Slide 1: MaxiTRANS Industries Limited - FY18 Investor Presentation
For personal use only MaxiTRANS Industries Limited - FY18 Investor Presentation LEADING THE WAY Cover image: MaxiTRANS’ latest graduate intake
Slide 2: Leading our industry to become safer and more efficient
At MaxiTRANS, we are leading our industry to become safer and more efficient, so that our For personal use only customers can better deliver the needs of a nation Australia’s largest supplier of locally manufactured, high One of the largest quality engineered suppliers of truck and road transport tr
Slide 3: Two complementary and well positioned businesses
TWO COMPLEMENTARY AND WELL POSITIONED BUSINESSES For personal use only MaxiPARTS Differentiators Trailers Differentiators Parts 26% A national store footprint in Strong brand heritage Trailers 74% the right locations and reputation Unique technology enabled Broadest range of customer solutions produ
Slide 4: Trailers: a diverse portfolio of brands exposed to multiple segments of the economy
TRAILERS: A DIVERSE PORTFOLIO OF BRANDS EXPOSED TO MULTIPLE SEGMENTS OF THE ECONOMY For personal use only PRODUCT REVENUE CONTRIBUTION FROM NEW TRAILER SALES Bulk Transport (3 YEAR AVE) • Infrastructure • Housing Starts • Agriculture • Waste • Mining • Population Growth 28% 38% General Freight • Pop
Slide 5: MaxiPARTS: extensive range of parts/consumables and expertise
MAXIPARTS: EXTENSIVE RANGE OF PARTS/CONSUMABLES AND EXPERTISE • 20 locations nationally For personal use only • Portfolio includes trailer parts, after-market truck and engine parts / consumables • In excess of 180,000 products in the portfolio, including many leading brands, as well as specialty pr
Slide 6: FY18 result highlights
FY18 RESULT HIGHLIGHTS For personal use only • Result in line with guidance (May 2018) • Revenue up 20% to $409.3m • NPAT down 5.8% to $10.1m – impact of manufacturing efficiency in Q4 FY18, NZ warranty issues and poor China performance • Operating cashflow improved 345% to $19.7m with improved work
Slide 7: Financial overview
FINANCIAL OVERVIEW For personal use only A$M FY17 FY18 % Change Revenue 340.1 409.3 20.3 EBITDA 21.4 20.9 (2.3) D&A (4.6) (4.8) (4.3) EBIT 16.8 16.1 (4.2) Interest Expense (2.3) (2.5) 8.7 NPBT 14.5 13.7 (5.5) Tax (3.5) (3.6) (2.9) Non-Controlling Interest (0.3) 0.1 133.3 NPAT (Underlying) 10.7 10.1
Slide 8: Earnings bridge
EARNINGS BRIDGE For personal use only • Benefit of volume growth offset by gross margin decline (Coles volume at lower margin and Q4 manufacturing issues) and increased overheads • Overhead increase due to: • increased warranty costs (NZ), • selling costs associated with volume growth • depreciation
Slide 9: Cashflow
CASHFLOW For personal use only A$M FY17 FY18 % Change EBITDA 21.4 20.9 (2.3) • Strong operating cashflow used to fund Change in Working Capital (10.3) 4.5 143.7 significant capex program and dividends Other (6.7) (5.6) 16.4 Operating Cashflow 4.4 19.8 345.0 • High conversion rate of earnings to oper
Slide 10: Balance sheet – working capital
BALANCE SHEET – WORKING CAPITAL For personal use only * • Reduced inventory levels partially due to Coles working capital unwind but also improved supply chain integration between MaxiPARTS and the trailer operations Creditors / Deferred Revenue (manufacturing and service/repairs) • Improved debtor
Slide 11: Capex
CAPEX For personal use only • Significant investment in new IT systems (ERP and associated systems) over past 5 years due to wind down in FY19 • Manufacturing to go-live Q2 FY19 and rest of business H2 FY19 • Increased depreciation from FY19 • Operating benefits from combination of common systems an
Slide 12: Business unit performance
For personal use only BUSINESS UNIT PERFORMANCE
Slide 13: Segment earnings – MaxiPARTS
SEGMENT EARNINGS – MaxiPARTS For personal use only • Profit growth significantly ahead of revenue • Scale benefits associated with: • Expanded product range at higher margins; • MaxiSTOCK customer inventory ROIC: Return on Invested Capital (excludes unallocated corporate costs) management system dri
Slide 14: Segment earnings – Trailers (Australia & NZ)
SEGMENT EARNINGS – TRAILERS (AUSTRALIA & NZ) For personal use only • Notwithstanding strong revenue growth in both Australia and New Zealand, profit significantly impacted by: • NZ warranty claims arising from on some trailers built between 2014 -15. Issues identified and rectified • Sudden shift in
Slide 15: Australian trailers
AUSTRALIAN TRAILERS • Market growth – New trailer registrations in 2017 17% higher than 2016 For personal use only • Market share – MaxiTRANS continues long term trend of increasing its market leading position GENERAL FREIGHT FOOD & GROCERY BULK TRANSPORT • Unit sales 27% higher • Coles order delive
Slide 16: New Zealand
NEW ZEALAND For personal use only • Unit sales increased 45% as long-awaited regulation changes took effect enabling customers to purchase new equipment with certainty • Profit impacted by significant warranty costs associated with engineering design issues and trailer wall panel manufacturing proce
Slide 17: Capital allocation
CAPITAL ALLOCATION For personal use only • China • China business challenged in recent times from increased competition resulting in product commoditisation as well as increased input costs • Strategic review undertaken to assess all opportunities and options • Decision to sell on the basis that the
Slide 18: Strategy update – building on solid foundations
For personal use only STRATEGY UPDATE – BUILDING ON SOLID FOUNDATIONS
Slide 19: Strategic initiatives driving value
STRATEGIC INITIATIVES DRIVING VALUE For personal use only Our Strategy : Partner with operators in the freight transport business to improve VALUE CREATION efficiency and effectiveness. Add value by reducing customers’ operating risks. Industry Leader • Trusted business partner Our Values : Send all
Slide 20: Value enablers: organisational development and corporate image
VALUE ENABLERS: ORGANISATIONAL DEVELOPMENT AND CORPORATE IMAGE For personal use only • An organisation empowered to grow in the MaxiTRANS way GOALS • Build on industry leadership position focussing on safety & efficiency • Cross functional collaboration and accountability • Whole of organisation cha
Slide 21: Value generator: operational excellence
VALUE GENERATOR: OPERATIONAL EXCELLENCE For personal use only GOAL Drive efficiency and margin improvement Go live FY19. Benefits: • Business Implement ERP system and analytics 1 continuous improvement initiatives • Inventory management • Labour efficiency Implement common end to end business 2 • Pr
Slide 22: Value generator: growth in existing markets
VALUE GENERATOR: GROWTH IN EXISTING MARKETS For personal use only GOAL Revenue growth; improved asset utilisation Key Grow national market share • Expand Footprint 1 Drivers in trailers • New products • Expand range to include after-market 2 Increase volume in parts business truck/engine parts and t
Slide 23: Value generator: growth in new markets
VALUE GENERATOR: GROWTH IN NEW MARKETS For personal use only Establish longer term growth drivers and geographic GOAL diversification Key 1 Target opportunities in Fleet Management Drivers 2 Value accretive growth in China 3 Evaluate other Asian growth markets
Slide 24: The MaxiTRANS investment opportunity
THE MAXITRANS INVESTMENT OPPORTUNITY For personal use only Attractive growth options in existing and new markets (Domestic & Revenue Growth International) Margin Significant opportunity to improve operating performance Improvement Value Creation Growth in earnings and cash flow | Improving return on
Slide 25: Outlook
For personal use only OUTLOOK
Slide 26: FY19 outlook
FY19 OUTLOOK For personal use only • Key Australian markets continue to perform strongly • Signs of replacement cycle underway • Order Book continues to be strong • Significant opportunities remain • Trailer manufacturing now back on track. • Strong sales growth in NZ experienced in FY18 not expecte
Slide 27: For personal use only
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