Tourism Holdings Limited · NZX:THL
Tourism — H1 FY2017 Earnings Presentation
29 slides from Tourism's earnings presentation, Feb 21, 2017
Slide 1: Bright Horizons: Delivering on the Plan
Bright Horizons Delivering on the Plan FY17: Interim Results Presentation 21 February 2017
Slide 2: Disclaimer
DISCLAIMER The information in this presentation dated 21 February 2017 may contain forward-looking statements and projections. These reflect thl’s current expectations, based on what it thinks are reasonable assumptions. However, for any number of reasons the future could be different and the assump
Slide 3: H1 FY17 Financial Highlights
H1 FY17 FINANCIAL HIGHLIGHTS REVENUE EARNINGS BEFORE H1 REVENUE INTEREST AND TAX +9% +20% +1% $146M $18.7M 134 146 UP 110 111 UP 9% 25% FY14 FY15 FY16 FY17 NET PROFIT INTERIM DIVIDEND H1 NPAT +38% AFTER TAX $11.3M 10cps (50% imputed) +129% +45% 11.3 UP FROM 8.2 UP 5.6 38% 9cps (50% imputed) 2.5 FY14
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS • NPAT growth of 38%. NZD $M H1 FY17 H1 FY16 VAR VAR % • Rentals NZ achieved $3.7M EBIT, an Operating revenue 146.0 133.7 12.3 9% increase of $3.7M on the pcp. Earnings before 18.7 15.0 3.7 25% • Tourism EBIT growth of $1.0M or 30% on interest and tax* the pcp. Operating profit
Slide 5: H1 FY17 Growth Initiative Highlights
H1 FY17 GROWTH INITIATIVE HIGHLIGHTS El Monte Roadtrippers Mighway Purchase of the second Purchased 22.5% of Operating successfully largest RV rental business Roadtrippers USA, the across NZ summer peak. in the USA completed on 6 leading US road trip travel Commitment to launch in January. app provi
Slide 6: Balance Sheet
BALANCE SHEET • Net debt at 31 December 2016 was $103M, up $13M on 31 December NET DEBT DEC 2016 DEBT:EBITDA 2015. • Increase in debt on prior year is due $103M LAST YEAR 1.4X to the lift in flex fleet, to be turned LAST YEAR over in less than 18 months. As at 31 Dec, Net Book Value of flex fleet in
Slide 7: Dividend
DIVIDEND • Interim dividend of 10 cents per share imputed to 50%. INTERIM DIVIDEND INTERIM DIVIDEND PER SHARE* • Sustaining dividends over the longer +11% term remains a key focus for the business. 10 cents +40% +29% • Key dates: Per Share – 50% Imputed • Ex-date 31 March 2017 UP • Record date 3 Apr
Slide 8: Divisional Review
DIVISIONAL REVIEW 8
Slide 9: Divisional EBIT
DIVISIONAL EBIT 6 Months to December ; $M DEC 16 DEC 15 VAR VAR % thl Rentals New Zealand 3.7 0.0 3.7 N/a Australia 5.6 4.7 0.9 19% USA 9.6 9.8 (0.2) (2%) Total Rentals 18.9 14.5 4.4 30% Tourism Group 4.3 3.3 1.0 30% Total operating divisions 23.2 17.8 5.4 30% Group Support Services & Other (4.1) (2
Slide 10: Rentals NZ
RENTALS NZ Strong H1 Performance • Rentals NZ has achieved a strong Half Year result, achieving a $3.7M profit, in NZD $M H1 FY17 H1 FY16 VAR % what has historically been a loss- making half. Rental income 30.8 26.5 4.3 16% • Rental income growth of 16% was Sale of goods 18.6 16.3 2.3 14% achieved t
Slide 11: Rentals AU
RENTALS AU Continued Progress Half Year • The Rentals Australia business has made further progress in H1, NZD $M H1 FY17 H1 FY16 VAR % growing EBIT by 28% in AUD terms. Rental income 30.3 30.3 0.0 0% • The 4WD buy-back arrangement Sale of goods 5.9 5.9 0.0 0% worked well, lifting returns on the pcp.
Slide 12: Rentals USA – Road Bear
RENTALS USA – ROAD BEAR Continued Growth & Strong ROFE • EBIT growth of 7% has been achieved Half Year in USD terms. A stronger NZD:USD NZD $M H1 FY17 H1 FY16 VAR % exchange rate (0.74 FY17 vs 0.67 FY16) has resulted in a lower NZD Rental income 17.8 16.9 0.9 5% EBIT result. Sale of goods 24.7 22.7
Slide 13: Tourism Group
TOURISM GROUP Leveraging Tourism Demand • Customer growth has exceeded YTD Half year inbound holiday visitor arrivals growth NZD $M H1 FY17 H1 FY16 VAR % (15%). • The retail space at the Glowworm Revenue 17.7 15.1 2.6 17% Caves was expanded early in the year and has seen improved retail Costs 13.4 1
Slide 14: Group Support Services and Other
GROUP SUPPORT SERVICES AND OTHER Investment in Growth Half year • Costs before non-recurring items increased by $1.5M, mainly due to the NZD $M H1 FY17 H1 FY16 VAR % Mighway and GeoZone new initiatives. • Mighway is in its first full peak season, Revenue 0.3 0.1 0.2 200% following last year’s limite
Slide 15: Joint Ventures and Associates
JOINT VENTURES AND ASSOCIATES Action Manufacturing Share of Profit/Loss • Action Manufacturing Net Profit Before Tax is up strongly on FY17 NZD $M H1 FY17 H1 FY16 VAR % due mainly to higher motorhome build volumes, including flex fleet. Joint Ventures (50%) • The specialist vehicle manufacturing div
Slide 16: FY17 Progress & Outlook
FY17 PROGRESS & OUTLOOK 16
Slide 17: El Monte Update
EL MONTE UPDATE • January was the first month of ownership and the El Monte Acquisition Provisional Accounting Fair Value transition has been smooth. NZD $M • Immediate focus is on the sale of older fleet and fleet management. Cash 78.5 • The fair value accounting for the purchase is not yet thl sha
Slide 18: Focus FY17: Deliver
FOCUS FY17 The internal theme for FY17 is ‘DELIVER’ FY17 Goals ORGANIC GROWTH INORGANIC GROWTH MIGHWAY • Flex fleet in NZ and AU • Ongoing search for value • Scale up NZ fleet for summer. Rentals. accretive opportunities that • Prove scalability of the model. • Increased fleet in US leverage our glo
Slide 19: Focus FY17: Deliver
FOCUS FY17 The internal theme for FY17 is ‘DELIVER’ FY17 Goals TCEX TECHNOLOGY INVESTMENT THE FUNDAMENTALS • Complete development • Update core rentals booking, • Continue the focus on delivering of the digital platform including billing and scheduling systems unforgettable experiences. content and
Slide 20: FY17 Capital Expenditure
FY17 CAPITAL EXPENDITURE • Gross capital expenditure forecast now at ~$175M for FY17 including $20M related to El Monte new season fleet purchases. • Excluding El Monte, capital expenditure for core long term fleet and non-fleet capex is at a similar level to FY16. • Growth in FY17 gross CAPEX spend
Slide 21: Group Outlook Update – Full Year
GROUP OUTLOOK UPDATE – FULL YEAR • Outlook for the full year is unchanged NZ$M FY17 FY16 from the guidance provided in NPAT Forecast Actual December. Existing Business1 29.2 24.4 • We continue to drive the business to Mighway USA and exceed this target. Roadtrippers investments (0.6) Total pre one o
Slide 22: Supporting Analysis
SUPPORTING ANALYSIS 22
Slide 23: Income Statement Summary
INCOME STATEMENT SUMMARY 6 Months to December $M FY17 FY16 Var Var % Revenue from services 96.8 88.8 8.0 9% Revenue from sale of fleet 49.2 44.9 4.3 10% Total revenue 146.0 133.7 12.3 9% Costs 110.2 101.8 (8.4) (8%) EBITDA 35.8 31.9 3.9 12% Depreciation & amortisation 17.1 16.9 (0.2) (1%) EBIT 18.7
Slide 24: Revenue
REVENUE 6 Months to December $M FY17 FY16 VAR thl Rentals - Rental Revenue New Zealand 30.8 26.5 16% Australia 30.3 30.3 0% USA 17.8 16.9 5% 78.9 73.7 7% thl Rentals - Sale of Goods New Zealand 18.6 16.3 14% Australia 5.9 5.9 (1%) USA 24.7 22.7 9% 49.2 44.9 10% Tourism Group 17.6 15.1 17% Other 0.3
Slide 25: Divisional Review
DIVISIONAL REVIEW Six Months Ended 31 December 2016 Six Months Ended 31 December 2015 DIVISIONAL AVE FUNDS OPERATING DIVISIONAL AVE FUNDS OPERATING $M REVENUE EBIT EMPLOYED CASHFLOW* REVENUE EBIT EMPLOYED CASHFLOW* Rentals New Zealand 49.4 3.7 125.0 (23.5) 42.8 0.0 111.8 (17.8) Rentals Australia 36.
Slide 26: EBITDA
EBITDA 6 Months to December $M FY17 FY16 Var Var % EBIT 18.7 15.0 3.7 25% Add back non-cash items: Amortisation 0.8 0.8 0.0 Depreciation 16.3 16.1 0.2 EBITDA 35.8 31.9 3.9 12% 26
Slide 27: Balance Sheet
BALANCE SHEET As at $M DEC 16 DEC 15 Var Equity 174.7 169.6 5.1 Non current liabilities 127.9 109.0 18.9 Current liabilities 61.8 49.1 12.7 Total source of funds 364.4 327.7 36.7 Intangible assets and goodwill 20.2 20.9 (0.7) Investments in associates and joint ventures 16.2 3.8 12.4 Non current ass
Slide 28: Gain on Fleet Vehicle Sales and Gross Profit
GAIN ON FLEET VEHICLE SALES AND GROSS PROFIT 6 Months to December $M FY17 FY16 Var Var % Gain on sales of motorhome fleet before selling costs 7.1 6.5 0.6 10% Vehicle sales costs 2.3 2.1 0.2 9% Gain on sales of motorhome fleet after selling costs 4.9 4.4 0.5 10% Gross profit on non-fleet vehicle and
Slide 29: End
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