Amotiv Limited · ASX:AOV
Amotiv — Investor Day (May 2024)
78 slides from Amotiv's investor day presentation, May 14, 2024
Slide 1: Investor Day Presentation
14 May 2024 Manager Company Announcements ASX Limited Level 4, 20 Bridge Street SYDNEY NSW 2000 Investor Day Presentation Please find attached the presentation slides for GUD’s Investor Day to be held tomorrow, Wednesday, 15 May 2024. For inquiries: Graeme Whickman Managing Director & Chief Executiv
Slide 2: GUD Holdings Limited Investor Day 2024
GUD Holdings Limited Investor Day 2024 Graeme Whickman, CEO and MD Martin Fraser, CFO 15 May 2024
Slide 3: 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 which is current as at the date of this presentation. The information in
Slide 4: Schedule
Schedule Groups Start Group A (Blue) Start Group B (Green) To accommodate the Cruisemaster Arrive for registration Arrive for registration 9.00am 9.00am tutorial and the tour of the AutoPacific Light breakfast served Light breakfast served Group (APG) facility, we have split 9.30am Introduction and
Slide 5: Contents
Contents Group Overview 5 Graeme Whickman, Chief Executive Officer and MD, GUD Holdings 4WD Accessories and Trailering 18 Jason Kieseker, Divisional CEO, 4WD Accessories and Trailering Lighting, Power and Electrical 36 George Davies, Divisional CEO, Lighting, Power and Electrical Electric Vehicles 5
Slide 6: Group Overview
Group Overview Graeme Whickman, CEO and MD 5
Slide 7: GUD Group – Key dimensions
GUD Group – Key dimensions Revenue Profile Key Dimensions and Geographic Footprint Revenue profile by Segment (FY23)1 c. 917m c. 1,900 40 16 32% 37% FY23 revenue Employees3 sites manufacturing sites Powertrain & 4WD Accessories Undercar & Trailering Sweden China 31% South Korea Brisbane Lighting, Po
Slide 8: GUD Group – Key messages
GUD Group – Key messages Leading brands with Diversified Auto pure play Divisional structure Proven financial discipline strong market positions serving large, resilient and positions the Group well to supported by strong and underpinned by increased defensive TAMs drive long term growth flexible ba
Slide 9: Automotive 'pure play' with clear strategic imperatives
Automotive ‘pure play’ with clear strategic imperatives 4WD Accessories Lighting, Power Powertrain Undercar & Trailering & Electrical 8
Slide 10: Progress on FY25 targets
Progress on FY25 targets – to diversify and accelerate growth in a sustainable way Highlights Safety: Below lost-time industry average1 Engagement: Up 4pp, within 3 pp of Top Quartile2 Revenue: Approaching $1b3 Margin: ~20% in H1 FY24 Non-ICE: 75% Non-ICE revenue in FY23 APCO Packaging: Achieved Lev
Slide 11: Revenue and EBITA growth – total and organic
Revenue and EBITA growth – total and organic Revenue driven by consistent organic growth and acquisitions Underlying EBITA1 growth net of step change in investment 1,000 23% CAGR 200 17% CAGR 900 175 800 150 700 600 125 500 100 9% CAGR4 10% CAGR 400 75 300 50 200 100 25 0 0 FY18 FY19 FY20 FY21 FY22
Slide 12: Building a stronger, more diversified business
Building a stronger, more diversified business Increased PD1 spend is supporting future growth… …including expansion into new geographies …and the revenue profile is increasingly ICE agnostic 1,000 15% 80% 35 3.3% +300% +14pp 75% Revenue ($m) 30 3.2% 800 75% 25 3.1% 10% Spend ($m) 20 3.0% 600 70% 15
Slide 13: Portfolio changes resulting in an Auto pure play
Portfolio changes resulting in an Auto pure play with access to key growth corridors TIMELINE Sep 2023 GUD – Automotive Pure Play Davey divestment Divestment of Davey and acquisition profile realises GUD’s automotive pure-play ambition 2020 2021 2022 2023 2024 Feb 2021 Jan 2022 Nov 2022 Jun 2022 Mar
Slide 14: New divisional structure balances resilience and growth
New divisional structure balances resilience and growth Powertrain and Undercar Lighting, Power and Electrical 4WD Accessories and Trailering Division Division Division 13
Slide 15: GUD's addressable market is expanding as it diversifies
GUD’s addressable market is expanding as it diversifies Hybrid Battery Repair EV Battery Suspension Repair Diversification of product Couplings categories unlocks new Towing EV growth corridors and Frontal TRAILERING reinforces resilience Protection Forward lighting Electronics Strobes 4WD & beacons
Slide 16: Focused on strategic imperatives to drive growth
Focused on strategic imperatives to drive growth within existing portfolio Strategic Imperatives 01. Divisional optimisation • New customer acquisition 4WD Accessories & Trailering • Increased share of wallet Be the leader in 4WD Accessories and Trailering in Significant • New products and category
Slide 17: Next horizon – Aspirations
Next horizon – Aspirations Drive the … with a safe … building a stronger, … with consistent … and high quality automotive and engaged more resilient growth… financial and pure play… team… company… sustainability results Deliver the six strategic Strive for zero harm and Continue to diversify revenue
Slide 18: Proposed name change to Amotiv
A powerful inflection point in GUD’s long history is reflected in proposed name change Why are we doing this? GUD is at an important inflection point having operated as a diversified industry portfolio, we are now an Automotive pureplay Behind the name Amotiv ASX:AOV • Derived from a creative play o
Slide 19: 4WD Accessories and Trailering
4WD Accessories and Trailering Jason Kieseker, Divisional CEO 18
Slide 20: 4WD Accessories and Trailering division – Key dimensions
4WD Accessories and Trailering division – Key dimensions Key Dimensions Geographic Footprint Establishing manufacturing and logistics presence in South Africa c. 330m c. 930 Pretoria, SA FY23 revenue employees APG Chon Buri (Thailand) Manufacturing Hub 17 8 OE support and sourcing Tokyo, Japan sites
Slide 21: 4WD accessories and trailering present a strong and growing market
4WD accessories and trailering present a strong and growing market South Drivers Africa USA • New Vehicle Sales (NVS) (overlanding) • Pick-up and SUV popularity/sales mix Bullbars, sports, and nudge bars • Lifestyle trends Wheel mounts, − Aging population – ‘grey nomads’ INTERNATIONAL racks − Off-ro
Slide 22: Building an integrated leader in 4WD Accessories and Trailering
Building an integrated leader in 4WD Accessories and Trailering Competitive Advantage DEEP OE PARTNERSHIPS LEGENDARY BRANDS MANUFACTURING EXPERTISE ENGINEERING INNOVATION Build share-of-wallet with OEM partners Leverage towing and suspension Sweat global manufacturing asset Invest in best-in-class d
Slide 23: Deep OE partnerships
1 DEEP OE PARTNERSHIPS Long-standing ‘sticky’ relationships with Bluechip OEMs and national retailers Interplay between vehicle OEM and Aftermarket Factory fit Dealer fit Aftermarket Longstanding and diverse relationships underpinned by brand, quality and trust Thailand • APG’s top 5 customers have
Slide 24: Strong OE partnerships driving functional accessories growth
1 DEEP OE PARTNERSHIPS Strong OE partnerships driving functional accessories growth Growing share of wallet through sticky customer relationships Driving OE Functional Accessories customer and revenue growth Nissan Navara functional accessories package • Significant additional content win on the nex
Slide 25: Strategic, low-risk expansion into South Africa
2 DEEP OE PARTNERSHIPS Strategic, low-risk expansion into South Africa supporting OE customers VW Amarok and Ford Ranger Ford/VW invitation for Functional Accessories supply into South Africa (SA) • Market entry backed by OE program win and multi-year supply agreement • Sports bar supply for both Fo
Slide 26: SA vehicle models and market characteristics mirror Australia
2 DEEP OE PARTNERSHIPS SA vehicle models and market characteristics mirror Australia South Africa is a strong pick-up market… … with Hilux, Ranger and D-Max the top sellers… … and a car parc which mirrors ANZ 30% of new vehicle sales in SA are light commercial Like the Australian market, the Hilux,
Slide 27: South Africa is a key automotive manufacturing hub
2 DEEP OE PARTNERSHIPS South Africa is a key automotive manufacturing hub for global markets South Africa is a key manufacturing hub for automotive OEMs … … consistently growing production to 600k vehicles3 in 2023 … Gauteng • BMW, Nissan and Ford manufacturing plants South Africa Vehicle Production
Slide 28: Brand pull creates opportunities to grow distribution
3 LEGENDARY BRANDS Brand pull creates opportunities to grow distribution and customer base Portfolio of legendary brands for 4WD enthusiasts… … driving consumer pull through for fitment • Fully Equipped fitment centre network in NZ: 5 company-owned sites that deliver custom fit-outs for fleet, trade
Slide 29: Low-cost manufacturing boosting capacity and margin gains
4 MANUFACTURING EXPERTISE Low-cost manufacturing boosting capacity and delivering margin gains Thailand - high-volume, low-cost manufacturing supply chain Sweat the global manufacturing asset base, leveraging lower-cost manufacturing capacity Cruisemaster capacity boosted by Thailand production Chon
Slide 30: Invest in best-in-class design and engineering
5 ENGINEERING INNOVATION Invest in best-in-class design and engineering capabilities to drive innovation Leveraging a global R&D capability to service a global customer base Showcase: Lightweighting for improved fuel economy and battery range ECB is the leader in alloy bull bars • Alloy is lighter t
Slide 31: Cruisemaster leading the trend in off-road suspension
6 ENGINEERING INNOVATION Cruisemaster - leading the trend in off-road suspension and ‘game changing’ modular chassis Caravan Industry Characteristics and Trends The Cruisemaster competitive advantage 65% Cruisemaster Fragmented SME manufacturing base revenue1 Many small-scale family-owned businesses
Slide 32: Caravan product presents further growth opportunities
6 ENGINEERING INNOVATION Caravan product presents further growth opportunities 765K Caravans registered in Australia 30K Caravans Australia manufactured in MANY Brands active in the market; highly fragmented • 765,1501 caravans registered in in CY23, + 5.3% on pcp Caravan Production Volume Caravan a
Slide 33: Building active growth opportunities across 4 key paths to market
6 ENGINEERING INNOVATION Building active growth opportunities across 4 key paths to market Caravan suspension – Path to market 1 Caravan Manufacturers • Well-established channel supplying Australian caravan manufacturers APG Thailand • Implemented Melbourne-based logistics and sales team to service
Slide 34: Automotive OE share of wallet wins
Automotive OE share of wallet wins - a driver of medium-term earnings Reinforcing competencies… … build legendary brands… … and opportunities that drive medium-term earnings Competitive advantage anchored in deep 4WD Accessories and Trailering OE partnerships, manufacturing expertise Division brands
Slide 35: Scaling and diversifying
Scaling and diversifying Customers OE/AM Mix International Product (Qty of customers) (OE Rev Contribution) (Revenue % outside ANZ 2) (Non-towing revenue) Diversification of customer: Diversification of channel: Diversification of geography: Diversification of product: growing customer portfolio gre
Slide 36: 4WD Accessories and Trailering - Key messages
4WD Accessories and Trailering - Key messages The combined strength of Achieve incremental OE relationships, brands, Leverage unique Further consolidate growth through engineering innovation manufacturing footprint Cruisemaster’s leading continued share of wallet and manufacturing and R&D capability
Slide 37: Lighting, Power and Electrical
Lighting, Power and Electrical George Davies, Divisional CEO 36
Slide 38: Lighting, Power & Electrical (LPE) – Key dimensions
Lighting, Power & Electrical (LPE) – Key dimensions Key Dimensions Global Footprint c. 286m c. 500 FY23 revenue employees 9 6 sites Manufacturing sites Our Brands US EUROPE ASIA ANZ Rhode Island Stockholm Shanghai Melbourne Seattle London Seoul Brisbane Auckland 37
Slide 39: Hold a global leadership position in specialist Automotive Lighting
Hold a global leadership position in specialist Automotive Lighting, and expand vehicle Power Management internationally Competitive Advantage BRAND BUILDING POWERHOUSE BACKED DIVERSE AND ATTRACTIVE STRATEGIC GLOBAL FOOTPRINT BY PD/INNOVATION DNA CHANNEL MIX Diverse range of market-leading products
Slide 40: LPE expanded market presence and global market opportunity
Lighting, Power & Electrical expanded market presence and global market opportunity Asia Expanded TAM with Sweden market presence and Scandic Region ASIA & ROTW strong capability UK in multiple regions USA EMEA NORTH AMERICA Mainland Europe Latin America Australia Canada Middle East ANZ LIGHTING, P
Slide 41: Proven product development credentials with focus on IP ownership
1 BRAND AND INNOVATION Proven product development credentials with focus on IP ownership Continuously growing product development capabilities Increasing product differentiation through embedded tech • Industrial design • Focus on IP ownership • Mechanical and electrical engineering • Segmented bran
Slide 42: World class award-winning products for multi-region distribution
2 BRAND AND INNOVATION World class award-winning products developed for multi-region distribution Intelli-Start patented technology in Jump Intelli-IQ ecosystem of connected power Omen warning lights revolutionise installation starters delights customers products for upfitters • Lightweight portable
Slide 43: Broad diversification across aftermarket and OEM market segments
3 MARKET SEGMENT MIX Broad diversification across global aftermarket and OEM market segments Ability to service a broad range of segments de-risks exposure to sudden market shifts On Highway Off Highway 4WD & Overland Emergency Powersports Caravan & RV Marine Automotive, Bus, Truck, Construction, Ra
Slide 44: Building higher value and more resilient revenue streams
4 MARKET SEGMENT MIX Building higher value and more resilient revenue streams Reduced customer Building presence in Increasing exposure to Shift towards concentration additional markets offshore markets differentiated product (Top 3 customer % revenue) (Market revenue %) (Geographic revenue %) (Prod
Slide 45: Cross border collaborations unlocking product-market opportunities
5 FOOTPRINT Cross border collaborations unlocking mission critical product-market opportunities Mining & Industrial (US) Truck (Europe) Emergency (USA) Defence (Europe) • Expanding team to provide national • Strong customer relationships • Strategically aligned trade partner • Ukraine war driving de
Slide 46: Green shoots with lighting and power in US and Europe
6 FOOTPRINT Green shoots with lighting and power in US and Europe Product complementation strategy working in new geographies Customers are embracing the broader product portfolio • Target markets segmented through FY24 US new revenue • Existing customers in USA have embraced the wider product portf
Slide 47: Sweden creates a European Lighting beachhead
7 FOOTPRINT Sweden creates a European Lighting beachhead Rindab acquisition complements the Division’s lighting and power capabilities Established distributor of Vision X in Europe • Focus on lightbars with product range that extends to truck and bus camera and digital Revenue mix (% FY23 revenue) m
Slide 48: Caravan and RV presents a compelling growth corridor
7 FOOTPRINT Caravan and RV presents a compelling growth corridor Global appeal Caravan industry path to market – LPE • RV segment is a well-established market (c$50b USD) and forecast to grow at c.8%1 pa 30%+ until 2030 CAGR • Off grid trend for increasingly sophisticated power systems and low power
Slide 49: CES adds capability in customised solutions for caravan OEMs
7 FOOTPRINT CES adds capability in customised solutions for caravan OEMs CES augments LPE’s distribution to caravan OEMs Caravan Power Management System • Competency in the design and supply of custom-made electrical and power management • Lithium battery storage systems to caravan OEMs • Solar Pane
Slide 50: Leveraging global footprint to drive medium term earnings
8 FOOTPRINT Leveraging global footprint to drive medium term earnings Accelerating synergies between ANZ, Asia and North America Global footprint creates opportunity for revenue and cost synergies between geographies Product-Market Growth • Introduction of ANZ products into existing US and European
Slide 51: Lighting, Power and Electrical – Key messages
Lighting, Power and Electrical – Key messages Foundations laid for offshore greenfield A brand building strategy with beach Capitalise on the Drive revenue and cost powerhouse backed by heads established in the compelling growth synergies through cross PD/innovation DNA with US and Europe expanding
Slide 52: Electric Vehicles
Electric Vehicles Graeme Whickman / Dickson Leow
Slide 53: EV/Infinitev business – Key dimensions
EV/Infinitev business (within Powertrain and Undercar division) – Key dimensions Hybrid market in Australia up 50%+ vs pcp Key Dimensions • Ageing hybrid parc and rise of grey imports parc – favourable • Continued growth in hybrid EV uptake, notably in commercial passenger 15 2 vehicles (rideshare)
Slide 54: ICE vs electric vehicles: A product perspective
ICE vs electric vehicles: A product perspective EVs have fewer moving parts than ICE vehicles, but Category (sample) Value ICEV EV Comments the value per repair tends to be significantly higher • Wear and tear parts of the future are high-voltage components Engine parts $ No longer required and elec
Slide 55: EV potential addressable markets and existing GUD capability
EV potential addressable markets and existing GUD capability GUD businesses are ready to capture opportunities in the EV OEM and Aftermarket channels • The current opportunity in EVs is in battery lifecycle management services • Infinitev is the ‘one stop shop’ for all things battery for EV OEMs in
Slide 56: Batteries are at the heart of EV and the future Aftermarket
Batteries are at the heart of EV, and of the future Aftermarket Backed by cutting-edge R&D, Infinitev are creating a circular economy for EV batteries When a retired battery comes out of a vehicle, Infinitev deliver a range of services • SafetyCheck: physical and electrochemical inspection of the ba
Slide 57: Infinitev's OEM customer base is growing
Infinitev’s OEM customer base is growing OEMs face several EV battery challenges… … and Infinitev is their one-stop-shop… … resulting in early traction As EV adoption rises, attention turns to battery lifecycle Infinitev focuses on value-add engineering services and a Infinitev have MoU/contracts wi
Slide 58: Infinitev is investing today to capture the EV aftermarket
Infinitev is investing today to capture the EV aftermarket of tomorrow Pathway to profitability • Hybrid battery repair alone is profitable, but full EV repair lacks scale resulting in losses in the region of $2-3m p.a. until EV repair revenue builds • Growth to EV battery repairs drives a step chan
Slide 59: Group Financial Overview
Group Financial Overview Martin Fraser, CFO 58
Slide 60: The move to three new business segments
The move to three new business segments and existing ‘unallocated’ segment Segment reporting FY23 - Two business segments FY24 - Three business segments • GUD is moving to three new operating business segments plus the existing ‘unallocated’ 4WD Accessories Lighting, Power Powertrain APG Automotive
Slide 61: Business segments – financials and metrics
Business segments – financials and metrics 4WD Accessories and Trailering Lighting, Power and Electrical Powertrain and Undercar Strategic growth focus Revenue – FY23 ($M) 333.2 286.3 297.0 Organic Revenue CAGR – FY18 to FY24F 1 (6-year) N/A 6% 7% Total Revenue CAGR - FY18 to FY24F (6-year) N/A 14%
Slide 62: Disciplined investment to support long term growth
Disciplined investment to support long term growth Product development (PD) is driving organic growth Product development spend ($m) – 100% expensed • Step change in PD to FY24 estimate of c.$34m 40.0 − Support future growth strategy 35.0 − Enhance IP platform 30.0 − Serve new channels, customers an
Slide 63: Resetting the platform to support growth aspirations
Resetting the platform to support growth aspirations Corporate cost reset to support larger and more global group Corporate cost increase mostly driven by governance/compliance and cyber $m • Foundational investment stage largely complete (some annualisation in FY25) • Increase mostly a function of
Slide 64: Compelling debt cost and maturity profile
Compelling debt cost and maturity profile, with a conservative leverage range Largely fixed debt at compelling rates Maturity profile of Committed debt Interest profile in $m • 76% of gross debt balances fixed or hedged Other Pricoa • Fixed interest rate on long-term notes at an average rate of 3.6%
Slide 65: Key messages
Key messages Strong balance sheet that Disciplined investment to Segment changes reflect supports growth aspirations support long term growth divisional structure • Strong and flexible balance sheet with • Investment reset for future growth • Simpler, more aligned financial capacity to support futur
Slide 66: Acquisitions Update
Acquisitions Update Graeme Whickman, CEO and MD 65
Slide 67: 'The GUD way' grows acquisitions and makes them more profitable
‘The GUD way' grows acquisitions and makes them more profitable GUD has a track record of growing acquisitions and making Grow the multiple them more profitable • From small to medium/large • EBITA increased by factor 1.5x (+52%) BOOST • Unlock future-ready growth • Diversification within the sector
Slide 68: APG – Growth pathway
APG – Growth pathway Resetting business case revenue EBITA reconciliation to business case Future growth pathway Synergies2 Expect to Trailering deliver share beyond F.A share New of wallet original geographies business incl. South Stable Africa case OEMs Aust NVS + NZ recovery DEEP OE Build share-o
Slide 69: Trading Update and Guidance
Trading Update and Guidance Graeme Whickman, CEO and MD 68
Slide 70: Trading update and outlook
Trading update and outlook GUD provided the following trading update and FY24 guidance on 13 May 2024. Group FY24 underlying EBITA1 is in line with expectations and is forecast to be at least $193.5m Automotive (excluding APG) continues to trade well across all key business units reflecting ongoing
Slide 71: Conclusion
Conclusion Graeme Whickman, CEO and MD 70
Slide 72: GUD Group – Key messages
GUD Group – Key messages Leading brands with Diversified Auto pure play Divisional structure Proven financial discipline strong market positions serving large, resilient and positions the Group well to supported by strong and underpinned by increased defensive TAMs drive long term growth flexible ba
Slide 73: Next horizon – Aspirations
Next horizon – Aspirations Drive the … with a safe … building a stronger, … with consistent … and high quality automotive and engaged more resilient growth… financial and pure play… team… company… sustainability results Deliver the six strategic Strive for zero harm and Continue to diversify revenue
Slide 74: Appendix 1: Financial Segments
Appendix 1 Financial Segments 73
Slide 75: Segment table – Five-year view of restated segments
Segment table – Five-year view of restated segments Reportable segments ($M) FY19 FY20 FY21 FY22 FY23 Actual Actual Actual Actual Actual Total revenue 4WD & Trailering - - 28.7 195.8 333.2 Lighting, Power & Electrical 151.3 143.9 184.0 242.7 286.3 Powertrain & Undercar 178.7 186.8 230.7 270.0 297.0
Slide 76: Segment table – Restated FY23 note
Segment table – Restated FY23 note Previously Reported Restated Presentation Reportable segments Total 4WD Lighting, Total Continuing Discontinued Accessories Power and Powertrain & Continuing Discontinued Automotive APG Unallocated Operations Operations Total & Trailering Electical Undercar Unalloc
Slide 77: Appendix 2: Powertrain and Undercar
Appendix 2 Powertrain and Undercar 76
Slide 78: Powertrain & Undercar Division – Key dimensions
Powertrain & Undercar Division – Key dimensions Key Dimensions Geographic Footprint c. 297m c. 460 FY23 revenue employees USA ACS 13 2 DBA sites Manufacturing sites Townsville Wesfil Brisbane Wesfil Our Brands Newcastle Perth Wesfil Wesfil Sydney Adelaide Wesfil ACS DBA Wesfil Melbourne Ryco Aucklan