Motorcycle Holdings Ltd. · ASX:MTO
Motorcycle — H1 2023 Earnings Presentation
25 slides from Motorcycle's earnings presentation, Feb 27, 2023
Slide 1: Investor Presentation 1H 2023 Results
For personal use only INVESTOR PRESENTATION 1H 2023 RESULTS
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation may contain certain forward looking statements. The information in this presentation does not take into account Such statements are inherently subject to uncertainties in that they the objectives, financial situation or particular needs of any perso
Slide 3: Agenda
For personal use only AGENDA 1. SUMMARY HIGHLIGHTS 2. FINANCIAL RESULTS 3. OPERATIONAL PERFORMANCE 4. FY2023 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 17% to 1% to 13% to $277.5m $237.9m $75.2m GROSS PROFIT MARGIN UNDERLYING EBITDA INTERIM DIVIDEND OF 27% 9% to 8c $18m fully franked 1. All references to Like-for-like (LFL) comparisons in this document
Slide 6: Operational Highlights
OPERATIONAL HIGHLIGHTS For personal use only 1 Strong topline growth buoyed by 2 Increased national market share to 13.9% 3 Continued investment in enhancing recent acquisitions customer engagement and digital capabilities 4 Result achieved against backdrop of rising interest 5 Acquisitions will sup
Slide 7: Financial Results
For personal use only RESULTS FINANCIAL 7
Slide 8: Statutory Results
STATUTORY RESULTS For personal use only OVERVIEW OF RESULTS ($M) 31 DECEMBER 22 31 DECEMBER 21 CHANGE % Total income 277.5 237.0 17% Cost of sales (202.3) (170.4) 19% GROSS PROFIT 75.2 66.6 13% Gross profit margin (%) 27% 28% (4%) Employee benefits expense (35.7) (30.5) 17% Occupancy expense (1.5) (
Slide 9: Proforma Results (Like-for-Like)
PROFORMA RESULTS For personal use only (Like-for-Like) OVERVIEW OF RESULTS ($’000) 31 DECEMBER 22 31 DECEMBER 21 CHANGE % Total income 237.9 236.6 1% Cost of sales (171.7) (170.2) GROSS PROFIT 66.2 66.4 1% Gross profit margin (%) 28% 28% Employee benefits expense (33.8) (30.5) 11% Occupancy expense
Slide 10: Balance Sheet
BALANCE SHEET For personal use only BALANCE SHEET AS AT ($M) 31 DECEMBER 22 30 JUNE 22 CHANGE % Cash and cash equivalents 8.9 3.9 128% Trade and other receivables 11.5 7.1 62% Inventories 160.4 107.6 49% Plant and equipment 13.0 11.8 10% Lease right of use assets 51.0 45.8 11% Goodwill and intangibl
Slide 11: Market Value
MARKET VALUE For personal use only RESULTS FOR THE YEAR ENDED 31 DECEMBER 22 31 DECEMBER 21 INC/DEC CHANGE $'000 CHANGE % Net profit after tax (NPAT) 10,466,134 12,557,538 Decrease (2,091,404) (17%) Closing share price ($) 2.39 3.24 Decrease (0.85) (26%) Shares on issue (number) 73,245,710 61,706,71
Slide 12: Revenue Growth
REVENUE GROWTH For personal use only Revenue increased 17% to $277.5 million, supported by recent acquisitions Revenue growth ($m) 500 450 226 400 216 350 186 300 152 162 250 278 237 200 218 150 173 178 140 100 50 0 2018 2019 2020 2021 2022 2023 First half Second half MOTORCYCLE HOLDINGS 12
Slide 13: Underlying EBITDA and Margin
UNDERLYING EBITDA AND MARGIN For personal use only Underlying EBITDA decreased 9% to $18.1 million Underlying EBITDA ($m) 50 45 17.7 40 35 17.2 30 25 17.7 26.8 20 19.8 10.3 7.6 18.1 15 10 10.4 9.9 8.5 5 0 2018 2019 2020 2021 2022 2023 First half Second half MOTORCYCLE HOLDINGS 13
Slide 14: NPAT Results
NPAT RESULTS For personal use only NPAT $10.5 million for the half NPAT ($m) 30 11.1 25 10.5 20 17.2 15 10.4 12.6 10 10.5 4.6 3.1 5 5.2 4.8 3.9 0 2018 2019 2020 2021 2022 2023 First half Second half MOTORCYCLE HOLDINGS 14
Slide 15: Diversified Earnings
DIVERSIFIED EARNINGS For personal use only 9% 18,000 16,000 16,367 5% 4% 14,000 14,990 12,000 5% 12,581 13,206 10,000 10,978 11,429 9% 11% 10,393 $k 9,879 8,000 8,812 8,097 7,470 8,277 53% 6,000 5,263 4,000 1,965 16% 2,000 917 624 526 0 New vehicles New vehicles Used vehicles Parts and Parts and Ser
Slide 16: Operational Performance
For personal use only OPERATIONAL PERFORMANCE 16
Slide 17: New Motorcycle Sales
NEW MOTORCYCLE SALES For personal use only Industry new motorcycle unit MTO new motorcycle unit sales decreased 25%* sales decreased 8% 140,000 16,000 120,000 14,000 6,340 48,929 6,494 50,908 55,840 12,000 100,000 47,942 52,839 10,000 5,807 80,000 42,457 4,631 4,315 8,000 60,000 67,690 7,699 61,679
Slide 18: Used Motorcycles
USED MOTORCYCLES For personal use only Used motorcycle unit sales increased 2% 12,000 10,000 5,014 5,088 4,733 4,366 8,000 4,256 6,000 5,360 5,480 4,994 4,000 4,702 4,697 3,923 2,000 0 2018 2019 2020 2021 2022 2023 First half Second half MOTORCYCLE HOLDINGS 18
Slide 19: Retail
RETAIL For personal use only • Overall solid performance despite macro-economic headwinds. • Moderating demand for new and used motorcycles feature of second quarter. • Retail accessories sales held up well. MOTORCYCLE HOLDINGS 19
Slide 20: Acquisitions
ACQUISITIONS For personal use only • Result included contribution from recent acquisitions including Mojo Group and Townsville Team Mojo. • Mojo Group acquisition and integration performing ahead of management’s expectations. • FY23 will include increased contribution from new acquisitions and first
Slide 21: Wholesale
WHOLESALE (excluding Mojo acquired this half) For personal use only • Trading softened during the later part of 1H. • Supply chain issues have moderated and inventory normalised. • New management continue to focus on disciplined cost management and operating efficiencies. • Supply chain freight expe
Slide 22: Finance JV
FINANCE JV For personal use only • 50% share contributed profit of $526,000, down 16% on pcp. • Increased cost of borrowing leading to margin pressure. • Delinquencies satisfactory MOTORCYCLE HOLDINGS 22
Slide 23: FY2023 Outlook
For personal use only FY2023 OUTLOOK 23
Slide 24: FY2023 Outlook
FY2023 OUTLOOK For personal use only Rising interest rates Preparing for Continue to and cost of living more challenging pursue acquisition pressures expected macro-economic opportunities to impact demand conditions Focus on Higher cost of New acquisitions will business improvement doing business wi
Slide 25: Thank you
For personal use only Thank you MOTORCYCLE HOLDINGS LIMITED 68 Moss Street Slacks Creek QLD 4127 www.mcholdings.com.au