Ama Group Limited · ASX:AMA
Ama — Investor Presentation (February 2020)
26 slides from Ama's investor presentation, Feb 26, 2020
Slide 1: First Half to 31 December 2019 Results Presentation
Page 1 FIRST HALF TO 31 DECEMBER 2019 RESULTS PRESENTATION 26 FEBRUARY 2020 amagroupltd.com
Slide 2: World Class Automotive Solutions
Page 2 WORLD CLASS AUTOMOTIVE SOLUTIONS
Slide 3: Disclaimer
Page 3 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
Slide 4: Contents
Page 4 Contents. AMA Group Overview Page 5 AMA Group Financial Information Page 11 Divisional Performance Page 18 Strategy and Outlook Page 22 Appendices Page 24
Slide 5: AMA Group Overview
AMA GROUP OVERVIEW &y AMAGROUP
Slide 6: Highlights
Page 6 Highlights. Growth strategy on track - very strong strategic progress with the acquisition of Capital SMART and ACM Parts now completed - a game changer for the Group which nearly doubles the size of the Group with revenue projected to be in excess of $1b in FY 21. Capital SMART integration i
Slide 7: Highlights
Page 7 Highlights. Disappointing first half financial result, impacted by: • Reduced repair volumes due to prolonged dry weather and lower claims frequency (Confirmed by Suncorp in recent releases); • Static pricing of repairs and rising costs associated with parts and new vehicle technologies (Adva
Slide 8: Key impacts to H1 2020
Page 8 Key impacts to H1 2020. Notes: 1. Normalised EBITDAI is pre-AASB 16 and after normalisations (e.g. Transaction costs for Capital SMART and ACM Parts).
Slide 9: FY 2020 Guidance range remains
Page 9 FY 2020 Guidance range remains. Change from H1 2020 AMA reaffirms our previous guidance of FY 2020 Normalised EBITDAI in the range of $73 to $77 million.
Slide 10: Key Operational Deliverables to 30 June 2020
Page 10 Key Operational Deliverables to 30 June 2020. Timing Complete the integration of Capital SMART and ACM Parts – deliver in excess of $17 Q4 million synergies in FY 21 Finalise advance stage price and volumes negotiations with Suncorp under the new 15 Q3 year contract (MRSA) – deliver increase
Slide 11: AMA Group Financial Information
Page 11 AMA GROUP FINANCIAL INFORMATION
Slide 12: H1 2020 Statutory Result
Page 12 H1 2020 Statutory Result. H1 2020 STATUTORY RESULTS HY 2020 HY 2019 CHANGE • Results include 2 months FOR THE HALF YEAR ENDED 31 DECEMBER STATUTORY STATUTORY of Capital SMART and ACM AUD $'000 AUD $'000 AUD $'000 % Parts. • Financial performance Revenue from continuing operations 396,114 298
Slide 13: Normalised EBITDAI (Pre-AASB 16)
Page 13 Normalised EBITDAI (Pre-AASB 16). SUMMARY FINANCIAL PERFORMANCE HY 2020 HY 2019 CHANGE FOR THE HALF YEAR ENDED 31 DECEMBER PRE-AASB 16 STATUTORY • Results include 2 months AUD $'000 AUD $'000 AUD $'000 % of Capital SMART and ACM Parts. Revenue from continuing operations 396,114 298,050 98,06
Slide 14: Effects of AASB 16 – Leasing Standard
Page 14 Effects of AASB 16 – Leasing Standard. SUMMARY FINANCIAL PERFORMANCE HY 2020 AASB 16 HY 2020 FOR THE HALF YEAR ENDED 31 DECEMBER STATUTORY ADJUSTMENT PRE-AASB 16 • The Group adopted the new leases AUD $'000 AUD $'000 AUD $'000 accounting standard AASB 16 Leases from 1 July 2019. Under the tr
Slide 15: Summary Financial Position
Page 15 Summary Financial Position. SUMMARY FINANCIAL POSITION HY 2020 AASB 16 HY 2020 FY 2019 CHANGE AS AT 31 DECEMBER 2019 AND 30 JUNE 2019 STATUTORY ADJUSTMENT PRE-AASB 16 STATUTORY • Financial position is AUD $'000 AUD $'000 AUD $'000 AUD $'000 AUD $'000 % significantly impacted by the acquisiti
Slide 16: Summary Operating Cash Flows
Page 16 Summary Operating Cash Flows. SUMMARY OPERATING CASH FLOWS HY 2020 AASB 16 HY 2020 HY 2019 CHANGE FOR THE HALF YEAR ENDED 31 DECEMBER STATUTORY ADJUSTMENT PRE-AASB 16 STATUTORY AUD $'000 AUD $'000 AUD $'000 AUD $'000 AUD $'000 % Receipts from customers 450,623 - 450,623 344,001 106,622 31.0%
Slide 17: Summary Investment and Financing Cash Flows
Page 17 Summary Investment and Financing Cash Flows. SUMMARY INVESTING AND FINANCING CASH FLOWS HY 2020 AASB 16 HY 2020 HY 2019 CHANGE FOR THE HALF YEAR ENDED 31 DECEMBER STATUTORY ADJUSTMENT PRE-AASB 16 STATUTORY AUD $'000 AUD $'000 AUD $'000 AUD $'000 AUD $'000 % Net cash inflows provided by opera
Slide 18: Divisional Performance
Page 18 DIVISIONAL PERFORMANCE
Slide 19: Vehicle Panel Repairs
Page 19 Vehicle Panel Repairs. SUMMARY FINANCIAL PERFORMANCE 1 HY 2020 HY 2019 CHANGE FOR THE HALF YEAR ENDED 31 DECEMBER AUD $'000 AUD $'000 AUD $'000 % Revenue from continuining operations 352,105 257,078 95,027 37.0% EBITDA 37,876 20,705 17,171 82.9% AASB 16 adjustment for occupancy costs (17,898
Slide 20: National Footprint
Page 20 National Footprint. VEHICLE PANEL REPAIR SHOP LOCATION DEC-19 JUN-19 Victoria 67 47 Queensland 36 27 Western Australia 14 12 New South Wales 41 26 Australian Capital Territory 9 7 VEHICLE PANEL REPAIR SHOP COUNT DEC-19 JUN-19 South Australia 6 3 Tasmania 9 7 New Zealand 6 1 Opening Balance 1
Slide 21: Automotive Parts and Accessories
Page 21 Automotive Parts and Accessories. SUMMARY FINANCIAL PERFORMANCE 1 HY 2020 HY 2019 CHANGE FOR THE HALF YEAR ENDED 31 DECEMBER AUD $'000 AUD $'000 AUD $'000 % Revenue from continuining operations 43,936 44,762 (826) (1.8%) EBITDA 4,310 6,189 (1,879) (30.4%) AASB 16 adjustment for occupancy cos
Slide 22: Strategy and Outlook
STRATEGY AND OUTLOOK &y AMAGROUP
Slide 23: Path to Growth
Page 23 Path to Growth. Market opportunity is c. $6 billion in which AMA Group has c. 15% market share. Multiple opportunities to continue to grow: Continue to lead the vehicle panel Realise the full potential of our repair industry consolidation in team and synergistic / Australia procurement oppor
Slide 24: Appendices
APPENDICES &y AMAGROUP
Slide 25: Appendix A: Normalisations
Page 25 Appendix A: Normalisations. NORMALISATIONS HY 2020 HY 2019 CHANGE (AUD $'000) (AUD $'000) AUD $'000 % Acquisition costs 8,508 191 8,317 4,354% Restructuring and reorganisation costs 1,999 1,153 846 73% • Abnormals costs are predominately due to the Fair value adjustments on deferred vendor c
Slide 26: Appendix B: HY 2020 Acquisitions
Page 26 Appendix B: HY 2020 Acquisitions. ACQUISITIONS # SHOPS DATE Vehicle Panel Repairs (VPR) Smashcare 6 29-Aug-19 Diplocks 1 13-Sep-19 All Transport Crash Repairs 1 30-Sep-19 Capital S.M.A.R.T 51 31-Oct-19 BF Panels 1 31-Dec-19 Total Sites 60 Automotive Parts and Accessories Solutions (APAS) ACM