Amotiv Limited · ASX:AOV
Amotiv — Wilsons Rapid Insights Conference 2018
22 slides from Amotiv's conference presentation, May 31, 2018
Slide 1: Wilsons Rapid Insights Conference Presentation
31 May 2018 Manager, Company Announcements ASX Limited Level 4 20 Bridge Street SYDNEY NSW 2000 Dear Sir Wilsons Rapid Insights Conference Presentation – 31 May 2018 Attached is a copy of a presentation to be given by Jonathan Ling, Managing Director, GUD Holdings Limited at the Wilsons Rapid Insigh
Slide 2: GUD Holdings Limited
GUD Holdings Limited Wilsons Rapid Insights Conference 31st May 2018 Jonathan Ling Managing Director
Slide 3: The GUD group
GUD HOLDINGS The GUD group Automotive Davey • Automotive oil, air • Fuel pumps • Automotive lighting and • Household and farm and fuel filters • Ignition coils accessories water pumps • Heavy duty filters • Engine sensors • Battery maintenance • Water treatment • Gaskets • Service and non- and power
Slide 4: FY18 first half result key points
GUD HOLDINGS FY18 first half result key points Reported NPAT increased 61% to $28.4 m from $17.7 m previously • Discontinued operations contributed a $2.5 m profit in FY18 versus a loss of $4.6 m in FY17 • Oates business sale announced in November, completed early January NPAT from continuing op
Slide 5: FY18 portfolio management
GUD HOLDINGS FY18 portfolio management Announced divestment of Oates to Freudenberg Household Products: • Sale completed 2nd January 2018 • Total proceeds of $80 m initially directed towards debt reduction • Approximate $47 m after tax profit on sale to contribute to second half results Strength
Slide 6: FY18 first half financial summary
GUD HOLDINGS FY18 first half financial summary FY17 re-stated with Dexion and Oates reclassified as discontinued operations Revenue growth contributions from both Automotive and Davey Organic profit growth from both segments with additional contribution from recent acquisitions Page 5
Slide 7: Cash generation and financial position
GUD HOLDINGS Cash generation and financial position Cash conversion continues to improve: • 70% measured by operating cash flow less capex and interest divided by NPAT, including Oates cash held in discontinued operations • Cash conversion affected by sales growth, longer payment terms to key cust
Slide 8: GUD's portfolio repositioning
GUD HOLDINGS GUD’s portfolio repositioning Portfolio repositioning completed with recent sale of Oates Since 2015 have disposed of Sunbeam, Dexion, Lock Focus and Oates Since 2015 have acquired BWI, Griffiths Equipment, IM Group and AA Gaskets Remaining businesses are Automotive and Davey wi
Slide 9: Vehicle numbers growth underpins parts demand
GUD HOLDINGS Vehicle numbers growth underpins parts demand Registered Vehicles Australia* - millions ▪ Consistent annual growth in vehicle numbers: 16 • CAGR in units >2% since 2003 14 12 ▪ Each vehicle requires a range of parts for 10 repair, servicing, functionality and appearance 8 purposes 6 4 ▪
Slide 10: The threat from electric vehicles?
GUD HOLDINGS The threat from electric vehicles? Vehicle numbers by fuel type Type 2007 2011 2014 2015 2016 ▪ Electric and hybrid vehicle Hybrid 11,693 39,577 77,401 89,539 102,164 numbers are increasing, but Electric 0 161 1,836 2,944 3,159 only represent <1% of the Other - petrol, diesel 11,454,867
Slide 11: GUD's exposure to internal combustion engines
GUD HOLDINGS GUD’s exposure to internal combustion engines FY18 Estimated Automotive Segment Sales Split ▪ Currently 52% of GUD’s automotive segment sales are to non-internal combustion engine applications: • Narva - lighting and electrical • Projecta – most products with the ICE- Non ICE- exception
Slide 12: Rationale for automotive focus
GUD HOLDINGS Rationale for automotive focus The automotive market is growing in both Australia and New Zealand The automotive aftermarket is not dependent on consumer sentiment and spending cycles, as it is essentially trade-directed GUD has at least five years visibility on market trends Th
Slide 13: Automotive result FY18 first half
GUD HOLDINGS Automotive result FY18 first half $ million H1 FY17 H1 FY18 % Change Sales 124.9 142.4 14% EBITDA 36.4 41.0 13% Depreciation and Amortisation (0.6) (0.8) EBIT 35.8 40.2 12% EBIT/Sales % 29% 28% Sales growth of 14% consisted of 8% organic growth and the balance from the acquired busine
Slide 14: Automotive structure
GUD HOLDINGS Automotive structure Automotive Ryco Wesfil Group BWI Narva and Griffiths Ryco Filters IM Group AA Gaskets Projecta Equipment Page 13
Slide 15: Automotive operating performance – Ryco Group
GUD HOLDINGS Automotive operating performance – Ryco Group Ryco Filters achieving organic revenue growth from: • Growing the user base through the workshop “Conquest” program • New product introductions – filter-related tools, high performance air filters • Expanded the range of automotive filters
Slide 16: Automotive operating performance – Wesfil
GUD HOLDINGS Automotive operating performance – Wesfil Wesfil achieving organic growth from product range expansion: • Spark plugs • IM Group products distributed through Wesfil • Diesel particulate filters • Specialised cleaning products Further growth to come from establishment of Western Sydn
Slide 17: Automotive operating performance – BWI
GUD HOLDINGS Automotive operating performance – BWI Brown & Watson • Increasing contribution from new products launched in FY17 – e.g. Ultima215 driving light • First contract won in emergency service lighting segment - NZ Police - and remain active in current market tenders • First contribution f
Slide 18: Long term automotive trends
GUD HOLDINGS Long term automotive trends Universal shifts in the automotive market: • Electric vehicles • Shared vehicles • IoT and connectivity • Driverless/autonomous vehicles GUD’s positioning in light of these trends: • Build capability and agility • Develop “thought leadership” stance in th
Slide 19: GUD's initial activities
GUD HOLDINGS GUD’s initial activities Analyse and identify maintenance and roadworthiness needs of electric vehicles Completed a small investment in “Auto Guru” • An on-line portal for comparing and booking a vehicle service Completed a small investment in “Liftango”, a start-up providing: • A
Slide 20: Davey result FY18 first half
GUD HOLDINGS Davey result FY18 first half $ million H1 FY17 H1 FY18 % Change Sales 51.3 52.3 2% EBITDA 4.9 5.8 18% Depreciation and Amortisation (0.6) (1.1) EBIT 4.3 4.7 9% Underlying EBIT/Sales % 8% 9% Small sales growth from ANZ businesses EBITDA uplift due to margin expansion from lower produ
Slide 21: FY18 outlook
GUD HOLDINGS FY18 outlook Improved contributions expected from Davey and Automotive in second half All Automotive businesses expected to continue growing strongly: • Organic growth from new products and entry into new market segments • Full six month EBIT contribution from AA Gaskets and IM Grou
Slide 22: GUD Holdings Limited
GUD Holdings Limited Wilsons Rapid Insights Conference 31st May 2018