Maxiparts Limited · ASX:MXI
Maxiparts — MaxiTRANS Industries — Shareholder Meeting (October 2018)
39 slides from Maxiparts's shareholder meeting presentation, Oct 19, 2018
Slide 1: 2018 Annual General Meeting
19 October 2018 2018 Annual General Meeting For personal use only Chairman’s Address and Managing Director’s Presentation Attached is a copy of the Chairman’s Address and the Managing Director’s Presentation to be delivered at today’s Annual General Meeting. Alison Groves Company Secretary MaxiTRANS
Slide 2: Chairman's Address: Introduction and Strategy
19 October 2018 2018 Annual General Meeting Chairman’s Address For personal use only Introduction I would like to share with you a brief overview of the current position of our Company and our broad strategic direction. Following this, our Managing Director, Dean Jenkins, will discuss, in detail, th
Slide 3: Chairman's Address (continued)
This is being undertaken through a consistent MaxiTRANS production system, supported by the new ERP platform successfully installed in our manufacturing sites on 2 October and currently being deployed across the business. This, along with a rigorous Health, Safety, Environment and Quality platform a
Slide 4: Chairman's Address (continued)
The recent sale of our China business was all about better returns and we are confident that there are available opportunities for better uses for our capital in the future. I am pleased to report total dividends for the year of 3.5 cents per share, the same as last year. I am also pleased to report
Slide 5: 2018 Annual General Meeting
For personal use only 2018 Annual General Meeting
Slide 6: Leading the Way
® Maxi LEADING THE WAY _#REIGHTER? (EST /0s7v eusay° Hamelexwhite \AIMEB® FHI. @MaxiPARTS®
Slide 7: Chairman's Address
For personal use only Chairman’s Address
Slide 8: Managing Director's Address
Managing Director’s Address For personal use only
Slide 9: Leading our industry to become safer and more efficient
At MaxiTRANS, we are leading our industry to become safer and more efficient, so our customers can better For personal use only deliver the needs of a nation Australia’s largest supplier of locally manufactured, high One of the largest quality engineered suppliers of truck and road transport trailer
Slide 10: Two complementary and well positioned businesses
TWO COMPLEMENTARY AND WELL POSITIONED BUSINESSES For personal use only MaxiPARTS Differentiators Trailers Differentiators Parts 26% A national store footprint in Strong brand heritage Trailers 74% the right locations and reputation Unique technology enabled Broadest range of customer solutions produ
Slide 11: Trailers: a diverse portfolio of brands exposed to multiple segments
TRAILERS: A DIVERSE PORTFOLIO OF BRANDS EXPOSED TO MULTIPLE SEGMENTS OF THE ECONOMY For personal use only PRODUCT REVENUE CONTRIBUTION FROM NEW TRAILER SALES Bulk Transport (3 YEAR AVE) • Infrastructure • Housing Starts • Agriculture • Waste • Mining • Population Growth 28% 38% General Freight • Pop
Slide 12: MaxiPARTS: extensive range of parts/consumables and expertise
MAXIPARTS: EXTENSIVE RANGE OF PARTS/CONSUMABLES AND EXPERTISE For personal use only • 20 locations nationally • Portfolio includes trailer parts, after-market truck and engine parts / consumables • In excess of 180,000 products in the portfolio, including many leading brands, as well as specialty pr
Slide 13: FY18 Result Highlights
FY18 RESULT HIGHLIGHTS For personal use only • Result in line with guidance (May 2018) • Revenue up 20% to $409.3m • NPAT down 5.8% to $10.1m – impact of manufacturing efficiency in Q4 FY18, NZ warranty issues, poor China performance (-$1.4m) and higher costs associated with the rental fleet, compli
Slide 14: Financial Overview
FINANCIAL OVERVIEW For personal use only A$M FY17 FY18 % Change Revenue 340.1 409.3 20.3 EBITDA 21.4 20.9 (2.3) D&A (4.6) (4.8) (4.3) EBIT 16.8 16.1 (4.2) Interest Expense (2.3) (2.5) 8.7 NPBT 14.5 13.7 (5.5) Tax (3.5) (3.6) (2.9) Non-Controlling Interest (0.3) 0.1 133.3 NPAT (Underlying) 10.7 10.1
Slide 15: Cashflow
CASHFLOW For personal use only A$M FY17 FY18 % Change EBITDA 21.4 20.9 (2.3) • Strong operating cashflow used to Change in Working Capital (10.3) 4.5 143.7 fund significant Other (6.7) (5.6) 16.4 capex program and dividends Operating Cashflow 4.4 19.8 345.0 Dividends Paid (5.9) (6.5) (10.2) • High c
Slide 16: Business Unit Performance
For personal use only BUSINESS UNIT PERFORMANCE
Slide 17: Segment Earnings – MaxiPARTS
SEGMENT EARNINGS – MaxiPARTS For personal use only • Profit growth significantly ahead of revenue • Scale benefits associated with: • Expanded product range at higher margins; • MaxiSTOCK customer inventory ROIC: Return on Invested Capital (excludes unallocated corporate costs) management system dri
Slide 18: Segment Earnings – Trailers (Australia & NZ)
SEGMENT EARNINGS – TRAILERS (AUSTRALIA & NZ) For personal use only • Notwithstanding strong revenue growth in both Australia and New Zealand, profit significantly impacted by: • NZ warranty claims arising on some trailers built between 2014 -15. Issues identified and rectified • Sudden shift in prod
Slide 19: Capital Allocation
CAPITAL ALLOCATION For personal use only • China • China business challenged in recent times from increased competition resulting in product commoditisation as well as increased input costs • Sale to Zhejiang Huazheng New Material Co Ltd announced in September 2018 – remains on track with completion
Slide 20: Strategy Update – Building on Solid Foundations
For personal use only STRATEGY UPDATE – BUILDING ON SOLID FOUNDATIONS
Slide 21: Strategic Initiatives Driving Value
STRATEGIC INITIATIVES DRIVING VALUE For personal use only Our Strategy : Partner with operators in the freight transport business to improve VALUE CREATION efficiency and effectiveness. Add value by reducing customers’ operating risks. Industry Leader • Trusted business partner Our Values : Send all
Slide 22: Value Enablers: Organisational Development and Corporate Image
VALUE ENABLERS: ORGANISATIONAL DEVELOPMENT AND CORPORATE IMAGE For personal use only • An organisation empowered to grow in the MaxiTRANS way GOALS • Build on industry leadership position focussing on safety & efficiency • Cross functional collaboration and accountability • Whole of organisation cha
Slide 23: Value Generator: Operational Excellence
VALUE GENERATOR: OPERATIONAL EXCELLENCE For personal use only GOAL Drive efficiency and margin improvement Go live FY19. Benefits: • Business Implement ERP system and analytics 1 continuous improvement initiatives • Inventory management • Labour efficiency Implement common end to end business 2 • Pr
Slide 24: TRANSform (New IT System)
TRANSform (New IT system) For personal use only • Significant milestone with the successful TRANSform go-live on 2 October throughout the Australian manufacturing plants • As expected, some issues requiring focus but nothing which isn’t normal for a systems deployment • As part of the go-live, produ
Slide 25: Value Generator: Growth in Existing Markets
VALUE GENERATOR: GROWTH IN EXISTING MARKETS For personal use only GOAL Revenue growth; improved asset utilisation Key Grow national market share • Expand Footprint 1 Drivers in trailers • New products • Expand range to include after-market 2 Increase volume in parts business truck/engine parts and t
Slide 26: Value Generator: Growth in New Markets
VALUE GENERATOR: GROWTH IN NEW MARKETS For personal use only Establish longer term growth drivers and geographic GOAL diversification Key 1 Target opportunities in Fleet Management Drivers 2 Value accretive growth in China 3 Evaluate other Asian growth markets
Slide 27: The MaxiTRANS Investment Opportunity
THE MAXITRANS INVESTMENT OPPORTUNITY For personal use only Attractive growth options in existing and new markets (Domestic & Revenue Growth International) Margin Significant opportunity to improve operating performance Improvement Value Creation Growth in earnings and cash flow | Improving return on
Slide 28: Outlook
For personal use only OUTLOOK
Slide 29: FY19 Outlook
FY19 OUTLOOK For personal use only • Trailer manufacturing now back on track (three consecutive months of performance at Ballarat at long run efficiency levels) • Strong sales growth in NZ experienced in FY18 not expected to continue and should revert back to normalised levels • No adverse change in
Slide 30: Questions
For personal use only Questions
Slide 31: Financial Statements and Reports
Financial Statements and Reports For personal use only To receive and consider the financial report, the directors’ report and the auditors’ report for the Company and its controlled entities for the year ended 30 June 2018.
Slide 32: Adoption of the Remuneration Report
Adoption of the Remuneration Report For personal use only That the Company’s Remuneration Report for the year ended 30 June 2018 be adopted.
Slide 33: Adoption of the Remuneration Report – Proxies
Adoption of the Remuneration Report For personal use only Valid proxies have been received in respect of this resolution as follows: For Against Proxy’s discretion Abstain 51,449,468 6,855,302 3,631,296 1,115,704 83.07% 11.07% 5.86%
Slide 34: Re-election of Mr James Curtis
Re-election of Mr James Curtis For personal use only That Mr James Curtis, who retires in accordance with the Company’s Constitution and being eligible for election, is re-elected as a Director of the Company.
Slide 35: Re-election of Mr James Curtis – Proxies
Re-election of Mr James Curtis For personal use only Valid proxies have been received in respect of this resolution as follows: For Against Proxy’s discretion Abstain 82,204,972 1,571,293 3,504,629 253,024 94.19% 1.8% 4.01%
Slide 36: Grant of Performance Rights to the Managing Director
Grant of Performance Rights to the Managing Director For personal use only For the purposes of Listing Rule 10.14, to approve the grant of performance rights to Mr Dean Jenkins, Managing Director and Chief Executive Officer, as described in the Explanatory Memorandum accompanying the Notice of Meeti
Slide 37: Grant of Performance Rights – Proxies
Grant of Performance Rights to the Managing Director For personal use only Valid proxies have been received in respect of this resolution as follows: For Against Proxy’s discretion Abstain 75,001,917 8,377,235 3,747,913 406,853 86.09% 9.61% 4.3%
Slide 38: Poll – Leading the Way
Poll bi LEADING THE WAY _#REIGHTER? §=(EEST? usrv Ewsay° HamelexWhites _\\AIMEB® PENI. =~ (@)MaxiPARTS®
Slide 39: Board of Directors and Management
Board of Directors and Management For personal use only Rob Wylie Chairman, Non-Executive Director Josephine De Martino Chief Financial Officer Trevor Negus Group GM Manufacturing James Curtis Deputy Chairman, Non-Executive Director Justin O’Brien General Manager MaxiPARTS Scott Harkin Group Supply
MaxiTRANS Industries — Shareholder Meeting (October 2018) on 6ix