Rpm Automotive Group Ltd. · ASX:RPM
Rpm Automotive — Investor Presentation (March 2021)
17 slides from Rpm Automotive's investor presentation, Mar 15, 2021
Slide 1: RPM Automotive Group Ltd Investor Presentation March 2021
For personal use only RPM AUTOMOTIVE GROUP LTD (ASX: RPM) INVESTOR PRESENTATION March 2021
Slide 2: Why Invest in RPM Automotive Group?
Why Invest in RPM Automotive Group? For personal use only • Experienced Board & Management Team • Leading market positions in attractive auto sectors • Well known & respected brands • Diversified across four profitable & growing divisions • Scalable through carefully planned synergistic acquisitions
Slide 3: A Leading Australian Automotive Group
A Leading Australian Automotive Group For personal use only RPM is a vertically integrated group of businesses operating in the Australian Automotive Aftermarket. The parts and maintenance sector of the $108 billion Australian automotive industry represents about $34 billion. RPM’s business consists
Slide 4: Business Corporate Structure
Business Corporate Structure For personal use only RPM Automotive Group Ltd RPM Properties (IP) RPM Automotive Holdings Pty Ltd Repairs & Wheels & Performance & Motorsport Tyres Accessories Roadside Gully Mobile Tyres Air Anywhere – Spider GT Revolution Racegear Pty Narre Warren Formula Off-Road Pty
Slide 5: RPM's Nationwide Footprint
RPM’s Nationwide Footprint For personal use only RPM Automotive Group Head Office is located in Melbourne, Victoria Revolution Racegear has wholesale distribution warehousing, Darwin 5 Corporate Retail Stores and 13 Franchised Stores Nationally There are over 100 Carline Automotive Licensee Stores a
Slide 6: Highly Experienced Board of Directors
Highly Experienced Board of Directors For personal use only Clive Finkelstein - Managing Director Lawrence Jaffe - Executive Director Clive is a co-founder and promoter of the RPM Group. Clive has over Lawrence is a co-founder and promoter of the RPM Group. Lawrence 20 years’ experience in the automo
Slide 7: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure1 Share Price Performance ($/share)1 Shares on Issue 119.5m Options 30.5m Share Price (11/03/21) $0.28 Market Capitalisation $33.5m 52-week High $0.380 52- week Low $0.105 Founders Interests Register Wei Liu Lawrence Jaffe (Executive Director
Slide 8: RPM has been a beneficiary of Covid-19 tailwinds
RPM has been a beneficiary of Covid-19 tailwinds For personal use only • Closed state (for much of 2020) and international (currently) borders has led to an increase in domestic driving holidays, 4WDing and off-roading activities. • The increased vehicle usage has resulted in high demand, and sales
Slide 9: RPM Financial Performance & Investment Highlights
RPM Financial Performance & Investment Highlights For personal use only • FY2021 full-year revenue forecast to increase by 44% to $49.2M (FY2020: $34.1M) Annualised forecast based on current position is $55.3M • FY2021 full-year EBITDA forecast to increase by 37.6% to $4.7M (FY2020: $3.4M) • RPM cur
Slide 10: Investment Highlights
Investment Highlights For personal use only Diversified businesses Favourable Industry fundamentals The RPM Group has diversified revenue across various market The Australian automotive aftermarket is large and growing with a sectors, distribution channels, products and services within the total addre
Slide 11: Investment Summary
Investment Summary For personal use only Highly experienced management & Board • Founders Clive Finkelstein and Lawrence Jaffe have deep industry expertise with over 20 years experience building, acquiring and selling automotive businesses • Sold Opposite Lock to Metcash in 2015 Diversified and scal
Slide 12: Strategic Objectives
3 Year Strategic Objectives For personal use only Focus is on growing the Wheels & Tyres, Repairs & Roadside and the Performance & Accessories Divisions. Growth both organic & acquisitional The below table is a broad 3-year plan sub-divided into the 4 Pillars of RPM Geographical RPM Division Details
Slide 13: Strategic Acquisition Growth Strategy
Strategic Acquisition Growth Strategy For personal use only o RPM’s acquisition strategy is to identify same or similar businesses to unlock synergies o Preferred model is to pay approximately ~50% scrip and ~50% cash (paid out over a period of time) o Aim to purchase businesses on an attractive val
Slide 14: Strategic Rationale
Strategic Rationale For personal use only These Potential Acquisitions align with RPM’s stated strategy and would deliver significant benefits to shareholders 1 Strategic fit with RPM’s “four pillars” operating model and growth strategy, directly aligning with existing commercial and heavy duty tyre
Slide 15: Comparables
Comparables For personal use only FY20 Actuals FY21 Estimates ASX Company Enterprise Value Revenue EBITDA Revenue EBITDA EV/EBITDA FY21 Code ($m) ($m) ($m) ($m) ($m) RPM Automotive Group Ltd RPM $32 $32.47 $0.53 $49.25 $4.68 6.83x ARB Corporation Limited ARB $2,825 $465.38 $91.96 $525.05 $122.94 22.
Slide 16: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER For personal use only Overview This document is issued by RPM Automotive Group Limited ACN RPM (“RPM Automotive” or “RPM”) on 15 March 2021. Summary Information This document contains summary information about RPM Automotive and its associated and proposed associated
Slide 17: Contact
For personal use only CONTACT Grant Carman Clive Finkelstein Non-Executive Chairman – CEO and Managing Director – RPM Automotive Group Limited RPM Automotive Group Limited 0419 506 593 0403 500 654 grantc@racegear.com.au clive@racegear.com.au www.rpmroup.net.au 17
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