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AMA GROUP LIMITED Earnings Release 2008

Aug 27, 2008

64372_rns_2008-08-27_f47df899-0464-4a1e-afdd-1ae95eda3771.pdf

Earnings Release

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Allomak Limited

Pre-release Summary of FY2008 Results

28 August 2008

SUMMARY OF RESULTS

Financial Highlights

Operational Highlights

Sales -> UP116% to $78.3m Above target 30%

Acquisition

– 5 outstanding businesses introduced to the group

EBIT -> UP 105% to $10.0m On target

– Organic Growth excellent growth from all three operating sectors

NPAT -> UP 64% to $6.3m

Group Synergies – significant traction gained on group initiatives

Revenue for 2008 of $78.3m significantly exceeded original forecasts of $60m

SALES PERFORMANCE: 2006 - 2008

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$M
Up 116%
2007 2008
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3

…similarly, profit performance was outstanding - particularly given the current environment

EBIT PERFORMANCE: 2006 – 2008

$M

Up 105%

2006 2007 2008

GROWTH OUTLOOK

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ALLOMAK
Acquisition Performance Group
Excellence Improvement Synergies
Allomak leverages three pillars of value creation
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Performance Improvement

Acquisition Excellence

Group Synergies

• Some major organic growth opportunities in the current portfolio

  • Restricted access to capital may reduce acquisition activity in 2009

  • Leverage the “Allomak Advantage”

• Driven largely by extended distribution base or macro economic factors (eg fuel price driving LPG conversions)

• However we expect selective acquisitions of bolt-on accretive businesses

• Strong focus in 2009 on active program to identify and capture growth & cost synergies from the existing businesses

  • Still maintain an excellent pipeline of good acquisitions

• Raising the bar on business disciplines & initiatives (sales & marketing, cost saving, working capital etc.)

Allomak Limited

Group Results

FY2008 ACQUISITION ACTIVITY

Completion Date Sector November 2007 Business Services November 2007 Distribution December 2007 Distribution December 2007 Business Services March 2008 Business Services Averaged 1 transaction every 10 weeks

KEY STRATEGIC CONTRIBUTIONS OF NEW BUSINESSES

  • Leading prestige smash repair in Victoria

  • Authorised repairer for BMW, Lamborghini and other prestige brands

  • 2 sites – Moorabbin and Hallum

  • 20 year history – focus on service and quality systems

  • Ideal Platform for further consolidation in the Panel industry

  • Specialist importer and distributor of Automotive Electrical, Communications, Navigation, parts and accessories

  • Very Strong WA distribution

  • 20 year history – focus on Quality Products and high Service levels

  • Opportunity for National expansion and two way Leverage of Distribution networks

  • Importer and distributor of Automotive, Marine, and Industrial Electrical, and Cabling parts and accessories

  • Qld based national distribution

  • Over 10 year history – focus on Quality Products and high Service levels and unique product development

KEY STRATEGIC CONTRIBUTIONS OF NEW BUSINESSES (cont)

  • Leading aftermarket LP Gas converter in Australia

  • Multiple product development opportunities

  • Strong Franchise model providing national expansion footprint

  • Exclusive supply agreements for equipment

  • Long standing business in prime location

  • Significant synergy leverage with existing panel business

  • Experienced operational management team

SEGMENT SUMMARY*

Sales Sales Sales EBIT** EBIT** EBIT**
2008 2007 % Change 2008 2007 % Change
Manufacturing 27,000 25,900 4.2% 3,100 3,800 (18%)
Distribution 25,300 6,500 290% 3,700 (425) N/A
Business Services 26,000 3,900 600% 3,200 1,525 110%
Total 78,300 36,250 116% 10,000 4,900 105%
  • Subject to final audited accounts

  • ** After allocation of corporate overhead