AMA GROUP LIMITED — AGM Information 2016

Nov 24, 2016

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2016 Annual General Meeting Presentation 25 November 2016

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Group Overview

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Australian leader focused on the automotive aftercare and accessories market

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Vehicle Protection Automotive Electrical & Cable Automotive Component
Vehicle Panel Repair
Products & Accessories Accessories Remanufacturing
Brands
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• Strong Balance Sheet, highly cash generative

• Culture of employee ownership

— Experienced management with proven track record of targeted acquisitions and successful integration

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2016 Annual General Meeting Presentation

25 November 2016

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June 2016 Full Year - Normalised Results

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2016 full year results exceed previous guidance ($28m to $29m) underpinned by strong operating performance

		Current	Prior2	Change
	EBITDA - continuing operations : Reported ($’000)	24,672	14,194	73.8%
	EBITDA - continuing operations : Normalised1 ($’000)	31,921	14,194	124.9%
	NPBT - continuing operations : Reported ($’000)	13,492	12,444	8.4%
	NPBT - continuing operations : Normalised 1 ($’000)	23,695	12,444	90.4%
	Basic EPS - continuing operations : Reported (cents)	1.58	2.68	(41.0%)
	Basic EPS - continuing operations : Normalised1 (cents)	3.56	2.68	32.8%
	Gearing ratio	1.73%	7.60%	(5.87%)
	Net Operating Cash Flows ($’000)	36,761	7,820	370.1%

Notes:

1. Normalised excludes the effect of various abnormal items (refer Appendix A)

2. Prior comparative period – excludes the results of Perth Brake Parts which was sold on 1 February 2016)

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2016 Annual General Meeting Presentation

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Strong Financial Position

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30 Jun 2016 30 Jun 2015	30 Jun 2016 30 Jun 2015	30 Jun 2016 30 Jun 2015
	$'000	$'000
Debt
Borrowings	909	8,341
Deferred Vendor Consideration	28,954	10,254
Cash & cash equivalents	(22,888)	(2,086)
Net debt	6,975	16,509
Fully Paid Ordinary Shares
Quoted (at market price)	380,923	200,551
Unquoted (at issue price)	15,000	-
Equity	395,923	200,551
Total capital	402,898	217,160
Gearing ratio	1.73%	7.60%

• The Group’s capital base includes ordinary share capital, debt facilities, vendor loans and lease liabilities supported by financial assets.

• At 30 June 2016 the Group had undrawn debt facilities of $40 million

• Strong capital base available for funding the growth programme.

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2016 Annual General Meeting Presentation

25 November 2016

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FY17 YTD Highlights

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Current Year Acquisitions

• Three of these sites are in Victoria and have been purchased with an “earn out”:

• Direct One Accident Repair Centre is a facility located in Thomastown;

• Mill Park & South Morang Smash Repairs operates from a site in South Morang; and

• Woollard’s Auto Body Works is located in Shepparton.

• Two of these sites are in Queensland and have been acquired with no “earn out”:

• Highland Smash Repairs is located in Salisbury; and

• Trend Smash Repairs was is based in Rocklea.

• Joondalup Smash Repairs, which operates a site in Wangara, Western Australia, has also been acquired on an “earn out” basis.

• We have also agreed to open two new “Greenfield” sites; one in South Australia and the other in Victoria.

Acquisition Highlights	Acquisition Highlights
Anticipated Consideration(Total)	$4,743,000
Incremental Revenue(Total)	$26,900,000
Incremental EBITDA(Total)	$2,371,000
Implied EBITDA Multiple(Average)	2.00 times

Results to date

• Integration of these acquisitions is proceeding according to plan

• Our first half is shaping up as expected and we are excited by the opportunities that are ahead of us.

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2016 Annual General Meeting Presentation

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Summary

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 Focused provider of Australian automotive aftercare services and accessories  Leading position in Australia’s panel repair market  Strong operating cashflows, further increasing following transformational acquisitions  Strong balance sheet with ability to take on additional leverage  Strong pipeline in growth opportunities in panel repair market  Experienced management team bolstered by new additions

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Appendix A – Normalisation Adjustments

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	FY2016 Reported Results	$’000
	EBITDA from continuing operations – Reported	24,672
	Cost associated with the disposal of Perth Brake Parts	111
	Employee Equity Plan expense	3,644
	Business Acquisition expenses	916
	Reorganisation of the Vehicle Protection & Products division	400
	Reorganisation of the Automotive Electrical & Cable division	200
	Site Integrations – Vehicle Panel Repair division	500
	Site Closures – Vehicle Panel Repair division	350
	Redundancies – Vehicle Panel Repair division	1,128
	EBITDA from continuing operations – Normalised	31,921

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2016 Annual General Meeting Presentation

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Disclaimer

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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.

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