421
107 617 774
SOUTHSIDE AUTOS (1981) PTY LTD
008 968 821
SOUTHSIDE AUTOS 2005 PTY LTD
112 854 369
MORNINGTON AUTO GROUP (2012) PTY LTD
150 616 890
SOUTHWEST AUTOMOTIVE GROUP PTY LTD
096 279 480
637 015 457
098 706 051
009 162 387
112 854 896
MOTORS GROUP (GLEN WAVERLEY)
PTY LTD
164 997 228
SUBMO PTY LTD
MOTORS TAS PTY LTD
608 791 680
SWGT PTY LTD
NEWCASTLE COMMERCIAL VEHICLES
PTY LTD
NORTH CITY (1981) PTY LTD
NORTH CITY 2005 PTY LTD
157 829 626
008 974 061
113 532 077
TOTAL AUTOS (1990) PTY LTD
TOTAL AUTOS 2005 PTY LTD
VEHICLE STORAGE & ENGINEERING PTY LTD
121 604 242
NORTHSIDE AUTOS 2005 PTY LTD
112 854 805
NORTHSIDE NISSAN (1986) PTY LTD
008 974 070
VMS PTY. LTD.
WA TRUCKS PTY LTD
121 604 037
112 854 341
WEBSTER TRUCKS MGMT PTY LTD
632 136 899
WESTERN EQUIPMENT RENTALS PTY LTD
131 269 184
WIDEVALLEY PTY LTD
WS MOTORS PTY LTD
ZUPP HOLDINGS PTY. LTD.
ZUPPS ASPLEY PTY. LTD.
ZUPPS GOLD COAST PTY. LTD.
ZUPPS MT GRAVATT PTY LTD
ZUPPS PARTS PTY. LTD.
065 389 120
608 791 804
009 824 462
009 900 298
009 681 261
009 695 694
009 842 648
NORTHWEST (WA) PTY LTD
NOVATED DIRECT PTY LTD
158 935 294
164 980 705
NSW VEHICLE WHOLESALE PTY LIMITED
140 971 259
NUFORD FORD PTY LTD
NUNDAH MOTORS PTY. LTD.
OPM (2012) HOLDINGS PTY LTD
OPM (2012) PTY LTD
OSBORNE PARK AUTOS PTY LTD
PENRITH AUTO (2016) PTY LTD
112 854 449
009 681 556
623 139 177
158 377 452
112 854 476
611 323 150
PERTH AUTO ALLIANCE PTY LTD
089 353 346
PRECISION AUTOMOTIVE TECHNOLOGY PTY LTD
163 233 207
PT (2013) PTY LTD
RENT TWO BUY PTY LTD
RL SUBLESSOR PTY LTD
162 030 015
165 880 562
639 689 320
SABALAN HOLDINGS PTY LTD
602 181 117
SABALAN PTY LTD
SHEMAPEL 2005 PTY LTD
002 698 188
112 854 412
EAGERS AUTOMOTIVE — Financial Report 2021 147
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Annual2021ReportEagers Automotive LimitedABN 87 009 680 013
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