Ann: AHG FY2018 APP 4E AND RESULTS PRESENTATION, page-2

Summary:

Overall it was consistent with the most recent guidance - i.e. it was a bad result but in line with expectations.

The car and truck businesses did very well. Operating cash flow was also very good - higher than previous corresponding period. If this was the entirety of the result, we shareholders would be delighted.

Unfortunately, everything else sucked – massive acquisition costs, the logistics business continues to be a millstone on shareholder returns with or without the HNA associated problems and finance and insurance returns were down. That said, some of the negatives including the impairment costs and the HNA disruption costs are likely to be one offs.

Interest bearing debt was up - but by less than the increase in inventory - even though I did not see a break down on first reading, I would assume that a part of this is attributable to the bolt on acquisitions made during the year. Revenues increased $368 million, which not only supports this conclusion, it confirms that AHG does not have an excess inventory problem.

The lack of guidance from the board does not help - the markets hate uncertainty but I shouldn't complain - one investor's uncertainty is another investor's opportunity.

Absent a deterioration in trading conditions I expect the 2019 result to be better than this one even if all they do is eliminate most of the one offs.