Motorcycle Holdings Ltd. · ASX:MTO
Motorcycle — FY2022 Earnings Presentation
26 slides from Motorcycle's earnings presentation, Aug 29, 2022
Slide 1: Investor Presentation
For personal use only INVESTOR PRESENTATION
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation may contain certain unaudited financial information in relation to MotorCycle Holdings Limited (MTO, ‘the Company’). As such, it has not been subject to an audit or an audit process or otherwise independently verified. This presentation may contain
Slide 3: Agenda
For personal use only AGENDA 1. SUMMARY HIGHLIGHTS 2. FINANCIAL RESULTS 3. OPERATIONAL PERFORMANCE 4. FY2023 OUTLOOK 3
Slide 4: Summary Highlights
For personal use only SUMMARY HIGHLIGHTS 4
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS For personal use only REVENUE GROSS PROFIT GROSS PROFIT MARGIN 7% to 3% to 29% $462.6m $132.4m UNDERLYING EBITDA1 NPAT2 FINAL DIVIDEND PER SHARE 4% to 18% to 8c | 20c $37m $23.1m fully franked for year 1. Underlying EBITDA includes interest and amortisation on leased properties
Slide 6: Operational Highlights
OPERATIONAL HIGHLIGHTS For personal use only 1 Continued strong growth in new and used 2 New motorcycle volumes increased 6% motorcycle sales drove Industry new bike sales increased revenue increased 4% 3 Ongoing focus on improving supply of used 4 Results achieved against a backdrop of extended bik
Slide 7: Financial Results
For personal use only RESULTS FINANCIAL 7
Slide 8: Profit Results
PROFIT RESULTS For personal use only OVERVIEW OF RESULTS ($’000) 30 JUNE 22 30 JUNE 21 CHANGE % Total income 462,572 433,915 7% Cost of sales (330,189) (305,437) 8% GROSS PROFIT 132,383 128,478 3% Gross profit margin (%)1 29% 30% (3%) Employee benefits expense (62,080) (59,689) 4% Occupancy expense
Slide 9: Balance Sheet
BALANCE SHEET For personal use only BALANCE SHEET AS AT ($M) 30 JUNE 22 30 JUNE 21 CHANGE % Cash and cash equivalents 3.9 4.7 (17%) Trade and other receivables 7.1 8.6 (17%) Inventories 107.6 86.2 25% Plant and equipment 11.8 11.5 3% Lease right of use assets 45.8 43.2 6% Goodwill and intangibles 94
Slide 10: Market Value
MARKET VALUE For personal use only RESULTS FOR THE YEAR ENDED 30 JUNE 22 30 JUNE 21 CHANGE % Net profit after tax (NPAT) $23.1m $28.3m (18%) Closing share price ($) $2.08 $2.77 (25%) Shares on issue (number) 61.7m 61.7m Dividends per share 20 cents 20 cents Ordinary earnings per share $0.375 $0.459
Slide 11: Resilient Revenue Growth
RESILIENT REVENUE GROWTH For personal use only Revenue increased 7% to $462.6 million Revenue growth ($m) 500 450 462.6 400 433.9 7% 350 363.7 19% 300 329.9 10% 9% 302.4 250 200 235.3 29% 150 100 50 0 2017 2018 2019 2020 2021 2022 MOTORCYCLE HOLDINGS 11
Slide 12: Annual Gross Profit
ANNUAL GROSS PROFIT For personal use only Gross Profit ($m) 140 132.4 120 128.5 3% 100 26% 102.1 96.4 6% 80 87.8 10% 60 62.3 41% 40 20 0 2017 2018 2019 2020 2021 2022 MOTORCYCLE HOLDINGS 12
Slide 13: Underlying EBITDA and Margin
UNDERLYING EBITDA AND MARGIN For personal use only Underlying EBITDA ($m) Underlying EBITDA Margin (%) 50 10 45 9 17.7 8.9 40 8 8.0 35 17.2 7 7.5 30 6 6.2 6.2 25 17.7 26.8 5 5.5 20 4 10.3 19.8 15 7.6 3 6 10 2 10.4 9.9 8.6 8.5 5 1 0 0 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 First
Slide 14: NPAT Results
NPAT RESULTS For personal use only NPAT ($m) 30 28.3 25 18% 23.1 20 15 15.2 86% 10 9.3 83% 8.5 8.3 5 9% 2% 0 2017 2018 2019 2020* 2021* 2022 * Includes JobKeeper payment MOTORCYCLE HOLDINGS 14
Slide 15: Diversified Earnings
DIVERSIFIED EARNINGS For personal use only 35,000 5% 32,406 30,000 30,743 25,000 1% 7% 24,364 9% 24,125 20,000 21,930 20,550 19,859 18,213 2% 2% 15,000 14,965 15,228 14,323 14,541 10,000 5,000 0 New motorcycles Used motorcycles Parts and accessories - Parts and accessories - Service Finance and insu
Slide 16: Operational Performance
For personal use only OPERATIONAL PERFORMANCE 16
Slide 17: Retail
RETAIL For personal use only • Overall strong performance despite impacts of COVID-19 restrictions, the Omicron variant wave and major floods in NSW and QLD restricting trading conditions. • New and used motorcycle sales volume and demand remain strong. • All dealerships performing well with large o
Slide 18: New Motorcycle Sales Revenue Growth
NEW MOTORCYCLE SALES REVENUE GROWTH For personal use only New motorcycle revenue increased 7% to $182.7 million Sales Revenue Growth ($m) 200 180 182.7 160 170.9 7% 140 120 129.4 32% 4% 115.8 100 107.4 8% 111.2 16% 80 60 40 20 0 2017 2018 2019 2020 2021 2022 MOTORCYCLE HOLDINGS 18
Slide 19: New Motorcycle Unit Sales Continue to Outperform Market
NEW MOTORCYCLE UNIT SALES CONTINUE TO OUTPERFORM MARKET For personal use only Industry new motorcycle unit MTO new motorcycle unit sales increased 4% sales increased 7% 140,000 16,000 14,039 116,619 14,000 120,000 112,587 111,927 13,264 6,340 101,114 99,581 48,929 6,494 50,908 55,840 12,000 100,000
Slide 20: Used Motorcycle Unit Sales Growth
USED MOTORCYCLE UNIT SALES GROWTH For personal use only MTO used motorcycle unit sales increased 10% 12,000 10,082 10,374 10,000 9,430 5,014 9,068 5,088 8,179 4,733 4,366 8,000 7,221 4,256 3,603 6,000 5,360 4,994 4,000 4,702 4,697 3,923 3,618 2,000 0 2017 2018 2019 2020 2021 2022 First half Second h
Slide 21: Wholesale
WHOLESALE • External sales increased 7% to $43.2 million compared to FY21; Internal sales revenue For personal use only decreased 11% to $22.3 million. • Gross profit of $24.4 million, up 1% on FY21. • Solid second half rebound following restricted first half trading conditions in Sydney, Melbourne
Slide 22: Finance JV
FINANCE JV For personal use only • 50% share contributed profit of $1.3 million after tax, up 44% on FY21. • Well provisioned against COVID-19 losses which were less than expected. • Improved debt collection and responsible lending resulting in low loss ratio. MOTORCYCLE HOLDINGS 22
Slide 23: Acquisitions
ACQUISITIONS For personal use only • Finalised acquisition of Forbes and Davies – a leading New Zealand importer and wholesaler of motorcycle tyres, ATV tyres, riding apparel, helmets, accessories and aftermarket parts. • Finalised acquisition of Wide Bay Motorcycles. • Post FY22 financial year clos
Slide 24: FY2023 Outlook
For personal use only FY2023 OUTLOOK 24
Slide 25: FY2023 Outlook
FY2023 OUTLOOK For personal use only Preparing for market Remain confident in Acquisitions Recent acquisition volatility and more the resilience of our Forbes and TeamMoto Townsville subdued trading business model Davies, Wide Bay progressing well and conditions as Motorcycles to to contribute to co
Slide 26: Thank you
For personal use only Thank you MOTORCYCLE HOLDINGS LIMITED 68 Moss Street Slacks Creek QLD 4127 www.mcholdings.com.au