Tourism Holdings Limited · NZX:THL
Tourism — H1 FY2018 Earnings Presentation
33 slides from Tourism's earnings presentation, Feb 22, 2018
Slide 1: Growing Globally – FY18 Interim Results Presentation
GROWING GLOBALLY FY–2018 INTERIM RESULTS PRESENTATION: 22 FEBRUARY 2018
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements and projections. These reflect thl’s current expectations, based on what it thinks are reasonable assumptions. The statements are based on information available to thl at the date of this presentation and are not guarantees or predicti
Slide 3: Important Points to Note
Important Points to Note El Monte RV Acquisition • The purchase of the El Monte RV Rental and Sales business in the USA was effective from 1 January 2017, so there is no comparative result for the year ended 31 December 2016. • Throughout this presentation we have shown the impact of the El Monte RV
Slide 4: Financial Highlights H1 FY18
Financial Highlights H1 FY18 Earnings before Net profit after tax* Revenue interest and tax $209M Up by 43% $33.3M $22.8M Up by 102% Up by 78% Earnings per share* Interim dividend 18.9c 13cps (50% imputed) Up by 95% Up from 10cps (50% imputed) FY18: Interim Results Presentation * Including $1.8M non
Slide 5: Financial Highlights H1 FY18
Financial Highlights H1 FY18 • Strong growth, including first peak season NZD $M FY18 H1 FY17 H1 VAR VAR % El Monte RV result, which contributed EBIT of $9.5M. Operating revenue 209.1 146.0 63.1 43% • Rentals NZ has, again, been a standout performer, with EBIT Earnings before 33.3 18.7 14.6 78% grow
Slide 6: Key Achievements H1 FY18
Key Achievements H1 FY18 Strategic Imperatives Continue to build the base business • Positive growth in the base business: • EBIT, excluding El Monte RV, up 25%. • El Monte RV ahead of expectations. Leverage the RV eco-system • TH2 global joint venture with Thor announced 16 February. JV will use di
Slide 7: TH2 Key Highlights
TH2 Key Highlights 1 ● On 16 February 2018, thl entered into an agreement to establish a 50:50 joint venture with Thor Industries, the leading RV manufacturer globally2, to create a digital platform for RV owners to improve every aspect of RV ownership, including trip planning and booking, remote mo
Slide 8: Balance Sheet
Balance Sheet • Net debt, at 31 December 2017, of $178M, is level with June 2017 Net Debt Debt : EBITDA1 and below previous guidance of $200M. It is $75M higher than December 2016 due to the acquisition of El Monte RV. • We continue to remain comfortable with debt levels and the $178M 1.7X debt:EBIT
Slide 9: Dividend
Dividend • Interim dividend is 50% imputed. • Dividend will be eligible for the Dividend Reinvestment Plan, with an issue price at a 2% discount from the five day volume weighted share price after the record date. • Record date and DRP election date: 4 April 2018. • Payment date: 16 April 2018. Divi
Slide 10: Divisional Review
DIVISIONAL REVIEW FY18: Interim Results Presentation 10
Slide 11: Divisional EBIT
Divisional EBIT 6 Months to December $M FY18 FY17 Var Var % Revenue by Geography thl Rentals New Zealand 6.6 3.7 2.9 78% 27% Australia 6.1 5.6 0.5 9% USA - Road Bear 9.3 9.6 (0.3) (3%) USA - El Monte RV 9.5 - 9.5 44% 9% Total Rentals 31.5 18.9 12.6 66% 20% Tourism Group 4.7 4.3 0.4 9% Rentals NZ Tou
Slide 12: Rentals NZ
Rentals NZ Continued strong performance Half Year • Another very strong result, driven by a NZD $M FY18 FY17 VAR % 16% increase in rental income, with Rental income 35.7 30.8 4.9 16% approximately a 3% increase from the Sale of goods 21.1 18.6 2.5 13% Lions’ Tour in July (yield related). Costs (50.2
Slide 13: Rentals Australia
Rentals Australia Incremental progress Half Year NZD $M FY18 FY17 VAR % • 4% growth in AUD EBIT. Rental income 34.2 30.3 3.9 13% • 4WD season has dragged on the H1 Sale of goods 7.5 5.9 1.6 27% results. The utilisation and resulting ROFE Costs (35.6) (30.6) (5.0) (16%) on the 4WD fleet was below exp
Slide 14: Rentals USA – Road Bear
Rentals USA – Road Bear A solid result Half Year • A flat result in USD after additional costs of NZD $M FY18 FY17 VAR % USD$0.5M to settle a legal issue. Rental income 18.6 17.8 0.8 4% Sale of goods 29.8 24.7 5.1 21% • NZD$0.3M negative impact of FX rates compared with the prior year. Costs (39.1)
Slide 15: Rentals USA – El Monte RV
Rentals USA – El Monte RV Positive progress to plan Half Year1 NZD $M FY18 • The result, overall, is ahead of our targeted USD$6.6M for the calendar year 2017 (actual Rental income 29.0 was USD$7.2M). Sale of goods 14.7 • The travel agent market has responded well to Costs (34.2) the newer vehicle p
Slide 16: El Monte RV Scorecard Update
El Monte RV Scorecard Update An update on the goals we set in December 2016 Utilisation Goal: Increase utilisation Utilisation for H1 FY18 has improved by 20% over the prior year. ROFE Goal: Achieve 19% ROFE by FY20 EBIT ahead of forecast. Funds employed below forecast. On track Goal: Property syner
Slide 17: Tourism
Tourism Mixed results Half Year - Waitomo up, Kiwi Experience down NZD $M FY18 FY17 VAR % • Waitomo has continued to perform well. Visitor growth Revenue 18.3 17.7 0.6 3% has exceeded overall inbound visitor growth (5%) for H1. The Chinese, Korean and UK markets have Costs (13.6) (13.4) (0.2) (1%) s
Slide 18: Equity Investments
Equity Investments Half Year NZD $M FY18 FY17 VAR % Action Manufacturing 1.73 1.24 0.49 40% Just Go 0.28 0.34 (0.06) (17%) Roadtrippers (1.05) (0.17) (0.88) 517% Total 0.96 1.41 (0.45) (32%) Equity Investment Reporting Just go (49%) • These part-owned businesses are not controlled by thl and are • R
Slide 19: Group Support Services & Other
Group Support Services & Other • This segment includes Group Support Services and Half Year Mighway in FY18, and GeoZone in FY17. NZD $M FY18 FY17 VAR % • The Mighway pre-tax loss for the half year was $1.4M (FY17 $1.0M). This reflects the ongoing development Revenue 0.2 0.3 (0.1) (36%) of this busi
Slide 20: FY18 Focus
FY18 FOCUS FY18: Interim Results Presentation 20
Slide 21: Key Focus for FY18 - Progress
Key Focus for FY18 - Progress FOCUS UPDATE On track. H1 FY18 EBIT growth excluding El Monte RV was Core Business Leverage growth opportunities, continue flex fleet & operational focus. 25%. Progress the plan to integrate the business, renew the fleet and El Monte RV proposition and lift ROFE. Progre
Slide 22: Sustainability Initiatives
Sustainability Initiatives EV prototypes under way | EECA funding granted | Kiwipledge launched | Mauri assessment completed • Initial Mauri model community assessment in Waitomo completed Emissions & • Energy and water audits completed in NZ. Positive in December 2017, awaiting test results Q1 2018
Slide 23: Outlook
OUTLOOK FY18: Interim Results Presentation 23
Slide 24: Capital Expenditure FY18
Capital Expenditure FY18 Gross CAPEX $M Fleet Sales Proceeds $M Net CAPEX $M 190 171 153 59 126 112 45 92 81 37 73 61 62 30 12 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 forecast forecast forecast • Gross CAPEX for FY18 forecast at approximately $190M, down $10M on pr
Slide 25: FY18 Full Year Guidance
FY18 Full Year Guidance • Previous guidance for FY18 was in the range of $36M-$39M. This has been updated to $36M-$40M before non-recurring items. • There are two non-recurring items that will impact FY18: • The change in measurement of deferred tax arising from the change in US tax rates of NZD$1.8
Slide 26: Supporting Analysis
SUPPORTING ANALYSIS FY18: Interim Results Presentation 26
Slide 27: Income Statement Summary
Income Statement Summary 6 Months to December $M FY18 FY17 Var Var % Revenue from services 136.0 96.8 39.2 40% Revenue from sale of goods 73.1 49.2 23.9 49% Total revenue 209.1 146.0 63.1 43% Costs 153.2 110.2 (43.0) (39%) EBITDA 55.9 35.8 20.1 56% Depreciation & amortisation 22.6 17.1 (5.5) (32%) E
Slide 28: Revenue
Revenue 6 Months to December $M FY18 FY17 Var Var % thl Rentals - Rental Revenue New Zealand 35.7 30.8 4.9 16% Australia 34.2 30.3 3.9 13% USA - Road Bear 18.6 17.8 0.8 5% USA - El Monte RV 29.0 29.0 n/a 117.6 78.9 38.7 49% thl Rentals - Sale of Goods New Zealand 21.1 18.6 2.5 13% Australia 7.5 5.9
Slide 29: Divisional Review
Divisional Review 6 Months Ended 31 December 2017 6 Months Ended 31 December 2016 DIVISIONAL AVE FUNDS OPERATING DIVISIONAL AVE FUNDS OPERATING 1 $M REVENUE EBIT EMPLOYED CASHFLOW REVENUE EBIT EMPLOYED CASHFLOW* Rentals New Zealand 56.8 6.6 137.8 (30.3) 49.4 3.7 125.0 (23.5) Rentals Australia 41.7 6
Slide 30: EBITDA
EBITDA 6 Months to December $M FY18 FY17 Var Var % EBIT 33.3 18.7 14.6 78% Add back non-cash items: Amortisation 0.7 0.8 (0.1) Depreciation 21.9 16.3 5.6 EBITDA 55.9 35.8 20.1 56% FY18: Interim Results Presentation 30
Slide 31: Balance Sheet
Balance Sheet As at $M Dec 17 Dec 16 Var Equity 212.2 174.7 37.5 Non current liabilities 194.5 127.9 66.6 Current liabilities 99.0 61.8 37.2 Total source of funds 505.7 364.4 141.3 Intangible assets and goodwill 42.2 20.2 22.0 Investments in associates and joint ventures 10.5 16.2 (5.7) Property, pl
Slide 32: Gain on Vehicle Sales and Gross Profit
Gain on Vehicle Sales and Gross Profit 6 Months to December $M FY18 FY17 Var Var % Gain on sales of motorhome fleet before selling costs 9.9 7.2 2.7 38% Vehicle sales costs (warranty only)1 0.6 0.2 0.4 200% Gain on sales of motorhome fleet after selling costs 9.3 7.1 2.2 31% Gross profit on non-flee
Slide 33: End
END FY18: Interim Results Presentation 33