Motorcycle Holdings Ltd. · ASX:MTO
Motorcycle — Morgans Investor Conference (October 2018)
14 slides from Motorcycle's conference presentation, Oct 11, 2018
Slide 1: Morgans Investor Conference
MOTORCYCLE HOLDINGS LIMITED For personal use only Morgans Investor Conference MotorCycle Holdings
Slide 2: Disclaimer and Important Information
Disclaimer 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
Slide 3: Update
Update For personal use only 1 Market continues to slow with Harley-Davidson the major challenge 2 Used Bike performance maintained in steady market, and growing with more outlets 3 Cassons maintaining profitability despite market contraction 4 Excess inventory identified in Cassons – cash flow bene
Slide 4: 2018/19 Focus
2018/19 Focus For personal use only Leverage the Current Network ▪ Improve dealership performance Grow ▪ Continue MCA store roll-out ▪ Increase used motorcycle sales through MCA stores ▪ Continue to develop wholesale distribution to dealer network Consolidate ▪ Continue Cassons integration ▪ Strengt
Slide 5: New Bike market continues to slow
New Bike market continues to slow For personal use only ▪ New Bike market down 7% for September 18 quarter ▪ Road bikes down 13% for September 18 quarter MotorCycle Holdings 5
Slide 6: Harley-Davidson presenting challenges
Harley-Davidson presenting challenges For personal use only ▪ Harley sales down 25.1% for September 18 quarter nationally ▪ MTO same store outperformed the market but still down ▪ 2019 models have been released MotorCycle Holdings 6
Slide 7: Used Bikes maintaining sales from same stores but growing overall
Used Bikes maintaining sales from same stores but growing overall For personal use only ▪ Increased resources for Used Bike department ▪ Used Bikes now being sold from 2 MCA accessory stores, with 4 more to follow soon MotorCycle Holdings 7
Slide 8: Acquisitions will contribute for months in FY19
Acquisitions will contribute for 12 months in FY19 For personal use only ▪ Cassons and MCA first full year contribution ▪ 3 dealerships acquired during FY18 to contribute MotorCycle Holdings 8
Slide 9: Acquisitions will continue in future
Acquisitions will continue in future For personal use only ▪ Current efforts are concentrating on integrating new acquisitions and improving current businesses ▪ Recently added Polaris franchise to Accessory store in Springwood ▪ Used bikes being included in existing MCA stores ▪ MCA stores will be
Slide 10: Cassons opportunities
Cassons opportunities For personal use only ▪ More aggressive approach to Cassons position within the market will drive dealer wholesale sales ▪ Management being strengthened – National Sales Manager and Stock Planner being employed ▪ Multiple new brands have been added to portfolio ▪ Inventory is t
Slide 11: Finance JV
Finance JV For personal use only ▪ Up to $4M per month of retail finance contracts being placed with Motorcycle Finance Pty Ltd (MCF), which we own half of in a JV ▪ Volume running at close to double initial plans with all KPI’s in the expected range ▪ Allied Credit provide the credit licence, and a
Slide 12: Mechanical Protection Plan (MPP) profit recognition
Mechanical Protection Plan (MPP) profit recognition For personal use only ▪ IFRS 15 comes into force from 1/7/18. ▪ Revenue from MPP contracts to be recognized over the period of the contract, which can be up to five years (2 years Manufacturer Warranty, then 3 years MPP) ▪ Previously income was rec
Slide 13: Cash flow opportunities
Cash flow opportunities For personal use only ▪ Full year of new acquisitions will produce record profits ▪ Pause on acquisitions will reduce requirement for cash ▪ Inventory in Cassons to be reduced over time ▪ This will leave cash available for investment in used bike stock, our next acquisition p
Slide 14: MotorCycle Holdings
For personal use only MotorCycle Holdings Motorcycle HoldingsInvestor Presentation 14
MotorCycle Holdings — Morgans Investor Conference (October 2018) on 6ix