Motorcycle Holdings Ltd. · ASX:MTO
Motorcycle — FY2021 Earnings Presentation
30 slides from Motorcycle's earnings presentation, Aug 30, 2021
Slide 1: MotorCycle Holdings Limited FY2021 Full Year Results
MotorCycle Holdings Limited FY2021 Full Year Results For personal use only
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, ‘the Company’). As such, it has not been subject to an audit or an audit process or otherwise independently verified. ►
Slide 3: Agenda
Agenda For personal use only Summary highlights Financial results Operational performance FY2022 outlook MotorCycle Holdings I FY2021 - Full Year Results 3
Slide 4: Summary highlights
For personal use only Summary highlights
Slide 5: Strong, sustainable performance
Strong, sustainable performance For personal use only ▸ Continued to outperform market due to new product additions, improved margins and strong dealership performance ▸ Record revenue and profit largely due to increased margins driven by ongoing strong demand and restricted supply ▸ Positive full-y
Slide 6: Financial highlights
Financial highlights For personal use only ▸ Revenue increased 19% to $433.9 million ▸ Gross profit increased 26% to $128.5 million ▸ Gross profit margin of 29.6% ▸ Underlying EBITDA increased 61% to $44.5 million ▸ NPAT increased 86% to $28.3 million ▸ Final dividend of 10c/share; 20c/share fully f
Slide 7: Financial results
For personal use only results Financial
Slide 8: Profit results
Profit results For personal use only FY21 ($m) FY20 ($m) Change Revenue and other income excl. JobKeeper payment 433.9 363.7 19% Cost of sales (305.4) (261.6) 17% Gross profit excluding JobKeeper payment 128.5 102.1 26% Gross profit margin (%) 29.6% 28.1% 5% JobKeeper payment 5.8 6.0 (3%) Gross prof
Slide 9: Balance sheet
Balance sheet For personal use only FY21 ($m) FY20 ($m) Cash and cash equivalents 4.7 39.5 Trade and other receivables 8.6 7.6 Capital Structure Inventories 86.2 74.4 Plant and equipment 11.5 11.5 ▸ Zero net bank debt, paid down $35 Lease right of use asset 43.2 28.8 million Goodwill and intangibles
Slide 10: Market value ratios
Market value ratios For personal use only FY21 FY20 Change Net profit after tax (NPAT) $28.3 m ($9.1 m) 411% NPAT before non cash impairment $28.3 m $15.2 m 86% Number of shares 61.7 m 61.7 m - Share price at 30/6/21 and 30/6/20 $2.77 $1.78 56% Dividend per share 20.0 cents 5.0 cents 300% Earnings p
Slide 11: Consistent revenue growth
Consistent revenue growth For personal use only Revenue increased 19% to $433.9 million $500 +19% $450 $400 +10% +9% $350 +29% $300 +12% Millions $250 433.9 $200 363.7 329.9 302.4 $150 235.3 209.3 $100 $50 $0 2016 2017 2018 2019 2020 2021 MotorCycle Holdings I FY2021 - Full Year Results 11
Slide 12: Underlying EBITDA and margin growth
Underlying EBITDA and margin growth For personal use only Underlying EBITDA* increased Underlying EBITDA Margin 61% to $44.5 million increased 36% to 10.3% 44.5 17.7 7.6 27.6 18.8 18.0 14.6 17.7 12.8 10.3 10.3 7.6 26.8 6.0 7.5 5.8 10.4 6.1 6.2 6.2 5.5 8.6 8.5 8.6 8.5 10.4 7.0 9.9 7.0 2016 2017 2018
Slide 13: Strong NPAT results
Strong NPAT results For personal use only NPAT increased 86% to $28.3 million $30 +86% $25 $20 +83% Millions $15 28.3 +16% -9% -2% $10 15.2 9.3 $5 8.0 8.5 8.3 $0 2016 2017 2018 2019 2020* 2021 *2020 NPAT is before impairment MotorCycle Holdings I FY2021 - Full Year Results 13
Slide 14: Annual Gross Profit growth
Annual Gross Profit growth For personal use only Gross Profit increased 26% to $128.5 million $140 +26% $120 +6% +10% $100 +41% $80 Millions +14% 128.5 $60 102.1 96.4 87.8 $40 62.3 54.5 $20 $0 2016 2017 2018 2019 2020 2021 MotorCycle Holdings I FY2021 - Full Year Results 14
Slide 15: Diversified profit growth
Diversified profit growth For personal use only FY20 Gross Profit FY21 Gross Profit $35 +51% $30 $25 +30% +69% $20 Millions +27% 32.4 +13% +5% $15 24.1 20.6 21.5 $10 18.2 18.5 14.3 15.0 14.3 13.3 13.6 12.2 $5 $0 New Motorcycles Used Motorcycles Retail Parts & Wholesale Service Finance & Insurance Ac
Slide 16: Operational performance
For personal use only Operational performance
Slide 17: Retail
Retail For personal use only ▸ Harley-Davidson dealerships continue to produce strong profit results ▸ Full-year contribution from dealerships acquired in 2019 ▸ Indian Motorcycles and Polaris products added to existing stores contributed strongly with high margins ▸ Revenue growth in new bikes and
Slide 18: New motorcycle sales revenue growth
New motorcycle sales revenue growth For personal use only New motorcycle revenue increased 32% to $170.9 million +32% $180 $160 $140 +16% +8% -4% $120 +20% $100 Millions 170.9 $80 129.4 115.8 $60 107.4 111.2 89.6 $40 $20 $0 2016 2017 2018 2019 2020 2021 MotorCycle Holdings I FY2021 - Full Year Resul
Slide 19: New motorcycle unit sales outperform market
New motorcycle unit sales outperform market For personal use only Industry new motorcycle unit sales* MTO new motorcycle unit sales increased 12% increased 20% 13264 11013 50908 53084 55840 9575 9468 47942 9089 6494 52839 42457 7538 5807 4146 4631 4315 3507 57703 61679 56087 53172 6770 47138 46742 4
Slide 20: Used motorcycle sales revenue growth
Used motorcycle sales revenue growth For personal use only Used motorcycle revenue increased 8% to $102.5 million $120 +8% +11% $100 +15% +18% $80 +7% Millions $60 102.5 95.2 86.0 $40 74.6 59.2 63.4 $20 $0 2016 2017 2018 2019 2020 2021 MotorCycle Holdings I FY2021 - Full Year Results 20
Slide 21: For personal use only
For personal use only 21 MotorCycle Holdings I FY2021 - Full Year Results
Slide 22: Top global motorcycle brands
Top global motorcycle brands For personal use only 9 Dealerships 8 Dealerships 7 Dealerships 7 Dealerships 6 Dealerships 6 Dealerships 7 Dealerships 7 Dealerships 8 Dealerships 7 Dealerships 4 Dealerships 4 Dealerships 3 Dealerships 3 Dealerships 2 Dealerships 2 Dealerships 2 Dealerships 1 Dealershi
Slide 23: For personal use only
For personal use only 23 MotorCycle Holdings I FY2021 - Full Year Results
Slide 24: Wholesale
Wholesale For personal use only ▸ Cassons external sales revenue increased 16% to $40.4 million; internal sales revenue increased 32% to $25.0 million ▸ Gross profit increased 30% to $24.1 million ▸ High volumes of new product arrived and sold ▸ Supply chain challenges with international shipping ▸
Slide 25: For personal use only
For personal use only 25 MotorCycle Holdings I FY2021 - Full Year Results
Slide 26: Finance JV
Finance JV For personal use only ▸ Our 50% share contributed profit for first time with $0.9 million NPAT ▸ Reduced cost of funds and improved credit performance underpinning strong margins ▸ Ongoing earnings growth expected as portfolio matures MotorCycle Holdings I FY2021 - Full Year Results 26
Slide 27: Focus & outlook
For personal use only outlook Focus &
Slide 28: FY2022 Focus
FY2022 Focus For personal use only Acquisition ▸ Expansion of geographical footprint through acquisition of well-established businesses with strong turnover ▸ Low debt allows for an aggressive acquisition program ▸ Vendor interest, with high expectations due to strong results in the last 12 months P
Slide 29: FY2022 Outlook
FY2022 Outlook For personal use only ▸ Ongoing lockdowns impacting sales and profits; demand remains strong in locations with no restrictions; strong cash position to limit impact of any extended trading restrictions ▸ Demand has stabilised at higher levels than 2019 and is maintainable ▸ Restricted
Slide 30: Thank you
MotorCycle For personal use only Holdings Limited Thank you