Tourism Holdings Limited · NZX:THL
Tourism — H1 FY16 Earnings Presentation
33 slides from Tourism's earnings presentation, Feb 23, 2016
Slide 1: Tourism Holdings Ltd FY16 Interim Results Presentation
TOURISM HOLDINGS LTD FY16 INTERIM RESULTS PRESENTATION 23 February 2016
Slide 2: H1 FY16 Highlights
H1 FY16 Highlights Earnings before interest Revenue and tax* Net profit after tax $134M $15.0M $8.2M up 20% up 42% up 45% H1 EBIT 15.0 Interim dividend 10.6 9 cps 7.2 $M (partially imputed) 5.3 up 29% FY13 FY14 FY15 FY16 * EBIT excludes joint venture and associates earnings 2
Slide 3: Results Summary
Results Summary NZD $M H1 FY16 H1 FY15 Var % Operating revenue 133.7 111.4 22.3 20% Earnings before interest and tax* 15.0 10.6 4.4 42% Operating profit before tax 13.7 9.5 4.2 44% Profit after tax 8.2 5.6 2.6 45% Earnings per share (in cents) 7.2 5.0 2.2 44% H1 Operating Profit Before Tax (NZD$M) 0
Slide 4: Rentals NZ
Rentals NZ Rental income growth of 11% achieved with a similar sized fleet. H1 FY16 - NZD Flex fleet did not start until late December. NZD $M H1 FY16 H1 FY15 Var % Rental income 26.5 23.9 2.6 11% Improved profitability mainly due to Sale of goods 16.3 13.6 2.7 20% small increase in utilisation and
Slide 5: Rentals Australia
Rentals Australia A flat result on FY15. Includes upfront costs for Telematics and H1 FY16 - NZD Melbourne RV Sales Centre, with NZD $M H1 FY16 H1 FY15 Var % benefits not yet realised. Rental income 30.3 29.9 0.4 1% Sale of goods 5.9 5.0 0.9 18% Rental income was up 2% in AUD on FY15 due to higher u
Slide 6: Rentals USA
Rentals USA A strong EBIT result, up 25% in USD H1 FY16 - NZD terms and 61% in NZD. NZD $M H1 FY16 H1 FY15 Var % Rental income 16.9 11.4 5.5 48% Rental income was up 15% in USD Sale of goods 22.7 14.9 7.8 52% terms with higher utilisation, increased fleet and improved yield. Costs 29.8 20.2 (9.6) (4
Slide 7: Tourism Group
Tourism Group EBIT up 37%. Includes launch costs of new Waitomo Caves Homestead H1 FY16 - NZD offering café/ restaurant, retail and ticketing. NZD $M H1 FY16 H1 FY15 Var % Revenue 15.1 12.7 2.4 19% Costs 11.8 10.3 (1.5) (14%) Visitation growth across the shoulder season and running into summer has E
Slide 8: Action Manufacturing
Action Manufacturing NPBT down on FY15, as expected, NPBT H1 FY16 (thl share) - NZD due to lower motorhome margins. NZD $M H1 FY16 H1 FY15 Var % This results in lower build costs for Revenue 15.6 14.1 1.5 11% thl. Costs 14.7 13.0 (1.7) (13%) NPBT 0.9 1.1 (0.2) (18%) H1 included first production of n
Slide 9: New Initiatives Update
New Initiatives Update Flex Fleet Waitomo Caves NZ rental income has Telematics Homestead met expectations. Launch slow, but now fitted in all Australian Opened December. Forward vehicle sales looking positive. vehicles and under pilot in Meeting expectations. NZ. Speeding and other poor driving beh
Slide 10: Business Model and Capital Flexibility
Business Model and Capital Flexibility thl recognises the capital intensity of the core business model and is adapting its approach to investment in fleet accordingly. Our traditional response to growing demand would be to increase long term core fleet. This potentially created fleet over-capaci
Slide 11: Long Term Debt Versus Working Capital
Long Term Debt Versus Working Capital We have positioned the business model today to look at debt and working capital in a different way. The accounting methodologies haven’t changed and fleet are still considered fixed assets. We are now positioning flex-fleet as, in essence, working capital as the
Slide 12: Capital Spend - Flexibility
Capital Spend - Flexibility Flex fleet in FY16 takes the form of: USA fleet, turned over in 9-18 months NZ flex fleet – trialled in NZ for FY16 summer period, turned over in under 9 months. AU flex fleet – 4WD vehicles purchased under a buy-back arrangement for the 2016 winter season, turned o
Slide 13: Capital Structure
Capital Structure Net Debt Net debt has increased to $90M, 100 3.0 predominantly funding flex fleet. 90 $6M 2.5 80 $14M 70 $79M Key ratios remain well within $85M 2.0 benchmark Baa/BBB target rating $90M Debt:EBITDA 60 measures and are considered conservative. There is capacity for $69M $M 50 1.5 va
Slide 14: Gross and Net Capex Spend
Gross and Net Capex Spend Gross capex spend forecast for FY16 has been increased by ~$25M, all but Gross & net capex spend (full year) $4M (Homestead) related to flex fleet 140 growth. 120 FY16 fleet sales proceeds forecast 100 has been increased by ~$15M due to higher flex fleet sales - USA and NZ.
Slide 15: Outlook and Guidance
Outlook and Guidance FY16 full year profit guidance NZD $M Current Previous FY15 Net profit after tax ~$24M ~$22M $20.1M Outlook The outlook for the NZ tourism industry remains positive in both the short and medium term. Globally, tourism remains a high growth industry with emerging markets cont
Slide 16: Dividend
Dividend 9 cent partially imputed (to 50%) interim dividend declared. 50% imputation due to approximately 50% of profits before tax being derived from NZ. Within dividend policy of 75%-90% of NPAT. Dividend cps 10 9 8 7 6 5 4 3 2 1 0 FY14 FY14 FY15 FY15 FY16 Interim* Final Interim Final Interi
Slide 17: Strategic Outlook for thl
Strategic Outlook for thl The business remains focused on achieving ROFE targets in all businesses and delivering the $30M NPAT growth goal by FY2019 or earlier. This goal does not include any growth by acquisition. The balance sheet metrics remain strong and we continue to explore opportunities
Slide 18: Disclaimer
Disclaimer The information in this presentation was prepared by thl with due care and attention. However, the information is supplied in summary form and is therefore not necessarily complete, and no representation is made as to the accuracy, completeness or reliability of the information. In additi
Slide 19: Supporting Analysis
Supporting Analysis 19
Slide 20: Income Statement Summary
Income Statement Summary 6 Months to December $M FY 16 FY 15 Var Var % Revenue from sale of services 88.8 77.9 10.9 14% Revenue from sale of goods 44.9 33.5 11.4 34% Total revenue 133.7 111.4 22.3 20% EBITDA 31.9 26.8 5.1 19% EBIT 15.0 10.6 4.4 42% Interest (2.3) (2.2) (0.1) 5% Share of JV Profit (l
Slide 21: Revenue
Revenue 6 Months to December In Base $M FY16 FY15 Var Currency THL Rentals - Rental Revenue New Zealand 26.5 23.9 11% 11% Australia 30.3 29.9 1% 2% USA 16.9 11.4 48% 15% 73.7 65.2 13% 8% THL Rentals - Sale of Goods New Zealand 16.3 13.6 20% 20% Australia 5.9 5.0 18% 20% USA 22.7 14.9 52% 25% 44.9 33
Slide 22: Divisional EBIT
Divisional EBIT 6 Months to December ; $M FY16 FY15 Var THL Rentals New Zealand (0.0) (1.1) 98% Australia 4.7 4.7 (0%) USA 9.8 6.1 61% 14.5 9.7 49% Tourism Group 3.3 2.4 37% Total Operating Divisions 17.8 12.1 47% Group Support Services (2.8) (1.6) (79%) EBIT 15.0 10.6 42% Split Australia 4.7 4.7 (0
Slide 23: Divisional Review
Divisional Review 6 months to December 2015 6 Months to December 2014 Divisional Funds Operating Divisional Funds Operating $M Revenue EBIT Employed Cashflow* Revenue EBIT Employed Cashflow* Rentals New Zealand 42.8 (0.0) 129.0 (17.8) 37.5 (1.1) 124.1 (14.7) Rentals Australia 36.2 4.7 55.0 1.9 34.9
Slide 24: EBITDA
EBITDA 6 Months to December $M FY 16 FY 15 Var Var % EBIT 15.0 10.6 4.4 42% Add back non-cash Items: Amortisation 0.8 0.8 0.0 Depreciation 16.1 15.4 0.7 EBITDA 31.9 26.8 5.1 19% 24
Slide 25: Balance Sheet
Balance Sheet As at $M Dec 15 Dec 14 Var Equity 169.6 159.3 10.3 Non current liabilities 109.0 75.4 33.6 Current liabilities 49.1 66.4 (17.3) Total source of funds 327.7 301.1 26.6 Intangible assets and goodwill 20.9 20.6 0.3 Investments in associates 3.8 0.3 3.5 Non current assets 249.2 232.7 16.5
Slide 26: Cashflow
Cashflow 6 Months to December $M FY 16 FY 15 Var Var % Vehicle sales 44.9 33.5 11.4 34% Vehicle purchases (61.9) (39.5) (22.4) 57% Net fleet capex (17.0) (6.0) (11.0) 183% Other operating cashflow 8.0 7.9 0.1 1% Cashflow from operating activities (9.0) 1.9 (10.9) (574% ) Purchase of property, plant
Slide 27: Gain on Fleet Vehicle Sales and Gross Profit
Gain on Fleet Vehicle Sales and Gross Profit 6 Months to December $M FY16 FY15 Var Var % Gain on sales of motorhome fleet before selling costs 6.5 5.8 0.7 12% Vehicle sales costs ($M) 2.1 1.6 0.5 32% Gain on sales of motorhome fleet after selling costs 4.4 4.2 0.2 5% Gross profit on non-fleet vehicl
Slide 28: Forecast FY16
Forecast FY16 NPAT $M H1 H2 FY FY15 reported actual NPAT 5.6 14.5 20.1 FY16 forecast NPAT FY16 forecast NPAT before exchange rate impact 7.2 15.7 22.9 Exchange rate impact* 1.0 0.1 1.1 FY16 forecast NPAT 8.2 15.8 24.0 NPAT growth before exchange rate impact 1.6 1.2 2.8 28% 9% 14% * Impact of movemen
Slide 29: Fleet Size
Fleet Size Rentals NZ Rentals Australia 2,200 1,400 1,350 2,000 1,300 1,800 1,250 1,600 1,200 1,400 1,150 1,100 1,200 1,050 1,000 1,000 June 2014 Dec 2014 June 2015 Dec 2015 June 2014 Dec 2014 June 2015 Dec 2015 Rentals USA Proportion of Fleet 650 600 12% 550 500 450 34% 54% 400 350 300 250 200 June
Slide 30: Gross Capex Spend
Gross Capex Spend Gross capex spend (full year) 140 FY16 gross capital spend forecast has been increased by ~$25M to $125M- $130M due to: 120 Waitomo Caves Homestead +$4M 100 Increase in US fleet due to strong sales, increase for summer 2016 & 80 exchange rate $M 60 NZ Rentals flex-fleet AU
Slide 31: Fleet Sales Proceeds
Fleet Sales Proceeds Fleet sales proceeds forecast increased by ~$15M to $80M-$85M Fleet sales proceeds (full year) due to: 80 Improved US demand for vehicle sales 70 NZ Rentals flex-fleet 60 50 $M 40 30 20 10 0 FY14 FY15 FY16f Rentals USA Rentals AU Rentals NZ 31
Slide 32: Net Capex Spend
Net Capex Spend Net capex cashflow forecast for FY16 $40M-$45M. Increase on last forecast Net capital expenditure (full year) ~$10M mainly due to: Australian 4WD flex-fleet for winter 45 2016. This year will be on buy-back arrangement vs operating lease in 2015. 35 Waitomo Caves Homestead. 25 $M
Slide 33: End
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