Motorcycle Holdings Ltd. · ASX:MTO
Motorcycle — H1 FY2020 Earnings Presentation
26 slides from Motorcycle's earnings presentation, Feb 27, 2020
Slide 1: ASX cover letter: Half Year Results Presentation
REGISTERED OFFICE 68 Moss Street Slacks Creek Q 4127 PO Box 654 For personal use only Springwood Q 4127 Tel | 07 3380 2235 The Manager ASX Market Announcements Office 20 Bridge Street Sydney NSW 2000 27 February 2020 Dear Sir/Madam Half Year Results Presentation MotorCycle Holdings Limited (ASX: MTO
Slide 2: Motorcycle Holdings Limited Interim Results December 2019
For personal use only Motorcycle Holdings Limited Interim Results December 2019
Slide 3: 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 4: Contents
Contents For personal use only I RESULTS OVERVIEW I FINANCIAL RESULTS I TRADING CONDITIONS I OPERATIONAL REVIEW I FY2020 FOCUS MotorCycle Holdings I Interim Financial Results December 2019 3
Slide 5: Results overview
For personal use only Results overview
Slide 6: Results Overview
Results Overview For personal use only Sales revenue of $178.2m, up 3.1% (2019: $172.8m). Like for like sales increased by 0.4% Underlying EBITDA decreased to $9.9m, down 4.8% (2019: $10.4m). Underlying EBITDA margin of 5.6% slightly down (2019: 6.0%) Expenses increased overall reflecting $800K savi
Slide 7: Results Overview
Results Overview For personal use only New bike market share increased to 11.1% (2019: 10.9%) Cassons’ sales up 4.3% but margin pressure impacted gross profit MTO Harley Davidson unit sales up 15.2% for the half, 11.2% like for like No interim dividend declared to allow continued investment and acqu
Slide 8: Operational summary
Operational summary For personal use only New • Revenue up 4% Motorcycles • Gross profit up 27% Used • Revenue up 7% Motorcycles • Gross profit up 14% Retail accessories • Revenue down 1% and parts • Gross profit down 7% Servicing • Revenue down 6% and repair • Gross profit up 4% Finance, insurance
Slide 9: Financial results
For personal use only results Financial
Slide 10: Profit and Loss
2. Profit and Loss For personal use only $ Million 1H FY 20 1H FY 19 % Change Sales 178.2 172.8 3.1% Summary Cost of sales (126.8) (122.2) 3.8% Gross Profit 51.4 50.7 1.4% • Total sales of $178.2 million, up 3.1% Gross Profit margin 28.8% 29.3% • Gross profit margin of 28.8% CODB (36.6) (40.3) EBITD
Slide 11: Expenses
2. Expenses For personal use only Notes • Cost saving exercise in existing dealerships delivered $800k savings, offset by 2 additional dealerships for 2 months • Keilor MCA store was in initial rent free period in 2018 • MCA used bike expenses relate to adding used bike sales staff • Cassons strateg
Slide 12: Balance sheet & dividends
2. Balance sheet & dividends For personal use only Capital $ Million 1H FY20 1H FY 19 Cash and Cash Equivalents 9.6 5.1 • Cash at bank $9.6 million Trade and Other Receivables 7.8 7.0 • CBA Facility renewed until Jan 2023 on Inventories 91.3 83.8 similar conditions Plant and Equipment 11.6 11.9 Leas
Slide 13: Revenue and NPAT
2. Revenue and NPAT For personal use only Revenue up 3% ($M) NPAT down 5% ($M) 330 9.3 302 8.5 8.0 8.3 3.7 235 157 3.1 209 165 3.6 4.6 173 164 114.6 4.5 4.6 104.3 5.6 5.2 173 173 178 4.6 4.8 164 4.5 4.4 140 3.9 120.7 105.1 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 First H
Slide 14: AASB Leases
AASB 16 Leases For personal use only Modified Retrospective approach adopted, which does not restate comparative information. New balance sheet items recognised for • Lease right of use asset $31.8M • Lease liabilities ($34.5M) At transition on 1/7/19 the difference was recorded as a reduction to Re
Slide 15: Trading Conditions
For personal use only Trading Conditions
Slide 16: New motorcycle unit sales steady
3. New motorcycle unit sales steady For personal use only Industry new motorcycle MTO new motorcycle sales down 0.8% sales up 1.0% 117,557 113,011 110,787 112,587 106,220 9575 9468 101,114 9089 89,595 53672 53396 50908 7538 53084 51008 4631 4315 47942 4146 6484 6415 42457 6016 3507 3606 3531 3096 63
Slide 17: Used motorcycle unit sales rise in flat market
3. Used motorcycle unit sales rise in flat market For personal use only Used motorcycle unit sales up 6.2% 9068 8179 7221 6393 4366 5888 5890 4256 3603 3140 First Half 5888 5890 Second Half 4992 4702 3618 3923 3253 2014 2015 2016 2017 2018 2019 2020 MotorCycle Holdings I Interim Financial Results De
Slide 18: Operational review
For personal use only review Operational
Slide 19: Retail
4. Retail For personal use only Completed acquisition of Canberra Motorcycles and Brunswick Harley Davidson – both are outperforming expectations Continued to grow used motorcycle sales across all brands, including Harley Davidson Achieved used motorcycle volume growth through full contribution from
Slide 20: Wholesale
4. Wholesale For personal use only Cassons sales up 4.3% Gross margin reduced due to aggressive pricing and clearing of aged stock Increased investment in marketing, freight subsidies and people to drive growth and establish a stronger platform for the future Improved stock planning and warehouse ma
Slide 21: Finance JV – MCF
4. Finance JV – MCF For personal use only Small profit forecast for FY20 and increasing in subsequent years Strong operational platform and funding lines in place MotorCycle Holdings I Interim Financial Results December 2019 20
Slide 22: FY 2020 Focus
For personal use only Focus FY 2020
Slide 23: FY2020 Focus
5. FY2020 Focus For personal use only Improve the current network • Improving productivity, cost reductions and increasing profitability of dealerships and retail stores • Continue to grow used motorcycle sales through existing dealerships • Maintain revenue growth and improve margins in wholesale b
Slide 24: External factors
5. External factors For personal use only Coronavirus • Minimal delay on Cassons shipments from China - situation is being monitored and length of delay subject to change • Impacts can include delay of wholesale inventory from Chinese factories, or disruption of supply in other countries that use Ch
Slide 25: Indian Motorcycles
5. Indian Motorcycles For personal use only Indian was America’s first motorcycle company and remains a strong, iconic brand MTO to be appointed as dealers in 6 of our existing sites in Brisbane, Gold Coast, Sydney and Melbourne Replacing 3 factory owned dealerships, which will be closed Expected gr
Slide 26: Thank you
For personal use only Motorcycle Holdings Limited Thank you
MotorCycle Holdings — H1 FY2020 Earnings Presentation on 6ix