Pinewood Technologies Group Plc · LSE:PINE
Pinewood Technologies — Investor Day (October 2024)
48 slides from Pinewood Technologies's investor day presentation, Oct 24, 2024
Slide 1: Pinewood Technologies Group Plc Capital Markets Day Presentation
Pinewood Technologies Group Plc Capital Markets Day Presentation October 24, 2024
Slide 2: Slide 2
Slide 3: Pinewood Technologies Group Plc. Capital Markets Day Presentation
Pinewood Technologies Group Plc. Capital Markets Day Presentation October 24, 2024
Slide 4: Agenda
Agenda § Overview and Introduction to Pinewood § Pinewood Overview § Market Landscape & Opportunity § Pinewood.AI Competitive Advantage § Voice of the Customer § Pinewood Strategy § Pinewood Brand Identity & Positioning § Financial outlook including updated FY27 underlying EBITDA guidance § Q&A § Br
Slide 5: Today's speakers
Today’s speakers § Bill Berman – CEO § Ollie Mann – CFO § Kim Costello – Chief Marketing Officer § Kieran Kelly – Chief Technology Officer § Steve Meadows – Chief Commercial Officer 5
Slide 6: What we will cover
What we will cover § Where we sit in the Automotive Retail ecosystem landscape § How our customers view us § Short-term strategy focused around optimizing performance in the UK, Europe and Asia Pacific markets § While simultaneously developing our system for the North American market, followed by Pi
Slide 7: PIN=WOOD.AI Automotive Intelligence
PIN=WOOD.AI AUTOMOTIVE INTELLIGENCE
Slide 8: Overview
Overview Pinewood Automotive Intelligence Platform Technologies Group PLC today A leading Automotive Retail High user loyalty Recurring revenue streams Ecosystem § < 2% average net user churn over § Consistent growth in revenue and § Software-as-a-Service the last 3 years high, stable gross margins
Slide 9: Market Landscape and Opportunity
Market Landscape and Opportunity Dominated by traditional DMS providers Europe: Keyloop, Constellation Software, NextLane – very fragmented market North America: CDK Global, Reynolds & Reynolds, Dealertrack, Tekion 70% of dealers are not Competitors have failed to give the market what it wants satis
Slide 10: Pinewood.AI Competitive Advantage
Pinewood.AI Competitive Advantage § Enables dealers to operate with one version of the truth in real time § Pinewood is 100% Cloud Hosted – highly scalable and secure § End-to-end connected data § Recent industry cyber-security issues have created a ‘big-bang’ moment § Deep and longstanding customer
Slide 11: Voice of the Customer
Voice of the Customer “We are excited to be embarking on this new partnership with “The benefits we're driving from Pinewood are fundamentally Pinewood over the coming months. This partnership will allow us changing the way we operate as a business, more efficiently and to integrate and upgrade our
Slide 12: Pinewood Strategy
Pinewood Strategy NORTH AMERICAN JV UK & Ireland International Products / North America Vertical Sales § Target Large UK Auto § Asia Pacific § Multiple Product § Discovery Phase & Retail Groups Opportunities to Upsell Development Work § Northern & Central § Top 100 Sweep Europe § AI § US Store Pilot
Slide 13: UK & Ireland
UK & Ireland
Slide 14: UK & Ireland
UK & Ireland UK & Ireland Top 20 Auto Retail Customer Opportunities 2023 Rank* Name T/O 2023 (£m) Step-change in UK & 1 . (1) Sytner 6,834 2. (2) Arnold Clark Automobiles 4,922 Ireland market share 3. (3) Lookers 4,301 4. (4) Vertu Motors 4,015 § Sign up one of the top 5. (5) Pendragon 3,620 20 as a
Slide 15: Exhaustive Sweep of Potential New Customers
UK & Ireland Exhaustive Sweep of Potential New Customers Cover all Top 100 UK & § The way the UK & Ireland sales team goes to Ireland customers market will be changed: § New evolution of the Pinewood system to be § Strengthen launched in 2025 sales team § New features developed from working closely
Slide 16: Ensure Existing Customers are Aware of Full Product Suite
UK & Ireland Ensure Existing Customers are Aware of Full Product Suite Maximise sales to § Pinewood’s ecosystem offering § All available products to be offered to existing customers is unique and when replacing existing customers: competitor systems, often multiple § Educate all current UK third par
Slide 17: International
International
Slide 18: Asia Pacific Expansion Backed by Strategic OEM Support
International Asia Pacific Expansion Backed by Strategic OEM Support Focal point of Japan § Tokyo office staffed with local team § Sign contracts for Japan § Porsche and VW/Audi will be the dealers with Porsche entry point to build to scale in the and VW/Audi Japanese market e.g. Japanese domestic b
Slide 19: Opportunities in Asia Pacific Countries with Existing Customers
International Opportunities in Asia Pacific Countries with Existing Customers Opportunity to grow in § Potential opportunities to expand the SE Asia Pinewood customer base in a number of SE Asia countries where we already § Capitalise on have a presence such as Singapore, upsell/cross-sell Vietnam &
Slide 20: Central European Opportunity
International Central European Opportunity Focal point of § We have been approached by a number of dealer Germany groups and OEMs in German speaking DACH (Germany, Austria & Switzerland) markets § Material opportunities from a number of § There are potentially 20,000+ users in DACH sources in Centra
Slide 21: Pinewood South Africa
International Pinewood South Africa Successful Reseller § Pinewood have a longstanding agreement Agreement in South with a reseller in South Africa (Pinewood Africa South Africa) who manage the customer relationships and look after the system sales § Continue to grow team in South Africa market shar
Slide 22: Products / Vertical Sales
Products / Vertical Sales
Slide 23: Proactively Marketing Full Product Suite
Products/Vertical Sales Proactively Marketing Full Product Suite Further Upsell § There is a significant opportunity § A summary of the main products and for Pinewood to increase vertical whether Pinewood have them today § Ensure all customers sales through add-on products can be seen below: are awa
Slide 24: AI related products
Products/Vertical Sales AI related products AI Chatbots and Other § AI will be transformational for automotive retail AI powered products systems with multiple areas of new functionality § AI Chatbots § Pinewood have made an investment in Seez, the automotive AI company, for $4.2m § Step-change for
Slide 25: Build vs Buy vs Partner
Products/Vertical Sales Build vs Buy vs Partner Key decisions on build § As we look to expand Pinewood’s suite of products, vs buy vs partner it may not always be possible to develop these capabilities in-house § Assessed on a case by case basis § In some cases it will be better to buy the technolog
Slide 26: North America
North America
Slide 27: Subject Matter Expert Consultant Engagement
North America Subject Matter Expert Consultant Engagement Expert Consultant Consultant was engaged to assess the US market and opportunity § Engage with a § What are must-have system product features and functionality needed by US Subject Matter dealerships Expert on the US § What integrations are n
Slide 28: Consultant Report Key Outputs
North America Consultant Report Key Outputs Expert Consultant § Following the consultant scoping work, the key pieces of work that need to be done by § Identify key Pinewood have been identified as: immediate workstreams § OEM Integrations § OEM engagement is § Finance Integrations underway § Tax, T
Slide 29: Density of Lithia Stores by State is a Key Pilot Consideration
North America Density of Lithia Stores by State is a Key Pilot Consideration US State selection § There are high numbers Year 1-2: Leverage Lithia as launchpad into target states… of Lithia dealers in Large Lithia footprint, § Select which state to Michigan, Oregon, Large Lithia potential entry to N
Slide 30: Pinewood North America Market Entry strategy - 6 Key Steps
North America Pinewood North America Market Entry strategy - 6 Key Steps 1. Building MVP offering (FY24-FY25) 2. Locking in differentiated value prop 3. Setting commercial strategy § Development of priority OEMs with § E2E integrated and scalable solution § Simplified contracting and payments c.20 i
Slide 31: Size of Opportunity is Significant
North America Size of Opportunity is Significant North America Auto § North American Automotive market constitutes ~$6.5B of the total ~$9.3B TAM, Market Opportunity ~$3.4B of which is from core Automotive DMS and CRM markets § North American Auto ~$2.8b ~$9.3b Market size of $6.5B ~$1.1b ~$0.4b § A
Slide 32: FY27 Financial Outlook
Financial outlook and ambitions for the future FY27 Financial Outlook § High double digit revenue growth driven by organic growth in key markets enhanced by selective M&A § Previous guidance of £27m of underlying EBITDA in FY27 increased to £30m 32
Slide 33: Approach to Capital Allocation
Approach to Capital Allocation § Priority is to maximise revenue growth sustainably and shareholder return § Using cash to accelerate both technical capabilities and future implementations, particularly in North America, is key to Pinewood’s Capital Allocation strategy 33
Slide 34: In summary
In summary § A highly secure ecosystem with a unique global deployment advantage § Built over 20+ years experience of a unique engagement with a modern Auto Retail business § Strategy focused around optimising performance in existing markets and establishing Pinewood in the North American market - i
Slide 35: Slide 35
Slide 36: Brand Identity & Positioning
Brand Identity & Positioning
Slide 37: A New and Distinctive Position for the Brand
A New and Distinctive Position for the Brand Our Brand Vision is to be the full-service technology partner that helps automotive retailers and OEMs run more efficiently and increase revenue by making better commercial and business decisions, more easily. Our mission is to unlock customer value by in
Slide 38: Automotive Intelligence
Shutterstock Automotive Intelligence Pinewood.AI enables retailers and OEMs to unlock value by showing them all data points, simply and in near real time. Making it easy to identify opportunities to improve performance. A unified management system and end-to-end visibility of data throughout the own
Slide 39: A system born out of the automotive industry, designed by Car People for Car People
A system born out of the automotive industry, designed by Car People for Car People
Slide 40: Key Principles
Key Principles § Pinewood as a Tier 1 technology provider § AI (Automotive Intelligence) as the core building block § Future-facing/future proofed § Full end-to-end solution 40
Slide 41: PIN=WOOD.AI Automotive Intelligence
4l PIN=WOOD.AI AUTOMOTIVE INTELLIGENCE TEKION keylcop Dealertrack 4 SSLERA | DealerSocket cox) 1} Sia
Slide 42: GTM USA
GTM USA
Slide 43: Our USP is more than a DMS
Our USP is more than a DMS § The inability of dealerships to unlock the value of their data isn’t just the limitations of their current DMS § Cultural lack of customer-centricity is an industry problem that technology does not solve § Dealerships focus on functional silos not the automotive buyer jo
Slide 44: Pinewood.AI transforms value creation
Pinewood.AI transforms value creation INSIDE OUT § Connected, real time data § Connected customer journey § Superior customer insights § Personalised conversations § Customer-centric culture § Customer-centric experience 44
Slide 45: Roadmap: Key deliverables
Roadmap: Key deliverables Connect with pilot partners Sales conversion Connect with thought leaders Product leadership content Competitor deep dive Create sales assets Scale up prospecting Plan prospect strategy National PR Q4 H1 H2 H1 H2 2024 2025 2025 2026 2026 Data and journey research Build pros
Slide 46: Automotive Intelligence
AUTOMOTIVE INTEL!
Slide 47: Q&A
Q&A
Slide 48: Breakout Sessions – System Demonstrations
Breakout Sessions – System Demonstrations
Pinewood Technologies Group — Investor Day (October 2024) on 6ix