Thorney Opportunities : Investment Forum - AMA presentation

THORNEY OPPORTUNITIES LTD

ACN 080 167 264

ASX Announcement: 20 November 2019

ASX Code: TOP

THORNEY INVESTMENT FORUM - COMPANY PRESENTATIONS

Please find attached a company presentation from AMA Group Limited [ASX:AMA] being presented at today's Thorney Investment Forum in Melbourne.

Forum details:
Date	Wednesday 20 November 2019
Location:	Ernst & Young
Address:	Level 23, 8 Exhibition Street, Melbourne
Time:	9.30am for 9.45am, concluding by 1.00pm

A video recording of the presentations will also be uploaded to the respective websites a few days after the forum concludes.

Please direct enquiries to:

Craig Smith

Company Secretary

Email:[e-mail]

Telephone: + 61 3 9921 7116

Website:http://thorneyopportunities.com.au/

Level 39, 55 Collins Street, Melbourne Vic 3000

Telephone + 61 3 9921 7116 Facsimile + 61 3 9921 7100

WORLD CLASS AUTOMOTIVE SOLUTIONS

Page 2

About Us.

Industry leader in key automotive industry sectors:

Vehicle Panel Repairs - National footprint of c. 130 panel sites offering a unique service proposition to key insurance customers and their policy holders.

Automotive Components and Accessories - Business focussed on key growing market niches with unique products and long standing distribution partners.

Procurement and Distribution - Expansion into procurement and distribution of cost effective consumables for the motor vehicle panel industry.

Acquired 31 October 2019:

Capital S.M.A.R.T. - specialising in low to medium severity repairs in metropolitan areas in Australia and New Zealand.

ACM - national automotive parts supplier selling original, recycled and independently certified parts to the motor repair industry and to the general public.

Page 3

Our Journey.

2006: The Start of the Journey

2018: Blackstone Deal

Blackstone Group seeks to acquire Panel Division for $508 million, however, the ATO refused AMA's request for a Ruling for Demerger Relief of ACAD. The transaction did not proceed.

2018: Colinton

Investment

Colinton Capital Partners (together with MFI / AusSuper) acquire c.13.5% of shares outstanding, Simon Moore joins Board as Deputy Chairman

AMA Group under the previous name Allomak Limited first listed on the Australian Securities Exchange.

2009: Gemini Commences in Australia

2019: Corporate Strategy

Post Gemini's earn out, significant changes were made to both the Board of Directors and Management Team. With a new Support Centre and increased focus on corporate governance, the corporate strategy will ensure AMA Group realises the significant market opportunities before it.

Gemini commenced operations in Australia, leveraging off their learnings in the UK.

2010: Key Management Changes

Allomak Limited was renamed to AMA Group and underwent changes to key management personnel, including the Board of Directors.

2015: AMA Group and Gemini Merger

AMA Group acquires Gemini Accident Repair Centres (under a 3 year earn out), becoming the largest national repair group. This strengthens AMA Group's position to consolidate Australia's highly fragmented panel repair market.

2020: Working

Towards $1bn

Revenue

Focusing on key strategies and goals around acquisitions, people, processes, systems and brand.

2014: Award Winning

Gemini wins the Mayor's Innovation GC Award for using latest technologies, environmentally friendly products and centralising the Support Centre.

2021: $1bn Revenue and ASX200

On-track to achieve AMA Group's goal of becoming an ASX200 company and reach $1 billion revenue by FY2021.

Page 4

FY2019 Highlights.

REVENUE
$616m	NORMALISED
YOY GROWTH
EBITDA $58.2m
20.9%	NET PROFIT AFTER
YOY GROWTH
	11.6%	TAX $21.7m	BASIC EPS
		YOY GROWTH
		43.7%	4.00c
			YOY GROWTH
			1.12c | 38.9%

ACQUISITIONS

• SUCCESSFUL

LY

COMPLETED

21

ACQUISITIONS , INCLUDING 6 BUSINESS ACQUISITIONS IN THE HEAVY VEHICLE REPAIR INDUSTRY AND OPENED 4 GREENFIELDS

PEOPLE

• NEW BOARD APPOINTMEN TS, GROUP CFO AND PANEL CEO, REFLECTIVE OF THE ASX200
  COMPANY WE
  WANT TO BECOME OVER THE NEXT FEW YEARS

PROCESSES

• LAUNCHED
  CENTRALISED
  ESTIMATING SERVICE AND COMPLETED THE ROLLOUT OF NEW ERP
  SYSTEM
  (NETSUITE)

BRAND

• WORLD

CLASS

AUTOMOTIVE

SOLUTIONS BRAND WITH INCREASED AWARENESS AND PENETRATION IN KEY PRODUCTS BRANDS

CONNECTION

•

CENTRALISIN

G

CORPORATE FUNCTIONS WITH NEW HEAD OFFICE AND IMPLEMENTIN G NEW PLATFORMS COMPANY WIDE

Page 5

History to Sustainable Earnings Growth.

AUD $'000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0

	Reported Revenue						Reported EBITDA
						60,000
						50,000
					$'000	40,000
					30,000
					AUD
					20,000
						10,000
						0
FY15	FY16	FY17	FY18	FY19		FY15	FY16	FY17	FY18	FY19
		Financial Year							Financial Year

AUD cents

Basic Earnings per Share

Share Price

4.50					1.60		43644 1.43
4.00					1.40
3.50					1.20
3.00
			cents	1.00
2.50
			0.80
2.00				AUD
			0.60
1.50
				0.40
1.00
0.50					0.20
-					-
FY15	FY16	FY17	FY18	FY19	31/12/2018	28/02/2019	30/04/2019	30/06/2019
		Financial Year					Date

Page 6

Significant acquisition - S.M.A.R.T and ACM Parts.

In line with our strategy, our continued focus on pursuing sizeable acquisitions culminated in the successful completion of the acquisition of 90% of Capital S.M.A.R.T and 100% of ACM Parts Pty Ltd on 31 October 2019.

The acquisition included a 25-year strategic service agreement under which Capital S.M.A.R.T remains Suncorp's recommended repairer.

A significant strategic milestone

Strong support from our shareholder base received.

Funded by a combination of equity raising, debt and working capital.

Page 7

What S.M.A.R.T brings to AMA Group.

Second largest smash repair business in Australia

• Specialist in low (S.M.A.R.T) to medium (S.M.A.R.T Plus) severity repairs in metropolitan areas in Australia and New Zealand
• S.M.A.R.T's unique business model integrates with insurer's system reducing administrative processes, reducing administrative costs for insurers and improved turnaround time and customer experience
• Long term partnership with Suncorp, the second largest motor insurer in Australia and New Zealand, providing repair volumes governed by the Motor Repair Services Agreement ("MRSA")
• 50 sites across Australia and New Zealand - primarily in metropolitan areas
• In FY19, S.M.A.R.T serviced over ~179,000 vehicles in Australia and New Zealand
• Strong executive management team and high calibre repair professionals
• Approximately 1,300 employees
• Established reputation in industry

Source: (1) Management, Financial VDD report

Page 8

Significant improvements made to corporate governance structure in the last 12 months.

Andy Hopkins appointed Group CEO

New CFO Recruited (Steven Becker - Ex-Mantra Group)

Transition of Chairmanship from Ray Malone to Anthony Day (senior insurance industry exec)

Auditor transition to KPMG

Corporate and division Headquarters co-located at new premises

Improved investor communication

Structured institutional investor engagement (resulting increased institutional shareholding in

company and liquidity)

Page 9

Strategy and Outlook.

AMA HAS MULTIPLE OPPORTUNITIES TO CONTINUE ITS GROWTH BOTH ORGANIC ALLY AND

VIA ACQUISITION - THE ACQUISITION OF CAPITAL S.M.A.R.T AND ACM ENHANCES ITS CAPABILITY AND CREATES A PLATFORM TO PURSUE AND CAPITALISE ON FU

Continue toRTHERlead theGROWTHPanel IndustryOPPORTUNITIESconsolidation in Australia with ongoing acquisitions in this space - the pace of acquisitions in this space slowed in the 1st half of FY20 due to management's focus on securing and completing the Capital S.M.A.R.T and ACM - this activity is expected to regain momentum in 2nd half FY20

Execute further "Greenfield" opportunities in Vehicle Panel Repair division working with our existing business partners

In line with strategy, continue to pursue opportunities of size that are aligned to our business - unlocking and increasing shareholder value

Exploring innovative opportunities for future sustainability

Ongoing brand and product awareness

Changes to Management and Board during the year places the business in a sound position to deliver on its strategic goals and to achieve $1bn revenue by FY21.

Page 10

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 read in conjunction with AMA Group's other periodic and continuous disclosure announcements filed with the Australian Securities Exchange, which are available at www.asx.com.au.

This presentation is for information purposes only and is not a prospectus or product disclosure statement, financial product or

investment advice or a recommendation to acquire AMA Group's shares or other securities. It has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. AMA Group is not licensed to provide financial product advice in respect of AMA Group shares or other securities. Past performance is no guarantee of future performance.

No representation or warranty, expressed or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of AMA Group and its related bodies corporate, or their respective directors, employees or agents, nor any other person accepts liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including, without limitation, any liability from fault or negligence on the part of AMA Group, its related bodies corporate, or any of their respective directors, employees or agents.

This presentation may contain forward-looking statements including statements regarding our intent, belief or current expectations with respect to AMA Group's business and operations, market conditions, results of operations and financial condition, specific provisions and risk management practices. When used in this presentation, the words 'likely', 'estimate', 'project', 'intend', 'forecast', 'anticipate', 'believe', 'expect', 'may', 'aim', 'should', 'potential' and similar expressions, as they relate to AMA Group and its management, are intended to identify forward-looking statements. Forward looking statements involve known and unknown risks, uncertainties and assumptions and other important factors that could cause the actual results, performances or achievements of AMA Group to be materially different from future results, performances or achievements expressed or implied by such statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof.