Tourism Holdings Limited · NZX:THL
Tourism — Tourism Holdings Rentals — FY2023 Earnings Presentation
52 slides from Tourism's earnings presentation, Aug 29, 2023
Slide 1: FY23 Full Year Investor Presentation
For personal use only FY23 FULL YEAR INVESTOR UNITED PRESENTATION FOR GROWTH 29 AUGUST 2023
Slide 2: Disclaimer
thl FY23 INVESTOR PRESENTATION 2 For personal use only This presentation contains forward-looking statements and This presentation is for information purposes only and does Generally Accepted Accounting Practice in New Zealand projections. These reflect thl’s current expectations, based not constitu
Slide 3: Executive summary
thl FY23 INVESTOR PRESENTATION 3 Executive summary • Statutory net profit after tax (NPAT) of $49.9M, an increase of $52M on the prior year For personal use only • A record underlying NPAT of $47.8M and pro forma underlying NPAT of $77.1M (which includes the impact of acquisition accounting)1 • Pro
Slide 4: Important information on the presentation of financial performance
thl FY23 INVESTOR PRESENTATION 4 Important information on the presentation of financial performance • As the Scheme of Arrangement with Apollo Tourism & Leisure Ltd (ATL or Apollo) completed on 30 November 2022, thl’s FY23 consolidated For personal use only financial statements (prepared in accordan
Slide 5: Our global footprint – 7,233 vehicles
thl FY23 INVESTOR PRESENTATION 5 Our global footprint – 7,233 vehicles CANADA as at 30 June 2023 FLEET 1,402 (19%) RV RENTALS For personal use only EX-RENTAL RV SALES UK & EUROPE FLEET 532 (7%) RV RENTALS EX-RENTAL RV SALES USA JAPAN FRANCHISEE FLEET 1,818 (25%) RV RENTALS EX-RENTAL RV SALES AUSTRAL
Slide 6: A year of achievements
thl FY23 INVESTOR PRESENTATION 6 A year of achievements TRANSFORMATIONAL RELAUNCH OF CONSOLIDATION OF 13 thl US OPERATIONS REDUCED WATER For personal use only MERGER WITH APOLLO KIWI EXPERIENCE AND APOLLO BRANCHES USE BY 50% OVER TOURISM & LEISURE LTD FROM HIBERNATION ACROSS AUSTRALASIA LAST FOUR YE
Slide 7: Reconciliation of statutory, underlying and pro forma performance
thl FY23 INVESTOR PRESENTATION 7 Reconciliation of statutory, underlying Reconciliation of statutory and underlying results and pro forma performance NZD $M Statutory net profit/(loss) after tax* FY23 49.9 FY22 (2.1) VAR 52.0 % N/M Apollo merger transaction costs 5.8 5.1 0.7 14% Tax effect on merger
Slide 8: Reconciliation to FY23 profit guidance
thl FY23 INVESTOR PRESENTATION 8 Reconciliation to FY23 profit guidance NZD $M FY23 Underlying net profit after tax 47.8 • thl’s FY23 profit guidance was for: Reversal of IFRS 16 fair value adjustment impacts 1.3 • underlying NPAT above $48M; and Reversal of vehicle inventory fair value adjustment i
Slide 9: Our year in review
thl FY23 INVESTOR PRESENTATION 9 Our year in review AS AT 30 JUNE 2023 For personal use only STATUTORY UNDERLYING NET PROFIT UNDERLYING PRO PRO FORMA NPAT1,2,3 (REMOVING ACQUISITION AFTER TAX (NPAT) UNDERLYING NPAT 1 FORMA NPAT1,2 ACCOUNTING ADJUSTMENTS) $ 49.9M(FY22: -$2.1M) $ 47.8M $ 77.1M (FY22:
Slide 10: Dividend
thl FY23 INVESTOR PRESENTATION 10 Dividend • thl’s new dividend policy targets a pay-out ratio of 40 to 60% of underlying net profit after tax For personal use only • The new policy factors in thl’s equity position and anticipated fleet regrowth capital requirements • The Board have declared a final
Slide 11: Capital expenditure
thl FY23 INVESTOR PRESENTATION 11 Capital expenditure Gross Capital Expenditure ($M) Proceeds from Fleet Sales ($M) Net Capital Expenditure ($M) (including 7 months of Apollo) (including 7 months of Apollo) (including 7 months of Apollo) For personal use only $400 $250 $200 $162 $337 $350 $197 $150
Slide 12: Funding arrangements
thl FY23 INVESTOR PRESENTATION 12 Funding arrangements • thl’s funding is sourced from multiple lenders through Total facility various funding types including a syndicated bank debt 30 June 2023 Drawn Undrawn size For personal use only facility, asset financing and floor plan finance Syndicated bank
Slide 13: Integration update
thl FY23 INVESTOR PRESENTATION 13 Integration For personal use only update
Slide 14: Project Orange update
thl FY23 INVESTOR PRESENTATION 14 Project Orange update Earlier update – May 2023 Latest update – August 2023 Savings on track for FY23. FY24 may be Synergies remain on track. No long-term Labour slightly delayed due to integration concerns. intensity, no long-term concerns • To date we have realise
Slide 15: Our synergy tracking methodology
thl FY23 INVESTOR PRESENTATION 15 Our synergy tracking methodology • Our synergy tracking model tracks measurable results against counterfactual baselines of each company on a standalone basis, with permanent P&L indicators embedded to sustain synergies For personal use only • The complexity in mode
Slide 16: Latest trends
thl FY23 INVESTOR PRESENTATION Latest For personal use only trends
Slide 17: Rental yield trends
thl FY23 INVESTOR PRESENTATION 17 17 New Zealand Australia USA Canada UK Rental yield trends FY23 Average ~55% up ~85% up ~40% up ~20% up ~50% up Rental Yields on FY19 on FY19 on FY19 on FY19 on FY19 Guide to yield phases in each market* For personal use only 2023 peak UK Yields in Yields in 2023 pe
Slide 18: Fleet sales margin trends
thl FY23 INVESTOR PRESENTATION 18 Fleet sales margin trends For personal use only New Zealand Australia USA Canada UK Expected to Expected to Expected to Expected to Expected to Previous remain stable in remain stable in continue to continue to continue to Guidance1 FY23 and start to FY23 and normal
Slide 19: Global fleet position
thl FY23 INVESTOR PRESENTATION 19 Global fleet position • Global fleet size on 30 June 2023 of 7,233, up ~550 vehicles from the combined thl and Apollo fleet on 30 June 20221 For personal use only Fleet size at year end – thl and Apollo combined • Our key focuses for fleet growth in FY24 will be New
Slide 20: The North American sales environment
thl FY23 INVESTOR PRESENTATION 20 The North American sales environment Earlier this year you indicated there was a potential timing risk to achieving your FY23 profit guidance due to vehicle sales in North America. What is the latest on that situation? For personal use only In the early North Americ
Slide 21: Macroeconomic challenges and inflation
thl FY23 INVESTOR PRESENTATION 21 Macroeconomic challenges and inflation Businesses today are facing many challenges across cost inflation, labour shortages and softening demand from the increasing cost of living and interest rates. What is thl For personal use only experiencing and will the tourism
Slide 22: Responsible management
thl FY23 INVESTOR PRESENTATION 22 For personal use only Responsible management
Slide 23: Our global sustainability programme highlights
thl FY23 INVESTOR PRESENTATION 23 Our global sustainability programme highlights Climate & Carbon Strategy We continue to use the 23 science-based goals • Our Climate Risks and Opportunities have been updated to reflect our global business and new disclosure standard NZ CS 1 aligned of the Future-Fi
Slide 24: Our focus of crew health, safety and wellbeing
thl FY23 INVESTOR PRESENTATION 24 Our focus of crew health, safety and wellbeing For personal use only • thl firmly believes that all injuries are preventable, and a key focus for the business is building capability in our people and systems to ensure we reduce the risk of physical or psychological
Slide 25: Financial review
thl FY23 INVESTOR PRESENTATION 25 For personal use only Financial review
Slide 26: Divisional performance – thl including months of Apollo
thl FY23 INVESTOR PRESENTATION 26 Divisional performance – thl including 7 months of Apollo Year ending 30 June 2023 Year ending 30 June 2022 DIVISIONAL DIVISIONAL AVE FUNDS DIVISIONAL DIVISIONAL AVE FUNDS $M NZD REVENUE REVENUE EBITDA EBIT EMPLOYED EBITDA EBIT EMPLOYED For personal use only New Zea
Slide 27: Divisional performance – pro forma including months of Apollo
thl FY23 INVESTOR PRESENTATION 27 Divisional performance – pro forma including 12 months of Apollo Year ending 30 June 2023 Year ending 30 June 2022 Mergeco - Dec 22 to J DIVISIONAL DIVISIONAL DIVISIONAL DIVISIONAL $M NZD REVENUE REVENUE For personal use only EBITDA EBIT EBITDA EBIT New Zealand Rent
Slide 28: Divisional performance - Return on Funds Employed
thl FY23 INVESTOR PRESENTATION 28 Divisional performance - Return on Funds Employed • Group ROFE of 15.8% ROFE ROFE Average Year End $M NZD Goodwill in Goodwill in For personal use only • New Zealand and Australia have delivered record ROFE Funds1 Funds GSS2 ANZ2 results New Zealand Rentals & Sales
Slide 29: New Zealand Rentals and Sales
thl FY23 INVESTOR PRESENTATION 29 New Zealand Rentals and Sales thl including 7 months of Apollo NZD $M FY23 FY22 VAR VAR % • A significant return to profitability with EBIT of NZ$32.1M, an improvement of Rental revenue 77.0 18.4 58.6 318% NZ$41.1M on the loss in the pcp Sale of goods revenue 47.2 7
Slide 30: Australian Rentals, Sales & Manufacturing
thl FY23 INVESTOR PRESENTATION 30 thl including 7 months of Apollo Australian Rentals, Sales & Manufacturing NZD $M Rental revenue FY23 106.4 FY22 42.0 VAR 64.4 VAR % 153% Sale of goods revenue 132.3 35.9 96.4 269% • Australian division delivers an excellent EBIT result of NZ$36M, up NZ$29.4M on Cos
Slide 31: USA Rentals and Sales
thl FY23 INVESTOR PRESENTATION 31 USA Rentals and Sales Full year • USA Rentals & Sales delivered EBIT of US$8.3M, down 5% on the pcp. NZD $M FY23 FY22 VAR VAR % At an NZD level EBIT grew by 6% due to favourable movements in the Rental revenue 78.7 53.6 25.1 47% NZD:USD exchange rate For personal us
Slide 32: Canada Rentals and Sales
thl FY23 INVESTOR PRESENTATION 32 Canada Rentals and Sales thl including 7 months of Apollo NZD $M FY23 FY22 VAR VAR % • On a pro forma basis, Canada delivered EBIT of C$13.2M, a significant Rental revenue 12.0 - 12.0 N/M improvement of C$10.5M Sale of goods revenue 22.4 - 22.4 N/M For personal use
Slide 33: UK/Europe Rentals and Sales
thl FY23 INVESTOR PRESENTATION 33 UK/Europe Rentals and Sales thl including 9 months of Just go and 7 months of Apollo NZD $M FY23 FY22 VAR VAR % • On a pro forma basis, the UK/Europe business delivered EBIT of £1.3M, Rental revenue 6.5 - 6.5 N/M down £1.3M on the pcp1 Sale of goods revenue 10.2 - 1
Slide 34: Action Manufacturing Group
thl FY23 INVESTOR PRESENTATION 34 Action Manufacturing Group Full year • Action Manufacturing Group as a standalone business (inclusive of NZD $M FY23 FY22 VAR VAR % intercompany transactions) delivered EBIT of $8.3M, up $3.4M on the pcp For personal use only Sale of goods - external 47.0 26.1 20.9
Slide 35: Tourism
thl FY23 INVESTOR PRESENTATION 35 Tourism Full year • The return of international tourists to New Zealand saw the Tourism NZD $M FY23 FY22 VAR VAR % division return to profitability with EBIT of $6.3M, up $10.5M on the loss in the prior year Revenue 25.1 3.2 21.9 684% For personal use only Costs (18
Slide 36: Group Support Services & Other
thl FY23 INVESTOR PRESENTATION 36 Group Support Services & Other Full year NZD $M FY23 FY22 VAR VAR % • Group Support Services & Other contains costs relating to New Revenue 1.3 1.8 (0.5) (28%) Zealand-based corporate staff, administration and other overhead Costs (2.4) (6.2) 3.8 61% costs, as well
Slide 37: Outlook
thl FY23 INVESTOR PRESENTATION 37 For personal use only Outlook
Slide 38: Outlook
thl FY23 INVESTOR PRESENTATION 38 Outlook • The merger of thl and Apollo has created a platform for future growth and while we are focused on integration and synergy realisation, we intend that the new collective continues this growth in the coming years For personal use only • We believe the pro fo
Slide 39: Important notes
thl FY23 INVESTOR PRESENTATION 39 Important For personal use only notes • All financials are in NZ dollars unless stated otherwise (throughout presentation). 0.6075 (FY22 - 0.6214); the AUD cross rate used was 0.9182 (FY22 - 0.9031), the CAD cross rate used was 0.8052 and the GBP cross rate used was
Slide 40: Questions
thl FY23 INVESTOR PRESENTATION 40 Questions For personal use only
Slide 41: Acquisition accounting
thl FY23 INVESTOR PRESENTATION 41 For personal use only Acquisition accounting
Slide 42: Acquisition accounting – balance sheet adjustments
thl FY23 INVESTOR PRESENTATION 42 Acquisition accounting – balance sheet adjustments Balance Sheet • As part of the acquisition accounting, thl is Adjustment Item Impact (NZ$) Comment required to fair value all of Apollo’s assets and For personal use only 30 Nov 2022 liabilities that have been acqui
Slide 43: Acquisition accounting – impact on earnings
thl FY23 INVESTOR PRESENTATION 43 Acquisition accounting – impact on earnings NPAT Impact NPAT Impact NPAT Impact • The net impact of the acquisition Adjustment (NZ$) (NZ$) (NZ$) Comment For personal use only accounting adjustments on thl’s Item FY23 FY24 FY25 and beyond (7 months) (Estimate) (Estim
Slide 44: Supplementary information
thl FY23 INVESTOR PRESENTATION 44 Supplementary For personal use only information
Slide 45: Divisional EBIT – thl including months of Apollo in FY23
thl FY23 INVESTOR PRESENTATION 45 Divisional EBIT – thl including 7 months of Apollo in FY23 Full year 6 months to 30 June 6 Months to 31 December NZD $M FY23 FY22 VAR VAR % FY23 FY22 VAR VAR % FY23 FY22 VAR VAR % For personal use only thl operating divisions New Zealand Rentals & Sales 32.1 (9.0) 4
Slide 46: EBIT bridge – pro forma including months of Apollo
thl FY23 INVESTOR PRESENTATION 46 EBIT bridge – pro forma including 12 months of Apollo For personal use only
Slide 47: Income statement summary – thl including months of Apollo in FY23
thl FY23 INVESTOR PRESENTATION 47 Income statement summary – thl including 7 months of Apollo in FY23 Full year 6 months to 30 June 6 Months to 31 December NZD $M FY23 FY22 VAR VAR % FY23 FY22 VAR VAR % FY23 FY22 VAR VAR % For personal use only Revenue Sale of services 307.0 118.9 188.1 158% 172.9 6
Slide 48: Revenue – thl including months of Apollo in FY23
thl FY23 INVESTOR PRESENTATION 48 Revenue – thl including 7 months of Apollo in FY23 Full year 6 months to 30 June 6 Months to 31 December NZD $M FY23 FY22 VAR VAR % FY23 FY22 VAR VAR % FY23 FY22 VAR VAR % For personal use only thl Rentals & Sales - rental revenue New Zealand 77.0 18.4 58.6 318% 50.
Slide 49: EBITDA – thl including months of Apollo in FY23
thl FY23 INVESTOR PRESENTATION 49 EBITDA – thl including 7 months of Apollo in FY23 EBITDA Full year 6 months to 30 June 6 Months to 31 December NZD $M FY23 FY22 VAR VAR % FY23 FY22 VAR VAR % FY23 FY22 VAR VAR % For personal use only EBIT 88.9 6.9 82.0 1,188% 46.6 8.0 38.6 483% 42.3 (1.1) 43.4 N/M 0
Slide 50: Balance sheet
thl FY23 INVESTOR PRESENTATION 50 Balance sheet NZD $M As at 30 Jun 2023 30 Jun 2022 VAR As at Equity 611.0 331.7 279.3 Non current liabilities 287.7 113.4 174.3 Current liabilities 285.0 68.1 216.9 Lease liabilities 159.9 82.6 77.3 For personal use only Total source of funds 1,343.6 595.8 747.8 Int
Slide 51: Gain on fleet sales and gross profit – pro forma including 12 months of Apollo
thl FY23 INVESTOR PRESENTATION 51 Gain on fleet sales and gross profit – pro forma including 12 months of Apollo Pro forma consolidated Pro forma consolidated $M FY23 FY22 VAR VAR % $k FY23 FY22 VAR VAR % For personal use only Proceeds from sale of fleet Average gross margin on fleet sold New Zealan
Slide 52: For personal use only
For personal use only thl online.com
Tourism Holdings Rentals — FY2023 Earnings Presentation on 6ix