Combined Motor Holdings Limited · JSE:CMH
Combined Motor — FY2024 Earnings Presentation
24 slides from Combined Motor's earnings presentation, May 2024
Slide 1: Group Financial Results Presentation
CMH GROUP FINANCIAL RESULTS PRESENTATION A a ss | a | Fi = f Se ee ee is 3 Stee a 4 = 7 = a
Slide 2: Group Financial Highlights
GROUP FINANCIAL HIGHLIGHTS GROUP FINANCIAL HIGHLIGHTS FOR THE YEAR ENDED 29 FEBRUARY 2024 2024 2023 % Change Total assets (R’000) 5,185,446 4,976,881 4.2 Cash resources (R’000) 815,105 761,876 7.0 Net asset value per share (cents) 1,828 1,690 8.2 Revenue (R’000) 12,839,564 12,434,375 3.3 Operating p
Slide 3: Macro
MACRO • Challenging economic environment - high interest rates - prime rate - May 2023 – 11.75% - highest in 14 years - weak currency - fuel price increases - worsening power cuts - poor governance - political instability - two wars in progress • On the positive side - increase in tourism/business t
Slide 4: Group Overview
GROUP OVERVIEW • Revenue increase driven by vehicle price increases, offset by marginally lower volumes. Also Land Rover change to ‘agency’ model. • Gross profit margin improved from 19.3% to 19.7% - higher retail motor margins during first 6 months - higher car hire mix • Selling and administration
Slide 5: Group Overview
GROUP OVERVIEW • high return on shareholders’ funds – 31% • sound balance sheet • strong cash flow generation – R815 million at year end • dividend proposed – 220 cents vs 240 cents 4
Slide 6: Group Income Statement
GROUP INCOME STATEMENT GROUP INCOME STATEMENT 2024 2023 R'000 R'000 Revenue 12,839,564 12,434,375 Cost of sales -10,313,533 -10,037,459 Gross profit 2,526,031 2,396,916 Gross profit % 19.7 19.3 Other income 32,211 26,094 Goodwill impaired 0 -17,671 Selling and operating expenses -1,777,078 -1,631,92
Slide 7: Operating Margin
OPERATING MARGIN 7.0% 6.2% 6.1% 6.0% 5.4% 5.0% 4.1% 4.0% 4.0% 3.7% 4.0% 3.0% 2.0% 1.0% 0.0% 2018 2019 2020 2021 2022 2023 2024 6
Slide 8: Cash Resources (R'million)
CASH RESOUCES (R’million) 900 818 815 800 755 762 676 660 700 600 500 400 373 300 200 100 0 2018 2019 2020 2021 2022 2023 2024 7
Slide 9: Black Economic Empowerment
BLACK ECONOMIC EMPOWERMENT • Group scorecard rating - level 4 • Car Hire scorecard rating - level 2 • CMH First Fleet Solutions - level 2 • Both Car Hire and First Fleet have 51% black ownership qualification • Group scorecard adversely affected by motor manufacturers from which the majority of proc
Slide 10: CMH Shares Traded
CMH SHARES TRADED 2024 2023 2022 2021 2020 Volume of shares traded ('000) 7,307 9,830 12,162 11,227 9147 Value of shares traded (R'000) 203,057 277,718 283,365 145,439 191,500 Average price per share traded (cents) 2,779 2,825 2,330 1,295 2,093 Year-end market price (cents) 2,650 2,868 2,800 1,550 1
Slide 11: Segment Profit Contribution
SEGMENT PROFIT CONTRIBUTION 2024 2023 2022 2021 2020 % % % % % Car hire 50 43 23 -2 17 Motor retail / distribution 34 44 66 86 57 Financial services 15 12 11 12 17 Corporate services / other 1 1 0 4 9 100 100 100 100 100 10
Slide 12: Motor Retail / Distribution
MOTOR RETAIL / DISTRIBUTION 2024 2023 2022 2021 2020 R’000 R’000 R’000 R’000 R’000 Segment profit before taxation 187,565 273,789 336,069 202,437 150,049 INDUSTRY NEW VEHICLE SALES – CALENDAR YEAR • National market (passenger & light commercial) flat • Market share moves - Chery +54% - off a low bas
Slide 13: Industry New Vehicle Sales
INDUSTRY NEW VEHICLE SALES SALES (‘000 UNITS) - CALENDAR YEAR PROJECTED 600 508 514 499 499 500 438 400 357 300 200 100 0 2019 2020 2021 2022 2023 2024 12
Slide 14: Segment Analysis – Retail Motor
SEGMENT ANALYSIS – RETAIL MOTOR GROUP NEW UNIT SALES BY MANUFACTURER (%) Suzuki Ford Nissan Toyota Haval Honda Chery Axis Title Isuzu Mazda Renault Mitsubishi Stellantis Jaguar/Land Rover Mahindra Volvo 0 2 4 6 8 10 12 14 16 18 20 2024 2023 13
Slide 15: Motor Retail / Distribution
MOTOR RETAIL / DISTRIBUTION • During financial year • national sales down 1.2% - passenger down 5.7%, light commercial up 10.8% • CMH sales down 1.9% • Vehicle sales • continued gross overstocking at manufacturer level • pressure on dealers to increase sales and inventory levels • heavy discounting,
Slide 16: Motor Retail / Distribution
MOTOR RETAIL / DISTRIBUTION • Mandarin Parts Distributors • steady year, supply affected by harbour disruptions and inefficiencies • profit up 20% • 28 independent franchisees • Proton vehicles • imported from Malaysia • sales below anticipated level • favourably rated after test drives, few warrant
Slide 17: Timeline and Range
Timeline and Range JUN202 NOV2024 MAY2025 4 Jun2025 NOV2024 MAY2025 16
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Slide 21: Car Hire
CAR HIRE 2024 2023 2022 2021 2020 R’000 R’000 R’000 R’000 R’000 Segment profit before taxation 280,385 268,587 115,945 -5,103 45,178 • boosted by tourism and corporate travel • alliance with FlySafair mutually beneficial • insurance replacement market steady • daily hire rate down 3% - increased com
Slide 22: Financial Services
FINANCIAL SEVICES 2024 2023 2022 2021 2020 R’000 R’000 R’000 R’000 R’000 Segment profit before taxation 83,244 73,046 56,159 28,046 44,637 • Relates to finance JVs and insurance underwriting • Higher level of financeable business generated • Improved interest rate margin • Insurance cells recorded f
Slide 23: Prospects
PROSPECTS The year ahead will be characterized by uncertainty • elections, with various possible outcomes • expected interest rate cuts have been pushed back • load-shedding forecasts unreliable • modest economic growth will not reverse the unemployment dilemma • NAAMSA pins its expectations for 202
Slide 24: Group Financial Results Presentation
CMH GROUP FINANCIAL RESULTS PRESENTATION A a ss | a | Fi = f Se ee ee is 3 Stee a 4 = 7 = a
Combined Motor Holdings — FY2024 Earnings Presentation on 6ix