Slide 1: FY 2021 Results Presentation
Page 1 FY 2021 RESULTS PRESENTATION 24 AUGUST 2021 amagroupltd.com
Slide 2: World Class Automotive Solutions
Page 2 WORLD CLASS AUTOMOTIVE SOLUTIONS
Slide 3: Disclaimer
Page 3 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
Slide 4: Contents
Page 4 Contents. AMA Group Overview Page 5 AMA Group Financial Information for FY 2021 Page 10 Divisional Performance Page 17 Strategy and Outlook Page 21 Other information Page 35
Slide 5: AMA Group Overview
AMA GROUP OVERVIEW ) AMAGROUP
Slide 6: FY 2021 Results Summary
Page 6 FY 2021 Results Summary. • Total Group revenue and other income from continuing operations of $919.9 million (up 11% YoY) • Normalised pre-AASB 16 EBITDAI of $71.5 million (up 35% YoY) • Normalised EBITDAI margin from continuing operations of 7% (up 25% YoY) • Prudent approach to capital mana
Slide 7: FY 2021 Operational Highlights
Page 7 FY 2021 Operational Highlights. • Capital S.M.A.R.T integration – Transition to groupwide paint supply agreement with BASF complete – Transition to direct sourced consumables complete – $17 million of FRR annual synergies on track to be realised on a normal volume basis • Three acquisitions c
Slide 8: FY 2021 Key Metrics
Page 8 FY 2021 Key Metrics. Metric Capital S.M.A.R.T AMA Panel Heavy Motor APAS Safety – LTIFR1 2.15 5.76 6.41 17.152 Average Repair 3.63 9.3 12.5 n/a Days Repair Quality 2.5% 2.9% 0.2% n/a (rectification %) Customer 8.5 / 10 9.1 / 104 9.3 / 104 13 Satisfaction Customer survey Boost score Boost scor
Slide 9: FY 2021 Notes to Results
Page 9 FY 2021 Notes to Results. • Normalisations largely related to Capital S.M.A.R.T paint agreement termination fee • Recognised $90.6 million non-cash impairment of goodwill related to the Capital S.M.A.R.T acquisition - reflects risk and uncertainty associated with COVID-19 and related allowanc
Slide 10: AMA Group Financial Information For FY 2021
Page 10 AMA GROUP FINANCIAL INFORMATION FOR FY 2021
Slide 11: Summary Financial Performance (Pre-AASB 16)
Page 11 Summary Financial Performance (Pre-AASB 16). SUMMARY FINANCIAL PERFORMANCE FY 2021 FY 2020 CHANGE FOR THE YEAR ENDED 30 JUNE PRE-AASB 16 PRE-AASB 16 • Increase in revenue and AUD #039;000 AUD #039;000 AUD #039;000 % EBITDAI is largely due to the benefit of a full twelve Revenue and other income from
Slide 12: Statutory Financial Performance
Page 12 Statutory Financial Performance. FY 2021 STATUTORY RESULTS FY 2021 FY 2020 CHANGE FOR THE YEAR 30 JUNE STATUTORY STATUTORY • Results include full twelve AUD #039;000 AUD #039;000 AUD #039;000 % months trading for acquisitions such as Capital S.M.A.R.T and ACM Parts Revenue and other income from conti
Slide 13: Summary Financial Position
Page 13 Summary Financial Position. SUMMARY FINANCIAL POSITION FY 2021 FY 2020 CHANGE AS AT 30 JUNE STATUTORY STATUTORY AUD #039;000 AUD #039;000 AUD #039;000 % • Financial position is impacted by the divestment of ACAD and Fully Equipped which has Cash and cash equivalents 64,203 112,916 (48,713) (43.1%) im
Slide 14: AMA Delevered during FY 2021
Page 14 AMA Delevered during FY 2021. NET DEBT FY 2021 FY 2020 CHANGE AS AT 30 JUNE STATUTORY STATUTORY AUD #039;000 AUD #039;000 AUD #039;000 % Financial liabilities - drawn cash facilities 237,500 340,000 (102,500) (30.1%) Cash and cash equivalents (64,203) (112,916) 48,713 (43.1%) Net debt 173,297 227,084
Slide 15: Summary Cash Flows
Page 15 Summary Cash Flows. SUMMARY CASH FLOWS FY 2021 FY 2020 CHANGE FOR THE YEAR ENDED 30 JUNE STATUTORY STATUTORY AUD #039;000 AUD #039;000 AUD #039;000 % Receipts from customers (inclusive of GST) 1,042,324 996,432 45,892 4.6% • ACAD and Fully Equipped Payments to suppliers and employees (inclusive of GS
Slide 16: Effects of AASB 16 – Leasing Standard
Page 16 Effects of AASB 16 – Leasing Standard. SUMMARY FINANCIAL PERFORMANCE FY 2021 AASB 16 FY 2021 FOR THE YEAR ENDED 30 JUNE STATUTORY ADJUSTMENT PRE-AASB 16 AUD #039;000 AUD #039;000 AUD #039;000 • The Group adopted the new lease accounting standard AASB 16 Leases from 1 July 2019 Revenue and other incom
Slide 17: Divisional Performance
Page 17 DIVISIONAL PERFORMANCE
Slide 18: Vehicle Panel Repairs – Trading Performance
Page 18 Vehicle Panel Repairs – Trading Performance. SUMMARY FINANCIAL PERFORMANCE FY 2021 FY 2020 CHANGE FOR THE YEAR ENDED 30 JUNE AUD #039;000 AUD #039;000 AUD #039;000 % Revenue and other income from continuing operations 855,320 788,527 66,793 8.5% EBITDAI 110,328 95,772 14,556 15.2% AASB 16 Leases impa
Slide 19: Vehicle Panel Repairs – National Footprint
Page 19 Vehicle Panel Repairs – National Footprint. VEHICLE PANEL REPAIR SITE LOCATION FY JUN-21 FY JUN-20 Victoria 63 65 Queensland 34 34 Western Australia 14 14 New South Wales 38 38 Australian Capital Territory 9 9 South Australia 5 6 VEHICLE PANEL REPAIR SITE COUNT FY JUN-21 FY JUN-20 Tasmania 9
Slide 20: APAS – Trading Performance
Page 20 APAS (Automotive Parts and Services) – Trading Performance. SUMMARY FINANCIAL PERFORMANCE FY 2021 FY 2020 CHANGE FOR THE YEAR ENDED 30 JUNE AUD #039;000 AUD #039;000 AUD #039;000 % Revenue and other income from continuing operations 64,422 36,725 27,697 75.4% EBITDAI 5,354 (2,076) 7,430 (357.9%) AASB
Slide 21: Strategy and Outlook
STRATEGY AND OUTLOOK ) AMAGROUP
Slide 22: AMA Group’s Three Dimensions of Value
Page 22 AMA Group’s Three Dimensions of Value. Procurement Production Partnerships • Secure the quality • Leverage the • Build commercial products needed to technical skills and relationships with execute operations industry expertise customers for the on industry leading in the business long-term,
Slide 23: New Structure to Unlock the Value in One AMA
Page 23 New Structure to Unlock the Value in One AMA. AMA Group Procurement Production Partnerships Supply Drive Non-Drive Heavy Motor Corporate • Parts • Rapid repairs on • Higher severity, • Truck and bus • One AMA • Paint cars that are still more complex repairs approach to the • Consumables driv
Slide 24: Opportunities to Unlock Value in Procurement
Page 24 Opportunities to Unlock Value in Procurement. Procurement • Margin expansion through sourcing – Parts sourcing remains largely intermediated Supply – Currently direct sourcing consumables and paint – Current approximate annual AMA Group spend (at FRR) • $20m consumables • $50m on paint • $35
Slide 25: Opportunities to Unlock Value in Production
Page 25 Opportunities to Unlock Value in Production. Production • Organic growth – Selling AMA Group’s unique value proposition as a one stop Drive shop for everything from low severity to heavy hit repairs across private and commercial vehicles Non-Drive – Embracing opportunities in a rapidly chang
Slide 26: Opportunities to Unlock Value in Partnerships
Page 26 Opportunities to Unlock Value in Partnerships. Partnerships • Delivering value through trusted relationships – Delivering the breadth of the AMA Group Key relationships proposition to insurers in one economic consideration – Provide a best in class, high volume capability - delivering insura
Slide 27: Enhanced Governance
Page 27 Enhanced Governance. Anthony Day Simon Moore Nicole Cook Chairman Non-Executive Director Non-Executive Director Carl Bizon Paul Ruiz Kyle Loades CEO and Executive Director Non-Executive Director Non-Executive Director • Enhanced governance reflects AMA Group’s position as an ASX300 publicly
Slide 28: Strengthened Leadership
Page 28 Strengthened Leadership. Carl Bizon – CEO & Executive Director Mathew Cooper Darren Basford Andrew Mair Janelle Leonard Alexandra Holston Group Chief Interim Group Chief Group Chief Group Chief Director Investor Relations Operating Officer Financial Officer Commercial Officer People Officer
Slide 29: One AMA Exceptional People
Page 29 Exceptional People. One AMA AMA Group Drive Non-Drive Heavy Motor Supply • People – Define and consolidate the culture – Invest, develop and retain key industry skills – Apprenticeships – build the workforce of the future – Use scale and culture to attract and retain talent in an industry wi
Slide 30: Operational Priorities
Page 30 Operational Priorities. • Development of mutually beneficial customer contracting arrangements, reflecting the post COVID-19 market environment • Realisation of the benefits of the new business structure by identifying and further enhancing best practice operations • Continued growth of the
Slide 31: Outlook – Headwinds
Page 31 Outlook – Headwinds. • Headwinds are situational, not structural • COVID-19 impacts expected to continue throughout 1H22 – Ongoing outbreaks, snap lockdowns and border closures – Lower kilometres driven reflected in reduced repair volumes – Lower repair volumes affect site productivity and f
Slide 32: Outlook – Response to COVID-19
Page 32 Outlook – Response to COVID-19. • Active management of sites experiencing reduced repair volumes due to COVID-19 restrictions • 13 Drive sites and 3 Non-Drive sites in NSW either hibernated or under partial stand down, with 190 staff temporarily hibernated across the group in mid-August – Dy
Slide 33: Outlook – Tailwinds
Page 33 Outlook – Tailwinds. • Vaccine rollout to hasten return to normal • In 2020, hopes were pinned on the development of a vaccine which is now a reality • Overseas experience shows that high vaccine rates substantially increase mobility • Domestic driving holidays expected to increase kilometre
Slide 34: Outlook – Capital Structure
Page 34 Outlook – Capital Structure. • Proactively managed the capital structure during FY 2021 to reduce leverage and focus on operating performance – Management has continued to undertake tactical cost and cash management initiatives • Currently undertaking a capital structure review in order to m
Slide 35: Other Information
OTHER INFORMATION ) AMAGROUP
Slide 36: Normalisations
Page 36 Normalisations. NORMALISATIONS FY 2021 FY 2020 CHANGE AUD #039;000 AUD #039;000 AUD #039;000 % • Normalisations for the period were $10.2 million Supplier termination fee 9,437 - 9,437 100.0% which largely represents the Capital S.M.A.R.T paint Whistleblower investigation costs 737 - 737 100.0% suppl
Slide 37: Acquisitions and Divestments
Page 37 Acquisitions and Divestments. ACQUISITIONS # SITES DATE Vehicle Panel Repairs Western Trucks 1 25-Sep-20 National Trucks 2 05-Feb-21 Automotive Parts and Accessories Perth Parts Solutions N/A 30-Oct-20 DIVESTMENTS # SITES DATE Automotive Parts and Accessories ACAD Limited N/A 31-Dec-20 AECAA