ASX-LISTING INVESTOR PRESENTATION - RPM AUTOMOTIVE GROUP LIMITED ASX: RPM - ONMARKET

Page created by Joshua Smith
 
CONTINUE READING
ASX-LISTING INVESTOR PRESENTATION - RPM AUTOMOTIVE GROUP LIMITED ASX: RPM - ONMARKET
ASX-LISTING INVESTOR PRESENTATION
      RPM Automotive Group Limited [ASX: RPM]
Business Overview

        The RPM Automotive Group comprises of a number of aligned automotive aftermarket businesses that together provide a platform to address
        significant opportunities in the Australian market. The RPM Group companies are customer-facing, vertically integrated specialist retailers, that in most

        cases have a long history in the Australian market.

        The RPM Group is organised around the following 4 core pillars:

             Motorsport

             Wheels and Tyres

             Repairs and Roadside

             Accessories

        Within these segments of the market the respective RPM Group Businesses have developed well-known (best in class) brands and significant goodwill.

        The RPM Grouphas always subscribed to the simple philosophies of customer service, owning and representing respected brand names across the

        various ranges, with the highest quality of product and service offerings. An ASX-listing will give the Group the resources necessary to expand into

        something great.
Investment Highlights

         Favourable Industry fundamentals                                      Diversified businesses
         The Australian automotive aftermarket is large and growing with a     The RPM Group has diversified revenue across various market
         total addressable market across all sectors of over $25 Billion per   sectors, distribution channels, products and services within the
         annum in 2017.                                                        automotive industry, including; Motorsport, Mechanical Repairs,
                                                                               Wheels & Tyres and Auto Accessories.
         Leading market positions in attractive automotive sectors
         The RPM Group comprises some of Australia’s most                      Management team with deep industry experience
         pre-eminent companies in their respective sectors of the              The founders of the RPM Group have a successful track record of
         automotive industry.                                                  owning, building and operating automotive businesses and will
                                                                               continue to run the business going forward.
         Well known brands
         The RPM Group holds the rights to some of the most well               Clear plan
         known Australian automotive brands with a rich history of             Management has a clear plan to address multiple opportunities in
         association in the sector.                                            the Australian market to aggressively grow the business on multiple
                                                                               fronts.
         Positioned for growth
         The RPM Group has a national platform with operations in 5 states
         in wholesale, retail and manufacturing. The business is designed to
         be scalable and has multiple regional expansion opportunities.
Board

        Lawrence Jaffe - Executive Director                                        Clive Finkelstein - Managing Director
        Lawrence is a co-founder and promoter of the RPM Group. Lawrence          Clive is a co-founder and promoter of the RPM Group. Clive has over
        has a strong financial background having worked in Private Equity,         20 years’ experience in the automotive sector, having built, managed
        Mergers and Acquisitions including for a major Australian financial        and sold a number of automotive companies including a parts and
        institution. He has over 20 years’ experience in the automotive sector,   accessories manufacturer and wholesaler and a 4WD franchise group.
        and was the CEO of RPM Australasia until 2015 when the group sold         Clive’s experience spans international markets, manufacturing,
        off one of its subsidiaries. Lawrence remained on as non-executive         development, wholesale, retail and franchising of automotive
        Chairman of RPM Australasia and has now re-joined the executive           businesses. Clive is a significant shareholder in the RPM Group.
        team. Lawrence is a significant shareholder in the RPM Group.

        Scott Brown - Non-Executive Director                                      Campbell Welch - Non-Executive Chairman
        Scott has extensive experience in finance and the management of            Campbell has over 15 years of experience in accounting and financial
        public companies including guiding numerous companies through the         markets, both in Australia and the UK. He is currently a senior advisor at
        listing process. He has held a variety of roles in public companies       Novus Capital Ltd, a boutique corporate advisory and share dealing firm
        including Mosaic Oil NL, Objective Corporation Limited, Turnbull &        headquartered in Sydney, Australia. His prior work experience includes
        Partners Limited, Allegiance Mining NL, FTR Holding Limited and           appointments at AMP, Challenger Ltd, Royal London Asset
        Garratt’s Limited. He also worked at accounting firms EY and KPMG.         Management and Colonial First State. He holds a Bachelor of
        He is a member of the Institute of Chartered Accountants in Australia     Commerce from the University of Sydney and is a CFA Charterholder.
        and the Petroleum Exploration Society of Australia (PESA). Currently
        he is the managing director of Real Energy Corporation Ltd (RLE) and
        Shine Metals Limited (SHI).
Business Structure

                                            RPM Automotive Group Limited (ASX: RPM)

                                                          Repairs &                                      Wheels &                           Accessories &
          Motorsport
                                                          Roadside                                        Tyres                             Performance

         Primary Expansion Program 1
         Our current Truck and OTR (mining, agriculture, forestry, heavy machinery, construction)Tyre Business Model (including both
         distribution and fitment) is to be replicated nation-wide. Our Victorian platform is scalable as follows: 1. QLD, 2. WA, 3. NSW
         (both organic and acquisitional)

        Primary Expansion Program 2
         Carline Automotive Group (currently 120 Stores) to be grown to 200+, coupled with a diversification program introducing new
         product ranges and offerings to the group. Revenue generated through royalty stream as well as wholesale platform
         (both organic and acquisitional)

         Secondary Expansion Program
         Revolution Racegear has the potential to expand its current “Soft Parts” Motorsport Offering to cover the entire racing industry
         as well as expanding into other niches in the Motorsport Market - being Merchandise and Hard Parts
Locations

     Revolution Racegear has 5 Corporate Retail Stores and 13
     Franchised Stores Nationally                                                    Darwin

     There are over 120 Carline Automotive Licensee Stores all
     around Australia, with Head Office in Melbourne, Victoria

     Formula OffRoad (FOR) has its Head Office in NSW including a
                                                                                   Northern
     Fabrication Plant, Retail and Trade Sales Office and is                         Territory
     distributed nationally                                                                              Queensland

     Wildcat (Genie Headers) has its Manufacturing Facility in         Western
                                                                       Australia
     QLD and is distributed Nationally                                                South                                             Brisbane
                                                                                     Australia

     Spider GT is located in Melbourne, Victoria                                                         New South Wales
                                                                      Perth

     Tyresome is located in Sydney, NSW                                                   Adelaide                   ACT         Sydney
                                                                                                                             Canberra
                                                                                                         Victoria
     Air Anywhere is located in Melbourne, Victoria                                                             Melbourne

     Fix-My-Truck is located in Melbourne, Victoria, but is a truly
     national platform providing specialised emergency services                                      Tasmania
                                                                                                                    Hobrat
     country-wide

     Competition Tyres is located in Melbourne, Victoria
Revolution Racegear

    Overview

    Revolution Racegear is the market leader in “Race Safety Gear” or soft parts.
    Revolution Racegear was founded in 1993 by George Santana, a motorsport hero who’s mission was to ‘revolutionise’ the way Australian motorsport products were
    marketed and distributed. George went about setting up a national network of motorsport shops and secured agencies for the best international motorsport brands that
    are today’s world leaders.

    A substantial percentage of the product offering is the design and manufacture of fireproof race team apparel, marketed under Revolution’s own brand RPM Racegear
    (RPM) which is recognised as the leader by the Australian Motorsport Industry.

    RPM continues to be the leader in Australian Motorsport in all categories
    Revolution Racegear occupies a number of roles within the value chain, including; manufacturer, importer, retailer and wholesaler. All segments of motor sport are supplied
    including speedway, circuit racing, rallying and go-karting.

    Revolution Racegear prides itself on stock availability and customer service, investing in experienced staff who can offer authoritative advice and help solve
    application, installation and homologation issues to ensure customers get the best value and best performing product for their motorsport needs.

    With 18 stores throughout Australia and one in New Zealand, Revolution Racegear continues to be the leader in motorsport safety equipment and performance accessories.
    The company is headquartered in Melbourne.

    Brands

    RPM, Alpine Stars, Bell Helmets, Cobra Seats, Hans

    General Manager
    Tulio Saltalamacchia

    Website

    www.revolutionracegear.com.au
Spider GT - Tyres

    Overview

    Spider GT Pty Ltd was established in 2012 as an importer and wholesaler of truck, off-road and commercial as well as passenger vehicle tyres.
    Spider GT has the exclusive Australian distribution rights for LONGMARCH truck and bus (TBR) tyres and TIANLI off-the-road (OTR) tyres
    The tyres are manufactured in China with the technical support of Goodyear/Dunlop under stringent quality control systems accredited with ISO/TS 16949:2002 and ISO
    9001:2000.

    The company has made significant inroads into the Australian market in a short time and is looking to develop its passenger tyre range and increase its market share of off-
    road tyres through increasing sales to the mining, forestry, agriculture and construction industries.
    Spider GT has a full range and availability of quality tyres to suit both commercial and private vehicle requirements. Spider

    GT is based in Melbourne

    Brands

    Longmarch, Tianli

    Customers

    Wholesale, Channel partners, Online sales

    General Manager
    Wei Liu

    Website

    www.spidergt.com.au
Carline Automotive

    Overview
    Carline Automotive is a retail franchise and licensee group with each store offering a wide range of auto mechanical repairs, servicing and fitment. It comprises an
    independent group of over 120 stores trading under one banner that provides the very best service and expertise in the Exhaust and Under-car Industry.

    Each Carline Store operates a fully equipped workshop; enabling quality performance, custom, and replacement exhaust systems installation.
    Whilst each business is independent, the Carline Automotive Group's national branding, quality standards and recommendation of quality exhaust components, like Lukey,
    Redback, Genie and others are designed to ensure exacting levels of quality workmanship nationwide.

    As a group we are able to offer nationwide warranty on our products and services, as well as the highest quality parts and exhaust components, at the best retail
    prices.

    The executive team have the core competencies to build and convert the brand into the likes of Midas or UltraTune.

    Services

    Mechanical Repairs, Exhaust & Mufflers, Emissions, Towbar fitment, Suspension, Brakes, Log Book Servicing, Batteries, Radiators

    Customers
    Trade, Retail

    General Manager
    Brad Gilliland

    Website

    www.carline.com.au
    www.lukey.com.au
Air Anywhere

    Overview

    Established in 2006, Air Anywhere is an onsite or road-side tyre service business
    Air Anywhere offers a full range of truck tyres, and offer 24 hour 7 days a week Onsite Truck Tyre repair in Victoria The

    company specialises in dealing with emergency repairs

    The company is a One-Stop Service for all truck tyre needs
    Air Anywhere also offers a wide selection of nicheoff-road tyres (including Agriculture, Earth-Moving, Heavy Machinery, Mining)

    Customers
    Major trucking & transportation companies, Owner-operators, Truck hire, Agricultural, Industrial (Forklifts etc)

    Brands
    Michelin

    General Manager
    Susan Simpson
Formula OffRoad

    Overview

    Formula OffRoad is an established manufacturer of automotive accessories (towbars, bulbar, etc)
    The Company has been in business for over 30 years and handles anything from one off jobs to fleet and Original Equipment Manufacturing (OEM).
    Clients include Commercial Fleet services, Local and interstate Energy Companies, Local and interstate Forestry departments, Lease Companies, Mining
    Companies and all sizes of business fleets.

    The company has an experienced team enabled for end-to-end solutions including CAD design, bending, cutting, folding of raw material using automated machinery
    such as CNC Mandrel benders, Precision Plasma Cutters andspecialisedfolding equipment.
    As specialists in both steel and aluminum fabrication, FO production staff are of the best in the industry. Formula

    OffRoad products are available Australia-wide through a national distribution network

    The company is based in Western Sydney.

    Customers

    Original Equipment Manufacturing (OEM ), Retail, Wholesale & Trade, Online Sales

    General Manager
    Wes Patterson

    Website

    www.formulaoffroad.com.au
Fix-My-Truck

    Overview

    Fix My Truck has been operating for over 20 years offering 24/7 Roadside Services for the Trucking Industry
    The company offers a 24/7 nationwide breakdown service for the Transport Industry, covering all vehicles 3-tonnes and above for tyres, mechanical repairs, auto
    electrical, towing and more

    Fix My truck has over 13,000 service providers currently listed on our truly national platform
    The company has a customer service team on standby 24/7 and a proprietary software platform designed to manage the entire service process Industry-

    leading technical database facilities

    The company is constantly innovating with a vision of keeping Australia’s Transport Industry on the move Fix My

    Truck is headquartered in Melbourne, Victoria

    Customers and Members
    Major and minor transport companies and fleets
    Monthly subscription model
    Unlimited supplier, customer and client contacts

    General Manager
    Dallas Scholes

    Website

    www.fixmytruck.com.au
Wildcat

    Overview

    Genie Headers have been at the forefront of header design and development in Australia for over 50 years.
    As Australia’s leader in the industry Wildcat has a dedicated team of skilled professionals, including a research and development team with over 30 years experience
    in the design of performance & emissions products.

    Genie Headers has a three-tiered income stream: manufacturing, Importing & distribution, Retail Fitment and Online direct
    Genie Headers are sold worldwide through International Distributors as well as local Australian Resellers who are specialised in the industry.
    The company offers products that service a large range of makes and models including High Performance Vehicles, with the key benefits of increased
    performance and better fuel economy being achieved.

    The business is located in Narangba, Southeast Queensland.

    Brands owned or exclusively distributed
    Genie Headers, Wildcat, APS (eBay)

    General Manager
    Bradley Gilliland

    Website

    www.genieheaders.com.au
RW Tyres

    Overview

    Established in 2016, RW Tyres is the Company’s roll-up strategy in passenger tyre retail stores
    The stores offer the supply, fitment and repair of tyres, wheel alignment, brake servicing, wheel balancing, suspension, child restraint fitting, batteries and a range of
    automotive repairs

    The stores cross-sell other RPM Group products, including 4WD accessories, tyre imports, bull bars, canopies and tow bars.

    RW Tyres currently comprises two tyre retail stores; Competition Tyres (T/A Tyres & More), Murrumbeena and Tyresome, Darlinghurst

    Brands owned or exclusively distributed

    Yokohama, Cooper, Mickey Thompson, Ironman, Carbon, Pirelli

    Customers

    Retail, Trade (car dealerships), Wholesale & Distribution, Online Sales
    Onsite Fitment and Service

    General Manager
    Stacey Knight

    Websites

    www.northroadoffroad.com.au
    www.tyresandmore.com.au/stores/murrumbeena

    www.tyresome.com.au
RPM Automotive Group History

Market Leader                                                                                               2019

Through a solid platform and vertical integration, RPM is                                                   RPM Automotive Group Ltd [ASX: RPM]
taking a leading position in the auto aftermarket – We have
the formula                                                                                       2016

                                                                                              RW Tyres

                                                                                                            2013

                                                                                                            The RPM Group Formation

                                                                                                 2000’s

                                                            Tyresome | Wildcat | Spider GT | Air Anywhere

                                                                                                            1990’s

                                                                                                            Revolution Racegear | Carline Group | Fix-My-Truck

                                                                                                 1980’s

                                                                                       Formula Off-Road

                                                                                                            1960’s

                                                                                                            Competition Tyres
A Future in Tyres and Accessories

              RPM Automotive Group Ltd is focused on our unique position in a consolidating Australian automotive market. We have a
              detailed plan to accelerate expansion through organic growth and the targeted acquisition of a number of related
              automotive businesses.

              The Company believes it is well-placed to take advantage of an opportunity in the tyre sector, including consumer (PSR),
              commercial (TBR) and off-the-road (OTR) tyres, both as a wholesaler (Spider GT) and a distributor (Air Anywhere, RW
              Tyres).

              Having secured some key automotive brands, that are both well accepted in Australia and growing internationally, RPM
              has the ability to not only organically grow across all current distribution channels, but also to cross-sell through the other
              business units that we own.

              The vision is to meet the demands of Australian automotive consumers by striving for “best in class” products and
              services so as to build a company that is respected in the market, has strong foundations, will be long lasting and provide
              an acceptable return to shareholders.
CONTACT

Campbell Welch                            Clive Finkelstein
Non-Executive Chairman – RPM              CEO and Director – RPM
Automotive Group Limited                  Automotive Group Limited

(02) 9375 0165                            (03) 9873 8700 | 0403 500 654

campbell.welch@novuscapital.com.au        clive@racegear.com.au

RPM Automotive Group                      Website
support@rpmgroup.net.au                   www.rpmgroup.net.au
You can also read