Slide 1: 2024 Full Year Results Presentation
14 August 2024 Manager Company Announcements ASX Limited Level 4, 20 Bridge Street SYDNEY NSW 2000 2024 Full Year Results Presentation Please find attached for immediate release to the market the 2024 Full Year Results Presentation. For inquiries: Graeme Whickman Managing Director & Chief Executive
Slide 2: FY24 Result
FY24 Result Graeme Whickman, CEO & MD Martin Fraser, CFO 14 August 2024 1
Slide 3: Disclaimer
Disclaimer Important notices This presentation has been prepared by Amotiv Limited (ABN 99 004 400 891) formerly GUD Holdings Limited (“Amotiv” or “Company”). Summary information This Presentation contains summary information about Amotiv and its activities current as at 14 August 2024. The informat
Slide 4: Contents
Contents Key Messages and Financial Overview 4 Divisional Reviews 14 Financials 21 Strategy, Trading Update and Outlook 26 Appendix A 30 Including glossary of terms Appendix B 46 Including supplementary financial information Images from the May Investor Day held at the Cruisemaster Towing Performanc
Slide 5: Amotiv Group – Key messages
Amotiv Group – Key messages1 Result in line with Strong execution Strong cash Continuing to Further growth in guidance driven reflected in gross conversion, advance key Group revenue by above system margin expansion ongoing debt growth initiatives and underlying organic growth and improved reduction
Slide 6: Amotiv Group is a diversified automotive parts company
Amotiv Group is a diversified automotive parts company benefiting from resilient, largely ICE agnostic and non-discretionary revenues New divisions reflect strategic positioning Global strategic footprint - expands reach and TAMs that combines resilience and growth 33%1 Lighting, Power & $987.2m c.
Slide 7: Group financial highlights
Group financial highlights1 ‒ Underlying EBITA in line with guidance of “at least $193.5m”, with all segments Revenue2 NPAT – statutory performing in line with expectations + 7.7% to + 6.5% to ‒ Revenue includes 5.8% organic growth driven by ongoing strategic diversification into new geographies, ca
Slide 8: Group operating highlights
Group operating highlights1 Safety Employee engagement FY24 Awards LTIFR Better than 72% 76% Above global 7.7 6.6 Safe Work FY23 FY24 average of FY23 FY24 benchmark of 73%3 GPC Auto One 13.2 ‒ Supplier of the Year ‒ Supplier Of The Year: Safety commitment score Group Scope 1 and 2 emissions ‒ Automo
Slide 9: Building a stronger, more resilient and diversified business
Building a stronger, more resilient and diversified business Increased PD1 spend is supporting revenue growth now and in the future …including expanding into new geographies +~300% 1,000 ANZ USA Europe % outside of ANZ 20% 40 3.6 35 800 35 15% Revenue ($m) 3.4 30 600 25 3.2 +16pps 10% 20 3 400 15 9
Slide 10: Amotiv operates in large ANZ and specialist offshore TAMs
Amotiv operates in large ANZ and specialist offshore TAMs with significant potential for medium and long-term growth Europe ANZ Market Share $3b $0.4b TAM 1 (Revenue/TAM) TAM1 $3.0b TAM1 Australia and New Zealand 4WD Accessories $2.4b and Trailering TAM1 $0.0b TAM1 Lighting, Power $2.5b and Electric
Slide 11: Divisional structure strengthens the Group’s ability to drive growth
Divisional structure strengthens the Group’s ability to drive growth FY23 reporting segments – Automotive + Water divisions New FY24 reporting segments1 – reflecting 3 Auto divisions 3% 4WD Accessories Lighting, Power Powertrain APG Automotive Davey & Trailering & Electrical & Undercar 27% 70% 35% 3
Slide 12: Well positioned Divisions, with clear competitive advantages
Well positioned Divisions, with clear competitive advantages 4WD Accessories and Trailering Lighting, Power and Electrical Powertrain and Undercar Deep OE Partnerships Brand Building Powerhouse backed by Category Leading Brands Build share-of-wallet with OEM partners in PD/Innovation DNA Decades lon
Slide 13: Greenfield initiatives leverage competitive advantages
Greenfield initiatives leverage competitive advantages 4WD Accessories and Trailering Lighting, Power and Electrical Powertrain and Undercar Strategic, low-risk beachhead in attractive South Vision X leveraging R&D and targeted products Infinitev is investing today to lead the EV African (SA) market
Slide 14: Focused on strategic imperatives to drive growth
Focused on strategic imperatives to drive growth within existing portfolio Strategic Imperatives 01. Divisional optimisation ‒ Strategic focus is an enabler 4WD Accessories & Trailering ‒ Leverage scale Be the leader in 4WD Accessories and Revenue synergies Trailering in ANZ with future export
Slide 15: Divisional Review
Divisional Review Graeme Whickman, CEO and MD
Slide 16: 4WD Accessories and Trailering (4WDAT) – Key drivers
4WD Accessories and Trailering (4WDAT) – Key drivers Auto industry supply improvements evident in APG Top 20 (ANZ) but brand/model/country mix still variable – Caravan volumes reflect slowing industry APG Top 20 New Vehicle Sales (000’s) – ANZ FY241,2 APG Top 20 New Vehicle Sales Variance - ANZ FY24
Slide 17: 4WDAT – result in line with guidance
4WD Accessories and Trailering (4WDAT) – result in line with guidance EBITA growth and margin expansion in line with expectations $M FY24 FY23 Change - Improved vehicle supply conditions boosted Towing and Functional Accessories2 volumes, Revenue1 348.8 333.2 4.7% offsetting a less favourable model
Slide 18: Key FY24 Functional Accessories wins drive share of wallet gains
Key FY24 Functional Accessories wins drive share of wallet gains First Toyota Hilux Entry into South Africa Full Nissan Navara Great Wall Motors First Toyota cargo OE wins post Functional Accessory via Ford/VW invitation for functional accessories MOU - Accessories management competitor exits win (s
Slide 19: LPE and Powertrain and Undercar – Key drivers
LPE and Powertrain and Undercar – Key drivers SUV and Pick up segmentation remains strong xEV (inc ICE hybrids) growing, ICE still dominates Amotiv enjoys the benefit of an ageing car parc New Vehicle Sales – Australia – CY16 to CY30F1,2 Sales by fuel type (% of sales)1,4 Average Vehicle Age (years)
Slide 20: Lighting, Power & Electrical (LPE) - solid organic and acquisition growth
Lighting, Power & Electrical (LPE)1 - solid organic and acquisition growth Diversification strategy drives above system growth: building higher value $M FY24 FY23 Change and more resilient revenue streams Revenue2 324.5 286.3 13.3% ‒ Organic revenue growth of 7.3% combined with acquisitions to deliv
Slide 21: Powertrain and Undercar (PU) – solid result from wear & repair businesses
Powertrain and Undercar (PU)1 – solid result from wear & repair businesses Result reflects continued resilience of the wear and repair market and $M FY24 FY23 Change ongoing diversification into new customers, products and geographies Revenue2 313.9 297.0 5.7% ‒ Above volume system growth with reven
Slide 22: Financials
Financials Martin Fraser, CFO
Slide 23: Group financials – Continuing operations
Group financials – Continuing operations $M FY24 FY23 Change Comments Revenue 987.2 916.5 7.7% Reflects organic revenue $964.5m, acquisition revenue $22.7m COGS (552.1) (520.3) 6.1% Reflects growth Gross profit 435.1 396.2 9.8% Mix impacts and margin management Operating cost (211.3) (184.6) 14.5% R
Slide 24: Disciplined investment to support medium and long-term growth
Disciplined investment to support medium and long-term growth Ongoing investment in Product Development Capex increase reflects scaling of platform to Greenfield spend in line with forecast - (PD) and innovation to drive growth support future growth supporting medium and long-term growth PD spend by
Slide 25: Efficient management of NWC and strong cash conversion
Efficient management of NWC and strong cash conversion Tight management of NWC - increase below organic growth rate Net working capital (NWC)1 ‒ Organic NWC growth of ~3% below organic revenue growth of 5.8% Movement $M FY24 FY24 H1 FY23 vs H1 vs FY23 ‒ New segments highlight the lower NWC intensity
Slide 26: Significant balance sheet flexibility with compelling debt profile and cost
Significant balance sheet flexibility with compelling debt profile and cost Further reduction in leverage1 to bottom end Debt profile is compelling with long duration, …at an attractive “all in rate” of target range mostly fixed debt “All in” cost of funds Net Debt vs Net Debt/Adjusted EBITDA Maturi
Slide 27: Strategy, Trading Update and Outlook
Strategy, Trading Update and Outlook Graeme Whickman, CEO and MD
Slide 28: Trading Update and Outlook
Trading Update and Outlook1 Trading Update - July FY25 outlook 4WDAT ‒ Further growth in Group revenue and underlying EBITA is expected in FY25 ‒ Solid growth in revenue Wear and repair market expected to stay resilient ‒ NZ and caravan/RV softness has continued into FY25 NVS projected to remain
Slide 29: FY25 Strategic Imperatives
FY25 Strategic Imperatives 2025 Divisional South Africa Continue to Operational Continue to optimisation Establish build offshore excellence explore Revenue and operation revenue Above industry bolt-ons efficiency averages initiatives 28
Slide 30: Next horizon – Aspirations
Next horizon – Aspirations Drive the …with a safe …building a …with consistent …and high quality automotive and engaged stronger, more growth… financial and pure play… team… resilient company… Execute on significant sustainability results Deliver the six strategic Strive for zero harm Continue to di
Slide 31: Appendix A
Appendix A Supplementary information
Slide 32: Glossary of terms
Glossary of terms Term 4WDAT 4WD Accessories & Trailering Division AAAE Australian Automotive Aftermarket Expo, a major event held in Melbourne in April 2024 AAG AA Gaskets, a subsidiary company of Amotiv Ltd ACS Australian Clutch Services, a subsidiary company of Amotiv Ltd Adjusted EBITDA A non-IF
Slide 33: Glossary of terms (2 of 3)
Glossary of terms (2 of 3) Term FA Functional Accessories Gross margin (GM) Gross profit divided by revenue GP Gross profit, being revenue less cost of goods sold GPC Genuine Parts Company, a customer of Amotiv subsidiaries ICE Internal Combustion Engine (petrol or diesel fuelled) ICE Agnostic Reven
Slide 34: Glossary of terms (3 of 3)
Glossary of terms (3 of 3) Term NVS New Vehicle Sales NWC Net Working Capital, comprising of debtors and other receivables, inventory and creditors and other payables OEM Original Equipment Manufacturer OES Original Equipment Service Organic Removes the impact of acquisitions made in the current per
Slide 35: ESG as a competitive advantage - FY24 progress
ESG as a competitive advantage - FY24 progress Progress Progress Progress Progress Progress Progress • 89% safety commitment • Launched Group-wide paid • Established the Amotiv Asian • GreenPower4 electricity in • Achieved 75% non-ICE • Eight business signatories to score in employee survey parental
Slide 36: Portfolio changes creating Auto pure play
Portfolio changes creating Auto pure play accessing strategic growth corridors TIMELINE Sep 2023 Amotiv – Automotive Pure Play Davey divestment Divestment of Davey and acquisition profile realises Amotiv’s automotive pure-play ambition 2020 2021 2022 2023 2024 Feb 2021 Jan 2022 Nov 2022 Jun 2022 Mar
Slide 37: New divisions that balance resilience and growth
New divisions that balance resilience and growth Powertrain and Undercar Lighting, Power and Electrical 4WD Accessories and Trailering Division Division Division 36
Slide 38: Name change to Amotiv Limited
A powerful inflection point in GUD’s long history is reflected in name change to Amotiv Limited Why the name The Group is at an important inflection point having operated as a diversified industrial portfolio, we are now an Automotive pureplay Behind the name Amotiv ASX:AOV • Derived from a creative
Slide 39: Strong growth in Australia APG Top 20 muted by large decline in NZ
Strong growth in Australia APG Top 202 muted by large decline in NZ New Vehicle Sales in Key Segments and Markets: FY24 vs FY231 Australia + New Zealand = ANZ Combined Pick Up +13% +8% -27% 230k 261k 33k 264k 285k 24k FY23 FY24 FY23 FY24 FY23 FY24 SUV M+ +15% +11% -23% 407k 470k 58k 465k 514k 44k FY
Slide 40: SA vehicle models and market characteristics mirror Australia
SA vehicle models and market characteristics mirror Australia South Africa is a strong pick-up market… … with Hilux, Ranger and D-Max the top … and a car parc which mirrors ANZ 30% of new vehicle sales in SA are light commercial sellers… • SA shares common vehicle make and models with ANZ vehicles (
Slide 41: South Africa is a key automotive manufacturing hub for global markets
South Africa is a key automotive manufacturing hub for global markets South Africa is a key manufacturing hub for automotive OEMs … … consistently growing production to 600k vehicles3 in 2023 … Gauteng • BMW, Nissan and Ford manufacturing plants • ~200k light vehicle production p.a. South Africa Veh
Slide 42: Sweden creates a European Lighting beachhead
Sweden creates a European Lighting beachhead Rindab acquisition complements the Division’s lighting and power Established distributor of Vision X in Europe capabilities Revenue mix (% FY23 revenue) • Focus on lightbars with product range that extends to truck and bus camera and digital mirror system
Slide 43: CES adds capability in customised solutions for caravan OEMs
CES adds capability in customised solutions for caravan OEMs CES augments LPE’s distribution to caravan OEMs Caravan Power Management System • Competency in the design and supply of custom-made electrical and power management • Lithium battery storage systems to caravan OEMs • Solar Panel, AC Mains
Slide 44: ICE vs electric vehicles: A product perspective
ICE vs electric vehicles: A product perspective EVs have fewer moving parts than ICE vehicles Category (sample) Value ICEV EV Comments (ICEV), but the value per repair tends to be significantly higher Engine parts $ No longer required • Wear and tear parts of the future are high-voltage components a
Slide 45: EV potential addressable markets and existing Amotiv capability
EV potential addressable markets and existing Amotiv capability Amotiv businesses are ready to capture opportunities in the EV OEM and Aftermarket channels • The current opportunity in EVs is in battery lifecycle management services • Infinitev is the ‘one stop shop’ for all things battery for EV OE
Slide 46: Batteries are at the heart of EV, and of the future Aftermarket
Batteries are at the heart of EV, and of the future Aftermarket Backed by cutting-edge R&D, Infinitev are creating a circular economy for EV batteries When a retired battery comes out of a vehicle, Infinitev deliver a range of services • SafetyCheck: physical and electrochemical inspection of the ba
Slide 47: Appendix B
Appendix B Supplementary financial information
Slide 48: Significant items
Significant items1 4WD Accessories Lighting, Power & Powertrain & Total continuing Discontinued $M & Trailering Electrical Undercar Unallocated operations Operations Total Cash items Acquisition costs relating to Rindab AB, Caravan Electrical Solutions, Milford Industries - - - 0.7 0.7 - 0.7 Other a
Slide 49: Net working capital – Continuing and discontinued operations
Net working capital1 – Continuing and discontinued operations Movement $M FY24 FY24 H1 FY23 vs H1 vs FY23 Statutory NWC Inventories 224.7 207.2 243.2 17.5 (18.5) Payables (160.9) (138.4) (143.3) (22.5) (17.6) Receivables 195.0 176.7 184.2 18.3 10.8 Total Statutory NWC 258.8 245.5 284.1 13.3 (25.3) I
Slide 50: Cash conversion and balance sheet calculations
Cash conversion and balance sheet calculations Cash conversion – continuing and discontinued operations Balance sheet ratios $M FY24 FY23 Change $M FY24 FY23 Operating cashflow 171.4 206.1 (16.9%) Bank overdraft 1.0 2.8 Adjustments: Current Borrowings - 5.2 + Tax paid 36.3 39.2 (7.6%) Non-Current Bo
Slide 51: Banking covenant calculations
Banking covenant calculations1 Adjusted EBITDA = banking covenant EBITDA Net interest – lease adjusted $M FY24 FY23 $M FY24 FY23 EBIT post AASB 16 164.7 161.6 Reported Interest (rolling 12 months) 25.5 27.8 Add right-of-use asset depreciation 19.1 20.5 Interest on lease liabilities (5.5) (5.4) Less
Slide 52: Reconciliation to segment EBIT (note 7)
Reconciliation to segment EBIT1 (note 7) 4WD Accessories & Trailering - $M FY24 FY23 Change Lighting, Power & Electrical - $M FY24 FY23 Change Revenue 348.8 333.2 4.7% Revenue 324.5 286.3 13.3% Operating costs (271.5) (262.0) 3.6% Operating costs (245.5) (215.2) 14.1% Underlying EBITDA 77.3 71.1 8.7