Motorcycle Holdings Ltd. · ASX:MTO
Motorcycle — Shareholder Meeting (October 2022)
50 slides from Motorcycle's shareholder meeting presentation, Oct 27, 2022
Slide 1: Presentations to 2022 Annual General Meeting
REGISTERED OFFICE 68 Moss Street Slacks Creek Q 4127 PO Box 654 For personal use only Springwood Q 4127 Tel | 07 3380 2290 The Manager Company Announcements Office Australian Securities Exchange 20 Bridge Street Sydney NSW 2000 27 October 2022 MotorCycle Holdings Limited (ASX: MTO) – Presentations t
Slide 2: Chair's Address
Chair’s Address 2022 Annual General Meeting | 27 October 2022 I would like to say a few words about the progress of the Company. 2022 Financial Year For personal use only Reflecting on the past year, 2022 has been both a challenging and rewarding year. It has been a year in which the resilience of o
Slide 3: Chair's Address: board succession and the year ahead
Warren Bee and I have announced our retirement from the Board, effective 23 December, and on behalf of the Directors I extend my thanks to Warren on his outstanding contribution and wish him well for his future endeavours. Warren has been a highly valued member of the Board for more than 15 years an
Slide 4: Chair's Address closing
In closing, I would like to acknowledge the support of my fellow Directors and the hard work and contribution of the management teams across the Group. Finally, thank you to our shareholders for your ongoing support. We are excited about the year ahead and look forward to continuing to deliver for s
Slide 5: Managing Director's Address
Managing Director’s Address 2022 Annual General Meeting | 27 October 2022 Thank you, Chairman. Good morning Shareholders and thank you for your interest in MotorCycle Holdings’ Annual General Meeting. For personal use only Today I will address the Company’s performance during the past financial year
Slide 6: FY22 profit and unit sales performance
The Company achieved Net Profit After Tax of $23.1 million, while down 18% from $28.3 million in 2021, with this prior year result also including a JobKeeper payment of $5.8 million. You can see how our NPAT result has come back from the major spike experienced over the past two years. This chart sh
Slide 7: Strategic developments post year-end
Strategic developments post year-end MotorCycle Holdings continues to explore other motorcycle franchise acquisition opportunities to increase its market share and geographic coverage in Australia. In another exciting development following year-end, the Company signed a binding agreement to acquire
Slide 8: Outlook and closing remarks
MotorCycle Holdings will continue to seek opportunities to further diversify our product range. Despite these positives, we are preparing for more subdued trading conditions as consumer demand moderates due to cost-of-living pressures. As we look back on the challenges and opportunities of FY22, I w
Slide 9: Annual General Meeting October 2022
For personal use only ANNUAL GENERAL MEETING 27 OCTOBER 2022
Slide 10: Disclaimer and Important Information
DISCLAIMER AND IMPORTANT INFORMATION For personal use only This presentation may contain certain unaudited financial information The information in this presentation does not take into account the in relation to MotorCycle Holdings Limited (MTO, ‘the Company’). As objectives, financial situation or
Slide 11: Our People: Board and Senior Executive Team
OUR PEOPLE Board and Senior Executive Team For personal use only DAVID FOSTER DAVID AHMET WARREN BEE RICK DENNIS BOARD CHAIR MANAGING DIRECTOR, NON EXECUTIVE DIRECTOR, NON EXECUTIVE DIRECTOR, CEO CHAIR OF NOMINATION AND CHAIR OF AUDIT & REMUNERATION COMMITTEE RISK COMMITTEE
Slide 12: Our People: Board and Senior Executive Team
OUR PEOPLE Board and Senior Executive Team For personal use only PETER HENLEY ROB CASSEN BOB DONOVAN NICOLE SPINK NON EXECUTIVE NON EXECUTIVE CHIEF FINANCIAL COMPANY SECRETARY DIRECTOR, COMPANY DIRECTOR OFFICER REPRESENTATIVE FOR MCF
Slide 13: Agenda
For personal use only AGENDA 1. Chair’s Address 2. Managing Director’s Address 3. Questions 4. Formal Business 5
Slide 14: Chair's Address
For personal use only CHAIR’S ADDRESS
Slide 15: Resilient Performance in Challenging Market
RESILIENT PERFORMANCE IN CHALLENGING MARKET For personal use only Diversified revenue streams Geographical footprint Business growth without cost Coverage across Australia and base increases by adding new New Zealand with further products to existing sites potential Strong brand representation Prude
Slide 16: Strong Brand Representation
STRONG BRAND REPRESENTATION For personal use only 8
Slide 17: FY2022 Financial Results
FY2022 FINANCIAL RESULTS For personal use only REVENUE FINAL DIVIDEND PER SHARE FULLY FRANKED 7% to 8c | 20c $462.6m half year | full year UNDERLYING EBITDA NPAT1 4% to 18% to $37m $23.1m 1. FY21 NPAT included $5.8 million JobKeeper payment 9
Slide 18: Strategic Outlook
• Continued to experience solid demand STRATEGIC For personal use only across all regions where we operate OUTLOOK • Balance sheet strength and liquidity position provide the flexibility and capacity to continue the growth of our business • Further investment in organic growth opportunities, and we
Slide 19: Managing Director's Address
For personal use only MANAGING DIRECTOR’S ADDRESS
Slide 20: Market Outperformance
MARKET OUTPERFORMANCE For personal use only Unique value Consolidated national All divisions performed proposition – scale, market leadership well despite the influence brand representation, position 12% of national of the external and geographic and new motorcycle sales environment product diversif
Slide 21: Resilient Revenue Growth
RESILIENT REVENUE GROWTH For personal use only Revenue increased 7% to $462.6 million Revenue growth ($m) 500 450 462.6 400 433.9 7% 350 363.7 19% 300 329.9 10% 9% 302.4 250 200 235.3 29% 150 100 50 0 2017 2018 2019 2020 2021 2022 MOTORCYCLE HOLDINGS 13
Slide 22: NPAT Results
NPAT RESULTS For personal use only NPAT ($m) 30 28.3 25 18% 23.1 20 15 15.2 86% 10 9.3 83% 8.5 8.3 5 9% 2% 0 2017 2018 2019 2020* 2021* 2022 * Includes JobKeeper payment MOTORCYCLE HOLDINGS 14
Slide 23: Annual Gross Profit
ANNUAL GROSS PROFIT For personal use only Annual Gross Profit ($m) 140 132.4 120 128.5 3% 100 26% 102.1 96.4 6% 80 87.8 10% 60 62.3 41% 40 20 0 2017 2018 2019 2020 2021 2022 MOTORCYCLE HOLDINGS 15
Slide 24: Balance Sheet
BALANCE SHEET For personal use only BALANCE SHEET AS AT ($M) 30 JUNE 22 30 JUNE 21 CHANGE % Cash and cash equivalents 3.9 4.7 (17%) Trade and other receivables 7.1 8.6 (17%) Inventories 107.6 86.2 25% Plant and equipment 11.8 11.5 3% Lease right of use assets 45.8 43.2 6% Goodwill and intangibles 94
Slide 25: New Motorcycle Unit Sales Continue to Outperform Market
NEW MOTORCYCLE UNIT SALES CONTINUE TO OUTPERFORM MARKET For personal use only Industry new motorcycle unit MTO new motorcycle unit sales increased 4% sales increased 7% 140,000 16,000 14,039 116,619 14,000 120,000 112,587 111,927 13,264 6,340 101,114 99,581 48,929 6,494 50,908 55,840 12,000 100,000
Slide 26: Used Motorcycle Unit Sales Growth
USED MOTORCYCLE UNIT SALES GROWTH For personal use only MTO used motorcycle unit sales increased 10% 12,000 10,082 10,374 10,000 9,430 5,014 9,068 5,088 8,179 4,733 4,366 8,000 7,221 4,256 3,603 6,000 5,360 4,994 4,000 4,702 4,697 3,923 3,618 2,000 0 2017 2018 2019 2020 2021 2022 First half Second h
Slide 27: Diversified Earnings
DIVERSIFIED EARNINGS For personal use only 35,000 5% 32,406 30,000 30,743 1% 25,000 7% 9% 24,125 24,364 20,000 21,930 20,550 19,859 2% 2% 18,213 15,000 14,965 15,228 14,323 14,541 10,000 5,000 0 New motorcycles Used motorcycles Parts and accessories - Parts and accessories - Service Finance and insu
Slide 28: Acquisitions Update
ACQUISITIONS UPDATE For personal use only • In FY2022, we continued to add to our portfolio with a number of strategically aligned acquisitions • Finalised the acquisition of Forbes and Davies, a leading New Zealand importer and wholesaler of motorcycle tyres, ATV tyres, riding apparel, helmets, acc
Slide 29: Strategic Acquisitions Post-Year End
STRATEGIC • Binding agreement to acquire Mojo Group, one of ACQUISITIONS Australia's largest importers and wholesalers of motorcycles, genuine spare parts and accessories For personal use only POST-YEAR • Group is a motorcycle, scooter, ATV, electric motorcycle and genuine spare parts and END access
Slide 30: Current State of Play (July–October)
CURRENT STATE OF For personal use only • Retail accessories remains robust, despite supply PLAY chain challenges • Capitalising on current business conditions (JULY–OCTOBER) through underlying business strength, coupled with progress of strategic acquisitions • Strong order book expected to protect
Slide 31: Outlook
• Supply chain challenges are ongoing, particularly for new For personal use only motorcycles. Hopeful supply will improve over the next 12 months OUTLOOK • In FY23, Forbes and Davies and Wide Bay Motorcycles contribute their first full year of earnings • Incremental contribution from Future Sport M
Slide 32: Questions
For personal use only QUESTIONS
Slide 33: Formal Business
For personal use only FORMAL BUSINESS
Slide 34: Financial Statements
For personal use only FINANCIAL STATEMENTS
Slide 35: Ordinary Business: Resolution 1 Remuneration Report
ORDINARY For personal use only BUSINESS To consider and, if thought fit, pass the following Resolution as an ordinary Resolution in Resolution 1: accordance with s 250R (2) Corporations Act: Remuneration Report “That the Remuneration Report for the year ended 30 June 2022 (as set out in the Director
Slide 36: Resolution 1: Remuneration Report Proxy Results
RESOLUTION 1 For personal use only REMUNERATION REPORT — PROXY RESULTS % OF ALL VOTE TYPE VOTED % SECURITIES For 23,072,633 99.68 37.39 Against 61,965 0.27 0.1 Open – Usable 10,500 0.05 0.02 Board 10,500 0.05 0.02 Non-Board 0 0 0 Open-Cond 0 0 0 Open Unusable 0 N/A 0 Abstain 3,174 N/A 0.01 Excluded
Slide 37: Ordinary Business: Re-election of Rick Dennis
ORDINARY For personal use only BUSINESS Resolution 2: Re-election of Rick Dennis as a Director To consider and, if thought fit, pass the following Resolution as an ordinary Resolution of the Company: “That Rick Dennis, who retires in accordance with Rule 10.7 of the Constitution, and being eligible,
Slide 38: Re-election of Rick Dennis: Proxy Results
RESOLUTION 2 For personal use only RE-ELECTION OF RICK DENNIS AS A DIRECTOR — PROXY RESULTS % OF ALL VOTE TYPE VOTED % SECURITIES For 41,938,597 99.93 67.96 Against 14,191 0.03 0.02 Open – Usable 14,100 0.04 0.02 Board 10,500 0.03 0.02 Non-Board 3,600 0.01 0.01 Open-Cond 0 0 0 Open Unusable 0 N/A 0
Slide 39: Long-Term Incentive Plan: Participation of David Ahmet
LONG-TERM For personal use only To consider and, if thought fit, pass the following Resolution as an ordinary Resolution of the INCENTIVE PLAN Company: Resolution 3: Approval of “That for the purposes of ASX Listing Rule 10.14 Participation of David Ahmet and for all other purposes, approval is give
Slide 40: Long-Term Incentive Plan Proxy Results
RESOLUTION 3 For personal use only APPROVAL OF PARTICIPATION OF DAVID AHMET IN LONG-TERM INCENTIVE PLAN — PROXY RESULTS % OF ALL VOTE TYPE VOTED % SECURITIES For 29,859,733 99.62 48.39 Against 102,108 0.34 0.17 Open – Usable 10,500 0.04 0.02 Board 10,500 0.04 0.02 Non-Board 0 0 0 Open-Cond 0 0 0 Ope
Slide 41: Acquisition Resolutions: Issue of shares
ACQUISITION For personal use only RESOLUTIONS To consider and, if thought fit, pass the following Resolution 4: Approval to Resolution as an ordinary Resolution of the issue shares under Sale and Purchase Deed Company: “That for the purposes of ASX Listing Rule 7.1 and all other purposes, Shareholde
Slide 42: Issue of Shares Proxy Results
RESOLUTION 4 For personal use only APPROVAL TO ISSUE SHARES UNDER SALE AND PURCHASE DEED % OF ALL VOTE TYPE VOTED % SECURITIES For 41,933,228 99.87 67.96 Against 35,960 0.09 0.06 Open – Usable 14,100 0.04 0.02 Board 10,500 0.03 0.02 Non-Board 3,600 0.01 0.01 Open-Cond 0 0 0 Open Unusable 0 N/A 0 Abs
Slide 43: Acquisition Resolutions: Financial assistance
ACQUISITION To consider and, if thought fit, pass the following Resolution as a For personal use only special Resolution of the Company: RESOLUTIONS “That for the purposes of section 260A and 260B(2) of the Corporations Act and for all other purposes, the giving of financial assistance by Mojo Motor
Slide 44: Financial Assistance Proxy Results
RESOLUTION 5 For personal use only APPROVAL OF FINANCIAL ASSISTANCE IN CONNECTION WITH THE ACQUISITION OF MOJO GROUP % OF ALL VOTE TYPE VOTED % SECURITIES For 41,883,538 99.76 67.88 Against 41,366 0.1 0.07 Open – Usable 60,500 0.14 0.1 Board 60,500 0.14 0.1 Non-Board 0 0 0 Open-Cond 0 0 0 Open Unusa
Slide 45: Special Business: Resolution 6 Withdrawn
SPECIAL For personal use only BUSINESS Resolution 6: Approval of RESOLUTION WITHDRAWN. Amendments to the Constitution of the Company to allow for Virtual-only Meetings MOTORCYCLE HOLDINGS 37
Slide 46: Special Business: General Amendments to the Constitution
SPECIAL For personal use only BUSINESS To consider and, if thought fit, pass the following Resolution 7: Approval of Resolution as an ordinary Resolution of the General Amendments to the Constitution of the Company: Company General “That the deletions, insertions, and changes to the current Constitu
Slide 47: Constitution Amendments Proxy Results
RESOLUTION 7 For personal use only APPROVAL OF GENERAL AMENDMENTS TO THE CONSTITUTION OF THE COMPANY GENERAL % OF ALL VOTE TYPE VOTED % SECURITIES For 38,701,506 99.82 62.72 Against 55,573 0.14 0.09 Open – Usable 14,100 0.04 0.02 Board 10,500 0.03 0.02 Non-Board 3,600 0.01 0.01 Open-Cond 0 0 0 Open
Slide 48: General Business
GENERAL For personal use only BUSINESS To consider any other business as may be lawfully put forward in accordance with the Constitution of the Company. MOTORCYCLE HOLDINGS 40
Slide 49: Questions
For personal use only QUESTIONS
Slide 50: Thank you
For personal use only Thank you MOTORCYCLE HOLDINGS LIMITED 68 Moss Street Slacks Creek QLD 4127 www.mcholdings.com.au
MotorCycle Holdings — Shareholder Meeting (October 2022) on 6ix