Maxiparts Limited · ASX:MXI
Maxiparts — MaxiTRANS Industries — Shareholder Meeting (October 2017)
22 slides from Maxiparts's shareholder meeting presentation, Oct 20, 2017
Slide 1: Built on Pride – Year Ended 30th June 2017
For personal use only BUILT ON PRIDE Year Ended 30th June 2017
Slide 2: Strategic Summary
For personal use only STRATEGIC SUMMARY
Slide 3: Corporate Strategy Review
CORPORATE STRATEGY REVIEW For personal use only Growth Pathways – aspiring to double earnings over five years • Short Term • Drive operational excellence and efficiency from the current business model through a group-wide ERP implementation, further supply chain cost reductions and a more systemic a
Slide 4: Built on Pride – Year Ended 30th June 2017
For personal use only BUILT ON PRIDE Year Ended 30th June 2017
Slide 5: Key Themes from FY17 Result
KEY THEMES FROM FY17 RESULT For personal use only • MaxiTRANS delivers strong FY17 result • Underlying NPAT of $10.7M –22% up on prior year* • Final year dividend of 1.5 cents per share fully- franked – total dividend 3.5 cents per share fully franked • Segment Profit • Trailers down 16% - Australia
Slide 6: FY17 - Highlights
For personal use only FY17 - HIGHLIGHTS
Slide 7: Financial Overview
FINANCIAL OVERVIEW For personal use only A$M FY16 FY17 % Change Revenue 340.2 340.1 (0.03) EBITDA 19.5 21.4 9.7 EBIT 14.5 16.8 15.9 NPBT 12.1 14.5 19.8 NPAT (Underlying) 8.7 10.7 22.9 Significant Items (3.5) - N/A Reported NPAT 5.2 10.7 105.8 ROIC (%) 6.17 6.61 7.1 Net Debt 32.3 41.6 28.8
Slide 8: Earnings Bridge – Underlying NPAT Up 22%
EARNINGS BRIDGE – UNDERLYING NPAT UP 22% For personal use only Underlying NPAT - FY17 vs FY16 • Gross margin $'000 improvement driven by 14,000 improved MaxiPARTS 12,000 $1,256 ($738) $10,695 margins 10,000 $1,389 • Overhead improvement $8,752 largely due to one-off $36 8,000 costs in prior year and
Slide 9: Operating Cashflow
OPERATING CASHFLOW For personal use only Operating Cashflow - FY17 vs FY16 • 2016 working capital $'000 movement driven by $1,870 significant end of year 25,000 $21,196 ($8,198) creditors and debtors 20,000 benefit ($10,337) • $8.2m reflects 15,000 reversion to normal debtor / creditor levels 10,000
Slide 10: Cashflow – Working Capital Movement
CASHFLOW – WORKING CAPITAL MOVEMENT For personal use only Working Capital movement - FY17 • Inventory increase as a $'000 result of: • Raw materials / WIP due to increased build $4,663.00 CREDITORS rate ($4.8m) • Customer units built but not delivered at ($10,811.00) INVENTORY 30/6 ($1.9m) • Stock u
Slide 11: Segment Earnings – Trailers
SEGMENT EARNINGS – TRAILERS For personal use only A$M FY16 FY17 % Change • Australian trailer business revenue Revenue 235.2 233.4 (0.8) improved 2.6%, more than offset by NZ NPBT 10.9 9.1 (16.5) revenue decline of 27% NPBT Margin % 4.6 3.9 (15.2) • Gross margins slightly below prior year due to hig
Slide 12: Freighter
FREIGHTER For personal use only • Unit sales down 8% after beginning the year with a small order bank • Continued low consumer confidence drove a consistently low order intake in H1 FY17 • Order intake improved in H2, partly due to award-winning new product releases • Order banks finished 85% up on
Slide 13: Maxi-CUBE
MAXI-CUBE For personal use only • Unit sales down 34%, returning to normalised levels following above- average FY16 • Order banks up 284% following Coles Supermarkets order • Redeveloped Classic product announced at Brisbane Truck Show • Strong platform for further orders in FY18
Slide 14: Tippers
TIPPERS For personal use only • 74% increase in tipper sales driven by: • Good grain / agriculture season particularly in Victoria, Queensland and South Australia • Strong infrastructure construction activity in NSW and South Australia • Continued penetration into the waste sector in Victoria, Queen
Slide 15: New Zealand
NEW ZEALAND For personal use only • Significant profit decline due to: • Transport equipment regulation change affecting trailer dimensions not passed until February, 2017 – temporarily impacted Maxi-CUBE product • A number of grocery contract changes created uncertainty among operators thus delayin
Slide 16: Segment Earnings – Parts & Components
SEGMENT EARNINGS – PARTS & COMPONENTS For personal use only A$M FY16 FY17 % Change • Profit growth ahead of revenue driven Revenue 105.0 106.7 1.6 by MaxiPARTS trading margin NPBT 3.6 5.3 47.2 improvement NPBT Margin % 3.4 5.0 47.1
Slide 17: MaxiPARTS
MAXIPARTS For personal use only • Revenue growth from: • MaxiSTOCK customer inventory management system driving above 20% like-for-like customer increased sales and represents a growing proportion of total sales • Successful launch of AirMAX suspension system BUT • Offset by further softening in Que
Slide 18: Maxi-CUBE Tong Composites (China)
MAXI-CUBE TONG COMPOSITES (CHINA) For personal use only • Strong underlying result (on a constant currency basis): • 15% revenue increase • 12% profit improvement • Further expected top line growth in FY18 driven by: • New product launches • Improved product quality from upgraded skin line • However
Slide 19: Outlook
OUTLOOK For personal use only • Australian Trailer Business to benefit from Coles contract in first half • NZ Trailer Business expected to benefit from stable regulatory environment • Increase in build rate to record levels creates further opportunities to implement operational efficiency initiative
Slide 20: Behind Every Industry
BEHIND EVERY INDUSTRY _#ReIGHTER (EEE §«tusrvemsay — HamelexWhite \\SIMER. PHI. @MaxiPARTS
Slide 21: Proxy Voting
PROXY VOTING For personal use only Resolution 1 Resolution 2 Resolution 3 Resolution 4 Resolution 5 Remuneration Report Election of Director – Election of Director – Grant of Performance Amendment to Robert Wylie Joe Rizzo Rights to Managing Constitution – Director Dividend Reinvestment Plan Votes i
Slide 22: Behind Every Industry
BEHIND EVERY INDUSTRY _#ReIGHTER (EEE §«tusrvemsay — HamelexWhite \\SIMER. PHI. @MaxiPARTS
MaxiTRANS Industries — Shareholder Meeting (October 2017) on 6ix