Tourism Holdings Limited · NZX:THL
Tourism — Tourism Holdings Rentals — FY2024 Earnings Presentation
40 slides from Tourism's earnings presentation, Aug 27, 2024
Slide 1: FY24 Annual Results Presentation
44°15’ S — 170° 6’ E For personal use only FY24 ANNUAL RESULTS PRESENTATION As seen, worldwide 27 AUGUST 2024
Slide 2: Disclaimer
thl FY24 ANNUAL RESULTS PRESENTATION 2 For personal use only Disclaimer This presentation contains forward- This presentation has been laws. Past performance information This presentation does not take into looking statements and projections. prepared for publication in New given in this presentatio
Slide 3: Explanatory Note to Presentation of Financial Metrics
thl FY24 ANNUAL RESULTS PRESENTATION 3 Explanatory Note to Presentation of Financial Metrics For personal use only • thl’s consolidated financial statements for FY24 include results from all thl and Apollo entities across the entire reporting period • The consolidated financial statements for FY23,
Slide 4: Executive Summary
thl FY24 ANNUAL RESULTS PRESENTATION 4 Executive Summary For personal use only • Underlying net profit after tax of $51.8M, within guidance range • Statutory net profit after tax of $39.4M due to $12.4M impairment of goodwill attributable to UK/Ireland divisions • Record EBIT results from New Zealan
Slide 5: Results Summary
thl FY24 ANNUAL RESULTS PRESENTATION Results Summary COMPARED TO THE PRIOR CORRESPONDING PERIOD For personal use only UNDERLYING NET PROFIT AFTER TAX1 STATUTORY NET PROFIT AFTER TAX UNDERLYING EBIT1 UNDERLYING EBITDA1 $51.8M $39.4M $111.1M $206.9M -33% -21% -20% -6% (compared to pro forma) (compared
Slide 6: Reconciliation of Statutory and Underlying NPAT
thl FY24 ANNUAL RESULTS PRESENTATION 6 Reconciliation of Statutory and Underlying NPAT APOLLO ACQUISITION ACCOUNTING • There is a negative impact of approximately $4.4M to NPAT in For personal use only FY24 arising from acquisition accounting for the Apollo • Underlying NPAT of $51.8M is down 33% on
Slide 7: Return on Funds Employed
thl FY24 ANNUAL RESULTS PRESENTATION 7 Return on Funds Employed • Return on Funds Employed continues to be the Return on Adjusted Average Period End $M NZD Funds For personal use only primary metric thl uses to measure business EBIT1 Funds1 Funds1 performance and to guide business investment and Emp
Slide 8: Refinancing of Bank Debt
thl FY24 ANNUAL RESULTS PRESENTATION 8 Refinancing of Bank Debt • We have recently refinanced our bank debt facility, For personal use only introducing two new lenders to the syndicate and increasing the facility size by $225M PREVIOUS STRUCTURE • The refinancing acts to rebalance thl’s funding sour
Slide 9: Capital Management
thl FY24 ANNUAL RESULTS PRESENTATION 9 Capital Management Closing Net Debt1 Equity Ratio2 • We are confident in the state of thl’s balance sheet and 37.1% For personal use only believe that our recent bank debt refinancing is a testament to its strength • Funding is generally invested in growing thl
Slide 10: Capital Expenditure
thl FY24 ANNUAL RESULTS PRESENTATION 10 Capital Expenditure GROSS CAPITAL EXPENDITURE PROCEEDS FROM EX-FLEET NET CAPITAL EXPENDITURE For personal use only SALES $400 $363 $200 $177 $162 $337 $250 $350 $150 $197 $300 $200 $186 $187 $100 $175 $250 $135 $50 $150 $M $181 $M $200 $M $0 $150 $120 $100 -$5
Slide 11: Dividend
thl FY24 ANNUAL RESULTS PRESENTATION 11 Dividend • thl continues dividend payments in line with the dividend policy, reflecting confidence in the balance sheet strength and outlook For personal use only • Final FY24 dividend of 5 cents per share, giving a full year FY24 dividend of 9.5 cents per sha
Slide 12: Real and Accounting Depreciation Rates
thl FY24 ANNUAL RESULTS PRESENTATION 12 Real and Accounting Depreciation Rates • The Real Depreciation Rate (RDR) is a key metric in assessing whether REAL DEPRECIATION RATE For personal use only thl is efficiently purchasing and selling its rental fleet • The difference between the original purchas
Slide 13: Merger Synergies and Cost Efficiencies
thl FY24 ANNUAL RESULTS PRESENTATION 13 Merger Synergies and Cost Efficiencies • FY24 included an estimated synergy contribution (net of SYNERGIES NET OF IMPLEMENTATION COSTS implementation costs) of $18.3M of EBIT or $14.2M of NPAT1 For personal use only FINANCIAL ORIGINAL ESTIMATED ESTIMATED • Our
Slide 14: Merger Synergies and Cost Efficiencies
thl FY24 ANNUAL RESULTS PRESENTATION 14 CONTINUING OPPORTUNITIES ASSOCIATED WITH THE MERGER Merger Synergies and Cost Efficiencies • Reducing manufacturing costs through alignment of Trans- Tasman manufacturing practices • Fundamental to thl’s intent to improve ROFE is a synergy • Improving the Nort
Slide 15: Divisional Review
thl FY24 ANNUAL RESULTS PRESENTATION 15 For personal use only Divisional Review 36° 14′ N — 116° 49′ W
Slide 16: New Zealand Rentals & Sales
thl FY24 ANNUAL RESULTS PRESENTATION 16 New Zealand Rentals & Sales • Return on Funds Employed of 22.1% NZD $M FY24 FY23 VAR VAR % FY23 (PF) VAR VAR % For personal use only Rental revenue 110.6 77.0 33.6 44% 82.7 27.9 34% • Record EBIT performance for New Zealand in FY24 Sale of goods revenue 37.0 4
Slide 17: Australia Rentals, Sales & Manufacturing
thl FY24 ANNUAL RESULTS PRESENTATION 17 Australia Rentals, Sales & Manufacturing • Return on Funds Employed of 11.8% AUD $M FY24 FY23 VAR VAR % FY23 (PF) VAR VAR % For personal use only Rental revenue 119.4 97.4 22.1 23% 119.4 0.0 0% • The decline in EBIT stems partly from the challenging sales Sale
Slide 18: USA Rentals & Sales
thl FY24 ANNUAL RESULTS PRESENTATION 18 USA Rentals & Sales • EBIT of US$0.5M is a disappointing and unsatisfactory outcome USD $M FY24 FY23 VAR VAR % for the USA business. Recent business transformation actions For personal use only Rental revenue 52.8 48.3 4.5 9% include: Sale of goods revenue 43.
Slide 19: Canada Rentals & Sales
thl FY24 ANNUAL RESULTS PRESENTATION 19 Canada Rentals & Sales • Return on Funds Employed of 8.3% CAD $M FY24 FY23 (PF) VAR VAR % For personal use only • Although rentals performed well, EBIT of CAD$9.7M was 26% Rental revenue 41.8 32.2 9.6 30% below the PF pcp, primarily due to a CAD$2.8M impact on
Slide 20: UK & Ireland Rentals & Sales
thl FY24 ANNUAL RESULTS PRESENTATION 20 UK & Ireland Rentals & Sales • Return on Funds Employed < 0% GBP £M FY24 FY23 (PF) VAR VAR % For personal use only • A disappointing result for the UK & Ireland business with an EBIT Rental revenue 9.2 8.0 1.2 15% loss (before non-recurring items) of £0.1M Sal
Slide 21: Action Manufacturing (NZ)
thl FY24 ANNUAL RESULTS PRESENTATION 21 Action Manufacturing (NZ) • Return on Funds Employed of 27.8% (inclusive of intercompany NZD $M FY24 FY23 VAR VAR % transactions) For personal use only Sale of goods - third party 74.0 47.0 27.0 57% • Action Manufacturing’s commercial vehicle manufacturing Cos
Slide 22: Tourism
thl FY24 ANNUAL RESULTS PRESENTATION 22 Tourism • Return on Funds Employed of 138%, representing the highest within thl Tourism NZD $M FY24 FY23 VAR VAR % • EBIT of $13M represents a record result for the NZ Tourism division Revenue 42.0 25.1 16.9 67% Costs (29.0) (18.8) (10.2) (54%) • The FIFA Wome
Slide 23: Outlook
thl FY24 ANNUAL RESULTS PRESENTATION 23 For personal use only Outlook -45° 02’ S — 168° 29’ E
Slide 24: Outlook
thl FY24 ANNUAL RESULTS PRESENTATION 24 Outlook • Despite operating conditions for the coming period being uncertain, we expect For personal use only an increase in underlying NPAT in FY25 compared to FY24 • Our current rental forward bookings demonstrate year-on-year growth in hire days in FY25 wit
Slide 25: Our Future NPAT Goal
thl FY24 ANNUAL RESULTS PRESENTATION 25 Our Future NPAT Goal • We have previously stated a goal to achieve $100M in net For personal use only profit after tax in FY26 • We continue to believe that the core assumptions supporting our $100M goal are intact for thl • However, the economic climate in th
Slide 26: Questions
thl FY24 ANNUAL RESULTS PRESENTATION 26 For personal use only Questions -14° 19’ S — 132° 34’ E
Slide 27: Thank you
thl FY24 ANNUAL RESULTS PRESENTATION 27 For personal use only Thank you 42° 46’ S — 147° 33’ E
Slide 28: Important Notes
thl FY24 ANNUAL RESULTS PRESENTATION 28 For personal use only Important Notes 36° 14′ N — 116° 49′ W
Slide 29: Important notes
Important notes For personal use only • All financials are in NZ dollars unless stated otherwise • FY24 includes the following non-recurring items (which (throughout presentation). have been excluded from the underlying result): • All comparisons are against prior corresponding period • A $12.5M goo
Slide 30: Glossary of Key Terms
thl FY24 ANNUAL RESULTS PRESENTATION 30 Glossary of Key Terms Average Fleet Size or Average Fleet refers to the average of the closing rental fleet balance at the end of each month in the reporting period Average Net Debt refers to the average of the net debt balance at the end of each month in the
Slide 31: Supplementary Information
thl FY24 ANNUAL RESULTS PRESENTATION 31 For personal use only Supplementary Information -45° 02’ S — 168° 29’ E
Slide 32: Divisional Performance
thl FY24 ANNUAL RESULTS PRESENTATION 32 Divisional Performance Comparing FY24 to the prior year pro forma Year ending 30 June 2024 Year ending 30 June 2023 (Pro Forma) DIVISIONAL DIVISIONAL DIVISIONAL DIVISIONAL For personal use only $M NZD REVENUE REVENUE EBITDA EBIT EBITDA EBIT New Zealand Rentals
Slide 33: Reconciliation of EBIT and EBITDA
thl FY24 ANNUAL RESULTS PRESENTATION 33 Reconciliation of EBIT and EBITDA Reconciliation of Reported and Underlying EBIT NZD $M FY24 FY23 For personal use only Reported EBIT 98.6 88.9 Impairment of goodwill and other intangible assets attributable to the UK/Ireland CGU 12.5 0.0 Merger transaction co
Slide 34: Income Statement
thl FY24 ANNUAL RESULTS PRESENTATION Income Statement Full year 6 months to 30 June 6 Months to 31 December NZD $M FY24 FY23 VAR VAR % FY24 FY23 VAR VAR % FY24 FY23 VAR VAR % For personal use only Revenue Sale of services 440.6 307.0 133.6 44% 206.6 173.0 33.6 19% 234.0 134.0 100.0 75% Sale of goods
Slide 35: Balance Sheet
thl FY24 ANNUAL RESULTS PRESENTATION Balance Sheet As at As at NZD $M 30 Jun 2024 30 Jun 2023 VAR 31 Dec 2023 31 Dec 2022 VAR For personal use only Equity 616.9 611.0 5.9 618.4 570.8 47.6 Non current liabilities (excluding lease liabilities) 431.3 287.9 143.4 388.5 197.4 191.1 Current liabilities (e
Slide 36: Ex-Rental Fleet Sales
thl FY24 ANNUAL RESULTS PRESENTATION Ex-Rental Fleet Sales $M FY24 FY23 (PF) VAR VAR % $k FY24 FY23 (PF) VAR VAR % Proceeds from ex-fleet sales Average gross margin on ex-fleet sales New Zealand 20.9 43.1 (22.2) (51%) New Zealand 28.2 30.4 (2.3) (7%) For personal use only Australia 21.9 57.5 (35.6)
Slide 37: Retail RV Sales (New Zealand and Australia only)
thl FY24 ANNUAL RESULTS PRESENTATION Retail RV Sales (New Zealand and Australia only) $M FY24 FY23 (PF) VAR VAR % $k FY24 FY23 (PF) VAR VAR % For personal use only Proceeds from retail RV sales Average gross margin on retail RV sales New Zealand 7.1 11.8 (4.6) (40%) New Zealand 17.1 23.3 (6.2) (27%)
Slide 38: Fleet Movements
thl FY24 ANNUAL RESULTS PRESENTATION Fleet Movements Units: FY24 FY23 VAR VAR % Units: FY24 FY23 VAR VAR % New Zealand Canada For personal use only Opening fleet 1,400 1,009 391 39% Opening fleet 1,402 - 1,402 N/M (1) (1) On-fleets 852 735 (117) (16%) On-fleets 244 1,567 1,323 84% (2) (2) Off-fleets
Slide 39: Average Fleet Size and RevPARV – Historical Data
thl FY24 ANNUAL RESULTS PRESENTATION 39 Average Fleet Size and RevPARV – Historical Data New Zealand and Australia data reflects pro forma For personal use only FY19 FY20 FY21 FY22 FY23 FY24 New Zealand Rentals ($NZD) Rental revenue ($k) 124.1 113.9 39.0 23.5 82.7 110.6 Average fleet (#) 3,244 3,350
Slide 40: For personal use only
For personal use only T H L ONL INE. COM
Tourism Holdings Rentals — FY2024 Earnings Presentation on 6ix