Amotiv Limited · ASX:AOV
Amotiv — GUD Holdings — Investor Day (April 2022)
56 slides from Amotiv's investor day presentation, Apr 8, 2022
Slide 1: Automotive Investor Day 8 April 2022
GUD Holdings Limited Graeme Whickman, CEO and MD Martin Fraser, CFO Automotive Investor Day 8 April 2022 1
Slide 2: Safety first
Safety first Site safety briefing Briefing by Geoff Dennis, HR Manager APG 2
Slide 3: Schedule
Schedule Groups start Group A start Group B start Group C To accommodate the tour of the 8.30 Group overview 8.30 Group overview 8.30 Group overview AutoPacific Group (APG) facility, we have 9.00 APG site tour 9.00 Undercar 9.00 Lighting and split attendees into three groups. Every Power Management
Slide 4: Contents
Contents Welcome from the Chairman 5 Graeme Billings, Chairman, GUD Holdings Group strategy and trading update 7 Graeme Whickman, Chief Executive Officer and MD, GUD Holdings Martin Fraser, Chief Financial Officer Barbara Harrison, Chief People Officer, GUD Holdings Undercar 16 Gideon Segal, Executi
Slide 5: Chairman's Comments
GUD Holdings Limited Graeme Billings Chairman, GUD Holdings Limited Chairman's Comments 5
Slide 6: Welcome from the Chairman
Welcome from the Chairman Graeme Billings Chairman, GUD Holdings Limited 6
Slide 7: Group strategy and trading update
GUD Holdings Limited Graeme Whickman, CEO and MD Martin Fraser, CFO Barbara Harrison, Chief People Officer Group strategy and trading update 7
Slide 8: Guidance and trading update: solid rebound after challenging start to Q3
Guidance and trading update: solid rebound after challenging start to Q3 Sales rebound as omicron and weather impacts abate Mobility trends in Australia • The significant Omicron-related disruptions evident in January largely abated during February. Despite additional 7-day moving average, baselined
Slide 9: All underlying industry trends are favourable to GUD's expanded portfolio
All underlying industry trends are favourable to GUD’s expanded portfolio Underlying industry trends favourable to GUD New vehicle sales1,2 Approaching Segmentation of new vehicle sales1 in millions normalisation of • Commencement in CY21 of the normalisation of new vehicle long-term trend SUV PU PM
Slide 10: Group automotive overview
Group automotive overview Dimensions Sites People SKUs Automotive Revenue EBITA Margin Range 40% 4WD Accessories 28 across ANZ 30% Lighting and Power c.21-25% c.1,700 c.88,000 depending on 7 international 20% Powertrain Automotive category 10% Undercar 10
Slide 11: The portfolio vision set at the beginning of FY22 is well under way
The portfolio vision set at the beginning of FY22 is well under way Notes: GUD’s commitment to net zero scope 1 & 2 emissions is set for 2025 for distribution businesses and 2030 for manufacturing businesses (including recently acquired APG and VX). Offshore is defined as revenue generated outside A
Slide 12: ESG is embedded in our strategy and how we work
ESG is embedded in our strategy and how we work Key impact areas define GUD priorities GUD’s key impact areas and headline targets Done Completed detailed materiality assessment facilitated by external experts Key impact areas defined and aligned to key value drivers for all key stakeholder groups;
Slide 13: Organising for success
Organising for success Auto category structure allows for sharpened management focus Auto category structure • Progressive move towards category structure enables stronger collaboration and GUD Holdings leverage between brands within categories • Aligned to portfolio strategic imperatives - selectiv
Slide 14: 'The GUD way' grows acquisitions and makes them more profitable
'The GUD way' grows acquisitions and makes them more profitable Completed seven acquisitions between July 2016 and June 20211 GUD has a proven track record of growing the top and bottom lines of companies that join the portfolio—across the group, on average: • Includes recent FY21 acquisitions of AC
Slide 15: A future-focused acquisition strategy, aligned with the Portfolio Vision
A future-focused acquisition strategy, aligned with the Portfolio Vision Acquisition integration and synergy delivery is a critical focus Unlocking growth and future-proofing businesses Acquisition strategy aligned with Portfolio Vision • Disciplined, programmatic approach to acquisitions • Active p
Slide 16: Undercar
Gideon Segal, EGM DBA and ACS Undercar 16
Slide 17: Capture Undercar categories and leverage scale
Capture Undercar categories and leverage scale 1. Management estimates. 2. Australian Automotive Intelligence (Sep/21). 17
Slide 18: Undercar benefits from a long-tail of SKUs with wide distribution
Undercar benefits from a long-tail of SKUs with wide distribution Footprint Our brands Our portfolio includes category leaders Sites People SKUs • Brakes: DBA • Clutch: ACS 11 across ANZ c.120 c.21,000 1 in USA Category metrics Category Revenue Estimated Market Share1 c.10% medium Automotive ‘run ra
Slide 19: Disc Brakes Australia: A leader in braking solutions
Disc Brakes Australia: A leader in braking solutions Gideon Segal, Executive General Manager 19
Slide 20: Disc Brakes Australia
About Disc Brakes Australia History • Established in the 1970’s • Over 40 years manufacturing experience, Innovation driven – extensive R&D investment • Acquired by GUD in July 2018 Dimensions • 56 team members across Australia • > 8,000 SKU’s covering > 97% of Australian car parc • Extensive range
Slide 21: A world leader in braking solutions
Strategic Imperatives A world leader in braking solutions DBA strategic imperatives • Continue to develop innovative braking products and ensure IP is protected • Expand product portfolio of braking products • Double international markets organic sales from circa 20% of overall business in the mediu
Slide 22: DBA continues to grow in ANZ and internationally
Customer DBA continues to grow in ANZ and internationally • Major Australian customer groups continuing to grow with DBA even with their stated aims of house brand %’s – testament to the strength of DBA brand • DBA sales team calls at all levels of the market supporting the brand and pull through fo
Slide 23: Comprehensive product range with long-tail protection and 'basket' upside
Product Comprehensive product range with long-tail protection and ‘basket’ upside Comprehensive product range • > 8,000 SKU’s • > 96% parc coverage on rotors • Ongoing development of new product categories and range extensions within categories – complete the basket of brake solutions • Disc rotors
Slide 24: DBA continues to invest in R&D, creating proprietary IP for global markets
Innovation DBA continues to invest in R&D, creating proprietary IP for global markets Innovative concepts being developed • Government grants and university partnerships are contributing to DBA being able to fast-track design concepts • New pillar design has been developed under this process and has
Slide 25: Continued strong revenue growth, backed by new product and geographies
Continued strong revenue growth, backed by new product and geographies Business update Highlights • Continued strong revenue growth • Street Series disc pad program launched in Q4 FY21 is performing on target and further growth is expected as additional distributors are onboarded • Domestic growth f
Slide 26: Australian Clutch Services: Clutch and flywheel specialists
Australian Clutch Services: Clutch and flywheel specialists Gideon Segal, Executive General Manager 26
Slide 27: Australian Clutch Services
About Australian Clutch Services History • Established in 1989 as a clutch rebuilder • Developed over time into a wholesaler, importer and manufacturer • From humble beginnings supplying the local South Australian market ACS now has warehouses all around Australia, and in New Zealand and the USA • A
Slide 28: ACS are clutch and flywheel specialists
Strategic Imperatives ACS are clutch and flywheel specialists Early stage of applying GUD strategy framework • Development of international markets • Product development future focused • Manufacturing capacity to be reviewed to cater for continued growth • X Clutch USA program to be continuously upd
Slide 29: ACS leading the market
Customer ACS leading the market • Strong brand, proven track record of growth – large Australian customer groups continue to grow with ACS • ACS sales team calls at all levels of the market supporting the brand and pull through for distributors • Leading stock position to support distributors and al
Slide 30: Innovation at the centrepiece of product development
Product Innovation at the centrepiece of product development Comprehensive product range • > 13,000 SKU’s • > 99% passenger car parc coverage • New products are constantly being ranged: + 230 new kits released YTD • ACS range offers variants of clutch kits • Packaging is innovative to minimise damag
Slide 31: Smooth integration of ACS into 'the GUD way'
Smooth integration of ACS into ‘the GUD way’ Business update • Solid revenue growth and business is continuing to perform strongly since acquisition in March 2021 • NZ sales negatively impacted by COVID restrictions but starting to open back up • Nascent X Clutch USA business is ahead of expectation
Slide 32: Electric Vehicles
Gino Ricciuti, EGM IM Group Electric Vehicles 32
Slide 33: Become a leader in the EV Aftermarket in Australia and New Zealand
Become a leader in the EV Aftermarket in Australia and New Zealand 1. Management estimates; includes on-vehicle (e.g., lightweight bullbars) and off-vehicle products (e.g., home chargers). 2. ABS: Motor Vehicle Census 2021. 3. Waka Kotahi/NZ Transport Agency: Clean Car Programme. 33
Slide 34: xEV is a natural extension of our power and electronics expertise
xEV is a natural extension of our power and electronics expertise Footprint Our brands Our portfolio includes category leaders Sites People SKUs • Electronics repair and reman: Injectronics • Hybrid EV batteries: Hybrid Battery Rebuild • Circular economy batteries: IM Group 4 across ANZ 6 20 Categor
Slide 35: IM Group: Solving customers vehicle management and mechatronics needs, fast
IM Group: Solving customers vehicle management and mechatronics needs, fast Gino Ricciuti, Executive General Manager 35
Slide 36: We solve customer's vehicle management and mechatronics needs, fast
About and strategy We solve customer’s vehicle management and mechatronics needs, fast Background • Innovative Mechatronics Group (IMG) was founded in 1983 • Acquired by GUD in 2017 • Significant growth since acquisition Our vision is to enable a circular economy for the machines that make life easi
Slide 37: 40 years' mechatronics experience offer platforms for growth
40 years’ mechatronics experience offer platforms for growth xEV1 are a natural extension of our capability set Creating a circular economy for electronic components • Electric vehicles have more and more complex electronics than equivalent ICE cars • This plays well into IMG’s capability set and 40
Slide 38: Australia's first nationwide HEV battery remanufacturing program
Hybrid electric vehicles Australia’s first nationwide HEV battery remanufacturing program Concept • Problem: Genuine replacement batteries for Hybrid Electric Vehicles (HEVs) are expensive (up to 25% of vehicle value at time of failure) and without the battery there’s no economic (mileage) or enviro
Slide 39: Repurposing 'waste' BEV batteries for stationary energy storage
Battery electric vehicles Repurposing ‘waste’ BEV batteries for stationary energy storage Concept • Problem: When traction batteries in Battery Electric Vehicles (BEV) are no longer suited for mobility (traction battery), they still have c.70-80% capacity remaining /and/ Battery Energy Storage Solut
Slide 40: Repair and Remanufacturing goes from strength to strength as we build our EV 'muscles'
Repair and Remanufacturing goes from strength to strength as we build our EV ‘muscles’ Business update Highlights • Strong revenue growth in first nine months of FY22 on the pcp • Strong growth trajectory since GUD acquisition; positive outlook for further growth in all business categories • Double
Slide 41: Powertrain
Stuart Chandler, EGM Ryco Filters Terry Cooper, MD Wesfil Powertrain 41
Slide 42: Optimise Powertrain profitability and invest in adjacencies
Optimise Powertrain profitability and invest in adjacencies 1. Management estimates. 2. Australian Automotive Intelligence (Sep/21). 42
Slide 43: Powertrain performance is protected by the long tail of SKUs
Powertrain performance is protected by the long tail of SKUs Footprint Our brands Our portfolio includes category leaders Sites People SKUs • Filtration: Ryco Filters, Wesfil • Automotive gaskets: Permaseal (AA Gaskets) • Engine management: GOSS 13 across ANZ c.300 c.40,000 • Electronics repair and
Slide 44: Ryco Filters: A leader in filtration solutions
Ryco Filters: A leader in filtration solutions Stuart Chandler, Executive General Manager 44
Slide 45: Ryco Filters: A leader in filtration solutions
About Ryco Filters: A leader in filtration solutions History The Ryco difference • Established 1936 Our technical expertise and test laboratory are unique in Australasia • Ceased manufacture in 2006 (AU) and 2008 (NZ) • Ryco’s decades of experience means we know filters inside and out. Our design ph
Slide 46: Ryco's strategic imperatives
Strategy Ryco’s strategic imperatives Ryco: A leader in filtration solutions 1. Business fitness • Inventory optimisation • Supplier cost management 2. 4x4 expansion 3. Commercial filter growth 4. Human capital optimisation 5. Beyond ICE expansion 46
Slide 47: Ryco generates pull through via unparalleled customer intimacy
Customer Ryco generates pull through via unparalleled customer intimacy Ryco at workshops • c. 25,000 active Ryco customers on Salesforce; predominantly independent workshops • c.29,000 end user customer or prospective calls per annum • >1,350 fleet calls (Commercial) per annum • >250 customer train
Slide 48: Comprehensive product range covers the long tail
Product Comprehensive product range covers the long tail Comprehensive product range (long tail) • ~3,100 SKUs • >96% parc coverage (Passenger) • >87% parc coverage (Commercial) • Covering early model vehicles to latest releases. Genuine quality is based on three factors Oil filters Fuel filters Air
Slide 49: #2 most innovative company in Australia and New Zealand
Innovation #2 most innovative company in Australia and New Zealand Rapid development of innovative filtration solutions • Ranked 2nd in 2021 AFR Most Innovative Companies (Consumer and Manufacturing goods category) • Ryco N99 MicroShield Cabin Air range of filters • Developing a quantum leap for in
Slide 50: Solid performance despite a tough Q3 environment, with an encouraging outlook
Solid performance despite a tough Q3 environment, with an encouraging outlook Business update Highlights • 2nd place in the AFR Boss Most Innovative Companies (with the MicroShield N99 ‘medical-grade’ air filter • Modest revenue growth (cycling strong growth in the pcp) product) despite lock downs w
Slide 51: Wesfil: Quality, range, knowledge, service
Wesfil: Quality, range, knowledge, service Terry Cooper, Managing Director 51
Slide 52: Wesfil: The value performer
About Wesfil: The value performer A history of exception customer experience • Started in 1984 by incumbent MD, Terry Cooper • Head Office located in Brookvale (Northern Beaches) NSW • GUD acquired Wesfil, with a total of five sites, in 1996 • Expansion of geographic distribution footprint involved
Slide 53: 'To be the balance of market power'
Strategy ‘To be the balance of market power’ Wesfil’s mission is ‘to be the balance of market power’ in the auto aftermarket by providing best value product offers and the stickiest service proposition Core Wesfil strengths • A reputation of consistency, loyalty, care and openness – internally and e
Slide 54: Strong key account focus while supporting the independents
Customer Strong key account focus while supporting the independents Direct to store distribution • Within circa 25 ‘Major Customer Groups’ Wesfil service over 1500 stores directly • Our Direct to Store (DTS) distribution model provides customers a fast and agile service facilitated through our geogr
Slide 55: Range, range, range
Product Range, range, range Range within key product categories must be extensive and cover near full car parc • Fast new vehicle product ‘time to market’ is critical • Selective introduction of new product • Diversify away from ICE but at our core remain a drivetrain business • Demand for ICE filtr
Slide 56: Back end of Q3 strengthens after Covid and its various strains abate
Back end of Q3 strengthens after Covid and its various strains abate Business update • Tough H1 with Q1 COVID-19 lockdowns disproportionally affecting Sydney and later Melbourne DTS distribution as customer stores were forced to operate at limited capacity or temporarily shut altogether • Q2 post lo