Ama Group Limited · ASX:AMA
Ama — FY2018 Earnings Presentation
20 slides from Ama's earnings presentation, Aug 28, 2018
Slide 1: Operating Specialised Automotive Aftercare and Accessory Companies
Operating Specialised Automotive Aftercare and Accessory Companies 2018 FULL YEAR RESULTS PRESENTATION | 28 AUGUST 2018
Slide 2: AMA Group Overview
AMA Group Over view An ASX300 Company, AMA Group is the Australian leader in the automotive aftercare and accessories market Well-positioned for organic and inorganic growth opportunities, especially in Vehicle Panel Repair with close relationships with work providers Proven track record of successf
Slide 3: June 2018 Full Year Results
June 2018 Full Year Results JUNE 18 JUNE 17 3 CHANGE Revenue – continuing operations : Reported ($’000) 509,756 382,165 33.4% EBITDA - continuing operations : Reported ($’000) 43,633 37,205 17.3% EBITDA - continuing operations : Normalised 1 ($’000) 52,156 41,072 27.0% Basic EPS - continuing operati
Slide 4: Normalisation of EBITDA
Normalisation of EBITDA ($’000) June 18 June 17 June 16 EBITDA – Reported 43,633 37,205 24,672 Greenfield Start Ups 2,500 1,250 - Business Acquisition expenses 1,363 677 916 Site Integrations 1,400 500 500 Employee Equity Plan expense 853 403 3,644 Redundancies 294 379 1,128 Blackstone Due Diligence
Slide 5: EBITDA to Operating Cash Flow
EBITDA to Operating Cash Flow ($’000) June 18 June 17 June 16 EBITDA – Reported 43,633 37,205 24,672 Discontinued operation 32 - (10) Interest Paid (786) (170) (207) Deferred Income Amortisation (7,453) (5,487) (2,981) Equity Issued As Employment Condition 853 403 3,644 Other Non Cash Items (3,402)
Slide 6: Investment Cash Flows
Investment Cash Flows ($’000) June 18 June 17 June 16 Capital Expenditure – Greenfields 1 4,210 6,310 1,275 Capital Expenditure - Other (Maintenance) 2 6,816 5,676 7,629 3 11,026 11,986 8,904 Acquisition of Existing Businesses 23,590 6,851 31,185 Investment in Automotive Solutions Group Ltd 13,246 3
Slide 7: Free Cash Flow
Free Cash Flow To date the Group has Maintenance Acquisitions of Dividends managed this, primarily The financial capital “greenfields” to AMA by using the free cash strategy of the expenditure and “brownfields shareholders out flow and the first Group is to fund: out of cash flow ” out of the of fre
Slide 8: History to Sustainable Earnings Growth
Histor y to Sustainable Earnings Growth 300 REVENUE 30 EBITDA 250 25 200 20 150 15 100 10 50 5 FY15 1st FY15 2nd FY16 1st FY16 2nd FY17 1st FY17 2nd FY18 1st FY18 2nd FY15 1st FY15 2nd FY16 1st FY16 2nd FY17 1st FY17 2nd FY18 1st FY18 2nd Normalised Reported EARNINGS PER SHARE DIVIDENDS PER SHARE 5.
Slide 9: Business Mix – Revenue by Division
Business Mix – Revenue by Division PANEL NOW PROVIDES 85.8% OF REVENUE (2017: 86.3%) Panel Manufacturing Distribution Remanufacturing Performance Corporate 2018 FULL YEAR RESULTS PRESENTATION | 8
Slide 10: Vehicle Panel Repair
Vehicle Panel Repair Integrated 30 new facilities, 26 acquisitions and 4 Greenfields Tendered and selected a new ERP (NetSuite from Oracle ) for opened in FY2018. (4 acquisitions settled July 2017) rollout in FY19 • NSW being our main focus with annualised revenues going from • One finance team one
Slide 11: Evolving Vehicle Panel Repair Market
Evolving Vehicle Panel Repair Market Sm a ll op er at ions exp ec t ed t o d ec line • Australia expected to follow the trajectory of US the market, where small panel repair shops have reduced by ~26% over the last decade • US Multi-shop operators (MSOs) revenue share has increased from 9% to 28%, w
Slide 12: Large and Fragmented Market
Large and Fragmented Market • Panel repair market is still fragmented, but rapid consolidation within the industry is expected to increase market share for large operators • Higher revenues, lower costs make larger operations more sustainable • Insurance industry shifting support towards larger play
Slide 13: Vehicle Panel Repair
Vehicle Panel Repair Jun 18 Jun 17 Change 1 ($’000) Change 1 (%) Sales 427,078 323,769 103,309 31.9 Gross Margin ($’000) 2 247,769 190,750 57,020 29.9 Gross Margin (%) 58.0 58.9 (0.9) (1.5) EBITDA – Reported ($’000) 39,058 34,025 5,033 14.8 EBITDA Margin – Reported (%) 9.2 10.5 (1.4) (13.0) EBITDA –
Slide 14: National Footprint of 114 Panel Repair Shops
National Footprint of 114 Panel Repair Shops June 18 June 17 Victoria 40 37 Queensland 24 19 Western Australia 10 10 New South Wales 22 7 Network – 30 June 2017 86 Australian Capital Territory 7 6 Acquired 26 South Australia 3 3 Greenfields 5 Tasmania 6 3 Disposed (3) New Zealand 2 1 Network - Curre
Slide 15: ACAD
ACAD Performance & Manufacturing Distribution Remanufacturing Workshop FY18 FY17 Change (%) FY18 FY17 Change (%) FY18 FY17 Change (%) FY18 FY17 Change (%) Sales 37,534 25,867 45.1% 17,743 15,294 16.0% 11,599 10,340 12.2% 3,901 - - Gross Margin ($’000) 2 16,808 12,207 37.7% 5,811 4,513 28.8% 4,246 4,
Slide 16: ACAD Strategy
ACAD Strategy • Leading vertically integrated player in the automotive OEM, Fleet and aftermarket supply chain • Key product and service focus on growing 4WD, SUV and Commercial Vehicle segments now representing 6 in 10 new vehicles being sold in Australia • High technical value add and barrier to e
Slide 17: Update on ASG
Update on ASG Distribution Manufacturing Workshop Restructuring of ASG The restructure and completed with the integration was successfully shift of six of the One unit being completed to facilitate go-forward business integrated into the Three units into Two units into new improved controls, units o
Slide 18: Strategy / Outlook
Strategy / Outlook AMA HAS MULTIPLE OPPORTUNITIES TO CONTINUE ITS GROWTH BY BOTH ORGANIC AND ACQUISITION MEANS Continue to lead New $100m facility Progressively Expansion of our Identify and execute Manage operations to the Panel Industry secured with NAB, execute further strategic partnership strat
Slide 19: Operating Specialised Automotive Aftercare and Accessory Companies
Operating Specialised Automotive Aftercare and Accessory Companies Ray Malone, Executive Chairman, ray.malone@amagroupltd.com
Slide 20: Disclaimer
Disclaimer This presentation contains summary information about AMA Group bodies corporate, or their respective directors, employees or agents, nor Limited (ABN 50 113 883 560) (“AMA Group”) and its activities current as any other person accepts liability for any loss arising from the use of this at