Rpm Automotive Group Ltd. · ASX:RPM
Rpm Automotive — H1 FY2022 Earnings Presentation
22 slides from Rpm Automotive's earnings presentation, Feb 24, 2022
Slide 1: RPM Automotive Group Ltd Half Year Results FY22
RPM AUTOMOTIVE GROUP LTD (ASX:RPM) Half Year Results FY22 February 2022
Slide 2: We Are RPM
WE ARE RPM RPM Automotive Group Limited is a leading player in the Australian automotive aftermarket sector RPM has a nationwide footprint of businesses involved in importing, wholesaling, and retailing tyres, mechanical repairs, motorsport apparel and safety equipment, niche manufacturing, and road
Slide 3: About RPM
ABOUT RPM FAVOURABLE INDUSTRY FUNDAMENTALS EXPERIENCED BOARD AND MANAGEMENT TEAM The Australian automotive aftermarket is large, growing and remains The founders have a proven track record of owning, building and highly fragmented operating automotive businesses LEADING MARKET POSITIONS IN ATTRACTIV
Slide 4: H1 FY22 Achievements
H1 FY22 ACHIEVEMENTS REVENUE EBITDA CASH BALANCE Up 86% on H1 FY21 to $34.4m Up 60% on H1 FY21 to $3.1m $5.6m as at 31 December 2021 Record half year result Strong revenue growth delivered Net cash generated of $3.9m record EBITDA Growth across all four business Operating cashflow of ($1.2m) units A
Slide 5: Our Businesses
OUR BUSINESSES RPM’S FOUR DIVISIONS HAVE A NATIONWIDE FOOTRPINT IN THE AUTOMOTIVE AFTERMARKET WHEELS & TYRES REPAIRS & ROADSIDE MOTORSPORT PERFORMANCE & ACCESSORIES Wholesale & distribution of Commercial and retail tyre & Racegear and Racewear Vehicle parts and accessories industrial, commercial and
Slide 6: Our Markets and Opportunities
OUR MARKETS AND OPPORTUNITIES THE AUSTRALIAN AUTOMOTIVE PARTS & MAINTENANCE SECTOR REPRESENTS ABOUT $34 BILLION1 IN ANNUAL REVENUE THE SECTOR IS HIGHLY FRAGMENTED RPM HAS A STRONG TRACK RECORD OF DRIVING CONSOLIDATION VIA ITS VERTICALLY INTEGRATED NATION-WIDE FOOTPRINT RPM IS FOCUSED ON GROWING WHEE
Slide 7: Financials
FINANCIALS
Slide 8: H1 FY22 Financial Summary
H1 FY22 FINANCIAL SUMMARY PROFIT AND LOSS BALANCE SHEET CASH FLOW STATEMENT H1 FY22 H1 FY21 31 Dec 21 30 Jun 21 H1 FY22 H1 FY21 ($m) ($m) ($m) ($m) ($m) ($m) Revenue 34.4 18.5 Cash and equivalents 5.6 1.7 Operating cashflows (1.2) (0.5) Gross Profit 10.9 7.9 Other Assets 60.8 44.8 Investing cashflow
Slide 9: H1 FY22 Results Wheels & Tyres
H1 FY22 RESULTS WHEELS & TYRES Strong result in Wheels & Tyres driven by ongoing demand from the heavy transport and logistics sectors WHEELS & TYRES H1 FY22 H1 FY21 Change Significant commercial tyres growth partly offset by a lockdown restrictions impacting passenger tyre sales Revenue ($m) 13.7 8
Slide 10: H1 FY22 Results Performance & Accessories
H1 FY22 RESULTS PERFORMANCE & ACCESSORIES Performance & Accessories traded above expectation given retail volatility due to lockdowns PERFORMANCE & ACCESSORIES H1 FY22 H1 FY21 Change Strong December – historically the weakest month – as lockdowns lifted in key markets Revenue ($m) 3.5 2.0 +77% Reven
Slide 11: H1 FY22 Results Repairs & Roadside
H1 FY22 RESULTS REPAIRS & ROADSIDE REPAIRS & ROADSIDE Repairs & Roadside performed well despite retail disruptions in the early reporting period H1 FY22 H1 FY21 Change Revenue of $14.0m, up 122% on H1 FY21 Revenue ($m) 14.0 6.3 +122% EBITDA contribution of $0.5m, up 15% on H1FY21 Gross Profit ($m) 3
Slide 12: H1 FY22 Results Motorsport
H1 FY22 RESULTS MOTORSPORT MOTORSPORT Motorsport rebounded strongly after a tough start to the half with lockdowns in NSW and VIC H1 FY22 H1 FY21 Change Revenue of $3.6m, up 16% on H1 FY21 Revenue ($m) 3.5 3.3 +6% EBITDA contribution of $0.5m, down 29% on H1 FY21 Gross Profit ($m) 1.7 1.8 -5% Tradin
Slide 13: Acquisition Growth Strategy
ACQUISITION GROWTH STRATEGY
Slide 14: Customer Acquisition Growth Strategy
CUSTOMER ACQUISITION GROWTH STRATEGY Identify similar complementary businesses to unlock synergies Target approximately ~50% scrip and ~50% cash (paid out over a period of time) consideration Aim to purchase businesses on attractive valuation metrics of 3.5 – 5x earnings Apply a term payout to retai
Slide 15: H1 FY22 Acquisition & Investment Summary
H1 FY22 ACQUISITION & INVESTMENT SUMMARY Elite Tyre Group ACQUISITIONS Carline Direct Automotive – Wholesale Safety Cairns Tyres Dave Super Tyre Mart Jun 2021 Jul 2021 Aug 2021 Sep 2021 Oct 2021 Nov 2021 Dec 2021 Jan 2022 Feb 2022 INVESTMENTS RPM RPM Autoparts – Autoparts – Townsville Traralgon ACRO
Slide 16: Summary
SUMMARY H1 FY22 HIGHLIGHTS H2 FY22 OUTLOOK Record revenue of $34.4m and EBITDA of $3.1m Further acquisition opportunities to continue the Company’s growth strategy 5 strategic acquisitions of complementary businesses that will deliver meaningful cost and revenue Integration success and cross-selling
Slide 17: Thank You Questions?
THANK YOU Questions?
Slide 18: Appendix
APPENDIX
Slide 19: Corporate Snapshot
CORPORATE SNAPSHOT CAPITAL STRUCTURE1 SHARE PRICE PERFORMANCE ($/SHARE)1 Shares on Issue 141.9m Options 20.9m Share Price (17/02/22) $0.28 Market Capitalisation $40.0m 52-week High $0.470 52- week Low $0.265 1 Market data sourced from IRESS as of 18 February 2022 FOUNDERS’ INTERESTS REGISTER Lawrenc
Slide 20: Board of Directors
BOARD OF DIRECTORS Lawrence Jaffe – Executive Director Grant Carman - Non-Executive Chairman Lawrence is a co-founder and promoter of the RPM Group. Lawrence has a strong financial background having worked in Grant Carman is a chartered accountant with over 30 years of Private Equity, Mergers and Acq
Slide 21: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Overview This document is issued by RPM Automotive Group Limited ACN RPM (“RPM Automotive” or “RPM”) on 24 February 2022. Summary Information This document contains summary information about RPM Automotive and its associated and proposed associated entities and their
Slide 22: Contact
CONTACT INVESTORS MEDIA Ronn Bechler Tristan Everett P: 0400 009 774 P: 0403 789 096 E: ronn.bechler@marketeye.com.au E: tristan.everett@marketeye.com.au Hugh Morgan P: 0407 453 109 E: hugh.morgan@marketeye.com.au www.rpmgroup.net.au www.linkedin.com/company/rpm-automotive-group-limited/ https://www
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