Ntaw Holdings Limited. · ASX:NTD
Ntaw — National Tyre & Wheel — H1 FY2024 Earnings Presentation
21 slides from Ntaw's earnings presentation, Feb 27, 2024
Slide 1: Financial Results: Half-year ended 31 December 2023
For personal use only Financial Results Half-year ended 31 December 2023 1 27 February 2024
Slide 2: Agenda
Agenda For personal use only Item Page 1H24 Highlights 3 Business Update 6 Dunlop Distribution 10 Financial Results 15 Outlook 19 2
Slide 3: 1H24 Highlights
For personal use only 1H24 Highlights 3
Slide 4: Executive Summary
Executive Summary More favourable operating environment, project execution, preparing for Dunlop • National Tyre & Wheel Limited (“NTAW”) is the largest independent tyre and wheel importer and wholesale distributor in Australia and New Zealand. • Goodyear announces it will cease wholesale, retail an
Slide 5: Financial Highlights
Financial Highlights 1H24 improvement after difficult operating conditions in FY23 • 1H24 Operating EBITDA of $19.7 million (1H23: $15.7 million). Financial Highlights 1H24 1H23 For personal use only • 1H24 EBIT of $7.1 million (1H23: $1.7 million). Gross profit margin 31.1% 27.1% Operating costs as
Slide 6: Business Update
For personal use only Business Update 6
Slide 7: Going Further to Help our Businesses & Customers Win
Going Further to Help our Businesses & Customers Win Largest national distribution platform in Australia For personal use only • Largest independent (multi-brand) tyre and wheel importer in Australia & New Zealand. • National sales and distribution platform across Australia and New Zealand. • 3 mill
Slide 8: Renowned Business Brands
Renowned Business Brands Each focusing on a distinct segment of a $5.5 billion industry For personal use only To be Australia’s preferred To ensure truck & bus tyre To lift customers to To keep truck and bus . tyre wholesaler To enable inspiring wheel performance, with predictable new heights in fle
Slide 9: Performance Initiatives
Performance Initiatives Project milestones achieved, organising to deliver better customer experiences For personal use only • Black Rubber expands commercial tyre operations in Australia, rebranding four large retail hubs as Michelin Service Centres. • Completion of the transfer of remaining Group
Slide 10: Dunlop Distribution
For personal use only Dunlop Distribution 10
Slide 11: Dunlop - an iconic Australian brand
Dunlop - an iconic Australian brand Leading original equipment tyre, performance heritage, ranked 3rd to 4th for consumer brand awareness 1888 1893 1900 1900 - 2006 2006 - 2023 2024 For personal use only John Boyd The Australian Dunlop tyres The company continues Goodyear buys out Dunlop “comes Dunl
Slide 12: Dunlop enhances the Australian wholesale businesses portfolio
Dunlop enhances the Australian wholesale businesses portfolio Tyre segmentation based on vehicle type (verticals) NTAW Australian Wholesale Brand Map For personal use only CONSUMER CAR/LT CONSUMER 4WD TRUCK & BUS AG OTR • Dunlop fills a previous gap for NTAW in the premium Car & Light Truck and Truc
Slide 13: Dunlop - transforming NTAW's business operations
Dunlop - transforming NTAW’s business operations Emphasis on premium brand position, fitting into existing warehouses, expanded sales team, working capital requirement For personal use only • NTAW’s go-to-market strategy will reinforce Dunlop’s premium brand position with less discounting to improve
Slide 14: Dunlop - expected to add $85-95 million in revenue per annum
Dunlop - expected to add $85-95 million in revenue per annum Emphasis on premium brand position, fitting into existing warehouses, expanded sales team, working capital requirement For personal use only • Trading within the new single entity will result in more collaboration between these teams to gr
Slide 15: Financial Results
For personal use only Financial Results 15
Slide 16: Results Summary
Results Summary NTAW reported revenue of $264.9 million and Operating EBITDA of $19.7 million $'000 1H24 1H23 Key Operating Metrics 1H24 1H23 Sales revenue 264,853 295,251 For personal use only Cost of goods sold (182,564) (215,181) Gross profit margin 31.1% 27.1% Gross profit 82,289 80,070 Operatin
Slide 17: Balance Sheet
Balance Sheet Solid balance sheet supporting present working capital needs $'000 Dec-23 June-23 Current assets Net Debt at 30 June 2023 of $63.1 million. For personal use only Cash and cash equivalents 31,202 33,040 Receivables 66,169 74,593 Net Debt to LTM Operating EBITDA of 1.5 times. Inventory 1
Slide 18: Capital Structure
Capital Structure Dividends remain deferred preserving cash for Dunlop working capital requirements Dividend History For personal use only • There were 134,136,094 shares on issue at 31 December 2023. 9.0 • No interim dividend will be declared to preserve cash for Dunlop’s working capital requiremen
Slide 19: Outlook
For personal use only Outlook 19
Slide 20: Outlook
Outlook Completing projects and launching Dunlop in 4Q24 will lead to steady business growth for NTAW • Leading indicators for commercial tyre demand (goods movements and agriculture forecasts) are positive, although NTAW remains wary of the potential impact of high interest rates and inflation on c
Slide 21: Important Information and Disclaimer
Important Information and Disclaimer This presentation may contain certain unaudited financial information in relation to National Tyre & Wheel Limited (“NTAW” or “Company” or For personal use only “Group”). As such, it has not been subject to an audit or an audit process or otherwise independently
National Tyre & Wheel — H1 FY2024 Earnings Presentation on 6ix