thl Interim Results FY21
Tourism Holdings Limited
Tel: +64 9 336 4299
The Beach House
Fax: +64 9 309 0913
Level 1, 83 Beach Road
www.thlonline.com
Auckland City
PO Box 4293, Shortland Street
Auckland 1140, New Zealand
26 February 2021
NZX | MEDIA RELEASE
TOURISM HOLDINGS LIMITED (thl)
HALF-YEAR RESULTS TO 31 DECEMBER 2020
thl reduces net debt to $22M and delivers a record vehicle sales performance amid a challenging rentals
environment
Net debt of $22M as at 31 December 2020, reflecting a reduction of approximately $106M across H1
FY21 and $175M since 24 March 2020.
Balance sheet strength with net tangible assets at 31 December 2020 of approximately $266M, and
$312M including intangible assets.
We remain committed to becoming a Future-Fit Business.
An 89% increase in the number of fleet sold and 132% increase in global vehicle sales revenue on the
pcp.
EBIT of $16.6M in the USA business, up 34% on the pcp.
Statutory net loss after tax of $1.8M and underlying net loss after tax of $3M, down on a
statutory/underlying profit of $13.1M in the pcp.
Total revenue of $205.8M, down 1% on the pcp, driven by the growth in vehicle sales revenue.
Global rental revenue of $64.8M, down 50% on the pcp.
Entry into agreement to acquire the remaining 50% interest in Action Manufacturing from joint
venture partner for $9 million, payable in $7.5M of thl shares being issued to Alpine Bird
Manufacturing, with the remaining $1.5M paid in cash.
thl digital strategy review completed.
It remains difficult to provide guidance for FY21 however our expectations remain for a full year FY21
loss as disclosed in our most recent market update.
1
thl Chair, Rob Campbell, said “thl is has reduced debt significantly, in particular over the last six months,
and is positioned well to face uncertainty. The manner in which we operate the business and the decisions
we make today are critical to the long-term positioning and success of thl.”
1
‘FY21 Market Update’ released on 23 December 2020.
2 of 3
thl Chief Executive, Grant Webster, said “thl has executed on its accelerated vehicle sales plan to deliver
total revenue in the first half of FY21 that is approximately equal to the prior period, despite the
substantial reduction in rental revenue.
Our net debt will increase in the remainder of the financial year as we re-invest in new fleet, given the
volume of vehicles recently sold. We have confidence that we can sell vehicles to generate a profit, based
on the sales performance over the last 12 months.
We are proactively adapting our business and product mix to match the current domestic trading
environment, whilst also undertaking several business improvement projects to see that we come out as
the leader in the market as international tourism returns.
We continue to retain our commitment to the Future-Fit Business Benchmark, and it continues to
influence the way we operate our business on a daily basis. We see this as fundamental to see that we
survive and contribute to society in the long-term.
While we consider that our result for the half has been positive in the circumstances, particularly within
our USA business, we are realistic about the losses that we will be incurring in the remainder of 2021.”
The financial statements, results presentation, commentary and a Chair and Chief Executive letter to
shareholders is available at www.nzx.com and www.thlonline.com.
END
Authorised by:
Rob Campbell
Chairman, Tourism Holdings Limited
For further information contact:
Grant Webster
thl Chief Executive Officer
Direct Dial: +64 9 336 4255
Mobile: +64 21 449 210
3 of 3
About thl (www.thlonline.com)
thl is a global tourism operator. We are listed on the NZX and are the largest provider of RVs for rent and sale in Australia and
New Zealand, and the second largest in North America. In the USA, we own and operate the Road Bear RV Rentals & Sales brand
and El Monte RV Rentals & Sales. In the UK, thl owns 49% of Just go Motorhomes. Within New Zealand, we operate Kiwi
Experience and the Discover Waitomo group, which includes Waitomo Glowworm Caves, Ruakuri Cave, Aranui Cave and The
Legendary Black Water Rafting Co. thl also owns and operates Action Manufacturing LP, New Zealand’s largest motorhome and
specialist vehicle manufacturer.
---
F Y 1 9
F U L L Y E A R R E S U L T S
P R E S E N T A T I O N
F Y 2 1
I N T E R I M R E S U LT S
P R E S E N TAT I O N
Reset for the future
26 February 2021
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Disclaimer
2
This presentation contains forward-looking statements and projections. These reflect thl’s current expectations, based on what it thinks are
reasonable assumptions. The statements are based on information available to thlat the date of this presentation and are not guarantees or
predictions of future performance. For any number of reasons, the future could be different and the assumptions on which the forward-looking
statements and projections are based could be wrong. thlgives no warranty or representation as to its future financial performance or any future
matter. Except as required by law or NZX listing rules, thlis not obliged to update this presentation after its release, even if things change
materially.
This presentation has been prepared for publication in New Zealand and may not be released or distributed in the United States.
This presentation is for information purposes only and does not constitute financial advice. It is not an offer of securities, or a proposal or
invitation to make any such offer, in the United States or any other jurisdiction, and may not be relied upon in connection withany purchase of thl
securities. thlsecurities have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the
United States, except in transactions exempt from, or not subject to, the registration of the US Securities Act and applicable US State securities
laws. Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as an indication
of future performance.
This presentation may contain a number of non-GAAP financial measures. Because they are not defined by NZ GAAP or IFRS, thl’s calculation of
these measures may differ from similarly titled measures presented by other companies, and they should not be considered in isolation from, or
construed as an alternative to, other financial measures determined in accordance with NZ GAAP.
This presentation does not take into account any specific investors objectives and does not constitute financial or investment advice. Investors are
encouraged to make an independent assessment of thl and seek professional advice. The information contained in this presentation should be
read in conjunction with thl’s latest financial statements, which are available at: www.thlonline.com.
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Important notes
3
•All financials are in NZ dollars unless stated otherwise (throughout presentation).
•All comparisons are against the prior corresponding period (pcp) unless otherwise stated.
•The average NZD:AUD cross-rate (average of the six months rates) for H1 FY21 was 0.9329 (H1 FY20 -0.9433).
•The average NZD:USD cross-rate (average of the six months rates) for H1 FY21 was 0.6756 (H1 FY20 -0.6453).
•Return On Funds Employed (ROFE) is a non-GAAP measure that thluses to measure performance of business units, and the Group, in relation to the financial
resources utilised. ROFE is calculated as EBIT divided by average monthly net funds employed. Net funds employed are measured as total assets, less non-interest
bearing liabilities and cash on hand. Lease liabilities resulting from IFRS 16 are not considered in determining funds employed. Accordingly, the interest expense
arising from IFRS 16 is also deducted from EBIT for the purposes of ROFE. The calculation is done in NZ dollars.
•Net debt refers to bank borrowings less cash and cash equivalents.
•References in this presentation to international travel or tourism (or similar) includes reference to an Australasian bubble, unless stated otherwise.
•The balance sheet is converted at the closing rate as at 31 December 2020. The USD cross-rate used was 0.7227 (H1 FY20 –0.6735); the AUD cross-rate used was
0.9384 (H1 FY20 –0.9617) and the GBP cross-rate used was 0.5297 (H1 FY20 –0.5136).
•H1 FY21 includes a non-recurring accounting gain of $1.2M (inclusive of tax) as a result of termination of the lease for the Mangere branch.
•H2 FY20 includes the following non-recurring items:
•the partial Togo exit undertaken in March 2020 which resulted in a one-off gain of $9.3M including tax and foreign exchange benefits;
•a tax benefit of $1.1M in the USA; and
•the write-off of $3.1M of goodwill attributed to Kiwi Experience.
•The depreciation expense and interest expense recognised in H1 FY21 in relation to IFRS 16 Leases is $3.9M and $1.7M, respectively. The actual lease payments
during the period were $5.4M.
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O NF Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
4
Summary
•Net debt of $22M as at 31 December 2020, reflecting a reduction of approximately $106M across H1 FY21 and $175M since 24 March 2020.
•Balance sheet strength with net tangible assets at 31 December 2020 of approximately $266M, and $312M including intangible assets.
•We remain committed to becoming a Future-Fit Business.
•An 89% increase in the number of fleet sold and 132% increase in global vehicle sales revenue on the pcp.
•EBIT of $16.6M in the USA business, up 34% on the pcp.
•Statutory net loss after tax of $1.8M and underlying net loss after tax of $3M, down on a statutory/underlying profit of $13.1M in the pcp.
•Total revenue of $205.8M, down 1% on the pcp, driven by the growth in vehicle sales revenue.
•Global rental revenue of $64.8M, down 50% on the pcp.
•Entry into agreement to acquire the remaining 50% interest in Action Manufacturing from joint venture partner for $9M, payablein $7.5M
of thlshares being issued to Alpine Bird Manufacturing, with the remaining $1.5M paid in cash.
•Updated plan for thl digitalis regionally focused, looks to build integration within the digital portfolio and create efficiencies. This is
expected to support EBIT growth by increasing engagement across the RV owner lifecycle and enabling growth in core business areas of
sales, servicing, retail and peer-to-peer.
•Given the uncertainty and significance of the Easter and school holiday period for New Zealand and Australia, and the spring/early summer
season in the USA, it remains difficult to provide guidance for FY21. However, our expectations remain for a full year FY21 loss as disclosed in
our most recent market update.
1
1
‘FY21 Market Update’ released on 23 December 2020.
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Future-Fit Initiative
5
•thlwill be the first public company to issue a ‘Level 1’ Statement of
Progress to explain where it is at on the journey to becoming a Future-Fit
Business.
•Our disclosure is ready to go and it will be published soon via a new
publicly-accessible data hub which is currently being implemented at
https://FutureFitbusiness.org/.
•thl will be providing an in-depth update on our progress against the Future-
Fit Break-Even Goals in our next Annual Integrated Report.
•thl continues to invest in new fleet to reduce future emissions.
•For further information, please visit our sustainability website at
https://www.thlsustainability.com/.
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O NF Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Half year in review
As at 31 December 2020
1
Inclusive of sale of buyback vehicles.
2
See footnote 3 on slide 13.
3
Before non-recurring items. See slide 3.
6
REVENUE (VEHICLE SALES)
$137M
(H1 FY20 $59.1M)
EBITDA
3
$25.7M
(H1 FY20 $62.1M)
-54%132%
REVENUE (RENTALS & SERVICES)
$68.8M
(H1 FY20$148.4M)
-59%
NET TANGIBLE ASSETS
$265.6M
(AT 30 JUNE 2020 $274.8M)
-3%
-123%
UNDERLYING NET
LOSS/PROFIT AFTER TAX
3
-$3.0M
(H1 FY20 $13.1M)
NET DEBT
$22.0M
(AT 30 JUNE 2020 $127.7M)
-83%
-114%
STATUTORY NET LOSS/PROFIT
AFTER TAX
-$1.8M
(H1 FY20 $13.1M)
TOTAL FLEET SALES
1
1,786
(H1 FY20 944)
89%
TOTAL FLEET SIZE
4,228
(AT 30 JUNE 2020 5,815)
2
-27%-1%
TOTAL REVENUE
$205.8M
(H1 FY20$207.5M)
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Reset for the future
7
•Continued focus in H1 of FY21 on fleet management, capital management and cash preservation, assisted by the
geographic diversification of thlbuilt up over the last decade.
•Resetting each business with a smaller fleet and a sustainable, reduced cost base, reflecting the domestic
environment to reduce rental cash burn.
•Capitalisingon demand growth with a successful vehicle sales performance in H1.
•Re-commencing fleet investment with confidence that vehicles can be sold to generate a profit, based on vehicle
sales performance over the last 12 months.
•Significant swing from rental revenue to vehicle sales revenue across all jurisdictions as part of the necessary reset.
•Launch of new Cosmos fleet management system in New Zealand and Australia.
•Prioritisationof the Future-Fit Break-Even Goals with a focus on our vehicle emissions and how we address this in
future fleet. Completion of the full Baseline Future-Fit Benchmark Assessment.
Operational cash burn
Sales revenue facilitates
positive cash flow
Rental revenue facilitates
positive cash flow
Group profitability and
growth
FY21
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
8
Financial summary
•Total revenue of $205.8M, down
1% on the pcp as growth in vehicle
sales revenue offset a decline in
rental and services revenue.
•EBITDA of $27.3M and EBIT of
$1.8M.
•Underlying NPAT loss of $3.0M,
compared to $13.1M profit in the
pcp.
•Non-recurring items had a positive
$1.2M impact on NPAT. See slide
3.
OPERATING PROFIT BEFORE TAX $M
NZD $M
FY21
FY20
VAR
%
Operating revenue
205.8
207.5
(1.6)
(1%)
Earnings before interest,
tax,depreciation and
amortisation*
27.3
62.1
(34.7)
(56%)
Earnings before interest and
tax*
1.8
31.0
(29.2)
(94%)
Operating profit before tax
(2.9)
18.7
(21.7)
(116%)
(Loss)/Profit after tax*
(1.8)
13.1
(14.8)
(114%)
* includes non-recurring item
6 Months to December
NZD $MFY21FY20VAR%
Underlying NPAT(3.0) 13.1 (16.0) (123%)
One-off gain on termination of
lease
1.2 – 1.2 NA
(Loss)/profit after tax(1.8) 13.1 (14.8) (114%)
6 Months to December
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Acquisition of remaining 50% interest in Action Manufacturing
9
•thl hasentered into an agreement to acquire the remaining 50% interest in Action Manufacturing from its
joint venture partner, Alpine Bird Manufacturing (owned by Grant Brady) for $9M. The purchase price,
which is below net carrying asset value, is payable in $7.5M of thlshares being issued to Alpine Bird
Manufacturing, with the remaining $1.5M paid in cash.
•Action Manufacturing plays an integral role within thl’s ‘Build –Rent –Sell’ RV business model as the
primary supplier of vehicles for the New Zealand and Australian rentals businesses, as well as building a
sizeable design led specialist vehicle manufacturing business.
•Working in partnership with Grant Brady, we agreed that the timing was right for the inevitable change in
shareholding and leadership. Importantly, Grant Brady will remain connected as both an Executive Director
of Action Manufacturing and as a top 10 shareholder of thl.
•Action Manufacturing is expected to continue to make a positive EBIT contribution in FY21 and generate
revenue growth at a faster rate than thlin the coming 12 months.
•There is a strong and growing pipeline of work for Action Manufacturing’s specialist vehicle design and
manufacturing business, following recent success in a number of sizeable tenders.
•This business has promising growth opportunities for further expansion in both New Zealand and Australia,
and positions thlwell to consider further M&A opportunities in the specialist vehicle manufacturing sector.
•Grant Brady will be providing transitional support to current Chief Operating Officer, Chris Devoy, as he
steps into a new Chief Executive Officer role for Action Manufacturing.
•Chris Devoy has been with Action Manufacturing and the broader thl group for 15 years and has
successfully led the specialist commercial vehicle business through several years of growth and expansion.
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
10
Balance sheet
Net Debt
$22M
•Net debt was reduced by 83% across H1
FY21, reflecting increased vehicle sales and
reduced fleet size.
•Net debt will increase in H2 FY21 as thl
receives and pays for fleet proactively
ordered to replenish a portion of the
vehicles sold, with ongoing confidence in
the expected vehicle sales market.
•Net debt as at 30 June 2021 is expected to
be around $90M (compared to previous
guidance of approximately $100M).
31 December 2019
$181M
30 June 2020
$128M
226
202
181
128
22
10.7
14.4
–
50
100
150
200
250
Dec 18Jun 19Dec 19Jun-20Dec-20
Net debtLOC
Net debt
1
1
Net debt excludes lease liabilities relating to the adoption of IFRS 16.
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Debt facilities
11
Maturity of debt facilities
December 2021NZ$43M
June2022NZ$57M
July 2022NZ$67.8M
2
September 2022NZ$29M
TotalNZ$196.8M
2
US$49M.
•thlhas available facilities with its banking partners
totalling $196.8M with $176M of cash and facility
headroom available as at 31 December 2020.
•Interest on bank borrowings was $3.6M, down $1.2M on
the pcp.
•The effective interest rate in H1 FY21 was 6.94% compared
to 5.25% in the pcp. The increase is attributable to a line
fee payable on the total facility size and higher margins
due to the financier view of the risk profile of tourism.
•thl will shortly be engaging with its banking partners to
commence its regular annual renewal process.
•thlcontinues to be in compliance with all banking
requirements.
•thl’s covenant structure remains unchanged from that
advised in June 2020.
1
1
‘Funding arrangements and FY20 guidance’ released on 25 June 2020.
NZ $M
FY21
FY20
VAR
%
Interest on bank borrowings
3.6
4.8
(1.2)
(26%)
Average effective interest rate
6.94%
5.25%
1.69%
32%
6 Months to December
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
12
EBITDA
•thlhas been focused on EBITDA performance over the half, as
a measure more reflective of the focus on cash generation and
preservation. thl believes EBITDA is currently the most useful
measure of our performance in the rentals and sales
businesses.
•EBITDA provides insight into thl’s underlying performance
when removing the significant P&L depreciation impact
resulting from some businesses holding excess fleet, whilst
international borders are closed.
•Total group EBITDA was $27.3M, down 56% on the pcp.
1
•The majority of the decline in group EBITDA relates to the New
Zealand rentals business, where EBITDA fell by 95% to $0.9M.
•EBITDA performance in the USA business remained stable with
prior years. The result was attributable to the vehicle sales
performance.
15
13
25
1616
26
18
17
23
1
5
23
0
5
10
15
20
25
30
New Zealand*AustraliaUnited States
Rentals & Sales EBITDA
H1 FY18H1 FY19H1 FY20H1 FY21
NZD $M
1
Includes non-recurring item. See slide 3.
* Excludes Tourism businesses.
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
13
Fleet movement
•Across H1 FY21, as part of efforts to right
size thl’s global fleet, the global fleet size
has been reduced by approximately 27%
(5,815 to 4,228 vehicles).
•Growth orientated gross fleet capital
expenditure of approximately $120M is
expected for FY21, primarily relating to USA
fleet investment.
•We consider that the USA fleet size has
reached its lowest point, and intend to add
new fleet to meet the domestic rentals and
sales market demand.
•We expect to continue to reduce fleet size
in New Zealand and Australia in H2 FY21.
Those businesses are likely to see their
lowest point in fleet size during that period.
We will be adding new units to the fleet
consistent with rentals and sales demand in
each country.
New Zealand
2,561
1,652
1,709
2,663
1,696
2,092
2,029
1,227
972
0
500
1,000
1,500
2,000
2,500
3,000
New ZealandAustraliaUnited States
Fleet size
31-Dec-1831-Dec-1931-Dec-20
Australia
USA
1
Excludes sale of non-fleet vehicles.
2
Includes sale of buyback vehicles.
3
Opening USA fleet of 1,842 compares to 1,912 as was reported in the 2020 Annual Results presentation, due to vehicle sales quantity having been
under reported in the Annual Results presentation (however dollar figures for vehicle sales proceeds were accurate).
Vehicle Fleet
Units:
FY21FY20
VAR
VAR %
Opening Fleet2,532 2,332 200 9%
Fleet Sales
(1)
(643)(269) 374 139%
Fleet Purchases140 570 (430) (75%)
Closing Fleet2,029 2,633 (604) (23%)
6 Months to December
Units:
FY21
FY20
VAR
%
Opening Fleet
1,441
1,641
(200)
(12%)
Fleet Sales
(1)(2)
(273)
(324)
(51)
(16%)
Fleet Purchases
59
379
(320)
(84%)
Closing Fleet
1,227
1,696
(469)
(28%)
Vehicle Fleet
Units:
FY21FY20
VAR
%
Opening Fleet
(3)
1,8422,440(598)(25%)
Fleet Sales(870)(351)519148%
Fleet Purchases-3(3)-
Closing Fleet9722,092(1,120)(54%)
Vehicle Fleet
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
14
Vehicle sales
•Global vehicle sales revenue was $137M, up 132% on the pcp in response to
COVID-19, driven by theGreat New Zealand Motorhome Sale in New Zealand
and a strong demand environment in the United States.
•There has been significant growth in average margins in the USA, however it is
expected that this will be temporary and that margins will revert to historical
norms in the medium to long-term.
•The USA business is now focused on selling fewer vehicles at higher margins
through retail channels, in order to manage fleet size ahead of the upcoming
2021 summer season. Supply issues will prevent thlfrom continuing to sell fleet
in the USA at similar levels to H1, due to difficulties of replacing fleet for the
summer season.
•In New Zealand there has been a reduction in average sales margins,
attributable to the Great New Zealand Motorhome Sale as further noted on the
next slide.
•Overall average sales margins in Australia experienced a small decline on the pcp
due to discounting on a large number of flex fleet product to reduce fleet in that
category. Average margins on the majority of core vehicles sold improved on the
pcp.
•The Real Depreciation Rate has decreased across all three countries in H1 FY21
compared to the pcp, however this is not considered a realistic indication of the
future direction of Real Depreciation Rates given the anomalous nature of
vehicles sales in this period.
23
9
32
26
8
26
56
16
66
0
10
20
30
40
50
60
70
NZAustraliaUnited States
Vehicle sales revenue
H1 FY19H1 FY20H1 FY21
NZD $M
* The Real Depreciation Rate is the measure of the difference between the
purchase price and sale price of the vehicles sold in a financial period. It allows
for no gain on sale or costs associated with the sale or management of the
vehicle.
Real Depreciation Rates per annum *
FY21
FY20
New Zealand
~5%
~6%
Australia
~7%
~8%
United States
~4%
~5%
6 Months to December
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
New Zealand vehicle sales
15
•The H1 FY21 New Zealand average vehicle sales margin was 36% down on the pcp. This is
attributable to theGreat New Zealand Motorhome Sale initiated in response to COVID-19, and is not
expected to be a permanent trend.
•The strategic objectives for the campaign were to:
•drive additional vehicle sales volume to support the fleet reduction initiative in New Zealand;
•grow the vehicle servicing and retail accessories segments of the RV Super Centre;
•expand the RV Super Centre wholesale offering to grow European imported distributor
opportunities and new sales;
•grow thl’s vehicle sales capabilities by building and expanding the third party dealer network;
and
•reposition New Zealand made and New Zealand new vehicles within the market where share
has been lost over the last five years.
•New dealers have joined thl’s network and the proportion of vehicles sold (compared to total
vehicles sold) doubled on the pcp.
•Retail accessory and servicing revenue increased by 38% on the pcp. Online retail sales grew by
144%on the pcp.
•Each sale during the campaign included a $250 retail voucher and $550 servicing voucher. These
liabilities were accrued for (impacting margin on sale), and will be recognised as revenue when the
vouchers are used.
•Vehicle sales in New Zealand are expected to continue at a similar rate in H2 FY21, with margins
closer in line with historical levels.
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Rentals
•Domestic rental revenue in New Zealand experienced
an increase in excess of 500% on the pcp, however
the total revenue result was significantly below the
pcp given international has historically been 90-95%
of total rental revenue.
•USA domestic rental revenue approximately doubled
compared to the pcp. Unlike New Zealand and
Australia, domestic bookings in the USA have been
able to achieve higher yields per day (compared to
international bookings). However, total revenue per
booking remains down on international due to
shorter booking durations.
•There has been limited growth in Australian domestic
rental revenue as a result of the interstate travel
restrictions in place across much of H1 FY21. Despite
this, we continue to believe that the Australian
rentals business can be profitable in a 100% domestic
environment with no domestic travel restrictions. For
H2 FY21, we expect significantly improved Australian
domestic results in an environment with a moderate
number of short interstate border closures.
38.5
37.0
50.4
40.5
37.7
52.4
14.6
14.0
36.2
0
15
30
45
60
New ZealandAustraliaUnited States
Total rental revenue
H1 FY19H1 FY20H1 FY21
NZD $M
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Recent market trends and expectations
17
New ZealandAustraliaUnitedStates
Rentals
environment
•Domestic yields remain 30-40% down on previous
norms, with demand elasticity high.
•Utilisation remains difficult to maximise given the
proportion of weekend bookings.
•A late booking cycle continues with close to 50% of
revenue generated in the three week period before
travel.
•Positive rebound in bookings seen quickly after
short-term lockdowns end.
•Non-holiday periods remain very challenging.
•Expectation that these rental trends will continue
while domestic only market remains.
•Domestic yields are comparable to previous years.
•Utilisation remains difficult to maximise given the
proportion of weekend bookings and the ongoing
interstate border restrictions.
•Demandfor intrastate travel is well above previous
levels.
•Positive rebound in bookings seen quickly after all
interstate border closures end.
•Expectation that as the vaccine roll out gains pace
less interstate border closures will lead to a more
stable demand curve.
•Domestic yields havebeen higher than previous years.
This is a result of both lower supply and higher demand in
the market. We see this trend continuing in CY21 as
demand picks up for spring and summer.
•Utilisation remains difficult to maximise given the proportion
of weekend bookings.
•Demand growth is attributable to a high addressable
market per available RV and a customer perception that it
is a safe mode of travel during the pandemic.
•Apollo and Best Time RV are no longer in the rentals
market in CY2021.
Vehicle sales
environment
•Theglobal trend of growth in the RV sales market is
evident in New Zealand.
•We believe this is category growth rather than future
business brought forward.
•The trend in sales margins is as explainedon slide
15.
•Margins are expectedto recover andelevated
demand isexpected to continue through FY22,
based on strongerdomestic travel demand and
supply constraints.
•Theglobal trend of growth in the RV sales market is
evident in Australia.
•Motorised RV product remains around 30% of the
total Australian RV market (i.e. towables are growing
at a similar rate).
•Sales margins remain consistent.
•Sales have been constrained recently to ensure an
appropriate fleet size for the business with all States
open.
•New vehicle supply is constrained and likely to
remain so for the coming 12 months.
•The category has benefited significantly from COVID-19
restrictions.
•thl soldrecord numbers of vehicles in several consecutive
months within H1 FY21.
•Demand has lead to significant growth in sales margins.
There is also a one-off gain representing the sale of our
current 1 –3 year old vehicles (originally purchased at
lower prices reflective of the market at that time) in the
current inflated sales market.
•While this demand environment is expected to continue in
FY21 and H1 FY22 with support from supply constraints
and low dealer inventory, margins are expected to return to
the historical norm over the longer term.
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
COVID-19 support initiatives
18
Description of eventAmount (NZ$)
Recognition in statement of comprehensive
income
New Zealand wage subsidies$1.64MNetted off within operating expenses
Strategic Tourism Asset Protection Programme
funding for DiscoverWaitomo
$1.34MOtherincome
Australian JobSeekerwage subsidies$2.13MNetted off within operating expenses
Forgiveness of USA Payment Protection Program
loan
$1.48MOther income
•thl has received financial support through COVID-19 support schemes implemented by the Government in each of the various countries thloperates in.
•The below amounts, included within thl’s statement of comprehensive income for the six months ended 31 December 2020, are in relation to these
COVID-19 support initiatives.
•These initiatives have, as was intended, effectively supported thlin continuing its operations in the midst of significant uncertainty and ensured ongoing
employment.
•thlcontinues to adjust labour to demand and volume, whilst seeking to retain as many roles as realistically possible.
•In all areas of our business, this financial support has enabled thlto retain jobs. In particular, it would not have been viable to continue to operate the
Discover Waitomo business without the support received under the Strategic Tourism Assets Protection Programme.
•thl is also collaborating with the Department of Conservation (DOC) under the Kaimahi for Nature programme. With support from DOC, 15 roles have
been contracted to work on conservation initiatives in the Waitomo region.
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
19
Divisional Review
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O NF Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Divisional EBIT
20
$MFY21FY20VARVAR %
thl Rentals
New Zealand(10.8)7.5 (18.3)(245%)
Australia(2.6)8.6 (11.2)(130%)
USA16.6 12.4 4.2 34%
Total Rentals3.1 28.5 (25.3)(89%)
Tourism Group(0.5)4.3 (4.8)(112%)
Total operating divisions2.6 32.8 (30.2)(92%)
Group Support Services & Other (2.4)(1.8)(0.6)(34%)
Total EBIT1.8 31.0 (29.2)(94%)
EBIT before non-recurring item0.2 31.0 (30.8)(99%)
Non-recurring item
One-off gain on lease termination 1.6 0.0 1.6 NA
Total non-recurring item1.6 0.0 1.6
Split
Australia(2.6)8.6 (11.2)(130%)
USA16.6 12.4 4.2 34%
New Zealand(12.1)10.0 (22.1)(221%)
Total EBIT1.8 31.0 (29.2)(94%)
Split
Australia(2.6)8.6 (11.2)(130%)
USA16.6 12.4 4.2 34%
New Zealand(13.7)10.0 (23.7)(237%)
Total EBIT before non-recurring item0.2 31.0 (30.8)(99%)
Total EBIT before non-recurring item
Australia (AUD)(2.4)8.2(10.6)(129%)
USA (USD)11.8 8.13.7 46%
6 M onths to De ce mbe r
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O NF Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Revenue
21
$MFY21FY20VARVAR %
thl Rentals - Rental Revenue
New Zealand14.640.5(25.9)(64%)
Australia14.037.7(23.7)(63%)
USA36.252.4(16.2)(31%)
64.8130.6(65.8)(50%)
thl Rentals - Sale of Goods
New Zealand55.625.829.8 115%
Australia15.97.68.3 109%
USA65.625.739.9 155%
137.059.177.9 132%
Tourism Group2.617.8(15.2)(85%)
thl digital1.30.01.3 NA
Total Revenue205.8207.5(1.6)(1%)
Split
Australia29.945.3(15.4)(34%)
USA101.878.123.7 30%
NZ and other74.184.1(10.0)(12%)
205.8207.5(1.6)(1%)
Revenue Split
Sale of Services68.8148.4(79.6)(54%)
Sale of Goods137.059.177.9 132%
205.8207.5(1.6)(1%)
Australia (AUD)
Rental Revenue13.135.6(22.5)(63%)
Sale of Goods14.87.27.7 107%
27.942.7(14.9)(35%)
USA (USD)
Rental Revenue24.233.9(9.7)(29%)
Sale of Goods43.816.127.7 172%
68.0207.5(139.5)(67%)
6 months to December
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
22
Tourism
•EBIT loss of $0.5M, down $4.8M on the pcp.
•Absence of international tourism has had a significant
impact on revenue, down $15.2M on the pcp.
•The Waitomo business continues to operate at a
minimum viable level, with support of funding under
the Strategic Tourism Asset Protection Programme.
•The Kiwi Experience hop-on hop-off business
continues to be in hibernation, but has been operating
a number of small group tours over the summer
period. It is expected that the business will remain in
this pattern until international tourism to New Zealand
returns.
NZD $M
FY21
FY20
VAR
%
Revenue
2.6
17.8
(15.2)
(85%)
Costs
(3.1)
(13.5)
10.4
77%
EBIT
(0.5)
4.3
(4.8)
(112%)
6 months to December
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
23
Joint ventures
•These part-owned businesses are not controlled by thland are equity
accounted. The results are not reported in EBIT, and are not included in
our ROFE calculations.
•Action Manufacturing (50%)
•Net profit before tax of $0.2M was down 86% on the pcp.
•thlhas a positive outlook regarding Action Manufacturing, which
has recently been successful with several tenders in the specialised
commercial vehicle sector.
•See next slide for further information regarding Action
Manufacturing.
•Just go (49%)
•Net profit after tax of $0.8M, approximately $0.6M above the pcp.
•The business has experienced positive growth in both rental yields
and sales margins.
NZD $M
FY21
FY20
VAR
%
Action Manufacturing
0.2
1.4
(1.2)
(86%)
Just go
0.8
0.2
0.6
269%
Togo Group
–
(7.3)
7.3
100%
Total
1.0
(5.7)
6.7
117%
6 Months to December
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Action Manufacturing
24
•On a 100% basis, Action Manufacturing delivered EBIT of
$0.7M, down $2.6M on the pcp, primarily attributable to the
reduction of thlmotorhome production.
•Revenue attributable to non-thl business activities in H1 FY21
was approximately $12.3M, up 10% on the pcp.
•The business has responded swiftly across all three sites to
appropriately manage costs as well as explore new business
opportunities.
•It is expected that the FY21 financial performance for the
Action business will be a low point due to the temporary
decline in motorhome production. The business is expected to
recover positively as thl re-commences fleet growth to meet
rentals and sales demand.
•Action Manufacturing is dealing with global supply issues
effectively by remaining engaged with suppliers and seeking to
increase inventory levels.
•Action Manufacturing continues to be a key element of the thl
‘Build –Rent –Sell’ RV business model in Australasia.
1
1
On a 100% basis.
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
25
Group support services and other
•Revenue of $1.3M reflects the thl digital
group revenue attributable to Mighway,
SHAREaCAMPER and triptech.
•Group support and other expenditure of
$3.7M, up 109% on the pcp primarily due
to the inclusion of thl digitaland triptech
costs (previously recognised within Togo
Group as an equity investment).
•Costs also include a $561k benefit
relating to a fair value gain on thl’s Class
B shareholding in Togo Group.
NZD $M
FY21
FY20
VAR
%
Revenue
1.3
–
1.3
-
Costs
(3.7)
(1.8)
(2.0)
(109%)
EBIT
(2.4)
(1.8)
(0.6)
(34%)
6 Months to December
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
26
Improving our business
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Core change projects
27
•Total customer experiencereview from the minute a
customer contemplates a trip through to pick-up and drop-off
of the vehicle.
•Vehicle design to improve floorplans and build the next
generation of rental and sales vehicles.
•Property review for the new flagship Auckland branch, so that
thlcan operate in a efficient and sustainable manner.
•Lifetime owner engagement to capitalise on the domestic RV
market. With increased vehicle sales across all countries there
is an opportunity to increase engagement with owners.
thl is undertaking a number of projects to
review segments of its core business, in
order to identify and undertake
improvements that will support thl’s growth
as international tourism returns.
Four key projects are underway, focused on
improving efficiencies, lowering costs,
diversifying product mix, improving quality
and service, and moving thltowards
becoming a Future-Fit Business.
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
thl digitalstrategy review
28
•As previously advised, thlhas recently undertaken a strategic review of
its digital portfolio, following the managed exit from Togo Group.
•thl’s revised digital strategic plan is to:
•utilise its digital products to support volume and margin growth in
thl’s core business areas by increasing engagement across the
entire RV owner lifecycle;
•build integration between the different elements of the digital
portfolio;
•create efficiencies within the digital portfolio as well as within thl’s
core business areas; and
•retain a focus on regional expansion across the entire RV
ecosystem within Australasia.
•thl will seek to execute on this strategy in a manner requiring a limited
level of incremental investment, as much of the development required
has already been completed.
•Investment in H2 FY21 is expected to be similar to H1 with an expected
reduction in FY22.
•A reduction in the ongoing cost base within the digital
portfolio.
•A continuation of the peer-to-peer RV business in New
Zealand and further focus on expansion in Australia.
•Global launch of the Cosmos booking and fleet
management platform over the next 12 months (New
Zealand/Australia expected March 2021).
•Global launch of the next generation in-house telematics
platform over the next 12 months.
•Greater investment in triptech with a narrower and clearly
defined opportunity.
•New technology roadmap and services for RV owners and
thlrentals customers.
KEY REVIEW OUTCOMES
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Cosmos
29
•Cosmos is an in-house developed modular micro services
platform.
•It will replace all of thl’s global fleet management,
scheduling, pricing and booking systems.
•New Zealand and Australia are set to launch imminently.
The USA and UK are to launch over the next 12 months.
•Cosmos will provide a competitive advantage through
state of the art technology developed bespoke for the RV
industry.
•It will give thl an ability to drive increased revenue
through improved utilisation, efficiencies in fleet
management and scheduling, and a better customer
booking experience.
•It will upgrade campaign and pricing flexibility and
improve distribution via an enhanced product display for
internal, B2B and B2C channels.
•Cosmos will enable the future build of further connected
micro services to support the ‘Build –Rent –Sell’ model.
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Creating demand in New Zealand
30
Get Moving to get New Zealand Moving
campaign concluded in October, with tens of
thousands of first time camper experiences
Followed by Do.More.Summer, with strong
bookings through February and March
Work from Anywhere, in partnership with
Tourism New Zealand and Vodafone, encouraged
Kiwis to extend their time away over summer
The campaign started great conversations about
the future of work and will remain an ongoing
concept through 2021
the Great New Zealand Motorhome Sale, our biggest ever vehicle
sales campaign, which successfully drove record volumes through
the RV Super Centre and affiliated dealers
Industry partnerships with TOP 10 Holiday Parks to drive
regional demand through new pop-up branches, and with a
broad range of tourism attractions via the thl Passport to
provide discounted travel opportunities when you are in a thl
camper
Taking an industry leadership position to create domestic travel demand
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Creating demand in Australia
31
Actively partnering at a national and state level to grow the RV category
Partnerships to drive regional intra-state tourism,
with strong results:
•Western Australia -Wander out Yonder
•Queensland -Good to Go
•South Australia -It’s a Great State
Foundation partner in Travel Your Road -a
national campaign led by the Caravan and
Camping Industry of Australia and Tourism
Australia to create self-drive and campground
demand
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Creating demand in the USA
32
Utilising a network of PR and influencers to reach millions in a cost effective manner
Successful owned campaigns
to drive rental goals around
longer hires and relocating
vehicles from factory to rental
sites for the coming season
Large scale PR and influencer
programme to feature the
category and thl brands in
popular media. Over 200
million impressions earned
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
33
Outlook
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O NF Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
34
FY21 Outlook
•Given the uncertainty and significance of the Easter and school holiday period for New Zealand and Australia,
and the spring and early summer season in the USA, it remains difficult to provide a meaningful range of
expectation for FY21 profit. However, our expectations do remain for a full year FY21 loss as disclosed in our
most recent market update.
1
•The H1 FY21 result cannot be used as a run rate for the full year FY21 result. The USA vehicle sales profit in
the first half cannot be repeated due to unavailability of fleet and the New Zealand and Australian businesses
are expected to have a much greater loss in the second half of FY21 due to seasonality.
•We are currently managing thlwith the expectation that there will be no international travel in FY21. We are
prepared for any upside opportunity that may arise, including the possibility of an Australasian bubble being
implemented before the end of FY21.
•Gross fleet capital expenditure is expected to be approximately $120M for FY21, primarily relating to USA
fleet investment.
•Net capital expenditure
2
is expected to be around negative $60M. There is potential for further upside on
vehicle sales in the fourth quarter of FY21.
•Net debt as at 30 June 2021 is expected to be around $90M(compared to previous guidance of
approximately $100M). We consider this a very positive result reflective of our confidence in the ability to
utilise fleet in the USA, and continue to sell fleet in all markets at margins consistent with or better than in
prior years.
1
‘FY21 Market Update’ released on 23 December 2020.
2
Net capital expenditure is equal to gross capital expenditure less vehicle sales proceeds.
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Outlook beyond FY21
35
•At the 2020 Annual Meeting, we advised that thl was
positioning from an operations and fleet size perspective to
make a profit in FY22, provided there was a reasonable
quantum of international leisure travel.
•As it stands today, we believe that a reasonable quantum of
international leisure travel is unlikely.Our expectations of
performance in a fully domestic environment within each of
our regions remain unchanged.
•We believe the USA business is capable of achieving a
reasonable EBIT profit and that Australia is also capable of
achieving an EBIT profit if State borders remain open in a
sustained manner. We expect that our New Zealand
businesses will most likely operate with an EBIT loss but
targeting a profitable EBITDA.
•Over the long-term, we remain confident in thl’s equity
position, its competitive position in the market, and the
underlying growth in the RV category globally for rentals,
sales and accessories.
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
36
CEO Q&A
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
37
It’s a tough market for tourism. Why would anyone consider investing in thltoday?
Clearly, we aren’t able to provide any financial advice, commentary on share price movements or recommendations for current or potential
investors. However, what we can say is that management and the Board remain confident in the thl business model, its strategic direction
and the future for the broader RV category globally. thl has proven over the last 12 months that it has a resilient and robust business model
–it is what separates us from others in our industry with a more fixed asset base. Tourism is an industry that should always be around but it
can be impacted by global events of this magnitude.
Within thlwe remain confident in the value of our assets, our ability to sell them at a profitable margin and the profitability of our RVrentals
businesses once the borders open. We believe that our results have proved our capabilities.
If you believe that people will want to travel globally; if you believe that the RV category will exist; and if you believe thatthlhas the right
people and experience to operate its business, then it must be a reasonable assumption that thlwill once again become a strong, profitable
business; will pay dividends once again, and return to years of growth. Some say it is a matter of when, not if, when considering thl.
How are you managing thlin the current volatile environment?
Closely! As spoken to in our Chair & CEO letter, we would say that we’redelivering on what we said we would, we’re being very dynamic and
we’re remaining realistic. In the current environment, you have to do more scenario planning in a quarter than you would’ve previously
done in two years.
Having managed our costs well, we are now very focused on generating new revenue opportunities and making the most of the situation we
find ourselves in, by reviewing and improving how we operate in all areas of our business. We are looking to leverage our core capabilities in
areas that we have greater certainty over in the short-term, such as growing our retail and servicing capabilities in New Zealand.
We are also currently addressing supply chain issues with early orders and ongoing communication with manufacturers, increasing inventory
with Action Manufacturing and others, as well as regulating our vehicle sales where appropriate. Beyond thl, we remain very close to the
rest of the tourism industry as well as broader business and Government, to help by adding value as much as we can.
Some would say there is also a role in inspiring or motivating the team. As corny as it sounds, it seems to work in reverse at the moment
within thl. Our team globally have dealt with some incredibly difficult situations and yet just keep going in a positive and adaptive manner.
They are the inspiration in this volatile environment.
Grant Webster
thl Chief Executive
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
CEO Q&A
38
International tourism may take longer to return than originally
anticipated. What does this mean for thl?
I remain confident that thlwill survive. We have realisable assets that we
can sell, purchase more of and continue to sell whilst we hold out for
international tourism to return. Our net tangible assets at the end of H1
FY21 was around $260M.
We have moved into a new rhythm in each country reflective of the
domestic environment opportunity. That does create longer term
opportunities for thlas we generate new markets. All commentary,
customer feedback and industry expectations are that international
tourism will resume. It may be a little different and people may travel
less often but for longer, however in total we expect to see a strong
recovery.
How are other operators in the RV rentals market performing?
We respect our competitors and feel for all those people in our industry
who have lost jobs. We are seeing a reduction in fleet sizes in all of the
markets we operate in. Some businesses have changed hands, some
have exited the market and some have hibernated to varying degrees.
Expectations from financiers that operators hold reasonable levels of
equity should ensure that the market doesn’t take on too much risk as
borders reopen.
Has the current environment impacted your progress on the Future-Fit Business
Benchmark?
We remain committed to becoming Future-Fit. We believe this will support thl’s long-term
sustainability and resilience in the face of future disruption. Our recent focus has been on
prioritising our Future-Fit Goals to ensure we are addressing the material challenges for our
business and industry at a system level. We’re proud to be one of the first Future-Fit
Pioneers and look forward to transparently disclosing our progress when the new Future-Fit
data hub is available.
Where do you see the next stage of growth coming from?
We have multiple projects underway within thl, a number of which we have made reference
to in our Investor Presentation. These are focused on seeing that we come out on top with
an improved product and service, to capitalise on the recovery of international tourism by
retaining and growing our leadership position and market share.
Additionally, we have continued to explore acquisition opportunities of both a large and
small nature, as is in thl’s DNA. The initiative over recent months to significantly reduce our
debt has positioned us well to grow through acquisitions. While we are exploring multiple
opportunities of both a large and small nature, we remain very critical in our assessment of
these opportunities and will only ever progress where it is suitable to do so.
Has there been any change in thl’s dividend policy, and when do you expect that dividends
will once again be paid to shareholders?
There has been no change to thl’s dividend policy at this point in time. Whilst thlis loss
making it would be reasonable to assume that we won’t be paying dividends. As borders
open and we gain an understanding of the growth opportunities in the market, we will gain a
better understanding of our balance sheet expectations and lending options for the next
phase of growth. Dividend expectations will be part of the decision making process at that
time.
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
39
Carbon emissions data
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Carbon footprint –FY20
40
•Being a Future-Fit business means managing,
minimisingand ultimately eliminating our
Greenhouse Gas emissions (GHG).
•COVID-19 had a profound impact on operational
emissions in FY20. In the last quarter of the
reporting period, emissions across all business
units fell 68%.
•Given the impact of COVID-19 customer journey
emissions have continued to be reported
separately, however these will be integrated into
our Scope 1 emission in our next Annual
Integrated Report.
•Our FY20 carbon footprint has been
independently verified by McHugh & Shaw. It is
considered consistent with the mandatory
requirements of ISO14064-1:2006 with a 5%
materiality threshold, Limited Assurance.
•Our FY21 carbon footprint will be published in
our next Annual Integrated Report.
19.7% decrease on FY19
23.8% decrease on FY19
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Carbon footprint –FY20
41
Our operational carbon footprint includes:
•Scope 1 -Transport fuel used in our company cars and
fuel used in our sites (LPG, natural gas, diesel) excluding
customer journey.
•Scope 2 -Emissions associated with purchased
electricity.
•Scope 3 -Diesel used in leased Kiwi Experience coaches
and fuel used by staff commuting to work; air and taxi
travel; waste sent to landfill; motorhome maintenance
materials (replacement tyres and batteries, water and
wash chemicals).
Note: Operational carbon footprint excludes customer
journey emissions which are in Scope 1 but reported
separately.
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
42
Supporting Analysis
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O NF Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Income statement summary
43
$MFY21FY20VARVAR %
Sale of services 68.8 148.4 (79.6) (54%)
Sale of goods 137.0 59.1 77.9 132%
Total revenue 205.8 207.5 (1.6) (1%)
Costs 178.4 145.4 33.1 23%
EBITDA 27.3 62.1 (34.7) (56%)
Depreciation & Amortisation 25.5 31.1 (5.6) (18%)
EBIT 1.8 31.0 (29.2) (94%)
Interest(5.7) (6.6) 0.9 13%
Share of Joint Ventures 0.7 (5.9) 6.6 113%
Share of Associates 0.2 0.2 – –
Profit before taxation(2.9) 18.7 (21.7) (116%)
Taxation 1.2 (5.7) 6.8 120%
(Loss)/profit for the period(1.8) 13.1 (14.8) (114%)
(Loss)/profit is attributable to:
Equity holders of the Company(1.4) 13.1 (14.8) (111%)
Non-controlling interest(0.3) – – NA
Basic EPS (in cents)(1.0) 8.9
Diluted EPS(1.0) 8.6
6 Months to December
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O NF Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
$M
REVENUEDIVISIONAL
EBITDA
DIVISIONAL
EBIT
AVE FUNDS
EMPLOYED
OPERATING
CASHFLOW*
REVENUEDIVISIONAL
EBITDA
DIVISIONAL
EBIT
AVE FUNDS
EMPLOYED
OPERATING
CASHFLOW*
Rentals New Zealand 70.2 (0.7) (10.8) 138.8 25.5 66.3 18.2 7.5 155.4 (24.2)
Rentals Australia 29.9 5.0 (2.6) 61.1 12.5 45.3 17.1 8.6 83.0 (1.3)
Rentals USA 101.8 22.8 16.6 95.1 75.2 78.1 22.7 12.4 164.6 24.2
Tourism Group 2.6 0.7 (0.5) 18.7 (0.2) 17.8 5.5 4.3 20.6 5.8
Group Support Services/Other 1.3 (2.0) (2.4) 42.6 (7.6) – (1.4) (1.8) 4.4 (3.5)
Non-recurring Item 1.6 1.6 –
thl 100% owned entities 205.8 27.3 1.8 356.3 105.4 207.5 62.1 31.0 428.0 0.9
Joint Ventures 0.7 11.2 (5.9) 56.9
Associates 0.2 4.7 0.2 4.7
Group Total 205.8 27.3 2.8 372.3 105.4 207.5 207.5 25.3 489.6 0.9
6 Months to December 20206 Months to December 2019
Divisional summary
44
* Operating cash flow includes the sale and purchase of rental assets.
** Excludes the non-recurring item relating to the termination of the Mangere leases. See slide 3.
****
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O NF Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
EBITDA
45
EBITDA
$MFY21FY20VARVAR %
EBIT1.8 31.0 (29.2)(94%)
Add back non-cash items:
Depreciation 25.1 30.6 (5.5)(18%)
Amortisation0.4 0.5 (0.1)(15%)
EBITDA27.3 62.1 (34.7) (56%)
EBITDA
$MFY21FY20VARVAR %
EBIT before non-recurring item0.2 31.0 (30.8)(99%)
Add back non-cash items:
Depreciation 25.1 30.6 (5.5)(18%)
Amortisation0.4 0.5 (0.1)(15%)
EBITDA before non-recurring item25.7 62.1 (36.3) (59%)
6 Months to December
6 Months to December
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O NF Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Balance sheet
46
1
Calculated based on thlshares on issue at the relevant balance date.
Balance Sheet
As at
$MDEC 21DEC 20VAR
Equity311.6 314.9 (3.4)
Non current liabilities69.1 209.5 (140.5)
Current liabilities67.2 65.2 2.0
Lease liabilities (IFRS 16)69.6 80.5 (10.9)
Total source of funds517.4 670.1 (152.7)
Intangible assets and goodwill45.9 43.6 2.3
Retained interest in Togo Group19.6 0.0 19.6
Investments in associates and joint ventures15.2 58.1 (42.9)
Property, plant and equipment267.0 403.6 (136.6)
Right-of-use assets (IFRS 16)59.2 68.8 (9.7)
Current assets110.6 96.0 14.6
Total use of funds517.4 670.1 (152.7)
Net debt position (exclude IFRS 16 lease liabilities)22.0 181.0 (159.0)
Net tangible assets (NTA)265.6 271.3 (5.7)
NTA per share
1
$1.79$1.83
Book value of net assets per share
1
$2.10$2.13
Debt / debt + equity ratio (net of Intangibles)8%40%
Equity ratio (net of Intangibles)56%43%
AUD exchange rate at period end0.93840.9617
USD exchange rate at period end0.72270.6735
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O NF Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
Gain on vehicle sales and gross profit
47
6 Months to December
$MFY21FY20VARVAR %
Proceeds from sales of motorhome fleet122.251.071.2140%
Net book value of vehicles sold*104.244.359.8135%
Gain on sales of motorhome fleet before selling costs18.16.711.4171%
Vehicle sales costs (warranty only)1.00.40.5118%
Gain on sales of motorhome fleet after selling costs17.16.310.8173%
Gross profit on non-fleet vehicles, retail and accessory sales3.01.51.5100%
Reported gross profit*20.17.812.3159%
Total average gain on sale ($000) after selling costs9.68.21.418%
Fleet motorhomes sold (excl buybacks)*
AU272144 128 89%
NZ630269 361 134%
US869351 518 148%
Total fleet motorhomes sold (units), excl. buybacks1,771764 1,007 132%
Flex fleet sales on buy-backs excluded from aboveFY21FY20
AU-
180
Total fleet salesFY21FY20
AU272 324
NZ630 269
US869 351
1,771 944
* ‘H1 FY20 results above includes nine vehicles written off in that period with a total book value of $0.5M. Because in H1 FY21, the number and value
of vehicles written off has been greater than previous years due to the September 2020 Mangere fire, the impact of these write-offs has not been
included in H1 FY21 above. The book value of written off vehicles has instead been included in ‘Other income /(expenses), net’ in the income
statement.
F Y 1 9
F U L L Y E A R R E S U L T S
P R E S E N T A T I O N
48
F Y 2 1
I N T E R I MR E S U LT S
P R E S E N TAT I O N
F Y 2 1 I N T E R I M R E S U L T S P R E S E N T A T I O N
END
---
Dear Shareholders
The COVID-19 pandemic
and the impact of measures
taken in response to it have
been an immense event for
all tourism businesses.
In thl we challenge ourselves
constantly. Every month is
assessed to understand what
assumptions we got right,
which were wrong and why.
We are agile and responsive.
We retain our commitment to the
Future-Fit Business Benchmark. This
is not an optional “to do” item that can
be cast aside in tough times. It will
see that we survive and contribute to
society in the long-term and it guides
our daily operations and our
long-term decisions.
The language which most accurately
reflects where we are is as follows:
• We are delivering
• We are dynamic
• We are realistic
We are delivering. The USA result
was above the prior corresponding
period and reflects the acceleration
of our vehicle sales plans at excellent
margins.
We delivered a positive EBIT result for
thl of $1.8M (for the half) and achieved
total revenue of $206M, almost
equaling the prior corresponding
period result of $207M. That revenue
reflects a large change in mix from
rental and services revenue to vehicle
sales (which is lower margin than
rentals).
The half year result cannot be taken
as the run rate for the full year’s result
as the USA vehicle sales profit can’t
be repeated (we simply don’t have
the fleet to sell) and the New Zealand
and Australian businesses will have a
much greater loss in the second half
of the financial year due to seasonality.
We have reduced debt significantly, in
particular over the last six months. Net
debt is down $175M from its peak prior
to the pandemic.
We are dynamic in our marketing, our
product mix, and most importantly
in the changes we are making to
the business. We have the right
product and service delivery to lead
the industry again once international
borders open. We are utilising the
experience of our entire team to
create new opportunities for revenue
whilst protecting the recovery and
growth opportunities that lie ahead.
There is good energy throughout
the business.
We are realistic. We are constantly
testing our assumptions and different
scenarios to adapt the business to
reflect the latest information and
expectations. We are realistic about
the planned losses we will incur in the
second half of the financial year and
we are realistic about changes that
need to continue to occur in
the business.
We consider a range of scenarios
for the next three years and can see
that we have a balance sheet, and
depth of domestic business across
three countries that can position
thl as a leader in the market as
international tourism returns. The
strategic positioning of the business
is sound and we are able to continue
to explore opportunities for growth
and acquisitions under strict criteria.
We are in the right countries, we have
the right product mix (but will develop
it further) and we have a re-focused
digital strategy.
Our view on the market
and operating dynamics
There are a number of trends we
have observed and new business
norms that we are establishing. Our
expectations of these new norms are
summarised as follows:
• The USA market can work
reasonably well under a domestic
only scenario.
• The RV sales market is in a period of
high growth in all jurisdictions. This
category growth bodes well for the
rentals business once international
tourism returns.
• The domestic rentals business can
work well in Australia provided all
State borders are open.
• The New Zealand business is
unlikely to make an EBIT profit
while borders remain closed,
however there are opportunities for
growing aspects of the business to
capitalise on the domestic market.
• We are encouraged by the
growth in our retail and servicing
operations, the ongoing
growth in vehicle sales, and the
pipeline of growth for the Action
Manufacturing business.
• Domestic yields are stabilising
within each country (refer to our
Investor Presentation for detail).
• Utilisation within domestic rentals
remains at least 20% below what
is achievable in an international
market.
• Vehicle sale margins are in a range
that we are comfortable with for the
half and looking forward.
• We are investing in new fleet
for the 2022 calendar year.
Notwithstanding current market
conditions, we are experiencing
vehicle sales demand that provides
us with the ability to renew and
recycle fleet.
• We are experiencing supply issues
throughout the business and will
manage this disruption for the
coming 12 months.
We are now operating on the basis
that we will not see any substantive
international travel activity in the
2021 calendar year. We do hope to
see an appropriate Trans-Tasman
open border and easing of border
restrictions in Europe, USA and UK this
calendar year.
The manner in which we operate the
business and the decisions we make
today are critical to the long-term
positioning and success of thl. We
assess every capital decision against a
wide series of scenarios that exist for
the coming year. That capital discipline
has become a hallmark of thl.
In summary, thl is positioned well
to face uncertainty. The business is
clearly loss-making at present but
has the market position, people,
intellectual property, and product
to maximise the opportunity
presented by the re-opening of
international borders, whilst building
a new domestic business base in all
operating markets.
It is not an obligation to thank the
thl team, it is a pleasure to be able
to publicly reinforce the internal
messages. Thank you to everyone
for the passion shown in the past
period and the enthusiasm to deliver
regardless of what we face.
Grant Webster
CEO
Rob Campbell
Chair
CHAIR
|
CEO LETTER TO SHAREHOLDERS
FEBRUARY 2021
|
FY21 H1 RESULTS
Rob Campbell
Chair
Grant Webster
CEO
---
Tourism Holdings Limited
Interim consolidated financial statements
for the six months ended 31 December 2020
For and on behalf of the Board:
Rob Campbell
Chair of the Board
Rob Hamilton
Chair of the Audit Committee
25 February 2021
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
Tourism Holdings Limited
1
Consolidated income statement
For the six months ended 31 December 2020 (Unaudited)
Unaudited
6 months to
Unaudited
6 months to
Audited
12 months to
Dec 2020 Dec 2019 Jun 2020
Notes $000's $000's $000's
Sales of services
68,831 148,394 257,437
Sales of goods
136,997 59,058 143,493
Total revenue
205,828 207,452 400,930
Cost of sales
(116,890) (51,283) (125,502)
Gross profit
88,938 156,169 275,428
Administration expenses
(18,030) (24,875) (44,212)
Operating expenses
(75,659) (102,015) (185,685)
Other income(expense), net 2 6,582 1,722 3,080
Operating profit before financing costs*
1,831 31,001 48,611
Finance income
18 216 427
Finance expenses
(5,732) (6,816) (13,369)
Net finance costs
(5,714) (6,600) (12,942)
Share of profit/(loss) from associates 9 750 214 (376)
Share of profit/(loss) from joint ventures 8 210 (5,887) (9,151)
(Loss)/profit before tax
(2,923) 18,728 26,142
Income tax benefit/(expense) 3 1,155 (5,675) 1,214
(Loss)/profit for the period
(1,768) 13,053 27,356
(Loss)/profit is attributable to:
Equity holders of the Company
(1,433) 13,053 27,356
Non-controlling interests 9 (335) - -
(1,768) 13,053 27,356
Earnings per share from (loss)/profit attributable to the
equity holders of the Company during the period
Basic earnings per share (in cents)
(1.0) 8.9 18.6
Diluted earnings per share (in cents)
(1.0) 8.6 18.6
* The consolidated income statement includes one non-GAAP measure (that is, operating profit before financing
costs or "EBIT") which is not a defined term in New Zealand International Financial Reporting Standards (NZ
IFRS). The Directors and management believe that this non-GAAP financial measure provides useful information
to assist readers in understanding the Group's financial performance. This measure should not be viewed in
isolation and is intended to supplement the NZ GAAP measures, therefore may not be comparable to similarly
titled amounts reported by other companies.
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
Tourism Holdings Limited
2
Consolidated statement of comprehensive income
For the six months ended 31 December 2020 (Unaudited)
Unaudited
6 months to
Unaudited
6 months to
Audited
12 months to
Dec 2020 Dec 2019 Jun 2020
Notes $000's $000's $000's
(Loss)/profit for the period
(1,768) 13,053 27,356
Other comprehensive income
Items that may be reclassified subsequently to profit or
loss
Foreign currency translation reserve movement (net of
tax) 16 (12,581) (617) (2,624)
Cash flow hedge reserve movement (net of tax)
1,699 626 (2,212)
Other comprehensive (loss)/ income for the period
net of tax
(10,882) 9 (4,836)
Total comprehensive income for the period
attributable to equity holders of the Company
(12,650) 13,062 22,520
Total comprehensive income for the period is
attributable to:
Equity holders of the Company
(12,315) 13,062 22,520
Non-controlling interests
(335) - -
(12,650) 13,062 22,520
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
Tourism Holdings Limited
3
Consolidated statement of changes in equity
For the six months ended 31 December 2020 (Unaudited)
Share
capital
Retained
earnings
Cash flow
hedge
reserve
Other
reserves
Non-
controlling
interests
Total
equity
Notes
$000's $000's $000's $000's $000's $000's
Opening balance as at 1 July
2020
269,988 55,815 (6,695) 5,991 - 325,099
Comprehensive income
Net profit for the six months
ended 31 December 2020
- (1,433) - - (335) (1,768)
Other comprehensive income
Cash flow hedge reserve
movement (net of tax)
- - 1,699 - - 1,699
Foreign currency translation
reserve movement (net of tax) 16 - - - (12,581) - (12,581)
Total comprehensive income
- (1,433) 1,699 (12,581) (335) (12,650)
Transactions with owners
Issue of ordinary shares (net of
issue costs) 10 78 - - - - 78
Non-controlling interests arising
on a business combination 9 - - - - (2,020) (2,020)
Transfer from employee share
scheme reserve
- 147 - (147) - -
Employee share scheme reserve
- - - 1,039 - 1,039
Total transactions with owners
78 147 - 892 (2,020) (903)
Closing balance as at 31
December 2020
270,066 54,529 (4,996) (5,698) (2,355) 311,546
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
Tourism Holdings Limited
4
Consolidated statement of changes in equity (continued)
For the six months ended 31 December 2019 (Unaudited)
Share
capital
Retained
earnings
Cash flow
hedge
reserve
Other
reserves
Non-
controlling
interests
Total
equity
Notes
$000's $000's $000's $000's $000's $000's
Opening balance as at 1 July
2019
217,012 56,176 (4,483) 8,312 - 277,017
Adjustment on adoption of NZ
IFRS 16 (net of tax)
- (7,622) - - - (7,622)
As at 1 July 2019 (restated)
217,012 48,554 (4,483) 8,312 - 269,395
Comprehensive income
Net profit for the six months ended
31 December 2019
- 13,053 - - - 13,053
Other comprehensive income
Cash flow hedge reserve
movement (net of tax)
- - 626 - - 626
Foreign currency translation
reserve movement (net of tax) 16 - - - (617) - (617)
Total comprehensive income
- 13,053 626 (617) - 13,062
Transactions with owners
Dividends on ordinary shares 4 - (20,567) - - - (20,567)
Issue of ordinary shares (net of
issue costs) 10 52,835 - - - - 52,835
Transfer from employee share
scheme reserve
75 (4) - (71) - -
Employee share scheme reserve
- - - 181 - 181
Total transactions with owners
52,910 (20,571) - 110 - 32,449
Closing balance as at 31
December 2019
269,922 41,036 (3,857) 7,805 - 314,906
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
Tourism Holdings Limited
5
Consolidated statement of changes in equity (continued)
For the year ended 30 June 2020 (Audited)
Share
capital
Retained
earnings
Cash flow
hedge
reserve
Other
reserves
Non-
controlling
interests
Total
equity
Notes
$000's $000's $000's $000's $000's $000's
Opening balance as at 1 July
2019
217,012 56,176 (4,483) 8,312 - 277,017
Adjustment on adoption of NZ
IFRS 16 (net of tax)
- (7,150) - - - (7,150)
As at 1 July 2019 (restated)
217,012 49,026 (4,483) 8,312 - 269,867
Comprehensive income
Net profit for the year ended 30
June 2020
- 27,356 - - - 27,356
Other comprehensive income
Cash flow hedge reserve
movement (net of tax)
- - (2,212) - - (2,212)
Transfer foreign currency gain to
income statement in relation to
Togo transaction
- - - (9,066) - (9,066)
Foreign currency translation
reserve movement (net of tax) 16 - - - 6,442 - 6,442
Total comprehensive income
- 27,356 (2,212) (2,624) - 22,520
Transactions with owners
Dividends on ordinary shares 4 - (20,567) - - - (20,567)
Issue of ordinary shares (net of
issue costs) 10 52,904 - - - - 52,904
Transfer from employee share
scheme reserve
72 - - (72) - -
Employee share scheme reserve
- - - 375 - 375
Total transactions with owners
52,976 (20,567) - 303 - 32,712
Closing balance as at 30 June
2020
269,988 55,815 (6,695) 5,991 - 325,099
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
Tourism Holdings Limited
6
Consolidated statement of financial position
As at 31 December 2020 (Unaudited)
Unaudited
Dec 2020
Unaudited
Dec 2019
Audited
Jun 2020
Notes $000's $000's $000's
Assets
Non-current assets
Property, plant and equipment 5 266,966 403,596 359,717
Right-of-use assets 6 59,159 68,820 69,562
Intangible assets
45,931 43,612 50,267
Financial asset recognised at fair value through the
income statement 13 19,566 - 21,382
Investments in joint ventures 8 10,434 45,274 10,224
Investments in associates 9 4,747 4,691 4,044
Advance to joint venture
- 8,100 125
Deferred tax assets
- - 1,656
Total non-current assets
406,803 574,093 516,977
Current assets
Cash and cash equivalents
51,266 5,713 35,514
Trade and other receivables
22,086 31,467 28,930
Inventories
33,860 55,244 68,487
Advance to joint ventures 8 401 894 530
Current tax receivables
3,009 2,628 3,108
Derivative financial instruments 13 - 101 6
Total current assets
110,622 96,047 136,575
Total assets
517,425 670,140 653,552
Equity
Share capital 10 270,066 269,922 269,988
Other reserves
(5,698) 7,805 5,991
Cash flow hedge reserve
(4,996) (3,857) (6,695)
Retained earnings
54,529 41,036 55,815
Non-controlling interests
(2,355) - -
Total equity
311,546 314,906 325,099
Liabilities
Non-current liabilities
Interest-bearing loans and borrowings 11 50,433 186,681 163,322
Derivative financial instruments 13 7,181 5,228 9,193
Lease liabilities
62,373 74,286 74,567
Deferred income tax liability
11,465 17,636 11,886
Total non-current liabilities
131,452 283,831 258,968
Current liabilities
Interest-bearing loans and borrowings 11 22,850 7 -
Trade and other payables
23,443 26,153 37,001
Revenue in advance
11,750 25,552 12,192
Employee benefits
6,450 7,339 7,214
Derivative financial instruments 13 135 217 110
Lease liabilities
7,184 6,200 7,304
Current tax liabilities
2,615 5,935 5,664
Total current liabilities
74,427 71,403 69,485
Total liabilities
205,879 355,234 328,453
Total equity and liabilities
517,425 670,140 653,552
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
Tourism Holdings Limited
7
Consolidated statement of cash flows
For the six months ended 31 December 2020 (Unaudited)
Unaudited
6 months to
Unaudited
6 months to
Audited
12 months to
Dec 2020 Dec 2019 Jun 2020
Notes $000's $000's $000's
Cash flows from operating activities
Receipts from sale of services
83,616 150,550 248,752
Proceeds from sale of goods
133,242 59,058 143,493
Interest received
18 60 212
Payments to suppliers and employees
(74,369) (112,681) (193,510)
Purchase of rental assets
(32,171) (81,032) (108,790)
Interest paid
(5,555) (6,770) (13,584)
Taxation paid
(64) (8,247) (7,484)
Proceeds from insurance recoveries (Mangere fire) 14 717 - -
Net cash flows from operating activities
105,434 938 69,089
Cash flows from investing activities
Sale of property, plant and equipment 5 110 10 126
Advance to joint ventures
- (7,783) (11,945)
Receipts from joint ventures 8 254 250 1,000
Purchase of property, plant and equipment 5 (246) (1,808) (4,125)
Purchase of intangibles
(2,261) - (432)
Net cash paid as part of the step acquisition of Outdoria
(373) - -
Net cash used in investing activities
(2,516) (9,331) (15,376)
Cash flows from financing activities
Payment for lease liability principal (3,643) (3,143) (6,442)
Proceeds from borrowings 11 12,251 66,075 101,150
Repayments of borrowings 11 (92,519) (89,528) (153,938)
Dividends paid 4 - (17,373) (17,373)
Proceeds from share issue (net of issue costs) 10 - 49,281 49,280
Net cash flows (used in)/from financing activities
(83,911) 5,312 (27,323)
Net increase/(decrease) in cash and cash equivalents
19,007 (3,081) 26,390
Opening cash and cash equivalents
35,514 8,837 8,837
Exchange (loss)/gain on cash and cash equivalents
(3,255) (43) 287
Closing cash and cash equivalents
51,266 5,713 35,514
Tourism Holdings Limited
8
Notes to the interim consolidated financial statements
About this report 9
Section A - Financial performance 10
1. Segment note 10
2. Other income(expense), net 12
3. Income tax expense 12
4. Dividends 12
Section B - Assets used to generate profit 13
5. Property, plant and equipment acquired and sold during the six month period 13
6. Leased assets 14
7. Capital commitment 14
Section C - Investments 15
8. Joint ventures 15
9. Investments in associates 16
Section D - Managing funding 17
10. Share capital 17
11. Borrowings 17
12. Seasonality of business 18
13. Financial risk management 18
Section E - Other 19
14. Fire in Mangere, Auckland 19
15. Related party transactions 19
16. Foreign currency translation reserve 21
17. Contingencies 21
18. Events after the reporting period 21
Tourism Holdings Limited
9
Notes to the interim consolidated financial statements
About this report
Basis of preparation
The primary operations of Tourism Holdings Limited (the ‘Company' or ‘Parent’ or ‘thl’) and its subsidiaries
(together ‘the Group’) are the manufacture, rental and sale of motorhomes and other tourism related activities.
The Parent is domiciled in New Zealand. The registered office is Level 1, 83 Beach Road, Auckland 1010, New
Zealand. Tourism Holdings Limited is a company registered under the Companies Act 1993 and is an FMC
reporting entity under Part 7 of the Financial Markets Conduct Act 2013.
The interim consolidated financial statements of the Group have been prepared:
• in accordance with Generally Accepted Accounting Practice in New Zealand (NZ GAAP). They comply with NZ
IAS 34 Interim Financial Reporting and consequently do not include all the information required for full financial
statements. These condensed interim consolidated financial statements should be read in conjunction with the
annual report for the year ended 30 June 2020;
• in accordance with the requirements of Part 7 of the Financial Markets Conduct Act 2013 and the NZX Listing
Rules;
• under the historical cost convention, as modified by the revaluation of certain assets and liabilities as identified
in specific accounting policies; and
• in New Zealand dollars with values rounded to thousands ($000's) unless otherwise stated.
These condensed interim consolidated financial statements were approved for issue on 25 February 2021.
These condensed interim consolidated financial statements have not been audited.
Critical accounting estimates and judgement
The preparation of interim consolidated financial statements requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets
and liabilities, income and expense. Actual results may differ from these estimates.
The estimates used in the preparation of these interim consolidated financial statements are consistent with
those used in the 30 June 2020 annual financial statements.
Changes in accounting policies
The accounting policies used in the preparation of these interim consolidated financial statements are consistent
with those used in the 30 June 2020 annual financial statements.
Tourism Holdings Limited
10
Notes to the interim consolidated financial statements
Section A - Financial Performance
In this section:
This section explains the financial performance of thl, providing additional information about individual items in
the income statement, including segmental information, certain expenses and dividend distribution information.
1. Segment note
The operating segments of thl are reported from a geographic and service type perspective. They are made up
of the following business operations:
• New Zealand Rentals - Rental of maui, Britz and Mighty motorhomes, and the sale of motorhomes;
• Tourism Group - Kiwi Experience and the Discover Waitomo Caves Group experiences;
• Australia Rentals - Rental of maui, Britz and Mighty motorhomes and 4WD vehicles, and the sale of
motorhomes;
• United States Rentals - Rental and sale of Road Bear, Britz, Mighty and El Monte RVs and;
• Other - includes Group Support Services and thl digital. thl digital includes Mighway, SHAREaCAMPER, Togo
Fleet and thl's investment in Outdoria. The joint venture and associate are also included in this category.
Six months ended 31 December
2020
NZ
Rentals
NZ
Tourism
Group
Australia
Rentals
United
States
Rentals Other Total
$000's $000's $000's $000's $000's $000's
Sales of services 14,626 2,620 14,001 36,238 1,346 68,831
Sales of goods 55,565 - 15,874 65,558 - 136,997
Revenue from external
customers
70,191 2,620 29,875 101,796 1,346 205,828
Depreciation (10,099) (813) (7,631) (6,132) (400) (25,075)
Asset impairment - (46) - - - (46)
Amortisation (4) (335) (22) (55) (20) (436)
Other costs (69,316) (1,923) (24,840) (79,032) (3,329) (178,440)
Operating profit/(loss) before
interest and tax
(9,228) (497) (2,618) 16,577 (2,403) 1,831
Interest income - - 1 - 17 18
Interest expense (383) (40) (578) (1,597) (3,134) (5,732)
Share of profit/(loss) from joint
ventures and associates - - - - 960 960
Operating profit/(loss) before tax
(9,611) (537) (3,195) 14,980 (4,560) (2,923)
Taxation 2,691 68 958 (3,770) 1,208 1,155
Operating profit/(loss) - after
interest and tax
(6,920) (469) (2,237) 11,210 (3,352) (1,768)
Capital expenditure
2,297 65 6,276 469 2,154 11,261
Total non-current assets
134,332 20,328 88,142 114,465 49,536 406,803
Total assets
165,823 21,404 111,902 162,172 56,124 517,425
Giant white space
Net funds employed
124,103 16,583 55,397 71,884 65,595 333,562
Tourism Holdings Limited
11
Notes to the interim consolidated financial statements
1. Segment note (continued)
Six months ended 31 December
2019
NZ
Rentals
NZ
Tourism
Group
Australia
Rentals
United
States
Rentals Other Total
$000's $000's $000's $000's $000's $000's
Sales of services 40,498 17,785 37,706 52,405 - 148,394
Sales of goods 25,808 - 7,578 25,672 - 59,058
Revenue from external customers
66,306 17,785 45,284 78,077 - 207,452
Depreciation (10,739) (813) (8,440) (10,333) (249) (30,574)
Amortisation (4) (339) (16) (14) (139) (512)
Other costs (48,075) (12,316) (28,227) (55,342) (1,405) (145,365)
Operating profit/(loss) before
interest and tax
7,488 4,317 8,601 12,388 (1,793) 31,001
Interest income - - - 5 211 216
Interest expense (535) (47) (752) (2,634) (2,848) (6,816)
Share of profit/(loss) from joint
ventures and associates - - - - (5,673) (5,673)
Operating profit/(loss) before tax
6,953 4,270 7,849 9,759 (10,103) 18,728
Taxation (1,948) (1,265) (2,355) (2,636) 2,529 (5,675)
Operating profit/(loss) - after
interest and tax
5,005 3,005 5,494 7,123 (7,574) 13,053
Capital expenditure
39,194 727 17,509 3,796 277 61,503
Total non-current assets
197,167 25,061 105,273 186,206 60,386 574,093
Total assets
231,000 28,822 127,910 217,864 64,544 670,140
Big white space
Net funds employed
176,479 19,801 76,274 165,073 58,254 495,881
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker (CODM). The CODM, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the executive management team together with
the Board of Directors, who together make strategic decisions.
Operating profit/(loss) before interest and tax is the main financial measure used by the CODM to review the
Group’s performance.
Inter-segment transactions such as Group Support Services recharges are entered into under normal commercial
terms and conditions that would also be available to unrelated third parties. All revenue is reported to the
executive team on a basis consistent with that used in the income statement. Segment assets and liabilities are
measured in the same way as in the financial statements. These assets and liabilities are allocated based on the
operations of the segment and the physical location for assets.
Segment assets consist primarily of property, plant and equipment, intangible assets, inventories, receivables
and operating cash. The investments and derivatives designated as hedges of borrowings are allocated to “Other
segment’. Net funds employed are non-GAAP measures that are not defined in NZ IFRS. The Directors and
management believe that these non-GAAP financial measures provide useful information to assist readers in
understanding the Group’s financial performance. These measures should not be viewed in isolation and are
intended to supplement the NZ GAAP measures, therefore may not be comparable to similarly titled amounts
reported by other companies. The net funds employed are segment total assets less segment non-interest-
bearing liabilities and cash on hand. The lease liability as a result of NZ IFRS 16 is not considered to be part of
funds employed.
Tourism Holdings Limited
12
Notes to the interim consolidated financial statements
2. Other income(expense), net
6 months to
31 Dec 2020
6 months to
31 Dec 2019
12 months to
30 Jun 2020
$000's $000's $000's
Gain/(loss) on disposal of non fleet assets (602) (99) (110)
Fair value movements on financial assets recognised at fair value
through profit or loss 561 - -
Proceeds from insurance recoveries 2,474 - -
Write-off of fleet items (1,114) - -
Accounting gain on exiting Mangere branch 1,621 - -
US PPP loan forgiveness 1,476 - -
Loss on Togo exit transaction - - (8,383)
Foreign currency translation gain on Togo exit transaction - - 9,066
Other 2,166 1,821 2,507
6,582 1,722 3,080
3. Income tax expense
Income tax expense is recognised based on management's estimate of the weighted average annual income tax
rate expected for the full financial year.
4. Dividends
During the six months ended 31 December 2020 the Group paid no dividends. The 2019 final dividend paid in the
year ended 30 June 2020 was $20,567k (14 cents per share).
Tourism Holdings Limited
13
Notes to the interim consolidated financial statements
Section B - Assets used to generate profit
In this section:
This section describes the assets thl uses in the business to generate profit, including:
• Property, plant and equipment
The most significant component is the motorhome fleet. Premises, in general, are leased, however significant
buildings are the Waitomo Caves Visitor Centre and the Waitomo Caves Homestead.
• Leased assets
The most significant leased assets relate to the premises in New Zealand, Australia and the United States.
5. Property, plant and equipment acquired and sold during the six month period
Motorhomes
Other
property,
plant and
equipment
Capital
work in
progress Total
$000's $000's $000's $000's
Six months ended 31 December 2020
Opening net book amount 376,848 20,439 16,000 413,287
Additions and transfers from work in progress, (net) 20,541 464 (9,744) 11,261
Disposals (95,516) (684) - (96,200)
Exchange differences (17,621) (183) (2) (17,806)
Depreciation charge (19,427) (1,751) - (21,178)
Closing net book amount 264,825 18,285 6,254 289,364
As at 31 December 2020
Cost 359,454 50,590 6,254 416,298
Accumulated depreciation (94,629) (32,305) - (126,934)
Net book amount 264,825 18,285 6,254 289,364
Reclassification of motorhomes to inventory at balance
date
Cost 31,172 - - 31,172
Accumulated depreciation (8,774) - - (8,774)
Net book amount 22,398 - - 22,398
Closing net book amount post reclassification 242,427 18,285 6,254 266,966
Six months ended 31 December 2019
Opening net book amount 401,396 21,265 26,717 449,378
Additions and transfers from work in progress, (net) 72,693 1,010 (12,200) 61,503
Disposals (43,242) (112) - (43,354)
Exchange differences (1,175) (17) (4) (1,196)
Depreciation charge (24,818) (2,109) - (26,927)
Closing net book amount
404,854 20,037 14,513 439,404
As at 31 December 2019
Cost 516,475 50,354 14,513 581,342
Accumulated depreciation (111,621) (30,317) - (141,938)
Net book amount 404,854 20,037 14,513 439,404
Reclassification of motorhomes to inventory at balance
date
Cost 49,248 - - 49,248
Accumulated depreciation (13,440) - - (13,440)
Net book amount 35,808 - - 35,808
Closing net book amount post reclassification 369,046 20,037 14,513 403,596
Tourism Holdings Limited
14
Notes to the interim consolidated financial statements
6. Leased assets
During the six months ended 31 December 2020, the Group had leased asset additions and modifications of
$4.1M and the Group has disposed or reduced the right-of-use asset by $6.8M.
7. Capital commitment
Capital commitments relates to the build of the Group's fleet for the following year.
Capital expenditure contracted for at balance date but not yet incurred is as follows:
Dec 2020 Dec 2019 Jun 2020
$000's $000's $000's
Property, plant and equipment 139,473 122,016 27,160
Tourism Holdings Limited
15
Notes to the interim consolidated financial statements
Section C - Investments
In this section:
thl's investments comprise subsidiaries, associates and a joint venture. This section explains the investments
held by thl, providing additional information, including:
a) Accounting policies, judgements and estimates that are relevant for measuring the investments; and
b) Analysis of thl's associates and joint venture.
thl’s investments include a 50% interest in AMLP, a business that manufactures motorhomes for the Group’s
New Zealand and Australian business segments and other speciality vehicles for external customers. thl
previously had a 50% joint venture investment in Togo Group which was disposed of in March 2020. Other
investment is a 49% interest in Just go, a motorhome rental operation in the United Kingdom.
8. Joint venture
Action Manufacturing LP (AMLP)
thl has a 50% joint venture partner in AMLP, a vehicle manufacturer based in New Zealand. The other 50%
partner is Alpine Bird Manufacturing Limited, which is owned by Grant Brady (refer to note 15). Due to the nature
of the contractual rights and obligations, AMLP is classified as a joint venture for accounting purposes and
accounted for using the equity method.
AMLP manufactures motorhomes for the Group’s New Zealand and Australian business segments, and other
speciality vehicles for external customers.
The Group's recognised interest in AMLP
The following table sets out the Group’s interest in AMLP:
Dec 2020 Dec 2019 Jun 2020
$000's $000's $000's
Investment in AMLP, beginning balance 10,224 8,797 8,797
Share of profits recognised against the investment balance during
the year 210 1,414 1,427
Net investment recognised 10,434 10,211 10,224
Advance opening balance 655 1,144 1,144
Net cash advances/(repayment) during the year (254) (263) (489)
Advance closing balance 401 881 655
Net interest in AMLP 10,835 11,092 10,879
Dec 2020 Dec 2019 Jun 2020
$000's $000's $000's
Non-current 10,434 10,586 10,349
Current 401 506 530
10,835 11,092 10,879
Tourism Holdings Limited
16
Notes to the interim consolidated financial statements
9. Investments in associate
The share of profits/(losses) recognised in the income statement are as follows:
6 months to 6 months to 12 months to
31 Dec 2020 31 Dec 2019 30 Jun 2020
$000's $000's $000's
Just go 791 214 (376)
Outdoria (up to 31 July 2020) (41) - -
Total 750 214 (376)
Just go
In March 2015, the Group acquired a shareholding of 49.0% in Skewbald Limited (trading as Just go) for GBP
£1,744k. Just go is a motorhome rental business operating in the United Kingdom. The investment has been
accounted for as an investment in associate and the Group's share of associates profits have been recognised
with the Group's investment.
The carrying amounts recognised in the balance sheet are as follows:
Dec 2020 Dec 2019 Jun 2020
$000's $000's $000's
Just go 4,747 4,691 4,044
Outdoria
thl initially acquired an interest in Outdoria Pty Limited (Outdoria) indirectly through its 50% shareholdings in
TH2Connect, LLC and TH2Connect LP ("Togo Group"). As part of the thl partial exit from Togo Group in March
2020, thl acquired 100% of the shareholding in TH2connect LP, which included its 46% shareholding in Outdoria.
The investment in Outdoria was accounted under the equity method in accordance with NZ IAS 28 Investments
in Associates and Joint Ventures.
On 31 July 2020, Outdoria bought back 18.2% of the shares which resulted in an increase in thl's shareholding to
59.73%. The Group recognised $41k of losses from Outdoria in the income statement for the month ended 31
July 2020. From that point onwards, the investment in Outdoria has been consolidated in TH2Connect LP, and
ultimately in thl's group financial statements under NZ IFRS 10 Consolidated Financial Statements. For the six
months ended 31 December, the Group has recognised losses of $335k related to Non-controlling interests (NCI)
in the income statement.
In accordance with NZ IFRS 3 Business Combinations, a preliminary assessment was performed to measure
Outdoria's identifiable assets and liabilities and contingent liabilities at fair value on 1 August 2020. As a result,
thl recognised $(2.0)M NCI on an acquisition-by-acquisition basis at the NCI’s proportionate share of Outdoria’s
net identifiable liabilities, and $659k of goodwill at the Group level.
Tourism Holdings Limited
17
Notes to the interim consolidated financial statements
Section D - Managing Funding
In this section:
This section summarises thl's funding sources and financial risks.
10.
Share capital
Dec 2020 Dec 2019 Jun 2020
$000's $000's $000's
Ordinary shares
Opening balance 269,988 217,012 217,012
Issue of ordinary shares – redeemable ordinary shares converted - 654 658
Transfer from employee share scheme reserve for redeemable
shares converted - 75 72
Issue of ordinary shares – in lieu of Directors’ fees 57 82 160
Ordinary shares to be issued – in lieu of Directors’ fees accrued 21 (11) (24)
Ordinary shares Issued under Dividend Reinvestment Plan - 3,484 3,484
Less transaction costs arising on shares issued - (1,243) (1,243)
Ordinary shares Issued - rights offer - 49,869 49,869
Closing balance 270,066 269,922 269,988
In June 2019, the Group announced a placement and pro rata rights offer capital raise. The capital raise
comprised an upfront placement of $30M to HB Holdings (a wholly owned subsidiary of the CITIC Capital
International Tourism Fund), issuing an additional 7,462,686 shares at a price of $4.02 per share, which settled
on 24 June 2019, followed by an approximately $50M fully underwritten pro rata 1 for 9 rights offer at $3.40 per
share, which settled in July 2019 resulting in the issuance of an additional 14,667,436 shares. Incremental
directly attributable issue costs of $233k were incurred from the placement and have been netted off against the
proceeds of the capital raising at 30 June 2019. Incremental directly attributable issue costs of $1.243M were
incurred from the rights offer that was settled in July 2019.
11. Borrowings
Dec 2020 Dec 2019 Jun 2020
$000's $000's $000's
Non-current 50,433 186,681 163,322
Current 22,850 7 -
73,283 186,688 163,322
Dec 2020 Dec 2019 Jun 2020
$000's $000's $000's
The Group has the following undrawn borrowing facilities:
Expiring within one year 20,173 50,000 -
Expiring beyond one year 105,248 66,911 49,858
125,421 116,911 49,858
The Group has sufficient working capital and undrawn financing facilities to service its operating activities and
ongoing investment in rental motorhomes. The Group has met all banking covenant requirements in the current
period.
Tourism Holdings Limited
18
Notes to the interim consolidated financial statements
12. Seasonality of business
The tourism industry is subject to seasonal fluctuations with peak demand for tourism attractions and
transportation over the summer months. The operating revenue and profits of the Group’s segments are
disclosed in note 1. New Zealand and Australia’s profits are typically generated over the southern hemisphere
summer months and the United States of America’s profits are typically generated over the northern hemisphere
summer months. Due to the seasonal nature of the businesses, the risk profile at 31 December 2020 is not
representative of all risks faced during the year.
13. Financial risk management
The carrying amount of financial assets and financial liabilities recorded in the financial statements approximates
their fair values:
• Derivative financial instruments are carried at fair value as discussed below.
• Receivables and payables are short term in nature and therefore approximate fair value.
• Interest bearing liabilities re-price at least every 90 days and therefore approximate fair value.
Financial instruments of the Group that are measured in the statement of financial position at fair value are
classified by level under the following fair value measurement hierarchy:
Level 1
Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2
Inputs other than quoted prices included within level 1 that are observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices).
Level 3
Inputs for the asset or liability that are not based on observable market data (that is, unobservable
inputs).
There were no changes to these valuation techniques during the period. There were no transfers of derivative
financial instruments between levels of the fair value hierarchy during the period.
Recurring fair value measurements
The following financial instruments are subject to recurring fair value measurements:
Dec 2020 Dec 2019 Jun 2020
Assets Liabilities Assets Liabilities Assets Liabilities
$000's $000's $000's $000's $000's $000's
Derivative financial
instruments (Level 2) - 7,316 101 5,445 6 9,303
Retained interest in Togo
Group (Level 3) 19,566 - - - 21,382 -
Tourism Holdings Limited
19
Notes to the interim consolidated financial statements
Section E - Other
In this section:
This section includes the remaining information relating to thl’s financial statements which is required to comply
with financial reporting standards.
14. Fire in Mangere, Auckland
On 3 September 2020, a fire broke out at the Mangere rental branch in Auckland. As a result of the fire, the
Mangere branch is unusable and a new branch has been established to enable the continuation of normal rental
operations. The Mangere branch is a leased premise. The Group has insurance policies in relation to business
interruption, material damages and rental vehicles. The insurer has confirmed the acceptance of the claim and all
significant costs associated with the fire are expected to be fully covered.
Insurance proceeds to cover the assets that were written off and damaged as a result of the fire have been
recognised as income. Insurance proceeds for other costs incurred (business interruption costs and other
ongoing costs as a result of the fire) are recognised as income when the costs are incurred.
The Group has recognised the following expenses and insurance recoveries for the six months ended 31
December 2020:
6 months to
31 Dec 2020
$000's
Insurance recoveries received 717
Insurance recoveries receivable 1,757
Book value of leasehold improvements and inventories written off (1,116)
Rental vehicles written off (11 motorhomes)* (668)
Cost of repair to damaged rental vehicles (65)
Other ongoing costs incurred (566)
Net profit before tax impact 59
* In the financial statements for the year ended 30 June 2020, 19 motorhomes were categorised by the loss
adjuster as destroyed due to their positioning within the building. This has since been assessed and 8
motorhomes have been re-categorised to economically viable to repair.
15.
Related party transactions
Key management compensation
6 months to 6 months to 12 months to
31 Dec 2020 31 Dec 2019 30 Jun 2020
$000's $000's $000's
Salaries and other short term employee benefits 1,837 2,676 4,461
Share based payments benefits 525 181 375
Total positions included in the executive team are 15 (31 December 2019: 15; 30 June 2020: 15).
Executive management do not receive any directors’ fees as directors of subsidiary companies.
Tourism Holdings Limited
20
Notes to the interim consolidated financial statements
15. Related party transactions (continued)
Directors’ fees (shares issued in lieu of cash)
At the 2013 annual meeting of shareholders, shareholder approval was obtained for thl to issue shares in whole
or in part payment of directors’ remuneration. Currently, Rob Campbell and Rob Hamilton have elected to receive
50% of their director fees in shares, and Debbie Birch has elected to receive 33% of her director fees in shares.
Shares issued in lieu of directors' fees are as follows:
6 months to 6 months to 12 months to
31 Dec 2020 31 Dec 2019 30 Jun 2020
No. of shares issued in lieu of cash (000's) 26 14 80
Value of shares issued in lieu of cash ($000's) 57 82 160
Accrued value of shares yet to be issued in lieu of cash ($000's) 42 34 21
Grant Brady (Managing Director of AMLP)
Grant Brady, Managing Director of AMLP, is a minority shareholder and Director of Bush Road Enterprises
Limited. thl subleases a property in Bush Road which is owned by Bush Road Enterprises Limited. The amount
of the lease payments are set out in the table below:
6 months to 6 months to 12 months to
31 Dec 2020 31 Dec 2019 30 Jun 2020
$000's $000's $000's
Total lease payments 222 247 486
Action Manufacturing LP
Grant Brady is a shareholder in another entity, Alpine Bird Manufacturing Limited, which owns 50% of Action
Manufacturing Limited Partnership (“AMLP”) that was set up in March 2012. AMLP manufactures the
motorhomes and campervans used by Rentals New Zealand, manufactures motorhomes and parts for Rentals
Australia, and manufactures specialty vehicles for external customers. Pricing is based on the cost of
manufacture plus an agreed margin set out in the Limited Partnership Agreement. During the year, the Group
sold certain ex-rental vehicles to AMLP to repurpose and resell. AMLP also subleases part of the Bush Road
property described above.
6 months to 6 months to 12 months to
31 Dec 2020 31 Dec 2019 30 Jun 2020
$000's $000's $000's
Purchase of motorhomes by the Group from the joint venture 10,023 30,481 44,171
Sales of vehicles by the Group to the joint venture 478 788 1,177
Interest charged to the joint venture 10 24 37
Net interest in Action Manufacturing LP (note 8) 10,835 11,092 10,879
Management of Mighway vehicles 7
-
5
At 30 June 2020, $14,429k (June 2019:$10,689k) was outstanding under a Documentary Letter of Credit in
favour of AMLP. This amount is included in the purchase of motorhomes shown above, and the outstanding
amount is included in ‘trade and other payables’. At 31 December 2020 and 31 December 2019 the amounts
outstanding were nil.
Cathy Quinn
Cathy Quinn was appointed to the Board of Directors in September 2017. Cathy is a consultant and former
partner at MinterEllisonRuddWatts (MinterEllison). MinterEllison has provided legal services to thl. The amounts
paid for the legal services are set out in the table below:
6 months to
31 Dec 2020
6 months to
31 Dec 2019
12 months to
30 Jun 2020
$000's $000's $000's
Legal services 32 185 577
Tourism Holdings Limited
21
Notes to the interim consolidated financial statements
15. Related party transactions (continued)
Just go
During the six months ended 31 December 2020, the Group did not purchase motorhomes from Just go (six
months ended December 2019: $13,057k; year ended 30 June 2020: $13,096k).
Schork Family
As part of the consideration for the acquisition of El Monte Rents Inc in December 2016, the Group issued
3,384,266 ordinary shares to entities associated with the Schork family. An entity associated with the Schork
family provides warranties to customers of El Monte Rents Inc - the total amount paid by customers during the six
months ended 31 December 2020 was $305k (six months ended 31 December 2019: $133k, year ended 30 June
2020: $300k). At the time of the acquisition, the Group entered into a number of property lease agreements with
entities associated with the Schork family. The leases are in relation to branches used by El Monte RV. The cost
of the leases are set out in the table below:
6 months to
31 Dec 2020
6 months to
31 Dec 2019
6 months to
30 Jun 2020
$000's $000's $000's
Total lease payments 1,557 1,727 3,226
16. Foreign currency translation reserve
Exchange differences arising on the translation of foreign operations are taken to the foreign currency translation
reserve. When any net investment is disposed of, the related component of the reserve is recognised in the
income statement as part of the gain or loss on disposal.
The closing exchange rates used to translate the balance sheet are as follows:
Dec 2020 Dec 2019 Jun 2020
NZD/AUD 0.9384 0.9617 0.9340
NZD/USD 0.7227 0.6735 0.6426
NZD/GBP 0.5297 0.5136 0.5220
17. Contingencies
As at 31 December 2020, other than bank guarantees, which are predominantly in lieu of bonds paid relating to
leased assets, the Group has no material contingent liabilities.
18. Events after the reporting period
Action Manufacturing LP
thl has a 50% shareholding in Action Manufacturing LP (AMLP). The investment is classified as a joint venture
for accounting purposes and accounted for using the equity method. The carrying value of thl’s investment in
AMLP as at 31 December 2020 was $10.8M (refer to note 8). On 25 February 2021, thl signed an agreement to
purchase the remaining 50% shareholding from Alpine Bird Manufacturing Limited for $9M. The transaction is
expected to settle in March 2021 and will be settled by $1.5M of cash and $7.5M worth of ordinary shares in thl.
The number of shares is to be determined by the volume weighted average ordinary share price in the 30 days
prior to 25 February 2021. The provisional acquisition accounting is yet to be determined.
---
Tourism Holdings Limited Results Announcement
Results for announcement to the market
Name of issuer Tourism Holdings Limited
Reporting Period 6 months to 31 December 2020
Previous Reporting Period 6 months to 31 December 2019
Currency New Zealand Dollars
Amount (000s) Percentage change
Revenue from continuing
operations
205,828 (1%)
Total Revenue 205,828 (1%)
Net profit/(loss) from continuing
operations
(1,768) (114%)
Total net profit/(loss) (1,768) (114%)
Interim Dividend
Amount per Quoted Equity
Security
It is not proposed to pay dividends.
Imputed amount per Quoted
Equity Security
Not applicable.
Record Date Not applicable.
Dividend Payment Date Not applicable.
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
$1.79 $1.83
A brief explanation of any of the
figures above necessary to
enable the figures to be
understood
Refer to attached investor presentation.
Authority for this announcement
Name of person
authorised to
make this announcement
Rob Campbell
Contact person for this
announcement
Grant Webster
Contact phone number +64 9 336 4255
Contact email address grant.webster@thlonline.com
Date of release through MAP
26 February 2021
Unaudited financial statements accompany this announcement.
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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