Amotiv Limited · ASX:AOV
Amotiv — Investor Day (October 2019)
123 slides from Amotiv's investor day presentation, Oct 1, 2019
Slide 1: Investor Day – 1 October 2019 ASX cover letter
1 October, 2019 Manager, Company Announcements ASX Limited Level 4 20 Bridge Street SYDNEY NSW 2000 Dear Sir Investor Day – 1 October, 2019 Attached is a copy of presentations to be given by Graeme Whickman, Managing Director and CEO, GUD Holdings Limited and by CEO’s and Executive General Manager’s
Slide 2: Investor Day – 1 October 2019: Martin Fraser, CFO
Investor Day – 1 October 2019 GUD HOLDINGS LIMITED Martin Fraser Chief Financial Officer 1
Slide 3: GUD investor day schedule
GUD investor day schedule GUD HOLDINGS LIMITED 2
Slide 4: Investor Day – Graeme Whickman, Managing Director
Investor Day – 1 October 2019 GUD HOLDINGS LIMITED Graeme Whickman Managing Director 3
Slide 5: GUD investor day line-up
GUD investor day line-up GUD HOLDINGS LIMITED 1. Welcome and overview of the day – Martin Fraser 2. Group overview – Graeme Whickman 3. Davey overview – David Worley 4. Automotive overview - Graeme Whickman / Bob Pattison 5. BWI overview – George Davies – CEO BWI 6. Filtration overview – Graeme Whic
Slide 6: Group Structure – July 2019
Group Structure – July 1 , 2019 GUD HOLDINGS LIMITED + GUD Holdings Automotive Water Acquisitions Davey Ryco IM AA Wesfil DBA BWI Filters Group Gaskets Griffiths Flatter reporting structure - Faster decision making - Closer to the customer – Dedicated acquisition role 5
Slide 7: 2019 Highlights
6 2019 Highlights
Slide 8: FY19 Highlights
FY19 Highlights GUD HOLDINGS LIMITED FY19 Earnings • Revenue from continuing operations up 9% on pcp $M FY19 FY18 % Change • Underlying EBIT from continuing operations up 6% on pcp Revenue 434 397 9% • NPAT from Continuing Operations up 18% on pcp, 13% net of tax provision writeback EBITDA* 92 87 6%
Slide 9: Group Strategy
GUD HOLDINGS LIMITED GROUP STRATEGY 8
Slide 10: Strategic Review
Strategic Review GUD HOLDINGS LIMITED 12 month review nearing completion • Reaffirmed current business portfolio positioning • Appetite remains for logical acquisitions in the Automotive segment with revised acquisition strategy and criteria • Three areas of concentration to support five categories
Slide 11: Areas of concentration
Areas of concentration GUD HOLDINGS LIMITED Sharpening the Strategic Direction CORE GROWTH ACQUISITION Group Wide Initiatives Individual Business Unit Strategies Portfolio and Category Plans + Strengthening Business Foundations Customer Supplier People Cycle Product Cycle Operational Relationships E
Slide 12: Sharpening the Strategic Direction
Sharpening the Strategic Direction GUD HOLDINGS LIMITED CORE GROWTH ACQUISITION Group Wide Initiatives Individual Business Unit Strategies Portfolio and Category Plans • Multi-year preferred customer agreements • Competitive strategy review by business • Dedicated KMP role focused on automotive in s
Slide 13: Sharpening the Strategic Direction - Core
Sharpening the Strategic Direction - Core GUD HOLDINGS LIMITED CORE Status as at 30 September Group Wide Initiatives • Multi-year preferred customer agreements • WIP planning for further leverage opportunities with new preferred agreements with customers in select automotive categories • COG’s attac
Slide 14: Sharpening the Strategic Direction - Growth
Sharpening the Strategic Direction - Growth GUD HOLDINGS LIMITED GROWTH Status as at 30 September Individual Business Unit Strategies • Competitive strategy review by business • All business units in process of refreshing strategic plan, each BU utilising “Playing to unit to be completed FY20 H1 - f
Slide 15: Sharpening the Strategic Direction - Acquisition
Sharpening the Strategic Direction - Acquisition GUD HOLDINGS LIMITED ACQUISITION Status as at 30 September Portfolio and Category Plans • Dedicated KMP role focused on automotive • Bob Pattison in role since Q4, FY19 acquisitions and strategy • No change in GUD acquisition appetite, funding or view
Slide 16: Outlook
GUD HOLDINGS LIMITED OUTLOOK 15
Slide 17: Automotive Outlook
Automotive Outlook GUD HOLDINGS LIMITED Challenging trading conditions are expected to persist in the Automotive aftermarket sector remains structurally attractive near term although planned mitigation actions are in and GUD’s brands are well positioned to deliver sustained progress: organic growth
Slide 18: Water Outlook
Water Outlook GUD HOLDINGS LIMITED Solid and strengthening fundamentals Strategic direction execute medium term strategy • Great brand and OEM heritage with large global footprint • Continue to build scale organically, including export markets • Board endorsed compelling medium term strategy • Furth
Slide 19: Group Outlook
Group Outlook GUD HOLDINGS LIMITED GUD’s portfolio is robust and remains structurally well positioned to deliver continued strong returns for shareholders FY20 is expected to focus on medium term value rather than short term EBIT growth: • Deliver supplier savings • Increase our revenue management d
Slide 20: Q&A
Investor Day – 1 October 2019 GUD HOLDINGS LIMITED Q&A 19
Slide 21: Disclaimer
Disclaimer GUD HOLDINGS LIMITED Important notices This Presentation has been prepared by GUD Holdings Limited (ABN 99 004 400 891) (“GUD” or “Company”). Summary information This Presentation contains summary information about GUD and its activities current as at July 26th, 2019. The information in t
Slide 22: Davey Water Products – 2019 Investor Day
Davey Water Products GUD HOLDINGS David Worley LIMITED 2019 Investor Day 1st October, 2019
Slide 23: Basic Facts
Basic Facts GUD HOLDINGS LIMITED • Revenue $107m • Staff Numbers 243 • Manufacturing/assembly Scoresby • Branches/DistributionBrisbane, Sydney, Adelaide, Perth, Auckland, Lyon • 16,000 Finished Goods SKUs 2
Slide 24: Davey - Heritage
Davey - Heritage GUD HOLDINGS LIMITED • Iconic Brand, 85 year heritage • Strength in rural heartland • Home & garden, agricultural & pool segments • Historic acquisitions of Contamination Control (Water Treatment) (2005) and Monarch (Chlorination) (2006) • Strong distribution partnership with Master
Slide 25: Business Environment – Market Size
Business Environment – Market Size GUD HOLDINGS LIMITED Mining/Industrial/ Power/Oil & Gas c.$610m Australian pump sales $1.26 billion* Water/Waste Davey’s share of Water/Agriculture/ Construction/Pool applicable segments c. $648m c. 10% IBIS 4
Slide 26: Business Environment – Competition
Business Environment – Competition GUD HOLDINGS LIMITED • Market leaders are seen to be Davey, Grundfos / DAB, Pentair / Onga in water transfer and Fluidra (Zodiac / Astral) in Pool • Globally competitive market – mix of Northern hemisphere and Asian imports • Market dominated by large European and
Slide 27: Davey Around the world
DAVE Y Around the world
Slide 28: Products
Products Davey’s traditional heartland is pumping
Slide 29: Product Introduction
Product Introduction Product development increasing since 2016; device control overlays becoming increasingly important
Slide 30: Operating Environment – Revenue Split
Operating Environment – Revenue Split* *Category & country sales data less than 10% not shown GUD HOLDINGS LIMITED Household & Farm Pool Equipment Commercial Pumps Fire Fighters Water Conservation & Spa Equipment Pumps Treatment AU 35% 20% 15% 10% NZ 25% 10% 45% 10% Middle East 75% 15% FR 90% Asia 4
Slide 31: Davey Strategy
Davey Strategy GUD HOLDINGS LIMITED Competitive Strategy • Customer intimacy strategy with product designed for Australia Competitive advantage • The local hero, solving local water problems – smart water management from transfer to engineered solutions • We know and understand our customers better
Slide 32: Davey purpose, vision and strategic imperatives
DAVEY Purpose: Protect and Enhance people's lives with water Vision: Enabling smart water management from transfer to engineered solutions Primary Market Segments: House & Garden / Farm & Agriculture / Pool Lea) Strategic a i ty Imperatives Supply Chain Product Channels to Market People & Culture Sa
Slide 33: People & Culture - Key Initiatives FY20
People & Culture - Key Initiatives FY20 GUD HOLDINGS LIMITED SAFETY ALIGNED & CAPABLE TALENT MANAGEMENT VALUES & CULTURE • Fatal Risk Action Plan LEADERSHIP TEAM • Davey Values SMART Objectives • Build high performance & Campaign √ launched, reinforced • Performance Mgmt √ team -66% leadership • Cri
Slide 34: Channels to Market - Key Initiatives FY20
Channels to Market - Key Initiatives FY20 GUD HOLDINGS LIMITED Category Management GROW TRADITIONAL Innovation GROW OEMMissions New GROWTechnologies DIRECT Group WIN ONLINE •CHANNELS Sku Rationalisation • Water treatment • Build on recentAUS • CHANNEL Complementation by • Complementation • Australia
Slide 35: Product – Key Initiatives FY20
Product – Key Initiatives FY20 GUD HOLDINGS LIMITED Category Management Innovation Missions New Technologies Group • Sku Rationalisation • Water treatment AUS • Complementation by • Complementation of • Product Roadmap • Water pressure external parties or GUD Group • Pool technology Intellectual Pro
Slide 36: Supply Chain Key Initiatives FY20 - updated
Supply Chain Key Initiatives FY20 - updated GUD HOLDINGS LIMITED COST DOWN SUPPLY CHAIN STRATEGIC PARTNERSHIPS Production efficiency OPTIMISATION Technology collaboration Make versus buy Chlorinator line Supplier Collaboration Resource planning Home pressure systems Logistics costs 15
Slide 37: Davey purpose, vision and strategic imperatives
DAVEY Purpose: Protect and Enhance people's lives with water Vision: Enabling smart water management from transfer to engineered solutions Primary Market Segments: House & Garden / Farm & Agriculture / Pool Lea) Strategic a i ty Imperatives Supply Chain Product Channels to Market People & Culture Sa
Slide 38: Davey Water Products Q&A
Davey Water Products GUD HOLDINGS GUD HOLDINGS LIMITED LIMITED Q&A
Slide 39: Automotive Overview – Bob Pattison
Investor Day – October 1st 2019 Automotive Overview GUD HOLDINGS LIMITED Bob Pattison GM Automotive, Strategy & Acquisition 1
Slide 40: Automotive Aftermarket Industry Landscape
Automotive Aftermarket Industry Landscape GUD HOLDINGS LIMITED Source: AAAA Industry Snapshot Q2 2019 2
Slide 41: 2 out of 3 vehicles sold is an SUV or Ute
2 out of 3 vehicles sold is an SUV or Ute GUD HOLDINGS LIMITED New Vehicles Sales – composition by vehicle segmentation (%) 100% 90% 80% 70% } 39% } 66% 60% 50% 40% 30% 20% 10% 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 19YTD Passenger Car SUVs LCVs HCV Source: FCAI Vfacts, August 2019 3
Slide 42: Shift in Car parc composition complements GUD portfolio
Shift in Car parc composition complements GUD portfolio GUD HOLDINGS LIMITED Car parc composition CY17 vs CY18 vs YTD19 Pick-ups Pick-ups Pick-ups 18% 22% 16% SUV's SUV's SUV’s 39% 43% 46% Other Other Other Passenger Passenger Passenger Vehicles Vehicles Vehicles 36% 32% 44% December, 2017 December,
Slide 43: Australian Car parc growing older, growing the Aftermarket
Australian Car parc growing older, growing the Aftermarket GUD HOLDINGS LIMITED Australian Car parc – Average Vehicle Age (years) – All Vehicles 10.5 10.4 10.3 10.2 10.1 Aging vehicles require more service and repair 10 9.9 9.8 9.7 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 202
Slide 44: Australian Car parc - Vehicle Population by Fuel Type
Australian Car parc - Vehicle Population by Fuel Type GUD HOLDINGS LIMITED Projected change in the number of vehicles by 000’s 2018 2020 2023 Var units fuel type – 2018 to 2023 Petrol 13,390 13,600 13,800 410 1,400 1,200 Unit change (000’s) Diesel 4,490 5,100 5,650 1,160 1,000 800 LPG/Dual 310 220 1
Slide 45: State of EV's in Australia - 2019
State of EV’s in Australia - 2019 GUD HOLDINGS LIMITED “Our lack of national co-ordination and support has resulted in stagnant uptake and restricted some of this potential. While 2.1 million electric vehicles were sold globally in 2018, Australia lagged behind with 2,216 sales in the same year…. Au
Slide 46: Key Industry Trends
Key Industry Trends GUD HOLDINGS LIMITED • Continuing growth in carparc • Average vehicle age increasing • Rising proportion of SUVs and Utes • High levels of model proliferation 7 out of 8 • Rising proportion of diesel fuel vehicles trends are positive to • Slow rate of EV adoption aftermarket • Le
Slide 47: GUD Automotive Group revenue & EBIT performance
GUD Automotive Group revenue & EBIT performance GUD HOLDINGS LIMITED Automotive revenue ($M) Automotive EBIT ($M) 350 100 27% CAGR 90 22% CAGR 300 80 250 70 200 60 50 150 40 100 30 20 50 10 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 • Significant growth of Revenue and EBIT dollars • Acqui
Slide 48: Transitioning product portfolio to reduce reliance on ICE
Transitioning product portfolio to reduce reliance on ICE GUD HOLDINGS LIMITED FY19 Estimated Automotive Segment Sales Split ICE mix in 2015 was 90% Currently 59% of GUD’s automotive segment sales are to non-internal combustion engine applications: ICE- related • Narva - lighting and electrical 41%
Slide 49: Route to Automotive Aftermarket
Route to Automotive Aftermarket GUD HOLDINGS LIMITED End Users [Vehicle Owners/Fleets] Do it for me (DIFM) Do it yourself (DIY) Online Market Places Workshops [Chains/Independents] (non bricks and mortar) Independent Resellers National Trade Distributors National Retail Distributors Wholesalers/Prod
Slide 50: GUD Customer Diversification
GUD Customer Diversification GUD HOLDINGS LIMITED Segmentation of GUD Automotive Revenue Customer Sales GPC - $82M Bapcor - $81M Other CustomersSupercheap - $28M 46% Auto One - $12M Top 3 Customers Cooldrive - $5M 54% Paccar - $4M Bunnings - $4M Other - $135M TOTAL - $351M Top 3 Customers Other Cust
Slide 51: GUD Channel Diversification
GUD Channel Diversification GUD HOLDINGS LIMITED Aftermarket - Trade Aftermarket - Retail Auto Electrical Brake Specialist Battery Specialist Electronic Specialst 4WD - Camping Industrial / Mining Hardware OEMs Transport Emergency vehicle Marine Caravan / Trailer 13 Export
Slide 52: GUD Recent Acquisitions
GUD Recent Acquisitions GUD HOLDINGS LIMITED 2015 2016 BWI added Griffiths 2017 2017 2018 (Narva & Equipment IMG added AAG added DBA added Projecta) added 14
Slide 53: GUD Acquisition Opportunities
GUD Acquisition Opportunities GUD HOLDINGS LIMITED Top Auto Example of Parts & Components Current GUD Categories Position Filters Air Filters, Cabin Filters, Fuel Filters, Oil Filters Strong Oil Additives, Antifreeze, Auto Transmission Oil, Engine Oil, Greases, Hydraulic oil, Manual gearbox & Diff O
Slide 54: GUD Acquisition Summary
GUD Acquisition Summary GUD HOLDINGS LIMITED • 5 Acquisitions since 2015 • Significant acquisition opportunities remain • GUD M & A has active pipeline • GUD balance sheet is supportive • GUD is positioned to participate in aftermarket consolidation 16
Slide 55: Questions
Questions
Slide 56: Brown & Watson International – George Davies, CEO
Brown & Watson International GUD HOLDINGS LIMITED Investor Day - October George Davies 2019 CEO 1
Slide 57: Our background
Our background BROWN AND WATSON INTERNATIONAL PTY LTD • Established 1953 • Acquired by GUD 2015 • Acquired GEL Oct 2016 • Brands – Narva, Projecta, Osram, Philips, Big Red, MaxiLite • Product – 9,600 SKUs across Automotive Lighting, Electrical and Power • Markets - Automotive aftermarket trade and r
Slide 58: Geography
Geography BROWN AND WATSON INTERNATIONAL PTY LTD Revenue by Country • Australia – 84% • New Zealand – 12% • France – 2% • Other – 2% 3
Slide 59: 6 brands across lighting, electrical and power
6 brands across lighting, electrical and power BROWN AND WATSON INTERNATIONAL PTY LTD NARVA PROJECTA PHILIPS OSRAM BIG RED MAXILITE 6700 SKUs 725 SKUs 375 SKUs 236 SKUs 46 SKUs 37 SKUs Lighting & Power Lighting Lighting Lighting Lighting Electrical $$ - Mid Shelf $$ - Mid Shelf $$$ - Premium $$$ - P
Slide 60: Sales channels by brand
Sales channels by brand BROWN AND WATSON INTERNATIONAL PTY LTD NARVA PROJECTA PHILIPS OSRAM BIG RED MAXILITE Auto trade Auto trade Auto retail Auto electrical Online Auto retail Auto retail Auto retail Auto electrical Auto electrical Auto electrical Truck & trailer Truck & trailer Body builder Batte
Slide 61: Our DNA
Our DNA BROWN AND WATSON INTERNATIONAL PTY LTD • Address all segments to deliver an efficient “one stop” supplier product portfolio. • Heritage of innovation with quality • Able to supply products at varying feature, benefits and price points • More responsive than traditional major and global compe
Slide 62: Where we left off last year
Where we left off last year BROWN AND WATSON INTERNATIONAL PTY LTD • 12.9% Revenue CAGR (FY15-18) • 14.2% EBIT CAGR (FY15-18) • FY19 - flat year on year • Large exposure to FX • Core channels steady • Trade and Retail • Growth channels flat • Truck and Body Builders • Public Safety • FY18 Q4 - Custo
Slide 63: Core Priorities
Core Priorities BROWN AND WATSON INTERNATIONAL PTY LTD • FY20 focus • P&L • Price Increase (Oct 2019) • Protect our core channels and re-focus on growth channels with new formed department • Improved product sourcing & operational efficiency • NWC • Improving Creditor Days • Continued inventory redu
Slide 64: Core – Narva products
Core – Narva products BROWN AND WATSON INTERNATIONAL PTY LTD • Narva catalogue released at AAAE • LED technology continues to replace halogen and incandescent • Traditional products are in decline • LED technology lower wear rate • LED technology more expensive than replacements but becoming more af
Slide 65: Core - Narva Catalogue
Core - Narva Catalogue BROWN AND WATSON INTERNATIONAL PTY LTD • 720 New Products on track to outperform previous catalogues New Product Revenue from Catalogue • New Marine Sections • Navigation LED Lamps • Underwater Lights • Timing of release coincided with customer inventory pressure • BWI Invento
Slide 66: Core - Projecta
Core - Projecta BROWN AND WATSON INTERNATIONAL PTY LTD • Launched new Intelli-RV • Comprehensive power management system solution • Collaborative design input using innovation process from both customer and supplier • Suits caravans and RV • Easier & safer installation and battery/solar management •
Slide 67: Growth Pathways – Emerging Sales Channels
Growth Pathways – Emerging Sales Channels BROWN AND WATSON INTERNATIONAL PTY LTD • Public Safety • Police, Fire and Ambulance (Power & Lighting) market estimated to be $40m+ • New Partnership with USA specialist supplier Federal Signal further opens up the market offering • Opportunity to double rev
Slide 68: Growth Pathways - New Product
Growth Pathways - New Product BROWN AND WATSON INTERNATIONAL PTY LTD • Innovation integrated into new New Product as a % of Total Revenue product developed 9.0% • New products continue to drive 8.0% sales growth 7.0% • Product life cycles reducing 6.0% 5.0% • New technologies giving rise to new prod
Slide 69: Growth Pathways - Geography
Growth Pathways - Geography BROWN AND WATSON INTERNATIONAL PTY LTD • Export sales growth 18%, opportunity to continue growing at double digits off a low base • USA – Partnering with established $100m power business as well as leveraging relationship with ANZ customer • UK – Partnering with establish
Slide 70: Questions and Answers
Questions and Answers BROWN AND WATSON INTERNATIONAL PTY LTD • Questions? 15
Slide 71: Filtration Overview – Graeme Whickman
Investor Day – 1 October 2019 Filtration Overview GUD HOLDINGS LIMITED Graeme Whickman CEO GUD Holdings Ltd 1
Slide 72: Australian Filter Segment
Australian Filter Segment GUD HOLDINGS LIMITED Brand Position GUD Brands Competitor Brands Best OE Mann (Euro range) Better House Brands - Repco Sakura AC Delco Fram Good House Brands - Silverline Valvoline (approx. 10% of segment) 2
Slide 73: Ryco and Wesfil
Ryco and Wesfil GUD HOLDINGS LIMITED Business Model Pull model Push model Positioning Premium Value Product Meets or exceeds OE spec Fit for purpose Distribution National distribution chains Independent Resellers & Bapcor (started as an Independent) Category Management Through national head offices
Slide 74: Independent workshop perception of key filter brand attributes
Independent workshop perception of key filter brand attributes GUD HOLDINGS LIMITED brands
Slide 75: More than 50% choose Ryco as recommended brand
If customers are asked to choose one brand to recommend, more than 50% choose Ryco GUD HOLDINGS LIMITED Recommend one brand Australia 100 80 60 54 40 23 20 11 2 2 4 4 0 0 Ryco Wesfil/Cooper Brand #3 Brand #4 Brand #5 Brand #6 Brand #7 Brand #8 Q5b.If you had to recommend one brand of filters to some
Slide 76: Ryco
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Slide 77: Our heritage and dimensions
Our heritage and dimensions History • Established 1936 • Ceased local manufacture 2006 in Australia and 2008 in New Zealand • Partner with 14 supply partners, mainly from Asia and Europe • Maintained production QC capability to monitor and develop supply partners • Enhanced Product design and develo
Slide 78: Our heritage and dimensions
Our heritage and dimensions Melbourne Head Office, R&D, Laboratory & Warehouse Auckland Warehouse and Sales Office Sales Office – Perth Sales Office – Brisbane Sales Office – Sydney Sales Office - Adelaide
Slide 79: Our DNA
Our DNA Product DNA • As good or better than OEM quality • Exceptional cataloguing; physical and on line. • Exceptional ranging; better than OEM’s. Often the only supplier for older vehicles. Reseller DNA • Brand drives garages to my stores – must have brand • Very high product availability ex wareh
Slide 80: Our Products across 4 main categories
Our Products across 4 main categories Oil Filters Engine Air Cabin Air Fuel Filters Ryco’s range covers Ryco’s range Ryco’s range Ryco’s range 98% of the carpark covers 96% of the covers 99% of covers 90% of and includes spin-on, carpark and the carpark and the carpark cartridge and high includes no
Slide 81: Our Channels to Market
Our Channels to Market TRADE RETAIL ONLINE Ryco’s heritage is as a trade As more of Ryco’s customers Customers are increasingly brand, helping Australian and become interested in Do it shifting their buying behaviour New Zealand mechanics to Yourself (DIY) and Do it For Me online. Ryco meets that de
Slide 82: Our customers
Our customers BURSON [AUTO PARTS | snail Veale pMeale| (iq) TROCKLINE CN mycar ~ Truck & Trailer Parts LUBE MOBILE
Slide 83: Our end users
Our end users Ryco end user customers • 21K active Ryco customers on Salesforce; predominately independent workshops • 26K end user customer or prospective calls per annum New customer conquests • 450 new converts per annum • 1350 new customers over the past 3 years
Slide 84: Core Business Priorities
Core Business Priorities Recurrent priorities: Product range • 300+ New Products pa • 96% + Range Coverage FY20 priorities Margin management • Price adjustments and supplier cost downs to address FX and domestic cost inflation • Selective SKU repricing Leverage preferred supplier agreements Inventor
Slide 85: Innovation
Innovation Solving customer Problems • Innovative product solutions Case Study: Ryco Catch Can • Fitting tools, oil filter caps, Fuel filter accessories • Co-created with mechanics, using 3D- • Knowledge experts printed samples to iterate final design • Team at Ryco created a new technical standard
Slide 86: Growth drivers
Growth drivers Carparc growth Continuance of Conquest activity 4x4 segment market share growth • Catch cans • Fuel/water separators • Vehicle specific fitment kits Japanese Truck range expansion
Slide 87: Ryco Q&A
Q&A FltuowgTt€& RS
Slide 88: Wesfil Strategy 2019 Investor Day Presentation
GUD HOLDINGS LIMITED Wesfil Strategy 2019 Investor Day Presentation Presented by Terry Cooper Managing Director
Slide 89: Wesfil Australia – History and Overview
WESFIL AUSTRALIA GUD HOLDINGS LIMITED HISTORY AND OVERVIEW • Started 1984 by current CEO Terry Cooper. • GUD acquired Sydney based business in 1996. Townsville • Additional 7 sites added. Most recently Arndell Park in Western Sydney in late FY18. Brisbane • 130 staff Australia wide. • 15k SKUs cover
Slide 90: Wesfil Australia – How We Win
WESFIL AUSTRALIA GUD HOLDINGS LIMITED HOW WE WIN – WESFIL’s DNA • Strong sales target and Customer service culture & system • Deep & intimate customer relationship and know-how which informs product, service & sales • Deep product know-how backed with strong supplier relationships • Reputation for q
Slide 91: Wesfil Australia – How We Help Our Customers Win
WESFIL AUSTRALIA GUD HOLDINGS LIMITED HOW WE HELP OUR CUSTOMERS WIN • Client delivery synergy via extensive branch network, in-house metro deliveries, customer pick up facilities and direct to store distribution. • Support, educate and develop independent resellers with category and inventory manage
Slide 92: Wesfil Australia – Product Overview
WESFIL AUSTRALIA GUD HOLDINGS LIMITED PRODUCT OVERVIEW • We supply the combustion engine filtration market with a comprehensive range. • We compliment this with the distribution of other aftermarket products where we can disrupt with price, product, service and access. • Key product categories inclu
Slide 93: Wesfil Australia – Recent Product Introductions
WESFIL AUSTRALIA GUD HOLDINGS LIMITED RECENT PRODUCT INTRODUCTIONS New products complement future growth, including Non-ICE revenue. • Cooper Kleen Range • LED Globes • Engine Management • Wipers • DPF (ICE) • Iridium Spark Plugs (ICE)suppliers (GPC/Rep). 6
Slide 94: Wesfil Australia – Core Business Priorities
WESFIL AUSTRALIA GUD HOLDINGS LIMITED CORE BUSINESS PRIORITIES • Continued success of independent parts resellers • Supplier cost reductions • Improved efficiency and hence overhead leverage • Margin management through FY20 • Recover FX deflation in higher prices. • Sufficient price increases or sup
Slide 95: Wesfil Australia – Growth Drivers
WESFIL AUSTRALIA GUD HOLDINGS LIMITED GROWTH DRIVERS New category Car Parc growth introductions Logical expansion of further Range expansion distribution in existing points building categories on success of Arndell Park 8
Slide 96: Wesfil Australia Q&A
WESFIL AUSTRALIA GUD HOLDINGS LIMITED Q&A 9
Slide 97: AA Gaskets – Stuart Chandler
AA Gaskets GUD HOLDINGS LIMITED Investor Day – October 1, 2019 Stuart Chandler – Executive General Manager 1
Slide 98: Introduction
Introduction Overview • Established 1955 • Partially acquired by Coventry Group in 1987 • Fully acquired by GUD in December 2017 • 71 employees across ANZ • Australia’s leading Gasket supplier Product Overview • ~35K Finished Goods SKU’s across ANZ • ~65K Component SKU’s across ANZ • 95% of product
Slide 99: Where we play - Geography
Where we play - Geography Melbourne Head Office, Kitting, Manufacturing & Warehouse Auckland Warehouse 3
Slide 100: Where we play - Segments
Where we play - Segments Engine Specialists Trade Wholesale Online Segments where we participate • Passenger Car, including parallel vehicle imports in NZ • 4WD/SUV and light duty diesel Where we do not currently participate • Truck (Japanese/North American/European) • Off highway Commercial Vehicle
Slide 101: Where we play – Brands
Where we play – Brands Economy Range OE Spec Performance Wholesale to Bapcor Competitor Landscape Economy OE/Performance • Home brands/direct import • OEM Distribution programs • Driv • Platinum • European Specialist Brands 5
Slide 102: Where we play – Products
Where we play – Products Product Offering • Automotive Gaskets • Full engine sets • Service level components and kits (including rocker cover, manifold, turbo, and exhaust gaskets) • Transmission gaskets • Gaskets material packs • Oil Seals • Bespoke Industrial Gaskets (gas meter gaskets) 6
Slide 103: AAG - Pre acquisition Situation
AAG - Pre acquisition Situation Products • Insufficient focus on new products development and Car Parc expansion • No clear sourcing (make versus buy) approach implemented • Limited supplier engagement • Poor pricing disciplines People • Insufficient development of future talent and leaders • Team e
Slide 104: AAG - Post acquisition
AAG - Post acquisition Products • Introduced New Product development framework • Product releases up 70% vs PY – 850 SKU’s • Carparc coverage up 220% vs PY - >2M vehicles updated with new and existing products • Increased sourcing resources and supplier engagement • Broadened supply base and secured
Slide 105: Core Business Priorities
Core Business Priorities Margin management • Price management through FY20/21 • Lower costs through business restructure Supplier management • Price reductions • Supplier capability development Business restructure • Relocation of AAG to Altona • Relocation of NZG to GUD shared warehouse • Adopt Ryc
Slide 106: Growth drivers
Growth drivers Car Parc growth and mix changes Product driven market share gains • Ranging opportunities • Release complementary products • Segment expansion – Japanese Truck 10
Slide 107: AA Gaskets Q&A
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Slide 108: Disc Brakes Australia – Gideon Segal
GUD HOLDINGS Disc Brakes Australia LIMITED 2019 Investor Day – October 1, 2019 Gideon Segal - Executive General Manager 1
Slide 109: Disc Brakes Australia - Overview
Disc Brakes Australia - Overview GUD HOLDINGS LIMITED • Established in 1970’s 4000 & 5000 Series Variants • Formerly 100% Australian family owned • Acquired by GUD in July 2018 • Over 40 years’ manufacturing experience • Australia’s most awarded manufacturer and a global leader in brake rotor develo
Slide 110: Operations Snapshot
Operations Snapshot GUD HOLDINGS LIMITED • 50 employees across Australia • Contract sourcing of O.E. specification and Street Series (“good” segment) products • Selling over 400,000 disc brakes, drums and disc pads per year • Local manufacturing capabilities in Sydney, combined with overseas sourcin
Slide 111: Where do we play – Geographic overview
Where do we play – Geographic overview GUD HOLDINGS LIMITED Europe distributor (Poland) UK Sales rep Export - 25% sales Russian Distributor Domestic Export Asia Distributors, Sales Agents USA distributors & sales agent and Component and OE Suppliers Stocks currently held in 3PL’s Middle East Distrib
Slide 112: Where do we play - segments
Where do we play - segments GUD HOLDINGS LIMITED O.E. spec Good Better Best Street Series Street Series 4000 Series 5000 Series Domestic competitor brands
Slide 113: Where we play - segments
Where we play - segments GUD HOLDINGS LIMITED O.E. spec Good Better Best Street Series Street Series 4000 Series 5000 Series Channels to Market Major parts resellers – Specialist performance resellers - Online resellers Export via distributors in USA, Europe, Russia, Middle East, Asia – 100% “better
Slide 114: Product foundations for enduring success
Product foundations for enduring success GUD HOLDINGS LIMITED • DBA has focused on their premium performance products with extensive IP covering: - Kangaroo paw pillar design – improved air flow providing superior cooling & therefore improved performance - High carbon material - T2 & T3 slotting des
Slide 115: Case Study – Safety Test
Case Study – Safety Test GUD HOLDINGS LIMITED • Application: standardized emergency braking test from 100km/h to https://www.youtube.com/watch?v=6QvNZ3irSS8 standstill, with both an OEM brake setup vs. DBA’s upgrade • The DBA upgrade - 4×4 Survival Series T3 4000 slotted discs, DS Performance brake
Slide 116: Disc Brakes Australia – pre acquisition
Disc Brakes Australia – pre acquisition GUD HOLDINGS LIMITED • Thorough due diligence exercise completed • Review of USA operations undertaken - USA operations restructuring committed prior to completion - 3 team members exited • Founder/CEO signified his desired to step away from full time work - S
Slide 117: Disc Brakes Australia – post acquisition
Disc Brakes Australia – post acquisition GUD HOLDINGS LIMITED • Immediate focus on OH&S practices and process improvements • Introduced GUD innovation methodology • Secured government grant for product innovation • Appointed dedicated International Sales Manager • Appointed International Sales Agent
Slide 118: Core Business Priorities
Core Business Priorities GUD HOLDINGS LIMITED • Margin management - Supplier cost downs - Price rises in FY20 – both export and domestic • Inventory Optimisation • US tariffs not expected to impact USA sales volumes or profitability • Production efficiency – new manufacturing equipment (approx. $1m
Slide 119: Growth drivers
Growth drivers GUD HOLDINGS LIMITED • Australian Car Parc growth • Replicate Australian market distribution in NZ • Export opportunities and markets beyond ANZ - including R90 certification (European standard) • New product - Expansion of brake friction ranges to fully complement disc rotor range -
Slide 120: Disc Brakes Australia Q&A
doa DISC BRAKES AUSTRALIA ID HOLDINGS LIMITED 13
Slide 121: Appendix
GUD HOLDINGS LIMITED Appendix 14
Slide 122: Case Study – 4X4
Case Study – 4X4 GUD HOLDINGS LIMITED Application: Project 200’s owner, Jamie Benaud, was looking for “the best rotors” for his 200 Series Toyota LandCruiser to create a very capable and durable outback tourer that’s also suitable for day-to-day suburban driving • The LandCruiser 200 comes equipped
Slide 123: Case Study - Performance
Case Study - Performance GUD HOLDINGS LIMITED Application - performance upgrade for Audi S3 8P for general commuting and occasional track work • The Audi S3 8P has garnered a cult following and presented a genuine European alterative to the Subaru WRX STI and Mitsubishi Evolution • By upgrading hard