Uni-Select — Shareholder Meeting (May 2017)
42 slides from Uni-Select's shareholder meeting presentation, May 4, 2017
Slide 1: 2017 Annual General Meeting of Shareholders
2017 ANNUAL GENERAL MEETING OF SHAREHOLDERS May 4, 2017 Uni-Select TSX: UNS
Slide 2: Welcome address from André Courville, Chair of the Board
WELCOME ADDRESS FROM ANDRÉ COURVILLE – CHAIR OF THE BOARD p2
Slide 3: Meeting conducted in English and French
The meeting will be conducted in both English and French. Simultaneous translation is offered throughout the presentation and headsets are available at the entrance. p3
Slide 4: Procedure of the meeting
PROCEDURE OF THE MEETING i] UNI-SELECT,
Slide 5: Forward-looking statements
FORWARD-LOOKING STATEMENTS Some statements may contain “forward-looking information”. These statements reflect the Corporation’s current expectations regarding future events. Actual results could differ materially from a conclusion, forecast or projection included in the forward- looking information
Slide 6: André Courville, Chair of the Board
ANDRÉ COURVILLE CHAIR OF THE BOARD p6
Slide 7: Appointment of the secretary
APPOINTMENT OF THE SECRETARY p7
Slide 8: Appointment of the scrutineers
APPOINTMENT OF THE SCRUTINEERS p8
Slide 9: Notice of meeting
NOTICE OF MEETING i] UNI-SELECT, 9
Slide 10: Quorum
i] UNI-SELECT, p10
Slide 11: Minutes of the previous meeting
MINUTES OF THE PREVIOUS MEETING p11
Slide 12: Annual report and consolidated financial statements
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS p12
Slide 13: Election of directors
ELECTION OF DIRECTORS i] UNI-SELECT, p13
Slide 14: Election of directors
ELECTION OF DIRECTORS Henry Buckley Michelle Cormier André Courville Patricia Curadeau-Grou Jeffrey I. Hall Richard L. Keister Robert Molenaar Richard G. Roy Dennis M. Welvaert p14
Slide 15: Appointment of auditors
APPOINTMENT OF AUDITORS i] UNI-SELECT, pis
Slide 16: Henry Buckley, President and CEO
HENRY BUCKLEY PRESIDENT AND CHIEF EXECUTIVE OFFICER p16
Slide 17: Uni-Select today
UNI-SELECT TODAY Uni-Select Corporate Office FinishMaster US Canadian Automotive Group US National Coverage Canadian National Coverage Automotive aftermarket parts Automotive and industrial paint & related products Automotive and industrial paint & related products 3,000+ Team Share a common goal: t
Slide 18: Highlights – 2016
HIGHLIGHTS – 2016 (in US dollars) $107.6M Adj. EBITDA(1) or 9.0% $1.2B Sales 3,000+ Team Members of sales 1,100+ Independent Customers 250+ Corporate Stores 14 Distribution Centres and Corporate Stores (Canada & United States) (Canadian Automotive Group) (1) This information represents a non-IFRS fi
Slide 19: FinishMaster US: #1 player in market
FINISHMASTER USA National Coverage Profitable Growth • Our footprint has expanded from 28 states to 33 states • 18 acquisitions / 73 new locations since January 2015 • Currently over 220 corporate stores • Opened two greenfield branches in Seattle and Portland • Approximately 32% market share • Open
Slide 20: FinishMaster US – Our strategy
FINISHMASTER USA – OUR STRATEGY • National – Growing our coverage • Extend our geographic coverage to support MSO growth and expand traditional business in new markets nationally • Build Density in core markets • Extend commitment to deliver exceptional customer service • Integration of our acquisit
Slide 21: Industrial growth initiative
INDUSTRIAL GROWTH INITIATIVE Target industrial market segments 17% Target ● General Industrial Market ● Powder estimated ● Maintenance $11B 12% market paint ● Protective Coatings Key vendor partners selected 62% US Industrial Coatings value of Market Paint Value 5% National coverage 4% $4.4 billion
Slide 22: Canadian Automotive Group
CANADIAN AUTOMOTIVE GROUP National Automotive Aftermarket Parts Distributor National Automotive Refinish Distributor (Paint/Body/Equipment) Independent Jobbers Corporate Stores Growth Mode • Over 1,100 locations • Over 50 locations nationwide • Since January 2015, we have acquired 16 • BUMPER TO BUM
Slide 23: Canadian Automotive Group – Automotive aftermarket parts
CANADIAN AUTOMOTIVE GROUP – AUTOMOTIVE AFTERMARKET PARTS Full marketing brand • High product loyalty • Standardized merchandizing and signage • Advertising/flyer programs • Online parts catalog • All corporate stores and independent customers Menu driven approach • Tool & equipment flyer • Dedicated
Slide 24: Canadian Automotive Group – Bumper to Bumper corporate stores
CANADIAN AUTOMOTIVE GROUP – BUMPER TO BUMPER CORPORATE STORES Launch of BUMPER TO BUMPER brand and programs across Canada for Corporate Stores and Independent customers in March 2016 – A national identity and synergy, consistent from coast to coast. WHY Integration - foundational work underway • Pro
Slide 25: Canadian Automotive Group – Automotive refinish
CANADIAN AUTOMOTIVE GROUP – AUTOMOTIVE REFINISH PAINT, BODY & EQUIPMENT Independent Jobber Customers Support PBE programs – Over 80 locations from coast to coast Corporate Stores • FINISHMASTER CANADA launched in September 2016 • Building a national network: currently 7 corporate stores in operation
Slide 26: Growth through acquisitions
GROWTH THROUGH ACQUISITIONS 34 2015 2016 2017 YTD businesses in both Canada and the 7 7 4 United States acquisitions acquisitions acquisitions 10 45 18 stores stores stores 117 new corporate stores 8 7 1 acquisitions acquisitions acquisition 26 16 2 Over 700 new Stores Stores stores team members 201
Slide 27: Investing in and growing our talent
PEOPLE → INVESTING IN AND GROWING OUR TALENT 4 LEVELS OF LEADERSHIP p27
Slide 28: Profitable growth – Road ahead 2017
PROFITABLE GROWTH – ROAD AHEAD 2017 Our commitment to grow: Organically and through Select Acquisitions • Refinish – Organic growth, excluding the product line changeover • Industrial – Organic growth as we roll out the industrial initiative • M&A – Select acquisitions to support growth in both mark
Slide 29: Eric Bussières, Chief Financial Officer
ERIC BUSSIÈRES CHIEF FINANCIAL OFFICER p29
Slide 30: 2016 year end
2016 YEAR END In million of US dollars, except percentages and per share amounts 2016 2015 (2) Variance Sales 1,197.3 1,355.4 (11.7)% Sales from net assets sold - (299.3) N/A Net sales excluding net assets sold 1,197.3 1,056.1 13.4% EBITDA (1) 106.8 (53.3) N/A Adjusted EBITDA (1) 107.6 96.6 11.4% Ad
Slide 31: 2016 year end – FinishMaster US
2016 YEAR END – FINISHMASTER US In million of US dollars, except percentages 2016 2015 Variance Sales 752.9 618.8 21.7% Organic growth (1) 1.1% 3.3% N/A EBITDA (1) 93.4 70.0 33.4% EBITDA margin (1) 12.4% 11.3% 1.1% Adjusted EBITDA (1) 93.4 70.4 32.6% Adjusted EBITDA margin (1) 12.4% 11.4% 1.0% (1) T
Slide 32: 2016 year end – Canadian Automotive Group
2016 YEAR END – CANADIAN AUTOMOTIVE GROUP In million of US dollars, except percentages 2016 2015 (2) Variance Sales 444.5 736.6 (39.7)% Sales from net assets sold - (299.3) N/A Net sales excluding net assets sold 444.5 437.3 1.6% Organic growth (1) (1.1)% 1.8% N/A EBITDA (1) 26.6 (103.9) N/A EBITDA
Slide 33: 2017 first quarter
2017 FIRST QUARTER In million of US dollars, except percentages and per share amounts 2017 2016 Variance Sales 297.2 264.0 12.6% EBITDA (1) 23.2 21.7 6.8% EBITDA margin (1) 7.8% 8.2% (0.4)% Net earnings 11.0 11.5 (4.2)% Net earnings per share 0.26 0.27 (3.7)% Free cash flows (1) 22.2 19.4 14.0% (1)
Slide 34: 2017 first quarter – by segment
2017 FIRST QUARTER – BY SEGMENT In million of US dollars, except percentages FinishMaster US 2017 2016 Variance Sales 199.7 173.4 15.2% Organic growth (1) (8.5)% 4.2% N/A EBITDA (1) 23.3 20.8 12.4% EBITDA margin (1) 11.7% 12.0% (0.3)% Canadian Automotive Group 2017 2016 Variance Sales 97.5 90.6 7.6%
Slide 35: Strong financial position
STRONG FINANCIAL POSITION ● At the end of Q1 2017, our strong financial position provides us flexibility to pursue our growth initiatives and seize opportunities: • Funded debt to EBITDA ratio at 1.82X; and • Over $200 million of available credit. ● Among growth initiatives Management is dedicated t
Slide 36: Commitment to share value creation
COMMITMENT TO SHARE VALUE CREATION ● We remain committed to returning capital to shareholders and creating value: • A total of C$62 million in dividends paid since 2012, 6.0% CAGR; • Return on equity at 12.9% as at December 31, 2016, 10.0% CAGR over the last five years; and • Board of Directors appr
Slide 37: André Courville, Chair of the Board
ANDRÉ COURVILLE CHAIR OF THE BOARD p37
Slide 38: Voting results
VOTING RESULTS i] UNI-SELECT, p38
Slide 39: Question period
QUESTION PERIOD i] UNI-SELECT, 39
Slide 40: Adjournment of the meeting
ADJOURNMENT OF THE MEETING p40
Slide 41: Thank you
THANK YOU TO ● Our Board of Directors ● Our Shareholders ● Our Suppliers ● Our Customers ● Our Talented Team Members THANK YOU! p41
Slide 42: Uni-Select
UNI-SELECT,