Ntaw Holdings Limited. · ASX:NTD
Ntaw — National Tyre & Wheel — H1 FY2020 Earnings Presentation
17 slides from Ntaw's earnings presentation, Feb 25, 2020
Slide 1: Financial Results Six Months to 31 December 2019
For personal use only Financial Results Six Months to 31 December 2019 25 February 2020
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer For personal use only This presentation may contain certain unaudited financial information in relation to National Tyre & Wheel Limited (“NTD” or the “Company” or “the “Group”). As such, it has not been subject to an audit or an audit process or otherwise inde
Slide 3: Financial Results
Financial Results For personal use only Underlying EBITDA1 of $5.0m compared to $6.4m in the prior corresponding period (PCP). Reported H1 FY20 EBITDA: $6.4m compared to H1 FY19 EBITDA of $6.8m. H1 FY20 NPAT: $2.5m compared to H1 FY19 NPAT of $3.8m. H1 FY20 Revenue $80.5m compared to H1 FY19 $83.8m.
Slide 4: Trading Highlights
Trading Highlights For personal use only Volume growth in ETD New Zealand, Dynamic Wheels and Statewide offset by contraction in ETD Australia, Top Draw (South Africa) and, to a lesser extent, MPC. Prices fell at ETD Australia and South Africa as competitor discounting continued. Together with decli
Slide 5: Summary of Results
Summary of Results For personal use only Comments Statement of Profit or Loss $'000 H1 FY2020 H1 FY2019 H1 FY20 gross profit margin lower than the prior period due to discounting Sales revenue 80,454 83,762 and increased import prices flowing from less favourable exchange rates and Cost of goods s
Slide 6: Balance Sheet & Key Operating Metrics
Balance Sheet & Key Operating Metrics For personal use only Statement of Financial Position $'000 Dec-19 Dec-18 Current assets Comments Cash and cash equivalents 17,717 13,580 Trade and other receivables 19,510 20,530 Inventories 54,483 52,532 Cash and cash equivalents – The Group has cash of $17.
Slide 7: H1 reflects NTD's transitional year: growth in Dynamic Wheels, Statewide, ETD NZ
H1 reflects NTD’s transitional year For personal use only Growth recorded in Dynamic Wheels, Statewide and ETD New Zealand As disclosed in the summary of FY19 results, FY20 is a transitional year for some NTD businesses as they change product mix and sourcing. Businesses less sensitive to shifting c
Slide 8: H1 reflects NTD's transitional year: unusual import price variations
H1 reflects NTD’s transitional year For personal use only Unusual import price variations NTD’s suppliers have responded to changing business environments in very different ways: USA tariffs on Chinese tyres and raw materials (used in US manufacturing plants) have coincided with USA manufacturers
Slide 9: Challenging market conditions in Australia and South Africa
H1 reflects NTD’s transitional year For personal use only Challenging market conditions in Australia and South Africa Consumer sentiment in Australia has been relatively negative for some time, with premium durable goods suffering more than other product categories. Consumer preferences continue t
Slide 10: NTD's transitional year to continue in H2
NTD’s transitional year to continue in H2 For personal use only NTD responding to market conditions NTD is executing various strategies to grow profits: While actively promoting its superior premium 4WD products, expanding its product mix to cover other price/value points as well as other vehicle
Slide 11: NTD responding to market conditions (continued)
NTD’s transitional year to continue in H2 For personal use only NTD responding to market conditions (continued) Launching the Statewide business in WA, with the purchase of assets from Industrial Tyre Service providing a base for that expansion; New alloy wheel offerings in all geographic market
Slide 12: Outlook - Operations
Outlook - Operations For personal use only While the H1 FY20 result is consistent with expectations, the Group is expecting profit to fall below expectations in H2 because: Market conditions are not likely to improve. In particular, pressure from higher import prices, continued discounting by comp
Slide 13: Outlook – Shareholder value
Outlook – Shareholder value For personal use only NTD Share Price National Tyre & Wheel (LTM) Market Cap at ≈ $41m @ $0.40 per share $0.55 $0.53 3.50mm (based on closing price on 24 February 2020) $0.51 3.00mm $0.49 2.50mm $0.47 2.00mm $0.45 Net assets at 31 Dec-19: $69.5m, or $0.68 $0.43 1.50mm per
Slide 14: Thank you
For personal use only Thank you 14
Slide 15: National Tyre & Wheel – Strong Foundations
National Tyre & Wheel – Strong Foundations For personal use only Experienced Management Team & Board Specialised brand building business focused on tyre & wheel importing and distribution Leading position in 4WD/SUV tyres, steel wheels & OEM wheels and tyres to caravan manufacturers Peter Ludemann M
Slide 16: Extensive Distribution Platform – Strong Foundations
Extensive Distribution Platform – Strong Foundations For personal use only Senior Management team with over 200 years combined tyre and wheel industry experience Over 200 employees in 3 countries 10 Distribution Centres operated by NTD* 7 Warehouse operated by 3rd parties * ETD and Dynamic warehouse
Slide 17: A diversified tyre and wheel wholesaler
A diversified tyre and wheel wholesaler For personal use only Operating Entities & Locations Key tyre and wheel brands 17
National Tyre & Wheel — H1 FY2020 Earnings Presentation on 6ix