Ama Group Limited · ASX:AMA
Ama — Investor Presentation (February 2021)
31 slides from Ama's investor presentation, Feb 24, 2021
Slide 1: H1 2021 Results Presentation
Page 1 H1 2021 RESULTS PRESENTATION 24 FEBRUARY 2021 amagroupltd.com
Slide 2: World Class Automotive Solutions
Page 2 WORLD CLASS AUTOMOTIVE SOLUTIONS
Slide 3: Disclaimer
Page 3 Disclaimer. This presentation contains summary information about AMA Group Limited (ABN 50 113 883 560) (“AMA Group”) and its activities current as at the date of this presentation. The information in this presentation is of general background and does not purport to be complete. It should be
Slide 4: Contents
Page 4 Contents. AMA Group Overview Page 5 AMA Group Financial Information for H1 2021 Page 9 Divisional Performance Page 16 Strategy and Outlook Page 20 Other Information Page 27
Slide 5: AMA Group Overview
AMA GROUP OVERVIEW &y AMAGROUP
Slide 6: H1 2021 Highlights
Page 6 H1 2021 Highlights. • Total Group revenue and other income of $434.2 million • Normalised EBITDAI of $46.1 million with a Normalised EBITDAI margin of 9% • Strong operating cashflows and cash conversion • The Group de-levered by $76 million • Net Debt at 31 December 2020 was $151.1 million (u
Slide 7: H1 2021 Answers before questions
Page 7 H1 2021 Answers before questions. • Normalisations – Limited to the Capital SMART paint agreement termination fee of $9.4 million • JobKeeper – Funding received of $30.7 million fully paid out in wages support to retain people capacity • Vehicle Repair volume impacted by COVID-19 – Vehicle Pa
Slide 8: H1 2021 Operations highlights
Page 8 H1 2021 Operations highlights. • Capital SMART integration – Paint supplier transition substantially complete (2x NZ sites remaining at end of December due to travel constraints) – Transition to direct sourced consumables complete – $17 million of FRR annual synergies on track to be realised
Slide 9: AMA Group Financial Information for H1 2021
Page 9 AMA GROUP FINANCIAL INFORMATION FOR H1 2021
Slide 10: Summary Financial Performance (Pre-AASB 16)
Page 10 Summary Financial Performance (Pre-AASB 16). SUMMARY FINANCIAL PERFORMANCE HY 2021 HY 2020 CHANGE FOR THE YEAR ENDED 31 DECEMBER PRE-AASB 16 PRE-AASB 16 • Increase in revenue and AUD $'000 AUD $'000 AUD $'000 % operating profit is largely due to the benefit of a full six Revenue and other in
Slide 11: Statutory Financial Performance
Page 11 Statutory Financial Performance. HY 2021 STATUTORY RESULTS HY 2021 HY 2020 CHANGE FOR THE PERIOD ENDED 31 DECEMBER STATUTORY STATUTORY • Results include full six months AUD $'000 AUD $'000 AUD $'000 % trading for acquisitions such as Capital SMART and ACM Parts. Revenue and other income from
Slide 12: Summary Financial Position
Page 12 Summary Financial Position. SUMMARY FINANCIAL POSITION HY 2021 FY 2020 CHANGE AS AT 31 DECEMBER AND 30 JUNE STATUTORY STATUTORY AUD $'000 AUD $'000 AUD $'000 % • Financial position is impacted by the divestment of ACAD Cash and cash equivalents 86,397 112,916 (26,519) (23.5%) and Fully Equip
Slide 13: AMA Delevered during H1 2021
Page 13 AMA Delevered during H1 2021. NET DEBT HY 2021 FY 2020 CHANGE AS AT 31 DECEMBER AND 30 JUNE STATUTORY STATUTORY AUD $'000 AUD $'000 AUD $'000 % Financial liabilities - drawn cash facilities 237,500 340,000 (102,500) (30.1%) Cash and cash equivalents (86,397) (112,916) 26,519 (23.5%) Net debt
Slide 14: Summary Cash Flows
Page 14 Summary Cash Flows. SUMMARY CASH FLOWS HY 2021 HY 2020 CHANGE FOR THE PERIOD ENDED 31 DECEMBER STATUTORY STATUTORY AUD $'000 AUD $'000 AUD $'000 % • ACAD and Fully Equipped Receipts from customers (inclusive of GST) 530,867 450,623 80,244 17.8% group of businesses Payments to suppliers and e
Slide 15: Effects of AASB 16 – Leasing Standard
Page 15 Effects of AASB 16 – Leasing Standard. SUMMARY FINANCIAL PERFORMANCE HY 2021 AASB 16 HY 2021 FOR THE PERIOD ENDED 31 DECEMBER STATUTORY ADJUSTMENT PRE-AASB 16 AUD $'000 AUD $'000 AUD $'000 • The Group adopted the new lease accounting standard AASB 16 Leases from 1 July 2019. Revenue and othe
Slide 16: Divisional Performance
Page 16 DIVISIONAL PERFORMANCE
Slide 17: Vehicle Panel Repairs – Trading Performance
Page 17 Vehicle Panel Repairs – Trading Performance. SUMMARY FINANCIAL PERFORMANCE HY 2021 HY 2020 CHANGE FOR THE PERIOD ENDED 31 DECEMBER AUD $'000 AUD $'000 AUD $'000 % Revenue and other income from continuing operations 405,732 352,105 53,627 15.2% EBITDAI 56,609 37,894 18,715 49.4% AASB 16 Lease
Slide 18: Vehicle Panel Repairs – National Footprint
Page 18 Vehicle Panel Repairs – National Footprint. VEHICLE PANEL REPAIR SITE LOCATION HY DEC-20 FY JUN-20 Victoria 66 65 Queensland 35 34 Western Australia 14 14 New South Wales 37 38 Australian Capital Territory 9 9 South Australia 6 6 VEHICLE PANEL REPAIR SITE COUNT HY DEC-20 FY JUN-20 Tasmania 9
Slide 19: APAS (Automotive Parts and Services) – Trading performance
Page 19 APAS (Automotive Parts and Services) – Trading performance. SUMMARY FINANCIAL PERFORMANCE HY 2021 HY 2020 CHANGE FOR THE PERIOD ENDED 31 DECEMBER AUD $'000 AUD $'000 AUD $'000 % Revenue and other income from continuing operations 29,259 11,907 17,352 145.7% EBITDAI 3,366 (142) 3,508 (2,470.4
Slide 20: Strategy and Outlook
STRATEGY AND OUTLOOK &y AMAGROUP
Slide 21: Strategy
Page 21 Strategy. • Growth – organic – Selling the benefits of the Group’s unique value proposition – SMART (low severity) to Heavy Hit (high severity) – extensive and expanding geographic coverage, high quality cost effective repair solutions - across multiple vehicle types – The constantly evolvin
Slide 22: Strategy
Page 22 Strategy. • Margin expansion through sourcing – Direct sourcing and distribution – consumables, parts – Indirect spend – combined volumes of a circa 180 sites / 3700 staff business • Operational excellence - reduce costs and lift margins – Capacity utilisation – Labour productivity – Unlock
Slide 23: Operational focus
Page 23 Operational focus. • Operational accountability – Integration of acquisitions into the base business – Outcome sanity check post integration – ensuring we got what we paid for – Ensuring efficient site operations – customer commitment volume vs actuals – Average cost vs actual cost revenue m
Slide 24: Governance
Page 24 Governance. • Transition in leadership style – from Entrepreneurial and Big Picture to Operations and Outcomes • Focus on Governance – we are an ASX300 Public Company – what should be in place, will be • Enhanced systems, processes and controls – management of the business through policy and
Slide 25: Outlook - Headwinds
Page 25 Outlook - Headwinds. • COVID-19 hangover – ‘Just because we want it to be over doesn’t make it so’ – Still living with the reality of outbreaks and snap border closures – Remnants of work from home mandates in place – Reduced traffic volumes and changing traffic patterns • Reduced efficienci
Slide 26: Outlook - Tailwinds
Page 26 Outlook - Tailwinds. • Reluctance to use public transport will lift traffic volumes as return to work edicts rise • Vaccine rollout to hasten return to normal • Domestic driving holidays increasing kilometres travelled • Forecast La Niña weather conditions have historically increased repair
Slide 27: Other Information
OTHER INFORMATION &y AMAGROUP
Slide 28: Mobility trends - Australia
Page 28 Mobility trends - Australia.
Slide 29: Scorecard update from FY2020
Page 29 Scorecard update from FY2020. SUBSTANTIALLY Complete BASF paint roll out to all Capital SMART sites COMPLETE 1 Meet Bank Facility undertakings for Q2 2021 ACHIEVED Continue to drive further scale benefits to deliver additional synergies beyond the $17 million run rate identified and on track
Slide 30: Normalisations
Page 30 Normalisations. NORMALISATIONS HY 2021 HY 2020 CHANGE AUD $'000 AUD $'000 AUD $'000 % • Normalisations for the Supplier termination fee 9,437 - 9,437 100.0% period were $9.4 million Acquisition costs - 8,508 (8,508) (100.0%) which represents the Restructuring and reorganisation costs - 1,999
Slide 31: Acquisitions and Divestments
Page 31 Acquisitions and Divestments. ACQUISITIONS # SITES DATE Vehicle Panel Repairs Western Trucks 1 25-Sep-20 Automotive Parts and Accessories Perth Brake Parts N/A 30-Oct-20 DIVESTMENTS # SITES DATE Automotive Parts and Accessories ACAD Limited N/A 31-Dec-20 AECAA Pty Ltd N/A 31-Dec-20 ECB Pty L