Ntaw Holdings Limited. · ASX:NTD
Ntaw — FY2024 Earnings Presentation
22 slides from Ntaw's earnings presentation, Aug 28, 2024
Slide 1: Financial Results Year ended 30 June 2024
NTAW/ HOLDINGS LIMITED Financial Results Year ended 30 June 2024
Slide 2: Agenda
Item Page FY24 Highlights 3 Review of Operations 8 Financial Results 15 Outlook 19
Slide 3: FY24 Highlights
FY24 Highlights
Slide 4: Important growth platform projects completed FY24 and Operating Conditions
Important growth platform projects completed FY24 Operating Conditions ▪ Australian wholesale businesses (ETD, Tyres4U and Dunlop) combined ▪ Low economic growth and weak consumer sentiment constraining to form NTAW wholesale – offering a better customer experience. demand. ▪ Dunlop distribution in
Slide 5: FY24 Operating EBITDA $42.3 million: focus on profit improvement
FY24 Operating EBITDA $42.3 million (FY23: $38.8 million) Focus on profit improvement ▪ FY24 revenue down from FY23 as the Group reduced the number of ▪ Profits from 8 business units. Losses mainly in Tyres4U AU and Tyreright brands sold. Operations Pty Ltd. ▪ However, FY24 gross profit and margin w
Slide 6: Strong Balance Sheet; AASB 16 adjustments and tax impact on NPATA
AASB 16 adjustments & tax impact NPATA in FY24 Strong Balance Sheet ▪ FY24 Operating EBITDA of $42.3 million, up on FY23 by 9.1% ▪ Net debt of $52.2 million on 30 June 2024 (cash and cash equivalents of $38.9 million). ▪ In FY24, AASB 16 adjustments added $3.1 million to FY24 interest and depreciati
Slide 7: Operating EBITDA, Channel Revenue and Geographic Revenue Segments
Operating EBITDA Channel Revenue Segments Geographic Revenue Segments
Slide 8: Review of Operations
Review of Operations
Slide 9: Key operational events during FY24
▪ In September 2023, Exclusive Tyre Distributors (ETD) signed an Agreement to distribute the Dunlop brand of tyres, commencing in New Zealand in November 2023 and Australia in April 2024. ▪ In October 2023, Tyres4U AU reduced its brand portfolio as it stopped selling brands imported by competitors a
Slide 10: Dunlop distribution
▪ Dunlop is an iconic Australian brand. ▪ Dunlop fills the premium consumer tyre gap in the NTAW portfolio. ▪ Distribution introduces NTAW to new customers, including a network of Dunlop ▪ The T4U brand rationalisation has removed substitutable products, Super Dealers and Goodyear Autocare tyre stor
Slide 11: Remedial action for Tyres4U AU and Tyreright losses
The following remedial action was taken in response to losses in Tyres4U AU and Tyreright Operations Pty Ltd: • In October 2023, Tyres4U AU stopped: - selling lower margin brands imported by competitors; and - importing brands that were sold in low volumes or delivered low margins; • In November 202
Slide 12: Black Rubber retail hub in Perth WA
▪ Black Rubber commenced in WA in 2014 and is in the process of expanding its operations to other parts of Australia. ▪ Black Rubber operates six commercial retail tyre stores, focussing on supplying truck and bus radial (TBR) tyres to fleet owners. ▪ These stores act as a “hub” with tyre fitters tr
Slide 13: Black Rubber to purchase retread factory and Adelaide tyre hub
Black Rubber agrees to purchase retread factory and Adelaide tyre hub ▪ In July and August 2024, Black Rubber entered into Agreements to purchase from Goodyear a retreading plant in Brooklyn (Melbourne) and a commercial tyre retail store in Wingfield (Adelaide). ▪ Completion of these Agreements is s
Slide 14: Board and management changes
Mr Chris Hummer (Dynamic Wheel Co CEO and an Executive Director) and Mr Ken Gunderson-Briggs (also Chairman of the Audit & Risk Committee and the Remuneration Committee) were appointed to the NTAW Holdings Board in December 2023, and Mr Tynan Young was appointed in January 2024. Sadly, Mr Rob Kent c
Slide 15: Financial Results
Financial Results
Slide 16: Income statement and comments
*NPATA includes non-recurring and abnormal expenses of $2.4 million, as summarised on page 7. After adjusting for these expenses, FY24 Operating EBITDA was $42.3 million, Operating NPATA was $6.1 million and Operating NPAT was $3.6 million. Comments ▪ Improved gross margins and a less than 2% growth
Slide 17: Balance sheet comments
Comments ▪ On 30 June 2024, NTAW reported total assets of $413.1 million and net assets of $117.3 million, being $0.87 per share. ▪ NTAW’s gross debt position was $91.0 million and it held cash of $38. 9 million at 30 June 2024. ▪ Net tangible assets per ordinary share of $0.53 at 30 June 2024. ▪ 30
Slide 18: Dividends and shares on issue
▪ There are 134,146,094 shares on issue at 30 June 2024. ▪ No final dividend will be declared in respect of the FY24 financial result. 9.0 ▪ NTAW currently has $20.3 million franking credits available. 8.0 ▪ The NTAW Board is aware of the importance of the Company’s dividends to shareholders and 7.0
Slide 19: Outlook
NTAVW/ Outlook
Slide 20: Manufacturers reconsider vertical integration
• Manufacturers reconsider vertical integration – ▪ Reduce product portfolios to remove internal competition and help suppliers of “core brands” build equity. leading to more intermediation (e.g. third- ▪ Operate the largest distribution platform in Australia and New Zealand. party distributors) ▪ A
Slide 21: FY25 outlook and revenue growth drivers
▪ The group is forecasting conservative sales growth, reflecting consumer sentiment and low growth economies expected in Australia and New Zealand, and careful management of discretionary costs. ▪ Revenue growth is expected from: - full year of Dunlop sales in FY25 (3 months in FY24); - the sale of
Slide 22: Disclaimer
This presentation may contain certain unaudited financial information in relation to NTAW Holdings Limited (“NTAW Holdings” or “Company” or “Group”). As such, it has not been subject to an audit or an audit process or otherwise independently verified. This presentation may contain forward-looking st