Ntaw Holdings Limited. · ASX:NTD
Ntaw — National Tyre & Wheel — H1 FY2022 Earnings Presentation
19 slides from Ntaw's earnings presentation, Feb 22, 2022
Slide 1: Driving the Future: Financial Results Six Months to 31 December 2021
For personal use only Driving the Future Financial Results Six Months to 31 December 2021 22 February 2022
Slide 2: Agenda
Agenda For personal use only Item Page 1H22 Highlights 3 Performance & Strategy 6 Financial Results 13 Outlook 17 22 February 2022 2
Slide 3: NTAW – Strategy Execution, 1H22 Highlights
NTAW – Strategy Execution, 1H22 Highlights Further development of a new growth platform & strategic acquisitions For personal use only • National Tyre & Wheel Limited (“NTAW”) is the largest independent tyre and wheel importer and wholesale distributor in Australia and New Zealand. Growth, • 1H21 re
Slide 4: Financial Results Consistent with Expectations
Financial Results Consistent with Expectations Diversified earnings streams offset COVID and supply chain disruptions For personal use only • 1H22 Operating EBITDA of $20.4 million (1H21: $20.4 million) was generally consistent with expectations in a difficult market. • Adverse COVID and supply chai
Slide 5: 1H22 Financial Highlights
1H22 Financial Highlights A strong result in a difficult operating environment For personal use only Financial Highlights 1H22 1H21 Gross profit margin 29.0% 28.4% Operating costs as a % of revenue 22.1% 18.6% EBITDA ($ million) 17.4 20.8 EBITDA margin 6.9% 9.8% NPATA ($ million) 5.9 10.2 Basic EPS
Slide 6: Performance & Strategy
For personal use only Performance & Strategy 22 February 2022 6
Slide 7: Managing Through Disruptions
Managing Through Disruptions Adjusting inventory to changing lead times and managing margins For personal use only • NTAW’s diversified business portfolio saw growth in some units (particularly wheels and original equipment) offset by sluggish demand for consumer tyres. • COVID lockdowns early in 1H
Slide 8: Strategic Acquisitions
Strategic Acquisitions Continuing NTAW’s commercial vehicle tyre expansion For personal use only November 2021 November 2021 January 2022 22 February 2022 8
Slide 9: Expansionary Acquisitions
Expansionary Acquisitions Strategically important and EPS accretive For personal use only The acquisitions of Black Rubber and Carter’s substantially enhance NTAW’s value proposition to commercial customers. Key benefits from the acquisitions include: • Increasing the number of commercial fleets ent
Slide 10: Committing to Business Units Focussed on Winnable Segments
Committing to Business Units Focussed on Winnable Segments Scale and diversification across channels, customers and products For personal use only B2B - End User B2B - Reseller B2C - Retail Customer Mix Customer Mix Customer Mix • Caravan, truck trailer and farm equipment manufacturers • Tyre specia
Slide 11: Digital Transformation Driving Growth
Digital Transformation Driving Growth Phase 1 ERP “Go Live” May to August 2022, Phase 2 of the transformation includes more customer “Value Adds” in FY23 For personal use only Examples of Phase 2 Value Adding Platforms to increase sales, win new business and improve Digital Transformation Engage cus
Slide 12: Operational Growth and Synergy Initiatives
Operational Growth and Synergy Initiatives Future benefits from scale and diversity For personal use only .NTAW is executing the following initiatives to drive customer and revenue growth, as well as efficiencies and cost savings: • Business unit focus on specialisation and benefits of shared servic
Slide 13: Financial Results
For personal use only Financial Results 22 February 2022 13
Slide 14: NTAW Results Summary
NTAW Results Summary NTAW reported revenue of $251.5 million and Operating EBITDA of $20.4 million For personal use only Statement of Profit or Loss Key Operating Metrics 1H22 1H21 $'000 1H22 1H21 Gross profit margin 29.0% 28.4% Sales revenue 251,488 212,403 Operating costs as a % of revenue 22.1% 1
Slide 15: Balance Sheet
Balance Sheet Solid Balance Sheet supporting working capital needs and future growth For personal use only Statement of Financial Position Net Debt at 31 December 2021 of $45.3m. $'000 Dec-21 June-21 Net Debt to LTM Operating EBITDA 1.1 times. Current assets Net Debt to Equity + Debt ratio of 23.4%.
Slide 16: Capital Management
Capital Management 16% return on equity (LTM), interim dividend of 3.0 cps fully franked For personal use only The FY22 interim dividend has been declared at 3.0 cents per share, fully franked (at 30% tax rate). Ex date: 11 Mar-22 Dividend History 9.0 Record date: 14 Mar-22 DRP election date: 15 Mar
Slide 17: Outlook
For personal use only Outlook 22 February 2022 17
Slide 18: Outlook
Outlook Strong platform for disciplined growth and improved shareholder return For personal use only • NTAW expects significantly less COVID disruption to all businesses in 2H22. Continuing changes to NTAW’s product assortment, organisational changes at Tyres4U Australia, cross selling activities an
Slide 19: 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. As such, it has not been subject to an audit or an audit process or otherwise independently verified. This presentation may c
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