Amotiv Limited · ASX:AOV
Amotiv — GUD Holdings — H1 FY2024 Earnings Presentation
39 slides from Amotiv's earnings presentation, Feb 14, 2024
Slide 1: FY24 H1 Result
GUD Holdings Limited ABN 99 004 400 891 FY24 H1 Result Graeme Whickman, CEO & MD Martin Fraser, CFO 14 February 2024 1
Slide 2: Disclaimer
Disclaimer Important notices This Presentation has been prepared by GUD Holdings Limited (ABN 99 004 400 891) (“GUD” or “Company”). Summary information This Presentation contains summary information about GUD and its activities which is current as at the date of this presentation. The information in
Slide 3: Contents
Contents Key messages and financial overview 4 Ryco & BWI Winners at AFR Boss Most Innovative Companies Graeme Whickman GUD Innovation was on full display at the AFR BOSS Most Innovative Company Awards held in Sydney in September. Among the standout Automotive 8 performers were Ryco Filters and BWI,
Slide 4: Key messages
Key messages Result in line with expectations reflecting Ongoing investment to drive growth and Strong execution and well positioned for broadening earnings drivers and effective diversification continued growth margin management • Strong APG growth reflecting improved • Increased investment in PD a
Slide 5: Group financial overview – Continuing operations
Group financial overview – Continuing operations Result in line with expectations reflecting improved new vehicle supply, Continuing operations broadening revenue drivers and continued margin management $M FY24 H1 FY23 H17 Change • Group underlying EBITA1 increased 11.6% to $98.0m driven by: Revenue
Slide 6: Automotive 'pure play' with clear strategic imperatives
Automotive ‘pure play’ with clear strategic imperatives Strategic growth imperatives 4WD Accessories Auto Elec Powertrain Undercar and Trailering (Lighting and Power) (ICE and EV) 6
Slide 7: We continue to drive progress in support of our ESG goals
We continue to drive progress in support of our ESG goals ESG Impact Areas and Targets Progress in ESG Impact Areas Done 200kw Solar System installed and operating at Brown and Watson Melbourne warehouse and business head office Sourcing GreenPower electricity for Australian distribution businesses
Slide 8: Automotive
Segment Automotive 8
Slide 9: Automotive Performance
Automotive Performance Result reflects resilience of the aftermarket, supported by an expanding portfolio of largely $M FY24 H1 FY23 H14 Change non-discretionary products coupled with new customers and geographies • Revenue growth reflects a solid performance from ‘Core’1 Automotive Automotive Reven
Slide 10: Progress on strategic greenfield growth initiatives – FY24 investment of $6m in opex
Progress on strategic greenfield growth initiatives – FY24 investment of $6m in opex • US - Launched specialist lighting and consumables via Ultima brand - BWI product complementation progressing with VX delivering modest first revenues Hold a global leadership • UK/Europe position in specialist - V
Slide 11: Acquisition of Rindab (VX Sweden) creates European Lighting beachhead
Acquisition of Rindab (VX Sweden) creates European Lighting beachhead Revenue mix • On 1 November 2023 GUD acquired European specialist lighting distributor, Rindab for % FY23 revenue $12.2m1 representing c. 4x FY23 EBITA2 • Rindab is the distributor of Vision X products in Northern Europe. While Ri
Slide 12: CES acquisition broadens capability and reach in power management and lighting
CES acquisition broadens capability and reach in power management and lighting • GUD to acquire Caravan Electrical Solutions (CES) for $15.9m1 (headline multiple of c.4x CES current product offering FY23 EBITA2) - completion targeted for 1 March 2024 • CES’s core business is the design and supply of
Slide 13: APG
Segment APG 13
Slide 14: APG Performance
APG Performance Result in line with expectations despite ongoing supply and manufacturing challenges FY24 H1 vs. FY23 H1 Change • Revenue growth of 15.6% on the pcp largely reflects improving new vehicle volumes in Australia $M FY24 H1 FY23 H1 (pcp) − Monthly new vehicle supply across ANZ remains in
Slide 15: Strong growth in Australia APG Top 20 muted by large decline in NZ
Strong growth in Australia APG Top 202 muted by large decline in NZ (HoH) New Vehicle Sales in Key Segments and Markets: H1 FY24 vs H2 FY231 Australia: Top 20 sales up strongly HoH • Pick Up category up 15.5% for the half Australia + New Zealand = ANZ Combined • SUV sales up 10.9% Pick Up ▲ +15.5% ▼
Slide 16: APG Top 20 New Vehicle Sales Performance: Australia and New Zealand (combined)
APG Top 202 New Vehicle Sales Performance: Australia and New Zealand (combined) Sales volume volatility continues at a model level New Vehicle Sales Variance - H1 FY24 vs H2 FY231 New Vehicle Sales Variance - CY23 vs CY221 • Sales volume volatility reflects Ranger 25% Ranger 24% • OEM supply chain c
Slide 17: Key new H1 business wins - delivering on strategy in Functional Accessories (FA) and Towing
Key new H1 business wins - delivering on strategy in Functional Accessories (FA) and Towing First Toyota Hilux Functional Accessories win Sports bar Leveraging existing OEM towbar relationships, Thailand footprint and ESG credentials • First Toyota Hilux Functional Accessory win (sports bar) for nex
Slide 18: Further progress on trailering & integration
Further progress on trailering & integration Continued growth in Trailering market share Recognition of APG’s supply outperformance is driving market share • Additional capacity from APG’s Thailand facility is driving conversion of new customers and increased lines to existing customers thereby incr
Slide 19: Portfolio coverage: end to end, inside and out (pre CES acquisition)
Portfolio coverage: end to end, inside and out (pre CES acquisition) A selection of GUD brands Lighting Cargo Management Towing Trailering Driving Lights Fibreglass Canopies 4WD Spare Wheel Holders Towbars Coupling Systems Light Bars Aluminium Service Bodies Jerry Can Holders Fifth
Slide 20: Financials
Financials @UD
Slide 21: Financial summary – continuing operations
Financial summary – continuing operations $M FY24 H1 FY23 H11 Change Comments Revenue 492.6 453.5 8.6% Reflects growth in both segments Operating cost 380.6 352.5 8.0% Reflects revenue growth Underlying EBITDA2 112.0 101.0 10.9% Demonstrates ongoing focus on margin management Depreciation (14.0) (13
Slide 22: Net working capital (NWC)
Net working capital (NWC) Movement Movement NWC now stable post normalisation of elevated inventory levels $M FY24 H1 FY23 FY23 H1 vs. FY23 H1 vs. FY23 through FY23 Statutory NWC1 • Working capital managed well Inventories 207.2 243.2 293.4 (36.0) (86.2) - $7.4m movement in NWC (net of acquisitions
Slide 23: Cash conversion and capital management
Cash conversion and capital management Strong cash conversion Continuing and discontinued operations • Cash conversion of 93.5% reflects $M FY24 H1 FY23 H1 Change Operating cashflow1 76.9 60.7 26.7% − Typical seasonality between H1 and H2 +Tax paid 25.1 22.3 12.6% − Reduction in debtor factoring of
Slide 24: Balance sheet
Balance sheet Strengthening balance sheet $M FY24 H1 FY23 FY23 H1 Bank overdraft 0.7 2.8 10.0 • Net Debt/Adjusted EBITDA1,2 of 1.7x reflects further deleveraging, well within target Current Borrowings 40.2 5.2 - range Non-Current Borrowings 341.9 448.0 548.3 • Net debt of $344.4m down $58.2m from FY
Slide 25: Debt profile
Debt profile Largely fixed debt at compelling rates Maturity profile of committed debt Interest profile $m • 82% of gross debt balances fixed or hedged NAB Citi Westpac Pricoa Other • Fixed interest rate on long-term Pricoa issued notes at an average rate of 3.6% (A$273m) − Citibank, NAB and Westpac
Slide 26: Trading update and outlook
Trading update and outlook 26
Slide 27: Trading update
Trading update Automotive • Strong start to January across key business units • No significant change to garage activity levels − 2 to 3 weeks forward bookings in Vic/NSW metro and 3-4 weeks in rural areas − 1 to 2 weeks in other geographies • Seeing a shift in customer emphasis to service rather th
Slide 28: Outlook
Outlook APG Automotive • OEM order backlogs remain at elevated levels • The aftermarket is expected to remain robust in FY24 supported by further ageing of • Industry supply is improving but remains volatile between OEMs and models the car parc and ongoing resilience of the wear and repair market •
Slide 29: Q&A
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Slide 30: Appendix: FY24 H1 result
Appendix: FY24 H1 result 30
Slide 31: Positive outlook for aftermarket brands through growing and ageing parc
Positive outlook for aftermarket brands through growing and ageing parc Australian car parc showing steady growth Car parc in Australia in million units • The parc is projected to reach 20.6 million vehicles by December 20241, growing by c.481,000 units on CY23 Total parc Parc 5+ years • By CY29, th
Slide 32: Positive parc and powertrain proliferation supports resilient revenue base
Positive parc and powertrain proliferation supports resilient revenue base Segmentation of the car parc favours Car parc segmentation2,3,4 Automotive + APG revenue profile (FY23)1 accessorisation and a higher content PU SUV PMV Other opportunity per vehicle on road 79% • PU and SUV share of car parc
Slide 33: APG Top 20 New Vehicle Sales Performance: Australia
APG Top 202 New Vehicle Sales Performance: Australia New Vehicle Sales Volume (000’s) – CY23 New Vehicle Sales Variance - H1 FY24 vs H2 FY231 New Vehicle Sales Variance - CY23 vs CY221 Ranger 63.5 Ranger 37% Ranger 34% HiluX 61.1 HiluX 18% HiluX -5% RAV4 31.2 RAV4 36% RAV4 28% D-Max 29.6 D-Max 19% D
Slide 34: Powertrain - FY24 H1 snapshot
Powertrain - FY24 H1 snapshot Powertrain product category – Filtration Powertrain product category – Engine Management AUS AUS • Solid revenue growth across trade and retail • Moderate revenue growth in AAG but with strong growth IMG driven by • Growth across all strategic pillars − Electronics Re-m
Slide 35: Undercar and 4WD Accessories - FY24 H1 snapshot
Undercar and 4WD Accessories - FY24 H1 snapshot Undercar product category - DBA and ACS 4WD Accessories category - ECB and Fully Equipped AUS AUS • Domestic markets experienced soft demand conditions for both DBA and ACS • ECB Revenue run rate increased in Q2 • DBA was also challenged by mix of oper
Slide 36: Auto Electrical, Lighting and Power Management product category - FY24 H1 snapshot
Auto Electrical, Lighting and Power Management product category - FY24 H1 snapshot ANZ EMEA • Solid revenue growth supported by new product pipeline including Projecta ProWave Inverter • Private label lighting program from the ANZ product portfolio has been released ready for and Intelli-Start jump
Slide 37: Significant items (pre-tax) – H1 FY24
Significant items (pre-tax) – H1 FY24 $M Continuing Operations Discontinued Operations Total Acquisition costs relating to Rindab AB (Vision X Sweden) 0.4 0.0 0.4 Other acquisition and initiative support costs 0.2 0.0 0.2 Davey divestment related transaction costs 1.9 1.9 Davey gain on disposal 0.0
Slide 38: Reconciliation to Segment EBIT (note 5)
Reconciliation to Segment EBIT (note 5) Automotive Segment $M FY24 H1 FY23 H1 Change APG Segment $M FY24 H1 FY23 H1 Change Automotive Revenue 333.3 315.7 5.6% Revenue 159.3 137.8 15.6% Underlying EBITDA1 79.7 75.6 5.5% Underlying EBITDA1 38.3 30.3 26.2% Depreciation (8.0) (7.7) 3.8% Depreciation (6.
Slide 39: Banking covenant calculations
Banking covenant calculations Calculation of Net Interest Calculation of banking covenant EBITDA $M FY24 H1 FY23 $M FY24 H1 FY23 Reported Interest (rolling 12 months) 28.3 27.8 EBIT post AASB 16 170.6 161.6 Interest on lease liablities (4.9) (5.4) Add ROU depreciation 19.5 20.5 Adjusted Net Interest