Maxiparts Limited · ASX:MXI
Maxiparts — MaxiTRANS Industries — Shareholder Meeting (November 2020)
37 slides from Maxiparts's shareholder meeting presentation, Nov 23, 2020
Slide 1: 2020 Annual General Meeting
23 November 2020 For personal use only MaxiTRANS Industries Limited 2020 Annual General Meeting Chairman’s and Managing Director’s Addresses Attached are the Chairman’s Address, Managing Director’s Address and presentation to be delivered at today’s Annual General Meeting. Authorised by: Contact: De
Slide 2: Chairman's Remarks
23 November 2020 MaxiTRANS Industries Limited 2020 AGM Chairman’s Remarks For personal use only Firstly, let me sincerely thank our staff for the tireless efforts they have put in over the year to ensure everyone remains safe and for enabling our operations to continue supporting our customers despi
Slide 3: Strategy
Strategy Strategically, the Board has shifted much of its focus to the short/medium term outlook. While the external environment remains so fluid we will continue to focus on maintaining a prudent approach to the balance sheet and new expenditure on growth activity will be constrained as much as pos
Slide 4: Capital Management and Outlook
Capital Management As I mentioned earlier, The Board and management did shift our focus to cash management which resulted in Operating Cashflows of $31.4m and a 62% reduction in net debt at June 30 to $12m. Your Board and management team will continue this focus into FY21 with further focus on the a
Slide 5: Managing Director's Address
23 November 2020 MaxiTRANS Industries Limited 2020 AGM Managing Director’s Address For personal use only I would like to reiterate the comments of our Chairman and recognise the efforts our customers through the COVID-19. As Ben Maguire (Chief Executive of the Australian Trucking Association) has sa
Slide 6: For personal use only
Our Underlying NPBT was $0.7m which was down by $5m from 2019. Of this, $2.7m was a result of the increased costs we incurred after the sale and leaseback of 2 properties in 2019. I should stress that the improving balance sheet position this year did not include this cash For personal use only bene
Slide 7: CAPEX, Carole Park Relocation, MaxiPARTS
CAPEX With the challenging economic conditions, MaxiTRANS increased its focus on balancing CAPEX and operational needs. For personal use only Except for 1 service site and Sales Network, we have successfully completed the roll out of our ERP system to the Trailer business. We have delayed its roll o
Slide 8: Strategy Update
Industry data suggests that the national registration of heavy trailers continues to decline in 2020 with a 13% reduction to the end of Q3 calendar. This reduction though does appear to be weighted towards WA where MaxiTRANS traditionally has a smaller share. For personal use only Strategy Update Wh
Slide 9: MaxiTRANS Industries Limited 2020 Annual General Meeting
For personal use only MaxiTRANS Industries Limited 2020 Annual General Meeting
Slide 10: Online Attendees – Question Process
ONLINE ATTENDEES – QUESTION PROCESS For personal use only • When the Question function is available, the Q&A icon will appear at the top of the app. • To send in a question, simply click in the ‘Ask a question’ box, type your question and the press the send arrow • Your question will be sent immedia
Slide 11: Online Attendees – Voting Process
ONLINE ATTENDEES – VOTING PROCESS For personal use only • When the poll is open, the vote will be accessible by selecting the voting icon at the top of the screen • To vote simply select the direction in which you would like to cast your vote, the selected option will change colour. • There is no su
Slide 12: Board of Directors
Board of Directors For personal use only Rob Wylie – Chairman, Non-Executive Director James Curtis – Deputy Chairman, Non-Executive Director Dean Jenkins – Managing Director & CEO Samantha Hogg – Non-Executive Director Joseph Rizzo – Non-Executive Director Mary Vershuer – Non-Executive Director 4
Slide 13: Chairman's Address
For personal use only Chairman’s Address 5
Slide 14: Managing Director's Address
Managing Director’s Address For personal use only 6
Slide 15: FY20 Results
FY20 RESULTS For personal use only • Strengthened Balance Sheet resulted in Net Debt reducing by $19.9m to $12.1m, down from $32m • Operating Cashflow increased to $31.4m • External sales of $317.6m, down 9.9% with MaxiPARTS maintaining its consistent performance • Underlying EBITDA of $14.7m ($5.3m
Slide 16: Financial Overview
FINANCIAL OVERVIEW Results For personal use only • MaxiPARTS business held up well in the FY20 FY20 Pre FY19 Pre AASB16 current market increasing revenue by A$M Reported AASB16 Reported ** YoY % 1.5% External Revenue* 317.6 317.6 352.5 -9.9% • Trailer Solutions experienced revenue EBITDA (Underlying
Slide 17: Earnings Bridge
EARNINGS BRIDGE For personal use only * Whilst not quantified, the impact of COVID-19 on the business is considered in this section 9
Slide 18: Cashflow
CASHFLOW A$M FY19 FY20 For personal use only EBITDA (Underlying) 14.2 14.7 Change in Working Capital (9.1) 14.1 FY19 vs FY20 Operating Cashflow Bridge Other (11.1) 2.6 Operating Cashflow (6.1) 31.4 Dividends Paid (2.8) 0.0 Dividends Received 1.4 2.2 CAPEX (13.2) (5.4) Lease Payments * 0.0 (8.5) Othe
Slide 19: Balance Sheet
BALANCE SHEET For personal use only A$M FY19 FY20 • A dedicated focus on cash generation has Cash 11.9 25.5 significantly strengthened MaxiTRANS Balance Receivables 42.4 26.5 Sheet with Cash at Bank up +200% over FY19 Inventories 59.3 58.4 • Interest Bearing Loans have reduced by 15% Total Current A
Slide 20: CAPEX
CAPEX For personal use only Rental Fleet • Challenging economic conditions drew increased CAPEX focus on balancing CAPEX and operational needs ERP (TRANSform) 18 16 • IT systems (ERP and associated systems) 14 13.2 investment to conclude in FY21 12 3.8 10 • ERP Live in Manufacturing with rest of Tra
Slide 21: Relocation to Carole Park (Brisbane)
RELOCATION TO CAROLE PARK (BRISBANE) For personal use only • FY21 will see MaxiTRANS relocate its Queensland Manufacturing operations from Richlands to a purpose built facility at Carole Park (Brisbane) • Relocation will generate manufacturing efficiencies of +$2.3m pa plus add product portfolio fle
Slide 22: Business Unit Performance
For personal use only BUSINESS UNIT PERFORMANCE 14
Slide 23: MaxiPARTS Revenue
MAXIPARTS REVENUE For personal use only 11% compound annual revenue growth FY16 - Total revenue (internal + external) ($m) FY19 Revenue growth = +11% CAGR • FY20 sales outside MaxiTRANS 140 133 131 sustained at FY19 levels despite 127 100 COVID impact in H2 120 Key growth drivers: Revenue ($m) 97 10
Slide 24: Segment Earnings – MaxiPARTS
SEGMENT EARNINGS – MaxiPARTS For personal use only FY20 FY20 pre- Reported AASB16 FY19 FY18 FY17 FY16 MaxiPARTS continues to become a larger A$M share of the MaxiTRANS business Total Revenue 130.8 130.8 133.5 127.4 99.9 97.2 External Revenue 114.4 114.4 112.7 101.9 88.8 88.0 EBITDA excl Corporate Co
Slide 25: Segment Earnings – Trailers (Australia & NZ)
SEGMENT EARNINGS – TRAILERS (AUSTRALIA & NZ) FY20 FY20 pre- For personal use only FY19 FY18 FY17 FY16 Reported AASB16 A$M • Revenue declined by 15.4% over FY19 Total Revenue 205.5 205.5 240.5 298.5 233.9 235.4 External Revenue 203.2 203.2 240.2 290.9 232.2 233.5 principally due to external market fo
Slide 26: Strategy Update – Focusing on the Near Term
For personal use only STRATEGY UPDATE – FOCUSING ON THE NEAR TERM 18
Slide 27: Strategic Activity to Focus on Near Term
STRATEGIC ACTIVITY TO FOCUS ON NEAR TERM For personal use only Whilst maintaining consistent pathways of strategy the scope has been refined to ensure we underpin continued focus on balance sheet prudence: • Operational excellence - ensure the group’s systems and processes deliver high quality, cost
Slide 28: Outlook
For personal use only OUTLOOK 20
Slide 29: FY21 Outlook
FY21 OUTLOOK • With MaxiPARTS recovering from the COVID-19 revenue challenges quicker than expected, consistency in For personal use only trading is expected in the underlying business throughout the remainder of the year. Organic growth initiatives are expected to provide continued momentum in H2.
Slide 30: Values
VALUES For personal use only SEND ALL OUR A BALANCED FOCUS ENABLE AND PEOPLE HOME ON CUSTOMERS EMPOWER PEOPLE SAFELY AND RESULTS TO ACHIEVE RESULTS BE HONEST, ENCOURAGE BECOME BETTER FORTHRIGHT AND COLLABORATION EVERY DAY IN ALL ETHICAL IN OUR AND DEEP SEATED THAT WE DO DEALINGS ACCOUNTABILITY 22
Slide 31: Formal Business
For personal use only Formal business 23
Slide 32: Questions
For personal use only Questions 24
Slide 33: Financial Statements and Reports
Financial Statements and Reports For personal use only To receive and consider the financial report, the directors’ report and the auditors’ report for the Company and its controlled entities for the year ended 30 June 2020. 25
Slide 34: Adoption of the Remuneration Report
Adoption of the Remuneration Report For personal use only That the Company’s Remuneration Report for the year ended 30 June 2020 be adopted. Valid proxies have been received in respect of this resolution as follows: For Against Proxy’s Abstain discretion 45,438,809 7,085,316 442,558 646,830 85.78% 1
Slide 35: Re-election of Director – Robert Wylie
Re-election of Director – Robert Wylie For personal use only That Robert Wylie, who retires in accordance with the Company’s Constitution and being eligible for election, is re-elected as a Director of the Company. Valid proxies have been received in respect of this resolution as follows: For Agains
Slide 36: Grant of Performance Rights to the Managing Director and CEO
Grant of Performance Rights to the Managing Director and CEO For personal use only For the purposes of Listing Rule 10.14, to approve the grant of performance rights to Dean Jenkins, Managing Director and Chief Executive Officer, as described in the Explanatory Memorandum. Valid proxies have been re
Slide 37: For personal use only
For personal use only
MaxiTRANS Industries — Shareholder Meeting (November 2020) on 6ix