Pinewood Technologies Group Plc · LSE:PINE
Pinewood Technologies — Investor Day (October 2024)
45 slides from Pinewood Technologies's investor day presentation, Oct 24, 2024
Slide 1: Pinewood Technologies Group PLC Capital Markets Day Presentation
PINEWOOD TECHNOLOGIES GROUP PLC CAPITAL MARKETS DAY PRESENTATION OCTOBER 24, 2024
Slide 2: Agenda
Agenda Overview and Introduction to Pinewood Pinewood Overview Market Landscape & Opportunity Pinewood.AI Competitive Advantage Voice of the Customer Pinewood Strategy Pinewood Brand Identity & Positioning Financial outlook including updated FY27 underlying EBITDA guidance Q&A 4
Slide 3: Today's speakers
Today’s speakers Bill Berman – CEO Ollie Mann – CFO Kim Costello – Chief Marketing Officer Kieran Kelly – Chief Technology Officer Steve Meadows – Chief Commercial Officer 5
Slide 4: What we will cover
What we will cover Where we sit in the Automotive Retail ecosystem landscape How our customers view us Short-term strategy focused around optimizing performance in the UK, Europe and Asia Pacific markets While simultaneously developing our system for the North American market, followed by Pi
Slide 5: Pinewood.AI Automotive Intelligence
PIN=WOOD.AI AUTOMOTIVE INTELLIGENCE
Slide 6: Overview
Overview Pinewood Technologies Automotive Intelligence Platform Group PLC today A leading Automotive High user loyalty Recurring revenue Software-as-a-Service Retail Ecosystem streams (SaaS) for 2 decades Pure cloud based software designed Consistent growth in revenue and high, around customer
Slide 7: Market Landscape and Opportunity
Market Landscape and Opportunity Dominated by traditional DMS providers Europe: Keyloop, Constellation Software, NextLane – very fragmented market North America: CDK Global, Reynolds & Reynolds, Dealertrack, Tekion dealers are not satisfied with the Competitors have failed to give the market what it
Slide 8: Pinewood.AI Competitive Advantage
Pinewood.AI Competitive Advantage Enables dealers to operate with one version of the truth in real time Pinewood is 100% Cloud Hosted – highly scalable and secure End-to-end connected data Recent industry cyber-security issues have created a ‘big-bang’ moment Deep and longstanding customer
Slide 9: Voice of the Customer
Voice of the Customer “We are excited to be embarking on this new partnership with Pinewood over the coming months. This partnership will allow us to integrate and upgrade our systems whilst enhancing and accelerating our continuing strive to deliver market leading customer service to our consumer a
Slide 10: Pinewood Strategy
Pinewood Strategy NORTH AMERICAN JV UK & Ireland International Products / North America Vertical Sales Target Large UK Auto Asia Pacific Multiple Product Discovery Phase & Retail Groups Opportunities to Upsell Development Work Northern & Central Top 100 Sweep Europe AI US Store Pilot
Slide 11: UK & Ireland
UK & Ireland
Slide 12: UK & Ireland: Top Auto Retail Customer Opportunities
UK & Ireland UK & Ireland Top 20 Auto Retail Customer Opportunities 2023 Rank* Name T/O 2023 (£m) Step-change in UK & 1 (1) Sytner 6,834 2. (2) Arnold Clark Automobiles 4,922 Ireland market share 3. (3) Lookers 4,301 4. (4) Vertu Motors 4,015 Sign up one of the top 5. (5) Pendragon 3,620 20 as a c
Slide 13: Exhaustive Sweep of Potential New Customers
UK & Ireland Exhaustive Sweep of Potential New Customers Cover all Top 100 UK & The way the UK & Ireland sales team goes to Ireland customers market will be changed: New evolution of the Pinewood system to be Strengthen sales team launched in 2025 New features developed from working closely
Slide 14: Ensure Existing Customers are Aware of Full Product Suite
UK & Ireland Ensure Existing Customers are Aware of Full Product Suite Maximise sales to Pinewood’s ecosystem offering is All available products to be offered to existing customers unique and when replacing existing customers: competitor systems, often multiple Educate all current UK third par
Slide 15: International
International
Slide 16: Asia Pacific Expansion Backed by Strategic OEM Support
International Asia Pacific Expansion Backed by Strategic OEM Support Focal point of Japan Tokyo office staffed with local team Sign contracts for Japan Porsche and VW/Audi will be the dealers with Porsche entry point to build to scale in the and VW/Audi Japanese market e.g. Japanese domestic b
Slide 17: Opportunities in Asia Pacific Countries with Existing Customers
International Opportunities in Asia Pacific Countries with Existing Customers Opportunity to grow in Potential opportunities to expand SE Asia the Pinewood customer base in a number of SE Asia countries where Capitalise on we already have a presence such as upsell/cross-sell Singapore, Vietnam &
Slide 18: Central European Opportunity
International Central European Opportunity Focal point of We have been approached by a number of dealer Germany groups and OEMs in German speaking DACH (Germany, Austria & Switzerland) markets Material opportunities from a number of There are potentially 20,000+ users in DACH sources in Centra
Slide 19: Pinewood South Africa
International Pinewood South Africa Successful Reseller Pinewood have a long-standing agreement Agreement in South with a reseller in South Africa (Pinewood Africa South Africa) who manage the customer relationships and look after the system sales Continue to grow team in South Africa market sha
Slide 20: Products / Vertical Sales
Products / Vertical Sales
Slide 21: Proactively Marketing Full Product Suite
Products/Vertical Sales Proactively Marketing Full Product Suite Further Upsell There is a significant opportunity A summary of the main products for Pinewood to increase vertical and whether Pinewood have them Ensure all customers are sales through add-on products today can be seen below: awa
Slide 22: AI related products
Products/Vertical Sales AI related products AI Chatbots and Other AI will be transformational for automotive retail AI powered products systems with multiple areas of new functionality AI Chatbots Pinewood have made an investment in Seez, the automotive AI company, for $4.2m Step-change for
Slide 23: Build vs Buy vs Partner
Products/Vertical Sales Build vs Buy vs Partner Key decisions on build As we look to expand Pinewood’s suite of products, it vs buy vs partner may not always be possible to develop these capabilities in-house Assessed on a case by case basis In some cases it will be better to buy the technolog
Slide 24: North America
North America
Slide 25: Subject Matter Expert Consultant Engagement
North America Subject Matter Expert Consultant Engagement Expert Consultant Consultant was engaged to assess the US market and opportunity Engage with a What are must-have system product features and functionality needed by US Subject Matter dealerships Expert on the US What integrations are n
Slide 26: Consultant Report Key Outputs
North America Consultant Report Key Outputs Expert Consultant Following the consultant scoping work, the key pieces of work that need to be done by Identify key immediate Pinewood have been identified as: workstreams OEM Integrations Finance Integrations OEM engagement is Tax, Title & Li
Slide 27: Density of Lithia Stores by State is a Key Pilot Consideration
North America Density of Lithia Stores by State is a Key Pilot Consideration US State selection There are high numbers Year 1-2: Leverage Lithia as launchpad into target states… of Lithia dealers in Large Lithia footprint, Select which state to Michigan, Oregon, Large Lithia potential entry to N
Slide 28: North America Market Entry Strategy - 6 Key Steps
North America Pinewood North America Market Entry strategy - 6 Key Steps 1. Building MVP offering (FY24- 2. Locking in differentiated value 3. Setting commercial strategy FY25) prop - Simplified contracting and payments - Development of priority OEMs with - E2E integrated and scalable solution - 1-3
Slide 29: Size of Opportunity is Significant
North America Size of Opportunity is Significant North America Auto North American Automotive market constitutes ~$6.5B of the total ~$9.3B TAM, Market Opportunity ~$3.4B of which is from core Automotive DMS and CRM markets North American Auto ~$2.8b ~$9.3b Market size of $6.5B ~$1.1b ~$0.4b A
Slide 30: Financial outlook and ambitions for the future
Financial outlook and ambitions for the future FY27 Financial Outlook - High double digit revenue growth driven by organic growth in key markets enhanced by selective M&A - Previous guidance of £27m of underlying EBITDA in FY27 increased to £30m 32
Slide 31: Approach to Capital Allocation
Approach to Capital Allocation - Priority is to maximise revenue growth sustainably and shareholder return - Using cash to accelerate both technical capabilities and future implementations, particularly in North America, is key to Pinewood’s Capital Allocation strategy 33
Slide 32: In summary
In summary A highly secure ecosystem with a unique global deployment advantage Built over 20+ years experience of a unique engagement with a modern Auto Retail business Strategy focused around optimising performance in existing markets and establishing Pinewood in the North American market - i
Slide 33: Brand Identity & Positioning
Brand Identity & Positioning
Slide 34: A New and Distinctive Position for the Brand
A New and Distinctive Position for the Brand Our Brand Vision is to be the full-service technology partner that helps automotive retailers and OEMs run more efficiently and increase revenue by making better commercial and business decisions, more easily. Our mission is to unlock customer value by in
Slide 35: Automotive Intelligence
Shutterstock Automotive Intelligence Pinewood.AI enables retailers and OEMs to unlock value by showing them all data points, simply and in near real time. Making it easy to identify opportunities to improve performance. A unified management system and end-to-end visibility of data throughout the own
Slide 36: A system born out of the automotive industry, designed by Car People for Car People
A system born out of the automotive industry, designed by Car People for Car People
Slide 37: Key Principles
Key Principles Pinewood as a Tier 1 technology provider AI (Automotive Intelligence) as the core building block Future-facing/future proofed Full end-to-end solution 40
Slide 38: Pinewood.AI Automotive Intelligence
41 PIN=VWOOD.AI AUTOMOTIVE INTELLIGENCE TEKION keylcop Dealertrack (cox) Lt Hic =S SLERA DealerSocket ieee
Slide 39: GTM USA
GTM USA
Slide 40: Our USP is more than a DMS
Our USP is more than a DMS The inability of dealerships to unlock the value of their data isn’t just the limitations of their current DMS Cultural lack of customer-centricity is an industry problem that technology does not solve Dealerships focus on functional silos not the automotive buyer jo
Slide 41: Pinewood.AI transforms value creation: Inside Out
Pinewood.AI transforms value creation INSIDE OUT Connected, real time data Connected customer journey Superior customer insights Personalised conversations Customer-centric culture Customer-centric experience 44
Slide 42: Roadmap: Key deliverables
Roadmap: Key deliverables Connect with pilot partners Competitor deeeaiaa Connect with thought leaders Create sales assets Plan prospect strategy Data and journey research Build prospect pipeline: Thought leadership content Regional PR Sales conversion Product leadership content Scale up prospecting
Slide 43: Automotive Intelligence
AUTOMOTIVE INTELLIGENCE
Slide 44: Q&A
QS&A
Slide 45: Breakout Sessions — System Demonstrations
Breakout Sessions — System Demonstrations
Pinewood Technologies Group — Investor Day (October 2024) on 6ix