Amotiv Limited · ASX:AOV
Amotiv — GUD Holdings — UBS Australasia Conference 2017
17 slides from Amotiv's conference presentation, November 2017
Slide 1: UBS Australasia Conference
UBS Australasia Conference November 2017 Jonathan Ling Managing Director GUD Holdings Limited
Slide 2: The GUD group
GUD HOLDINGS The GUD group Automotive Davey Oates • Automotive filters • Automotive lighting and • Household and farm • Consumer and • Heavy duty filters accessories water pumps professional • Fuel pumps • Battery maintenance • Rainwater harvesting cleaning hardware • Ignition coils and power produc
Slide 3: FY17 result key points
GUD HOLDINGS FY17 result key points Reported NPAT result of ($7.3 m) compared with ($43.0 m) previously • Reported NPAT from continuing operations up 45% to $51.5 m • Discontinued operations contributed a loss of ($58.9 m) Reported EBIT from continuing operations up 18% to $83.2 m from $70.2 m •
Slide 4: FY18 announcement
GUD HOLDINGS FY18 announcement Sale of Oates to Freudenberg for around $80 m • Conditional on ACCC approval • Expect completion Q3 2018 Page 4
Slide 5: Financial summary
GUD HOLDINGS Financial summary $ million FY16 FY17 % Change Continuing operations Revenue 409.3 426.3 4% Automotive revenue growth Underlying EBITDA 85.5 87.7 3% of 11% offset by small Depreciation and Amortisation 3.7 4.1 10% declines in Davey and Oates Underlying EBIT 81.8 83.6 2% Net Finance Expe
Slide 6: Discontinued operations
GUD HOLDINGS Discontinued operations Dexion and Lock Focus reclassified as discontinued operations for FY16 and FY17 Dexion sold on 1st June 2017 for total estimated consideration of $12.2 m Lock Focus sold on 1st December 2016 for consideration of $4.9 m NPAT loss in FY17 of $58.9 m consist
Slide 7: Discontinued operations (continued)
GUD HOLDINGS Discontinued operations (continued) Oates to be reclassified as discontinued operation for FY18 • Cash consideration around $80 m • Settlement Q3 FY18 • Book value around $30 m • Book profit around $50 m Page 7
Slide 8: Cash generation and financial position
GUD HOLDINGS Cash generation and financial position Cash flow from operating activities of $45 m down from $70 m previously • Dexion related effects included an operating loss, higher working capital and costs associated with the sale • Higher working capital in the Automotive business supporting
Slide 9: Current GUD group structure
GUD HOLDINGS Current GUD group structure GUD Holdings Automotive Davey Ryco BWI Wesfil Griffiths IM Group Equipment Page 9
Slide 10: Reshaped portfolio structure
GUD HOLDINGS Reshaped portfolio structure Share of Revenue Share of Operational EBIT* FY16 FY17 FY16 FY17 Automotive 56% 60% 75% 81% Davey 26% 24% 14% 10% Oates 18% 16% 11% 9% * Operational EBIT is underlying EBIT before unallocated costs Automotive is the principal contributor to both revenue and
Slide 11: Automotive
GUD HOLDINGS Automotive Each business in Automotive continues to contribute strong organic growth • Offset partly by BWI product recall costs of $500k New products and improved market share underpinned growth Total sales of $7 m and profit contribution of $1.8 m in FY17 from acquisitions of GE
Slide 12: Growth drivers in Automotive segment
GUD HOLDINGS Growth drivers in Automotive segment 1. BWI • Full year contribution from new Narva products introduced with 2016 catalogue • Initial contribution from new Projecta products introduced with 2017 catalogue • Commenced activities to grow share in identified growth segments 2. Ryco • 400 n
Slide 13: FY17 Automotive acquisitions
GUD HOLDINGS FY17 Automotive acquisitions 1. Griffiths Equipment Limited • New Zealand-based, established 1960, acquired 1st October 2016 • Initial consideration of $7.3 m paid ($1.8 m contingent consideration earned and paid) • Sources and sells a broad range of automotive accessory products • Majo
Slide 14: Davey
GUD HOLDINGS Davey Demand in most water market segments across the industry declined due to poor seasonal conditions EBIT decline due to margin loss from lower sales and inflationary overhead costs increases Dependence on seasonality being addressed through innovation with the launch of new no
Slide 15: Oates
GUD HOLDINGS Oates Sales decline due to closure of Masters and Oates withdrawal from Woolworths – sales to commercial customers increased over the prior year EBIT impacted by sales decline and negative currency effect due to inability to achieve price increases in retail segment New CEO refocu
Slide 16: Outlook
GUD HOLDINGS Outlook Further improvement in underlying financial performance expected in 2017-18 as a result of: • New part numbers, new products and customer gains in Ryco • New products, new segments and full year benefit from Projecta product introductions at BWI • Continuation of steady growth
Slide 17: GUD Holdings Limited
GUD Holdings Limited UBS Australasia Conference November 2017