Motorcycle Holdings Ltd. · ASX:MTO
Motorcycle — FY2018 Earnings Presentation
18 slides from Motorcycle's earnings presentation, Aug 29, 2018
Slide 1: FY2018 Full Year Results
MOTORCYCLE HOLDINGS LIMITED For personal use only FY2018 Full Year Results MotorCycle Holdings
Slide 2: Disclaimer and Important Information
Disclaimer 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
Slide 3: Results Highlights
Results Highlights For personal use only 1 Underlying EBITDA increased to $19.8 million, up 36% 2 Sales revenue of $302.4 million, up 29% Final dividend of 6.5 cents per share, totalling 12 cents per share for the year, 3 fully franked. 4 9% growth in total motorcycles sales of 17,754 units Network
Slide 4: Market leader in Motorcycle retailing
Market leader in Motorcycle retailing For personal use only 1 Australia's largest motorcycle dealership group - 30 dealerships Resilient business model with strong OEM relationships and 2 diversified revenue streams 3 Expanded operating footprint across business units and geographically Substantial
Slide 5: Profit results
Profit results For personal use only $m FY 17 FY18 % Change Revenue 235.3 302.4 28.5% Cost of sales (173.0) (214.7) 24.1% Gross Profit 62.3 87.8 40.8% Gross Profit Margin (%) 26.5% 28.8% Employee benefits expense (34.7) (46.4) 33.7% Occupancy expenses (5.8) (10.1) 75.5% Other expenses (7.0) (10.8) 5
Slide 6: New Motorcycle unit sales up 5%
New Motorcycle unit sales up 5% (Unit sales) For personal use only New Motorcycles New Motorcycles total industry sales up 5% sales down 10% 113,011 106,220 110,787 112,587 101,114 9,575 9,089 7,538 50,908 53,084 4,631 47,911 6,482 6,413 4,146 3,507 4,944 61,679 53,203 57,703 4,031 4,943 2014 2015 2
Slide 7: Used Motorcycle unit sales up 13%
Used Motorcycle unit sales up 13% (Unit sales) For personal use only Used Motorcycles sales up 13% 8,179 7,221 6,393 5,888 5,890 4,256 3,603 3,140 3,618 3,923 3,253 2014 2015 2016 2017 2018 First half of year Second half of year MotorCycle Holdings 7
Slide 8: Revenue growth of 29%
Revenue growth of 29% ($million)* For personal use only Revenue up 29% NPAT down 2%* 9.3 9.1 302 8.0 235 3.7 209 162 4.9 3.6 173 114 164 4.5 4.6 104 4.4 5.6 121 140 4.2 105 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 *2017 numbers are actual statutory. Prior years are proforma. *Acquisition co
Slide 9: Underlying EBITDA and Margin growth
Underlying EBITDA* and Margin growth For personal use only EBITDA up 36% EBITDA Margin at 6.5% ($million) 19.8 14.6 10.8 12.8 6.5 6.0 6.1 6.2 5.8 7.5 7.8 4.6 4.5 8.6 9.0 7.0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 * Underlying EBITDA excludes acquisition costs Note: 2017 numbers are actual
Slide 10: Divisional Summary
Divisional Summary For personal use only New Motorcycles ▪ Revenue up 8% ▪ Gross profit up 2% Used Motorcycles ▪ Revenue up 18% ▪ Gross profit up 17% Retail accessories ▪ Revenue up 54% and parts ▪ Gross profit up 83% Servicing ▪ Revenue up 12% and repair ▪ Gross profit up 8% Finance, insurance ▪ In
Slide 11: Dealer network expanded
Dealer network expanded to 30 dealerships For personal use only ▪ TeamMoto Frankston, acquired December 2017 ▪ TeamMoto Yamaha Sunshine Coast, opened January 2018 ▪ Central Coast Harley- Davidson, acquired March 2018 ▪ Seeking approval to sell used bikes in MCA ▪ Auburn now selling used motorcycles
Slide 12: Acquisitions drive increased scale and diversification
Acquisitions drive increased scale and diversification For personal use only Substantial increase in the scale of the business 1 ▪ Revenue increase from $235 million to $302 million ▪ Underlying EBITDA increase from $14.6 million to $19.8 million Increased geographic footprint and diversification 2
Slide 13: Effective business model
Effective business model For personal use only Diversified revenue streams 1 ▪ New motorcycles ▪ Used motorcycles ▪ Accessories and parts ▪ Servicing and repair ▪ Finance, insurance and warranty Centralised management structure drives performance 2 ▪ Marketing, purchasing, product sourcing, training
Slide 14: Strong growth opportunities
Strong growth opportunities For personal use only Key business elements Leading growth opportunities ▪ Dealership acquisitions New motorcycle sales ▪ Greenfield site development ▪ Acquiring rights to distribute new motorcycles ▪ Increased sales as more dealerships are acquired Used motorcycle sales
Slide 15: 2018/19 Focus
2018/19 Focus For personal use only Leverage the Current Network ▪ Improve dealership performance ▪ Continue to improve existing franchise network and operating practices ▪ Allied Credit JV to add diversity and future profitability Grow ▪ Continue MCA store roll-out ▪ Increase used motorcycle sales
Slide 16: 2018/19 Focus
2018/19 Focus For personal use only Consolidate ▪ Continue Cassons integration ▪ Continue to consolidate the Original Equipment Manufacturer (OEM) franchise market through acquisitions ▪ Strengthen management team ▪ Improve systems, processes and reporting to establish platform for future growth Mot
Slide 17: Outlook
Outlook For personal use only ▪ New motorcycle market remains challenging. Focus on used bikes continues to provide good results ▪ Contribution from Allied Credit JV ▪ Full year contribution from recent dealership and Cassons acquisitions ▪ Uplift expected from introduction of used bike sales in MCA
Slide 18: MotorCycle Holdings
For personal use only MotorCycle Holdings Motorcycle HoldingsInvestor Presentation 18