Combined Motor Holdings Limited · JSE:CMH
Combined Motor — FY2021 Earnings Presentation
18 slides from Combined Motor's earnings presentation, May 2021
Slide 1: Financial Results Presentation
1 FINANCIAL RESULTS PRESENTATION
Slide 2: Group Financial Highlights
GROUP FINANCIAL HIGHLIGHTS GROUP FINANCIAL HIGHLIGHTS FOR THE YEAR ENDED 28 FEBRUARY 2021 28 February 2021 28 February 2020 % Change Total assets (R’000) 3,274,003 3,650,301 (10.3) Cash resources (R’000) 754,825 659,622 14.4 Net asset value per share (cents) 1,216 1,090 11.6 Revenue (R’000) 8,579,55
Slide 3: Group Income Statement
GROUP INCOME STATEMENT GROUP INCOME STATEMENT 2021 2021 2021 2020 Total Second Half First Half Total R'000 R'000 R'000 R'000 Revenue 8,579,558 5,033,069 3,546,489 11,156,167 Cost of Sales -7,087,850 -4,212,651 -2,875,199 -9,291,278 Gross Profit 1,491,708 820,418 671,290 1,864,889 Gross Profit % 17.4
Slide 4: Operating Margin
OPERATING MARGIN 7.0% 5.9% 6.0% 5.0% 4.1% 4.0% 3.7% 3.7% 4.0% 3.0% 2.0% 1.3% 1.0% 0.0% 2017 2018 2019 2020 2021 2021 First Half Second Half 4
Slide 5: Cash Resources (R'million)
CASH RESOURCES (R’million) 800 755 700 676 660 600 489 500 400 373 300 200 100 0 2017 2018 2019 2020 2021 5
Slide 6: Segment Profit Contribution
SEGMENT PROFIT CONTRIBUTION 2021 2020 2019 2018 2017 % % % % % Retail motor 86 57 65 70 65 Car hire -2 17 16 19 21 Financial services 12 17 13 10 12 Corporate services / other 4 9 6 1 2 100 100 100 100 100 6
Slide 7: CMH Shares Traded
CMH SHARES TRADED 2021 2020 2019 2018 2017 Volume of shares traded ('000) 11,227 9,147 11,900 15,924 11,977 Value of shares traded (R'000) 145,439 191,500 323,364 383,281 206,038 Average price per share traded (cents) 1,295 2,093 2,717 2,407 1,720 Year-end market price (cents) 1,550 1,840 2,100 2,61
Slide 8: Industry New Vehicle Sales
INDUSTRY NEW VEHICLE SALES SALES (‘000 UNITS) - CALENDAR YEAR 600 552 545 530 500 PROJECTED 390 - 420 400 347 300 200 100 0 2017 2018 2019 2020 2021 8
Slide 9: Segment Analysis – Retail Motor
SEGMENT ANALYSIS – RETAIL MOTOR GROUP NEW UNIT SALES BY MANUFACTURER (%) Nissan Ford Mazda Suzuki / Mitsubishi / Subaru Toyota / Lexus Honda Haval Isuzu / Opel Land Rover / Jaguar Volvo Renault Trucks 0 5 10 15 20 25 30 2021 2020 * Compared to volume dealers Land Rover, Jaguar and UD Trucks produce
Slide 10: Black Economic Empowerment
BLACK ECONOMIC EMPOWERMENT • Group scorecard rating - level 5 • Car hire scorecard rating - level 2 • CMH First Fleet Solutions - level 2 • Both Car Hire and First Fleet have 51% black ownership • Group scorecard adversely affected by motor manufacturers from which the majority of procurement is sou
Slide 11: Macro
MACRO • SA started the year in economic recession • Hard lockdown from the last week in March 2020 • Irrational Government decisions impacted unemployment and taxes • PPE corruption rife • Vehicle licensing and testing departments closed for 77 days – no sales / delivery possible 11
Slide 12: Group Overview
GROUP OVERVIEW • Remarkable second half turnaround – R183 m profit vs. R14 m loss • Second half impacted by continued effects of pandemic, and resurgence of load shedding • Dividend payments resumed • Focus areas • Protection of cash resources through working capital management • Maximisation of gro
Slide 13: Motor Retail
MOTOR RETAIL • Both national and Group annual new vehicle sales declined 32% • Group outperformed national during second half • Used vehicle sales hampered by shortage of trade-ins. Again, second half improved over national • Parts and service departments recovered quickly – currently around 90-95%
Slide 14: Car Hire
CAR HIRE • Hardest hit. Longest time to recover • Closely linked to air travel, both business and leisure • ACSA reported 67% fall in passengers during year – all in April - Dec months • Considerable rental concessions received from ACSA – charge based on revenue only, no monthly minimum • 2 major c
Slide 15: Financial Services
FINANCIAL SEVICES • Relates to finance JVs and insurance underwriting • JVs suffered first half due to severe doubtful debt provisioning. Second half improved, provisions released • Underwriting results affected by Covid-related deaths. Jan-Feb 2021 much improved • 25% growth in premium income augur
Slide 16: Dividends
DIVIDENDS • Traditional dividend payable June 2020, in relation to prior year results, delayed due to uncertainty, then paid Dec 2020 • No traditional dividend paid Dec 2020 due to first half trading loss. • Traditional June divided resumed. 125 cents payable June 2021 – covered 1,8 times by year’s
Slide 17: Covid-19 Impact and Prospects
COVID-19 IMPACT AND PROSPECTS • Inventory down 22% • Receivables down 11% • Car hire fleet investment down 22% • Head count down 22% • Improved trading margins • Restructured overheads • Interest rate cuts • National new vehicle sales growth estimates vary between 12% and 20% • Reduced availability
Slide 18: End
18 FINANCIAL RESULTS PRESENTATION END
Combined Motor Holdings — FY2021 Earnings Presentation on 6ix