Amotiv Limited · ASX:AOV
Amotiv — GUD Holdings — Investor Day (April 2022)
66 slides from Amotiv's investor day presentation, Apr 8, 2022
Slide 1: Auto Electrical, Lighting and Power Management
George Davies, CEO BWI Group Auto Electrical, Lighting and Power Management 57
Slide 2: Grow a global niche leadership position in Automotive Lighting
Grow a global niche leadership position in Automotive Lighting, and expand vehicle Power Management internationally 1. Management estimates. 2.SEMA 2021 market report, management estimates. 3.Market Data Forecast: Europe Automotive Lighting Market (Jan/22). 4.KPMG (Feb/21), Caravan Industry Associat
Slide 3: Very comprehensive product catalogue creates international opportunities
Very comprehensive product catalogue creates international opportunities Footprint Our brands Our portfolio includes product category leading brands Sites People SKUs • Electrical and lighting: Narva, KT Cable (AE4A), Vision X • Power management: Projecta, KT Solar (AE4A) 4 across ANZ 350 c.17,000 •
Slide 4: Brown & Watson International: A leader in automotive electrical, lighting and power management
Brown & Watson International: A leader in automotive electrical, lighting and power management George Davies, Group CEO 60
Slide 5: Brown & Watson International
About Brown & Watson International History The BWI way • Established 1953 Our ambition is to be a world leader in automotive lighting, electrical and power products for the • Narva established 1980’s consumer and the professional. Our people are our greatest asset and foster passion, excellence, • P
Slide 6: Our way of working
Our way of working Safety People ‘Our Priority’ ‘We Achieve Together’ Track Record Engagement 2022 GUD Safety Excellence Award Employee Engagement 83% 95% Safety Score – Engagement Leadership Effectiveness 86% Survey Executive Effectiveness 83% > 95% of all Safety Actions closed – Vault Damstra Dive
Slide 7: A global niche leader in lighting and expanding power management internationally
Strategic Imperatives A global niche leader in lighting and expanding power management internationally Strengthen our manufacturing credentials Global footprint • Increase sourcing volume from internal manufacturing Market focus for lighting and electrical will be on Australia, New Zealand, USA, Eur
Slide 8: Organising for success
Organising for success Protect the core Australian operations Group structure • Continuing to strengthen the Australian management team to provide the BWI Group necessary capacity for offshore opportunities • Significant investment in product development through the COVID period to Shared services a
Slide 9: Australia
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Slide 10: BWI is a multi-discipline business serving multiple channels
Channel BWI is a multi-discipline business serving multiple channels BWI serves multiple channels Offroad Transport & Commercial Automotive • Automotive Retail & Trade: Addressing both the DIY and DIFM motorist through an extensive network of generalist and specialist retailers • Offroad: A growing
Slide 11: A wide range of paths to market
Customer A wide range of paths to market BWI has a resilient distribution model with numerous paths to market in ANZ. USA has a narrower distribution network, and this remains a growth corridor opportunity. Retail • Anaconda, Autobarn, AutoPro, AutoOne, BCF 2018 Aftermarket 2019 Supplier 2019 Except
Slide 12: Product development credentials
Product development credentials BWI continues to invest and grow its capability and capacity to manage its product portfolio pipelines. Innovative new product development is a critical success factor across all businesses to maintain brand strength. Global Product Development Team Based in Australia
Slide 13: Comprehensive product portfolio
Product Comprehensive product portfolio NARVA provide market-leading automotive lighting and electrical solutions to suit a wide range of vehicles. Over 5,000 part numbers make up NARVA’s Driving & Fog Lamps Fuses & Fuse Assortment industry leading catalogue. NARVA supply a world class range of auto
Slide 14: Comprehensive product portfolio
Product Comprehensive product portfolio The Projecta name is built on a heritage which began in 1989. Today, Projecta is recognized as Australia’s market leader in high quality battery Battery maintenance and battery power products. Chargers Intelli-RV Designed and engineered at the Melbourne head o
Slide 15: #3 most innovative company in Australia and New Zealand
Innovation #3 most innovative company in Australia and New Zealand ANZ Top 10 most innovative two years running Recognised for the second successive nomination in the AFR BOSS Most Innovative Company Awards. Placed 8th in 2021, and 3rd in 2021 for Rapid Recharge Technology on the Intelli-Start range
Slide 16: Comprehensive product portfolio
Product Comprehensive product portfolio Automotive Electrical & 4WD Accessories (AE4A) Automotive Electrical & 4WD Accessories (AE4A) is home of industry leading brands KT Cable Accessories, KT Solar, Boab, National Luna, Eezi-Awn, K9, Quick Fist & Optraffic. Leading the Automotive Leading the Auto
Slide 17: Business update
Business update Covid continues to impact operations Highlights • Shanghai lockdowns interrupting • #3 most innovative company in ANZ production and supply in Q3 • Supplier awards from GPC and PACCAR • Interruptions to production in Korea end • Acquisition/integration of VX is well underway with vis
Slide 18: Griffiths Equipment Limited: New Zealand's largest automotive wholesale distributor
Griffiths Equipment Limited: New Zealand’s largest automotive wholesale distributor Gemma Collins, Executive General Manager 74
Slide 19: Griffiths Equipment is the largest automotive wholesaler in New Zealand
About Griffiths Equipment is the largest automotive wholesaler in New Zealand History • Established in 1977 – Griffiths Family • Acquired by GUD/BWI in 2016 • Greenfield office and warehouse built in 2019 • Leadership change in January 2021 Operations snapshot • Largest automotive aftermarket parts
Slide 20: Griffiths partners with a diverse selection of key customers across channels
Customer Griffiths partners with a diverse selection of key customers across channels Automotive+ channel mix offers opportunity for continued and diversified growth Automotive channels • 400+ trade and retail: key accounts include GPC (NAPA, Repco, Appco, Ashdown), Bapcor (BNT), ARG (SuperCheap Aut
Slide 21: Unparalleled breadth of brand portfolio in NZ auto accessories distribution
Product Unparalleled breadth of brand portfolio in NZ auto accessories distribution 60+ brands – mix of owned vs distribution Own brands: 66% • Narva (lighting and electrical) – c.6700 SKUs • Projecta (power) – c.700 SKUs • Wildcat (accessories) – c.250 SKUs • Type S c 35 SKUs • Jelly Jets – 9 SKUs
Slide 22: GUD 3PL proof of concept: Many brands, one order
Distribution GUD 3PL proof of concept: Many brands, one order Greenfield facility in Mt Wellington, Auckland • One of NZ’s largest automotive parts logistics hubs • 6,000 sqm warehousing space • 600 sqm office space • Dedicated team of 23 people NZ distributor for many GUD businesses • Own brands: N
Slide 23: NZ performing admirably relative to very tough external environment
NZ performing admirably relative to very tough external environment Business update Highlights • Revenue flat in H1, however grew strongly in Q2 following the hard lockdown • 84% Team Engagement – Great teamwork during COVID lockdown months in Q1 (where all retail was closed) • 93% score – external
Slide 24: Vision X: Design, manufacture and deliver the ultimate lighting solution
Vision X: Design, manufacture and deliver the ultimate lighting solution Tony Georgitsis, President 80
Slide 25: Vision X: engineered lighting solutions
About Vision X: engineered lighting solutions Strong history of manufacturing and distributing Vision X USA Vision X ASIA (South Korea) high quality, specialist lighting • Corporate office • Manufacturing • Warehouse • Testing • Established in 1997, Vision X’s specialist lighting products • • Produc
Slide 26: Established product development and manufacturing facilities
Established product development and manufacturing facilities Product Development Manufacturing • End to end Self-manufacturing of electronics Design and Development capability and lighting elements, and assembly activities. in three countries • In-house product specification • USA focused on typical
Slide 27: Primary market channels
Primary market channels Industrial Automotive-Offroad Channel Expert Partners 36% 37% 27% of CY21 sales of CY21 sales of CY21 sales The Industrial Channel includes LED lighting The Automotive-Offroad Channel includes Channel Expert Partners includes LED scene for mining equipment and vehicles, and v
Slide 28: Portfolio of engineered solutions for specialised segments
Portfolio of engineered solutions for specialised segments Specific product catalogues Tailored fit out guides and product solutions • Industrial applications • Over 100 applications • Vehicle applications • Application fit outs 84
Slide 29: Automotive-Offroad: Endurance and performance
Channels Automotive-Offroad: Endurance and performance Offroad and Racing Commercial Service Trucks Powersport Overland Automotive Off-road and Racing Commercial Service Trucks UTV/ATV/Motorcycle Overland Automotive • Dual Output/Function • Low Failure Rate • Slim Low Profile • Area Lighting • Vehic
Slide 30: Industrial: Engineered solutions
Channels Industrial: Engineered solutions Mining Structural Mobile Tower Plants Maritime Machine Vision Mining Commercial (Structural) Mobile Tower Lighting Maritime Machine Vision • Heavy Duty Brackets • Large Area Lighting • Large Area Lighting • Salt Water Resistant Coating • Precision Beam • Hig
Slide 31: Channel expert partners: Solution provider from design to delivery
Channels Channel expert partners: Solution provider from design to delivery Emergency Motorcycle Automotive Industrial Maritime Fire-tech: Denali: Ashdown Ingram Great Whites: Various Industrial Partners Imtra: Emergency Motorcycle Automotive • Custom Industrial Solutions Maritime • Scene Lighting •
Slide 32: Strongly diverse customer base
Strongly diverse customer base Customer concentration is low, and Customer concentration Top 10 resellers and distributors Vision X most are new to GUD Vision X • Top 18 customers represents circa 80% • Vision X Europe • Sunwest Supply Others = of revenue 20% • Ashdown-Ingram • APS • 80% of VX custo
Slide 33: Portfolio of powertrain agnostic and EV ready products
Portfolio of powertrain agnostic and EV ready products Over 1,200 products across 5 key specialised Revenue by segment TTM to 31 May 2021 product segments 1. Automotive: vehicle lighting for on and offroad 5 Automotive - 28% 8 applications, including jeeps, trucks and motorcycles 28 Fire and emergen
Slide 34: A very comprehensive portfolio of Go Forward product ranges
Product A very comprehensive portfolio of Go Forward product ranges ADV Light Cannon Unite Modular BHB LSG LED Driving Light LED Light Bar LED Heavy Duty LED Structural Work Light Lighting CG2 Light Cannon XPL BLB Vehicle ID Signs LED Driving Light LED Light Bar LED Medium Duty LED Vehicle Work Ligh
Slide 35: Healthy pipeline of innovative products
Innovation Healthy pipeline of innovative products Dual Output/Function Lighting Combo Beam Lighting LIN Bus Light Control & Autonomous Vehicle Lighting Customisable Solutions (Using Multiple Types of CAN Bus Integrated Lights & Machine Vision Optics or Reflectors) - Shocker Bar - Adventure Series -
Slide 36: Strong historic financial health with future growth potential
Strong historic financial health with future growth potential Solid growth in revenue and earnings Medium term opportunities for organic growth • Historic EBITA margins similar to GUD legacy automotive business units • Machine Vision Lighting – Camera integrated lighting used for quality control and
Slide 37: Integration and revenue synergy update
Integration and revenue synergy update Integration is on track • Dedicated integration resource proving successful • Expanding operational fitness – use GUD’s current improvement tools (PCM EBIT by product and customer analysis, innovation process, high-performance culture) to boost performance in V
Slide 38: Vision X complements BWI and opens up US and Europe
Vision X complements BWI and opens up US and Europe Portfolio of engineered powertrain-agnostic and EV ready products – further reduces GUD’s 1 exposure to internal combustion engines (ICE) Large and growing addressable markets – strong positions in automotive and non-automotive Strong product line
Slide 39: Strong growth continuing driven by new products
Strong growth continuing driven by new products Business update Highlights • Positive response from Vision X team members and customers to joining BWI/GUD • Continued strong revenue growth in the US and export markets • Managing supply chain disruptions – Vision X worked with key customers on annual
Slide 40: 4WD Accessories and Trailering
Jason Kieseker, CEO AutoPacific Group 4WD Accessories and Trailering 96
Slide 41: Build an integrated leader in 4WD Accessories and Trailering in ANZ
Build an integrated leader in 4WD Accessories and Trailering in ANZ with future export 1. Management estimates. 2. Australian Automotive Intelligence (Sep/21). 3. KPMG (Feb/21), AAI (Sep/21). 97
Slide 42: 4WD Accessories and Trailering category
4WD Accessories and Trailering category Footprint Our brands Our portfolio includes category leaders Sites People SKUs • Towing: Hayman Reese, Best Bars, Parkside, Trailboss • Functional accessories: East Coast Bullbars, Barden/ 10 across ANZ Uneek4x4, Kaymar, Parkside c.950 c.10,000 + 3 internation
Slide 43: AutoPacific Group: A clear leader in 4WD Accessories and Trailering
AutoPacific Group: A clear leader in 4WD Accessories and Trailering in Australia and New Zealand Jason Kieseker, CEO 99
Slide 44: APG is a clear leader in 4WD Accessories and Trailering in ANZ
APG is a clear leader in 4WD Accessories and Trailering in ANZ Large and growing addressable market (largely Pick-Ups (PUs) and Sports Utility Vehicles (SUVs)) 1 supported by positive structural tailwinds Leading market positions Undisputed market leader in towing with strong brands and market posit
Slide 45: APG is the undisputed leader in the 4WD cornerstone towing category
APG is the undisputed leader in the 4WD cornerstone towing category 1 Towing 3 Trailering ~85% Brands Selected products ~15% Brands Selected products market share1 market share1 Towbars X-bars Towballs Suspension systems Fifth wheel hitch Light truck Brakes Weight distribution #1 market position in
Slide 46: A large, attractive, and growing addressable market
1. A large, attractive, and growing addressable market Addressable market of new Pick-Ups and SUVs at historic high Trailering showing steady growth • Pick-Ups and SUV have the highest fitment rates of accessories and trailering products • Trailer registrations did not step up significantly in CY21
Slide 47: Shifts in vehicle type and accessorisation are driving compound growth
Shifts in vehicle type and accessorisation are driving compound growth Pick-Ups and SUV have higher fitment rates that Content opportunity by vehicle type drive a multiplier effect for volumes and revenues in average $ per unit • Content opportunity of an SUV is about 12x that of a Cargo management
Slide 48: APG has c.85% market share of the towing category in ANZ
2. APG has c.85% market share of the towing category in ANZ 1 Towing Strong and defensible leadership position c.85% Brands Selected products Dealer and factory fit channels market share1 • ‘Best-in-class’ engineering capability coupled with capacity to keep pace with all vehicle Towbars X-bars laun
Slide 49: Leveraging the towing anchor to grow share of wallet
2. Leveraging the towing anchor to grow share of wallet Need 2 to check that market shares and addressable Functional accessories markets make sense Sticky customer relationships with bluechip OEMs creates opportunities to grow beyond towing at factory fit c.15% Brands Selected products market share
Slide 50: Trailering showing strong supply and margin performance
2. Trailering showing strong supply and margin performance 3 Trailering Cruisemaster growing share through strong supply • Consumer demand for trailers/caravans has increased, but supply has failed to meet the ~15% Brands Selected products higher demand to date – caravan and trailer lead times have
Slide 51: Significant upside for growth in ANZ market in existing and new categories
Significant upside for growth in ANZ market in existing and new categories ANZ markets have significant untapped potential • APG has grown the functional accessories category to c.$40m pa from a zero base ten years ago; significant upside remains • Manufacture of functional accessories is a highly-f
Slide 52: Longstanding 'sticky' relationships with Bluechip OEMs and national retailers
3. Longstanding ‘sticky’ relationships with Bluechip OEMs and national retailers APG is well positioned across all channels to market Longstanding and diverse relationships underpinned by brand, quality and trust Factory fitted • APG’s top 5 customers have an average tenure of 21 years2 Ford • Singl
Slide 53: APG is a partner of choice for many OEM and aftermarket resellers
APG is a partner of choice for many OEM and aftermarket resellers APG is a partner of choice for OEM/OES Interplay between OEM and Aftermarket • Longstanding, sticky relationships with 5-7 year revenue visibility Factory fit Dealer fit Aftermarket with OEM cycle plans • 100% retention of EO customer
Slide 54: Highly complementary non-ICE products developed by best-in-class R&D
4. Highly complementary non-ICE products developed by best-in-class R&D Complementary 100% powertrain-agnostic products • APG products are suitable for all powertrains, from combustion to electric >4,000 SKUs 171 182 (Unparalleled coverage of New SKUs OE/OES projects awarded • Minimal overlap with G
Slide 55: Large scale, well-invested manufacturing and distribution capabilities
5. Large scale, well-invested manufacturing and distribution capabilities High volume, low cost manufacturing in Thailand and low volume, high variety manufacturing in Australia and New Zealand Creates flexibility and efficiencies in manufacturing Leading brands and distribution in … supported by sc
Slide 56: Scaling efficiently and cost-effectively to meet demand
Scaling efficiently and cost-effectively to meet demand Investment in throughput capacity to capture growing demand in the cornerstone towing category and expanding functional accessories Capacity (000’s units) Equipment installation 880 Melbourne, Australia capacity (000’s units) 1x Laser Cutter (T
Slide 57: Strong financial performance: CY19A to CY21F
6. Strong financial performance: CY19A to CY21F Pro forma CY21F EBITA bridge (A$m) Volume – existing SKUs Volume - new SKUs M&A – volume growth6 Margin Management SG&A, R&D and depreciation • Recovery in vehicle sales from • Functional accessories – Ford • Higher revenue from increased • Cost reduct
Slide 58: Strong growth in demand paired with share gains
Strong growth in demand paired with share gains Higher demand • APG launched 31 new SKUs in towing, Unit sales volume in 000’s growing sales volume by +26k units • New SUV/PU vehicle sales grew by • APG launched 18 new SKUs in +69k units (+10%)1 functional accessories, growing sales volume by +6k un
Slide 59: Future growth potential
Future growth potential Pro forma CY22F EBITA bridge (A$m) Volume – existing SKUs Volume - new SKUs M&A – volume and synergies5 Margin Management SG&A, R&D and depreciation • Pent up demand and easing of • 143 new SKUs released YTD • Market growth and full-year • Further efficiencies, and • Incremen
Slide 60: Significant headroom for further product and geographic expansion
Significant headroom for further product and geographic expansion Future growth opportunities Multi-product platform with a renowned brand portfolio and Thailand manufacturing facilities Market leading towing Geographical business in ANZ expansion and new market entry US and Southeast Asia Trailerin
Slide 61: APG will continue to apply a successful formula to drive growth
APG will continue to apply a successful formula to drive growth Executable growth initiatives International opportunities leveraging existing capability and expertise Trailer suspension growth • Leverage existing customer pull demand from the US for Kaymar, Functional accessories growth Cruisemaster
Slide 62: Integration and synergy update
The first 90 days: Integration and synergy update Integration is slightly ahead of expectations Synergy target of c.$7 million p.a. to be realised over three years • Dedicated integration resources at executive level (Bob Pattison) and finance level • 90-day integration actions addressed without iss
Slide 63: Positive start to the GUD relationship
Positive start to the GUD relationship Business update Highlights • Volatility in new vehicle supply, but positive segmentation • Positive reaction from staff to APG joining GUD (absolute number of PU/SUV sold in Australia at all-time high in CY21 despite supply challenges) • Successful launch of Fo
Slide 64: Australian Auto Aftermarket Expo
GUD Holdings Limited Guided tour Australian Auto Aftermarket Expo 120
Slide 65: AAA Expo
AAA Expo The Australian Auto Aftermarket Expo1 The Australian Auto Aftermarket Expo is the nation’s only comprehensive exhibition for Australia’s $25B aftermarket industry. The show showcases over 250 of the country’s leading brands Hosted by the Australian Automotive Aftermarket Association (AAAA),
Slide 66: Disclaimer
Disclaimer Important notices This Presentation has been prepared by GUD Holdings Limited (ABN 99 004 400 891) (“GUD” or “Company”). Summary information This Presentation contains summary information about GUD and its activities current as at 7 April 2022. The information in the Presentation is of a