Ama Group Limited · ASX:AMA
Ama — FY2020 Earnings Presentation
30 slides from Ama's earnings presentation, Aug 26, 2020
Slide 1: FY2020 Results Presentation
Page 1 FY2020 RESULTS PRESENTATION 26 AUGUST 2020 amagroupltd.com
Slide 2: World Class Automotive Solutions
Page 2 WORLD CLASS AUTOMOTIVE SOLUTIONS
Slide 3: Disclaimer
Page 3 Disclaimer. This presentation contains summary information about AMA Group Limited (ABN 50 113 883 560) (“AMA Group”) and its activities current as at the date of this presentation. The information in this presentation is of general background and does not purport to be complete. It should be
Slide 4: Contents
Page 4 Contents. AMA Group Overview Page 5 AMA Group Financial Information for FY 2020 Page 9 Divisional Performance Page 18 Strategy and Outlook Page 23 Other information Page 28
Slide 5: AMA Group Overview
AMA GROUP OVERVIEW &y AMAGROUP
Slide 6: Highlights
Page 6 Highlights. AMA is the market leader in panel repair • Step change in FY2020 through the acquisition of Capital SMART Capital SMART integration • Integration complete (excluding paint) 8 months after acquisition • Revised terms for motor repair partnership between Capital SMART and Suncorp ag
Slide 7: FY2020 Results Highlights
Page 7 FY2020 Results Highlights. Full year results - Group • FY2020 Group Normalised EBITDAI of $53 million – better than anticipated going into COVID-19 • The Group traded profitably and remained cashflow positive (including the Government wage subsidy programs) during the height of the crisis • O
Slide 8: COVID-19 Impact and Recovery
Page 8 COVID-19 Impact and Recovery. • The restrictions imposed by the Australian and New Zealand governments in response to COVID-19 impacted kilometres travelled, which had a direct impact on volume and revenue generation • During the COVID 19 pandemic, the Group implemented many cost management a
Slide 9: AMA Group Financial Information for FY2020
Page 9 AMA GROUP FINANCIAL INFORMATION FOR FY2020
Slide 10: Summary Financial Performance (Pre-AASB 16)
Page 10 Summary Financial Performance (Pre-AASB 16). SUMMARY FINANCIAL PERFORMANCE FY 2020 FY 2019 CHANGE FOR THE YEAR ENDED 30 JUNE PRE-AASB 16 STATUTORY AUD $'000 AUD $'000 AUD $'000 % • Results include 8 months of Capital SMART and ACM Parts Revenue and other income from continuing operations 888
Slide 11: Statutory Financial Performance
Page 11 Statutory Financial Performance. FY 2020 STATUTORY RESULTS FY 2020 FY 2019 CHANGE FOR THE YEAR ENDED 30 JUNE STATUTORY STATUTORY • Results include 8 months of AUD $'000 AUD $'000 AUD $'000 % Capital SMART and ACM Parts • Financial performance Revenue and other income from continuing operatio
Slide 12: Summary Financial Position
Page 12 Summary Financial Position. SUMMARY FINANCIAL POSITION FY 2020 AASB 16 FY 2020 FY 2019 CHANGE AS AT 30 JUNE STATUTORY ADJUSTMENT PRE-AASB 16 STATUTORY AUD $'000 AUD $'000 AUD $'000 AUD $'000 AUD $'000 % • Financial position is impacted by the acquisition of Capital SMART, resulting in Cash a
Slide 13: AMA Delevered during 2H FY 2020
Page 13 AMA Delevered during 2H FY 2020. NET DEBT FY 2020 HY 2020 CHANGE AS AT 30 JUNE AND 31 DECEMBER STATUTORY STATUTORY AUD $'000 AUD $'000 AUD $'000 % Financial liabilities - drawn cash facilities 340,000 290,000 50,000 17.2% Cash and cash equivalents (112,916) (48,510) (64,406) 132.8% Net debt
Slide 14: Effects of AASB 16 – Leasing Standard
Page 14 Effects of AASB 16 – Leasing Standard. SUMMARY FINANCIAL PERFORMANCE FY 2020 AASB 16 FY 2020 FOR THE YEAR ENDED 30 JUNE STATUTORY ADJUSTMENT PRE-AASB 16 AUD $'000 AUD $'000 AUD $'000 • The Group adopted the new lease accounting standard AASB 16 Leases from 1 July 2019. Under the transition m
Slide 15: Summary Operating Cash Flows
Page 15 Summary Operating Cash Flows. SUMMARY OPERATING CASH FLOWS FY2020 AASB 16 FY2020 FY2019 CHANGE FOR THE YEAR ENDED 30 JUNE STATUTORY ADJUSTMENT PRE-AASB 16 STATUTORY AUD $'000 AUD $'000 AUD $'000 AUD $'000 AUD $'000 % Receipts from customers 996,432 - 996,432 628,623 367,810 58.5% Market ince
Slide 16: Operating Cash Flow Reconciliation
Page 16 Operating Cash Flow Reconciliation. OPERATING CASH FLOW RECONCILIATION FY 2020 FY 2019 FOR THE YEAR ENDED 30 JUNE STATUTORY STATUTORY AUD $'000 AUD $'000 • Operating cash flows impacted by the market incentive tranche received as part of the Capital SMART acquisition Profit / (loss) before i
Slide 17: Summary Investing and Financing Cash Flows
Page 17 Summary Investing and Financing Cash Flows. SUMMARY INVESTING AND FINANCING CASH FLOWS FY2020 AASB 16 FY2020 FY2019 CHANGE FOR THE FULL YEAR ENDED 30 JUNE STATUTORY ADJUSTMENT PRE-AASB 16 STATUTORY AUD $'000 AUD $'000 AUD $'000 AUD $'000 AUD $'000 % Net cash inflows provided by operating act
Slide 18: Divisional Performance
Page 18 DIVISIONAL PERFORMANCE
Slide 19: Vehicle Panel Repairs – Trading Performance
Page 19 Vehicle Panel Repairs – Trading Performance. SUMMARY FINANCIAL PERFORMANCE FY 2020 FY 2019 CHANGE FOR THE FULL YEAR ENDED 30 JUNE AUD $'000 AUD $'000 AUD $'000 % Revenue and other income from continuing operations 788,527 519,955 268,572 51.7% EBITDAI 95,772 46,623 49,149 105.4% AASB16 adjus
Slide 20: Vehicle Panel Repairs – National Footprint
Page 20 Vehicle Panel Repairs – National Footprint. VEHICLE PANEL REPAIR SITE LOCATION JUN-20 JUN-19 Victoria 65 47 Queensland 34 27 Western Australia 14 12 New South Wales 38 26 Australian Capital Territory 9 7 South Australia 6 3 VEHICLE PANEL REPAIR SITE COUNT JUN-20 JUN-19 Tasmania 9 7 New Zeala
Slide 21: Vehicle Panel Repairs – Profitability Improvement in FY2021
Page 21 Vehicle Panel Repairs – Profitability Improvement in FY2021. • The integration of Capital SMART is complete, 8 months post acquisition – Rollout of new paint product through the Capital SMART network is well progressed and expected to deliver meaningful synergies – Consumables in place • On
Slide 22: Automotive Parts and Services (APAS) – Trading performance
Page 22 Automotive Parts and Services (APAS) – Trading performance. SUMMARY FINANCIAL PERFORMANCE FY2020 FY2019 CHANGE FOR THE YEAR ENDED 30 JUNE AUD $'000 AUD $'000 AUD $'000 % Revenue and other income from continuing operations 100,274 86,734 13,540 15.6% EBITDAI 7,842 12,495 (4,653) (37.2%) AASB1
Slide 23: Strategy and Outlook
STRATEGY AND OUTLOOK &y AMAGROUP
Slide 24: Update on Key Operational Deliverables
Page 24 Update on Key Operational Deliverables. Status Integration of Capital SMART and ACM Parts complete – deliver in excess of $17 million Ongoing synergies by the end of FY2021 Finalise price and volume negotiations with Suncorp under the new long term contract (MRSA) – deliver increased Capital
Slide 25: Growth Strategy Remains a Focus
Page 25 Growth Strategy Remains a Focus. • There remain significant growth opportunities for AMA across all of its operations • AMA continues to assess a domestic pipeline of strategically attractive and value accretive bolt-on M&A opportunities to enhance our organic growth profile – As a result of
Slide 26: Other areas of strategic focus for FY2021
Page 26 Other areas of strategic focus for FY2021 • Diversify range of services to broaden coverage of vehicle repair market • Focus on fleet customer solutions via greenfield or brownfield platforms • Capitalise on industry technology advancements through innovation • Accelerate the organisation’s
Slide 27: Key Milestones H1 FY2021
Page 27 Key Milestones H1 FY2021 Complete BASF paint roll out to all Capital SMART sites Meet Bank Facility undertakings for Q2 Continue to drive further scale benefits to deliver additional synergies beyond the $17m run rate identified and on track to be delivered in FY2021 Re-establish full networ
Slide 28: Other Information
OTHER INFORMATION &y AMAGROUP
Slide 29: Normalisations
Page 29 Normalisations. NORMALISATIONS FY 2020 FY 2019 CHANGE AUD $'000 AUD $'000 AUD $'000 % • Abnormal costs are Acquisitions 9,849 1,494 8,355 559.2% predominately due to the Board and other officers restructure 1,795 - 1,795 100.0% acquisition costs of Capital Integration 726 900 (174) (19.3%) S
Slide 30: FY20 Acquisitions
Page 30 FY20 Acquisitions. ACQUISITIONS # SITES DATE Vehicle Panel Repairs Smashcare Group 4 29-Aug-19 Diplocks Collision Repair Centre 1 13-Sep-19 All Transport Crash Repairs 1 30-Sep-19 Capital SMART Group 51 31-Oct-19 BF Panels 1 31-Dec-19 Luxury Bodyshop 1 24-Feb-20 Graeme Hull Smash Repairs 2 0