Motus Holdings Limited · JSE:MTH
Motus — Corporate Update (June 2020)
21 slides from Motus's corporate update, Jun 23, 2020
Slide 1: Investor pre-close briefing & trading update
Investor pre-close briefing & trading update 23 June 2020
Slide 2: Agenda
Agenda 1. Introduction 2. Impact of COVID-19 Virus 3. Our response 4. Business overview 5. Health and safety of our people 6. Actions taken to mitigate business risk 7. Facilities and debt covenants 8. Foreign exchange cover 9. Outlook for 30 June 2020 10. What happens next – strategy going forward
Slide 3: 1. Introduction
Osman Arbee Ockert Janse van Rensburg 1. Introduction Welcome Extraordinary meetings with EXCO & Board members regularly Discussions with local & international funders Sharing of information via SENS and webinar after: – First trading update: finalisation of March 2020 results – Second trading updat
Slide 4: 2. Impact of COVID-19 Virus per country
Osman Arbee Ockert Janse van Rensburg 2. Impact of COVID-19 Virus (“Virus”) per country SOUTH AFRICA UNITED KINGDOM AUSTRALIA Initial lockdown commenced on 27 March 2020 Lockdown commenced on All our businesses remained with all non-essential operations closed until 23 March 2020 with sales open, al
Slide 5: 2. Impact of COVID-19 Virus on the South African vehicle market
Osman Arbee Ockert Janse van Rensburg 2. Impact of COVID-19 Virus (“Virus”) on the South African vehicle market South African vehicle market (calendar years) 536 626 vehicles Projection 375k – 400k vehicles Projection 425k – 450k* vehicles * Projected to include 30,000 car rental units Motus increas
Slide 6: 2. Impact of COVID-19 Virus per segment
Osman Arbee Ockert Janse van Rensburg 2. Impact of COVID-19 Virus (“Virus”) per segment Import and Motor-Related Aftermarket Retail Rental Distribution Financial Services Parts Impacted Impacted Severely Impacted Impacted Impacted 50% 60% 80% 20% 30% 6
Slide 7: 3. Our response
Osman Arbee Ockert Janse van Rensburg 3. Our response Set up a Covid Crises Committee to understand the immediate challenges the Virus presented to our people, customers and businesses; Develop plans to address challenges and build quick response alternatives; Prioritise all cash payments to preserv
Slide 8: 4. Business overview
Osman Arbee Ockert Janse van Rensburg 4. Business overview Group Diversified business with a leading position in South Africa & selected international presence mainly in the UK, Australia & China; Fully integrated business model in South Africa across the vehicle value chain; Unrivalled scale in Sou
Slide 9: 4. Business overview (continued): Import and Distribution, Retail
Osman Arbee Ockert Janse van Rensburg 4. Business overview (continued) Import and Distribution Retail Strong relationships with OEMs; Dealership footprint will support us to trade out of the overstocked position created by the crises; Vehicle & parts support from OEMs; Multi-franchise opportunities
Slide 10: 4. Business overview (continued): Rental, Motor-Related Financial Services
Osman Arbee Ockert Janse van Rensburg 4. Business overview (continued) Rental Motor-Related Financial Services Reduced vehicle rental fleet by 40%; Protected to an extent by annuity income; Commenced with the early retirement & retrenchment process Cash generative business with low-asset base; where
Slide 11: 4. Business overview (continued): Aftermarket Parts
Osman Arbee Ockert Janse van Rensburg 4. Business overview (continued) Aftermarket Parts Demand for product has recovered to service pent-up demand; Extensive footprint supported by franchisees; Strong supply chain in South Africa and China; Availability of stock items and variants; & Provision of p
Slide 12: 5. Health and safety of our people
Osman Arbee Ockert Janse van Rensburg 5. Health and safety of our people Sadly, one Motus employee in South Africa succumbed to the virus. 37 employees (29 in South Africa and 8 in the UK) have tested positive & are in the process of recovering/have recovered. No customers have been impacted on our
Slide 13: 6. Actions taken to reduce the negative impact and mitigate business risk
Osman Arbee Ockert Janse van Rensburg 6. Actions taken to reduce the negative impact on our operations and mitigate business risk Motus actively implemented various action plans and a number of initiatives to preserve cash, including: Total cost to company (TCTC) was reduced as follows : Employee le
Slide 14: 6. Actions taken to reduce the negative impact (continued)
Osman Arbee Ockert Janse van Rensburg 6. Actions taken to reduce the negative impact on our operations and mitigate business risk (continued) Operating costs Cost reductions across all categories. Postponement of non-committed & non-critical capital expenditure; Properties – Closure of 20 car rental
Slide 15: Cash is king in this environment!
Osman Arbee Ockert Janse van Rensburg 6. Actions taken to reduce the negative impact on our operations and mitigate business risk (continued) Working capital Optimisation of working capital (including critical evaluation of supply chains). Acquisitions No new business acquisitions. Dividends No divi
Slide 16: 7. Facilities and debt covenants
Osman Arbee Ockert Janse van Rensburg 7. Facilities and debt covenants The Group has access to both fixed & variable interest-bearing debt facilities: – Total bank facilities excluding floorplans = R14 bn – approx. R4 bn (30%) still available. – Floorplan facilities = R13 bn – approx. R4 bn (30%) st
Slide 17: 8. Foreign exchange cover
Osman Arbee Ockert Janse van Rensburg 8. Foreign exchange cover Motus has foreign exchange cover for Hyundai and Kia until end March 2021 at an average rate of R15,10 to the US dollar & R16,50 to the Euro. Mitsubishi has sufficient fully paid stock to 31 December 2020. Motus has foreign exchange cov
Slide 18: 9. Outlook for 30 June 2020
Osman Arbee Ockert Janse van Rensburg 9. Outlook for 30 June 2020 Projected ranges Projected range Actual Decrease 30 June 2020 30 June 2019 range Revenue R67,8 bn to R75,7 bn R79,7 bn -5% to -15% Operating profit R1,8 bn to R2,3 bn R3,6 bn -35% to -50% Normalised Earnings per share (EPS) (Cents) 36
Slide 19: 10. What happens next – strategy going forward
Osman Arbee Ockert Janse van Rensburg 10. What happens next – strategy going forward Accelerate strategies: – Deliver exceptional value to customers; – Remain the strategic partner of choice for OEM’s & suppliers; – Apply a pragmatic and proactive approach to innovation; – Further diversify earning
Slide 20: Questions & Thank you
Results presentation: 16 September 2020 Questions & Thank you 20
Slide 21: Disclaimer
Disclaimer This presentation is confidential and is being provided for information purposes only to existing and prospective investors in Motus Holdings Limited (“Motus”). No representation or warranty, expressed or implied, is made as to the accuracy or completeness of the information contained her