Motus Holdings Limited · JSE:MTH
Motus — FY2024 Earnings Presentation
59 slides from Motus's earnings presentation, June 2024
Slide 1: Annual results presentation
Annual results presentation summarised consolidated results for the year ended 30 June 2024
Slide 2: Agenda
Agenda Progress against key 1 FY2024 highlights 7 initiatives to reduce 13 Financial highlights inventory & vehicles for hire 2 Operating profit since 8 14 Guidance recap Financial overview unbundling 3 9 The South African vehicle 15 Utilisation of available cash Cash flows since unbundling market i
Slide 3: FY2024 highlights
Osman Arbee Ockert Janse van Rensburg FY2024 highlights Resilient trading Bolt-on UK Aftermarket Parts ESG Shareholder performance in international performance highlights returns challenging economies acquisitions Revenue up 7% Solway in the UK Exceeding expectations Achieved ROIC of 10,8% to R113,8
Slide 4: Operating profit since unbundling
Osman Arbee Ockert Janse van Rensburg Operating profit since unbundling (Rm) What Motus was What Motus has become CAGR of 8,7% from 2019 to 2024 5 723 5 503 5 029 3 838 3 620 2 136 2019 2020 2021 2022 2023 2024 Establishment period Growth period & stabilisation as a standalone listed entity from Nov
Slide 5: Cash flows since unbundling
Osman Arbee Ockert Janse van Rensburg Cash flows since unbundling Cash flows from operations1 Debt funding R26,8bn R3,2bn R8,3bn Shareholder returns 2 R7,6bn Investments Significant R6,6bn Vehicles for hire cash generation & responsible capital allocation! R4,1bn Net working capital R3,4bn Capital e
Slide 6: ESG milestones I Social
Osman Arbee Ockert Janse van Rensburg ESG milestones I Social Transformation Management level 2019 2024 Black representation in SA of 79% Black representation (2019: 73%) journey Our commitment to Top 31% 50% Black DP representation in SA of 58% transformation in SA has given Senior 36% 54% (2019: 4
Slide 7: ESG milestones I Environmental
Osman Arbee Ockert Janse van Rensburg ESG milestones I Environmental Total Fuel# Purchased Electricity# Water# June 2024 – June 2024 – June 2024 - ~20 071 million litres ~66 307 kWh ~659 608 million litres Reduced by ~9,8% Reduced by ~17,3% Increased by ~7,9% from 2019 from 2019 from 2019 7 # Assura
Slide 8: Key focus areas for business growth & sustainability
Osman Arbee Ockert Janse van Rensburg Key focus areas for business growth & sustainability To further enhance the sustainability of the Group, whilst reducing cyclicality & providing a counter to weak economies, three priorities have been identified: Refer slide 9 Refer slide 10 Refer slide 13 8
Slide 9: Key focus areas I Internationalisation
Osman Arbee Ockert Janse van Rensburg Key focus areas for business growth & sustainability I Internationalisation Tracking of progress: 22% 35% Target = 65%/35% June 2021 June 2024 EBITDA split 65% Achieved 78% − Improved EBITDA contribution from: − Aftermarket Parts segment: largely due to acquisi
Slide 10: Key focus areas I Diversification
Osman Arbee Ockert Janse van Rensburg Key focus areas for business growth & sustainability I Diversification Tracking of progress: 38% Target = 50%/50% June 2021 52% June 2024 EBITDA split 48% 62% Achieved − Improved EBITDA contribution from: − Aftermarket Parts segment: largely due to acquisitions
Slide 11: Acquisitions supporting Internationalisation & Diversification
Osman Arbee Ockert Janse van Rensburg Acquisitions supporting Internationalisation & Diversification International Aftermarket Parts businesses (UK & Asia) Internationalisation − Exceeded expectations on financial performance. Diversification − Generating significant free cash flows with fast-moving
Slide 12: Acquisitions supporting Internationalisation
Osman Arbee Ockert Janse van Rensburg Acquisitions supporting Internationalisation Expansion of UK Retail Expansion of Australia Retail − UK Retail vehicle revenue increased by 63% from 2019, − Australia Retail vehicle revenue doubled from 2019, which was also supported by acquisitions since which w
Slide 13: Key focus areas I Innovation
Osman Arbee Ockert Janse van Rensburg Key focus areas for business growth & sustainability I Innovation We have built a powerful innovation culture & capability that allows us to adapt to changing customer behaviour & proactively shape the shifting market by responding to unmet customer needs. Since
Slide 14: Strategic acquisitions
Osman Arbee Ockert Janse van Rensburg Strategic acquisitions The Group acquired the following significant bolt-on dealerships since 1 July 2023 for a total net cash purchase consideration of R553 million: Net cash Estimated Effective purchase annualised Acquisition Segment Transaction Date considera
Slide 15: Progress against key initiatives to reduce inventory & vehicles for hire
Osman Arbee Ockert Janse van Rensburg Progress against key initiatives to reduce inventory & vehicles for hire Initiatives Progress (Rm) Inventory Following OEM engagements, most reduced orders & provided financial assistance, such as FOB support, marketing support & retail support 32 302 (”cash on
Slide 16: Guidance recap
Osman Arbee Ockert Janse van Rensburg Guidance recap Financial measure Previous guidance provided1 Achievement Revenue Deliver single digit revenue growth Revenue up 7% EBITDA Deliver EBITDA in line with prior year EBITDA up 3% Earnings per share & EPS & HEPS will be down between 25% to 35% EPS & HE
Slide 17: The South African vehicle market
Osman Arbee Ockert Janse van Rensburg The South African vehicle market Motus sells one in five Actual Actual Projection Actual new passenger vehicles in South Africa 530k 532k 500k-520k 512k (72k out of a 335k market ) total total total total new vehicles new vehicles new vehicles new vehicles Motus
Slide 18: Passenger market share I Importer brands
Osman Arbee Ockert Janse van Rensburg Passenger market share I Importer brands Internal target 18% - 20% June Our Importer brands’ market share has been impacted by: Importer (%) 2024 − OEMs no longer manufacturing certain entry-level volume models, lower Hyundai 7,8 allocation of current production
Slide 19: Vehicle unit sales
Osman Arbee Ockert Janse van Rensburg Vehicle unit sales 12% % Units 2024 2023 change 20% New 115 899 126 826 (9) % new vehicles sold − SA 79 449 95 418 (17) 2024 − UK 22 901 21 698 6 68% − Australia 13 549 9 710 40 Pre-owned 86 724 85 752 1 − SA 65 463 64 963 1 7% − UK 15 056 15 798 (5) 17% − Austr
Slide 20: Revenue contribution per segment
Osman Arbee Ockert Janse van Rensburg Revenue contribution per segment % Rm 2024 2023 2 change Revenue 113 764 106 538 7 11% 15% 2% Segmental -22% +9% +2% +16% revenue 1 2024 72% 10% 2% 20% Segmental revenue 1,2 2023 24 596 19 275 84 404 91 836 2 520 2 567 12 406 14 387 68% Import and Distribution R
Slide 21: Operating profit contribution per segment
Osman Arbee Ockert Janse van Rensburg Operating profit contribution per segment % Rm 2024 2023 change Operating profit 5 503 5 723 (4) 13% 21% Segmental operating profit1 -45% +1% +12% +19% 2024 22% 44% 17% 23% Segmental 19% operating profit1 2023 1 416 780 2 550 2 585 1 141 1 274 1 043 1 240 41% Im
Slide 22: Financial highlights
Osman Arbee Ockert Janse van Rensburg Financial highlights Revenue 7% EBITDA 3% Operating profit 4% R113 764 million R8 310 million R5 503 million (2023: R106 538 million)1 (2023: R8 083 million) (2023: R5 723 million) Profit before tax 26% Earnings 28% Headline earnings 28% per share per shar
Slide 23: Financial highlights (cont.)
Osman Arbee Ockert Janse van Rensburg Financial highlights (cont.) Net asset value Equity to Cash flows from per share net debt structure operating activities 10 203 cents 57% : 43% R3 533 million per share (2023: 10 189 cents per share) (2023: 56% : 44%) (2023: outflow of R1 187 million) Return on
Slide 24: Financial overview
Osman Arbee Ockert Janse van Rensburg Financial overview Extracts from Statement of Profit or Loss for the year ended 30 June 2024 % Rm 2024 2023 change Revenue 113 764 106 538 7 EBITDA 8 310 8 083 3 EBITDA margin (%) 7,3 7,6 Operating profit 5 503 5 723 (4) Operating margin (%) 4,8 5,4 Comments − R
Slide 25: Financial overview: revenue streams
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Revenue streams for the year ended 30 June 2024 Revenue contribution per stream % Rm 2024 20231 change 11% 10% Sale of new vehicles 51 727 49 472 5 23% 21% Sale of pre-owned vehicles 23 933 23 327 3 Sale of parts and other goods1 26 05
Slide 26: Financial overview (cont.)
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Extracts from Statement of Profit or Loss for the year ended 30 June 2024 (cont.) % Rm 2024 2023 change Operating profit 5 503 5 723 (4) Impairment of property, plant and equipment, net of profit/(losses) on disposal (27) 17 (>100) Oth
Slide 27: Financial overview (cont.)
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Extracts from Statement of Profit or Loss for the year ended 30 June 2024 (cont.) % Rm 2024 2023 change Profit before tax 3 218 4 357 (26) Income tax expense (739) (947) (22) Profit for the year 2 479 3 410 (27) Attributable to non-con
Slide 28: Earnings & dividends
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Earnings & dividends for the year ended 30 June 2024 % 2024 2023 change Earnings (Rm) 2 436 3 354 (27) Headline earnings (Rm) 2 484 3 416 (27) Weighted average number of shares (millions) 168 167 1 Basic earnings per share (cents) 1 45
Slide 29: Business segment overview - Import and Distribution
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Business segment overview - Import and Distribution % change 2024 2023 2023 HY1 2024 HY2 2024 audited audited audited Revenue (Rm) 9 954 9 321 19 275 24 596 (22) Operating profit (Rm) 377 403 780 1 416 (45) Operating margin (%) 3,8 4,3
Slide 30: Import and Distribution (cont.)
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Business segment overview - Import and Distribution (cont.) Channel sales split Other considerations 10% 22% − The importer brands continue to face market pressure & are being negatively impacted by: − the slow-down in consumer demand;
Slide 31: Business segment overview - Retail and Rental
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Business segment overview - Retail and Rental % change 2024 2023 2023 HY1 2024 HY2 2024 audited audited audited Revenue (Rm) 46 129 45 707 91 836 84 404 9 Operating profit (Rm) 1 262 1 323 2 585 2 550 1 Operating margin (%) 2,7 2,9 2,8
Slide 32: Retail and Rental: SA Retail and Vehicle Rental
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Business segment overview - Retail and Rental (cont.) SA Retail Revenue & operating profit decreased by 5% & 34%, respectively, mainly due to reduced volumes as a result of reduced consumer demand & increased competition. The business
Slide 33: Retail and Rental: UK Retail
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Business segment overview - Retail and Rental (cont.) UK Retail Revenue & operating profit increased by 21% & 34%, respectively. − Both the passenger & commercial divisions delivered strong results & were positively impacted by: − incr
Slide 34: Retail and Rental: Australia Retail
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Business segment overview - Retail and Rental (cont.) Australia Retail Revenue & operating profit increased by 42% & 54%, respectively. − Improved performance is attributed to increased sales & improved margins as a result of: − the co
Slide 35: Business segment overview - Mobility Solutions
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Business segment overview - Mobility Solutions % change 2024 2023 2023 HY1 2024 HY2 2024 audited audited audited Revenue1 (Rm) 1 355 1 212 2 567 2 520 2 Operating profit2 (Rm) 616 658 1 274 1 141 12 Comments − Revenue increased by 2% m
Slide 36: Business segment overview - Aftermarket Parts
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Business segment overview - Aftermarket Parts % change 2024 2023 2023 HY1 2024 HY2 2024 audited audited audited Revenue (Rm) 7 172 7 215 14 387 12 406 16 Operating profit (Rm) 605 635 1 240 1 043 19 Operating margin (%) 8,4 8,8 8,6 8,4
Slide 37: Aftermarket Parts: South Africa
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Business segment overview - Aftermarket Parts (cont.) South Africa Revenue & operating profit decreased by 1% & 16%, respectively due to: − reduced customer demand; − poor inventory availability; − delays at the ports impacted lead tim
Slide 38: Aftermarket Parts: International
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Business segment overview - Aftermarket Parts (cont.) International Revenue & operating profit increased by 35% & 41%, respectively. UK Asia - Revenue & operating profit increased by 48%, with the MPD business − Revenue declined by 9%,
Slide 39: Statement of Financial Position: Assets
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Statement of Financial Position as at 30 June 2024 Rm % Assets 2024 2023 change Goodwill and intangible assets 6 490 6 572 (1) Investments in associates and joint ventures 271 277 (2) Property, plant and equipment 8 190 8 309 (1) Right
Slide 40: Net working capital
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Net working capital as at 30 June 2024 % Rm 2024 2023 change Inventories 27 379 32 302 (15) Trade and other receivables 7 451 7 143 4 Derivatives (182) 306 (>100) Provisions (962) (1 115) (14) Trade and other payables (20 625) (24 274)
Slide 41: Statement of Financial Position: Liabilities
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Statement of Financial Position as at 30 June 2024 (cont.) Rm % Liabilities 2024 2023 change Contract liabilities (service, maintenance and warranty contracts) (2 930) (3 086) (5) Lease liabilities (3 533) (3 768) (6) Core debt (refer
Slide 42: Core debt and net debt
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Statement of Financial Position as at 30 June 2024 (cont.) Rm % Liabilities 2024 2023 change Core debt (11 159) (12 042) (7) Floorplans from financial institutions (2 685) (1 670) 61 Net debt (13 844) (13 712) 1 Comments − Core debt de
Slide 43: Statement of Cash Flows
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Statement of Cash Flows for the year ended 30 June 2024 Rm 2024 2023 0 Cash generated from operations before movements in net working capital and vehicles for hire 7 563 7 837 Movements in net working capital 797 (5 777) Movements in v
Slide 44: Statement of Cash Flows (cont.)
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Statement of Cash Flows for the year ended 30 June 2024 (cont.) Rm 2024 2023 0 Cash flows from operating activities 3 533 (1 187) Cash outflow on the acquisitions and disposals of businesses (514) (4 641) Capital expenditure (808) (572
Slide 45: Cash flow I Generation & utilisation
Osman Arbee Ockert Janse van Rensburg Financial overview (cont.) Cash flow I Generation & utilisation Rise Fall Total - (Rm) 797 (2 221) (2 221) 393 ( 778) ( 514) ( 808) ( 237) (1 131) 20 3 533 7 563 863 Cash Movements Movements Net Dividend Taxation Cash flows Acquisition Capital Additions Dividend
Slide 46: Utilisation of available cash in the short term
Osman Arbee Ockert Janse van Rensburg Utilisation of available cash in the short term Strategic Net working capital & bolt-on vehicles for hire Investment in Capital acquisitions innovation & expenditure digitisation Inventory levels have Selective bolt-on largely normalised, with Dividends acquisit
Slide 47: Growth strategy I Overview
Osman Arbee Ockert Janse van Rensburg Growth strategy I Overview Key to supporting earnings growth & value creation for stakeholders is our on-going strategic initiatives of internationalisation & diversification, together with organic business initiatives & selective bolt-on acquisitions. United Ki
Slide 48: Prospects for the six months ending December 2024
Osman Arbee Ockert Janse van Rensburg Prospects for the six months ending 31 December 2024 − We expect steady financial performance comparing the six months ending 31 December 2024 to the six months ended 31 December 2023: − Single digit revenue growth. − Marginal operating profit growth. − Low doub
Slide 49: Closing remarks
Osman Arbee Ockert Janse van Rensburg Closing remarks − Our intentions for the Group have been clear since the time of our listing in 2018 – to deliver sustainable growth & dependable value creation to our stakeholders. − To achieve this, our initial priority was to establish the "One Motus" identit
Slide 50: Thank you!
Thank you! We would like to thank all staff members, customers, suppliers, funders, financial institutions who provided financing to our customers, shareholders & the Board members for their support during these challenging times.
Slide 51: Appendices
Motus — Appendices
Slide 52: Financial overview: revenue and EBITDA
Financial overview Key Profit or Loss highlights (Rm) (Rm) Revenue EBITDA 113 764 106 538 91 978 87 205 8 310 8 083 73 417 6 785 5 302 4 082 2020 2021 2022 2023¹ 2024 2020 2021 2022 2023 2024 1 Revenue in 2023 has been restated due to the adoption of IFRS 17. 52 Impacted by COVID-19.
Slide 53: Financial overview: operating profit and profit before tax
Financial overview Key Profit or Loss highlights (cont.) (Rm) (Rm) Operating Profit profit before tax 4 473 4 357 5 723 5 503 5 029 3 218 2 860 3 838 2 136 541 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Impacted by COVID-19. 53
Slide 54: Our strategic initiatives
Our strategic initiatives Enhance Improve Maintain financial performance technology solutions market leadership & value creation Improve financial performance & Leverage existing & form new Maintain market share & achieve our financial targets to strategic partnerships to deliver competitiveness in
Slide 55: Resilient business model
Resilient business model 1 2 3 4 5 6 7 Diversified Integrated Unrivalled Generation Varied Organic Highly automotive business scale in of high income growth experienced business model South Africa cash flows streams trajectory team 1. Diversified (non-manufacturing) business in the automotive 5. Inc
Slide 56: Segments: where we play
Where we play 0 0-6 1-6 >6 years years years years Pre-owned vehicle market Pre-owned vehicle market New vehicle market Life of new vehicle & Trade-in & Trade-in Importation, distribution & Recurring touchpoints after Second sale of vehicle Further vehicle servicing & first sale of vehicle, vehicle
Slide 57: Diversified automotive business
Diversified automotive business Provider of service, 3 maintenance & extended warranty plans Importer & distributor 1 of passenger & light 8 commercial vehicles, Distributor, wholesaler & parts & panels retailer of parts & accessories Provider of fleet management 6 services Workshops, parts & servic
Slide 58: Segmental overview
Segmental overview Import and Distribution Retail and Rental Mobility Solutions Aftermarket Parts − Exclusive South African importer of − South Africa − Industry leader in the development, − Distributor, wholesaler & retailer of Hyundai, Renault, Kia & Mitsubishi − Represent 24 OEMs & 34 brands mana
Slide 59: Disclaimer
Disclaimer This presentation is confidential and is being provided for information purposes only to existing and prospective investors in Motus Holdings Limited (“Motus”). No representation or warranty, expressed or implied, is made as to the accuracy or completeness of the information contained her