Motorcycle Holdings Ltd. · ASX:MTO
Motorcycle — Shareholder Meeting (November 2019)
24 slides from Motorcycle's shareholder meeting presentation, Nov 14, 2019
Slide 1: ASX cover letter for AGM presentations
HEAD OFFICE 68 Moss Street Slacks Creek Q 4127 PO Box 654 For personal use only Springwood Q 4127 Tel | 07 3380 2290 14 November 2019 The Manager Market Announcements Office Australian Securities Exchange 20 Bridge Street Sydney NSW 2000 Dear Sir/Madam, MotorCycle Holdings Limited (ASX: MTO) – Prese
Slide 2: Chairman's Address
MOTORCYCLE HOLDINGS LIMITED AGM 2019 CHAIRMAN’S ADDRESS Good morning ladies and gentlemen, my name is David Foster and I am the Chairman of MotorCycle Holdings Limited and I will chair today’s Annual General Meeting. For personal use only On behalf of the Board and Executive team, I’d like to welcom
Slide 3: Chairman's Address: financial results and strategic outlook
A crucial factor enabling us to navigate the ongoing challenging market conditions we experienced this year is our diversified revenue streams, which include the 30 dealerships and eight retail accessory stores in Queensland, New South Wales, Victoria and the ACT, along with our Australia-wide whole
Slide 4: Chairman's Address: outlook and staff
expected to be completed this month and will strengthen and extend our geographical and market footprint. We expect to see further benefits of our cost reduction program flow through to this current financial year’s performance. In addition, our new joint venture with motorcycle industry finance com
Slide 5: 2019 Annual General Meeting Managing Director's Address
For personal use only Motorcycle Holdings Limited 2019 Annual General Meeting Managing Director’s Address 14 November 2019
Slide 6: Disclaimer and important information
Disclaimer and important information For personal use only • This presentation may contain certain unaudited financial information in relation to MotorCycle Holdings Limited (MTO). As such, it has not been subject to an audit or an audit process or otherwise independently verified. • This presentati
Slide 7: Results overview
For personal use only Results overview
Slide 8: Results Overview
Results Overview For personal use only Sales revenue of $330 million, up 9% Underlying EBITDA* decreased to $18.0 million, down 4% 4% growth in total motorcycles sales to 18,536 units Used bike units up 11% New bike units down 1%, like for like down 9% Market share increased from 9.5% to 10.6% * Und
Slide 9: Results Overview
Results Overview For personal use only Total industry units down 11%, following 10% drop in 2017/18 Road bike market down 16% Used bikes sold in 5 MCA stores AASB15 adoption resulted in restatement downwards of FY2018 results by $1.0M and reduced 2019 results by $0.7M Focused on cost control and ope
Slide 10: Dealership divisional summary
Dealership divisional summary For personal use only New • Revenue down 4% Motorcycles • Gross profit down 16% Used • Revenue up 16% Motorcycles • Gross profit up 17% Retail accessories • Revenue up 12% and parts • Gross profit up 13% Servicing • Revenue up 8% and repair • Gross profit up 7% Finance,
Slide 11: Operational review
For personal use only review Operational
Slide 12: Market leader in motorcycle retailing
Market leader in motorcycle retailing For personal use only Australia's largest motorcycle dealership group - 32 dealerships and 9 MCA accessory stores Resilient business model with strong OEM relationships sell 13 top motorcycle brands Comprehensive operating footprint across business units and geo
Slide 13: Dealerships
Dealerships For personal use only Continue to grow used bike sales across all brands Cost savings program implemented Acquisition opportunities in current challenging market Two dealerships acquired (post July) Canberra Motorcycle Centre Northside Harley-Davidson, Melbourne MotorCycle Holdings I FY2
Slide 14: Canberra Motorcycle Centre
Canberra Motorcycle Centre For personal use only • Turnover $22 million • Currently retailing 1,376 motorcycles per annum • Acquisition completed MotorCycle Holdings I FY2019 - Full Year Results 10
Slide 15: Northside Harley Davidson
Northside Harley Davidson For personal use only • Turnover $9 million • Currently retailing 226 motorcycles per annum • Located in Brunswick, Melbourne • Extends HD network to Brisbane, Sydney, Canberra, Melbourne • Acquisition completed MotorCycle Holdings I FY2019 - Full Year Results 11
Slide 16: For personal use only
For personal use only MotorCycle Holdings I FY2019 - Full Year Results 12
Slide 17: Cassons – wholesale accessories distribution
Cassons – wholesale accessories distribution For personal use only Inventory management improved, excess stock being cleared, impacted margins More aggressive approach to driving and maintaining sales in challenging market Management strengthened Broadened customer base Falling $AUD against $USD imp
Slide 18: For personal use only
For personal use only MotorCycle Holdings I FY2019 - Full Year Results 14
Slide 19: MCAS Accessory Stores
MCAS Accessory Stores For personal use only Used bikes now sold through 5 MCA stores Improved staffing management Increased profit despite reduction in accessory sales Online store to be upgraded. MotorCycle Holdings I FY2019 - Full Year Results 15
Slide 20: Finance JV – MCF
Finance JV – MCF For personal use only Formed finance JV with Allied Credit, a major industry company in motorcycle finance Business performing in line with budget and expectations Profits forecast for FY20 and increasing in subsequent years Provides support and additional profit MotorCycle Holdings
Slide 21: Focus and Outlook
For personal use only Focus and Outlook MotorCycle Holdings I FY2019 - Full Year Results 17
Slide 22: 2019/20 Focus to address market conditions
2019/20 Focus to address market conditions For personal use only Leverage the current network • Improve dealership performance • Increase used bike sales Grow • Continue to review acquisition opportunities in a weak market • Increase used motorcycle sales through MCA stores • Add new range of produc
Slide 23: Outlook
Outlook For personal use only Dealership opportunities available at appropriate value Expected uplift in used bike sales through MCA retail store expansion Costs out and management changes yielding improved performance Profit contribution from MCF finance JV New motorcycle market remains challenging
Slide 24: Thank you
For personal use only Motorcycle Holdings Limited Thank you
MotorCycle Holdings — Shareholder Meeting (November 2019) on 6ix