Slide 1: 2017 Full Year Results Presentation
For personal use only 2017 Full Year Results Presentation 20 September 2017
Slide 2: Disclaimer
Disclaimer For personal use only 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
Slide 3: AMA Group Overview
AMA Group Overview For personal use only Vehicle Protection Automotive Electrical & Cable Automotive Component Vehicle Panel Repair Products & Accessories Accessories Remanufacturing Brands • Australian leader in the automotive aftercare and accessories market • An ASX 300 Company (ASX:AMA) with a s
Slide 4: June 2017 Full Year Results
June 2017 Full Year Results For personal use only 2017 results exceeded market guidance of Normalised EBITDA in excess of $40 million June 17 June 16 3 Change Revenue – continuing operations : Reported ($’000) 382,165 264,284 44.6% EBITDA - continuing operations : Reported ($’000) 37,205 24,672 50.8
Slide 5: Normalisation of EBITDA
Normalisation of EBITDA For personal use only ($’000) June 17 June 16 EBITDA – Reported 37,205 24,672 Greenfield Start Ups 1,250 - Business Acquisition expenses 677 916 Site Integrations 500 500 Employee Equity Plan expense 403 3,644 Redundancies 379 1,128 Litigation Settlement 350 - Restructuring 1
Slide 6: EBITDA to Operating Cash Flow
EBITDA to Operating Cash Flow For personal use only ($’000) June 17 June 16 June 15 EBITDA – Reported 37,205 24,672 14,194 Discontinued operation - (10) 216 Interest Paid (170) (207) (253) Deferred Income Amortisation (5,487) (2,981) - Equity Issued As Employment Condition 403 3,644 - Other Non Cash
Slide 7: Investment Cash Flows
Investment Cash Flows For personal use only ($’000) June 17 June 16 June 15 Capital Expenditure – Greenfields 1 6,310 1,275 - Capital Expenditure - Other (Maintenance) 2 5,676 7,629 3 2,336 11,986 8,904 2,336 Acquisition of Existing Businesses 6,851 31,185 8,344 Investment in Automotive Solutions Gr
Slide 8: "Greenfields" Investment Case
“Greenfields” Investment Case For personal use only Capital Expenditure 1,200,000 Start Up Losses 500,000 “Investment” 1,700,000 Revenue 5,000,000 Margin 10% EBITDA 500,000 Payback Period 3.4 years 20 September 2017 2017 Full Year Results Presentation 7
Slide 9: Market Investment Incentive
Market Investment Incentive For personal use only ($’000) June 17 June 16 June 15 Deferred Income - Opening Balance 20,919 - - Receipt - 23,000 - Amortisation (5,487) (2,981) - Deferred Income - Closing Balance 14,532 20,019 - Classified as: Current 6,000 5,100 - Non Current 8,532 14,919 - 14,532 20
Slide 10: Free Cash Flow
Free Cash Flow For personal use only ($’000) June 17 June 16 June 15 Cash Earnings (pre tax) 31,041 24,368 14,221 Income Tax Paid (9,724) (7,247) (4,198) Other Working Capital Movement (916) (3,360) (2,203) Net Cash Flow From Operations (excluding “Investment Outflows”) 20,401 13,761 7,820 Maintenan
Slide 11: Cash Flow
Cash Flow For personal use only The Cash Flow Statements in the financial statements can be summarised as: (Stated $’000) June 17 June 16 June 15 From Operating Activities 12,987 36,761 7,820 From Investing Activities (22,687) (38,207) (10,693) From Financing Activities 1,545 22,126 2,972 Net Cash F
Slide 12: Cash Conversion
Cash Conversion For personal use only (Turn in Days) June 17 Accounts Receivable 24.97 Inventory 17.37 Accounts Payable (49.72) Cash conversion (7.38) Cash flow is further assisted by the “negative working capital” position 20 September 2017 2017 Full Year Results Presentation 11
Slide 13: Business Mix
Business Mix For personal use only Panel now provides 86.4% of revenue (2016: 80.8%) changing the business mix. Group EBITDA % also reflects this changing mix. 20 September 2017 2017 Full Year Results Presentation 12
Slide 14: Earnings per Share
Earnings per Share For personal use only 20 September 2017 2017 Full Year Results Presentation 13
Slide 15: Dividends per Share
Dividends per Share For personal use only 20 September 2017 2017 Full Year Results Presentation 14
Slide 16: Vehicle Panel Repair
Vehicle Panel Repair For personal use only Vehicle Protection Automotive Electrical & Cable Automotive Component Brands Products & Accessories Accessories Remanufacturing Sales A$323.8 m (+53.1%) 2 GM $1 A$185.5m (+49.9%) 2 GM %1 57.3% (-1.2%) 2 – National footprint with 93 sites across Australia 3
Slide 17: Revenue Growth
Revenue Growth For personal use only FY16 1st Half Preacq. - Annualised uplift from Gemini & Woods FY16 Greenfields – Tingalpa & Para Hills Deferred Income – Market Investment Incentive Amortisation FY16 2nd Half Acquired – Micra, BDS & Keswick Panel Base – All panel acq. pre FY15) FY17 Acquired – G
Slide 18: National Footprint of Panel Repair Shops
National Footprint of 93 Panel Repair Shops For personal use only Victoria 40 Queensland 19 Western Australia 10 New South Wales 10 Australian Capital Territory 7 South Australia 3 Tasmania 3 New Zealand 1 93 Network – 30 June 2016 65 Prestige 3 Acquired 19 Traditional 64 Greenfields 10 Exclusive 23
Slide 19: Vehicle Protection Products & Accessories
Vehicle Protection Products & Accessories For personal use only Brands Sales A$25.7 m (-6.9%) 2 GM $1 A$12.6 m (+0.4%) 2 GM %1 49.1% (+3.6%) 2 – Leading manufacturer of alloy bullbars – Recently won the AAAA award for 'Excellence in Manufacturing over $10 million turnover' – Prominent in the market
Slide 20: Automotive Electrical & Cable Accessories
Automotive Electrical & Cable Accessories For personal use only Brands Sales A$14.9 m (-1.1%) 2 GM $1 A$4.5 m (+2.8%) 2 GM %1 30.3% (+1.2%) 2 – Product innovation creating organic opportunities – Recently won AAAA award for the 'Most innovative new aftermarket electrical product' – Pursuing broader
Slide 21: Automotive Component Remanufacturing
Automotive Component Remanufacturing For personal use only Brands Sales A$10.3 m (+33.7%) 2 GM $1 A$4.1 m (+26.9%) 2 GM %1 39.3% (-2.1%) 2 – Solid organic growth profile within FluidDrive enabled our transmission remanufacturing revenues to exceed $10m for the first time ever – Strong management and
Slide 22: Investment in Automotive Solutions Group
Investment in Automotive Solutions Group For personal use only On 23 May 2017, AMA announced that it would seek to acquire all of the shares in Automotive Solutions Group Limited (“ASG”). The principal activity of ASG is the design, manufacture, supply and fitment of automotive aftermarket parts, ac
Slide 23: Strategy / Outlook
Strategy / Outlook For personal use only Initiatives • Aggressively participate in the Panel Industry consolidation • Identify and execute further “Greenfield” opportunities in Vehicle Panel Repair division • Prioritize and continually drive vertical integration across Vehicle Panel Repair division
Slide 24: Summary
Summary For personal use only Leading provider of Australian automotive aftercare services and accessories Cemented position as Australia’s leading consolidator in the panel repair market Strong balance sheet with ability to take on additional leverage Strong cash generation business model Growing e
Slide 25: Appendix A - NPBT and NPAT Normalisation
Appendix A - NPBT and NPAT Normalisation For personal use only ($’000) NPBT FY17 NPBT FY16 NPAT FY17 NPAT FY16 Reported 25,405 13,429 17,411 7,187 Outside Equity Interest (287) (282) (201) (197) Greenfield Start Ups 1,250 - 875 - Business Acquisition expenses 677 916 677 916 Site Integrations and Ma
Slide 26: Appendix B - Cash Earnings Normalisation
Appendix B - Cash Earnings Normalisation For personal use only ($’000) June 17 June 16 Cash Earnings – Reported 31,041 24,368 Greenfield Start Ups 1,250 - Business Acquisition expenses 677 916 Site Integrations 500 500 Redundancies 379 1,128 Litigation Settlement 350 - Restructuring 125 600 Borrowin
Slide 27: Appendix C - Intangible Assets Restatement
Appendix C - Intangible Assets Restatement For personal use only ($’000) Goodwill Patents Contracts Total Balance as at 30 June 2015 47,235 79 732 48,046 Additions & Adjustments 1,139 4 - 1,143 Acquired - Reported 96,978 384 7,282 104,644 Acquired - Prior Period Adjustment1 (3,647) - 3,647 - Impairm
Slide 28: Appendix D - NPAT before Amortisation
Appendix D - NPAT before Amortisation For personal use only ($’000) June 17 June 16 NPAT - Reported 17,411 7,187 Amortisation of Contracts 3,424 2,600 Income Tax Expense Effect of Amortisation of Contracts1 (1,027) (780) NPATA - Reported 19,808 9,007 Outside Equity Interest (201) (197) NPATA attribu