Rpm Automotive Group Ltd. · ASX:RPM
Rpm Automotive — FY2022 Earnings Presentation
24 slides from Rpm Automotive's earnings presentation, Aug 31, 2022
Slide 1: Establishing a National Footprint in the Automotive Aftermarket
ESTABLISHING A NATIONAL FOOTPRINT IN THE AUTOMOTIVE AFTERMARKET RPM AUTOMOTIVE GROUP LTD (ASX: RPM) INVESTOR OVERVIEW │ AUGUST 2022 RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 1
Slide 2: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER Overview This document is issued by RPM Automotive Group Limited ACN 002 527 906 RPM (“RPM Automotive” or “RPM”) on 31 August 2022 Summary Information This document contains summary information about RPM Automotive and its associated and proposed associated entities and
Slide 3: Business Overview
BUSINESS OVERVIEW 3 RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 3
Slide 4: Establishing a National Footprint in the Automotive Aftermarket
ESTABLISHING A NATIONAL FOOTPRINT IN THE AUTOMOTIVE AFTERMARKET RPM business units offer wheels, tyres, accessories and apparel to both wholesale and retail (B2B commercial, industrial and consumer) customers RPM has made 13 acquisitions over the past 2 years to rapidly grow its product range, netwo
Slide 5: RPM's 3-Year Vision
RPM’S 3-YEAR VISION In the next three years, RPM is working towards: • Expansion of wholesale: Warehouses and distribution facilities in each of the major centres • Expansion of retail: A well-established retail network servicing the transport industry in major transportation hubs, focused on commer
Slide 6: FY22 Results Overview
FY22 RESULTS OVERVIEW FY22 FY21 FY22 Key Highlights Sales Revenue $78.8m $45.1m +75% • Expanded national footprint Gross Profit* $27.9m $15.2m +84% • Strong revenue and Reported EBITDA $7.3m $3.8m +93% underlying earnings Underlying EBITDA** $7.6m $3.4m +124% growth Net Profit Before Tax (NPBT) $3.9
Slide 7: 4 Complementary Business Units
4 COMPLEMENTARY BUSINESS UNITS REPAIRS PERFORMANCE WHEELS & ROADSIDE MOTORSPORT & ACCESSORIES & TYRES Tyre and auto Certified race safety wear, Bolt on vehicle parts and Distribution of wheels and service centres suits and helmets accessories tyres Retail Retail Retail & Wholesale Wholesale • Retail
Slide 8: Expanding Retail, Wholesale and Manufacturing to Increase Operating Leverage
EXPANDING RETAIL, WHOLESALE AND MANUFACTURING TO INCREASE OPERATING LEVERAGE 25 Retail points of presence 9 Wholesale distribution hubs to service the retail footprint 4 Manufacturing centres RETAIL WHOLESALE MANUFACTURING RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 8
Slide 9: Investments in Growth – Organic & Acquisition
INVESTMENTS IN GROWTH – ORGANIC & ACQUISITION Elite Tyre Super Tyre Carline Automotive – Direct Wholesale VicWide Tyre Services Group Mart Cairns Tyres Safety Dave AFT Automotive ACT Total Tyres 8 ACQUISITIONS Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 ORGANI
Slide 10: Broadening Product Range
BROADENING PRODUCT RANGE Commercial Industrial Consumer Wheels & Tyres Motor Accessories 4WD Accessories Caravan Accessories Motorsport RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 10
Slide 11: Track Record of Revenue and Earnings Growth
TRACK RECORD OF REVENUE AND EARNINGS GROWTH Sales revenue Underlying EBITDA contribution • Significant growth from the (by business unit) ($m) (by business unit) ($m) 8 acquisitions completed in 90 8 FY22 80 7 70 • Organic growth of over 18% 6 in FY22 demonstrates 60 5 operating leverage within 50 t
Slide 12: Diversified Revenue Streams Driving Sustainable Earnings
DIVERSIFIED REVENUE STREAMS DRIVING SUSTAINABLE EARNINGS FY22 Revenue and margin (by business unit) Revenue Gross Profit EBITDA $31.9m $28.0m $9.4m $11.1m $7.9m $7.1m $7.4m $1.9m $3.6m $2.9m $1.3m $1.5m Repairs & roadside Motorsport Performance & accessories Wheels & tyres REPAIRS PERFORMANCE WHEELS
Slide 13: Growth Strategy
GROWTH STRATEGY 13 RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 13
Slide 14: Capturing Share in a Fragmented Market
CAPTURING SHARE IN A FRAGMENTED MARKET 1,050,000 new vehicles sold in 2021 Aging vehicles = more maintenance Trucks and buses Motorbikes 0.8m 0.9m $5.1B Cars Tyre retailing sector The sector is highly Vans 14.8m annual revenue in Australia fragmented and RPM 3.5m has a strong track 20m record of dri
Slide 15: Three Core Strategies to Better Service Our Customers
THREE CORE STRATEGIES TO BETTER SERVICE OUR CUSTOMERS Operating Strategic acquisitions Vertical integration leverage • Identify complementary businesses • Capitalise on in house design • Consolidate brands to maximise to unlock synergies through cross capability to bring new products to brand awaren
Slide 16: Growth by Strategic Acquisitions
GROWTH BY STRATEGIC ACQUISITIONS Case study: Safety Dave • Acquire complementary businesses to unlock Acquired February 2022 synergies Segment Caravan and camper trailer accessories • Target approximately ~50% scrip and ~50% cash • Grows accessories division consideration • Accesses caravan segment
Slide 17: Vertical Integration for Margin Expansion
VERTICAL INTEGRATION FOR MARGIN EXPANSION Case study: Direct Wholesale Tyres (DWT) Wholesale Acquired October 2021 New wholesale distribution Segment business and warehouse Servicing Far North Queensland (FNQ) Distributes wholesale Provides insight Increased retail • Adding RPM wholesale volumes of
Slide 18: Operating Leverage – Investment in Systems & Processes
OPERATING LEVERAGE – INVESTMENT IN SYSTEMS & PROCESSES • Invest in systems and analytics to drive cross-selling • Implementation of best practise inventory and supply chain management • Focus on the effective integration of acquisitions • Use economies of scale to deliver improved margin • In-fill e
Slide 19: Operating Leverage – Consolidate Brands
OPERATING LEVERAGE – CONSOLIDATE BRANDS Consolidating acquired brands to Revolution and RPM Autoparts primary brands REPAIRS PERFORMANCE WHEELS & ROADSIDE MOTORSPORT & ACCESSORIES & TYRES Primary retail brand Primary retail brand offers Primary wholesale brand Primary wholesale brand supported by ac
Slide 20: Corporate Snapshot
CORPORATE SNAPSHOT CAPITAL STRUCTURE REGISTER Shares on Issue 157.6m Vendors Options 26.9m 17% Wholesale/Retail Share Price (29/8/22) $0.265 34% Market Capitalisation $42.9m Institutions 52-week High (3/9/21) $0.375 18% 52-week Low (24/2/22) $0.255 Management & Staff 31% MA JOR SHAREHOLDERS Clive Fi
Slide 21: Experienced Board of Directors
EXPERIENCED BOARD OF DIRECTORS GRANT CARMAN CLIVE FINKELSTEIN LAWRENCE JAFFE GUY NICHOLLS ALEX GOODMAN NON-EXECUTIVE CHAIRMAN CEO/MANAGING DIRECTOR EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR Chartered accountant with over Co-founder of RPM Co-founder of RPM Over 30 years’ exper
Slide 22: Key Highlights
KEY HIGHLIGHTS RPM continued network expansion in design, manufacture, wholesale and retail VERTICALLY provides opportunities for cross selling, operational efficiency, revenue INTEGRATED MODEL diversification to push organic growth MARKET LEADING RPM owns and holds the rights to some of the most we
Slide 23: FY23 Outlook
FY23 OUTLOOK • RPM enters FY23 with an annualised revenue run rate of over $120m • Increased operating leverage through cross-sell and economies of scale • Further investment in NSW, SA and WA • Growth in retail division from building out network and product expansion • Growth in wholesale division
Slide 24: Media & Investors
MEDIA & INVESTORS KATIE MACKENZIE T: +61 455 502 197 E: INVESTORS@RPMGROUP.NET.AU RPM AUTOMOTIVE GROUP LTD (ASX: RPM) www.rpmgroup.net.au RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 24