Motorcycle Holdings Ltd. · ASX:MTO
Motorcycle — Investor Presentation (August 2023)
26 slides from Motorcycle's investor presentation, Aug 29, 2023
Slide 1: Investor Presentation
MotorCycle INVESTOR PRESENTATION
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. SUMMARY HIGHLIGHTS 2. FINANCIAL RESULTS 3. OPERATIONAL PERFORMANCE 4. FY2024 OUTLOOK 3
Slide 4: Summary Highlights
1) 4) SUMMARY HIGHLIGHTS
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS STATUTORY REVENUE LIKE-FOR-LIKE REVENUE 1 GROSS PROFIT UNDERLYING EBITDA 25% to 1% to 17% to 13% to $580.2m $452.7m $154.6m $55.3m NPAT NET ASSETS FINAL DIVIDEND PER SHARE 0% to 27% to 12c | 20c $23.0m $197.6m fully franked full year 1. Excludes from both years: Mojo, Forbes and
Slide 6: Operational Highlights
OPERATIONAL HIGHLIGHTS 1 Strong topline growth boosted by recent 2 Industry leadership and strength of business model confirmed acquisitions with increased national market share to 14.3% 3 Result achieved against backdrop of rising interest 4 Mojo Group acquisition provides increased diversification
Slide 7: Financial Results
FINANCIAL RESULTS 7
Slide 8: Profit Results
PROFIT RESULTS Overview of Results ($’000) 30-Jun-23 30-Jun-22 Change % Total income 580,238 462,572 25% Cost of sales (425,663) (330,189) 29% Gross profit 154,575 132,383 17% Gross profit margin (%) 27% 29% (2%) Employee benefits expense (69,322) (62,080) 12% Occupancy expense (3,419) (2,949) 16% O
Slide 9: Like-for-Like Results
LIKE-FOR-LIKE RESULTS1 Overview of Results ($’000) 30-Jun-23 30-Jun-22 Change % Total income 452,700 454,654 (1%) Cost of sales (329,122) (324,687) 1% Gross profit 123,578 129,967 (5%) Gross profit margin (%)1 27% 29% (2%) Employee benefits expense (64,130) (61,073) 5% Occupancy expense (2,997) (2,8
Slide 10: Balance Sheet
BALANCE SHEET ($m) as at 30-Jun-23 30-Jun-22 Change % Cash and cash equivalents 24.7 3.9 533% Trade and other receivables 12.1 7.1 70% Inventories 155.8 107.6 45% Plant and equipment 13.4 11.8 14% Lease right of use assets 48.2 45.8 5% Goodwill and intangibles 147.5 94.8 56% Investments 6.8 6.4 (6%)
Slide 11: Market Value
MARKET VALUE Results for the year ended 30-Jun-23 30-Jun-22 Change % Closing share price ($) 1.45 2.08 (30%) Shares on issue (number) 73,677,259 61,706,710 19% Dividends per share LTM 20 20 – Basic earnings per share 33.1 37.5 (12%) Price to earnings ratio LTM 4.4 5.6 (21%) Dividend yield 13.80% 9.6
Slide 12: Revenue Growth
REVENUE GROWTH Revenue growth ($m) 700 580 600 5 year CAGR 14% 500 463 434 302 400 364 302 325 226 216 300 186 152 162 200 278 218 237 100 173 178 140 0 2018 2019 2020 2021 2022 2023 First half Second half MOTORCYCLE HOLDINGS 12
Slide 13: Underlying EBITDA and Margin
UNDERLYING EBITDA AND MARGIN AASB16 EBITDA before acquisition expenses and depreciation and interest on ROU assets Underlying EBITDA ($m) Underlying EBITDA Margin (%) 60 14 55.5 55.3 49.1 12 12.8 50 23.2 10 10.6 38.2 10.5 40 30.4 23.3 9.5 8 30 23 6 20 32.3 4 25.8 24.9 10 2 15.2 0 0 2020 2021 2022 20
Slide 14: NPAT Results
NPAT RESULTS NPAT ($m) 30 28.3 25 23.1 23.0 11.1 20 10.5 15.2 12.5 15 10 8.5 8.3 10.4 17.2 4.6 3.1 12.6 5 10.5 5.2 4.8 3.9 0 2018 2019 2020* 2021* 2022 2023 First half Second half * includes JobKeeper payment MOTORCYCLE HOLDINGS 14
Slide 15: Diversified Earnings
DIVERSIFIED EARNINGS Gross Profit by Department ($’000) 35,000 1% 30,567 30,743 8% 30,000 1% 26,275 25,000 13% 24,364 22,153 21,930 21,838 19,859 15% 8% 20,000 17,475 17,255 15,759 15,228 14,541 15,000 10,000 5,000 0 New vehicles – retail New vehicles – wholesale Used vehicles Parts and accessories
Slide 16: Operational Performance
OPERATIONAL PERFORMANCE 16
Slide 17: New Motorcycle Sale Units
NEW MOTORCYCLE SALE UNITS Strong MTO sales performance vs industry Industry: decreased 17% in FY23 MTO: decreased 2% in FY23 140,000 16,000 14,039 13,751 116,619 13,264 120,000 111,927 14,000 6,340 101,114 99,581 48,929 6,654 55,840 96,186 12,000 11,013 6,494 100,000 89,595 47,942 52,839 45,085 9,57
Slide 18: Used Motorcycle Sale Units
USED MOTORCYCLE SALE UNITS MTO: decreased 3% in FY23 12,000 10,082 10,374 10,024 10,000 9,068 9,430 5,014 5,088 4,544 8,179 4,733 4,366 8,000 4,256 6,000 5,360 5,480 4,994 4,000 4,702 4,697 3,923 2,000 0 2018 2019 2020 2021 2022 2023 First half Second half MOTORCYCLE HOLDINGS 18
Slide 19: Retail
RETAIL • Overall solid performance despite macro-economic headwinds. • Moderating demand for new and used motorcycles continuing feature of second half. • Retail parts and accessories sales remained stable. MOTORCYCLE HOLDINGS 19
Slide 20: Mojo Group Acquisition Update
MOJO GROUP ACQUISITION UPDATE • MTO management took operational control of Mojo Group on 31 October 2022. • The integration of Mojo has been performing ahead of management’s expectations. • Synergies between Mojo and our retail network are being pursued. • Mojo has been taking advantage of market co
Slide 21: The Mojo Advantage
THE MOJO ADVANTAGE • Increased scale of the MTO business • Revenue increased 25% largely due to the acquisition. • Increased geographic footprint and diversification • Mojo is a national wholesaler and distributor. • Diversification to motorcycle importation and distribution. • Greater opportunities
Slide 22: Wholesale Accessories
• Wholesale parts and accessories produced WHOLESALE satisfactory performance. ACCESSORIES • Supply chain delays have moderated and inventory normalised. • Management continue to focus on disciplined cost management. Operating efficiencies expected with new Warehouse Management System. • B2B digital
Slide 23: Finance JV
FINANCE JV • 50% share contributed profit of $1.0m, down 19% on pcp. • Increased cost of borrowing leading to margin pressure. • Delinquencies satisfactory. MOTORCYCLE HOLDINGS 23
Slide 24: FY2024 Outlook
FY2024 OUTLOOK 24
Slide 25: FY24 Outlook
FY24 OUTLOOK Rising interest rates and cost of Higher cost of doing Focus on existing business living pressures expected to business will continue to be improvement with continue to impact trading a feature of current market opportunities in used bikes, dynamics, with cost control a WMS implementati
Slide 26: Thank you
Thank you MOTORCYCLE HOLDINGS LIMITED 68 Moss Street Slacks Creek QLD 4127 www.mcholdings.com.au
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