Motorcycle Holdings Ltd. · ASX:MTO
Motorcycle — H1 2024 Earnings Presentation
26 slides from Motorcycle's earnings presentation, Feb 27, 2024
Slide 1: Investor Presentation
For personal use only INVESTOR PRESENTATION
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation may contain certain forward-looking statements. Such statements are inherently subject to uncertainties in that they may be affected by a variety of known and unknown risks, variables, and other factors which could cause actual values or results, pe
Slide 3: Agenda
For personal use only AGENDA 1. SUMMARY HIGHLIGHTS 2. FINANCIAL RESULTS 3. OPERATIONAL PERFORMANCE 4. FY2024 OUTLOOK 3
Slide 4: Summary Highlights
For personal use only SUMMARY HIGHLIGHTS 4
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS For personal use only STATUTORY REVENUE LIKE-FOR-LIKE REVENUE1 GROSS PROFIT UNDERLYING EBITDA 6% to 7% to 2% to 12% to $293.4m $230.3m $76.4m $21.8m NPAT NET ASSETS INTERIM DIVIDEND PER SHARE 37% to 1% to 3c $6.6m $195.1m fully franked 1. Excludes from both periods: TeamMoto Tow
Slide 6: Operational Highlights
OPERATIONAL HIGHLIGHTS For personal use only 1 Revenue growth from full period contribution 2 National market share1 increase to 15% in a challenging market reflects by Mojo Group. resilient MTO business model. 3 July to October performance in line with forecasts in retail 4 Demand impacted from Nov
Slide 7: Financial Results
For personal use only RESULTS FINANCIAL 7
Slide 8: Profit Results
PROFIT RESULTS Overview of Results ($’000) 31 Dec 23 31 Dec 22 % Δ PCP Total income 294,562 277,511 6% For personal use only Cost of sales (218,202) (202,321) 8% Gross profit 76,360 75,191 2% Gross profit margin (%) 26% 27% (4%) Employee benefits expense (35,732) (35,728) - Occupancy expense (1,944)
Slide 9: Like-for-Like Results
LIKE-FOR-LIKE RESULTS1 Proforma Results (like-for-like¹) ($’000) 31 Dec 23 31 Dec 22 % Δ PCP For personal use only Total income 231,450 247,508 (7%) Cost of sales (170,042) (178,626) (5%) Gross profit 61,407 68,882 (11%) Gross profit margin (%) 27% 28% (5%) Employee benefits expense (32,568) (34,956
Slide 10: Balance Sheet
BALANCE SHEET Balance Sheet ($ million) 31 Dec 23 30 Jun 23 % Δ PCP Cash and cash equivalents 6.6 24.7 (74%) For personal use only Trade and other receivables 11.3 12.1 (6%) Inventories 162.1 155.8 4% Lease right-of-use assets 45.4 48.2 (6%) Plant and equipment 13.7 13.4 2% Goodwill and other intang
Slide 11: Market Value
MARKET VALUE Results for the period ended 31 Dec 23 31 Dec 22 % Δ PCP For personal use only Net profit after tax ($) 6,584,902 10,466,137 (37%) Closing share price ($) 2.00 2.39 (16%) Securities on issue (number) 73,806,444 73,245,710 1% Dividends paid per share (LTM) 20.0 20.0 - Basic earnings per
Slide 12: Revenue Growth
REVENUE GROWTH For personal use only $m 700 600 580 500 463 440 302 400 369 330 226 216 300 191 157 200 278 295 224 237 100 173 178 0 2019 2020 2021 2022 2023 2024 First half Second half MOTORCYCLE HOLDINGS 12
Slide 13: Underlying EBITDA and Margin
UNDERLYING EBITDA AND MARGIN For personal use only Underlying EBITDA ($m) Underlying EBITDA Margin (%) 60 14 55.5 55.3 49.1 12 12.6 50 23.2 10 10.6 38.3 10.4 40 30.5 23.3 9.5 8 30 7.4 23 6 20 32.2 4 25.8 24.8 10 21.8 15.2 2 0 0 2020 2021 2022 2023 2024 FY20 FY21 FY22 FY23 1H24 First half Second half
Slide 14: NPAT
NPAT For personal use only $m 30 28.3 25 23.1 23.0 11.1 20 10.6 15.2 12.5 15 10 8.3 10.4 17.2 3.1 12.6 5 10.5 6.6 5.2 4.8 0 2019 2020* 2021* 2022 2023 2024 First half Second half * Includes JobKeeper payment MOTORCYCLE HOLDINGS 14
Slide 15: Diversified Earnings
DIVERSIFIED EARNINGS Gross Profit by Department ($’000) For personal use only 14% 1H24 1H23 18,000 16,367 16,000 3% 137% 14% 14,024 16% 14,000 13,206 12,763 12,467 12,000 11,429 10,393 1% 4% 9,848 10,000 8,756 8,726 8,812 7,972 8,277 8,000 6,000 5,263 4,000 2,000 0 New vehicles – retail New vehicles
Slide 16: Operational Performance
For personal use only OPERATIONAL PERFORMANCE 16
Slide 17: Retail
RETAIL • Rising interest rates and cost of living For personal use only pressure dampened discretionary spending from November, reducing demand for new and used motorcycles. • New motorcycle unit sales rose 8% but gross profit fell 14% due to margin pressures, compared to 1H23. • Used motorcycle uni
Slide 18: New Motorcycle Unit Sales
NEW MOTORCYCLE UNIT SALES Solid MTO sales performance and market share gains For personal use only Industry1: Sales flat 1H24 vs prior corresponding period MTO: increased 8% in 1H24 140,000 16,000 14,039 13,751 120,000 111,927 116,619 14,000 13,264 48,929 99,581 55,840 96,186 12,000 11,013 100,000 8
Slide 19: Used Motorcycle Unit Sales
USED MOTORCYCLE UNIT SALES For personal use only MTO: decreased 8% in 1H24 12,000 10,082 10,374 10,024 10,000 9,068 5,088 9,430 5,014 4,544 4,733 4,366 8,000 6,000 5,360 5,480 4,994 5,039 4,000 4,702 4,697 2,000 0 2019 2020 2021 2022 2023 2024 First half Second half MOTORCYCLE HOLDINGS 19
Slide 20: Mojo Group
MOJO GROUP For personal use only • Full 6-month contribution from Mojo Group for half year, compared to 2 months in 1H23. • Agricultural industry impacted by rising interest rates and predictions of El Niño weather conditions, significantly reducing ATV demand. • New CFMOTO motorcycle models over ne
Slide 21: Wholesale Accessories
WHOLESALE ACCESSORIES For personal use only • Sales impacted by softening industry conditions. • Upgrade to computer systems during first half will drive future growth. • Logistics improving with Brisbane warehouse added and re-location to larger premises in Auckland. MOTORCYCLE HOLDINGS 21
Slide 22: Finance JV
FINANCE JV For personal use only • Revenue and bad debts in line with expectations. • Pressure on cost of funds due to rise in interest rates. MOTORCYCLE HOLDINGS 22
Slide 23: FY2024 Outlook
For personal use only FY2024 OUTLOOK 23
Slide 24: FY2024 Outlook
FY2024 OUTLOOK For personal use only 1 2 Interest rates and cost of living Wages and cost control to pressures expected to continue remain a major area of focus. to impact trading in second half. MOTORCYCLE HOLDINGS 24
Slide 25: Ongoing Projects
ONGOING PROJECTS For personal use only Wholesale Wholesale Retail accessories vehicles Focus on operating costs and wages. Benefits of better sales support and Expanded product range with Full review of dealerships to determine logistics through IT project, along increased CFMOTO road bike range if
Slide 26: Thank you
For personal use only Thank you MOTORCYCLE HOLDINGS LIMITED 68 Moss Street Slacks Creek QLD 4127 www.mcholdings.com.au