Autostore Holdings Ltd. · OSL:AUTO
Autostore — Investor Day (September 2024)
83 slides from Autostore's investor day presentation, Sep 17, 2024
Slide 1: Capital Markets Day September 2024
a AutoStore Capital Markets Day September 18 CMD 2024 oe Co
Slide 2: Disclaimer
2 Disclaimer Certain statements included in this presentation includes operates, such as but not limited to the Group's expansion in forward-looking statements that reflect the Company's current existing and entry into new markets in the future. views with respect to future events and financial and
Slide 3: Welcome to AutoStore's 2024 CMD
Welcome to AutoStore's 2024 CMD Hiva Flåskjer SVP Investor Relations
Slide 4: Today's presenters
Mats Hovland Vikse Paul Harrison Israel Losada Salvador Parth Joshi Hiva Flåskjer Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Product Officer SVP Investor Relations Today’s presenters
Slide 5: Program
Start Time Section Speaker Program 13:00 Welcome and introduction Short-term outlook Hiva Flåskjer SVP Investor Relations Mats Hovland Vikse 13:05 Chief Executive Officer Q&A 13:25 AutoStore – the engine Mats Hovland Vikse 13:35 of every fulfilment journey Chief Executive Officer Massive Mats Hovlan
Slide 6: Short-term outlook
Short-term outlook Mats Hovland Vikse Chief Executive Officer
Slide 7: Challenging market impacts short-term performance
7 Challenging market impacts short- term performance Light AS/RS1 market2 AutoStore revenues Market in $bn Revenue in $m CAGR CAGR -11% to -13% +2% to -0.3% CAGR +18% 6.9 575-600 584 5.2-5.5 CAGR +44% 4.2 195 2019 2022 2024E 2019 2022 2024E Softening economic growth Slowing decision making Higher in
Slide 8: Market observations
8 Market observations Observations Take away Standard segment, represents ~50% of light AS/RS market (av. project size $1.4m) Huge market opportunity remains in standard High throughput, represents ~40% of light AS/RS market (av. Market segments project size c$10m, ~90% growth in order intake1) Rece
Slide 9: Quarterly forecasting
9 Quarterly forecasting Current market backdrop makes forecasting challenging Order intake 2024E revenue of $575-600m $m $m 183 164 152 164 154 148-168 137 141 138 135-140 Q1’24 Q2’24 Q3’24E Q4’24E Backlog -7% -12% -3% to -7% -5% to -16% $m YoY development 489 464 492 479 452 447 Timing of customer
Slide 10: Investing for growth and protecting our margins
10 Investing for growth and protecting our margins High and sustainable gross margins support investment for growth Growth investments $m Standardized nature of solutions ensure high and sustainable margins +17% Continuing investments in our go-to-market model to unlock future growth Product & R&D E
Slide 11: Improving our execution in any market environment
11 Improving our execution in any market environment 01 Commercial focus 02 Incentives 03 Installed base upsell 04 Partner plans ✓ Commercial functions reporting ✓ Launched incentives for sales ✓ Leveraging operational data ✓ Targeted actions and priorities directly to CEO team for driving conversio
Slide 12: Actions in short term also complement medium term strategy
12 Actions in short term also complement medium term strategy Key takeaways for today: 01 Light AS/RS market will continue to benefit from strong structural tailwinds. Cubic storage offers unique advantages 02 AutoStore is the #1 in cubic storage with largest installed base of global customers 03 We
Slide 13: Q&A
Q&A
Slide 14: AutoStore – the engine of every fulfilment journey
AutoStore – the engine of every fulfilment journey Mats Hovland Vikse Chief Executive Officer
Slide 15: Our history and vision
15 Our history and vision Engine of every fulfillment journey 1990s AutoStore was founded by the Hatteland Group 2000s Full commercialization of AutoStore as a stand -alone business Proven global leader 2016 Surpassed 100 customers Cutting edge in software and robotics 2020 Router software launch, t
Slide 16: AutoStore transformed the industry with four simple principles
16 AutoStore transformed the industry with four simple principles Innovation Standardization Reliability Scalability
Slide 17: AutoStore continues to deliver with increased scale and resilience
17 AutoStore continues to deliver with increased scale and resilience At IPO1 CMD 2022 Today Unique financial profile Revenue2 $182m Revenue 2 $387m Revenue 2 $613m Gross margin2 71% Gross margin 2 66% Gross margin 2 71% Adj. EBITDA margin2 51% Adj. EBITDA margin2 47% Adj. EBITDA margin2 48% Scalabi
Slide 18: Pure play investment in secular global megatrends
18 Pure play investment in secular global megatrends: e-commerce & automation Rapidly growing e-commerce industry Changing consumer demands e-commerce represents ~22% of global Same-day delivery expectations consumer spending1 and is expected to requiring fulfillment centers in close represent ~25%
Slide 19: Software powered cubic storage solution offering unmatched customer value
19 Software powered cubic storage solution offering unmatched customer value Throughput SKU Range Capacity Density Scalability / Modularity Accuracy Reliability Up to Up to 650 90% 1M+ 90%+ Modular 99.9% 99.7% Bins per hour1 of products Max. # of Space utilization Applicable to Picking Uptime (addre
Slide 20: Massive market opportunity
Massive market opportunity Mats Hovland Vikse Chief Executive Officer
Slide 21: Massive market opportunity…
Massive market opportunity… 21 Warehouse automation market still untapped Megatrends driving adoption e-commerce penetration +11 ppts AS/RS1 Theoretical addressable market at 100% penetration >$600bn global e-commerce share of total retail (%) ~25% 14% Light AS/RS2 Theoretical addressable market3 ~$
Slide 22: …drives long term expansion in the light AS/RS market
…drives long term expansion in the 22 light AS/RS market Light AS/RS market growth outlook Market in $bn Key Drivers CAGR ‘28-’32 Comments CAGR 14.3 Warehouse Warehouse unit growth expected +12% ~2-4pp to continue slightly faster than GDP growth CAGR Volume +16% CAGR -16% +18% 9.1 -5-10% +2-6% Light
Slide 23: Light AS/RS market served by four solutions…
23 Light AS/RS market served by four solutions… Performance of light AS/RS solutions in the market Cubic storage Shuttle AMR1/AGV2 Miniload Solution Similar to shuttle providers given solution overlap Solution providers Source: Company information, Premier third-party consultant 1 Autonomous mobile
Slide 24: …cubic emerging as the winning technology
…cubic emerging as the winning technology 24 Expanding market share for cubic storage system Cubic right-to-win Cubic % of light AS/RS SAM Low to high throughput requests Larger SKU density, high velocity items 2021 2023 High density needs / limited space primary use case 8% 13% Flexibility and scal
Slide 25: AutoStore is the clear market leader at scale in cubic storage
25 AutoStore is the clear market leader at scale in cubic storage Total Installations (%) >97%1 <3% AutoStore Other Players 2 Source: Company information, Premier third-party consultant 1 As per end of Q2’24 includes installed base and backlog 2 Including Ocado and Attabotics
Slide 26: Delivers solutions for all end markets and all types of warehouses
26 Delivers solutions for all end markets and all types of warehouses AutoStore's massive light AS/RS theoretical addressable market Market in $bn ~$400bn Type of warehouses Retail/e-commerce Grocery Diversified Grocery Diversified Large Small Light AS/RS Distribution Centers Centralized Fulfillment
Slide 27: AutoStore is uniquely positioned to capture massive market opportunity
27 AutoStore is uniquely positioned to capture massive market opportunity ~$400bn TAM High growth Winning solution Massive light AS/RS TAM driven The market is still at its infancy and Cubic is emerging as the clear winning by secular growth drivers expected to grow 14% annually technology within li
Slide 28: AutoStore is in pole position in this market
AutoStore is in pole position in this market Paul Harrison Chief Financial Officer
Slide 29: AutoStore is a global technology champion
AutoStore is a global technology champion Unique customers Systems installed1 1,100 1,550 Unique customers CMD May 2024 Multiple end markets Global partner network Proprietary software Source: Company information 1 As per end of Q2 2024, includes installed base and backlog
Slide 30: Powering competitive advantage delivering superior customer ROI
30 Powering competitive advantage delivering superior customer ROI... Light AS/RS solutions Key performance criteria Shuttle AMR Miniload Share of light AS/RS market1 ~11% ~75% ~10% ~3% Market share growth Throughput rate SKU count2 Density / space constraints Scalability / modularity SKU size / sha
Slide 31: AutoStore consistently outperforms the light AS/RS market
31 AutoStore consistently outperforms the light AS/RS market AutoStore growth has outpaced the market AutoStore revenue in $m • AutoStore has grown by >7x the light ASRS market CAGR 646 • Recent slowdown impacted by AutoStore 53% 584 2021/2022 pull forward effect Market 7%1 • Poised to accelerate in
Slide 32: Puma
37 Puma Retail Speed to Market: from 2-week delivery on peak days to same-day delivery 99% order accuracy, while reducing labor and training needs 1 million units shipped per month Improved employee satisfaction due to the technology driven and "We are very proud of the speed simple operation of the
Slide 33: Multiple levers for growth
33 Multiple levers for growth Future 04 Product innovation 03 Expansion of superior go-to-market strategy 02 Playing to our strengths – win in high 01 throughput Land and expand business model Today Sources: Company information
Slide 34: Land and expand business model
34 01 Land and expand business model Large growing customer base making repeat purchases over time… …With great room to grow within current customer base Number of customers (one customer can have multiple installations) ~70% 1,100 More than 500 new customers 1,000 gained over the past three years,
Slide 35: Land and expand business model
35 01 Land and expand business model
Slide 36: Land and expand business model
36 01 Land and expand business model Customer behavior driving repeat purchases Continuously growing with customers through expansions and new sites (3PL) Site extensions Revenue, $m 37 Initial installation Total installed 37x Additional sites 1 12 28 1029 1 Software (Recurring revenue) Initial inst
Slide 37: Playing to our strengths – win in high throughput
02 Playing to our strengths – win in high throughput 37 What do we mean by high throughput? Why is it so attractive? >10k Bins/hour1 Centralized hub facilities Market size of ~$2.2 bn2, with high expected growth rate AutoStore holds only ~5% share of high throughput market vs. right-to-win e-commerc
Slide 38: Geodis
38 Geodis Retail Current throughput of 120,000 retail units per day, 60,000 e-commerce units per day / with a peak of up to 250,000 units per day. The business case was to develop a true omni-channel solutions that is flexible and scalable for the future Achieved a reduction of 30% in operating cost
Slide 39: Expansion of superior go-to-market strategy
39 03 Expansion of superior go-to-market strategy Our asset-light go-to-market model has been the key to our success Our model gives us the best of both worlds End customer Partner led model… …Strengthened by in-house capabilities Partner sales In-house BDMs1 Broad global reach Build strategic relat
Slide 40: Product Innovation
40 04 Product Innovation R&D investment 2021 Q2 2024 LTM Future Continued $28m1 $43m2 investment Source: Company information 1 Cash outflow of development expenditures 2 Cash outflow of development expenditures and purchase of intangible assets
Slide 41: Key takeaways
41 Key takeaways 01 Differentiated and winning solution Large and diversified 02 customer base Clear focus 03 on sweet spots The best 04 market access Source: Company information
Slide 42: Q&A
Q&A
Slide 43: Customer perspective: Best Buy
Customer perspective: Best Buy Mark Irvin Chief Supply Chain Officer, Best Buy
Slide 44: Mark Irvin
44 Mark Irvin Chief Supply Chain Officer, Best Buy
Slide 45: Best Buy's Supply Chain
45 Best Buy’s Supply Chain.
Slide 46: AutoStore journey
46 Autostore journey 2018 – Launch first two sites Dinuba, CA. Compton, CA. 2019 – Launch five sites Dublin, GA. Nichols, NY. Findlay, OH. Chicago, IL. Piscataway, NJ. 2020 – COVID disruption + Final US Site Launch Ardmore, OK. 2025 – Launch first Canada site Brampton, Ontario.
Slide 47: We win together when:
47 Previous pick mod We win together when: • Total Network: • Bots — 1,239 • Bins — 765,000 • We run at 99%+ uptime across the network. • Employees see it as better way to do their work.
Slide 48: 48
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Slide 49: Break
Break
Slide 50: Program
Start Time Section Speaker Program 13:00 Welcome and introduction Short-term outlook Hiva Flåskjer SVP Investor Relations Mats Hovland Vikse 13:05 Chief Executive Officer Q&A 13:25 AutoStore – the engine Mats Hovland Vikse 13:35 of every fulfilment journey Chief Executive Officer Massive Mats Hovlan
Slide 51: Optimized operations drive profitability
Optimized operations drive profitability Israel Losada Salvador Chief Operating Officer
Slide 52: Business designed for scale, margin and competitiveness
52 Business designed for scale, margin and competitiveness Business model and operating principles Enables best-in-class, sustainable margins Gross margin Highly standardized product set Standardization No customization, saving engineering hours Partner-based 73% 73% go-to-market Focused on the most
Slide 53: Powerful operational engine unlocking profitable, accelerated growth
53 Powerful operational engine unlocking profitable, accelerated growth Expanded production capabilities Diversified aluminum supply Doubling of bin production partners Production facility sqm # of aluminum suppliers # Bin production sites and suppliers 4 min Thailand Production sites Poland Supplie
Slide 54: Strengthened production capabilities through de-risking
54 Strengthened production capabilities through de-risking Increasing our operational resilience to external factors to ensure we can cater to future demand Drastically reducing lead times We have addressed the challenges Production Lead time, # of weeks in 2022 and prepared for the future 36 We are
Slide 55: Our supply chain strategy is creating a positive impact
55 Our supply chain strategy is creating a positive impact for our customers, suppliers and shareholders What we promised at the CMD in 2022… …we delivered on, and will continue to improve Right place Zero shutdowns in production to date ✓ Right time Lead times improving ✓ Right price Improved custo
Slide 56: Global robotics innovator powered by industry leading systems
Global robotics innovator powered by industry leading systems Parth Joshi Chief Product Officer
Slide 57: Strengthening the organization for next leg of growth journey
57 Strengthening the organization for next leg of growth journey Parth Joshi Solve complex customer challenges Chief Product Officer through enhanced scale, speed, and Joined July 2024 reliability Unlock new markets through innovation and Experience product developments Deliver continuous value to o
Slide 58: Innovation continues to be at the very core of our DNA
58 Innovation continues to be at the very core of our DNA Early days Current Staying ahead Best in class system that grows along the A few hundred live robots 70,000 live robots customer journey Direct customer centric feedback loop to drive Max 50 robots per site +1,000 robots per site innovation C
Slide 59: Our software is in center of the entire customer journey
59 Our software is in center of the entire customer journey 01 Pre-Sales 02 Integration 03 Operation 04 Growth Automation Solution System System Expansion & Journey Steps Design Integration Operation Optimization AS software offering Simulation and design tools Pio WCS1 Qubit X-handler Router Unify
Slide 60: Cube control software powered through advanced analytics
AutoStore’s cube control software is 60 powered through advanced analytics and continuously improved every year Data enables dynamic operations to 46,000 >95% Reduction in potential system stops meet changing needs Orchestrates and runs automatic procedures to improve uptime Continual data feed to m
Slide 61: Medline
61 Medline Healthcare First US implementation of Autostore (live in 2013) – now have 20 AutoStore systems implemented across the network An improvement in pick rate of 2 to 4x each time an AutoStore was implemented Ability to provide next-day delivery to 95% of the U.S. “We like Router because it re
Slide 62: Large install base provides access to huge data set
62 Large install base provides access to huge data set and optimization of our technology Number of unique customers Number of installations 1,550 1,400 1,150 1,100 1,000 800 692 512 474 386 365 305 264 229 172 196 117 132 72 57 84 47 2014 1H 2024 2014 1H 2024 Source: Company information
Slide 63: Boozt
63 Boozt Retail At launch in 2017, Boozt’s AutoStore system included 50,000 Bins and just 21 Robots Following a series of annual improvements and four extensions, the system has come to consist of 3 Grids, 1.2 million Bins, 294 Port, and 1,150 R5 Robots 190,000 items processed daily and peak order f
Slide 64: Continuous updates and new innovations
64 Continuously expanding use-cases and improvements through updates and new product launches Software 2017 2018 2019 2020 2021 2022 2023 2024 Quarterly software releases X-Handler AI software AutoStore Router Cloud simulator QubIt first released first released first released first released & Unify
Slide 65: R5 Pro Robot
65 R5 Pro Robot & cube control software Increased productivity ~50k b/h 24/7 operations Source: Company information
Slide 66: The Grid
66 The Grid Increased grid height to 6m Improves storage capacity by 12.5% Source: Company information
Slide 67: Multi-temperature solution
67 Multi-temperature solution One grid, multiple temperature zones: Chilled Frozen Source: Company information
Slide 68: Pio P100
68 Pio P100 OpEx Warehouse solution for SMB market Simple integration & installation in < 1 week Source: Company information
Slide 69: What's next?
What’s next? 69 Clear roadmap with what we are focusing on New and incremental improvements across the hardware Maximizing storage capacity and efficiency Grid and cube Drive financial efficiencies through cost reductions Expand software capabilities and improve performance Continuous R&D focus both
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Slide 71: Fireside chat
Fireside chat John Gallemore Mats Hovland Vikse Chief Operating Officer, THG Chief Executive Officer
Slide 72: Superior financial performance
Superior financial performance Paul Harrison Chief Financial Officer
Slide 73: Strong track record of profitable growth
73 Strong track record of profitable growth Revenue growth1 Gross profit1 Adj. EBITDA1 Simplified free cash flow1, 2 $m $m $m $m +237% +233% +218% +213% 71% 66% 71% 51% 47% 48% 79% 79% 77% 232 613 433 296 387 141 253 180 182 130 93 74 IPO CMD 2022 CMD 2024 IPO CMD 2022 CMD 2024 IPO CMD 2022 CMD 2024
Slide 74: Medium-term financial envelope – revenue
74 Medium-term financial envelope – revenue Strong growth, driven by powerful megatrends is expected to continue to drive our performance in the medium-term Light AS/RS Cubic AutoStore’s market growth penetration right to win AutoStore is positioned to ~141% x + = create value and generate profitabl
Slide 75: Record high pipeline and solid backlog supports underlying demand
75 Record high pipeline and solid backlog supports underlying demand Total pipeline value Total backlog $bn Pitched portion $m Large projects ($5m+) 6.9 ~90% Increase in pitched value1 487 478 4.8 ~4,300+ Projects in pipeline 27% 39% 27% 43% ~2,900+ Unique customers in pipeline CMD 2022 CMD 2024 CMD
Slide 76: Medium-term financial envelope backed by strong margin profile
76 Medium-term financial envelope backed by strong margin profile High sustainable gross margin… …Results in high adj. EBITDA margins after investment back into growth initiatives Gross margin Adjusted EBITDA 73% 73% 68% 69% 68% 69% 67% 68% 68% 69% 66% 67% 67% 67% 66% 66% 64% 63% 62% 61% 59% 57% 57%
Slide 77: Cash conversion remains robust with ample space for investments
77 Cash conversion remains robust with ample space for continued investments Committed to innovation and growth 82% 83% 81% 80% 79% High and stable FCF conversion Significant investment in R&D 11% 11% to fund product pipeline 7% 8% 7% 2020 2021 2022 2023 LTM Q2 2024 FCF conversion1 Total capex % of
Slide 78: Current leverage levels in combination with FCF generation gives significant firepower
78 Current leverage levels in combination with FCF generation gives significant firepower Net debt1 / LTM Adj. EBITDA Significant debt capacity 1.0x Net debt / LTM Adj. EBITDA well below target of 2x 0.8x 0.8x 0.8x 0.8x Continued deleveraging driven by strong cash flow and increasing EBITDA 0.7x Q1'
Slide 79: Capital allocation priorities supporting profitable and sustainable growth
79 Capital allocation priorities supporting profitable and sustainable growth Reinvest in business to support 01 organic growth and continue defining the industry with innovation Maintain flexibility for strategic M&A, 02 incl. technology and market expansion Options on shareholder return, 03 buybac
Slide 80: Q&A
Q&A
Slide 81: Wrap up
Wrap up Mats Hovland Vikse Chief Executive Officer
Slide 82: Key takeaways
82 Key takeaways 01 Massive under-penetrated market driven by megatrends 02 Global #1 in cubic storage with largest install base of global customers 03 Innovation engrained in AutoStore's DNA 04 Multiple ways to win 05 Strong financial profile supported by product standardization
Slide 83: AutoStore
AutoStore