Motus Holdings Limited · JSE:MTH
Motus — FY2022 Earnings Presentation
51 slides from Motus's earnings presentation, September 2022
Slide 1: Annual results presentation
Annual results presentation audited summarised results for the year ended 30 June 2022
Slide 2: Agenda
Agenda 1 2022 highlights 6 Revenue streams 11 Tools for 16 Prospects achieving strategy 2 Themes underpinning 7 Revenue & operating 12 Overview 17 Appendices Motus’ success profit contribution of strategy per segment 3 Trading environment 8 Financial highlights 13 Enabling the business through techn
Slide 3: 2022 highlights
Osman Arbee Ockert Janse van Rensburg 2022 highlights Exceptional Shareholder financial Strategic returns performance Growth in acquisitions & market shares consolidation Enhanced Positive return to Achieved Supply chain digitisation shareholders R92 billion revenue optimisation Acquisitions & innov
Slide 4: Themes underpinning Motus’ success
Osman Arbee Ockert Janse van Rensburg Themes underpinning Motus’ success Governance & structure Our integrated business model enables us to capture opportunities when others face challenges, within the parameters of good governance & guided by our strong Innovation & digitisation moral compass. Our
Slide 5: Trading environment
Osman Arbee Ockert Janse van Rensburg Trading environment United Kingdom South Africa – Inflation increasing ahead of expectations - 9,4% in June 2022; – Economic outlook remains challenging with low – Ongoing Russia-Ukraine conflict; economic growth; – Wage inflation due to labour shortages; – Cons
Slide 6: The South African vehicle market & our share
Osman Arbee Ockert Janse van Rensburg The South African vehicle market & our share Actual Projection Projection Actual 464 122 500k-520k 530k-550k 490 124 vehicles vehicles vehicles vehicles CY21 CY22 CY23 FY22 Our passenger only vehicle market share for our Importer brands at June 2022 is 24,5% (20
Slide 7: Vehicle unit sales
Osman Arbee Ockert Janse van Rensburg Vehicle unit sales % 7% Units 2022 2021 change 16% New 135 564 119 933 13 % new - South Africa 104 638 86 304 21 vehicles sold 2022 - UK 21 405 24 212 (12) - Australia 9 521 9 417 1 Pre-owned 89 753 108 700 (17) 77% - South Africa 68 695 81 900 (16) - UK 16 400
Slide 8: Revenue streams
Osman Arbee Ockert Janse van Rensburg Revenue streams Revenue contribution per stream % Rm 2022 2021 change Sale of new vehicles 43 746 40 167 9 Sale of pre-owned vehicles 21 353 22 266 (4) 48% 46% Sale of parts 17 240 16 002 8 Rendering of services 9 639 8 770 10 Total revenue 91 978 87 205 5 Reven
Slide 9: Revenue contribution per segment
Osman Arbee Ockert Janse van Rensburg Revenue contribution per segment % Rm 2022 2021 change Revenue 91 978 87 205 5 2% 8% 22% +21% +5% +4% +12% Segmental revenue 2022^ 68% 2% 7% 20% Segmental revenue 2021^ 19 683 23 883 70 962 74 209 2 019 2 107 7 295 8 163 71% Import and Distribution Retail and Re
Slide 10: Operating profit contribution per segment
Osman Arbee Ockert Janse van Rensburg Operating profit contribution per segment % Rm 2022 2021 change Operating profit before capital items and net foreign exchange gains/(losses) 5 029 3 838 31 12% 41% 19% Segmental +64% +25% +10% +11% operating profit^ 2022 28% 14% 42% Segmental 22% operating prof
Slide 11: Financial highlights
Osman Arbee Ockert Janse van Rensburg Financial highlights Revenue 5% Operating profit# 31% Profit before tax 56% R91 978 million R5 029 million R4 473 million (2021: R87 205 million) (2021: R3 838 million^) (2021: R2 860 million) Attributable profit 57% Earnings 65% Headline Earnings 72% per
Slide 12: Financial highlights (cont.)
Osman Arbee Ockert Janse van Rensburg Financial highlights (cont.) Free cash flow Net debt EBITDA generated from operations to EBITDA to net interest (debt covenant) (debt covenant) R4 835 million 0,8 times 17,9 times (2021: R5 904 million) (2021: 0,8 times) (2021: 10,9 times) (Required: to be less
Slide 13: Financial overview
Osman Arbee Ockert Janse van Rensburg Financial overview Extracts from Statement of Profit or Loss for the year ended 30 June 2022 % 2022 2021 change Revenue (Rm) 91 978 87 205 5 Operating profit before capital items and net foreign exchange gains/(losses) (Rm) 5 029 3 838 31 Operating margin (%) 5,
Slide 14: Financial overview (cont.)
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Extracts from Statement of Profit or Loss for the year ended 30 June 2022 (cont.) % Rm 2022 2021 change Operating profit before capital items and net foreign exchange gains/(losses) 5 029 3 838 31 Impairment of property, plant & equipm
Slide 15: Financial overview (cont.)
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Extracts from Statement of Profit or Loss for the year ended 30 June 2022 (cont.) % 2022 2021 change Profit before tax (Rm) 4 473 2 860 56 Income tax expense (Rm) (1 135) (718) 58 Profit for the year (Rm) 3 338 2 142 56 Effective tax r
Slide 16: Earnings & dividends
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Earnings & dividends % 2022 2021 change Earnings (Rm) 3 290 2 098 57 Headline earnings (Rm) 3 504 2 145 63 Weighted average number of shares (million) 173 182 (5) Basic earnings per share (cents) 1 902 1 153 65 Headline earnings per sh
Slide 17: Key Profit or Loss highlights: revenue and operating profit
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Key Profit or Loss highlights (Rm) (Rm) Operating Revenue profit# +5% +31% 87 205 77 001 91 978 73 417 79 711 3 838 5 029 3 620 3 593 2 136 ^ 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 [COVID-19] [COVID-19] #Operating profit bef
Slide 18: Key Profit or Loss highlights: profit before tax and attributable profit
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Key Profit or Loss highlights (Rm) (Rm) Profit Attributable before tax profit +56% +57% 2 098 2 346 3 290 2 860 4 473 1 868 2 610 3 210 306 541 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 [COVID-19] [COVID-19] 18
Slide 19: Business segment overview - Import and Distribution
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Business segment overview - Import and Distribution % change HY1 2022 HY2 2022 2022 2021 2021 unaudited pro forma audited audited audited Revenue (Rm) 11 368 12 515 23 883 19 683 21 Operating profit (Rm)^ 614 894 1 508 922 64 Operating
Slide 20: Import and Distribution (cont.)
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Business segment overview - Import and Distribution (cont.) Channel sales split Sales - dealer channel Sales - car rental channel Passenger vehicle market share (on buy-back & risk) Passenger vehicle market share grew to 24,5% 9% 13% (
Slide 21: Business segment overview - Retail and Rental
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Business segment overview - Retail and Rental % change HY1 2022 HY2 2022 2022 2021 2021 unaudited pro forma audited audited audited Revenue (Rm) 36 269 37 940 74 209 70 962 5 Operating profit (Rm)^ 892 1 314 2 206 1 761 25 Operating ma
Slide 22: Retail and Rental: South Africa retail and car rental
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Business segment overview - Retail and Rental (cont) South Africa Retail revenue increased by 9% & operating profit by 3% Car rental revenue increased by 67% & operating profit by more than mainly as a result of: 100% mainly as a resul
Slide 23: Retail and Rental: United Kingdom and Australia
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Business segment overview - Retail and Rental (cont) United Kingdom Retail revenue decreased by 5% & operating profit increased by 19%. The UK operation sold 21 405 new units (2021: 24 212 new units) & 16 400 pre-owned units (2021: 21
Slide 24: Business segment overview - Mobility Solutions
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Business segment overview - Mobility Solutions % change HY1 2022 HY2 2022 2022 2021 2021 unaudited pro forma audited audited audited Revenue (Rm) 1 028 1 079 2 107 2 019 4 Operating profit1 (Rm)^ 502 502 1 004 912 10 Comments − Revenue
Slide 25: Business segment overview - Aftermarket Parts
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Business segment overview - Aftermarket Parts % change HY1 2022 HY2 2022 2022 2021 2021 unaudited pro forma audited audited audited Revenue (Rm) 3 970 4 193 8 163 7 295 12 Operating profit (Rm)^ 301 343 644 578 11 Operating margin (%)^
Slide 26: Statement of Financial Position as at June 2022
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Statement of Financial Position as at 30 June 2022 Rm % Assets 2022 2021 change Goodwill and intangible assets 1 959 1 546 27 Investments in associates and joint ventures 269 289 (7) Property, plant and equipment 7 331 7 024 4 Right-of
Slide 27: Net working capital as at June 2022
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Net working capital as at 30 June 2022 % Rm 2022 2021 change Inventories 18 966 16 528 15 Trade and other receivables 4 646 4 136 12 Provisions and derivatives (430) (1 492) (71) Trade and other payables (16 016) (14 007) 14 Total 7 16
Slide 28: Statement of Financial Position (cont.)
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Statement of Financial Position as at 30 June 2022 (cont.) Rm % Liabilities 2022 2021 change Contract liabilities (service and maintenance plans) (3 021) (2 828) 7 Lease liabilities (2 347) (2 449) (4) Core interest-bearing debt (4 169
Slide 29: Statement of Cash flows for the year ended June 2022
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Statement of Cash flows for the year ended 30 June 2022 Rm 2022 2021 0 Cash generated from operations before movements in net working capital 6 909 5 335 Movements in net working capital (620) 1 778 Cash generated by operations before
Slide 30: Cashflow generation and utilisation
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Cashflow I Generation and utilisation (Rm) Debt as at 30 June 2021 (5 850) Cash generated from 6 909 Improved trading performances trading activity Movements in net ( 620) Improved trading across the businesses Operating activities wor
Slide 31: Gearing, facilities and debt covenants
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Gearing, facilities and debt covenants 35 Net debt to equity is 36% (2021: 28%) 7 442 R11,7bn R8,0bn 6 618 30 60% 56% 25 unutilised unutilised 5 036 funding funding 17,9 20 facilities facilities 3 401 36% (including floorplans) (exclud
Slide 32: Strategic acquisitions
Osman Arbee Ockert Janse van Rensburg Strategic acquisitions The group acquired the following businesses since 1 July 2021 for a total net of cash purchase consideration of R758 million: Effective Acquisition Jurisdiction ownership Transaction FAI UK 100% Acquired 100% shareholding Hyundai Midrand,
Slide 33: Tools for achieving strategy
Osman Arbee Ockert Janse van Rensburg Tools for achieving strategy Drive market Invest in human leadership capital & through Enhance overall transformation financial Improve technology performance solutions by Optimal capital Optimise our Develop & empower Strengthening the employees core business F
Slide 34: Overview of strategy
Osman Arbee Ockert Janse van Rensburg Overview of strategy United Kingdom – Further expansion of Aftermarket Parts into wholesale & retail channels – UK eCommerce market – Bolt-on acquisitions which can supplement regions & brands where there is an existing Motus South Africa dealership presence & i
Slide 35: Enabling the business through technology & innovation
Osman Arbee Ockert Janse van Rensburg Enabling the business through technology & innovation Outcomes we are striving to achieve: Through: - investment in networks & Operational excellence applications - increased digitisation - leveraging business Omni-channel customer engagement insights & data Mot
Slide 36: ESG milestones
Osman Arbee Ockert Janse van Rensburg ESG milestones Transformation journey Sustainability-linked facility Management level 2017 2022 - Secured a syndicated R6 billion sustainability-linked facility & Black representation R800 million sustainability-linked working capital facility Top 17% 50% - Meas
Slide 37: ESG milestones (cont.)
Osman Arbee Ockert Janse van Rensburg ESG milestones (cont.) Streamlined the SES committee agenda to Creation of employment ensure appropriate focus on ESG issues & – Yes Programme 400 youth p.a (50% employed) appointed an independent director to – Apprentice training ~1,600 apprentices chair RemCo
Slide 38: Utilisation of available cash
Osman Arbee Ockert Janse van Rensburg Utilisation of available cash Working capital Debt reduction Replenish car Shareholder rental fleet dividends & share repurchases Replenishment of Pay-down debt vehicle inventory Strategic Capex acquisitions Ongoing Estimation: ~R1bn Dependent on car rental Tota
Slide 39: Prospects
Osman Arbee Ockert Janse van Rensburg Prospects Outlook: Consumer and Vehicle supply Currency Increased onerous Rising inflation & business sentiment improving, albeit fluctuations regulatory logistics costs will remain under slowly. ongoing requirements pressure Erratic inventory supply expected to
Slide 40: Thank you!
We would like to thank all staff members, customers, suppliers, funders, financial institutions who provided financing to our customers, shareholders & the board members for their support during these challenging times. Thank you!
Slide 41: Appendices
Appendices. AA ZZ
Slide 42: Resilient business model
Resilient business model 1 2 3 4 5 6 7 Diversified Integrated Unrivalled High free Varied Organic Highly automotive business scale in cash flow income growth experienced business model South Africa generation streams trajectory team 1. Diversified (non-manufacturing) business in the automotive 5. In
Slide 43: Diversified automotive business
Diversified automotive business Provider of service, 3 maintenance & extended warranty plans Importer & distributor 1 of passenger & light 8 commercial vehicles, Distributor, wholesaler & parts & panels retailer of parts & accessories Provider of fleet management 6 services Workshops, parts & servic
Slide 44: Business segment overview
Business segment overview Import and Retail and Mobility Aftermarket Distribution Rental Solutions Parts − Exclusive South African importer of − South Africa − Developer, manager & administrator − Distributor, wholesaler & retailer of Hyundai, Kia, Renault & Mitsubishi − Represent 23 OEMs of vehicle
Slide 45: Key business metrics
Key business metrics − New vehicle sales Retail Service & maintenance plans − Number of product − Pre-owned vehicle sales − New vehicle sales − Number of customer derivatives − Parts & panel sales − Pre-owned vehicle sales contracts − Market share − Market share − Parts & panel sales − Funds under c
Slide 46: Channel positioning: new and pre-owned vehicles
Channel positioning I Vehicles Motus has established a position to engage its customers across the various sales channels and aspires to position itself at the forefront of all channels accordingly. New Vehicles Importer Importer Franchise Franchise Aggregators Traditional Digital dealer Dealer (Onl
Slide 47: Our vision & strategic objectives
Our vision & strategic objectives Our vision Grow and expand our participation in all aspects of the vehicle value chain with competitive products and services that maximise our share of the customer’s vehicle investment and engender loyalty. Improve people’s lives by We rely on strong relationships
Slide 48: Our digitisation portfolio
Our digitisation portfolio Harbour Aftermarket process car parts Car buying process process Car rental process Car servicing Car sales process process Challenge: Multiple stakeholder Challenge: touch-points & Parts picking efficiency & on-demand manufacturing handovers of Challenge: Challenge: for s
Slide 49: ESG strategy
ESG strategy Environmental Social Governance Manage our activities that impact the Remain committed to socio-economic Continue to deepen the maturity of our environment & actively strive to uphold growth, employment creation, the governance practices & processes. our commitments to all stakeholders.
Slide 50: 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
Slide 51: Pro forma Disclaimer
Pro forma Disclaimer To provide a more meaningful assessment of the Group’s performance for the year, pro forma information has been included under the segmental performance section in the preliminary summarised audited consolidated results for the year ended 30 June 2022. The directors of Motus Hol