Ama Group Limited · ASX:AMA
Ama — Allomak — CapConnect Investor Forum (April 2008)
16 slides from Ama's conference presentation, Apr 17, 2008
Slide 1: CapConnect Investor Forum: Successful M&A Strategies of Publicly Listed Companies
For personal use only CapConnect Investor Forum Successful M&A Strategies of Publicly Listed Companies Sydney 17 April 2008 Presented by : Ian McKenzie Acquisitions & Integration Manager Allomak Limited
Slide 2: Agenda
Agenda For personal use only TABLE OF CONTENTS Allomak Profile and Overview Growth Strategy Objective Three Pillars of Value Creation Current Challenges Major Growth Opportunities
Slide 3: Allomak - most diversified Wholesale Auto Aftermarket player in Australia
Allomak - most diversified Wholesale Auto Aftermarket player in Aust Australia’s leading Australia’s leading aftermarket bull bar chassis dynamometer For personal use only supplier supplier A major supplier of Australia’s leading paints and automatic transmission consumables to the remanufacturer Sy
Slide 4: High calibre Board of Directors
Allomak - high calibre Board of Directors Possesses significant Board experience with current Anthony McLellan positions held at Felix Resources Ltd and Bemax Ltd. Tony was also previously the CEO of the predecessor of For personal use only Non-Executive Chairman Barrick Gold and President of LJ Hoo
Slide 5: Growth Strategy Objective
Growth Strategy Objective For personal use only Growth Strategy Objective: “To achieve superior Earnings per Share growth - delivering a top quartile share price appreciation AND a top quartile dividend yield.”
Slide 6: ALLOMAK
Allomak Pillars of Value Creation For personal use only ALLOMAK
Slide 7: Acquisition Excellence
Allomak Pillars of Value Creation – Acquisition Excellence For personal use only ACQUISITION EXCELLENCE: Buying the RIGHT businesses with the RIGHT people in the RIGHT way at the RIGHT time and ensuring the RIGHT transition
Slide 8: Acquisition Excellence (cont'd): Sweet spot of three key areas
Allomak Pillars of Value Creation – Acquisition Excellence (cont’d) Focus on the overlap of three key areas – “sweet spot” For personal use only Generational Change $160B p.a. ↑$$ High Opportunities Growth Opportunities $8.1B p.a. Automotive Aftermarket
Slide 9: Acquiring the Right Businesses
Allomak Pillars of Value Creation – Acquisition Excellence (cont’d) Acquiring the Right Businesses For personal use only Target Companies will: Be a leader/major player in a niche area of the Automotive Aftercare or related market Have a long track record of success (and be currently profitable) Hav
Slide 10: Acquisition Excellence (cont'd)
Allomak Pillars of Value Creation – Acquisition Excellence (cont’d) For personal use only ACQUISITION EXCELLENCE: Buying the RIGHT businesses - Strategic fit, Focus, Growth Potential with the RIGHT people - Skills, Culture/fit in the RIGHT way - Deal structure, Acquisition Approach at the RIGHT time
Slide 11: Operational improvement
Allomak Pillars of Value Creation – Operational improvement For personal use only PERFORMANCE IMPROVEMENT / OPERATIONAL EXCELLENCE: Succession planning methodologies Recruit, retain and reward high performers Management systems – financial, reporting, etc Focus on performance and drivers of performa
Slide 12: Group Synergies
Allomak Pillars of Value Creation – Group Synergies For personal use only GROUP SYNERGIES THE “ALLOMAK ADVANTAGE” Co-operative sales initiatives Identifying scale opportunities – e.g. buying power, sales and support, etc Share best practice improvements (“slippage”) Treasury function for investment
Slide 13: Value Creation Proposition – Current Challenges
Allomak Value Creation Proposition – Current Challenges For personal use only CURRENT CHALLENGES Prioritising Opportunities – both Internal and External Investment Resolving opportunity cost of management time spent on operational issues vs focusing on genuine growth opportunity External Environment
Slide 14: Major Growth Opportunities
Major Growth Opportunities For personal use only Auto Accessory & Component Distribution National Smash Environmental/ Repair Emissions Consolidation Testing Workshop LP Gas/ Supply Alternative Fuel
Slide 15: Ancillary Growth Opportunities
Ancillary Growth Opportunities Industrial For personal use only Auto Accessory & Component Marine Distribution National Smash Environmental/ Repair Emissions Consolidation Testing Hygiene Workshop LP Gas/ Carbon Equipment Supply Alternative Fuel Tracking Trucking / Other Transport
Slide 16: www.allomak.com
www.allomak.com For personal use only WWW.ALLOMAK.COM