Motorcycle Holdings Ltd. · ASX:MTO
Motorcycle — FY2020 Earnings Presentation
21 slides from Motorcycle's earnings presentation, Aug 27, 2020
Slide 1: FY2020 Full Year Results
Motorcycle Holdings Limited FY2020 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). 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 FY2020 key points Financial results Operational performance FY2020 outlook MotorCycle Holdings I FY2020 - Full Year Results 3
Slide 4: FY2020 Key Points
For personal use only FY2020 Key Points
Slide 5: Key Points
Key Points For personal use only ▸ Surge in demand during May and June, despite initial concern about impacts of COVID-19 pandemic ▸ Network expanded with 2 acquisitions; appointed dealers for Indian Motorcycles in 6 existing stores and Polaris in 2 existing stores ▸ NPAT before non cash impairment
Slide 6: Financial Results
For personal use only Results Financial
Slide 7: Profit results
Profit results For personal use only ▸ Revenue increased 10% to $363.7 million ▸ Underlying EBITDA increased 53% to $27.6 million ▸ NPAT before non cash impairment increased 81% to $15.2 million ▸ Non cash impairment of $24.3 million recognised on goodwill from Cassons acquisition MotorCycle Holding
Slide 8: Balance sheet & dividends
2. Balance sheet & dividends For personal use only Capital Structure ▸ Cash increased $30.3 million from $9.2 million to $39.5 million ▸ CBA facility renewed until Jan 2023, maintaining existing debt covenants ▸ $20 million cash used to reduce debt in Aug 20, but facility available for redraw ▸ Inve
Slide 9: Operational Performance
For personal use only Operational Performance
Slide 10: Revenue growth of 10%
Revenue growth of 10% ($million) For personal use only MotorCycle Holdings I FY2020 - Full Year Results 10
Slide 11: Underlying EBITDA and margin growth
Underlying EBITDA and margin growth For personal use only MotorCycle Holdings I FY2020 - Full Year Results 11
Slide 12: New bike sales driven by changing sentiment
New bike sales driven by changing sentiment For personal use only MotorCycle Holdings I FY2020 - Full Year Results 12
Slide 13: Used motorcycles maintain growth trajectory
Used motorcycles maintain growth trajectory For personal use only MotorCycle Holdings I FY2020 - Full Year Results 13
Slide 14: Diversified revenue drivers
Diversified revenue drivers For personal use only MotorCycle Holdings I FY2020 - Full Year Results 14
Slide 15: Growth in wholesale
Growth in wholesale For personal use only Cassons external sales increased 7% Adverse exchange rates and old stock clearance reduced margins Non cash stock obsolescence charge of $600,000 against excess inventory during COVID-19 shutdowns Reduced stock by $2.7 million Trading strongly during pandemi
Slide 16: Motorcycle Finance Joint Venture
Motorcycle Finance Joint Venture For personal use only Expected returns softened due to COVID-19 (provisioning) However, on track to become profitable from FY21 MotorCycle Holdings I FY2020 - Full Year Results 16
Slide 17: Business Development
Business Development For personal use only Acquisition ▸ Identified and acquired 2 blue chip strategic dealerships - on track to return investment capital in 2 years ▸ Relocated newly acquired Melbourne Harley dealership to larger more suitable location Expansion during COVID-19 pandemic ▸ Change in
Slide 18: World-leading motorcycle brands
World-leading motorcycle brands For personal use only 6 Dealerships 9 Dealerships 9 Dealerships 3 Dealerships 7 Dealerships 7 Dealerships 4 Dealerships 6 Dealerships 4 Dealerships 1 Dealership 2 Dealerships 6 Dealerships 4 Dealerships 2 Dealerships 1 Dealership 4 Dealerships MotorCycle Holdings I FY
Slide 19: Outlook
For personal use only Outlook
Slide 20: Outlook
Outlook For personal use only ▸ The COVID-19 pandemic has changed consumer attitudes towards outdoor leisure activities ▸ Interest in motorcycles has ramped up since COVID-19 and continues to be strong ▸ With a large footprint across Australia, set to benefit from renewed interest in motorcycles, lo
Slide 21: Thank you
Motorcycle For personal use only Holdings Limited Thank you