Motorcycle Holdings Ltd. · ASX:MTO
Motorcycle — H1 FY2022 Earnings Presentation
24 slides from Motorcycle's earnings presentation, Feb 25, 2022
Slide 1: MotorCycle Holdings Limited Interim Results December 2021
For personal use only MotorCycle Holdings Limited Interim Results December 2021
Slide 2: 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 3: Agenda
Agenda For personal use only 1 > Summary highlights 2 > Financial results 3 > Operational performance 4 > FY2022 outlook
Slide 4: Summary highlights
For personal use only > Summary highlights
Slide 5: Financial highlights
Financial highlights For personal use only 1 > Revenue increased 9% to $237.0 million 2 > Gross profit increased 3% to $66.6 million 3 > Gross profit margin 28.1%* 4 > Underlying EBITDA decreased 6% to $19.8 million 5 > NPAT decreased 27% to $12.6 million** 6 > Interim dividend of 12c/share * Mix be
Slide 6: Operational highlights
Operational highlights For personal use only 1 > Demand remains strong in all areas of the business 2 > New motorcycles volumes increased despite Sydney, Melbourne and Canberra lockdowns for long periods. Industry new bike sales increased 21% due to high off-road bike volumes 3 > Used bike stock sup
Slide 7: Financial results
For personal use only results > Financial
Slide 8: Profit results
Profit results For personal use only 1H FY22 ($m) 1H FY21 ($m) Change Total income 237.0 218.4 9% Cost of sales (170.4) (153.7) 11% Gross profit 66.6 64.7 3% Gross Profit Margin (%) 28.1% 29.6% (5%) Employee benefits expense (30.5) (29.6) 3% Occupancy expense (1.4) (1.3) 8% Other expenses * (8.6) (7
Slide 9: Balance sheet
Balance sheet For personal use only 1H FY22 ($m) 1H FY21 ($m) Capital Structure Cash and cash equivalents 4.9 7.4 Trade and other receivables 9.1 8.8 ► Bank loan $10 million offset by $5 million cash. 99.8 71.5 $5 million used to fund NZ acquisition Inventories Plant and equipment 11.8 11.7 ► CBA fa
Slide 10: Growing market value
Growing market value For personal use only 12 months to 31/12/21 12 months to 31/12/20 Change Net profit after tax (NPAT) $23.7 m $3.3 m 618% NPAT before non cash impairment $23.7 m $27.6 m (14%) Number of shares 61.7 m 61.7 m - Share price at 31/12/21 and 31/12/20 $3.24 $2.65 22% Dividend per share
Slide 11: Consistent revenue growth
Consistent revenue growth For personal use only Revenue increased 8% to $237.0 million $500 $450 434 $400 364 $350 330 302 216 $300 186 Millions $250 235 157 237 162 $200 114 $150 237 $100 218 173 178 140 121 $50 $0 2017 2018 2019 2020 2021 2022 First Half Second Half MotorCycle Holdings I FY2022 In
Slide 12: NPAT results remain strong
NPAT results remain strong For personal use only NPAT $12.6 million for the half $30 28.3 $25 11.1 $20 15.2 First Half Millions $15 12.6 Second Half 9.3 $10 8.5 8.3 10.4 17.2 3.7 3.1 12.6 4.6 $5 5.6 5.2 4.8 3.9 $0 2017 2018 2019 2020* 2021** 2022 * 2H20 NPAT is before impairment and includes JobKeep
Slide 13: Operational performance
> For personal use only Operational performance
Slide 14: Strong growth in new motorcycle sales
Strong growth in new motorcycle sales For personal use only Industry new motorcycle unit sales* MTO new motorcycle unit sales increased 21% increased 14% 112587 111927 101114 13264 99581 89595 11013 50908 55840 9575 9468 47942 9089 6494 52839 42457 7699 5807 4146 4631 4315 67690 61679 56087 7699 531
Slide 15: Used motorcycles maintain growth trajectory
Used motorcycles maintain growth trajectory For personal use only Used motorcycle unit sales increased 14% 10082 9430 9068 8179 7221 5088 4366 4733 4256 5360 3603 4994 5360 4702 4697 3618 3923 2017 2018 2019 2020 2021 2022 First Half Second Half MotorCycle Holdings I FY2022 Interim Financial Results
Slide 16: Diversified profit drivers
Diversified profit drivers For personal use only $18 $16 $14 $12 $10 Millions $8 16.6 15.0 $6 12.7 12.6 10.6 11.0 9.9 9.1 $4 7.7 8.1 7.5 7.3 $2 $0 New Motorcycles Used Motorcycles Retail Parts & Accessories Wholesale Accessories Service Finance & Insurance H1 FY21 Gross Profit H1 FY22 Gross Profit M
Slide 17: Retail update
Retail update For personal use only 1 > Overall strong performance despite 16 dealerships impacted by COVID-19 restricted trading conditions in NSW, ACT and Victoria 2 > New and used motorcycle sales volumes and demand remain strong 3 > Strong increase in retail accessories sales since end of lockdo
Slide 18: Acquisition update
Acquisition update For personal use only 1 > Finalised acquisition of Forbes and Davies - New Zealand’s leading importer and wholesaler of motorcycle tyres, ATV tyres, riding apparel, helmets, accessories and aftermarket parts 2 > Acquisition of Wide Bay Motorcycles completed in early 2022 - Annual
Slide 19: Wholesale update
Wholesale update For personal use only 1 > Sales decreased 7% compared to H1 2021, however gross profit maintained at similar levels due to higher margins 2 > Sales impacted by restricted trading conditions in Sydney, Melbourne and Canberra 3 > Supply chain challenges are ongoing, particularly for a
Slide 20: Finance JV - MCF
Finance JV - MCF For personal use only 1 > $624,000 NPAT for the half, an increase of 52% - expected to increase as portfolio matures 2 > Special provision for COVID-19 losses is in place 3 > Losses peaked in April last year and have trended down 4 > Debt collections improved and responsible lending
Slide 21: FY2022 outlook
For personal use only outlook FY2022 >
Slide 22: FY2022 focus
FY2022 focus For personal use only 1 > Maintain current strong margins and tight control of overheads 2 > Continue to actively pursue potential dealership acquisition opportunities 3 > Continue organic growth with broadened product offering in both retail and wholesale network 4 > New e-commerce pla
Slide 23: FY2022 outlook
FY2022 outlook For personal use only 1 > Increased market demand and trading conditions remain strong and consistent despite COVID-19 challenges and stock supply delays 2 > Supply of new motorcycles and accessories expected to improve during the next 12 months 3 > Heightened sales demand momentum is
Slide 24: Thank you
MotorCycle For personal use only Holdings Limited Thank you
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