Motorcycle Holdings Ltd. · ASX:MTO
Motorcycle — H1 2018 Earnings Presentation
15 slides from Motorcycle's earnings presentation, Feb 27, 2018
Slide 1: Interim Financial Results December 2017
MOTORCYCLE HOLDINGS For personal use only Interim Financial Results December 2017 MotorCycle Holdings
Slide 2: Disclaimer and Important Information
Disclaimer For personal use only Disclaimer and Important Information • 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
Slide 3: Results Highlights
Results Highlights For personal use only 1 Record sales revenue of $140.1 million, up 16% from Dec 2016 2 Underlying EBITDA up 5% to $9.0 million. Cassons acquisition completed October. Acquisition proceeding broadly 3 to plan. Dealership network expanded to 28 dealership locations. Confirms MTO as
Slide 4: MTO lifts new motorcycle market share
MTO lifts new motorcycle market share For personal use only Industry new motorcycle sales MTO new motorcycles sales steady down 13.7% vs Dec 16 9089 7538 Second H2 Half 53672 6482 6413 53396 50908 6016 4146 53084 51008 H2 3507 4944 New 719 stores H1 Same 4943 4225 stores First 63885 59615 57703 6167
Slide 5: MTO used motorcycle sales rise in subdued market
MTO used motorcycle sales rise in subdued market For personal use only Qld Dealer Used Motorcycle Sales MTO Used Motorcycle Sales down 14% vs Dec 2016 increased 8.4% 7102 7221 6726 6441 6559 6393 6055 5890 5888 5335 3284 3603 Second 3122 3071 3320 3140 Half 2860 3923 451 New stores 3618 3472 Existin
Slide 6: Record revenues
Record revenues For personal use only • Record revenues driven by H1 Group Revenue up 16% ($M) acquisitions 235 209 • Four new dealerships added H2 since Dec 2016 contributed $21 164 173 H2 115 million to revenues in half year 149 104 140 12 Cassons • Cassons acquisition contributed 21 New Stores $1
Slide 7: Challenging market contains profit growth
Challenging market contains profit growth For personal use only Underlying EBITDA up 5% Underlying EBITDA Margin ($million) remains strong (%) 14.6 12.9 H2 6.2 H2 5.8 7.5 7.8 6.4 7.1 6.7 6.4 5.7 H1 H1 5.4 H1 8.6 9.0 7.0 2013 2014 2015 2016 2017 2018 Dec 15 Jun 16 Dec 16 Jun 17 Dec 17 *Underlying EBI
Slide 8: Key divisions performing well
Key divisions performing well For personal use only New Motorcycles • Revenue up 5% • Gross profit up 10% Used Motorcycles • Revenue up 11% • Gross profit up 11% Accessories • Revenue up 75% and parts • Gross profit up 89% Servicing • Revenue up 9% and repair • Gross profit up 1% Finance, insurance
Slide 9: Dealer network expanded
Dealer network expanded For personal use only • Evolution Motorcycles Epping, and Action Motorcycles Nerang acquired March 2017 • Sunshine Coast Harley-Davidson Kunda Park acquired May 2017 • TeamMoto Frankston acquired December 2017. • Confirms MotorCycle Holdings position as Australia’s #1 motorcy
Slide 10: Cassons acquisition
Cassons acquisition For personal use only • Cassons acquired October 2017 for $119.8 million • Two sections of the Cassons business: – Wholesale importer and distributer of accessories and parts to retailers including MTO – MotorCycle Accessories Supermarket, retails motorcycle accessories and parts
Slide 11: Full profit statement
Full profit statement For personal use only Change $m Notes Dec-17 Jun-17 Dec-16 Dec 17 vs Dec 16 Revenue 140.1 114.6 120.7 16% Materials purchased and change in inventories -101.4 -84.5 -88.4 15% Gross Profit 38.7 30.1 32.3 20% Gross profit margin 27.6% 26.3% 26.8% Employee benefits expense -20.9 -
Slide 12: Same store profit statement
Same store profit statement For personal use only Change $m Notes Dec-17 Dec-16 Dec 17 vs Dec 16 Revenue 107.1 120.7 -11% Materials purchased and change in inventories -78.6 -88.4 -11% Gross Profit 28.5 32.3 -12% Gross profit margin 26.6% 26.8% Employee benefits expense -16.1 -17.4 -7% Occupancy exp
Slide 13: Strong growth opportunities
Strong growth opportunities For personal use only Key business elements Leading growth opportunities Dealership acquisitions New motorcycle sales Greenfield site development Core Leverage new motorcycle dealership growth Strategy: Used motorcycle sales Co-locate with retail accessory shops New Lever
Slide 14: Outlook
Outlook For personal use only • Increased sales from expanded network • More dealerships and one accessory store being added this half • Revenue synergies and efficiencies emerging • Trading conditions subdued, but the company expects growth in revenues and earnings this half as new businesses come
Slide 15: MotorCycle Holdings
For personal use only MotorCycle Holdings Motorcycle HoldingsInvestor Presentation 15