Amotiv Limited · ASX:AOV
Amotiv — GUD Holdings — H1 FY22 Earnings Presentation
36 slides from Amotiv's earnings presentation, Feb 8, 2022
Slide 1: H1 FY22 Financial Result
GUD Holdings Limited ABN 99 004 400 891 H1 FY22 Financial Result Graeme Whickman, CEO & MD Martin Fraser, CFO 8 February 2022 1
Slide 2: Contents
Contents Key messages and financial overview 3 Graeme Whickman Portfolio vision, strategy and ESG 5 Graeme Whickman Automotive 8 Graeme Whickman Water 17 Graeme Whickman Financials 19 Martin Fraser Outlook 26 Projecta’s Intelli-Start jumpstarter range with world first Rapid Recharge Technology Graem
Slide 3: Key messages
Key messages 1 Automotive organic margins recovered strongly (+2.9 percentage points) versus H2 FY21 aided by margin management initiatives to combat inflationary pressures Record result driven by acquisitions and strong end user demand reflected in Group organic revenue growth of circa 6% despite 2
Slide 4: Group financial overview
Group financial overview Rebounding Automotive margins, solid organic growth and acquisitions $M H1 FY22 H1 FY21 % Change contribute to a record Group operating result • Group revenue increased 32% on the pcp underpinned by acquisitions and organic Revenue 332.0 251.5 32.0% growth4 of 5.7% Reported
Slide 5: We’re ready to meet our customers’ needs of tomorrow, today
We’re ready to meet our customers’ needs of tomorrow, today 5
Slide 6: How we are embedding ESG into our strategy and ways of working
How we are embedding ESG into our strategy and ways of working We have defined what matters most to our Key impact areas stakeholders; next we’ll set mid to long term goals Done Completed detailed materiality assessment facilitated by external experts (Q1 FY22) Key impact areas defined and aligned t
Slide 7: Building a strong, diversified, and future-facing GUD via organic and acquisition growth
Building a strong, diversified, and future-facing GUD via organic and acquisition growth Doubled automotive addressable market 1 Higher non-ICE revenue Better supply diversification From $4.3 billion2 in FY20 to $9.3 billion today Non-ICE auto revenue Supply country of origin More powertrain-agnosti
Slide 8: Automotive
GUD Holdings Limited Automotive 8
Slide 9: Automotive
Automotive Record revenue and EBIT performance % Change % Change $M H1 FY22 H2 FY21 H1 FY21 • Revenue growth of 38.3% largely driven by acquisitions HoH PCP • Organic2 revenue increased 4.6%, a particularly strong outcome given the 13% growth achieved in the pcp Automotive Revenue 272.1 246.8 196.7
Slide 10: Automotive: H1 FY22 snapshot (1 of 3)
Automotive: H1 FY22 snapshot (1 of 3) Auto Electrical, Lighting & Power Management Auto Electrical, Lighting & Power Management Griffiths Equipment (NZ) BWI • Revenue flat in H1, however grew strongly in Q2 following the • Continued strong revenue growth from FY21 into H1 FY22 hard lockdown in Q1 (w
Slide 11: Automotive: H1 FY22 snapshot (2 of 3)
Automotive: H1 FY22 snapshot (2 of 3) Powertrain Powertrain Ryco Filters AA Gaskets • Modest revenue growth (cycling strong growth in the pcp) despite lock downs • Strong revenue growth with robust demand through H1 • Continued strong product pipeline highlighted by 2nd place in the AFR Boss • Opera
Slide 12: Automotive: H1 FY22 snapshot (3 of 3)
Automotive: H1 FY22 snapshot (3 of 3) 4WD Accessories and Trailering Undercar Fully Equipped Disc Brakes Australia • Positive revenue growth due to new vehicle sales demand and customer • Strong revenue growth demand for aftersales extras despite lockdown − Domestic growth from existing and new prod
Slide 13: Vision X complements BWI and opens up US and Europe
Vision X complements BWI and opens up US and Europe Portfolio of power train agnostic and EV ready products – further reduces GUD’s exposure to 1 internal combustion engines (ICE) Large and growing addressable markets – strong positions in automotive and non-automotive Strong product line up 2 light
Slide 14: APG is a clear leader in 4WD Accessories & Trailering in ANZ
APG is a clear leader in 4WD Accessories & Trailering in ANZ Undisputed market leader in towing with strong brands and market positions across a diverse range 1 of trailering, cargo and functional accessories that are 100% non-internal combustion engine (ICE) Large and growing addressable market (la
Slide 15: Acquisitions well aligned to portfolio vision and support broader growth strategy
Acquisitions well aligned to portfolio vision and support broader growth strategy GUD Automotive Vision X G4CVA APG GUD + Vision X (4WD accessories & (core including ACS) (automotive lighting) (4WD accessories) Trailering) + G4CVA + APG Automotive Doubled addressable addressable c.$4.8 billion + c.$
Slide 16: GUD’s ‘end-to-end’ coverage of 4WD Accessories & Trailering range
GUD’s ‘end-to-end’ coverage of 4WD Accessories & Trailering range 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 wheel hitches Suspension a
Slide 17: Water
GUD Holdings Limited Water 17
Slide 18: Water
Water Strong revenue growth across several markets but COVID disruptions continue to impact operating margins $M FY22 H1 FY21 H1 % Change • Strong sales growth of 9.5% led by home pressure systems domestically and in the US, commercial pumps in Australia and pools in Europe and the US. European pool
Slide 19: Financials
GUD Holdings Limited Financials 19
Slide 20: Financial summary
Financial summary Includes organic revenue of $265.7 million (+5.7% on pcp) and $66.3 million $M H1 FY22 H1 FY21 % Change from acquisitions Higher volumes and margin management (pricing, cost control and some FX Revenue 332.0 251.5 32.0% gains), partially offset by higher supply chain costs, domesti
Slide 21: Non-operating items (pre-tax)
Non-operating items (pre-tax) $M Automotive Water Total Automotive and Unallocated Vision X acquisition support costs 1.4 1.4 AutoPacific Group acquisition support costs 2.4 2.4 Other Automotive acquisition and initiative support costs 0.1 0.1 Davey Inventory reassessment to support business realign
Slide 22: Net working capital (NWC)
Net working capital (NWC) Reported NWC increases circa $11 million net of acquisitions $000 FY22 H1 FY21 H2 FY21 H1 FY20 H1 • Extended payment terms provided to some clients as form of COVID-19 support was unwound in H1 resulting in a lower organic Period End Balances receivables balance Statutory N
Slide 23: Cash conversion and capex
Cash conversion and capex Cash conversion reflects planned investment in inventory $M H1 FY22 H1 FY21 • Strategic investment at a time of unprecedented supply chain challenges and elevated demand reflected in higher inventory levels Operating cash flow1 25.7 39.5 • Payments to suppliers includes $3.
Slide 24: Debt profile
Debt profile Funding reflects APG acquisition $M Pre APG APG Post APG • Expanded debt funding completed with existing lenders and Facilities Westpac 79.9 90.0 169.9 no underwriting fees were incurred NAB 75.0 75.0 150.0 • Arrangement fees expensed in financing costs Citi 31.3 50.0 81.3 • Maturity te
Slide 25: Balance sheet and capital management
Balance sheet and capital management Balance sheet remains solid $M H1 FY22 H1 FY21 • Successfully completed a $404.6 million equity raising via a fully underwritten Current borrowings - - institutional placement and entitlement offer to fund the acquisition of APG Non-current borrowings 566.0 152.5
Slide 26: Outlook
GUD Holdings Limited Outlook 26
Slide 27: All underlying industry trends are favourable to GUD’s expanded portfolio
All underlying industry trends are favourable to GUD’s expanded portfolio Approaching New vehicle sales1,2 normalisation of Segmentation of new vehicle sales1 in millions long-term trend % of total 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.1 1.1 1.1 1.1 1.1 1.0 21% Other 0.9 33% 52% 45% PMV 51% SUV 43% 28% 35%
Slide 28: Trading update
Trading update Muted trading conditions in some areas experienced in January but rebound Number of days under lockdown / restrictions1 expected as Omicron variant abates • COVID-related disruptions have intensified via the Omicron variant, and this has had a dampening effect on demand that is more e
Slide 29: Outlook
Outlook Underlying structural support for the automotive aftermarket and new vehicle sector is unchanged Potential COVID-19 effects • COVID-19 impacts and the more recent Omicron variant continues to create uncertainty • However, the net effect of the tailwinds and headwinds continues to demonstrate
Slide 30: Q&A
GUD Holdings Limited Q&A 30
Slide 31: Appendix
GUD Holdings Limited Appendix 31
Slide 32: COVID-19 Response Framework and Principles
COVID-19 Response Framework and Principles Continued Demand-side and Balance of ‘Defence’ supply-side focus domestic operations and ‘Offence’ • Employee health – offshore and • People Health • 20 key Defence and Offence travelling actions • Operational Health • Production ramp up, capacity and • Str
Slide 33: Acquisition: Vision X (VX)
Acquisition: Vision X (VX) Overview • High quality designer, manufacturer and supplier of forward lighting products. • Sells under Vision X brand to OEM customers in mining equipment, earth moving, fire truck, and several other specialty vehicle applications. • Trusted supplier to many strong global
Slide 34: Acquisition: AutoPacific Group (APG)
Acquisition: AutoPacific Group (APG) Overview • Industry leading designer, manufacturer and distributor of high-quality, engineered and functional automotive and lifestyle accessories • Fully powertrain-agnostic (suitable for all combustion and electric vehicle applications) product portfolio of mar
Slide 35: Cash Flow
Cash Flow $M H1 FY22 H1 FY21 Net cash flows from operating activities Cash flows from Operating Activities • Significant investment in inventory reflected in net cash inflows from operating Receipts from customers (net of GST) 372.6 261.5 facilities Payments to suppliers and employees (net of GST) (
Slide 36: 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 current as at 31 December 2021. The information in the Presentation is o