Ntaw Holdings Limited. · ASX:NTD
Ntaw — National Tyre & Wheel — FY2020 Earnings Presentation
18 slides from Ntaw's earnings presentation, Aug 25, 2020
Slide 1: Financial Results 2020 Financial Year
For personal use only Financial Results 2020 Financial Year 25 August 2020 1
Slide 2: 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 (“NTD” and the “Company”). As such, it has not been subject to an audit or an audit process or otherwise independently verif
Slide 3: Results Highlights
Results Highlights For personal use only Operating EBITDA* of $11.8m (ahead of June 2020 guidance). *Reported EBITDA bridge to Operating EBITDA Pre COVID-19 pandemic volume down due to competitive pressure, sluggish demand for premium products and changing the product mix in South Africa. $m FY20 FY
Slide 4: Financial Results
Financial Results For personal use only FY20 Operating EBITDA*: $11.8m compared to FY19: $12.7m. * See page 3 FY20 NPATA: $5.7m compared to FY19 NPATA of $8.0m. FY20 Revenue: $158.9m compared to FY19 of $168.4m. FY20 gross margin: 26.0% compared to FY19 gross margin of 28.7% ** Net assets at 30 June
Slide 5: Summary of Results
Summary of Results For personal use only Statement of Profit or Loss Comments $'000 FY20 FY19 Sales revenue 158,857 168,365 Gross profit margin of 26% decreased from prior year due to an inability to pass on Cost of goods sold (117,594) (120,060) certain price increases to customers and a change i
Slide 6: Balance Sheet & Key Operating Metrics
Balance Sheet & Key Operating Metrics For personal use only Statement of Financial Position Comments $'000 June-20 June-19 Current assets The Group had cash of $25.9m at 30 June 2020, up from $19.6m at 30 June 2019. Cash and cash equivalents 25,859 19,554 Receivables 23,215 24,679 Inventory 41,487
Slide 7: H1 FY20 Pre-Pandemic Strategy
H1 FY20 Pre-Pandemic Strategy For personal use only Product assortment changes including more near sourced passenger tyres and exclusive importation of the budget Blacklion range. Re-tooling Asian suppliers to produce 4WD products for Australia, NZ and South Africa. Negotiating for production of pri
Slide 8: H1 FY20 Pre-Pandemic Trading Highlights
H1 FY20 Pre-Pandemic Trading Highlights For personal use only Volume growth in ETD New Zealand, Dynamic Wheels and Statewide Tyre Distribution offset by contraction in ETD Australia, TLS (South Africa) and, to a lesser extent, MPC. Some selling prices fell at ETD Australia and South Africa as compet
Slide 9: H2 FY20 Post-Pandemic Strategy
H2 FY20 Post-Pandemic Strategy For personal use only Purchase of Industrial Tyre Service in Western Australia and commencement of due diligence to acquire Tyres4U. Shipments of near sourced Cooper AT3 4WD tyres began to arrive, along with Cooper C5 car tyres. Statewide Tyre Distribution (East Coast)
Slide 10: H2 FY20 Post-Pandemic Trading Highlights
H2 FY20 Post-Pandemic Trading Highlights For personal use only Marketing expenses and product procurement curtailed in response to the pandemic. Overheads generally managed to reflect activity levels and government support. Volume and revenue growth in wheels and budget tyres in Australia and NZ rec
Slide 11: Post Closing Event – Acquisition of Tyres4U
Post Closing Event – Acquisition of Tyres4U For personal use only As a result of the acquisition, the NTAW group becomes the largest independent tyre and wheel wholesaler in Australia and New Zealand. Acquisition Highlights The Group’s businesses now supply tyres and wheels for all segments (except
Slide 12: Acquisition of Tyres4U – Corporate Structure
Acquisition of Tyres4U – Corporate Structure For personal use only Employee T4U Other NTAW Smith family Option Public Shareholders founders Plan vendors 100% After Completion 50% 100% New Zealand Australia Australia New Zealand South Africa 12
Slide 13: Acquisition of Tyres4U – Expanded Distribution Footprint
Acquisition of Tyres4U – Expanded Distribution Footprint For personal use only Senior Management team with over 200 years combined tyre and wheel industry experience Over 600 employees in 3 countries 30 Distribution Centres operated by NTAW in 3 countries Over 4,000 retail customers - touching tyre
Slide 14: Outlook – Operations
Outlook – Operations For personal use only Macro indicators – GDP contraction, unemployment, consumer sentiment and health forecasts (infection rates etc.) are all negative. Trading restrictions imposed by governments subsist in some regions and are likely to come and go throughout FY21. While the G
Slide 15: Outlook – Shareholder value
Outlook – Shareholder value For personal use only National Tyre & Wheel Limited The Tyres4U acquisition is expected to increase shareholder value over time. The transaction ASX: NTD has been within the contemplation of the parties for many years and was one of the reasons for NTAW electing to become
Slide 16: Appendix
For personal use only Appendix 16
Slide 17: Experienced Management Team & Board
National Tyre & Wheel For personal use only Experienced Management Team & Board Specialised brand building business focussed on tyre and wheel importing & distribution Leading position in 4WD, SUV tyres, steel wheels & OEM wheels and tyres to caravan manufacturers, with the post balance date acquisi
Slide 18: A diversified brand building business
A diversified brand building business After the Tyres 4U acquisition Business Units For personal use only Exclusive Brands 18