Ama Group Limited · ASX:AMA
Ama — Investor Presentation (February 2022)
37 slides from Ama's investor presentation, Feb 22, 2022
Slide 1: 2022 Interim Results Presentation
2022 INTERIM RESULTS PRESENTATION For the Half-Year Ended 31 December 2021 22 February 2022
Slide 2: Webcast
Webcast AMA Group 2022 Half Year Results Tuesday, 22 February 2022 11:00am, AEDT Register at: https://s1.c-conf.com/diamondpass/10018925-alm521.html 2
Slide 3: Disclaimer
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 read in
Slide 4: Contents
Contents Overview Slide 5 1H22 Financial Results Slide 11 Segment Performance Slide 16 Strategy and Outlook Slide 21 Other Information Slide 34 4
Slide 5: Overview
Overview AMA GROUP >, \“S
Slide 6: 1H22 Financial Results Summary
1H22 Financial Results Summary ▪ Total Group revenue and other income from continuing operations of $418.1 million (1H21 $435.1 million) ▪ Normalised post-AASB 16 EBITDAI of $4.2 million (1H21 $65.2 million) ▪ Successful completion of $150 million capital raising ‐ $72.5 million in debt repaid early
Slide 7: 1H22 Operational Summary
1H22 Operational Summary Tight cash management resulted in the Group consuming less cash than anticipated, despite the most challenging operational conditions experienced to-date during the COVID-19 pandemic ▪ Vehicle repair volumes continued to be impacted by COVID-19 related AMA Group Total Repair
Slide 8: Capital Raising – September 2021
Capital Raising – September 2021 ▪ The capital raising ‐ Accelerated 1 for 2.80 pro rata non-renounceable entitlement offer ‐ Institutional entitlement offer: raised approximately $53 million at the offer price of $0.375 per new ordinary share ‐ Retail entitlement offer: raised approximately $46 mil
Slide 9: 1H22 Key Metrics
1H22 Key Metrics Drive Non-Drive Heavy Motor Supply Group Metric 1H22 FY21 1H22 FY21 1H22 FY21 1H22 FY21 1H22 FY21 Safety – LTIFR 1.29 2.15 4.48 5.76 12.01 6.41 13.78 17.151 4.22 5.14 Average Repair Days 3.62 3.62 9.9 9.3 11.34 12.5 n/a n/a n/a n/a Repair Quality 2.3% 2.5% 3.3% 2.9% 0.4% 0.2% n/a n/
Slide 10: 1H22 Notes to Results
1H22 Notes to Results ▪ No grants from the Australian government during 1H22 - $0.5 million in grants from the New Zealand government during 1H22, with all wage related support paid out to staff and offset against employee benefits expense (1H21: $28.4 million benefit from grants across Australia an
Slide 11: 1H22 Financial Results
1H22 Financial Results
Slide 12: Summary Financial Performance
Summary Financial Performance Summary Financial Performance 1H22 1H21 For the six months ended 31 December AUD $'000 AUD $'000 ▪ Decreased revenue due to decreased repair volumes experienced during the half year Revenue and other income from continuing operations 418,141 435,099 Normalised EBITDAI 4
Slide 13: Summary Financial Position
Summary Financial Position Summary Financial Position 31-Dec-21 30-Jun-21 As at 31 December and 30 June AUD $'000 AUD $'000 ▪ Prudent actions taken during 1H22 Cash and cash equivalents 81,302 64,203 ▪ Despite the ongoing situational challenges of Other current assets 89,714 112,840 current operatin
Slide 14: Net Debt
Net Debt Net Debt 31-Dec-21 30-Jun-21 As at 31 December and 30 June AUD $'000 AUD $'000 ▪ Significant reduction in debt balances over time, reducing from $340.0 million gross debt Financial liabilities - drawn cash facilities 165,000 237,500 in June 2020 to $165.0 million current gross Cash and cash
Slide 15: Cash Flows
Cash Flows Summary Cash Flows 1H22 1H21 For the six months ended 31 December AUD $'000 AUD $'000 ▪ Received net proceeds from the Entitlement Offer of $95.3 million and proceeds from the Receipts from customers (inclusive of GST) 502,561 486,976 Payments to suppliers and employees (inclusive of GST)
Slide 16: Segment Performance
Segment Performance
Slide 17: Summary
Summary Summary Financial Performance Vehicle Collision Heavy Motor Supply Corporate / Eliminations Total By Segment 1H22 1H21 1H22 1H21 1H22 1H21 1H22 1H21 1H22 1H21 For the year ended 31 December AUD $'000 AUD $'000 AUD $'000 AUD $'000 AUD $'000 AUD $'000 AUD $'000 AUD $'000 AUD $'000 AUD $'000 Re
Slide 18: Vehicle Collision Repairs
Vehicle Collision Repairs Summary Financial Performance 1H22 1H21 ▪ Volumes expected to return as vehicle use normalises For the year ended 31 December AUD $'000 AUD $'000 ▪ Network well placed to respond with workforce largely Revenue and other income from continuing operations 357,577 380,317 inta
Slide 19: Heavy Motor
Heavy Motor Summary Financial Performance 1H22 1H21 ▪ Maintained positive momentum through COVID-19 For the year ended 31 December AUD $'000 AUD $'000 period Revenue and other income from continuing operations 27,843 25,415 ▪ Completed significant NSW bus refurbishment Post-AASB 16 Normalised EBITDA
Slide 20: Supply
Supply ▪ Recycling business revenues remain strong with solid dismantling Summary Financial Performance 1H22 1H21 volume, parts and scrap demand For the year ended 31 December AUD $'000 AUD $'000 ‐ Complete Vehicle Wreck insurer agreement cancelled - revenue approximately $6 million not continuing R
Slide 21: Strategy and Outlook
Strategy and Outlook
Slide 22: Strategy
Strategy Partnerships Production Procurement Build commercial relationships for the long- Leverage the technical skills and industry expertise in the business Secure the quality term, based on trust and products needed to delivering industry execute operations on leading value to all Operational eff
Slide 23: Challenges and Growth
Challenges and Growth Tight cash and cost management combined with strategy support AMA Group’s ability to face the situational headwinds of COVID-19, manage macroeconomic challenges and seek opportunities for growth Key COVID-19 Talent shortages Parts supply challenges challenges Recruitment and re
Slide 24: Procurement
Procurement Integrated Parts Supply Chain ▪ Parts cost increases and time to source impacting the whole collision repair industry ▪ Evolution of the procurement strategy commenced with ACM Auto Parts executing a lease for a distribution centre in Somerton Victoria ‐ Operationalisation of Somerton si
Slide 25: Production
Production Leveraging Scale in Parts Supply ▪ The recent addition of a dedicated, experienced senior resource in procurement is beginning to yield typical volume based benefits in both direct and indirect purchasing that AMA Group would expect to receive, consistent with the scale of the business –
Slide 26: Partnerships
Partnerships ▪ AMA Group continues to work with insurer partners and acknowledge assistance provided by members of the customer panel who have adjusted revenue mechanisms to reflect current repair volume challenges ▪ Broad recognition that historic pricing models are no longer appropriate in a COVID
Slide 27: Retention and Engagement
Retention and Engagement We asked our Team what they wanted and are focussed on communication, celebration, support and development 27
Slide 28: Apprenticeships
Apprenticeships Building the workforce of the future ▪ Apprentices are the next generation of leaders and skilled tradespeople ▪ AMA Group is committed to bringing in the best people and ensuring the best start to their careers in the collision repair industry ▪ 71 apprentices commenced in January 2
Slide 29: Skilled migration
Skilled migration ▪ While we build the workforce of the future, it is critical that the immediate needs of the business are met ▪ AMA Group has 279 Visa holders as at February 2022, representing 8% of the total workforce ▪ Borders open 21 February allowing all fully vaccinated visa holders to travel
Slide 30: Executive Team
Executive Team Carl Bizon CEO & Executive Director Alexandra Holston Mathew Cooper Geoff Trumbull Andrew Mair Janelle Leonard Scott Lancaster Director Investor Group Chief Chief Group Chief Group Chief Group Chief Relations Operating Officer Financial Officer Commercial Officer People Officer Inform
Slide 31: AMA Group Board
AMA Group Board Anthony Day Simon Moore Nicole Cook Chair Non-Executive Director Non-Executive Director Carl Bizon Paul Ruiz Kyle Loades Caroline Waldron CEO and Executive Director Non-Executive Director Non-Executive Director Non-Executive Director ▪ Caroline Waldron will join the AMA Group Board a
Slide 32: Operational Priorities
Operational Priorities ▪ Progressive and strategically managed return of capacity ▪ Settling executive management team’s operating rhythm ▪ Development of mutually beneficial customer contracting arrangements, reflecting the post COVID-19 market environment ▪ Realisation of the benefits of the busin
Slide 33: Early Look 2H22
Early Look 2H22 ▪ Repair volumes recovering slowly post summer holidays, 160 and ongoing impacts of COVID-19 related isolation and 140 self-selected isolation slowing the repair volumes return 120 Summer ‐ Customers with approved claims choosing to delay cosmetic 100 period Public repairs if vehicle
Slide 34: Other Information
Other Information
Slide 35: Normalisations
Normalisations Normalisations (post-AASB 16) 1H22 1H21 For the year ended 31 December AUD $'000 AUD $'000 ▪ Normalisations for the period were $1.4 million EBITDAI post-AASB 16 2,822 55,721 ▪ There are no normalisations for the impact of Normalisations: the COVID-19 pandemic Occupancy costs and obso
Slide 36: AMA Group
AMA GROUP
Slide 37: amagroupltd.com
AMA Group Limited ABN 50 113 883 560 Level 4 130 Bundall Road Bundall QLD 4217 amagroupltd.com