Slide 1: MaxiTRANS Industries Limited FY19 Investor Presentation
For personal use only MaxiTRANS Industries Limited FY19 Investor Presentation
Slide 2: FY19 Highlights
For personal use only FY19 HIGHLIGHTS 2
Slide 3: Leading our industry to become safer and more efficient
At MaxiTRANS, we are leading our industry to become safer and more efficient, so that our For personal use only customers can better deliver the needs of a nation • One of the largest suppliers of truck and trailer parts to the road transport industry in Australia through the MaxiPARTS wholesale and
Slide 4: FY19 Results
FY19 RESULTS For personal use only • External sales of $352.5m, down 13.9% on PCP. • Underlying net profit after tax (NPAT) of $4.8m. • Underlying EBITDA of $14.2m. • Capital reallocation • Sale of MTC – underperforming venture due to increased competition, product commoditization, and input cost in
Slide 5: Financial Overview
FINANCIAL OVERVIEW • Results For personal use only • Weak economic conditions throughout the Australian economy A$M FY18 FY19 % Change had an adverse impact on both MaxiTRANS business segments. External Revenue* 409.3 352.5 -13.9% • MaxiPARTS increased revenue and underlying EBITDA over PCP by 4.9%
Slide 6: Two Complementary and Well Positioned Businesses
TWO COMPLEMENTARY AND WELL POSITIONED BUSINESSES For personal use only FY19 Segment Revenue Contribution* MaxiPARTS Differentiators Trailers Differentiators A national store footprint in Parts 36% Strong brand heritage the right locations Trailers 64% and reputation Broadest range of products, Uniqu
Slide 7: MaxiPARTS: Extensive Range of Parts/Consumables and Expertise
MAXIPARTS EXTENSIVE RANGE OF PARTS/CONSUMABLES AND EXPERTISE FY19 Revenue by State For personal use only • 20 locations nationally 32% 22% • Portfolio includes trailer parts, after-market 2% truck and engine parts / consumables 5% 29% 10% • In excess of 180,000 products in the portfolio, including m
Slide 8: Trailers: A Diverse Portfolio of Brands
TRAILERS A DIVERSE PORTFOLIO OF BRANDS EXPOSED TO MULTIPLE SEGMENTS OF THE ECONOMY For personal use only PRODUCT REVENUE CONTRIBUTION FROM NEW TRAILER SALES Bulk Transport (3 YEAR AVE) • Infrastructure • Housing Starts • Agriculture • Waste • Mining • Population Growth 27% 39% General Freight • Popu
Slide 9: Earnings Bridge
EARNINGS BRIDGE 22 For personal use only 20.9 10.1 20 18 16 1.1 0.4 0.7 0.7 2.0 14.1 14 2.4 1.4 12 10 8 6 4 2 0 FY18 EBITDA Coles Service / Trout River Trailer Mix Mftg MaxiParts MaxiParts Other FY19 EBITDA Contract Rental Acquisition efficiency growth Margin excluding + NZ improvement Significant I
Slide 10: Cashflow
CASHFLOW A$M FY18 FY19 For personal use only • Operating cash outflow due to higher debtors with a higher EBITDA ^ 20.9 14.2 Change in Working Capital 5.4 (9.1) mix of fleet customers and a decrease in deferred revenue Other (6.6) (11.1) (i.e. customer deposits received in advance) Operating Cashflo
Slide 11: Balance Sheet
BALANCE SHEET For personal use only A$M FY18 FY19 • Increase in debtors due to higher mix of fleet customers Receivables 39.1 42.4 Inventories 57.7 59.3 • Decrease in Property, Plant and Equipment due to Total Current Assets 130.1 118.1 reclassification of ERP system from PP&E to intangible assets a
Slide 12: CAPEX
CAPEX Rental Fleet For personal use only CAPEX • Significant investment in new IT systems (ERP ERP (TRANSform) and associated systems) over past 5 years 18 16.3 • ERP go-live in Manufacturing (Q2 FY19) and 16 rest of business to follow in FY20 3.1 13.7 14 • Operating benefits from combination of 12
Slide 13: Business Unit Performance
For personal use only BUSINESS UNIT PERFORMANCE 13
Slide 14: Segment Earnings – MaxiPARTS
SEGMENT EARNINGS – MaxiPARTS For personal use only MaxiPARTS continues to become a larger share of A$M FY18 FY19 % Change the MaxiTRANS business. Total Revenue 127.4 133.5 4.7% • As a high quality distribution asset, External Revenue 101.9 106.9 4.9% MaxiPARTS represents 41% of total segment profit
Slide 15: Segment Earnings – Trailers (Australia & NZ)
SEGMENT EARNINGS – TRAILERS (AUSTRALIA & NZ) • Revenue growth in FY18 was principally driven from the For personal use only Coles contract. A$M FY18 FY19 % Change Total Revenue 298.5 240.5 -19.4% • Adjusting for the Coles contract, the Australian trailer solutions revenue decreased 2% on PCP due to
Slide 16: Australian Trailers
AUSTRALIAN TRAILERS For personal use only • Market growth – New trailer GENERAL FREIGHT FOOD & GROCERY BULK TRANSPORT registrations in 2019 4% lower than 2018. The final quarter of 2019 was 15% lower than Q4 2018. • Average age of trailer fleet increased • Unit sales 14% higher • Unit sales down 44%
Slide 17: Capital Allocation
CAPITAL ALLOCATION For personal use only China • MTC sale finalised in November 2018. Sale resulted in a loss of $1.6m (inclusive of costs). • The funds released by this transaction subsequently allowed the Group to fund the acquisition of 80% of Trout River Australia Trout River Australia • Acquisi
Slide 18: Trout River Australia
TROUT RIVER AUSTRALIA For personal use only • Leading manufacturer and supplier of live bottom trailers in Australia. • Acquisition is a key step in MaxiTRANS’ Growth in Existing Markets strategic initiative. • The addition of live bottom trailers into MaxiTRANS’ comprehensive portfolio will add pro
Slide 19: New Lease Accounting Standard
New Lease Accounting Standard For personal use only • MaxiTRANS will adopt the new lease accounting Estimated impact of new lease accounting standard on FY2020 standard (AASB 16) from 1 July 2019 on a modified Balance sheet – impact on adoption at 1 July 2019 retrospective approach (comparative amou
Slide 20: Strategy Update – Building on Solid Foundations
For personal use only STRATEGY UPDATE – BUILDING ON SOLID FOUNDATIONS 20
Slide 21: Strategic Initiatives Driving Value
STRATEGIC INITIATIVES DRIVING VALUE For personal use only Our Strategy : Partner with operators in the freight transport business to improve VALUE CREATION efficiency and effectiveness. Add value by reducing customers’ operating risks. Industry Leader • Trusted business partner Our Values : Send all
Slide 22: Value Enablers: Organisational Development and Corporate Image
VALUE ENABLERS: ORGANISATIONAL DEVELOPMENT AND CORPORATE IMAGE For personal use only GOAL • An organisation empowered to grow in The MaxiTRANS Way • Build on industry leadership position focussing on safety & efficiency Key Launched tailored training programs designed to 1 Embed The MaxiTRANS Way
Slide 23: Value Generator: Operational Excellence
VALUE GENERATOR: OPERATIONAL EXCELLENCE For personal use only GOAL Drive efficiency and margin improvement ERP system went live in all 1 Implement ERP system and MaxiTRANS Australian continuous improvement initiatives manufacturing sites in October 2018 Year on Year savings at Implement common e
Slide 24: Value Generator: Growth in Existing Markets
VALUE GENERATOR: GROWTH IN EXISTING MARKETS For personal use only GOAL Revenue growth; improved asset utilisation Expand footprint: Trout River Key New products: Base model Drivers 1 Grow national market share in trailers now approximately 19% of General Freight sales Integrated MaxiTRANS/larg
Slide 25: Value Generator: Growth in New Markets
VALUE GENERATOR: GROWTH IN NEW MARKETS For personal use only Establish longer term growth drivers and geographic GOAL diversification Key Rental fleet meeting internal 1 Target opportunities in Fleet targets Drivers Management Deferred until market recovers 2 Value accretive growth in China in A
Slide 26: Outlook
For personal use only OUTLOOK 26
Slide 27: FY20 Outlook
FY20 OUTLOOK For personal use only • It is expected market conditions in the Australian trailer market will continue to be slow as consumer confidence and other macros-economic drivers remain soft and operators continue to age their fleets, estimating approximately a 15% decline in end market traile
Slide 28: Values
VALUES For personal use only SEND ALL OUR A BALANCED FOCUS ENABLE AND PEOPLE HOME ON CUSTOMERS EMPOWER PEOPLE SAFELY AND RESULTS TO ACHIEVE RESULTS BE HONEST, ENCOURAGE BECOME BETTER FORTHRIGHT AND COLLABORATION EVERY DAY IN ALL ETHICAL IN OUR AND DEEP SEATED THAT WE DO DEALINGS ACCOUNTABILITY 28
Slide 29: Important Information
IMPORTANT INFORMATION For personal use only This document should be read in conjunction with the periodic and continuous disclosure announcements of MaxiTRANS Industries Limited (MaxiTRANS) that have been lodged with the ASX, in particular the financial report for the full-year ended 30 June 2019 (a