Ama Group Limited · ASX:AMA
Ama — Allomak — Investor Presentation (October 2007)
16 slides from Ama's investor presentation, Oct 11, 2007
Slide 1: Allomak Limited - Company Overview & Institutional Placement
For personal use only Allomak Limited - Automotive Aftermarket Group Company Overview & Institutional Placement October 2007
Slide 2: Disclaimer
Disclaimer For personal use only This material does not constitute an invitation, solicitation, recommendation or an offer to purchase or subscribe for securities. It is provided to you on the basis that you and those executives of your organisation who sight it agree to keep its contents confidenti
Slide 3: Introduction
Introduction Allomak has acquired an additional five major businesses since listing on the ASX in For personal use only August 2006, which are forecast to significantly increase financial performance: – FY08 Sales forecast $60m+ – FY08 EBIT forecast $10m+ The Company is seeking to raise $15m (over s
Slide 4: Company Overview
Company Overview Allomak was established for the purpose of acquiring and operating strong businesses For personal use only undergoing generational change with an initial focus on the automotive aftercare market, a sector valued at more than $8 billion and characterised by: – Healthy margins – Solid
Slide 5: Target Market
Target Market The “sweet spot” of acquisition activity is the overlap of three key areas For personal use only Generational Change $160b p.a. ↑$$ High Opportunities Growth Opportunities $8.1b+ p.a. Automotive Aftermarket & Related Industries 5
Slide 6: Automotive Industry
Automotive Industry Allomak’s target market is the wholesale automotive aftermarket. For personal use only The aftermarket sector as a whole maintains solid growth rates and is quite distinct from the higher volume, lower margin original equipment manufacturers (OEM) supplying the new car market and
Slide 7: Value Creation
Value Creation Management’s focus is on three key value creation areas For personal use only Enablers - Vision ACQUISITION - Strategy EXCELLENCE - Experience - People OPERATIONAL - Systems - Industry IMPROVEMENT Knowledge - Values GROUP - Incentives SYNERGIES 7
Slide 8: Major Operating Companies
Major Operating Companies Acquired prior to, or in conjunction with, IPO Acquired since IPO For personal use only Australia’s leading aftermarket WA’s leading remanufacturer bull bar supplier and supplier of brake and clutch components Australia’s leading diesel emission testing equipment Australia’
Slide 9: Shareholder Returns
Shareholder Returns Allomak has delivered a total return of 146% since listing in August 2006 with the market clearly rewarding the company for delivering on its strategy of acquiring leading companies within the For personal use only automotive aftercare market. Share Price ($) Volume $1.00 3,000,0
Slide 10: Selected Growth Highlights
Selected Growth Highlights Smash repair industry For personal use only – Significant opportunities exist to consolidate the national smash repair market – Currently a very fragmented industry with no national provider – Strong pipeline of leading businesses ready to come on board as part of a nation
Slide 11: Financial Overview
Financial Overview The five major acquisitions made since the IPO in August 2006 are forecast to significantly increase Allomak’s For personal use only financial performance. Profit will be delivered through a combination of initiatives: Base organic growth in existing businesses Value added initiat
Slide 12: Financial Health
Financial Health Key FY07 performance metrics, in the large part indicate strong underlying fundamentals, but For personal use only also highlight some further attention needed in the area of working capital management. CATEGORY TYPE FY07 BENCHMARK COMMENT Current ratio 1.3 > 1.5 Acceptable LIQUIDIT
Slide 13: Board of Directors
Board of Directors Tony possesses significant Board experience with current For personal use only position held at Bemax Ltd and Norton Gold Fields Ltd. Anthony McLellan (Non-Executive Chairman) Tony was also previously the CEO of the predecessor of Barrick Gold and President of LJ Hooker Corporatio
Slide 14: Offer Details
Offer Details 2 tranche institutional placement of 20.7m shares to raise $17m (incl. over subscriptions of $2m) For personal use only – Tranche 1 (13.0m shares) or 63% settles immediately – Tranche 2 (7.7m shares) or 37% subject to shareholder approval scheduled for 22 November 2007 Placement shares
Slide 15: Offer Timetable
Offer Timetable Trading halt Tuesday 9 October 2007 For personal use only Expressions of interest due 4pm Wednesday 10 October 2007 Dispatch of allocation offer letters Evening Wednesday 10 October 2007 Receipt of allocation offer letters 9am Thursday 11 October 2007 Announce placement to ASX 10am T
Slide 16: Investment Highlights
Investment Highlights 1. Proven management: For personal use only – Since the IPO in August 2006, Allomak has clearly delivered on its strategy through the acquisition of an additional five major businesses all meeting the strict AMA acquisition criteria – 146% total return since listing 2. Growth p