Tourism Holdings Limited · NZX:THL
Tourism — Investor Presentation (October 2014)
27 slides from Tourism's investor presentation, October 2014
Slide 1: Investor Presentation Tourism Holdings Limited
Investor Presentation Tourism Holdings Limited October 2014 – Presented to Australian Fund Managers
Slide 2: Customer Proposition
“creating unforgettable holiday experiences”
Slide 3: thl today
thi today Cth Self drive experiences New Zealand Australia U.S.A Design & Guided manufacturing experiences New Zealand New Zealand Australia Cth
Slide 4: International Business
INTERNATIONAL BUSINESS • NZSX listed since 1986 • Market Cap circa $160m • Operations in NZ, Australia, USA. Franchise in South Africa • Top 50 shareholders own 73% • Over 4,000 investors • Gross dividend yield 10% • Improvement in ROFE from 5.2% in FY13 to 9.6% in FY14 • 3,900 vehicles – Over $200m
Slide 5: FY2009 - FY2014
FY2009 - FY2014 FY09 FY11 FY13 GFC Impacts. Road Bear (USA) purchased. NZ merger and New purpose - AU and NZ experience industry consolidation. ‘Unforgettable holiday demand decline. Australian fleet experiences’. New New vehicle build cost downsized vehicle build design lowered commences. Manufactu
Slide 6: World Travel Trends
WORLD TRAVEL TRENDS • Travelling is a global mega-trend • Modest growth from the developed world – higher travel frequency • Fast growth from emerging markets – ‘new world middle class’ to double by 2030 = 1.5 billion more middle class people eager to travel around the world • Travel from Asia, Midd
Slide 7: Rentals Business Model – Build Rent Sell
RENTALS BUSINESS MODEL – BUILD RENT SELL FOCUS ON MAXIMISING VALUE OVER TOTAL LIFE OF VEHICLE BUILD / BUY RENT SELL Model • Build well designed • Maximise the rental returns • Create further value in the vehicles to robust from the vehicle fleet. ownership market with rental standards. Depreciate ve
Slide 8: Meeting Our Commitments - 2013-14
MEETING OUR COMMITMENTS - 2013-14 Commitment Outcome Deliver NPAT above $10.5M Achieved $11.1M Reduce debt to sub $90M from $120M Achieved $79M (plus Line of Credit for manufacturing facility of $6M) Address Australia Cost Structure Achieve respectable ROFE in FY15 Delivered 2 H run rate to achi
Slide 9: FY14 Profit Bridge
FY14 PROFIT BRIDGE ae: SM m 14.6 10 EBIT FY13 Rentals NZ Rentals Aus Rentals USA TourismGroup Group Services EBIT FY14 Cth
Slide 10: Current Direction
CURRENT DIRECTION Summarized by Positive Change: • Industry has been consolidated in NZ and AU • Debt reduction has been ahead of targets • Turnaround on track and underlying business model improving Why and what's next … • New blood and focus • Strategic decisions delivering to plan • Market recove
Slide 11: Financial Strength
FINANCIAL STRENGTH NET DEBT • Business Metrics broadly aligned to Moody’s Baa/S&P BBB grade rating or above. • Debt levels were increased to fund purchase of United and KEA in 2012. • Debt levels reduced as fleet has been downsized to match demand. To be maintained below Ratio June 13 June 14 Debt:E
Slide 12: Rentals New Zealand
AUCKLAND CHRISTCHURCH QUEENSTOWN Chl
Slide 13: Business Summary: Rentals NZ
BUSINESS SUMMARY: Rentals NZ Financial FY13 FY14 r Current Focus % thl EBIT 38% 33% (5%) Lifting ROFE to an acceptable return Fleet Size 2,210 2,019 (9%) Further downsize of fleet to lift ROFE EBIT $M 5.5 7.4 35% Business simplification underway Funds Employed $M 128 111 (13%) Operational im
Slide 14: Rentals Australia
RENTALS AUSTRALIA © DARWIN ® CAIRNS e BROOME e ALICE SPRINGS © BRISBANE PERTH® ADELAIDE® e SYDNEY © MELBOURNE HOBART ®
Slide 15: Business Summary: Rentals AU
BUSINESS SUMMARY: Rentals AU Current Focus Financial FY13 FY14 r Building on performance improvement % thl EBIT 9% 16% 7% commenced in H2 FY14 arising from Fleet Size 1,421 1,336 (6%) strategic review. Lifting ROFE to an EBIT $M 1.3 3.7 185% acceptable return Funds Employed $M 72 58 (19%) Applic
Slide 16: Rentals USA
RENTALS USA NEW YORK ® e SAN FRANCISCO LAS VEGAS e DENVER e LOS ANGELES ® ORLANDO
Slide 17: Business Summary: Rentals USA
BUSINESS SUMMARY: Rentals USA FINANCIAL FY13 FY14 r Current Focus % thl EBIT 45% 33% (8%) Transition of CEO to executive director role Fleet Size 541 537 (1%) and new CEO EBIT $M 6.5 7.6 17% Modest and stable growth in fleet Grow new Orlando site (2013) Funds Employed $M 34 30 (12%) Explore
Slide 18: RV Manufacturing Group (JV)
RV MANUFACTURING GROUP (JV)
Slide 19: Business Summary: RV Manufacturing Group (JV)
BUSINESS SUMMARY: RV Manufacturing Group (JV) Current Focus FINANCIAL FY13 FY14 r RVM • Production including new product: 4 berth thl share of JV earnings $M (1.4) 1.0 171% non toilet shower and 3 berth toilet shower van product. Net thl interest in JV 7.1 7.5 0.4 • Ongoing focus on lowering produ
Slide 20: Waitomo Glowworm Caves Visitor Centre
WAITOMO GLOWWORM CAVES VISITOR CENTRE AWARDS:
Slide 21: Kiwi Experience
KIWI EXPERIENCE
Slide 22: Business Summary: Tourism
BUSINESS SUMMARY: Tourism Current Focus Kiwi Experience Financial FY13 FY14 r • New fleet and efficiencies % thl EBIT 27% 29% 2% • New product development EBIT $M 4.0 6.6 66% • Growing the market Funds Employed $M 28 26 (7%) Waitomo Return on Funds Employed 14.3% 25.4% 11.1% • Gaining growth in
Slide 23: Executive Management
EXECUTIVE MANAGEMENT Grant Webster Mark Davis Grant Brady Keith Chilek Chief Executive Officer Chief Financial Officer Managing Director Chief Technology Officer RV Manufacturing Group Joining thl in August 2014, Keith Joining thl in 2005 as Chief Joining thl in February 2014, Operating Officer – At
Slide 24: Executive Management
EXECUTIVE MANAGEMENT Matt Harvey Mike Horne Kate Meldrum Daniel Schneider General Manager General Manager General Manager Group Revenue, CEO & President Australian Operations New Zealand Rentals Operations Brand & Customer Experience Road Bear RV Rentals & Sales Matt joined thl in April 2010 as Mike
Slide 25: Board of Directors
BOARD OF DIRECTORS Rob Campbell (Auckland) Chairman Chair, Market Disclosure Committee Independent Director appointed in May 2013. Appointed Chairman of thl in August 2013 and Chair of Market Disclosure Committee in April 2014. Rob has over 30 years’ experience in investment management and corporate
Slide 26: Board of Directors
BOARD OF DIRECTORS Kay Howe (Auckland) Non Independent Director appointed in October 2012. With a background in a variety of industries Kay entered into the tourism market in 1978 starting her first motorhome rental business as a small family operation. An industry pioneer, Kay is experienced in the
Slide 27: Creating unforgettable holidays
creating unforgettable holidays
Tourism Holdings — Investor Presentation (October 2014) on 6ix