Uni-Select — Non-Deal Roadshow (September 2015)
34 slides from Uni-Select's roadshow presentation, September 2015
Slide 1: Shifting Gears: Better positioned than ever to deliver growth
Empowered by customer experience SHIFTING GEARS Better positioned than ever to deliver growth Uni-Select TSX: UNS September 2015
Slide 2: About this presentation: Forward-looking information
About this presentation FORWARD-LOOKING INFORMATION The information provided in this presentation includes some forward-looking information, which includes certain risks and uncertainties, which may cause the final results to be significantly different from those listed or implied within this news r
Slide 3: About this presentation
About this presentation On February 9, 2015, Uni-Select has entered into an agreement for the sale of substantially all of the assets of Uni-Select USA, Inc. and Beck/Arnley Worldparts, Inc. to an affiliate of Icahn Enterprises L.P. Uni-Select completed this transaction on June 1st, 2015. This prese
Slide 4: The strength of our network
The strength of our network FINISHMASTER CANADA 2,300 team members 3 10 DISTRIBUTION CENTRES sharing a goal: +168 21+ CORPORATE STORES to provide our STORES OWNED BY customers with a N/A 1,155 INDEPENDENT WHOLESALERS truly superior experience AUTO SERVICE SHOPS AND +11,000 15,000+ COLLISION CENTRES
Slide 5: A key link in the supply chain
A key link in the supply chain Uni-Select is empowered by strong long-term relationships with its supply partners to provide an unmatched range of products. DIRECT SHIPPING MANUFACTURERS INSTALLERS INDEPENDENT COLLISION WHOLESALERS REPAIR SHOPS UNI-SELECT DISTRIBUTION CENTRES NATIONAL AND CORPORATE
Slide 6: A network of distribution centres and stores
A network of distribution centres and stores Uni-Select Canada DCs Uni-Select Canada stores FinishMaster DCs FinishMaster stores p6
Slide 7: Supporting numerous entrepreneur wholesalers in Canada
Supporting numerous entrepreneur wholesalers in Canada Our wholesaler together with our corporate stores serve a vast number of auto service centres in Canada. p7
Slide 8: Leading the paint and related products distribution in the U.S.
Leading the paint and related products distribution in the U.S. FinishMaster serves collision repair shops and networks across 28 U.S. states. p8
Slide 9: A Corporation standing out
A Corporation standing out Strong focus on Commercial sales (90% of our business) Strong leadership position in the paint distribution Enviable position with network of collision centres and independent wholesalers Exceptional product offering combining National brand- name products and private-labe
Slide 10: Our approach
Our approach TEAM MEMBERS CUSTOMERS PRODUCTS LOGISTICS AND COMMUNITY We are dedicated We are proud to We are constantly Our team’s to providing offer a unique and improving our creativity and competitive and “à diverse array of procedures to ingenuity are la carte” solutions products that adapt to a
Slide 11: Collision repair centres turning to FinishMaster
Collision repair centres turning to FinishMaster FinishMaster is dedicated to meeting your shop’s needs Inventory management program Customized, efficient procedures Improved customer Multiple ordering options on-boarding process Scaled reporting systems New customer welcome Technical resources pack
Slide 12: Comprehensive business solutions for independent wholesalers in Canada
Comprehensive business solutions for independent wholesalers in Canada Uni-Select gives its customers the power to deliver competitive service to installers Dual sourcing model Single-platform technology Reputed banner programs Connectivity solutions National and regional accounts Loyalty programs p
Slide 13: Supporting the growth of auto service centres
Supporting the growth of auto service centres Uni-Select helps shops manage their business their way while benefitting from the power of a network Flexible program options Effective product distribution Technical and business training Comprehensive warranty coverage Loyalty programs Over 3,100 repai
Slide 14: Part of the largest network of collision repair centres in Canada
Part of the largest network of collision repair centres in Canada Through Carrossier ProColor and CSN Collision & Glass, a network of over 300 collision repair shops, carefully selected based on quality criteria National service agreements with insurance providers Dedicated, well-trained technicians
Slide 15: Products
PRODUCTS More than 2 million automotive products available Almost 30,000 automotive paint and related products Uni-Select deals with the world’s OUTSTANDING largest and most trusted PRODUCT manufacturers of automotive parts OFFERING and paint. Under-the-hood parts Under-the-car parts We optimize eve
Slide 16: Meeting our customers' every needs
Meeting our customers’ every needs Uni-Select’s private-label products offering provide excellent quality at competitive price High-quality Economical High-quality, High-quality Launched in friction products with competitively abrasives, 2014, Mätkig products, entry-level priced wipes, marking featu
Slide 17: Dedicated to efficient customer service
Dedicated to efficient customer service Uni-Select’s sales culture prioritizes external and internal customer service through permanent improvement programs Powerful systems Inventory visibility and management National DC in Canada Order accuracy • 100,000 sq ft • 6,000 SKUs in inventory Integrated
Slide 18: Team members
TEAM MEMBERS Our vision of putting the customer first begins with the best team in the business. A team with the remarkable ability to innovate and reinvent themselves. Uni-Select is empowered Team members enjoying many by its dedicated team, the advantages and having a high level of job driving for
Slide 19: Stimulating work environment
Stimulating work environment SAFETY: OUR FIRST PRIORITY Our team members’ safety and well-being is of utmost importance to Uni-Select. We analyze risks in order to anticipate and prevent workers’ exposure to potential dangers. We create plans to fulfill all duty-of-care and compliance obligations, t
Slide 20: Driving results, delivering returns
Driving results, delivering returns The cornerstone of Uni-Select’s vision of sound financial management has always been to balance strategic investments to support the needs of its customers, ensure long-term growth and allow for optimal return to its shareholders. p20
Slide 21: Transaction Highlights
Transaction Highlights On February 9, 2015, Uni-Select entered into an agreement to sell its US automotive parts distribution activities for approximately US$340 million, based on the net tangible book value of assets Uni-Select completed this transaction on June 1st 2015. Transaction benefits for U
Slide 22: Transaction Highlights: post-transaction profile
Transaction Highlights 1 POST-TRANSACTION CLOSING CANADA % of total sales (PF): 45% Sales approx. $1.1 billion annually EBITDA margin between 7% and 8% USA debt: free % of total sales (PF): 55% Capex: approx. $15M Tax rate: estimated at 35% 1 Pro Forma, excluding Automotive USA and Beck/Arnley asset
Slide 23: 2nd Quarter ended June 30th: Sales
2nd Quarter ended June 30th 2015 quarterly results include two months of operations of the Uni-Select USA and Beck/Arnley assets sold June 1st 2015. In millions US$ Sales Sales by segment YTD 478.7 411.7 408.3 413.1 Paint and related products Automotive products * Q1- Q2- Q1- Q2- 2015 2015 2014 2014
Slide 24: 2nd Quarter ended June 30th: EBITDA and earnings
2nd Quarter ended June 30th 2015 quarterly results include two months of operations of the Uni-Select USA and Beck/Arnley assets sold June 1st 2015. In millions US$, except per share amounts Adjusted earnings ** Adjusted EBITDA * 20.0 31.1 31.3 16.5 19.5 20.8 10.0 9.7 $0.94 $0.77 $0.47 $0.46 Q1- Q2-
Slide 25: Fiscal Year Financial Highlights: Sales
Fiscal Year Financial Highlights In millions US$ SALES 1,285 1,781 1,798 1,788 1,237 2010 2011 2012 20131 2014 FX (1:1) (1:1.03) (1:1.10) 2013 and 2014 results impacted by US reorganisation and currency headwind p25
Slide 26: Fiscal Year Financial Highlights: EBITDA
Fiscal Year Financial Highlights In millions US$, except percentages EBITDA* ADJUSTED EBITDA* 105.8 111.4 105.5 101.2 97.8 94.8 80.6 75.1 68.6 57.2 6.3% 5.9% 5.3% 5.7% 6.2% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 *Non-IFRS Financial measures p26
Slide 27: Fiscal Year Financial Highlights: Net and adjusted earnings
Fiscal Year Financial Highlights In millions US$, except per share amounts NET EARNINGS ADJUSTED EARNINGS* 57.8 55.3 53.9 50.7 50.1 48.5 45.9 44.2 29.4 21.3 $2.29 $2.49 $1.36 $1.00 $2.36 $2.46 $2.67 $2.12 $2.37 $2.60 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 *Non-IFRS Financial measures p27
Slide 28: Looking at the road ahead
Looking at the road ahead Uni-Select evolves in an industry poised for more growth and intends to seize the strategic opportunities that arise. p28
Slide 29: U.S. collision repair market
U.S. collision repair market 13,345,000 Insurance claim accidents 10,245,000 3,100,000 repairable total loss $2,750 average/unit $8,300 average/unit $31.4 billion total repair revenue $3.2 billion + paid by consumer $28.2 billion paid by insurance $25.7 billion paid by insurance $53.9 billion $2.5 b
Slide 30: Average Age of Vehicles in North America
Average Age of Vehicles in North America In years 11.10 11.30 11.40 11.40 11.45 10.80 10.00 10.30 10.60 9.80 9.26 8.94 9.05 9.17 9.23 9.26 9.24 9.23 9.21 9.23 2007 2008 2009 2010 2011 2012 2013F 2014F 2015F 2016F Canada US p30
Slide 31: Total North American Light Vehicle Population
Total North American Light Vehicle Population In millions Total Light Vehicles in Canada and U.S. 24 2003 to 2013 260 Canada Light Vehicle Registrations U.S Light Vehicle Registrations 23 250.4 251.0 255 249.1 23.4 22 246.8 250 244.0 22.5 22.0 22.2 248.4 245 21 239.3 21.7 246.8 21.2 244.0 240 20 241
Slide 32: Sales of new vehicles
Sales of new vehicles In thousands NEW VEHICLES SOLD 16,500 1,876 1,849 15,380 1,743 14,310 1,557 1,586 12,660 1,461 11,500 10,300 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 USA CANADA New light vehicle registrations continue to recover. New light vehicle registrations up 7.4% from
Slide 33: Canadian light vehicle registrations by vehicle age
Canadian light vehicle registrations BY VEHICLE AGE – 2013 PERIOD y Vehicle Age – 2013 period 2/3 12+ years 1-3 years 17.8% of the vehicles are 25.7% six years and older 4-5 years 13.1% 8-12 years 6-7 years 29.5% 13.9% p33
Slide 34: Rising length of vehicle ownership
Rising length of vehicle ownership Up 24 months since 2001 72-month car loans becoming the norm Source : R.L. Polk & Company p34