Motus Holdings Limited · JSE:MTH
Motus — Investor Presentation (September 2018)
25 slides from Motus's investor presentation, September 2018
Slide 1: Investor Presentation September 2018
INVESTOR PRESENTATION SEPTEMBER 2018 1
Slide 2: Agenda
AGENDA 1 Rationale for the Unbundling 2 Motus – Business Overview 3 Business Strategy 4 Financial Management Framework 5 Q&A 3
Slide 3: 1. Rationale for the Unbundling
1. RATIONALE FOR THE UNBUNDLING 4
Slide 4: Rationale for the Unbundling
RATIONALE FOR THE UNBUNDLING Today, MOTUS and Imperial Logistics function as large independent multinational operations Business split by revenue – FY June 2018 40% ZAR51bn Vision – To improve peoples’ lives by envisioning, innovating and creating (USD 3.7bn)* new avenues of access to leading edge m
Slide 5: Unbundling Timeline
UNBUNDLING TIMELINE 20 September 22 November 27 November Formal 14 November Listing of Motus Accounts at submission of Final information Shares on the CSDPs/Brokers Pre-Listing publication JSE updated Statement to JSE September October November 2018 2018 2018 30 October 21 November 27 September Impe
Slide 6: 2. Motus – Business Overview
2. MOTUS – BUSINESS OVERVIEW 7
Slide 7: Motus Financial Overview
MOTUS FINANCIAL OVERVIEW Operating Turnover EBITDA Total Assets Net debt Income ZAR 78bn ZAR 4.9bn ZAR 3.6bn ZAR 36bn ZAR 5.8bn USD 5.7bn* USD 0.4bn* USD 0.3bn* USD 2.6bn* USD 0.4bn* South Africa Margin Margin Net debt / EBITDA 69% 6.3% 4.6% 1.2x 31% 20%-30% from 97% Tangible International new vehic
Slide 8: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Diversified (non-manufacturing) business in the automotive sector with a leading position in South Africa and selected international 1 presence (UK and Australia) Fully integrated business model across the vehicle value chain: Import and Distribution, Retail and Rental, Mot
Slide 9: Diversified Business in the Automotive Sector
1 DIVERSIFIED BUSINESS IN THE AUTOMOTIVE SECTOR Motor-Related Financial Import and Distribution Retail and Rental Aftermarket Parts Services Revenue (ZAR’m) 20 128 62 759 2 166 6 632 Operating income 788 3% 41% margin margin (ZAR’m) 4% margin 1 687 margin 889 447 7% > Exclusive South African importe
Slide 10: Fully Integrated Business Model
2 FULLY INTEGRATED BUSINESS MODEL Differentiated value proposition > Unique in nature > Difficult for competitors to replicate > Provides opportunities for deeper penetration of the customer base > Enables the extension of the customer life cycle within the Motus Group > Creates multiple customer to
Slide 11: Import and Distribution
2 IMPORT AND DISTRIBUTION > Hyundai > Own Dealerships (MOTUS 70%) Vehicles > KIA > Independent Dealers (30%) > Renault > Vehicle Rental (MOTUS) Parts > Mitsubishi $ > Vehicle Rental (Other Independents) Market share ~15% ~ 15% Market Share ~ 1.1 Mil vehicle parc Panel Financial Services Integration
Slide 12: Retail and Rental
2 RETAIL AND RENTAL 4 Importer OEM Brands (MOTUS) > Hyundai > KIA 356 dealerships in South Africa and > Renault > Mitsubishi a number of digital platforms > Retail Outlets United Kingdom > Parts, Panels & Service 90 Dealerships > Motor Related Vehicle Services > 14 passenger brands > 12 commercial b
Slide 13: Motor-Related Financial Services
2 MOTOR-RELATED FINANCIAL SERVICES MRFS Value Added Products (VAPS) Vehicle Asset Finance (VAF) Fleet Consumer Mobility > Service and Maintenance Plans (Through finance alliances) (Through finance alliances) > Digital VAPS and comprehensive > Extended Warranties > Instalment sale > Procurement and f
Slide 14: Motor-Related Financial Services
2 MOTOR-RELATED FINANCIAL SERVICES Importers Construct Compelling Value Proposition Retention / Churn Retail of Motor Vehicle Campaigns Financial Services > Access to bank credit > Access to the dealership network > Access to market intelligence (data) MOTUS Sales CSI & Data > Utilisation of market
Slide 15: Innovation Focus
2 INNOVATION FOCUS Committed to remaining relevant by being a driver of disruption in our industry: > Mobility as a Service (MaaS) > Connected vehicles through telemetry analytics > Digitization of the car buying and ownership value chain > Data analytics, Ai & Machine learning Group innovation hub:
Slide 16: Aftermarket Parts
2 AFTERMARKET PARTS Consumer Fitment Resellers $ Key Opportunities Wholesalers > Significant margin in the entire chain > Opportunity to participate in a greater Manufacturer portion of the value chain excluding Distributors manufacturing > Total South African vehicle parc 12.2 million vehicles Agen
Slide 17: Unrivalled Scale in South Africa Underpinning a Differentiated Value Proposition
3 UNRIVALLED SCALE IN SOUTH AFRICA UNDERPINNING A DIFFERENTIATED VALUE PROPOSITION With an unparalleled scale and footprint in South Africa, MOTUS provides the essential connection between OEMs, customers and business partners 1 356 dealerships in South Africa Providing clients and consumers with ex
Slide 18: High Free Cash Flow Generation and Sustainable Earnings
4 HIGH FREE CASH FLOW GENERATION AND SUSTAINABLE EARNINGS REVENUE GROWTH ATTRACTIVE OPERATING PROFIT MARGINS Revenue (ZARm) (ZARm) x % margin 5.0% 5.0% 4.6% 77 659 3 593 65 538 66 129 3 339 3 292 Jun-16 Jun-17 Jun-18 Jun-16 Jun-17 Jun-18 HIGH FREE CASH FLOW CONVERSION1 RETURN ON INVESTED CAPITAL 88%
Slide 19: Defined Organic Growth Through Portfolio Optimisation
5 DEFINED ORGANIC GROWTH THROUGH PORTFOLIO OPTIMISATION Pre 2014 SWT Midas ,Alert Engine Orwell Trucks Limited S&B Commercials AMH1 Group Value Added Products Pentagon Motor SWT Group Arco (Taiwan) Parts & Turbo Exchange • Mercedes-Benz truck • Import & distribution and Services Holdings • Auto deal
Slide 20: Highly Experienced Management Team
6 HIGHLY EXPERIENCED MANAGEMENT TEAM With deep industry knowledge and a proven track record with years of collective experience Organisational Structure Osman Arbee Chief Executive Officer 14 yrs. Retail and Motor-related Import and Distribution Aftermarket Parts Shared Services Rental Financial Ser
Slide 21: 3. Business Strategy
3. BUSINESS STRATEGY 22
Slide 22: Business Strategy
BUSINESS STRATEGY Objective Key strategic actions > Grow market share by strengthening the core business, optimising each business segment and driving further integration across the value chain. Maintain > Achieve economies of scale through selective acquisitions in international markets that comple
Slide 23: 4. Financial Management Framework
4. FINANCIAL MANAGEMENT FRAMEWORK 24
Slide 24: Financial Management Framework
FINANCIAL MANAGEMENT FRAMEWORK The MOTUS financial guidelines include the following: > Net debt to equity average 55% - 75% Leverage > Net debt to EBITDA less than 2.00x > South Africa: Target ROIC of WACC plus 3% Capital Management > International: Target ROIC of WACC plus 2% > Interest rate risk:
Slide 25: Powering Progress
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Motus Holdings — Investor Presentation (September 2018) on 6ix