Rpm Automotive Group Ltd. · ASX:RPM
Rpm Automotive — Investor Day (May 2024)
73 slides from Rpm Automotive's investor day presentation, May 29, 2024
Slide 1: ASX cover letter: Investor Day Presentation – 29 May 2024
29 May 2024 Listing Manager Australian Securities Exchange 20 Bridge Street Sydney NSW 2000 Dear Sir Investor Day Presentation – 29 May 2024 Please find attached the Investor Day Presentation. You should note that there are a number of blank pages in the Presentation. The blank pages represent video
Slide 2: Investor Day 2024
INVESTOR DAY 2024 29 MAY 2024 RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 1
Slide 3: RPM AUTOMOTIVE GROUP LTD (ASX: RPM)
RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 2
Slide 4: Agenda
AGENDA Introduction – CEO - Guy Nicholls Leadership Team Presentations: • GM People and Culture/ESG – Rebecca Blacklaws • Tyre Division - GM Joe De Sensi Morning tea • Performance & Accessories – GM Brad Gilliland • Motor Sport – GM Tullio Salta • Tyre Recycling - ED & CCO Clive Finkelstein • WHG Te
Slide 5: Introduction
INTRODUCTION Guy Nicholls CEO RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 4
Slide 6: Board of Directors
BOARD OF DIRECTORS Lawrence Jaffe Guy Nicholls Grant Carman Clive Finkelstein Non-Executive Director Chief Executive Officer Non-Executive Director COO/Executive Director Co-founder of RPM Over 30 years’ experience in Senior Chartered accountant with over 30 Co-founder of RPM Executive roles in the
Slide 7: Executive Leadership Team
EXECUTIVE LEADERSHIP TEAM RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 6
Slide 8: Three Core Strategies to Drive Shareholder Value
THREE CORE STRATEGIES TO DRIVE SHAREHOLDER VALUE Operating leverage Strategic initiatives Vertical integration • Optimising latent capacity in • Tyre recycling to leverage existing • End-to-end ownership of network to increase throughput at wholesale platform – reverse the supply chain low increment
Slide 9: People & Culture ESG
PEOPLE & CULTURE ESG Rebecca Blacklaws GM Group People and Culture RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 8
Slide 10: Roles and Responsibilities
ROLES AND RESPONSIBLITIES Turnover Rate 3% Lost Time Injury Frequency Rate 10.25 Median Age 42.5 Female Employees 15% Women in Leadership 20% Gender Pay Gap 0% RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 9
Slide 11: Current Initiatives
CURRENT INITIATIVES Compliance Culture Simplify & Optimise • Refresh of company policies, • Embedded safety culture in all • Centralise to maximise group procedures and contracts to align workplace practices management benefits in shared with legislation services • Employee retention strategies • Co
Slide 12: Growth Drivers – Our People
GROWTH DRIVERS – OUR PEOPLE RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 11
Slide 13: ESG – Environmental Social Governance
ESG – ENVIRONMENTAL SOCIAL GOVERNANCE RPM Automotive Group Success Statement Benefits of ESG 1. Top Line Growth 2. Cost Reductions 3. Regulatory and Legal Interventions 4. Increase Employee Productivity 5. Investment and asset optimisation RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 12
Slide 14: ESG – Roadmap
ESG – ROADMAP RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 13
Slide 15: Tyre Division
TYRE DIVISION Joe De Sensi GM Tyre Division RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 14
Slide 16: Tyre Division – Wholesale & Retail
TYRE DIVISION – WHOLESALE & RETAIL WHEELS REPAIRS & TYRES & ROADSIDE Distribution of wheels and tyres Commercial/Industrial Wholesale – B2B Retail - B2C • 11 warehouses nationally • Retail wheel and tyre repairs, mechanical repairs and • Large fleet of delivery trucks and vehicles routine maintenanc
Slide 17: Tyre Division Summary
TYRE DIVISION SUMMARY Share of RPM total Sales Tyre Division Split Segment Split 20% 31% 48% 52% 15% 69% 65% Tyre Division Other Divisions Retail (B2C) Wholesale (B2B) Passenger (PCR) Earthmoving (OTR) Truck (TBR) * Based on H1FY24 sales RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 16
Slide 18: Competitive Advantages
COMPETITIVE ADVANTAGES • Access to leading brands • Importer of high-quality exclusive value brands • 3 tier pricing Good, better best tyre offers • 2,000+ wholesale accounts nationally • Commercial retail sites located in strategic locations • Large fleet of mobile service trucks • Major trucking f
Slide 19: Growth Opportunities
GROWTH OPPORTUNITIES • New programs • Range extensions • Increased segment penetration (Agriculture etc.) • Geographical expansion (WA/SA) • New customer acquisition • Increased share of wallet existing customers • Improved cross selling between wholesale and retail • Procurement wins based on incre
Slide 20: Strategic & Accretive Yokohama Partnership
STRATEGIC & ACCRETIVE YOKOHAMA PARTNERSHIP • RPM have entered a multi-year agreement with Yokohama Tyre Overview Australia (ASX Announcement 26 March 2024) • RPM is now the only national Yokohama wholesaler • Additional volume through existing fixed infrastructure RPM Benefits • Preferred supplier o
Slide 21: Strategic Technology Partnership with WHG
STRATEGIC TECHNOLOGY PARTNERSHIP WITH WHG • WHG is Australia's largest automotive telematics provider • Provides RPM with entry into SaaS ecosystem targeting heavy fleet customers Overview • Legislation changes driving requirement for higher commercial vehicle safety and accountability • Broaden cus
Slide 22: Performance & Accessories
PERFORMANCE & ACCESSORIES Brad Gilliland GM Performance and Accessories RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 21
Slide 23: Performance & Accessories Division
PERFORMANCE & ACCESSORIES DIVISION PERFORMANCE & ACCESSORIES Bolt on vehicle parts and accessories Specialist Wholesale • Consists of four businesses • 4WD, Caravan and Passenger vehicle channels • Distributed via nationwide auto repair and reseller sites • Cross sells across other RPM business unit
Slide 24: P&A Division Summary
P&A DIVISION SUMMARY P&A Share of RPM Total Segment Mix 9% 23% 13% 48% 77% 30% Other P&A Caravan 4WD Mechanical & Fleet Exhaust * Based on H1FY24 sales RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 23
Slide 25: Exhaust - Wildcat
EXHAUST - WILDCAT • Heritage Australian brand • Founded in 1966 • Market leader • Manufacturer and importer • Performance upgrade exhausts • Solution provider for modern vehicle faults • Exporting to North America RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 24
Slide 26: Equipit - 4WD
EQUIPIT - 4WD • Founded in 2015 • Wholesales popular 4WD products • MAX brand – high quality, great value • Wholesale other leading brands • New Victorian DC servicing SE/SW Australia • New programs extensions • New customer acquisition strategy • Cross sell opportunity for Retail Tyre Division • Ne
Slide 27: Safety Dave – Caravan & Campervans
SAFETY DAVE – CARAVAN & CAMPERVANS • Founded in 2002 • Based in Melbourne • Strong brand recognition • Reverse camera systems for RV • Tyre Pressure Monitoring Systems (TPMS) • First aid supplies First Aid Kit • Fire extinguisher program • OES, Wholesale and Retail TPMS Kit Reverse Camera Kit RPM AU
Slide 28: New Product – The Safe-T-Mover
NEW PRODUCT – THE SAFE-T-MOVER • Designed by Safety Dave Engineers • Manufactured in Australia • Patent Pending • 350kg tow ball weight • 3500kg moving capacity • Designed for Caravans, Boats, Horse Floats etc. • Q1 FY25 launch RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 27
Slide 29: Carline Fleet and Mechanical
CARLINE FLEET AND MECHANICAL • Founded in 1991 • Franchised mechanical workshops • 61 sites nationally • Fleet fit out and maintenance program underway • RPM Tyres added to the program in H1FY25 • Fitment location for other RPM products RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 28
Slide 30: Growth Summary
GROWTH SUMMARY • 4WD and Caravan aftermarket strong • Strong leading and own brand offer • Range extensions drive extra sales • New programs drive extra sales • Cross selling through Group RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 29
Slide 31: Motorsport
MOTORSPORT Tullio Salta GM Motor Sport RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 30
Slide 32: RPM AUTOMOTIVE GROUP LTD (ASX: RPM)
RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 31
Slide 33: Motorsport Division Summary
MOTORSPORT DIVISION SUMMARY Share of RPM Total Sales 8% 92% Tota Sales Motorsport RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 32
Slide 34: Revolution Racegear
REVOLUTION RACEGEAR • Market leader, 30 years old • Largest footprint with company, franchise, and agency locations nationwide • Sole FIA-approved racewear manufacturer in Australia • Exclusive distributor of Alpinestars, Hans Devices, Cobra Seats and Bell Motorsport Helmets • Own brand program (Rev
Slide 35: Product Range – Motorsport
PRODUCT RANGE MOTORSPORT RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 34
Slide 36: Summary
SUMMARY • Large range of motorsport categories • Safety standards change regularly • Largest footprint nationally • Leading brands • Superior customer experience RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 35
Slide 37: Tyre Recycling
TYRE RECYCLING Clive Finkelstein Executive Director & Chief Commercial Officer RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 36
Slide 38: Tyre Recycling Background
TYRE RECYCLING BACKGROUND • Tyres take ~2,000 years to decompose naturally • 56 million tyres are scrapped in Australia on an annual basis • Only 10% go through a tyre recycling processes globally • Australia banned the export of waste or scrap tyres in December 2021 • The growing implementation of
Slide 39: Recycled Tyre Applications – The Opportunity
RECYCLED TYRE APPLICATIONS – THE OPPORTUNITY • Rubberized asphalt for the construction of roads and pavements • Plastic recycled moulded products (e.g. pallets) • Sports, recreation and outdoor facilities • Playground surfacing • Stable and paddock ground cover RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 38
Slide 40: RPM Tyre Recycling – Stage 1 Melbourne
RPM TYRE RECYCLING – STAGE 1 MELBOURNE • Utilising existing leased location in Campbellfield, Melbourne VIC • Placed order with globally renown machine manufacturer with proven technology • Simple mechanical process to shred tyres into smaller crumbs and granules – a proven, simple process • RPM has
Slide 41: Strategic Benefits & Financial Metrics
STRATEGIC BENEFITS & FINANCIAL METRICS • Leverage existing resources, infrastructure & occupancy (RPM’s Wholesale Tyre Division is already set up to collect tyres) • Reverse logistics – trucks return with used tyres after delivering new, currently empty. • Negative Cost of Sales – RPM receives reven
Slide 42: WHG Telematics
WHG TELEMATICS Dylan Hartley Managing Director WHG Australia RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 41
Slide 43: WHG: About Us
WHG: ABOUT US WHG is Australia’s leading IoT, telematics and technology provider, offering a full end-to-end enterprise service and solution. With a history that spans over 35 years of industry experience, we connect over 45,000 devices every month, making us one of the fastest growing global IoT te
Slide 44: WHG: Our Background
WHG: OUR BACKGROUND At our core we are a family business, and our business has grown exponentially over the years driven by strong family values and passion. Our heritage comes from entrepreneurial spirit, OEM automotive and defence electronics, with a focus on quality products and exceptional servi
Slide 45: WHG: Why Us
WHG: WHY US Powered to non A PEAK UNDER THE WHG HOOD powered assets, full CANBUS ready systems Enterprise grade solution expert and more; for all asset types from IoT and automotive through to End to end development, manufacturing and deployment personal tracking. Local hands-on support, with repres
Slide 46: The RPM Group Offers Highest Quality Products and Services
THE RPM GROUP OFFERS EXPANDED WITH WHG TO INCLUDE HIGHEST QUALITY PRODUCTS LEADING TECHNOLOGY PRODUCTS AND SERVICES TELEMATICS, SMART OBM & MORE WHY THIS IS DIFFERENT: WE ARE EVOLVING HOW WE ENGAGE WITH INDUSTRY Our Partnership with RPM is set to change how fleets connect making technology more affo
Slide 47: Telematics Growth & Tech Adoption
TELEMATICS GROWTH & TECH ADOPTION Our market is becoming more accepting of telematics and the demand for telematics solutions is increasing across various industries and sectors Key factors that are driving the growth in telematics uptake in Australia are: o The need for real-time tracking of vehicl
Slide 48: Reduce In-Cabin Distraction
REDUCE IN-CABIN DISTRACTION TYPICAL CABIN Multiple Systems all competing for space. • Telematics • ADAS • Fatigue System • Dash Camera • Mass Display • Reverse Camera • Navigation • Tablet • Radio • 360 Camera System • Panic / Duress Button • And more… RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 47
Slide 49: WHG: Technology Ecosystem
WHG: TECHNOLOGY ECOSYSTEM THE FUTURE Consolidated Technology Reducing Distraction, Cost and Management. • Telematics • ADAS • Fatigue System • Dash Camera • Reverse Camera • Radio • 360 Camera System • Panic / Duress Button • Mass Management • And more… RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 48
Slide 50: WHG: Technology Ecosystem
WHG: TECHNOLOGY ECOSYSTEM RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 49
Slide 51: WHG: Hardware Solution Set
WHG: HARDWARE SOLUTION SET WHG offers a range of hardware options suitable for each vehicle category By design our telematics platform allows for a mix of all hardware devices and technologies Each of our product is designed to be cost effective and feature rich to cater for the vehicle category We
Slide 52: Smart OBM (On-Board Mass System)
SMART OBM (ON-BOARD MASS SYSTEM) RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 51
Slide 53: Smart OBM Introduction
SMART OBM INTRODUCTION NHVR - Harmonising the adoption of Smart OBM and Telematics Monitoring across the East Coast. https://www.vicroads.vic.gov.au/business-and-industry/heavy-vehicle-industry/heavy-vehicle-road- safety/new-telematics-requirements-for-hpfv-and-mobile-cranes https://tca.gov.au/news/
Slide 54: RPM AUTOMOTIVE GROUP LTD (ASX: RPM)
RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 53
Slide 55: FleetWEIGH Smart OBM Solution Components
FLEETWEIGH SMART OBM SOLUTION COMPONENTS 36 MONTHS ALL INCLUSIVE In Cabin Display WHG Telematics Device FLEETWEIGH Sensor ALL INCLUSIVE iPad Mini as a managed TCA Type Approved TCA Type Approved Includes installation, device, mounted and IVU Hardware Device Smart OBM System calibration, all data, lo
Slide 56: FleetWEIGH Smart Scales
FleetWEIGH Smart Scales is a Bluetooth enabled weight sensor and app for air suspension trucks and trailers that clearly displays your truck weight on your smart phone or tablet, to help you load safely and legally. Combining the latest in Bluetooth and sensor technology, the FleetWEIGH sensor is ro
Slide 57: A Different Approach to Smart OBM
A DIFFERENT APPROACH TO SMART OBM BLUETOOTH WEIGH SCALE – Air Suspension Easy Installation with universal compression fittings. Wireless transmission via Bluetooth to the Telematics Device and iPad Mini Display Screen. Several mounting options and no additional wiring or complex setup. Robust Design
Slide 58: FleetWEIGH Smart OBM
FLEETWEIGH SMART OBM FLEETWEIGH SOFTWARE With FleetWEIGH, your truck and/or trailer weight is clearly displayed via the FleetWEIGH app on your smart phone or tablet within the 30 metre line-of-sight range of the Bluetooth enabled sensor. Your equipment profiles are backed up to your FleetWEIGH accou
Slide 59: FleetWEIGH Smart OBM Key Dates and Deadlines
FLEETWEIGH SMART OBM KEY DATES AND DEADLINES UNDERSTAND YOUR REQUIREMENTS AND PLAN Scheme and Authority Codes for RIM and TMA Applications (tca.gov.au) RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 58
Slide 60: Camera Telematics & Advanced Driver Assistance Systems
CAMERA TELEMATICS & ADVANCED DRIVER ASSISTANCE SYSTEMS RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 59
Slide 61: The Heavy Commercial Video AI Safety Solution
REVERSE AND DRIVER MONITORING FULLY CONNECTED WITH BACK TO BASE REAR SYSTEM WITH VISABILITY AND REPORTING CAMERA INTEGRATED CABIN CAMERA ADAS CENTRAL AI PROCESSING UNIT WITH INTEGRATED FORWARD-FACING CAMERA 1 6 5 DRIVER TRAINING & EVENT COACHING 2 3 4 LEFT SIDE 7 BLIND SPOT CAMERA DRIVER DRIVER NOTI
Slide 62: FleetCam AI Camera Telematics
FLEETCAM AI CAMERA TELEMATICS ADAS (Advanced Driver Assistance Assistance)* DMS (Driver Monitoring System)* • Front Collision Warning • Driver Distraction • Lane Departure • Seat Belt Monitoring • Headway Monitoring • Smoking • Pedestrian Collision • No Driver • Stop Sign • Fatigue & Distraction • S
Slide 63: OEM Installation Options
OEM INSTALLATION OPTIONS RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 62
Slide 64: Solar Asset Tracking
SOLAR ASSET TRACKING TRACK HIGH-VALUE, NON-POWERED ASSETS Built to withstand the elements, the ruggedised Cat M1 Solar Tracking Unit can be attached to containers, trailers, heavy equipment and other large, moveable assets. It has a rechargeable solar battery that can last up to 4 months between cha
Slide 65: Solar Asset Tracking – Key Features
SOLAR ASSET TRACKING TRACK HIGH-VALUE, NON-POWERED ASSETS KEY FEATURES o Speed o GPS Location o Geofencing o Movement o Journey History Replay o Tracking o Permanent or temporary install RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 64
Slide 66: Telematics Scalable for the Future
TELEMATICS SCALABLE FOR THE FUTURE TECHNOLOGY FOR VEHICLE CANBUS SOLUTIONS, INTERNET OF THINGS, RF FINDING, CONNECTIVITY READY AND MORE. The WHG Telematics Platform is CANBUS enabled, and the Telematics hardware is scalable to offer advanced telematics functions and features. RPM AUTOMOTIVE GROUP LT
Slide 67: IoT Asset Tracking
IOT ASSET TRACKING MAKE BETTER DECISIONS WITH ASSET TRACKING DATA Tracking movable assets gives you visibility of your assets and valuable insights into their usage. With this data, our clients are able to save time and money, secure their assets better, and deliver an improved experience to their c
Slide 68: iLink 24/7 Software Platform
iLINK 24/7 SOFTWARE PLATFORM iLink Air is a process management platform, offering a software suite of business management modules each designed and configured to meet an individual company, organization or enterprise-wide requirement. • Robust Telematics Software Platform • Bespoke Software Modules
Slide 69: This is an exciting new journey
This is an exciting new Journey. Wheels in motion as we scale and deploy across the RPM network and national footprint. As we work with RPM to facilitate training and coordinate the on-boarding of each location. Our Partnership will support Industry, making technology more accessible and affordable.
Slide 70: Close
CLOSE Guy Nicholls CEO RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 69
Slide 71: Outlook
OUTLOOK EARNINGS Reaffirming FY24 guidance Group EBITDA range $11 to $13m GROWTH FOCUS Organic growth phase NEW PRODUCTS & PROGRAMS WHG, Yokohama, Recycling and new 4WD Protection program OPERATIONS Continued focus on realising group synergies and cross selling PEOPLE Embedding safety, performance a
Slide 72: Q&A
Q&A RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 71
Slide 73: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER Overview This document is issued by RPM Automotive Group Limited ACN 002 527 906 RPM (“RPM Automotive” or “RPM”) on 29th May 20224 Summary Information This document contains summary information about RPM Automotive and its associated and proposed associated entities and