Ntaw Holdings Limited. · ASX:NTD
Ntaw — National Tyre & Wheel — FY2023 Earnings Presentation
18 slides from Ntaw's earnings presentation, Aug 29, 2023
Slide 1: Financial Results Year ended 30 June 2023
For personal use only Financial Results Year ended 30 June 2023 29 August 2023
Slide 2: Agenda
Agenda For personal use only Item Page FY23 Highlights 3 Performance Initiatives 6 Financial Results 11 Outlook 16
Slide 3: FY23 Highlights
For personal use only FY23 Highlights
Slide 4: Executive Summary
Executive Summary Maintaining a diversified, scalable growth platform in a challenging environment • National Tyre & Wheel Limited (“NTAW” or “Group”) is the largest independent tyre & wheel importer and wholesale distributor in Australia and New Zealand. For personal use only • NTAW imports approxi
Slide 5: Financial Highlights
Financial Highlights 2H23 improvement after difficult operating conditions in 1H23 • FY23 Operating EBITDA (refer below) of $38.8 million (FY22: $44.9 million). For personal use only • FY23 EBIT (refer below) of $12.2 million (FY22: $19.6 million). • GP margins suffered in 1H23 and recovered in 2H23
Slide 6: Performance Initiatives
For personal use only Performance Initiatives
Slide 7: Going Further to Help our Businesses & Customers Win
Going Further to Help our Businesses & Customers Win Scale and diversification across channels, customers and products ✓ Improve customer service For personal use only ✓ Focus on building exclusive imported brands ✓ Continue to shift sourcing from USA to Asia ✓ Foster a culture of entrepreneurship ✓
Slide 8: Building Leading Brands
Building Leading Brands Moving towards exclusive brands in commercial and consumer vehicle verticals • Global tyre manufacturers produce 2.2bn tyres annually. The Australian tyre after- FY23 SUPPLIER MIX BY REVENUE For personal use only market is estimated to be 22m tyres per annum. Cooper family (E
Slide 9: Vision and Focus
Vision and Focus Raise customer service levels, build leading brands • NTAW’s vision is to “Go further to help our businesses & customers win” – reflecting: For personal use only - the entrepreneurial imperatives of the Group’s businesses and customers; - emphasis on customer service; and - a shift
Slide 10: Performance Initiatives
Performance Initiatives Response to 1H23 trading environment, performance initiatives in 2H23 In July 2023, the Group announced a partnership agreement had been reached with Michelin to: • facilitate a re-organisation of the commercial fleet activities of Black Rubber, Tyreright and Tyres4U; and For
Slide 11: Financial Results
For personal use only Financial Results
Slide 12: 2H23 – GP Recovery and Lower Costs
2H23 – GP Recovery and Lower Costs AU wholesale focussed on long term margin improvement Comments: For personal use only • 1H23 performance was adversely affected by supply side inflation (COGS and shipping costs). 2H23 improved as higher selling prices caught up with COGS and shipping costs fell. U
Slide 13: Results Summary
Results Summary NTAW reported revenue of $582.3 million and Operating EBITDA of $38.8 million Statement of Profit or Loss Key Operating Metrics FY23 FY22 $'000 FY23 FY22 For personal use only Gross profit margin 28.1% 28.5% Sales revenue 582,284 555,549 Operating costs as a % of revenue 21.9% 21.2%
Slide 14: Balance Sheet
Balance Sheet Solid balance sheet supporting working capital needs and future growth Statement of Financial Position $'000 June-23 June-22 Net Debt at 30 June 2023 of $60.2 million. For personal use only Current assets Net Debt to Equity + Debt ratio of 28.9%. Cash and cash equivalents 33,040 35,826
Slide 15: Capital Structure
Capital Structure Dividends deferred due to challenging trading environment For personal use only • There are 133,271,318 shares on issue at 30 June 2023. Dividend History • No final dividend will be declared based on the FY23 financial result. 9.0 • NTAW currently has $19.1 million franking credits
Slide 16: Outlook
For personal use only Outlook
Slide 17: Outlook
Outlook Improvement in financial performance expected in FY24 • NTAW assumes consumer tyre and wheel demand will drift downward in FY24 due to a low economic growth environment, resulting in some purchase For personal use only deferral and some shift to lower priced products. • Commercial demand is
Slide 18: Important Information and Disclaimer
Important Information and Disclaimer This presentation may contain certain unaudited financial information in relation to National Tyre & Wheel Limited (“Company”). As such, it has not been For personal use only subject to an audit or an audit process or otherwise independently verified. This presen