Ama Group Limited · ASX:AMA
Ama — H1 2018 Earnings Presentation
22 slides from Ama's earnings presentation, Mar 1, 2018
Slide 1: FY2018 Half Year Results Presentation
FY2018 Half Year Results Presentation 1 March 2018
Slide 2: AMA Group Overview
AMA Group Overview Vehicle Protection Automotive Electrical & Cable Automotive Component Vehicle Panel Repair Products & Accessories Accessories Remanufacturing Brands • Australian leader in the automotive aftercare and accessories market • An ASX 300 Company (ASX:AMA) with a strong Balance Sheet; h
Slide 3: Strong Performance Year on Year
Strong Performance Year on Year • Revenue up 27.4% to • Normalised Cash $228.4m Earnings up 21.9% to • Normalised EBITDA $21.6 m up 27.5% to $26.2m • Normalised cash • Normalised NPBT up conversion ratio at 30.9% to $19.2m 82.3% Cash Profit Earnings Shareholder Investment Returns • Investing Cash Fl
Slide 4: Revenue Bridge
Revenue Bridge Deferred Income – Market Investment Incentive Amortisation Jun 16 Base - Micra, BDS & Keswick Jun 14 Base - All panel acq. pre FY15 Dec 16 Base - Direct One, Trend, Highland, Joondalup, Woollards, Mitcham Jun 15 Base - RMA, BMB and Shipstone Jun 17 Base - Geelong, Canberra, Laverton,
Slide 5: Normalisation of EBITDA
Normalisation of EBITDA ($’000) Dec 17 Dec 16 EBITDA – Reported 20,623 18,357 Greenfield Start Ups 2,250 250 Blackstone Private Equity Due Diligence Costs 916 - Business Acquisition expenses 899 453 Site Integrations 500 300 IT Roll Out 450 - Employee Equity Plan expense 368 192 Site Closures, Restr
Slide 6: EBITDA to Operating Cash Flow
EBITDA to Operating Cash Flow ($’000) Dec 17 Dec 16 EBITDA – Reported 20,623 18,357 Interest Paid (188) (82) Deferred Income Amortisation (3,525) (2,396) Equity Issued As Employment Condition 368 218 Other Non Cash Items (913) (414) Cash Earnings (pre tax) 16,365 15,683 Income Tax Paid (5,466) (5,02
Slide 7: Investment Cash Flows
Investment Cash Flows ($’000) Dec 17 Dec 16 Capital Expenditure - Greenfields 1 2,646 - Capital Expenditure - Other (Maintenance) 2 3,461 5,827 6,107 5,827 Acquisition of Existing Businesses 9,528 2,648 Investment in Automotive Solutions Group Ltd 1,140 - Loan to Automotive Solutions Group 2,901 - O
Slide 8: Free Cash Flow
Free Cash Flow ($’000) Dec 17 Dec 16 Cash Earnings (pre tax) 16,365 15,683 Income Tax Paid (5,466) (5,020) Other Working Capital Movement 293 (984) Net Cash Flow From Operations 11,192 9,679 Maintenance Capital Expenditure (3,461) (5,827) Free Cash Flow 7,731 3,852 1 March 2018 FY2018 Half Year Resu
Slide 9: Shareholder Returns
Shareholder Returns Dec 17 Dec 16 Change 1 Change 1 ($’000) (%) Share Price - Closing 1.04 0.98 0.06 5.6% Basic EPS – Reported (cps) 1.48 1.71 (0.23) (13.5) Basic EPS – Normalised (cps) 2.60 2.11 0.49 23.0 Current Ratio 0.84 0.81 0.03 3.7 Current Ratio ex non cash items 0.95 0.96 (0.01) (1.1) Gearin
Slide 10: Vehicle Panel Repair
Vehicle Panel Repair Dec 17 Dec 16 Change 1 Change 1 ($’000) (%) Sales 198,018 149,313 48,705 32.6 Gross Margin ($’000) 2 110,980 85,520 25,460 29.8 Gross Margin (%) 56.1 57.3 (1.2) (2.1) Comments: • National footprint with 106 sites across Australia • Acquired 10 businesses and executed 4 “greenfie
Slide 11: National Footprint of 106 Panel Repair Shops
National Footprint of 106 Panel Repair Shops Victoria 41 Queensland 20 Western Australia 10 New South Wales 18 Australian Capital Territory 8 South Australia 3 Tasmania 5 New Zealand 1 106 Network – 30 June 2017 86 Prestige 3 Acquired 17 Traditional 77 Greenfields 4 Exclusive 23 Disposed (1) Mechani
Slide 12: Vehicle Protection Products & Ute Accessories
Vehicle Protection Products & Ute Accessories Dec 17 Dec 16 Change 1 Change 1 ($’000) (%) Sales 12,604 14,727 (2,123) (14.4) Gross Margin ($’000) 2 6,023 6,700 (677) (10.1) Gross Margin (%) 47.8 45.5 2.3 5.1 Comments: • Leading manufacturer of premium quality alloy bull bars • Prominent in the marke
Slide 13: Automotive Electrical & Cable Accessories
Automotive Electrical & Cable Accessories Dec 17 Dec 16 Change 1 Change 1 ($’000) (%) Sales 8,495 7,919 576 7.3 Gross Margin ($’000) 2 2,719 2,663 56 2.1 Gross Margin (%) 32.0 33.6 (1.6) (4.8) Comments: • Product innovation creating quality revenue and margin opportunities • Pursuing broader product
Slide 14: Automotive Component Remanufacturing
Automotive Component Remanufacturing Dec 17 Dec 16 Change 1 Change 1 ($’000) (%) Sales 5,851 4,927 924 18.8 Gross Margin ($’000) 2 2,119 1,929 190 9.8 Gross Margin (%) 36.2 39.1 (2.9) (7.4) Comments: • Solid organic growth profile within FluidDrive • Strong management and team buy-in are delivering
Slide 15: ACAD New Business Units Integration Plan
ACAD New Business Units Integration Plan ▪ In January 2018, AMA Group acquired full ownership of Automotive Solutions Group Limited. ▪ AMA’s long term plan is to utilise its significant experience in business turnaround strategies, to bring the group of businesses together in achieving common profit
Slide 16: Restructure after Integration of ASG
Restructure after Integration of ASG Vehicle Protection Automotive Electrical Automotive Automotive Products & Ute & Cable Accessories / Component Workshops and Accessories 4x4 Accessories Remanufacturing Performance Manufacturing Distribution Products 1 March 2018 FY2018 Half Year Results Presentat
Slide 17: Strategy / Outlook
Strategy / Outlook Initiatives • Aggressively participate in the Panel Industry consolidation • Identify and execute further “Greenfield” opportunities in Vehicle Panel Repair division • Prioritize and continually drive vertical integration across Vehicle Panel Repair division • Renegotiate new stra
Slide 18: Blackstone Private Equity Proposal
Blackstone Private Equity Proposal ▪ On 29 January 2018, AMA Group Limited confirmed that it has received a confidential, non- binding, conditional, indicative proposal from Blackstone Private Equity in relation to AMA’s Panel business. ▪ This indicative proposal values the Panel business at $530 mi
Slide 19: Summary
Summary ✓ Leading provider of Australian automotive aftercare services and accessories ✓ Cemented position as Australia’s leading consolidator in the panel repair market ✓ Strong balance sheet with ability to take on additional leverage ✓ Strong cash generation business model ✓ Growing exclusive pan
Slide 20: Disclaimer
Disclaimer This presentation contains summary information about AMA Group Limited (ABN 50 113 883 560) (“AMA Group”) and its activities current as at the date of this presentation. The information in this presentation is of general background and does not purport to be complete. It should be read in
Slide 21: Appendix A - Market Investment Incentive
Appendix A - Market Investment Incentive ($’000) Dec 17 Dec 16 Deferred Income - Opening Balance 14,532 20,019 Receipt - - Amortisation (3,525) (2,396) Deferred Income - Closing Balance 11,007 17,623 Classified as: Current 7,000 5,100 Non Current 4,007 12,523 11,007 17,623 1 March 2018 FY2018 Half Y
Slide 22: Appendix B - NPBT and NPAT Normalisation
Appendix B - NPBT and NPAT Normalisation Attributable to Members NPBT NPAT Dec 17 Dec 16 Dec 17 Dec 16 Reported 12,272 12,176 7,660 8,548 Greenfield Start Ups 2,250 250 1,575 175 Blackstone PE Due Diligence Costs 916 - 916 - Business Acquisition expenses 899 453 899 453 Site Integrations and IT Roll