Motorcycle Holdings Ltd. · ASX:MTO
Motorcycle — FY2019 Earnings Presentation
29 slides from Motorcycle's earnings presentation, Aug 27, 2019
Slide 1: FY2019 Full Year Results
For personal use only Motorcycle Holdings Limited FY2019 Full Year Results
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 I RESULTS OVERVIEW I FINANCIAL RESULTS I TRADING CONDITIONS I OPERATIONAL OVERVIEW I FY2020 OUTLOOK MotorCycle Holdings I FY2019 - Full Year Results 3
Slide 4: Results overview
For personal use only Results overview
Slide 5: Results Overview
Results Overview For personal use only Sales revenue of $330 million, up 9% Underlying EBITDA* decreased to $18.0 million, down 4% 4% growth in total motorcycles sales to 18,536 units Used bike units up 11% New bike units down 1%, like for like down 9% Market share increased from 9.5% to 10.6% * Und
Slide 6: Results Overview
Results Overview For personal use only Total industry units down 11%, following 10% drop in 2017/18 Road bike market down 16% Used bikes sold in 5 MCA stores AASB15 adoption resulted in restatement downwards of FY2018 NPBT by $0.8M and reduced 2019 results by $0.7M Maintained profitability despite c
Slide 7: Dealership divisional summary
Dealership divisional summary For personal use only New • Revenue down 4% Motorcycles • Gross profit down 16% Used • Revenue up 15% Motorcycles • Gross profit up 17% Retail accessories • Revenue up 15% and parts • Gross profit up 13% Servicing • Revenue up 8% and repair • Gross profit up 7% Finance,
Slide 8: Financial results
For personal use only results Financial
Slide 9: Revenue growth of 9%
Revenue growth of 9% ($million)* For personal use only Revenue up 9% NPAT down 2%* 330 9.3 302 8.5 8.3 8.0 157 3.7 235 3.1 209 162 4.6 3.6 173 164 4.5 4.6 114 Second Half 104 5.6 173 4.4 5.2 First Half 121 140 3.9 105 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 *2017 numbers are actu
Slide 10: Underlying EBITDA and margin growth
Underlying EBITDA* and margin growth For personal use only EBITDA down 5% EBITDA Margin at 5.5% ($million) 18.8 18.0 14.6 12.8 10.3 7.6 6.0 Second Half 5.8 7.5 7.8 6.1 6.2 6.2 5.5 4.6 4.5 First 10.4 Half 8.6 8.5 7.0 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 • Underlying EBITDA excl
Slide 11: Profit Results
Profit Results $m FY 19 FY18* % Change Revenue 329.9 301.8 9.3% For personal use only Cost of sales (233.5) (214.8) 8.7% Gross Profit 96.4 87.0 10.8% Gross Profit Margin (%) 29.2% 28.8% Employee benefits expense (51.7) (46.4) 11.4% Occupancy expenses (12.3) (10.1) 21.8% Other expenses (13.6) (11.0)
Slide 12: Balance sheet & dividends
2. Balance sheet & dividends For personal use only Capital Structure $ Million FY19 FY18 Cash and Cash Equivalents 9.2 2.5 • Cash at bank $9.2 million Trade and Other Receivables 8.2 6.8 Inventories 84.4 87.4 • Bank debt $48.5 million, down Plant and Equipment 11.5 11.2 $3.5 million Goodwill and Int
Slide 13: Trading Conditions
For personal use only Trading Conditions
Slide 14: Cyclical downturn impacts new motorcycle unit sales
3. Cyclical downturn impacts new motorcycle unit sales For personal use only Industry new motorcycle MTO new motorcycles sales down 11.4% sales down 1.1% 9575 9468 9089 53672 53396 50908 7538 53084 51008 Second 47942 4643 4315 6484 6415 4146 Half 42457 6016 3507 2878 2884 2920 First Half 63885 59615
Slide 15: Used Motorcycle unit sales up 11%
Used Motorcycle unit sales up 11% For personal use only Used Motorcycles sales up 11% 9,068 8,179 7,221 6,393 4366 5,888 5,890 4,256 3,603 3,140 Second half 4702 3,923 First 3,253 3,618 half 2014 2015 2016 2017 2018 2019 MotorCycle Holdings I FY2019 - Full Year Results 15
Slide 16: Operational review
For personal use only review Operational
Slide 17: Market leader in motorcycle industry
4. Market leader in motorcycle industry For personal use only Australia's largest motorcycle dealership group - 30 dealerships and 8 MCA accessory stores Resilient business model with strong OEM relationships sell 13 top motorcycle brands Comprehensive operating footprint across business units and g
Slide 18: Market leader in motorcycle industry (continued)
4. Market leader in motorcycle industry (continued) For personal use only Diversified Revenue Streams • New motorcycles • Servicing and repair • Used motorcycles • Finance, insurance and warranty • Accessories and parts Experienced senior management team Centralised management structure drives perfo
Slide 19: Dealerships
4. Dealerships For personal use only Continue to grow used bike sales across all brands Cost savings program implemented Acquisition opportunities in current challenging market MotorCycle Holdings I FY2019 - Full Year Results 19
Slide 20: Acquisitions – under contract
4. Acquisitions – under contract For personal use only Canberra Motorcycle Centre • Turnover $22 million • Currently retailing 1376 motorcycles per annum • Expected completion September 2019 MotorCycle Holdings I FY2019 - Full Year Results 20
Slide 21: Acquisitions – under contract
4. Acquisitions – under contract For personal use only • Located in Brunswick, Melbourne • Expands Harley-Davidson network to Brisbane, Sydney, Canberra, Melbourne • Turnover $9 million • Currently retailing 226 motorcycles per annum • Expected completion October 2019 MotorCycle Holdings I FY2019 -
Slide 22: Cassons
4. Cassons For personal use only Inventory management improved, excess stock being cleared, impacted margins More aggressive approach to driving and maintaining sales in challenging market Management strengthened Broadened customer base MotorCycle Holdings I FY2019 - Full Year Results 22
Slide 23: MCA
4. MCA For personal use only Used bikes now sold through 5 MCA stores Improved staffing management Increased profit despite reduction in accessory sales MotorCycle Holdings I FY2019 - Full Year Results 23
Slide 24: Finance JV – MCF
4. Finance JV – MCF For personal use only Formed finance JV with Allied Credit, a major industry company in motorcycle finance Business performing in line with budget and expectations Profits forecast for FY20 and increasing in subsequent years Provides support and additional profit MotorCycle Holdi
Slide 25: Outlook FY 2020
For personal use only Outlook FY 2020
Slide 26: Outlook
Outlook For personal use only New motorcycle market remains challenging, and well below recent levels Many dealership acquisition opportunities available at appropriate value Contribution from MCF to commence in FY20 and improve each year Uplift expected from full year of used bike sales in MCA reta
Slide 27: 2019/20 Focus to address market conditions
2019/20 Focus to address market conditions For personal use only Leverage the current network • Improve dealership performance • MCF to add diversity and future profitability • Increase used bike sales Grow • Take advantage of acquisition opportunities in a weak market • Increase used motorcycle sal
Slide 28: 2019/20 Focus to address market conditions
2019/20 Focus to address market conditions For personal use only Consolidate • Continue Cassons integration • Continue to consolidate the motorcycle franchise market through acquisitions MotorCycle Holdings I FY2019 - Full Year Results 28
Slide 29: Thank you
For personal use only Motorcycle Holdings Limited Thank you