Motorcycle Holdings Ltd. · ASX:MTO
Motorcycle — FY2017 Earnings Presentation
18 slides from Motorcycle's earnings presentation, Aug 30, 2017
Slide 1: FY2017 Full Year Results
MOTORCYCLE HOLDINGS For personal use only FY2017 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 Record full year profit of $9.3 million, up 16% from June 2016, 1 EPS growth 16% 2 Final dividend of 7.5 cents per share, fully franked 3 Record sales revenues of $235.3 million, up 12% 4 17% growth in total motorcycle sales 5 Network expanded through acquisi
Slide 4: Market leader in motorcycle retailing
Market leader in motorcycle retailing For personal use only Australia’s largest motorcycle dealership MTO share price has more than 1 operator with 29 year history and 27 dealerships doubled since ASX listing in April 2016 Proven business model with strong OEM 2 relationships and diversified revenue
Slide 5: Profit results
Profit results For personal use only FY 16 $m Pro Forma FY17 % Change Revenue 209.3 235.3 12.4% Cost of sales (154.8) (173.0) 11.8% Gross Profit 54.5 62.3 14.3% Gross Profit Margin (%) 26.0% 26.5% Employee benefits expense (29.6) (34.7) 17.2% Occupancy expenses (5.2) (5.8) 11.5% Other expenses (6.5)
Slide 6: Record new unit sales
Record new unit sales (Unit sales) For personal use only New Motorcycles sales New Motorcycles total industry sales up 21% up 2% 9,089 117,557 112,587 113,011 110,787 7,538 106,220 6,482 6,413 4,146 6,016 3,507 53,084 50,908 4,943 61,679 57,703 4,031 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Slide 7: Record used unit sales
Record used unit sales (Unit sales) For personal use only Used Motorcycles sales up 13% 7,221 6,393 5,888 5,890 5,335 3,603 3,140 3,618 3,253 2013 2014 2015 2016 2017 First half of year Second half of year MotorCycle Holdings 7
Slide 8: Record revenue and Net profit
Record revenue and Net profit ($million)* For personal use only Revenue up 12% NPAT up 16% 235 9.3 209 8.0 173 3.7 164 114 149 104 3.6 4.5 4.6 3.7 5.6 121 4.4 105 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 *2017 numbers are actual statutory. Prior years are proforma. MotorCycle Holdings 8
Slide 9: EBITDA and Margin
EBITDA and Margin For personal use only EBITDA up 13% EBITDA Margin at record ($million) (%) 14.6 12.8 6.0 5.8 7.8 … 6.4 6.1 6.2 4.3 4.6 4.5 8.6 7.0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 *2017 numbers are actual statutory. Prior years are pro-forma. MotorCycle Holdings 9
Slide 10: EBITDA and Margin excluding new stores
EBITDA and Margin excluding new stores For personal use only Underlying EBITDA up 15.6% EBITDA Margin at 6.5% 14.8 6.5 12.8 6.1 2016 2017* 2016 2017* 2017 numbers are actual statutory. Prior years are pro-forma. *Excluding new stores *Excluding new stores impact of ($200,000) EBITDA MotorCycle Holdi
Slide 11: All divisions performing well
All divisions performing well For personal use only New Motorcycles • Revenue up 20% • Gross profit up 24% Used Motorcycles • Revenue up 7% • Gross profit up 9% Accessories • Revenue up 8% and parts • Gross profit up 13% Servicing • Revenue up 7% and repair • Gross profit up 15% Finance, insurance •
Slide 12: Operating expenses tightly controlled
Operating expenses tightly controlled $ million For personal use only 173 155 2016 2017 34.7 29.8 5.2 5.8 7.6 8.5 Raw Materials/Inventories Employee benefits Occupancy Other MotorCycle Holdings 12
Slide 13: Year on year Industry conditions stable
Year on year Industry conditions stable For personal use only New motorcycle sales by type* Thousands of motorcycles (FY) Qld Used Bike Sales (FY) 23,576 23,529 Road: 44,792 22,464 21,871 Road 48,000 20,290 18,571 18,215 18,727 17559 17,655 Off-road 40,000 16,532 Off Road: 39,421 ATV 23,000 ATV: 24,
Slide 14: Three dealerships acquired
Three dealerships acquired For personal use only • Evolution Motorcycles, Epping, Victoria, and Action Motorcycles Nerang acquired March 2016 • Sunshine Coast Harley- Davidson, Kunda Park Qld acquired in May 2017 • Confirms MotorCycle Holdings position as Australia’s #1 motorcycle dealership operato
Slide 15: Effective business model
Effective business model For personal use only Industry structure ü Diversified revenue streams − New motorcycles DEALERSHIP OPERATORS BY NUMBER OF LOCATIONS − Used motorcycles − Accessories and parts − Servicing and repair 5+ dealerships 3 − Finance, insurance and warranty 2-4 dealerships ü Central
Slide 16: 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 Core Strategy: • Increased sales as more dealerships are acquired Used mo
Slide 17: Outlook
Outlook For personal use only • Market conditions show some volatility across the year, but MTO expects to continue to outperform the market • Continued growth expected in same store sales • Acquisition pipeline remains active • Regulatory changes to reduce Insurance NPAT by ~$1.4M, largely offset b
Slide 18: MotorCycle Holdings Investor Presentation
For personal use only MotorCycleHoldings Motorcycle HoldingsInvestor Presentation 18