Ama Group Limited · ASX:AMA
Ama — Investor Presentation (February 2023)
44 slides from Ama's investor presentation, Feb 21, 2023
Slide 1: 2023 Interim Results Presentation
2023 INTERIM RESULTS PRESENTATION For the Half Year Ended 31 December 2022 21 February 2023
Slide 2: Webcast
Webcast AMA Group 2023 Half Year Results Tuesday, 21 February 2023 11:00am, AEDT Register at: https://s1.c-conf.com/diamondpass/10027779-w0nsf4.html 2
Slide 3: Disclaimer
Disclaimer This presentation contains summary information about AMA Group Limited (ABN 50 113 883 560) (“AMA Group”) and its activities current as at the date of this presentation. The information in this presentation is of general background and does not purport to be complete. It should be read in
Slide 4: Contents
Contents Overview Slide 5 1H23 Financial Results Slide 11 Segment Performance Slide 16 Strategy and Priorities Slide 22 Outlook Slide 33 Other Information Slide 37 4
Slide 5: Overview
AMA GROUP AS
Slide 6: 1H23 Business Environment Recap
1H23 Business Environment Recap Strong demand for repair volume across most geographic markets and repair types ‐ Continued increase in severity ‐ Enhanced focus on margin in a capacity constrained market resulted in some repair volumes being declined Labour scarcity limited throughput ‐ The dem
Slide 7: Pricing leadership with strong ongoing insurer engagement
EBITDA (normalised, post-AASB 16) Cash on hand LTIFR $25.3m $33.3m 2.87 Affirm FY23 guidance of 28% decrease from 30 Jun 22 $70-90m Pricing leadership with strong ongoing insurer engagement Interim pricing for Capital S.M.A.R.T Network optimisation to align labour to profitable work provision Capita
Slide 8: 1H23 Key Metrics
1H23 Key Metrics Capital S.M.A.R.T AMA Collision Heavy Motor ACM Parts Group Metric 1H23 FY22 1H23 FY22 1H23 FY22 1H23 FY22 1H23 FY22 Safety – LTIFR 2.63 1.34 2.44 5.16 13.83 11.84 0.00 3.10 2.87 3.96 Average Repair Days 5.7 4.0 13.1 10.0 15.8 11.3 n/a n/a n/a n/a Repair Quality 1.8% 2.2% 3.7% 3.3%
Slide 9: 1H23 Financial Results Summary
1H23 Financial Results Summary Total Group revenue and other income of $426.2 million (1H22: $418.1 million) Normalised post-AASB 16 EBITDA of $25.3 million (1H22: $4.2 million) ‐ Reaffirm normalised post-AASB 16 EBITDA $70 million - $90 million guidance for FY23 Vehicle Collision Repairs and
Slide 10: Key 1H23 People Activities
Key 1H23 People Activities Take the LEAD HSE program Health and safety First aid training for home and work Record low LTIFR of 2.87 Retention Leaders forum town halls and A great place to work AMA Group awards Engagement Mental health training and new EAP Our Voice 72% response rate to employee sur
Slide 11: 1H23 Financial Results
1H23 Financial Results
Slide 12: Summary Financial Performance
Summary Financial Performance Summary financial performance ($M) 1H23 1H22 Change Change % Substantial $24.6 million improvement in normalised EBITDA Revenue 426.2 418.1 8.1 2% reflecting Operating expenses (inc. rent, exc. normalisations) (423.3) (439.8) 16.5 (4%) ‐ Improved insurer pricing - inc
Slide 13: Summary Financial Position
Summary Financial Position Summary financial position ($M) Dec-22 Jun-22 Change Change % 31 December 2022 cash position of $33.3 million Cash and cash equivalents 33.3 52.2 (18.9) (36%) Other current assets 112.8 132.3 (19.5) (15%) $8.9 million inventory build to broaden parts ranges and Intangi
Slide 14: Net Debt
Net Debt Net Debt ($M) 31-Dec-22 30-Jun-22 Change Change % Financial liabilities - drawn cash facilities 165.0 165.0 0.0 0% No significant changes to debt and capitalisation Cash and cash equivalents (33.3) (52.2) 18.9 (36%) during the period Net senior debt 131.7 112.8 18.9 17% 31 December 2022
Slide 15: Cash Flows
Cash Flows Statement of Cash Flows ($M) 1H23 1H22 Change Change % 1H23 Operating cash outflow of $4.1 million Receipts from customers, inclusive of GST 487.6 503.0 (15.4) (3%) substantially improved from $22.8 million in 1H22 Payments to suppliers and employees, inc. of GST (494.6) (510.7) 16.1 (3
Slide 16: Segment Performance
Segment Performance
Slide 17: Summary
Summary Improvement in operating position of all business units on prior year Vehicle Collision Repairs Heavy Motor Supply Corporate/Eliminations Total Group Summary financial performance ($M) 1H23 1H22 Change 1H23 1H22 Change 1H23 1H22 Change 1H23 1H22 Change 1H23 1H22 Change Revenue and other inco
Slide 18: Vehicle Collision Repairs
Vehicle Collision Repairs Summary financial performance ($M) 1H23 1H22 Change Pricing leadership with strong ongoing insurer Revenue 372.7 357.6 15.1 engagement Operating expenses (including rent) (371.7) (373.1) 1.4 ‐ Interim pricing for Capital S.M.A.R.T (from October 2022 to June EBITDA (pre- A
Slide 19: Heavy Motor
Heavy Motor Summary financial performance ($M) 1H23 1H22 Change Strong revenue result – up 14% pcp Revenue 31.7 27.8 3.9 Post- AASB 16 EBITDA grew 3.6% but adversely Operating expenses (including rent) (28.4) (24.3) (4.1) EBITDA (pre- AASB 16) 3.3 3.5 (0.2) impacted by general and occupancy cost
Slide 20: Supply
Supply Summary financial performance ($M) 1H23 1H22 Change Supply base business reset largely complete - in line with Revenue 40.6 42.7 (2.1) strategic plan and showing strong positive momentum1 Operating expenses (including rent) (40.6) (46.5) 5.9 EBITDA (pre- AASB 16) 0.0 (3.8) 3.8 Record dail
Slide 21: Corporate
Corporate Summary financial performance ($M) 1H23 1H22 Change Decreased net corporate costs reflect realisation of Revenue 0.0 0.0 0.0 targets through rationalisation of shared services as Operating expenses (including rent) (3.8) (7.4) 3.6 well as increased corporate rebates, partly offset by EBI
Slide 22: Strategy & Priorities
Strategy & Priorities
Slide 23: FY27 Strategic Targets
FY27 Strategic Targets Australia & New Zealand Vehicle 200+ $1.0b Collision Locations Revenue 132 currently FY22 $734m 16+ $100m Heavy Locations Revenue 9 currently FY22 $54m 70,000 m2 $150m Supply Capacity Revenue ~40,000 m2 currently FY22 $97m 3.0x Group Group Cost Leverage1 FY22 2.0x 1 Financial
Slide 24: Five Year Strategy Overview
Five Year Strategy Overview Strategic Objectives Great Place to Organic Acquisition Cash Flow Margin Work Growth Growth Generation Expansion Strategic Pillars – The Three Ps Partnerships Production Procurement Focus Areas Reset the Base Business Grow Minimise Disruption 1 2 3 24
Slide 25: FY23 Update
FY23 Update Short to Medium Term Focus Areas 1 2 3 Reset the Base Business Grow Minimise Disruption Adjustments to Contract pricing Embed organisational structure Optimise network Groupwide procurement to Accelerate third-party parts and Disintermediation of parts leverage benefits of scale consumab
Slide 26: Pricing and Network Update
Pricing and Network Update Contract pricing Network optimisation Regular pricing reviews forming part of regular insurer 1H23 optimisation activity improved productivity at engagement to manage cost inflation and recovery Vehicle Collision ‐ 16 sites closed Interim pricing for Capital S.M.A.R.
Slide 27: Site Profitability Analysis
Site Profitability Analysis (Excluding Capital S.M.A.R.T) Converted to Capital S.M.A.R.T 5-10% EBITDA Unprofitable Remaining loss making locations +10% EBITDA 0-5% EBITDA have clear pathways to improvement 127 125 119 Ongoing price management will 105 be required to maintain 101 58 52 profitabil
Slide 28: Capacity Utilisation
Capacity Utilisation Capacity utilisation improving following network optimisation activity 450 100 % ‘000 vehicles 419 392 398 90 400 56 373 21 80 Utilisation % 350 94 323 Unutilised Capacity 104 70 300 Volume 59 60 250 50 200 371 363 40 150 304 269 265 30 100 20 50 10 0 0 FY19 FY20 FY21 FY22 1H23
Slide 29: Parts & Procurement Strategy Update
Parts & Procurement Strategy Update FY23 Priority Procurement Parts Disintermediation Parallel import parts Distribution ‐ Record parallel import parts sales in November 2022 ‐ Victorian market – Somerton facility now well established ‐ Increased SKU count by over 1000 - focus on carparc and ope
Slide 30: Parts & Procurement Strategy Update
Parts & Procurement Strategy Update FY23 Priority BASF paint supply partnership Renewed 10-year partnership for the continued supply of BASF’s automotive paint technology across the network Improves alignment of paint supply costs to the operating cash flows of the associated repairs Future on
Slide 31: Revenue Diversification Update
Revenue Diversification Update FY23 Priority General Manager - Direct Sales commenced June 2022 Key segments and customer targets identified A centralised customer service function has been established to create a ‘one stop shop’ for our customers to manage the entire repair process. Marketi
Slide 32: Preparing for Growth
Preparing for Growth Immediate Expansion Plans ADAS Vehicle Collision Trials continue with two international vendors Surplus equipment being redeployed to extend capacity of following a global assessment of market relevant existing collision repair network – including new paint booths technology
Slide 33: Outlook
Outlook AMA GROUP
Slide 34: FY23 Outlook
FY23 Outlook “Green shoots” visible in FY23 transition year ‐ Broad pricing reset with ongoing engagement to appropriately recover inflation impacts ‐ Capital S.M.A.R.T repricing for FY24 to commence imminently ‐ Site network and labour optimisation maximise productivity Conservative approach to
Slide 35: Funding and Liquidity
Funding and Liquidity Senior debt facilities in place until October 2024 $ million 31 Dec 22 30 Jun 22 ‐ 64% of total debt on fixed interest arrangements Borrowings – cash drawn 165.0 165.0 Cash and cash equivalents (33.3) (52.2) Amended covenant achieved for 6 months to 31 December 2022 ‐ Bank
Slide 36: Aspiring to be Industry benchmark for safety
Aspiring to be Industry benchmark for safety Preferred employer within the industry Training “more than our share” 250+ sites $1.5b+ revenue 12%+ post-AASB 16 margins Supporting environmental sustainability through collision repair and parts sourcing 36
Slide 37: Other Information
Other Inform AMA GROUP
Slide 38: Normalisations
Normalisations Normalisation (post AASB 16) ($M) 1H23 1H22 Change Normalisations for the year were $2.4 million, mostly EBITDA (post- AASB 16) 22.9 2.8 20.1 related to the costs of closed and hibernated sites Normalisations Occupancy costs and obsolete inventory at hibernated sites 2.0 0.9 1.1 Pro
Slide 39: The leader in the Australian and New Zealand collision repair industry
SUPPLY HE AV Y MOTOR The leader in the ~3,200 ~220k Australian and Team members Recycled & new $426m parts supplied New Zealand collision Revenue & other per year ~280k ~7.5k income 6 months to repair industry December 2022 Vehicles Vehicles We have the biggest collision repair network repaired recl
Slide 40: Structure
Structure Partnerships Production Procurement Build commercial relationships for the long- Leverage the technical skills and industry expertise in the business Secure the quality term, based on trust and products needed to delivering industry- execute operations on leading value to all Deliver opera
Slide 41: Executive Team
Executive Team Carl Bizon CEO & Executive Director Alexandra Holston Mathew Cooper Geoff Trumbull Andrew Mair Janelle Leonard Scott Lancaster Director Investor Group Chief Group Chief Group Chief Group Chief Group Chief Relations Operating Officer Financial Officer Commercial Officer People Officer
Slide 42: AMA Group Board
AMA Group Board Anthony Day Carl Bizon Chair CEO and Executive Director Simon Moore Paul Ruiz Kyle Loades Non-Executive Director Non-Executive Director Non-Executive Director Caroline Waldron Talbot Babineau Non-Executive Director Non-Executive Director 42
Slide 43: AMA GROUP AS
AMA GROUP AS
Slide 44: amagroupltd.com
AMA Group Limited ABN 50 113 883 560 Level 13, 484 St Kilda Road Melbourne, VIC 3004 amagroupltd.com