Maxiparts Limited · ASX:MXI
Maxiparts — MaxiTRANS Industries — Merger or Acquisition (July 2021)
36 slides from Maxiparts's merger presentation, Jul 26, 2021
Slide 1: MaxiTRANS Industries Limited – Sale of Trailer Business
26 July 2021 MaxiTRANS Industries Limited – Sale of Trailer Business Investor Presentation For personal use only An investor presentation in relation to the sale of the Trailer Business is attached. Authorised for release by the Board of Directors of MaxiTRANS Industries Limited Contact: Dean Jenkin
Slide 2: Investor Presentation
For personal use only Investor Presentation
Slide 3: Disclaimer
Disclaimer For personal use only The material contained in this document is a presentation of general information about MXI and its related bodies corporate (MXI Group) and the activities of the MXI Group as at the date of this presentation (26 July 2021). It is provided in summary form and does not
Slide 4: Contents
Contents For personal use only Section Page MaxiPARTS Mackay store Transaction summary 4 MaxiPARTS overview 9 MaxiPARTS financials 14 MaxiPARTS future strategy 20 MaxiPARTS summary 23 Capital management 25 Transactional agreements 27 Board structure 29 Timetable 31 Appendix: Funds flow illustration
Slide 5: Transaction summary
Transaction summary For personal use only Section Transaction summary MaxiPARTS overview MaxiPARTS financials MaxiPARTS future strategy MaxiPARTS summary Capital management Transactional agreements Board structure Timetable 4
Slide 6: Proposed transaction summary
Proposed transaction summary MaxiTRANS (MXI) to divest Trailer Solutions business and properties for total sale price of For personal use only $48.3m (subject to customary adjustments), transforming MXI into a dedicated commercial parts distribution business. Sale of Trailers assets and Sale of Trai
Slide 7: Benefits for shareholders
Benefits for shareholders The Board considers the proposed transaction to be in the best interests of shareholders For personal use only In recent years, the financial performance of Trailers has been volatile. MXI has undertaken a review of options and concluded exit was the best option for shareho
Slide 8: Transaction details: Sale of Trailers and Ballarat property
Transaction details For personal use only Sale of Trailers and Ballarat property • Buyer is Australian Trailer Solutions Group Pty Ltd (ATSG), an independent privately held company, and related companies • Sale includes all Trailers tangible assets, Ballarat property and IP/brand names, agreed liabi
Slide 9: Transaction details: Sale of Derrimut and Hallam sites
Transaction details For personal use only Sale of Derrimut and Hallam sites • Buyer is an independent third party • Sale conditional on completion of Trailers sale • Properties recorded at fair value in group’s accounts Derrimut Hallam 8
Slide 10: MaxiPARTS overview
MaxiPARTS overview For personal use only Section Transaction summary MaxiPARTS overview MaxiPARTS financials MaxiPARTS future strategy MaxiPARTS summary Capital management Transactional agreements Board structure Timetable 9
Slide 11: Overview
Overview MaxiPARTS is one of Australia’s leading independent commercial vehicle parts distribution For personal use only companies • Distributor of leading genuine brands as well as Selected Brands extensive range of aftermarket commercial vehicle parts • One of Australia’s largest importers of afte
Slide 12: Diverse product and customer mix
Diverse product and customer mix For personal use only Revenue by product classification Revenue by customer type Resellers, 7% Workshops, Axles, 11% Other general Suspensions, products, 33% Tyres, Wheels Cash & other, & Brakes, 37% 42% Trailer OE, 20% Truck, Engine, Filtration, Oil, Lubricants and
Slide 13: National footprint
National footprint For personal use only NT 1 site Revenue = $2m QLD Employees, products and locations 7 sites (2%) Revenue = $34m (25%) 182 employees WA 1 site 20 locations by end of Q1 FY22 Revenue = $7m (5%) 30,000 SKUs 145,000 products in database NSW 4 sites (+ Erskine Park opening Q1 FY22 ) Re
Slide 14: Key management
Key management For personal use only Name Title Background Chief Executive Officer and Peter Loimaranta • 15+ years at MXI, including 10 years running MaxiPARTS Managing Director • 2.5 years at MXI as Group Financial Controller • Previously, 20 years of experience in variety of finance and Liz Block
Slide 15: MaxiPARTS financials
MaxiPARTS financials For personal use only Section Transaction summary MaxiPARTS overview MaxiPARTS financials MaxiPARTS future strategy MaxiPARTS summary Capital management Transactional agreements Board structure Timetable 14
Slide 16: FY21 unaudited results
FY21 unaudited results For personal use only MaxiPARTS recorded FY21 revenue (unaudited) of $134m and pro forma FY21 EBITDA before corporate costs (unaudited) of $17.4m to $17.6m. Improved performance over prior period, with benefit of cost control initiatives implemented in late FY20 continuing int
Slide 17: MaxiPARTS revenue
MaxiPARTS revenue For personal use only 7% compound annual revenue growth FY16 – FY21 • Consistent track record of growth over extended period • FY20 impacted by lower Trailers activity and COVID, before FY21 uplift in parts revenue associated with Trailers recovery Key growth drivers: • Product ran
Slide 18: MaxiPARTS EBITDA
MaxiPARTS EBITDA 29% compound annual EBITDA growth FY16 – FY21 For personal use only (pre-corporate costs, before AASB 16 impacts) Key drivers of FY21 EBITDA increase over FY20: • 5% revenue increase, linked to Trailers recovery and higher external sales to other customers • Consistent year on year
Slide 19: Pro forma income statements – key financials
Pro forma income statements – key financials For personal use only $mil FY20 FY21 Significant reduction in ongoing Revenue 127.0 133.5 centralised functional/support EBITDA (pre-corporate costs) 15.7 17.5 costs Centralised functional/ support costs (5.0) (5.0) transitioned to standalone MaxiPARTS Pr
Slide 20: Pro forma balance sheet
Pro forma balance sheet Jun-21 MXI Proforma For personal use only Dec-20 MXI $mil Group Group MaxiParts at 1 (unaudited) Sept 2021 Pro forma MXI balance sheet at 1 September Assets 2021 shows strong opening financial position Cash 26.5 22.4 7.0 Receivables 21.7 28.4 15.2 • Pro forma net cash opening
Slide 21: MaxiPARTS future strategy
MaxiPARTS future strategy For personal use only Section Transaction summary MaxiPARTS overview MaxiPARTS financials MaxiPARTS future strategy MaxiPARTS summary Capital management Transactional agreements Board structure Timetable 20
Slide 22: Business as usual
Business as usual For personal use only Existing initiatives will continue to drive revenue growth, profit improvement and working capital management. The business continues to focus on these priorities with new initiatives in: Over last 5 years MXI has successfully • Operational excellence executed
Slide 23: Acquisitions
Acquisitions MaxiPARTS is well positioned to play an active role in consolidation of commercial vehicle For personal use only aftermarket parts industry; M&A a key component of our short-term growth strategy. Commercial vehicle parts market Enhances product range/geographies M&A Clear post-acquisiti
Slide 24: MaxiPARTS summary
MaxiPARTS summary For personal use only Section Transaction summary MaxiPARTS overview MaxiPARTS financials MaxiPARTS future strategy MaxiPARTS summary Capital management Transactional agreements Board structure Timetable 23
Slide 25: MaxiPARTS summary
MaxiPARTS summary For personal use only • Aging commercial vehicle and trailer fleet supports demand for after Attractive industry fundamentals markets parts • One of the market leaders in Australia Market leadership • • National footprint Ongoing arrangements with Trailers • Over 10,000 active
Slide 26: Capital management
Capital management For personal use only Section Transaction summary MaxiPARTS overview MaxiPARTS financials MaxiPARTS future strategy MaxiPARTS summary Capital management Transactional agreements Board structure Timetable 25
Slide 27: Capital management
Capital management For personal use only MaxiPARTS capital management strategy will allow funding for growth and payment of steady dividends to shareholders. • MaxiPARTS Board intends to follow a dividend policy which has regard to current earnings and cashflows, available franking credits, future c
Slide 28: Transactional agreements
Transactional agreements For personal use only Section Transaction summary MaxiPARTS overview MaxiPARTS financials MaxiPARTS future strategy MaxiPARTS summary Capital management Transactional agreements Board structure Timetable 27
Slide 29: Transactional agreements
Transactional agreements For personal use only Contract Length Vendor financing • $4m funding to be provided by MXI to ATSG • Term – maximum 2 years 2 years max. • Interest – 3% pa for first 6 months; 5% pa for next 6 months; 8% pa thereafter • Security – corporate guarantee from ATSG Exclusive dist
Slide 30: Board structure
Board structure For personal use only Section Transaction summary MaxiPARTS overview MaxiPARTS financials MaxiPARTS future strategy MaxiPARTS summary Capital management Transactional agreements Board structure Timetable 29
Slide 31: Board structure
Board structure Given the transformational change of the business, a review has been completed of the board structure to For personal use only ensure it is appropriate for the business going forward with a balance between stability and new director appointments. Name Title Background Mr. Wylie has w
Slide 32: Timetable
Timetable For personal use only Section Transaction summary MaxiPARTS overview MaxiPARTS financials MaxiPARTS future strategy MaxiPARTS summary Capital management Transactional agreements Board structure Timetable 31
Slide 33: Timetable
Timetable For personal use only Step Date Insert proposed timetable and approvals required Extraordinary General Meeting (EGM) to approve sale 27 August 2021 of Trailers and Ballarat property Anticipated settlement of agreements Late August 2021 Anticipated timing of payment of special dividend Octo
Slide 34: Appendix: Funds flow illustration
Appendix For personal use only Appendix: Funds flow illustration 33
Slide 35: Funds flow illustration
Funds flow illustration For personal use only Sources A$M Uses A$M Sale of Trailers and Ballarat property ($30.2m enterprise value less $4.0m vendor financing less 15.5 Repayment of bank debt** 6.7 $10.7m working capital*/debt-like items adjustments) Special dividend (at 12.5c per share pre-share Pr
Slide 36: For personal use only
For personal use only
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