Climate Change Data

Environmental Metrics

Social Achievements

• Appointment of Nicole Cook and Carl Bizon as new independent, Non-Executive Directors. Both appointments bring valuable knowledge and skills to the Board.
• The Board and senior employees reduced remuneration by 20% from May 2020 to June 2020.

Governance Achievements

• With a strong focus on improving corporate governance, a number of improvements were made during FY20, while at the same time managing the challenges of COVID-19 on the business.
• revision and adoption of a number of governance policies to align with current best practice, including; Board Charter; Audit Committee Charter; Securities Trading Policy; Conflicts of Interest and Related Party Transaction Policy; Continuous Disclosure Policy; Whistleblower Policy; and improved disclosure in the remuneration report in relation to the remuneration framework and outcomes for Key Management Personnel (KMP).

Climate Goals & Targets

Environmental Challenges

• Dry weather conditions late in the first half of FY20 reduced repair volumes and coupled with a decrease in year-on-year new car sales and increases in costs of repair as a result of Advanced Driver-Assistance Systems, resulted in a weaker than anticipated financial performance for H1 FY20.
• The impact of COVID-19 on our operations and revenue generation mainly in the last quarter of FY20 resulted in FY20 Normalised EBITDAI of circa $53 million.
• The restrictions imposed by the Australian and New Zealand Governments to stem the spread of COVID-19, impacted kilometres travelled, which has a direct impact on revenue generation.

Mitigation Strategies

• Management’s responses which included optimising resources, improving operational efficiencies, cost management and cash preservation placed the business in a significantly better position than anticipated at the outset of the pandemic, and we are pleased to have delivered a result above expectations.
• Optimisation of costs in line with repair volume, ensuring customer service was maintained.
• Management of Government lockdowns and state-wide restrictions imposed in New Zealand and Australia. Government wage subsidy programs assisted the Company in maintaining operations and more importantly retaining capability and skill within the business.
• Engagement with lenders to secure ongoing liquidity to endure an extended period of business interruption.
• Adoption of a high standard of health and safety measures and provision of additional support to our employees including via Employee Assistant Programs.
• Regular Board meetings to assist Management and remain close to the business and developments.
• The Board and senior employees reduced remuneration by 20% from May 2020 to June 2020.
• cost-saving initiatives, including site hibernations, downscaling our workforce to match demand, freezing of non-time critical capital expenditure and a reduction of the Group’s senior employees and Board remuneration.
• proactively engaged with other key stakeholders, including landlords to seek a combination of waivers and deferrals of rental commitments during this period.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Safety
• Diversity & Inclusion
• Employee Wellbeing

Environmental Achievements

• Not disclosed

Social Achievements

• 50% reduction in Lost Time Injury Frequency Rate (LTIFR)
• Implementation of The Workplace Diversity Project, Workwell Mental Health program
• Employed 340 apprentices

Governance Achievements

• Appointment of two new Independent Non-Executive Directors
• Strengthened leadership team with several senior appointments
• Revision and adoption of governance policies

Climate Goals & Targets

Environmental Challenges

• Challenging economic conditions due to COVID-19 pandemic restrictions
• Extended periods of lockdown leading to temporary staff stand-downs
• Skilled labour shortage exacerbated by international border closures

Mitigation Strategies

• Prudent and proactive actions to protect employees and deliver services
• Wage subsidies from Australian and New Zealand Governments
• Additional employee support
• Focus on operational efficiencies and cost management
• Close work with major customers to mitigate disruptions
• Proactive management of skilled labour shortage

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Community
• Environment
• Workplace and marketplace
• Workplace health and safety
• Diversity and Inclusion

Environmental Achievements

• Uses water-based paint technology, releasing less organic solvents (<10%) into the atmosphere compared to solvent-based paint.

Social Achievements

• Reduced Lost Time Injury Frequency Rate (LTIFR) by 54% over the previous 12-month period.
• Supported numerous community programs (R U OK? Day, The Biggest Morning Tea, International Women's Day).
• Introduced flexible working arrangements (compressed working weeks, early finish times).
• Implemented a 3-day Frontline Leadership Program for over 60 Centre Managers and Operational Leaders.
• Continued to grow its Apprentice program (over 350 apprentices).

Governance Achievements

• Complied with the 4th edition of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations.
• Established a Board Skills Matrix to ensure appropriate skill mix among Directors.
• Appointed a new Non-Executive Director (Talbot Babineau).

Climate Goals & Targets

Environmental Challenges

• Climate change and associated policy changes and regulation pose a business risk.
• Economic risks may materially affect the Group’s ability to preserve value for shareholders.

Mitigation Strategies

• Formal incorporation of climate risk in the Group’s risk register.
• Commitment to further assessment of climate risk and development of any relevant action plans in the future.
• Executive General Managers of each division assess, implement and regularly monitor appropriate risk mitigation measures.

Supply Chain Management

Responsible Procurement

• AMA Group aims to work with suppliers who have the same core values and similar approaches as the AMA Group.

Climate-Related Risks & Opportunities

Transition Risks

• Climate change, policy and regulation

Reporting Standards

Frameworks Used: ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Diversity & Inclusion
• Risk Management
• Corporate Social Responsibility (CSR)
• Workplace Health and Safety

Environmental Achievements

• Uses water-based paint technology, releasing less organic solvents (<10%) into the atmosphere compared to solvent-based paint.

Social Achievements

• Ongoing partnership with NRL Cowboys Foundation, supporting Set to Succeed and the On Common Country First Nations Work Preparation Project.
• Installation of defibrillators at every site.
• First aid training for all team members.
• 450 apprentices at 30 June 2024 with a plan to increase this in FY25.
• Frontline Leaders 1 and 2 Programs to build leadership capability.
• Ongoing skill development for qualified tradespeople through partnerships with I-CAR and key suppliers.
• Continued focus on flexible rostering and working arrangements.
• Employee Assistance Program providing support to team members and their families.

Governance Achievements

• Compliance with the 4th edition of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations.
• Establishment of an Audit & Risk Committee and a People Committee.
• Annual assessment of Board and Committee performance.
• Annual performance evaluation of senior executives.
• Implementation of an equity-based long-term incentive plan (LTIP).

Climate Goals & Targets

Environmental Challenges

• Climate change and associated policy changes and regulation posing a business risk.
• Economic risks that may materially affect the Group’s ability to preserve value for shareholders.

Mitigation Strategies

• Formal incorporation of climate risk in the Group’s risk register.
• Commitment to further assessment of climate risk and development of any relevant action plans in the future.
• Executive General Managers of each division assess, implement and regularly monitor appropriate risk mitigation measures.

Supply Chain Management

Responsible Procurement

• AMA Group aims to work with suppliers who have the same core values and similar approaches as the AMA Group.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations

Environmental Metrics

ESG Focus Areas

• Recycling productivity
• Employee turnover reduction
• Board diversity

Environmental Achievements

• Improved recycling productivity at ACM Parts (though specific metrics are not provided)

Social Achievements

• Reduced voluntary employee turnover by 8.4 percentage points to 30.0%

Governance Achievements

• Refreshed Board brings depth of experience and has a commitment to profitable growth

Climate Goals & Targets

Environmental Challenges

• Cash constraints in 1H24 impacting AMA Collision, leading to volume and team member loss.
• Customer relationship impacts from FY23 repricing activities.
• Lower scrap commodity prices impacting ACM Parts reclaimed parts margins.

Mitigation Strategies

• Completed network rationalisation in AMA Collision.
• Implemented Project Wallaby for operational improvement in AMA Collision.
• Decision to sell ACM Parts and focus on core collision repair portfolio.
• Successful equity raising to improve liquidity.

Supply Chain Management

Climate-Related Risks & Opportunities