Ntaw Holdings Limited. · ASX:NTD
Ntaw — Investor Presentation (August 2021)
31 slides from Ntaw's investor presentation, Aug 31, 2021
Slide 1: 2021 Financial Year Results Presentation
Driving the Future 2021 Financial Year Results Presentation 31 August 2021
Slide 2: Agenda
Agenda Driving the Future Item Page 1. FY21 Highlights 3 2. Overview 7 3. Financial Results 16 4. Operational Performance 21 5. Strategy 23 6. Outlook 27 2021 Financial Year Results 2
Slide 3: FY21 Highlights
Driving the Future FY21 Highlights 2021 Financial Year Results 3
Slide 4: Key Investment Highlights
Key Investment Highlights Building on a platform of scale and diversity Driving the Future • National Tyre & Wheel Limited (“NTAW” or “the Company”) (ASX: NTD) is the largest independent tyre and wheel importer and wholesale distributor in Australia and New Zealand. • NTAW is a full service distribu
Slide 5: Financial Highlights
Financial Highlights Strong result reflects Tyres4U acquisition and growth momentum in existing businesses Driving the Future Financial Highlights FY21 FY20 Gross profit margin 29.8% 26.0% Operating costs as a % of revenue 19.8% 16.9% EBITDA ($ million) 46.1 12.2 EBITDA margin 10.0% 7.7% NPATA ($ mi
Slide 6: Operational Highlights
Operational Highlights Strong platform for future growth Driving the Future Solid Foundation • Strong FY21 result assisted by surging demand for motor vehicle accessories, higher gross profits, regional economic activity and truck movements. • Growth strategy delivering sustainable growth and profit
Slide 7: Overview
Driving the Future Overview 2021 Financial Year Results 7
Slide 8: National Tyre & Wheel
National Tyre & Wheel Australia’s largest independent tyre and wheel importer and wholesale distributor Driving the Future NTAW is the largest independent tyre and wheel importer/wholesale distributor in Australia and New Zealand with a full service offering of over 100 brands and 50,000 SKU’s to ov
Slide 9: Building Leading Brands
Building Leading Brands Specialty businesses winning in market segments Driving the Future Building Leading Brands Delivering tyre and wheel solutions for Delivering passenger, SUV, light truck and Delivering original equipment tyre and wheel Delivering wheel and tyre and management all segments, wi
Slide 10: Experienced Leadership Team and Board
Experienced Leadership Team and Board Successfully navigating uncertain times Driving the Future The Board, leadership team, shared services managers and senior executives have launched businesses and successfully managed them through all economic cycles over the past 30 years. This team has managed
Slide 11: Cementing National Footprint
Cementing National Footprint Australia’s largest distribution footprint Driving the Future NTAW GROUP : DISTRIBUTION FOOTPRINT NORTHERN TERRITORY QUEENSLAND • 28 distribution centres in 3 countries WESTERN AUSTRALIA • Over 2.5m tyres and wheels sold each year SOUTH AUSTRALIA NEW SOUTH NEW ZEALAND •
Slide 12: Expanding Scale and Diversification
Expanding Scale and Diversification Scale and diversification across channels, customers and products Driving the Future Building Leading Brands B2B B2B B2C End User Re-Seller Retail Customer Mix Customer Mix Consumers (enthusiasts, • Caravan, truck trailer and farm equipment manufacturers • Tyre sp
Slide 13: FY21 Segmented Performance
FY21 Segmented Performance Diversified revenue drivers and a wide range of over 3,000 customers Driving the Future FY21 Revenue South Africa New Zealand Commercial Tyres 4WD Wheels Commercial Tyres include truck, bus, industrial, off-the-road and agricultural tyres. Consumer Tyres include passenger
Slide 14: Leveraging Blue-Chip Supplier Base
Leveraging Blue-Chip Supplier Base Diverse long-term supplier relationships Driving the Future FY21 Supplier Mix by Revenue Key exclusive supplier relationships have existed for decades and are underpinned by both parties expectations of performance being Cooper family (ex. MT) consistently met rath
Slide 15: Long Term Cooper Agreement
Long Term Cooper Agreement Goodyear and Cooper - business as usual Driving the Future • Cooper and NTAW subsidiaries, ETD (Australia and NZ), are parties to a long term supply agreement for Cooper and Mastercraft brands that, in the absence of renewal, is set to end in 2027. • Cooper branded product
Slide 16: Financial Results
Driving the Future Financial Results 2021 Financial Year Results 16
Slide 17: NTAW Results Summary
NTAW Results Summary Driving the Future Statement of Profit or Loss FY21 FY20 $’000 Sales revenue 461,533 158,857 Cost of goods sold (324,023) (117,594) Key Operating Metrics FY21 FY20 Gross profit 137,510 41,263 29.8% 26.0% Gross profit margin 29.8% 26.0% Operating costs as a % of revenue 19.8% 16.
Slide 18: FY21 – Strong Tailwinds
FY21 – Strong Tailwinds Surging consumer demand, record harvests, stable AUD:USD Driving the Future Australia and New Zealand • Less intense price competition as competitors rebuilt inventories run down in Q4 of FY20 in response to the COVID-19 pandemic. • Favourable movements, and stability, in the
Slide 19: Balance Sheet
Balance Sheet Solid balance sheet to support future growth Driving the Future Statement of Financial Position June-21 June-20 $’000 Current assets Cash and cash equivalents 28,905 25,859 Comments Receivables 71,807 23,215 Inventory 101,025 41,487 Other current assets 5,100 637 • NTAW had cash of $28
Slide 20: Capital Management
Capital Management 24% return on equity, full year dividends of 8.0 cps fully franked Driving the Future The FY21 final dividend has been declared at 5.0 cents per share, fully franked (at 30% tax rate). NTAW Dividend History Ex date: 17 Sept-21 Record date: 20 Sept-21 9.0 DRP election date: 21 Sept
Slide 21: Operational Performance
Driving the Future Operational Performance 2021 Financial Year Results 21
Slide 22: FY21 – Strategic and Tactical Wins
FY21 – Strategic and Tactical Wins Key operational objectives achieved in FY21 Driving the Future • The purchase of the Tyres4U (Australia and NZ) businesses in August 2020 delivered NTAW diversity and scale. • The re-organisation of ETD and Tyres4U (Australia) sales teams led to improved performanc
Slide 23: Strategy
Driving the Future Strategy 2021 Financial Year Results 23
Slide 24: Investing in Innovation and Opportunity
Investing in Innovation and Opportunity Our vision is to be the tyre and wheel industry leader in digital transformation Driving the Future Digital transformations Customers enjoying – VR, AI, Data dealing with one or Outcomes for NTAW and customers from digital transformation Analytics, payment mor
Slide 25: Digital Transformation Milestones
Digital Transformation Milestones Harnessing technology to deliver innovative value-adding solutions for all stakeholders Driving the Future • Microsoft Dynamics has been selected as the ERP platform for NTAW to lead the tyre and wheel industry in digital transformation. • Focussing on excellence, N
Slide 26: FY22 – Other Initiatives
FY22 – Other Initiatives Maintaining momentum Driving the Future • Sales and Operations process enhancement program – improving and unifying NTAW procurement and logistics. • Tyreright “Bright Future” program – revitalise and operate retail stores as a separate entity. • Align customer relationship
Slide 27: Outlook
Driving the Future Outlook 2021 Financial Year Results 27
Slide 28: Outlook
Outlook Strong platform for disciplined growth and improved shareholder return Driving the Future NTAW has previously announced that it does not expect the unusually favourable market conditions of FY21 to prevail in FY22. Having regard to the uncertain impact of recent lock downs and shipping delay
Slide 29: Important Information and Disclaimer
Important Information and Disclaimer Driving the Future This presentation may contain certain unaudited financial information in relation to National Tyre & Wheel Limited. As such, it has not been subject to an audit or an audit process or otherwise independently verified. This presentation may cont
Slide 30: Appendix
Driving the Future Appendix 2021 Financial Year Results 30
Slide 31: NTAW Formation History
NTAW Formation History Driving the Future Smith’s Tyre ETD company 51% of Retail Group established Statewide Tyres4U Tyres4U NZ Tyres & Tube Dynamic 50% of MPC acquires - to focus IPO Tyre Service (Aust. and NZ) established established Wheel Co acquired Cooper Aust. on 4WD acquired acquired acquired