ap eagers comments on fbt changes

17 July 2013
Company Announcements Office
ASX Limited

Federal Government’s Car Fringe Benefits Tax (FBT) Changes
A.P. Eagers Limited (ASX:APE) has considered the Federal Government’s planned
changes to the FBT treatment of salary-sacrificed and employer-provided cars, announced
yesterday. The changes appear to be aimed at removing any tax concession arising from
the personal use of a vehicle.

Salary-sacrificed cars, which are often purchased for personal use, comprise a relatively
minor part of A.P. Eagers’ business, contributing less than 5% of the company’s new car
sales volume. Typically it is a low margin business activity.
Generally, employer-provided cars are purchased primarily for business use; hence we do
not expect there to be as significant an impact on employer-provided cars.

In the longer term, the expectation is that the changes will not have a material impact on
total vehicle usage in the Australian market.
The franchise retail business model in which A.P. Eagers and the automotive retail industry
in Australia operate involve multiple sources of income including sale of new vehicles,
used vehicles, service, parts, car care, finance and insurance, to a broad range of private,
business and government customers.
Diversification across brands, locations, a significant truck business, and a substantial
property portfolio assist the company in mitigating the risk related to FBT changes which
are targeted at one buyer type. A.P. Eagers’ decentralised business model and focus on
business fundamentals have demonstrated over time an ability to successfully adapt to
changes in the external market.

The information released yesterday is lacking in detail, and until legislation is drafted the
exact impact of the changes is difficult to determine with any certainty. As further
clarification becomes available we will provide additional information to shareholders.
ENDS
For more information: Martin Ward, Chief Executive Officer, (07) 3248 9455