Motorcycle Holdings Ltd. · ASX:MTO
Motorcycle — Investor Presentation (August 2024)
26 slides from Motorcycle's investor presentation, Aug 30, 2024
Slide 1: Investor Presentation
INVESTOR PRESENTATION MotorCycle
Slide 2: Disclaimer
DISCLAIMER This presentation may contain certain forward-looking statements. Such statements are inherently subject to uncertainties in that they may be affected by a variety of known and unknown risks, variables and other factors which could cause actual values or results, performance, or achieveme
Slide 3: Agenda
AGENDA 1. FY2024 SUMMARY 2. FINANCIAL RESULTS 3. OPERATIONAL PERFORMANCE 4. FY2025 OUTLOOK 3
Slide 4: FY2024 Summary
FY2024 SUMMARY 4
Slide 5: FY2024 Summary
FY2024 SUMMARY SALES REVENUE LIKE-FOR-LIKE REVENUE1 OPERATING GROSS PROFIT UNDERLYING EBITDA 1% to 4% to 2% to 18% to $582.3m $450.6m $149.4m $45.2m NPAT NET ASSETS FINAL DIVIDEND PER SHARE 39% to 1% to 7c 10c $14.1m $200.2m fully franked full year 1. Excludes from both years: Mojo Motorcycles, Team
Slide 6: Operational Summary
OPERATIONAL SUMMARY 1 Diversification from Mojo acquisition contributed to stable 2 Growth in market share2 demonstrates industry revenue in a contracting market leadership and strength of business model 3 Interest rates and cost of living pressures impacted sales from 4 Like-for-like operating expe
Slide 7: Operational Summary
OPERATIONAL SUMMARY 5 One-off investment in upgraded Cassons operating systems to 6 Two new stores: Morgan & Wacker Harley-Davidson Sydney drive improved performance and flagship corporate-owned CFMOTO Springwood 7 Strong growth in online accessories sales 8 Reduction in overheads by consolidating l
Slide 8: Financial Results
FINANCIAL RESULTS 8
Slide 9: Profit Results
PROFIT RESULTS OVERVIEW OF RESULTS ($ MILLION) 30 JUNE 24 30 JUNE 23 Change % Sales revenue 582.3 577.4 1% Cost of sales (433.0) (425.7) 2% GROSS PROFIT 149.3 151.7 (2%) Gross profit margin (%) 25.6% 26.3% (3%) Other income 2.9 2.9 — Employee benefits expense (70.8) (69.3) 2% Bailment expense (new v
Slide 10: Like-for-Like Results
LIKE-FOR-LIKE RESULTS1 OVERVIEW OF RESULTS ($ MILLION) 30 JUNE 24 30 JUNE 23 Change % Sales revenue 450.6 470.8 (4%) Cost of sales (333.3) (344.2) (3%) GROSS PROFIT 117.3 126.6 (7%) Gross profit margin (%) 26.0% 26.9% (3%) Other income 2.8 2.8 — Employee benefits expense (64.0) (66.5) (4%) Bailment
Slide 11: Balance Sheet
BALANCE SHEET ($M) AS AT 30 JUNE 24 30 JUNE 23 CHANGE % Cash and cash equivalents 12.1 24.7 (51%) Trade and other receivables 11.9 12.1 (2%) Inventories 155.6 155.8 — Plant and equipment 13.8 13.4 3% Lease right of use assets 43.4 48.2 (8%) Goodwill and intangibles 145.8 147.5 (1%) Investments 6.1 6
Slide 12: Market Value
MARKET VALUE RESULTS FOR THE YEAR ENDED 30 JUNE 24 30 JUNE 23 CHANGE % Closing share price ($) $1.00 $1.45 (31%) Securities on issue (number) 73,806,444 73,677,259 — Dividends per share LTM (cents) 15.0 16.0 (6%) Basic earnings per share (cents) 19.2 33.1 (42%) Price to earnings ratio LTM 5.2 4.4 19
Slide 13: Revenue Growth
REVENUE GROWTH Revenue growth (total revenue, $m) 700 600 5-year CAGR 12% 580 585 500 463 434 302 291 400 364 325 226 216 300 186 152 200 278 295 218 237 100 173 178 0 2019 2020 2021 2022 2023 2024 First half Second half MOTORCYCLE HOLDINGS 13
Slide 14: Underlying EBITDA and Margin
UNDERLYING EBITDA AND MARGIN Underlying EBITDA ($m) Underlying EBITDA Margin (%) 60 14 55.3 49.7 49.1 12 12.8 50 45.2 10 10.5 10.6 40 17.5 30.5 24 9.5 23.4 8 30 7.8 6 20 32.2 4 25.1 24.8 10 21.8 2 0 0 2021 2022 2023 2024 2020 2021 2022 2023 2024 First half Second half MOTORCYCLE HOLDINGS 14
Slide 15: NPAT Results
NPAT RESULTS NPAT ($m) 30 28.3 25 23.1 23.0 11.1 20 10.5 15.2 12.5 15 14.1 10 8.3 10.4 7.5 17.2 3.1 12.6 5 10.5 6.6 5.2 4.8 0 2019 2020* 2021* 2022 2023 2024 First half Second half * includes JobKeeper payment MOTORCYCLE HOLDINGS 15
Slide 16: Diversified Earnings
DIVERSIFIED EARNINGS Gross Profit by Department ($m) 35.0 7% 23% 30.6 7% 30.0 27.7 11% 26.8 26.3 25.0 24.4 22.2 21.8 1% 2% 2% 19.8 20.0 17.3 17.2 17.5 17.0 15.5 15.8 15.0 10.0 5.0 0.0 New vehicles – retail New vehicles – wholesale Used vehicles Parts and accessories – Parts and accessories – Service
Slide 17: Operational Performance
OPERATIONAL PERFORMANCE 17
Slide 18: New Motorcycle Retail Units
NEW MOTORCYCLE RETAIL UNITS Strong MTO sales performance vs industry2 Industry: decreased 3% in FY24 MTO: increased 5.4% in FY24 140,000 16,000 14,491 116,619 14,039 13,751 120,000 14,000 13,264 111,927 6,340 6,654 6,839 48,929 6,494 99,581 55,840 96,186 93,436 12,000 11,013 100,000 89,595 52,839 45
Slide 19: Used Motorcycle Retail Units
USED MOTORCYCLE RETAIL UNITS 12,000 10,082 10,374 10,024 10,113 10,000 9,068 9,430 5,014 5,088 4,544 5,074 8,179 4,366 4,733 8,000 4,256 6,000 5,360 5,480 4,994 5,039 4,000 4,702 4,697 3,923 2,000 0 2018 2019 2020 2021 2022 2023 2024 First half Second half MOTORCYCLE HOLDINGS 19
Slide 20: Retail
RETAIL • Solid sales performance despite weaker consumer discretionary spending o New retail unit sales up 5% o Total retail unit sales up 4% • $3.5m growth in online parts and accessories sales, up 183% from $2.0m • Two new stores opened: o Morgan & Wacker Harley-Davidson Sydney o CFMOTO Springwood
Slide 21: Wholesale Vehicles
WHOLESALE VEHICLES • Successful first full-year contribution from Mojo Group despite 17% decline in OHV market1 • CFMOTO continuing to gain traction in motorcycle segment with 2024 retail sales exceeding expectations • New flagship corporate-owned CFMOTO store in Springwood, QLD opened in June 2023
Slide 22: Wholesale Accessories
WHOLESALE ACCESSORIES • Wholesale parts and accessories produced satisfactory performance despite business interruptions • Successfully introduced new ERP and B2B system in October 2023 which has improved efficiencies • Management continue to focus on disciplined cost management and operating effici
Slide 23: Finance JV
FINANCE JV Earnings declined in FY24 due to: • Increased cost of borrowing leading to margin pressure. • Marginal increase in bad debts • Customers impacted by increases in cost of living MOTORCYCLE HOLDINGS 23
Slide 24: FY2025 Outlook
FY2025 OUTLOOK 24
Slide 25: FY2025 Outlook
FY2025 OUTLOOK Interest rates and cost of living pressures Focus on business improvement expected to continue to impact trading and cost control Stronger results expected from Cassons Successful integration in NZ of Forbes following improvements to business & Davies and Mojo, and new integration sys
Slide 26: Thank you
Thank you MOTORCYCLE HOLDINGS LIMITED 68 Moss Street Slacks Creek QLD 4127 www.mcholdings.com.au
Motorcycle Holdings — Investor Presentation (August 2024) on 6ix