Combined Motor Holdings Limited · JSE:CMH
Combined Motor — FY2022 Earnings Presentation
20 slides from Combined Motor's earnings presentation, May 2022
Slide 1: Financial Results Presentation
FINANCIAL RESULTS PRESENTATION FINANCIAL RESULTS PRESENTATION
Slide 2: Group Financial Highlights
GROUP FINANCIAL HIGHLIGHTS GROUP FINANCIAL HIGHLIGHTS FOR THE YEAR ENDED 28 FEBRUARY 2022 28 February 2022 28 February 2021 % Change Total assets (R’000) 3,778,740 3,274,003 15,4 Cash resources (R’000) 817,739 754,825 8,3 Net asset value per share (cents) 1,484 1,216 22,0 Revenue (R’000) 11,167,798
Slide 3: Group Income Statement
GROUP INCOME STATEMENT GROUP INCOME STATEMENT 2022 2021 R'000 R'000 Revenue 11,167,798 8,579,558 Cost of sales -9,097,650 -7,087,850 Gross profit 2,070,148 1,491,708 Gross profit % 18.5 17.4 Other income 16,963 26,230 Goodwill impaired 0 -6,250 Selling and operating expenses -1,480,965 -1,166,643 Op
Slide 4: Operating Margin
OPERATING MARGIN 6.0% 5.4% 5.0% 4.1% 4.0% 4.0% 3.7% 3.7% 4.0% 3.0% 2.0% 1.0% 0.0% 2017 2018 2019 2020 2021 2022 4
Slide 5: Cash Resources (R'million)
CASH RESOURCES (R’million) 900 818 800 755 700 676 660 600 500 400 373 300 200 100 0 2018 2019 2020 2021 2022 5
Slide 6: Segment Profit Contribution
SEGMENT PROFIT CONTRIBUTION 2022 2021 2020 2019 2018 % % % % % Retail motor 66 86 57 64 70 Car hire 23 -2 17 17 19 Financial services 11 12 17 14 10 Corporate services / other - 4 9 5 1 100 100 100 100 100 6
Slide 7: CMH Shares Traded
CMH SHARES TRADED 2022 2021 2020 2019 2018 Volume of shares traded ('000) 12,162 11,227 9147 11,900 15,924 Value of shares traded (R'000) 283,365 145,439 191,500 323,364 383,281 Average price per share traded (cents) 2,330 1,295 2,093 2,717 2,407 Year-end market price (cents) 2,800 1,550 1,840 2,100
Slide 8: Industry New Vehicle Sales
INDUSTRY NEW VEHICLE SALES SALES (‘000 UNITS) - CALENDAR YEAR 600 545 530 PROJECTED 500 480 438 400 347 300 200 100 0 2018 2019 2020 2021 2022 8
Slide 9: Segment Analysis – Retail Motor
SEGMENT ANALYSIS – RETAIL MOTOR GROUP NEW UNIT SALES BY MANUFACTURER (%) Nissan Ford Haval Suzuki Mazda Toyota / Lexus Honda Isuzu Mitsubishi Land Rover / Jaguar Opel/Peugeot Renault Volvo Mahindra Chery / Subaru Trucks 0 5 10 15 20 25 2022 2021 9
Slide 10: Black Economic Empowerment
BLACK ECONOMIC EMPOWERMENT • Group scorecard rating - level 4 • Car Hire scorecard rating - level 2 • CMH First Fleet Solutions - level 2 • Both Car Hire and First Fleet have 51% black ownership • Group scorecard adversely affected by motor manufacturers from which the majority of procurement is sou
Slide 11: Macro
MACRO Year of continued economic difficulty disrupted by: • New waves of Covid-19 pandemic • July civil riots and social unrest • Interest rate and fuel price hikes • Load-shedding 11
Slide 12: Group Overview
GROUP OVERVIEW • Classic case of preparation meeting opportunity • Tough and stressful decisions and actions during the previous year bore fruit • Second half of prior year set the standard for the improvement in each segment • Gross margin 18,5% vs 17,4% • Operating margin 5,4% vs 4,0% • Record hea
Slide 13: Motor Retail
MOTOR RETAIL 2022 2021 2020 2019 2018 R’000 R’000 R’000 R’000 R’000 Segment profit before taxation 336,069 202,437 150,049 185,762 203,986 • Group strategy of multi-franchising wherever possible has proved beneficial • 28 new brands added over the past few years – 22 established and 6 recent • Ford
Slide 14: Motor Retail
MOTOR RETAIL • 25% increase in new vehicle unit sales. Ford and Mazda suffered lower penetration because of severe stock shortages • Used vehicle sales up 4%, in line with national market • Improved new and used vehicle margins as a result of limited supply • Parts revenue up 29% • Workshop revenue
Slide 15: Car Hire
CAR HIRE 2022 2021 2020 2019 2018 R’000 R’000 R’000 R’000 R’000 Segment profit before taxation 115,945 -5,103 45,178 48,290 49,078 • Hardest hit by the pandemic, and effects felt the longest • Strategies worked well: • No panic-selling in a depressed used car market • New major contracts signed when
Slide 16: Financial Services
FINANCIAL SEVICES 2022 2021 2020 2019 2018 R’000 R’000 R’000 R’000 R’000 Segment profit before taxation 56,159 28,046 44,637 41,425 34,154 • Relates to finance JVs and insurance underwriting • JVs benefitted from release of prior year conservative doubtful debt provisioning • Underwriting cells achi
Slide 17: Prospects
PROSPECTS • Expectations of low economic growth, with continued rise in both interest rates and fuel price • Possibility of continued new vehicle supply constraints • Load-shedding and possible fifth wave of pandemic • Despite these threats, national new vehicles are expected to rise 10%, and create
Slide 18: Proton Appoints CMH Group in South Africa
PROTON APPOINTS CMH GROUP IN SOUTH AFRICA CMH Group has been appointed as the importer and distributor of Proton vehicles for South Africa Proton is a division of Geely Holdings, a Fortune Global 500 company, which is the 9th largest automotive manufacturer in the world. Volvo, London electric taxi,
Slide 19: Proton Appoints CMH Group in South Africa
PROTON APPOINTS CMH GROUP IN SOUTH AFRICA 18
Slide 20: Financial Results Presentation End
FINANCIAL RESULTS PRESENTATION FINANCIAL RESULTS PRESENTATION END
Combined Motor Holdings — FY2022 Earnings Presentation on 6ix