Boyd Group Services (BYD) Investor Update summary

Five-year financial and strategic goals

• Targeting CAD 5 billion in revenue and doubling adjusted EBITDA to CAD 700 million by 2029, implying a 14% margin and 15% CAGR in EBITDA.

• Growth to be achieved through 3%-5% annual same-store sales growth and 5%-7% from new locations, with a focus on securing top market positions.

• Project 360, a profitability transformation plan, aims to deliver CAD 100 million in recurring annual cost savings, with 70% of savings realized by year two.

• Upfront costs for Project 360 are estimated at CAD 20-23 million, to be incurred over the next quarters.

• Plan is not dependent on large multi-shop acquisitions, but such deals would be incremental if they occur.

Growth strategy and market dynamics

• Expansion will leverage both brownfield/greenfield developments and acquisitions, with half of new unit growth expected from greenfield/brownfield sites.

• Greenfield and brownfield sites have higher initial costs but deliver superior long-term returns and support market densification.

• Industry headwinds in 2024 included lower repairable claims due to economic uncertainty and higher insurance premiums, but long-term fundamentals remain strong.

• Market share gains are expected through superior service, DRP relationships, and focusing on markets where top positions can be secured.

• No plans to expand outside current North American markets.

Capital allocation and financial position

• Sufficient liquidity with an estimated CAD 1.5 billion available for investment over five years.

• Targeting a net debt-to-adjusted EBITDA ratio of 2-2.5x (pre-IFRS) and 3-3.5x (post-IFRS), with flexibility to increase leverage for large acquisitions.

• Maintenance capex to remain at 1.6%-1.8% of annual revenue, with modest annual dividend growth.