Amotiv Limited · ASX:AOV
Amotiv — GUD Holdings — H1 FY23 Earnings Presentation
40 slides from Amotiv's earnings presentation, Feb 15, 2023
Slide 1: H1 FY23 Financial Result
GUD Holdings Limited ABN 99 004 400 891 H1 FY23 Financial Result Graeme Whickman, CEO & MD Martin Fraser, CFO 15 February 2023 1
Slide 2: Contents
Contents Key messages and financial overview 3 Westpac Business of the Year 2022 Graeme Whickman Employer of the Year The Westpac Auckland Central Business Awards recognises a number Automotive 5 of categories to encompass the accomplishments of businesses. Graeme Whickman Of the 1191 entries receiv
Slide 3: Key messages
Key messages Result demonstrates the resilience of the aftermarket, our brands, and the strength of the non-discretionary products and services within 1 the Automotive (ex APG) businesses APG performed in line with expectations delivering a slight improvement in revenue and underlying EBITA 1 in Q1
Slide 4: Group financial overview
Group financial overview Strength of the ‘Core’1 Automotive businesses, combined with acquisitions, delivered a stronger $M H1 FY23 H1 FY22 % Change result relative to the pcp Revenue 517.0 332.0 55.7% • Underlying EBITA2 increased 52.4% driven by a strong ‘Core’1 Automotive result combined with ful
Slide 5: Automotive
Segment Automotive 5
Slide 6: Automotive (ex APG)
Automotive (ex APG) Strong result demonstrating the resilience of the service and repair market coupled $M H1 FY23 H1 FY22 % Change with the brand strength of the portfolio of largely non-discretionary products • Automotive revenue growth of 17.8%, including c. 10% from the ‘Core’1 businesses, refle
Slide 7: Size and age of the car parc are highly favourable to GUD's aftermarket businesses
Size and age of the car parc are highly favourable to GUD’s aftermarket businesses Car parc continues steady growth Car parc in Australia1,2 in million units • 19.4 million vehicles1 registered in Australia in CY22, an increase of 1.5% vs CY21 Total parc Parc 5+ years • Future parc growth is project
Slide 8: Predominantly non-discretionary product revenue tapping into highly proliferated car parc
Predominantly non-discretionary product revenue tapping into highly proliferated car parc Resilient, largely non-discretionary, revenue Automotive (ex APG) revenue profile (FY22)1 Car parc segmentation2,3,4 • Circa 80% of GUD’s Automotive revenue is PU SUV PMV Other estimated to be non-discretionary
Slide 9: Vision X Snapshot - Integration and BWI synergies on track
Vision X Snapshot - Integration and BWI synergies on track Vision X - solid result driven by robust US sales and stable margins Vision X Asia – Manufacturing • Achieved solid sales growth in challenging US economic environment • From Q2 onwards, Vision X China directly servicing BWI’s China RV custo
Slide 10: APG
Segment APG @UD
Slide 11: APG Performance
APG Performance Result in line with expectations reflecting expected improvement in Ranger supply $M H1 FY23 H2 FY22 Change • Underlying EBITA1 (pre group overhead allocation) of $26.6m, reflecting the expected slight improvement in Q1 FY23 (vs. Q4 FY22) and in Q2 FY23 (vs. Q1 FY23) Revenue 137.8 13
Slide 12: Inventory levels very low and order wait times built further in Q4
Inventory levels very low and order wait times built further in Q4 Top 3 PU/SUV average days' wait1 Industry commentary Model 1 Model 2 Model 3 Sharp up swing in Toyota wait times expected to fall as it Toyota predicts another new car sales 250 wait times from aims for record production in 2023 surg
Slide 13: New vehicle sales up modestly in CY22, still below historical levels due to supply chain impacts
New vehicle sales up modestly in CY22, still below historical levels due to supply chain impacts New vehicle sales still below historical Total new vehicle sales – still below historical levels CY22 vs CY211,2 levels in million units in units • 1.08M units in CY22, +3% vs prior year New vehicle sale
Slide 14: APG's top 20 were down on prior half but momentum improved slightly in Q2
APG’s top 20 were down on prior half but momentum improved slightly in Q2 H1 FY23 vs. H2 FY22 APG top 20 units down c.9% H1 FY23 vs. H2 FY22, while the industry units were up Total vehicle units up slightly HoH…1 …within that, Pick Up units were flat …but APG Top 20 were down c. 9%1,2 • Market up +1
Slide 15: APG snapshot
APG snapshot Building on leadership position in 4WD Accessories and Towing Since acquisition, APG have secured 86 new business wins representing c.$20m+ in revenue, of which APG’s H1 benefited from a higher share of wallet due to growth in c.$16m is incremental Functional Accessories – this trend is
Slide 16: APG snapshot
APG snapshot Trailering continues to grow market share as APG’s supply outperformance is extended by Asia footprint Cruisemaster achieved a record result in H1, in line with expectations Production of trailer suspension product out of APG’s Thailand facility commenced in Q2, increasing Cruisemaster
Slide 17: GUD's portfolio covers front to back, inside and out
GUD’s portfolio covers front to back, inside and out A selection of GUD brands Lighting Cargo Management Towing Trailering Driving Lights Fibreglass Canopies 4WD Spare Wheel Holders Towbars Coupling Systems Light Bars Aluminium Service Bodies Jerry Can Holders Fifth wheel hitches
Slide 18: Water
Segment Water 18
Slide 19: Water Performance
Water Performance ANZ revenue continues to grow solidly but overall revenue was impacted by an acute downturn in export sales $M H1 FY23 H1 FY22 % Change • Australia’s solid revenue growth was evident across many categories despite fire fighters not experiencing seasonal uplift in demand Revenue 58.
Slide 20: Financials
Financials @UD
Slide 21: Financial summary
Financial summary H1 FY23 H1 FY22 % Change $M Revenue 517.0 332.0 55.7% Includes six months of APG and an additional 5 months of Vision X compared to the PCP Operating cost 410.9 262.7 151.4% Includes contributions from Vision X of $7.9m and APG of $31.8m pre corporate overhead Underlying EBITDA 106
Slide 22: Significant items (pre-tax) – H1 FY23
Significant items (pre-tax) – H1 FY23 $M Automotive APG Unallocated Total Uneek restructuring costs 0.6 0.6 Acquisition costs 0.3 0.1 0.4 Other transaction costs 0.1 0.1 Total 0.9 0.1 0.1 1.1 • Significant items largely driven by Uneek restructuring and some acquisition costs mostly relating to mino
Slide 23: Net working capital (NWC)
Net working capital (NWC) NWC increase largely driven by elongated supply chains, as $M H2 FY21 H1 FY22 H2 FY22 H1 FY23 well as the impact of supplier price rises on replacement inventory values Period End Balances Statutory NWC • Impact of higher supplier prices and a weaker currency on replacement
Slide 24: Cash conversion
Cash conversion Cash conversion improved on PCP $M H1 FY23 H1 FY22 • Cash conversion supported by the short cash cycle times of APG, which was not Operating cashflow 60.0 25.7 captured in the pcp +Tax paid 22.3 18.1 • Result also reflects the elevated NWC − Payments for lease liability -11.6 -6.6 Ad
Slide 25: Balance sheet and capital management
Balance sheet and capital management Deleveraging remains short term priority $M H1 FY23 H1 FY22 • Net Debt1/Underlying EBITDA2 of 2.5x, in line with expectations Bank overdraft 10.0 - • Deleveraging remains a priority; targeting Net Debt/Underlying EBITDA of circa 2x by Current Financial Borrowings
Slide 26: Debt profile
Debt profile Favourable mix of fixed and floating rates Maturity profile of utilised debt facilities (Financial Year) in $m • 66% of gross debt balances fixed or hedged against expected NAB Citi Westpac Pricoa rises in the floating interest rates − Fixed Interest rate on long-term Pricoa issued note
Slide 27: Outlook
Outlook 27
Slide 28: Trading update: January & February 2023
Trading update: January & February 2023 APG • January sales were strong relative to the pcp and February has started positively, in line with expectations • While Q3 OEM purchase orders are still constrained due to component supply constraints, orders are in line with plan • Q1 and Q2 trends have co
Slide 29: Outlook
Outlook APG – positive outlook as sales normalise towards higher historic volumes New vehicle sales (CY)3,4,5,6 • GUD remains confident in APG’s ability to deliver its business case targets as OEM in millions Opportunity to recoup supply normalises FCAI (actual) AAI ACA Trend unmet demand over time,
Slide 30: Q&A
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Slide 31: Appendix
Appendix 31
Slide 32: Automotive H1 FY23 snapshot (1 of 3)
Automotive H1 FY23 snapshot (1 of 3) Powertrain Powertrain Ryco Filters AA Gaskets • Strong revenue growth over pcp driven by customer order cycles and • Strong Trans-Tasman growth over PCP market share gains • Operational fitness and post Covid recovery focus driving improvements in • Growth achiev
Slide 33: Automotive H1 FY23 snapshot (2 of 3)
Automotive H1 23 snapshot (2 of 3) 4WD Accessories and Trailering (ex APG) Undercar East Coast Bullbars Disc Brakes Australia • Underlying demand remains strong. • Strong revenue growth in FY23 with domestic growth driven by • Revenue potential not fully achieved due to the tight labour availability
Slide 34: Automotive H1 FY23 snapshot (3 of 3)
Automotive H1 FY23 snapshot (3 of 3) Auto Electrical, Lighting & Power Management Griffiths Equipment (NZ) BWI • Revenue relatively flat • Record six months performance of revenue and profitability • Griffiths Equipment catalogue launched • Growth driven by increased growth in caravan, truck sectors
Slide 35: APG top 20 models (by industry sales) remain mixed but supported by positive mix
APG top 20 models (by industry sales) remain mixed but supported by positive mix Industry Industryunit unit sales sales CY22 1 vs CY211 Industry CY22 vsvariance CY21 CY22 vs CY211 Industry H1F23 vsvariance H2F22 H1 FY23 vs H2 FY221 Industry Q2F23 vsvariance Q1F23 Q2 FY23 vs Q1 FY231 …of APG’s Top 20
Slide 36: Portfolio Vision set in FY21
Portfolio Vision set in FY21 36
Slide 37: We continue to drive progress in support of our ESG goals
We continue to drive progress in support of our ESG goals ESG Impact Areas and Targets Progress in ESG Impact Areas Done Inaugural GUD Sustainability Excellence awarded for the leading sustainability initiative 2022 Sustainability Review restructured to report on the progress and ‘performance agains
Slide 38: Reconciliation to Segment items (pre-tax)
Reconciliation to Segment items (pre-tax) Automotive Segment (ex APG) $M H1 FY23 H1 FY22 % Change APG Segment $M H1 FY23 Automotive revenue 320.6 272.1 17.8% Revenue 137.8 Core1 Automotive revenue 226.0 205.8 9.8% Operating costs (107.5) Acquired2 revenue (excluding APG) 94.6 66.3 42.7% Underlying E
Slide 39: Debt profile and available facilities
Debt profile and available facilities Funding profile remains largely unchanged AUD $M 30-Jun-22 Changes to facility 31-Dec-22 • Small facility added in USA Available Facilities Westpac 1 169.9 - 169.9 NAB 150.0 - 150.0 • Debt drawn in FY22 in preparation of paying Vision X deferred vendor payment e
Slide 40: Disclaimer
Disclaimer 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 31 December 2022. The information in the Presentation is o