Ntaw Holdings Limited. · ASX:NTD
Ntaw — National Tyre & Wheel — Shareholder Meeting (November 2020)
26 slides from Ntaw's shareholder meeting presentation, Nov 12, 2020
Slide 1: 2020 Annual General Meeting and Presentations
National Tyre & Wheel Limited PH: (07) 3212 0950 | FAX: 07 3212 0951 30 Gow Street, Moorooka QLD 4105 PO Box 101, Moorooka QLD, 4105 ABN 97 095 843 020 For personal use only ASX Announcement 12 November 2020 2020 Annual General Meeting and Presentations National Tyre & Wheel Limited (ASX: NTD) (‘the
Slide 2: Chairman's Address
Chairman’s Address For personal use only 2020 Annual General Meeting of National Tyre & Wheel Limited (ACN 095 843 020) 12 November 2020 Good morning and welcome to National Tyre and Wheel Limited’s virtual 2020 Annual General Meeting. The 2020 financial year has been like no other in recent memory.
Slide 3: Chairman's Address (continued)
The Company’s balance sheet is strong with cash of $28.6 million and net debt of $12.8 million at 31 October 2020, representing a net debt to equity ratio of 16%. For personal use only A fully franked interim dividend of 1.25 cents per share was paid to shareholders in March 2020. No final dividend
Slide 4: Managing Director's Presentation November 2020
For personal use only Managing Director’s Presentation 12 November 2020 1
Slide 5: 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” and the “Company”). As such, it has not been subject to an audit or an audit process or otherwise independently verif
Slide 6: FY20 Results Highlights
FY20 Results Highlights For personal use only Operating EBITDA* of $11.8m. *Reported EBITDA bridge to Operating EBITDA Pre COVID-19 pandemic volume down due to competitive pressure, sluggish demand for premium products and changing the product mix in South Africa. $m FY20 FY19 Reported EBITDA 12.2 1
Slide 7: FY20 AASB Reconciliation
FY20 AASB 16 Reconciliation For personal use only $'000 Reported Remove AASB 16 Recognise Operating Pre-AASB 16 FY20 Depn & Int Lease expense FY20 Sales revenue 158,857 158,857 Costs of goods sold (117,594) (117,594) Gross Profit 41,263 41,263 Other income 1,144 1,144 Employee benefits & other (17,1
Slide 8: Financial Results
Financial Results For personal use only FY20 Operating EBITDA*: $11.8m compared to FY19: $12.7m. * See page 3 FY20 NPATA: $5.7m compared to FY19 NPATA of $8.0m. ** Net assets at 30 June 2019 has been adjusted to include all right-of-use assets and lease liabilities due to adoption of AASB 16 to prov
Slide 9: H1 FY20 Pre-Pandemic Strategy
H1 FY20 Pre-Pandemic Strategy For personal use only Product assortment changes including more near sourced passenger tyres and exclusive importation of the budget Blacklion range. Re-tooling Asian suppliers to produce 4WD products for Australia, NZ and South Africa. Negotiating for production of pri
Slide 10: H2 FY20 Strategy Outcomes
H2 FY20 Strategy Outcomes For personal use only Purchase of Industrial Tyre Service in Western Australia and commencement of due diligence to acquire Tyres4U. Shipments of near sourced Cooper AT3 4WD tyres resulted in a rebound in sales of that key product. Cooper C5 car tyres also arrived. Near sou
Slide 11: H2 FY20 – Other Pandemic Responses
H2 FY20 – Other Pandemic Responses For personal use only Recalibrate inventory models – orders reduced as we expected demand to fall. Changing working conditions in response to lock downs and restrictions. Increased focus on OH&S and people caring for each other. Increasing remote selling and prepar
Slide 12: H2 FY20 Post-Pandemic Trading Highlights
H2 FY20 Post-Pandemic Trading Highlights For personal use only Marketing expenses and product procurement curtailed in response to the pandemic. Overheads generally managed to reflect activity levels and government support. Volume and revenue growth in wheels and budget tyres in Australia and NZ rec
Slide 13: Post Balance Date Event – Acquisition of Tyres4U
Post Balance Date Event – Acquisition of Tyres4U For personal use only As a result of the acquisition, the NTAW group becomes the largest independent tyre and wheel wholesaler in Australia and New Zealand. Acquisition Highlights The Group’s businesses now supply tyres and wheels for all segments (ex
Slide 14: Acquisition of Tyres4U – Expanded Distribution Footprint
Acquisition of Tyres4U – Expanded Distribution Footprint For personal use only 30 Distribution Centres NTAW Senior Management team with over 200 years 3rd Party Logistics combined tyre and wheel industry experience Over 600 employees in 3 countries 30 Distribution Centres operated by NTAW in 3 count
Slide 15: Outlook – NZ and South Africa Operations
Outlook – NZ and South Africa Operations For personal use only Obvious headwinds and risks from the pandemic but the industry is proving to be resilient in NZ. Agricultural conditions, truck movements and domestic travel providing tailwinds in NZ. Longer trading restrictions, decline in tourism and
Slide 16: Outlook – Australian Operations
Outlook – Australian Operations For personal use only Obvious headwinds and risks from the pandemic but the industry is proving to be resilient. Most Asian suppliers have advised that import prices will rise 1-3% over coming months. Shipping delays from China are affecting all tyre and wheel importe
Slide 17: NTAW & T4U Australia – A Platform for Growth
NTAW & T4U Australia – A Platform for Growth For personal use only Post T4U purchase strategic review concludes that re-organisation and integration will best serve the interests of all stakeholders – employees, customers, suppliers, shareholders and communities. Key objectives – retain people, cust
Slide 18: Building a New Growth Platform
Building a New Growth Platform For personal use only Outstanding Customer Experiences that recognise customer differences. B2B End User B2B Re-Seller B2C NTAW Australia Operations NTAW & T4U T4U NTAW & T4U Solid Plus T4U TBR Statewide Dynamic TRT OE Ag/OTR PLT Note – TRT includes some B2B customers
Slide 19: Growth Platform – Business Units
Growth Platform – Business Units For personal use only NTAW Limited Merged NEW (Aus. Operations) NEW NTAW & T4U T4U NTAW & T4U Solid Plus Statewide Dynamic T4U TBR* TRT* OE* Ag/OTR* PLT* Target OE segment – Target budget tyre Target agriculture and Target TBR segment caravans and trailers segment, a
Slide 20: Growth Platform – Exclusive Brands
Growth Platform – Exclusive Brands For personal use only NTAW Limited (Aus. Operations) NTAW & T4U T4U NTAW & T4U Solid Plus Statewide Dynamic T4U TBR TRT OE Ag/OTR PLT Plus a large range of other Brands sold by Business Units All Major Brands All Major Brands 17
Slide 21: Growth Platform – Shared Services
Growth Platform – Shared Services For personal use only NTAW Australia Business Units NTAW & T4U T4U NTAW & T4U Solid Plus T4U TBR Statewide Dynamic TRT OE Ag/OTR PLT Shared Services & Customer Service NTAW Australia Infrastructure Support Service Customer Finance & Marketing HR IT Operations Contac
Slide 22: Growth Platform – Logistics Rationalised
Growth Platform – Logistics Rationalised For personal use only Business Unit Head Office & Warehouse Regional Office & Warehouse Territory Branch & Warehouse Over time, we will combine warehouses and offices in Sydney, Melbourne, Adelaide, Brisbane and Perth (22 facilities to 13). By the end of FY22
Slide 23: Growth Platform – Key Milestones
Growth Platform – Key Milestones For personal use only Q2 Stakeholder engagement – employees, customers, suppliers. FY21 Business planning, systems specifications, business service resourcing, HR decisions, recruitments. Seek expressions of interest in Tyreright. System building, logistics integrati
Slide 24: Outlook – Growth Platform Impact
Outlook – Growth Platform Impact For personal use only We have updated H1 FY21 Operating EBITDA guidance to a range of $11.5m to $12.5m. H2 forecasts will be reconsidered after H1 results and progress with the business re-organisation. FY21 financial results expected to continue H1 trajectory, subje
Slide 25: Outlook – Shareholder value
Outlook – Shareholder value For personal use only National Tyre & Wheel Limited ASX: NTD Shares issued as part of the T4U acquisition increased issued share capital to NTD Share Price: Mar - Nov 2020 114,207,216 shares. 0.90 Group debt facilities include a Net Working Capital facility consisting of
Slide 26: Thank You
Thank You For personal use only Considering the disruption caused by the pandemic, the Company’s performance in FY20 was very gratifying. The resilience shown by the industry and the Company, the arrival of benefits from various strategic initiatives and the Tyres4U acquisition present an enticing m
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