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