Ntaw Holdings Limited. · ASX:NTD
Ntaw — Investor Presentation (September 2024)
32 slides from Ntaw's investor presentation, Sep 18, 2024
Slide 1: Investor Presentation
Investor Presentation 18 September 2024
Slide 2: Contents
Contents Item Page Summary 5 Capital Raising 6 NTAW Group 9 FY24 Review of Operations 16 FY24 Financial Results 20 Outlook 24 Key Risks 26 Appendix A – Summary of Underwriting Agreement 31 2
Slide 3: Important Notice
Important Notice Overview Not financial product advice This investor presentation (“Presentation”) has been prepared by NTAW Holdings Limited ACN 095 843 020 This Presentation does not constitute financial product or investment advice (nor tax, accounting or legal advice) (“NTAW” or “Company”) and i
Slide 4: Important Notice
Important Notice Future performance Disclaimer This Presentation contains certain “forward looking statements”. Forward looking statements can generally To the maximum extent permitted by law, no representation or warranty, express or implied, is made as to be identified by the use of forward lookin
Slide 5: Summary
Summary NTAW Holdings Group is a large tyre and wheel importer in Australia and New Zealand. The Group has about 850 employees going further to help more than 3,500 B2B customers win in a changing industry. The Group generated revenue of $533 million in FY24 by supporting long standing supplier rela
Slide 6: Capital Raising
NTAVW/ Capital Raising
Slide 7: Key details of the entitlement offer
Key details of the entitlement offer Structure and size ▪ NTAW Holdings is raising $12.41 million from an underwritten non-renounceable entitlement offer to existing shareholders. ▪ on a one (1) for four (4) basis. ▪ resulting in the issue of 33,534,024 new shares. Offer Price $0.37 cents per share.
Slide 8: Timetable
Timetable Event Date Announcement Date (including issuing ASX Release, Cleansing 18 September 2024 Notice and Appendix 3B prior to commencement of trading) Trading on ex-entitlement basis 20 September 2024 Record Date (7.00pm) 23 September 2024 Opening Date - Offer Booklet despatched 26 September 20
Slide 9: NTAW Group
NTAVW/ HOLDINGS LIMITED NTAW Group
Slide 10: Company Summary
Company Summary ASX : NTD Share price since IPO (Dec-17) Dividend History Share price (VWAP) 15 days to $0.3855 1.80 17 September 2024 1.60 9.0 Closing Price on 1.40 $0.3750 8.0 17 September 2024 1.20 1.00 Shares on issue 134,136,094 7.0 $ 0.80 0.60 6.0 Market Capitalisation on cents per share $50.3
Slide 11: Key People
Key People Murray Boyte Peter Ludemann Chris Hummer Jason Lamb Warwick Hay Chairman Managing Director CEO Executive Director CFO COO Mr Boyte has over 35 Mr Ludemann joined the Mr. Hummer headed a Mr Lamb is the Chief (Commencing in years' experience in Group as a director in roadside breakdown Fina
Slide 12: Australian Wholesale Businesses
Australian Wholesale Businesses 12
Slide 13: ANZ Commercial Retail & NZ Wholesale
ANZ Commercial Retail & NZ Wholesale Commercial Retail – Australia and New Zealand New Zealand Wholesale 13
Slide 14: Large scale, diversified by channel
Large scale, diversified by channel The diagram below illustrates the diverse nature of the NTAW Group businesses – serving different types of customers in tyre segments defined by tyre applications and buying behaviour. NTAW Group Wholesale Distribution Footprint Australia & New Zealand 14
Slide 15: Revenue segmentation – channel & geography
Revenue segmentation – channel & geography FY24 Channel Revenue Segments FY24 Geographic Revenue Segments NTAW Distribution Centre in Brisbane NTAW Distribution Centre in Melbourne 15
Slide 16: FY24 Review of Operations
NTAVW/ HOLDINGS LIMITED FY24 Review of Operations
Slide 17: Consolidating a leading position in the tyre wholesale sector
Consolidating a leading position in the tyre wholesale sector ▪ In September 2023, Goodyear announced its intention to cease its wholesale distribution and retail store ownership businesses in Australia. At the same time, the Group announced it had entered into Agreements to distribute the Dunlop br
Slide 18: NTAW offers an enhanced customer experience
NTAW offers an enhanced customer experience ▪ Dunlop is an iconic Australian brand. ▪ Dunlop fills the premium consumer tyre gap in the NTAW portfolio. ▪ Distribution introduces NTAW to new customers, including a network of Dunlop ▪ The T4U brand rationalisation has removed substitutable products, S
Slide 19: Truck and bus tyre sales growth
Truck and bus tyre sales growth ▪ Black Rubber commenced in WA in 2014 and is in the process of expanding its operations to other parts of Australia. ▪ Black Rubber operates seven commercial retail tyre stores, focussing on supplying truck and bus radial (TBR) tyres to fleet owners. Black Rubber com
Slide 20: FY24 Financial Results
NTAVW/ HOLDINGS LIMITED FY 24 Financial Results
Slide 21: Gross profit improvement
Gross profit improvement FY24 Operating EBITDA $42.3 million (FY23: $38.8 million) ▪ FY24 revenue down from FY23 as the Group reduced the number of brands sold. Operating EBITDA ▪ However, FY24 gross profit and margin were up on FY23 due to changes to product mix, lower supplier prices and lower inb
Slide 22: FY24 Results Summary
FY24 Results Summary Note: NPATA includes non-recurring and abnormal expenses of $2.4 million (FY23:$2.6 million). After adjusting for these expenses, FY24 Operating EBITDA was $42.3 million, (FY23: $38.8 million) Operating NPATA was $6.1 million (FY23: $8.0m) and Operating NPAT was $3.6 million (FY
Slide 23: FY24 Balance Sheet
FY24 Balance Sheet Net Debt at 30 June 2024 of $52.2 million. Net Debt to Operating EBITDA of 1.2 times. Net Debt to Equity + Debt ratio of 25.0%. Comments ▪ On 30 June 2024, NTAW reported total assets of $413.1 million and net assets of $117.3 million, being $0.87 per share. ▪ NTAW’s gross debt pos
Slide 24: Outlook
NTAVW/ Outlook
Slide 25: Outlook
Outlook ▪ The Group is forecasting sales growth having regard to consumer sentiment and low growth economies expected in Australia and New Zealand, and careful management of discretionary costs. ▪ Revenue growth is expected from: - full year of Dunlop sales in FY25 (3 months in FY24); - the sale of
Slide 26: Key Risks
Key Risks 26
Slide 27: Key Risks
Key Risks Prices of raw materials used in the manufacture of tyres as well as shipping costs can be volatile and are affected by supply and demand, both globally and regionally. Macroeconomic and geopolitical uncertainties can also affect the supply of, and demand for, the Group’s products. Governme
Slide 28: Key Risks
Key Risks A significant proportion of the Group’s costs and expenses are transacted in foreign currencies. Adverse movements between the Australian Dollar, New Zealand Dollar and South African Rand against the US Dollar increases the price at which the Group acquires its trading stock and result in
Slide 29: Key Risks
Key Risks The tyre and wheel wholesale market is highly competitive. Competition is based on factors including price, service, quality, performance standards, range and the ability to provide customers with an appropriate range of quality products in a timely manner. Competition risk A failure by th
Slide 30: Key Risks
Key Risks NTAW makes no guarantee that there will be an active market in NTAW (ASX: NTD) shares listed on the ASX. There may be relatively few potential buyers or sellers of shares on the ASX at any time. This may increase the volatility of the market price of NTAW shares. It Trading may be illiquid
Slide 31: Appendix A – Summary of Underwriting Agreement
Appendix A Summary of Underwriting Agreement 31
Slide 32: Summary of Underwriting Agreement
Summary of Underwriting Agreement The Company has entered into an underwriting agreement with Exldata Pty Ltd ACN 095 080 041 (the • the Company withdraws the Entitlement Offer or is unable to issue the new shares on the allotment Underwriter) on 17 September 2024 (Underwriting Agreement) under whic
Ntaw Holdings — Investor Presentation (September 2024) on 6ix