Rpm Automotive Group Ltd. · ASX:RPM
Rpm Automotive — FY2023 Earnings Presentation
22 slides from Rpm Automotive's earnings presentation, Aug 31, 2023
Slide 1: FY23 Results
FY23 RESULTS RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 31 August 2023 RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 1
Slide 2: Agenda
AGENDA RPM at a Glance 3 Results Overview 6 Divisional performance 7 Company Strategy 12 Outlook 15 RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 2
Slide 3: Company Overview
COMPANY OVERVIEW www.rpmgroup.net.au RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 3
Slide 4: Four Complementary Divisions
FOUR COMPLEMENTARY DIVISIONS REPAIRS PERFORMANCE WHEELS & ROADSIDE MOTORSPORT & ACCESSORIES & TYRES Commercial & industrial Certified race safety wear, Bolt on vehicle parts and Distribution of wheels and tyre and auto suits and helmets accessories tyres service centres Retail Retail Retail & Wholes
Slide 5: National Coverage in the Automotive Industry
NATIONAL COVERAGE IN THE AUTOMOTIVE INDUSTRY RPM business units offer wheels, tyres, accessories and apparel to In brief both wholesale and retail (B2B commercial, industrial and consumer) customers 12 strategic acquisitions since Sept 2020 - leveraging operational Successful record of capability (s
Slide 6: Case Study: Metro Tyres
CASE STUDY Criteria • Expand the national footprint and product range to leverage operational capability to drive sales and returns Target characteristics • Existing customers already familiar with RPM products • Areas where RPM has customers and being serviced by 3rd party suppliers • Extensive who
Slide 7: Results Overview
RESULTS OVERVIEW 7 RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 7
Slide 8: FY23 Results Overview
FY23 RESULTS OVERVIEW FY23 FY22 Reconciliation of underlying FY23 FY22 EBITDA ($,000) Revenue $117m $78.8m 48% Operating profit after tax 1,769 2,831 Revenue excluding discontinued operations $109m $70.8m 54% Income tax expense 702 1,255 Gross Profit $37.0m $27.5m 35% Operating profit before tax 2,4
Slide 9: Track Record of Revenue and Earnings Growth
TRACK RECORD OF REVENUE AND EARNINGS GROWTH Sales Revenue Underlying EBITDA (by division) ($m) (by division) ($m) 140 12 120 10 Key Highlights 100 8 80 • Resilient turnover growth in FY23 6 • Organic growth of over 8% in FY23 60 4 • Sales Revenue CAGR 35% 40 • EBITDA+ CAGR 50% 2 20 0 0 FY20 FY21 FY2
Slide 10: Diversified Revenue Streams
DIVERSIFIED REVENUE STREAMS FY23 Revenue, GP Margin & EBITDA+ (by division) Revenue Gross Profit EBITDA+ $51.0m $33.5m $23.6m $15.0m $8.6m $10.5m $7.2m $3.7m $4.3m $3.2m $2.4m $1.3m Repairs & roadside Motorsport Performance & accessories Wheels & tyres REPAIRS PERFORMANCE WHEELS & ROADSIDE MOTORSPOR
Slide 11: Revenue Growth Analysis
REVENUE GROWTH ANALYSIS ($m) FY20 FY21 FY22 FY23 Revenue 35.4 45.1 78.8 117 Revenue excluding discontinued operations 33.8 41.2 70.8 109 Total Revenue Growth 12.2% 27.4% 74.7% 48.0% Revenue drivers, % of total 100% • 12 acquisitions since Sept 2020 contributed 80% more than 20% of total revenue grow
Slide 12: Cash Usage
CASH USAGE Key Highlights • Increase in NWC of $3.8m • Non-recurring cash usage of $2.2m • Payments to acquired entities $7.9m • Improved net cash flow from continuing operations of $3.7m pcp RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 12
Slide 13: Company Strategy
COMPANY STRATEGY 13 RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 13
Slide 14: Three Core Strategies to Better Service Our Customers
THREE CORE STRATEGIES TO BETTER SERVICE OUR CUSTOMERS Strategic initiatives Vertical integration Operating leverage • Identify complementary businesses • Capitalise on in house design • Consolidate brands to maximise to unlock synergies through cross capability to bring new products to brand awarene
Slide 15: Key Highlights
KEY HIGHLIGHTS RPM continued network expansion in design, manufacture, wholesale and retail VERTICALLY provides opportunities for cross selling, operational efficiency, revenue INTEGRATED MODEL diversification to push organic growth MARKET LEADING RPM owns and holds the rights to some of the most we
Slide 16: Outlook
OUTLOOK 16 RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 16
Slide 17: FY24 Outlook
FY24 OUTLOOK • RPM enters FY24 with a forecast annual revenue of $130 – 140 million • RPM enters FY24 with a projected double digit organic growth • Increased operating leverage through cross-sell and economies of scale • Growth in retail division from building out network and product expansion to b
Slide 18: Appendix
APPENDIX 18 RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 18
Slide 19: Experienced Board of Directors
EXPERIENCED BOARD OF DIRECTORS GRANT CARMAN CLIVE FINKELSTEIN LAWRENCE JAFFE GUY NICHOLLS ALEX GOODMAN NON-EXECUTIVE CHAIRMAN CEO/MANAGING DIRECTOR EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR Chartered accountant with over Co-founder of RPM Co-founder of RPM Over 30 years’ exper
Slide 20: Corporate Snapshot
CORPORATE SNAPSHOT CAPITAL STRUCTURE – 31 August 2023 REGISTER Shares on Issue 185.4m Vendors Options (Exp.03/24 @ $0.435) 6m 19% Wholesale/Retail Share Price $0.13 32% Market Capitalisation $24.1m Institutions 18% Management & Staff 31% MA JOR SHAREHOLDERS Clive Finkelstein (CEO/MD) ~12% Lawrence J
Slide 21: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER Overview This document is issued by RPM Automotive Group Limited ACN 002 527 906 RPM (“RPM Automotive” or “RPM”) on 31 August 2023. Summary Information This document contains summary information about RPM Automotive and its associated and proposed associated entities an
Slide 22: Media & Investors
MEDIA & INVESTORS E: INVESTORS@RPMGROUP.NET.AU RPM AUTOMOTIVE GROUP LTD (ASX: RPM) www.rpmgroup.net.au RPM AUTOMOTIVE GROUP LTD (ASX: RPM) 22