thl FY22 Interim Results
Tourism Holdings Limited
Tel: +64 9 336 4299
The Beach House
Fax: +64 9 309 9269
Level 1, 83 Beach Road
www.thlonline.com
Auckland City
PO Box 4293, Shortland Street
Auckland 1140, New Zealand
25 February 2022
MEDIA | NZX RELEASE
TOURISM HOLDINGS LIMITED (thl)
INTERIM RESULTS FOR THE HALF YEAR ENDED 31 DECEMBER 2021
Summary:
Statutory net loss after tax of $4.4M and ordinary net loss after tax of $2.3M.
Net debt at $18.7M, providing approximately $232M of headroom.
Total revenue of $174.9M, down $30.9M on the prior corresponding period (pcp).
Vehicle sales margins continue to be higher than historical norms. We expect that margins will
normalise over time.
Supply chain and inflation related issues are increasing in intensity with varying impacts by
region. These issues influence decisions on the quantum of vehicles we allow for sale.
Non-tourism business diversity strengthened with Action Manufacturing’s proposed acquisition of
MaxiTRANS New Zealand.
1
New Zealand and Australian EBIT improved on the pcp with good cost management and
ongoing vehicle sales performance, despite the ongoing challenges in the rental demand
environment due to border restrictions.
As previously indicated, USA EBIT declined on the pcp due to the domestic environment in Q1. The
rental demand environment is improving into the next high season. Vehicle sale demand and
margins continue to perform strongly.
No dividend declared for the half and it is expected that this will remain the same for the full year.
On a standalone basis, thl’s result for H2 FY22 (excluding transaction costs of NZ$4.0m that are
expected to be incurred in that half) is still expected to be a net loss after tax, however improved on
the pcp.
2
thl today releases its results for the half year ended 31 December 2021.
Rob Campbell, thl Chair, said “the loss is reflective of another period where thl has been materially
impacted by the ongoing COVID-19 pandemic. Despite this, thl remains proactive in mitigating the
current impact on its business and positioning itself to succeed assuming international tourism returns
in a meaningful way.
1
Subject to Commerce Commission approval.
2
thl’s statutory net loss after tax for the second half of the financial year ending 30 June 2021, being the pcp, was a loss of
NZ$12.7M.
”Without a doubt the most significant event in the period was the agreement for the proposed merger
of thl and Apollo. We are highly engaged with the various regulators and based on current information,
expect to have greater clarity on the next steps in early April.
“The proposed merger is expected to provide both sets of shareholders with the benefits of the
material cost synergies that aren’t available to either party without the merger. In doing so, it positions
us to be a more resilient company that can regrow with greater efficiency as fleet is rebuilt in line with
tourism activity.”
Grant Webster, thl Chief Executive, said “thl is a global entity, excited about the opportunities with
international travellers already visiting the USA and starting to book for Australia. The fact that New
Zealand has no certainty on the removal of self isolation requirements is frustrating but it won’t stop thl
investing globally for growth.
“Additionally, the strong vehicle sales environment is a common trait across all of our jurisdictions and
our teams are focused on maximising margins whilst managing sales volumes to position the businesses
with the fleet required for peak season rental needs. This is a balance that we consider on a weekly
basis by jurisdiction and respond appropriately.
“Action Manufacturing has also delivered a significantly improved result on the pcp, and has a positive
outlook for the coming years which will be complemented by its proposed acquisition of the New
Zealand businesses of MaxiTRANS.”
thl’s interim financial statements and investor presentation are available on thl’s website.
ENDS
Authorised by:
Rob Campbell
Chair, Tourism Holdings Limited
For further information contact:
Grant Webster
thl Chief Executive Officer
Direct Dial: +64 9 336 4255
Mobile: +64 21 449 210
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, New Zealand’s largest motorhome
and specialist vehicle manufacturer.
---
Tourism Holdings Limited
Interim consolidated financial statements
for the six months ended 31 December 2021
For and on behalf of the Board:
Rob Campbell Rob Hamilton
Chair of the Board Chair of the Audit Committee
25th February 2022
1
Consolidated income statement
For the six months ended 31 December 2021 (Unaudited)
Unaudited
6 months to
Unaudited
6 months to
Audited
12 months to
Dec 2021 Dec 2020 Jun 2021
Notes $000's $000's $000's
Sales of services
50,301 68,831 130,033
Sales of goods
124,573 136,997 229,140
Total revenue
174,874 205,828 359,173
Cost of sales
(84,910) (116,890) (186,033)
Gross profit
89,964 88,938 173,140
Administration expenses
(22,931) (18,030) (37,861)
Operating expenses
(69,219) (75,659) (150,000)
Other income 2 1,058 6,582 6,460
Operating (loss)/profit before financing costs*
(1,128) 1,831 (8,261)
Finance income
4 18 41
Finance expenses
(4,947) (5,732) (10,888)
Net finance costs
(4,943) (5,714) (10,847)
Share of profit from associates 8 1,171 750 718
Share of profit from joint ventures
- 210 18
Loss before tax
(4,900) (2,923) (18,372)
Income tax benefit 3 536 1,155 3,858
Loss for the period
(4,364) (1,768) (14,514)
Loss for the period is attributable to:
Equity holders of the Company
(4,044) (1,433) (13,675)
Non-controlling interest
(320) (335) (839)
(4,364) (1,768) (14,514)
Earnings per share from profit attributable to the equity
holders of the Company during the period
Basic loss per share (in cents)
(2.7) (1.0) (9.2)
Diluted loss per share (in cents)
(2.7) (1.0) (9.1)
* 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 2021 (Unaudited)
Unaudited
6 months to
Unaudited
6 months to
Audited
12 months to
Dec 2021 Dec 2020 Jun 2021
Notes $000's $000's $000's
Loss for the period
(4,364) (1,768) (14,514)
Other comprehensive income
Items that may be reclassified subsequently to profit or
loss
Foreign currency translation reserve movement (net of
tax) 14 1,933 (12,581) (8,929)
Cash flow hedge reserve movement (net of tax)
1,592 1,699 3,078
Other comprehensive income/(loss) for the period
net of tax
3,525 (10,882) (5,851)
Total comprehensive loss for the period attributable
to equity holders of the Company
(839) (12,650) (20,365)
Total comprehensive loss for the period is
attributable to:
Equity holders of the Company
(530) (12,315) (19,526)
Non-controlling interests
(309) (335) (839)
Total comprehensive loss for the period
(839) (12,650) (20,365)
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 2021 (Unaudited)
Share
capital
$000's
Retained
earnings
$000's
Cash flow
hedge
reserve
$000's
Other
reserves
$000's
Non-
controlling
interests
$000's
Total
equity
$000's
Notes
Opening balance as at 1 July 2021
277,792 42,313 (3,617) (1,030) (2,859) 312,599
Comprehensive income/(loss)
Net loss for the six months ended 31
December 2021
- (4,044) - - (320) (4,364)
Other comprehensive income
Cash flow hedge reserve movement
(net of tax)
- - 1,592 - - 1,592
Foreign currency translation reserve
movement (net of tax) 14 - (6) - 1,928 11 1,933
Total comprehensive
income/(loss)
- (4,050) 1,592 1,928 (309) (839)
Issue of ordinary shares (net of issue
costs) 9 113 - - - - 113
Transfer from employee share
scheme reserve
1,022 134 - (994) - 162
Employee share scheme reserve
- - - 1,394 - 1,394
Total transactions with owners
1,135 134 - 400 - 1,669
Closing balance as at 31
December 2021
278,927 38,397 (2,025) 1,298 (3,168) 313,429
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 2020 (Unaudited)
Share
capital
$000's
Retained
earnings
$000's
Cash flow
hedge
reserve
$000's
Other
reserves
$000's
Non-
controlling
interests
$000’s
Total
equity
$000's
Notes
Opening balance as at 1 July
2020
269,988 55,815 (6,695) 5,991 - 325,099
Comprehensive income
Net loss for the six months ended
31 December 2020
- (1,433) - - (335) (1,768)
Other comprehensive
income/(loss)
Cash flow hedge reserve
movement (net of tax)
- - 1,699 - - 1,699
Foreign currency translation
reserve movement (net of tax) 14 - - - (12,581) - (12,581)
Total comprehensive
income/(loss)
- (1,433) 1,699 (12,581) (335) (12,650)
Transactions with owners
Issue of ordinary shares (net of
issue costs) 9 78 - - - - 78
Non-controlling interests arising on
a business combination
- - - - (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
5
Consolidated statement of changes in equity (continued)
For the year ended 30 June 2021 (Audited)
Share
capital
$000's
Retained
earnings
$000's
Cash flow
hedge
reserve
$000's
Other
reserves
$000's
Non-
controlling
interests
$000's
Total
equity
$000's
Notes
Opening balance as at 1 July
2020
269,988 55,815 (6,695) 5,991 - 325,099
Comprehensive income
Net loss for the year ended 30
June 2021
- (13,675) - - (839) (14,514)
Other comprehensive
income/(loss)
Cash flow hedge reserve
movement (net of tax)
- - 3,078 - - 3,078
Foreign currency translation
reserve movement (net of tax) 14 - - - (8,929) - (8,929)
Total comprehensive
income/(loss)
- (13,675) 3,078 (8,929) (839) (20,365)
Transactions with owners
Issue of ordinary shares (net of
issue costs) 9 7,773 - - - - 7,773
Non-controlling interests arising on
a business combination
- - - - (2,020) (2,020)
Transfer from employee share
scheme reserve
31 173 - (204) - -
Employee share scheme reserve
- - - 2,112 - 2,112
Total transactions with owners
7,804 173 - 1,908 (2,020) 7,865
Closing balance as at 30 June
2021
277,792 42,313 (3,617) (1,030) (2,859) 312,599
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 2021 (Unaudited)
Unaudited
Dec 2021
Unaudited
Dec 2020
Audited
Jun 2021
Notes $000's $000's $000's
Assets
Non-current assets
Property, plant and equipment 5 235,098 266,966 273,072
Right-of-use assets 6 70,143 59,159 62,339
Intangible assets
52,271 45,931 51,121
Derivative financial instruments 12 22,043 19,566 20,835
Investments in joint ventures
- 10,434 -
Investments in associates 8 6,097 4,747 4,936
Deferred tax assets
- - 957
Total non-current assets
385,652 406,803 413,260
Current assets
Cash and cash equivalents
33,019 51,266 38,087
Trade and other receivables
24,701 22,086 28,681
Inventories
61,378 33,860 57,455
Advance to joint ventures
- 401 -
Current tax receivables
1,871 3,009 581
Total current assets
120,969 110,622 124,804
Total assets
506,621 517,425 538,064
Equity
Share capital 9 278,927 270,066 277,792
Other reserves
1,298 (5,698) (1,030)
Cash flow hedge reserve
(2,025) (4,996) (3,617)
Retained earnings
38,397 54,529 42,313
Non-controlling interests
(3,168) (2,355) (2,859)
Total equity
313,429 311,546 312,599
Liabilities
Non-current liabilities
Interest bearing loans and borrowings 10 51,733 50,433 86,659
Derivative financial instruments 12 2,699 7,181 5,124
Lease liabilities 6 73,598 62,373 64,479
Deferred income tax liability
11,774 11,465 9,989
Total non-current liabilities
139,804 131,452 166,251
Current liabilities
Interest bearing loans and borrowings 10 - 22,850 125
Trade and other payables
23,958 23,443 25,263
Revenue in advance
12,816 11,750 13,087
Employee benefits
8,253 6,450 8,017
Provisions
554 - 413
Derivative financial instruments 12 255 135 148
Lease liabilities 6 7,552 7,184 8,787
Current tax liabilities
- 2,615 3,374
Total current liabilities
53,388 74,427 59,214
Total liabilities
193,192 205,879 225,465
Total equity and liabilities
506,621 517,425 538,064
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 2021 (Unaudited)
Unaudited
6 months to
Unaudited
6 months to
Audited
12 months to
Dec 2021 Dec 2020 Jun 2021
Notes $000's $000's $000's
Cash flows from operating activities
Receipts from customers
49,773 83,616 150,534
Proceeds from sale of goods
131,522 133,242 222,265
Interest received
4 18 41
Payments to suppliers and employees
(71,179) (74,369) (159,783)
Purchase of rental assets
(68,061) (32,171) (119,922)
Interest paid
(4,885) (5,555) (10,878)
Taxation (paid)/received
(356) (64) 2,024
Dividend received
- - 869
Proceeds from insurance recoveries
133 717 1,826
Net cash flows from operating activities
36,951 105,434 86,976
Cash flows from investing activities
Sale of property, plant and equipment 5 80 110 110
Receipts from joint ventures
- 254 353
Purchase of property, plant and equipment 5 (819) (246) (1,199)
Purchase of intangibles
(1,391) (2,261) (4,113)
Net cash paid as part of the step acquisition of Outdoria
- (373) (374)
Net cash received as part of the step acquisition of AMLP
- - 4,631
Net cash from/(used in) investing activities
(2,130) (2,516) (592)
Cash flows from financing activities
Payment for lease liability principal 6 (4,702) (3,643) (7,732)
Proceeds from borrowings 10 6,241 12,251 61,853
Repayments of borrowings 10 (41,939) (92,519) (136,420)
Proceeds from share issue 9 193 - 304
Net cash flows used in financing activities
(40,207) (83,911) (81,995)
Net (decrease)/increase in cash and cash equivalents
(5,386) 19,007 4,389
Opening cash and cash equivalents
38,087 35,514 35,514
Exchange (losses)/gains on cash and cash equivalents
318 (3,255) (1,816)
Closing cash and cash equivalents
33,019 51,266 38,087
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
Tourism Holdings Limited
8
Index to notes to the consolidated financial statements
About this report 9
Section A - Financial performance 10
1. Segment note 10
2. Other operating income/(expenses) 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. Leases 14
7. Capital commitment 14
Section C - Investments 15
8. Investments in associate 15
Section D - Managing funding and risk 16
9. Share capital 16
10. Borrowings 16
11. Seasonality of business 17
12. Financial risk management 17
Section E - Other 18
13. Related party transactions 18
14. Foreign currency translation reserve 19
15. Contingencies 20
16. Other Events 20
17. Events after the reporting period 20
Tourism Holdings Limited
9
Notes to the 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 Group interim financial statements should be read in conjunction with the annual
report for the year ended 30 June 2021;
• 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 financial statements were approved for issue on 25 February 2022.
These condensed interim financial statements have not been audited.
Critical accounting estimates and judgement
The preparation of interim 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 financial statements are consistent with those used in the
30 June 2021 annual financial statements.
Covid-19 Pandemic
The global impact of COVID-19 is ongoing and continues to have a financial impact on the Group. There have
been varying degrees of border restrictions and lock-down requirements in each of the jurisdictions that the Group
operates in, particularly with the spread of the COVID-19 Omicron variant in the United States, Australia and, most
recently, in New Zealand. While the short term operating environment remains impacted by COVID-19, the
assumptions from the year-end impairment assessments remain valid, with no indications of impairment.
Changes in accounting policies
The accounting policies used in the preparation of these interim financial statements are consistent with those
used in the 30 June 2021 annual financial statements.
Tourism Holdings Limited
10
Notes to the 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;
• Action Manufacturing - Manufacturer and the sale of motorhomes and other speciality vehicles (not included in
the six month period to 31 December 2020 as thl’s 50% interest in the AMPL joint venture was accounted for under
the equity method of accounting in accordance with NZ IAS 28 Investments in Associates and Joint Ventures);
• 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;
• Other - includes Group Support Services, group elimination entries and thl digital. thl digital includes Mighway,
SHAREaCAMPER, Cosmos and Outdoria. The associate Justgo is also included in this category.
For the Six months
to 31 December
2021
NZ Rentals
Action
Manu-
facturing
Tourism
Group
Australia
Rentals
United States
Rentals Other Total
$000's $000's $000's $000's $000's $000's $000's
Sales of services 6,151 - 846 15,675 26,903 726 50,301
Sales of goods 41,840 13,468 - 16,218 52,966 81 124,573
Revenue from external customers
47,991 13,468 846 31,893 79,869 807 174,874
Depreciation (6,633) (1,221) (752) (6,423) (6,750) (350) (22,129)
Amortisation (8) (2) (328) (14) (52) (540) (944)
Other costs (48,327) (11,120) (2,202) (26,416) (61,857) (3,007) (152,929)
Operating profit/(loss) before
interest and tax
(6,977) 1,125 (2,436) (960) 11,210 (3,090) (1,128)
Interest income - - - - - 4 4
Interest expense (291) (150) (32) (572) (1,485) (2,417) (4,947)
Share of profit/(loss) from joint
ventures and associates - - - - - 1,171 1,171
Operating profit/(loss) before tax (7,268) 975 (2,468) (1,532) 9,725 (4,332) (4,900)
Taxation 2,034 - 622 459 (2,640) 61 536
Operating profit/(loss) after interest
and tax
(5,234) 975 (1,846) (1,073) (7,085) (4,271) (4,364)
Capital expenditure 4,136 370 139 23,000 44,761 2,601 75,007
Total non-current assets
76,500 11,543 18,111 97,386 140,049 42,083 385,672
Total assets
105,413 38,962 18,991 117,276 178,795 47,184 506,621
Giant white space
Net funds employed
78,294 24,421 16,784 63,603 104,660 44,382 332,144
Tourism Holdings Limited
11
Notes to the consolidated financial statements
1. Segment note (continued)
For the Six months to 31
December 2020
NZ Rentals
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
Big white space
Net funds employed
124,103 16,583 55,397 71,884 65,595 333,562
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. Interest income and expenditure are not included in the result for each operating segment
that is reviewed by the CODM.
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 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 total assets less segment non-interest-bearing liabilities and cash on hand.
Tourism Holdings Limited
12
Notes to the consolidated financial statements
2. Other operating income, net
6 months to
31 Dec 2021
6 months to
31 Dec 2020
12 months to
30 Jun 2021
$000's $000's $000's
Fair value movements on financial assets recognised at fair value
through profit or loss 703 561 1,178
Dividend Income 430 444 869
Write-off of fleet items (402) (1,114) (1,883)
Proceeds from insurance recoveries 88 2,474 3,112
Gain/(loss) on disposal of non fleet assets 12 (602) (824)
Gain on exiting Mangere branch lease - 1,621 1,621
US Paycheck Protection Program ("PPP") loan forgiveness - 1,476 1,457
Loss on acquisition of remaining shareholding in AMLP - - (1,406)
Other 226 1,722 2,335
1,058 6,582 6,460
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 2021, the Group paid no dividends. There were no 2021 interim and
final dividends.
Tourism Holdings Limited
13
Notes to the 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 plant
&
equipment
Capital
work in
progress Total
$000's $000's $000's $000's
Six months ended 31 December 2021
Opening net book amount as at 1 July 2021 274,052 20,361 14,619 309,032
Additions and transfers from work in progress (net) 62,581 723 10,941 74,245
Disposals (88,063) (810) (1,829) (90,702)
Transfer to assets held for sale - - (8) (8)
Exchange differences (3,720) (17) - (3,737)
Depreciation charge (17,818) (1,916) - (19,734)
Closing net book amount 227,032 18,341 23,723 269,096
As at 31 December 2021
Cost 300,850 62,646 23,723 387,219
Accumulated depreciation (73,818) (44,305) - (118,123)
Net book amount 227,032 18,341 23,723 269,096
Less reclassification of motorhomes to inventory
at balance date
Cost 48,642 - - 48,642
Accumulated depreciation (14,644) - - (14,644)
Net book amount 33,998 - - 33,998
Closing net book amount post reclassification 193,034 18,341 23,723 235,098
Six months ended 31 December 2020
Opening net book amount as at 1 July 2020 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
Less 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
Tourism Holdings Limited
14
Notes to the consolidated financial statements
6. Leases
During the six months ended 31 December 2021, the Group had leased asset additions of $10.1M and
modifications of $2.3M, and the Group has disposed or reduced the right-of-use asset by $0.4M.
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 2021 Dec 2020 Jun 2021
$000's $000's $000's
Property, plant and equipment 186,495 139,473 131,108
Tourism Holdings Limited
15
Notes to the consolidated financial statements
Section C - Investments
In this section:
thl's investments comprise subsidiaries, associate and joint ventures. 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 associate and joint ventures.
thl's investment include a 49% interest in Just go, a motorhome rental operation in the United Kingdom.
Acquisition of Action Manufacturing LP (AMPL)
On 28 February 2021 thl purchased the remaining 50% shareholding in Action Manufacturing Group GP (AMLP)
from its joint venture partner, Alpine Bird Manufacturing Limited. Prior to the acquisition, thl’s 50% interest in the
AMLP joint venture was accounted for under the equity method of accounting in accordance with NZ IAS 28
Investments in Associates and Joint Ventures. After 28 February 2021, AMLP is a 100% owned subsidiary of thl
and is consolidated in thl’s group financial statements under NZ IFRS 10 Consolidated Financial Statements.
8. Investments in associate
The Group owns a shareholding of 49.0% in Skewbald Limited (trading as Just go). 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 share of profits/(losses) recognised in the income statement are as follows:
6 months to 6 months to 12 months to
Dec 2021 Dec 2020 Jun 2021
$000's $000's $000's
Just go 1,171 791 759
Outdoria (up to 31 July 2020) - (41) (41)
Total 1,171 750 718
The carrying amounts recognised in the balance sheet are as follows:
Dec 2021 Dec 2020 Jun 2021
$000's $000's $000's
Just go 6,097 4,747 4,936
Total 6,097 4,747 4,936
Tourism Holdings Limited
16
Notes to the consolidated financial statements
Section D - Managing Funding and Risk
This section summarises thl's funding sources and financial risks.
9. Share capital
Dec 2021
$000's
Dec 2020
$000's
Jun 2021
$000's
Ordinary shares
Opening balance
277,792
269,988
269,988
Issue of ordinary shares – redeemable ordinary shares converted - - 273
Transfer from employee share scheme reserve for redeemable shares - - 31
Issue of ordinary shares – in lieu of directors’ fees
85
57
142
Ordinary shares to be issued – in lieu of directors’ fees 28 21 21
Ordinary shares issued as part consideration for AMLP
-
-
7,337
Ordinary shares Issued – options and rights offer 1,022 - -
Closing balance 278,927 270,066 277,792
The total authorised number of ordinary shares is 152,040,427 (Dec 2020, 148,040,927; Jun 2021, 151,489,050)
and these are classified as equity. The shares have no par value. All ordinary share are issued and fully paid. All
ordinary shares rank equally with one vote attached to each fully paid ordinary shares.
For the six months ended 31 Dec 2021, the group has issued 35,169 shares to directors in lieu of director’s fees,
and 516,208 shares to employees as share options and share rights conversion. Cash proceeds from employees’
share options exercise is $192,564.
10.
Borrowings
Dec 2021 Dec 2020 Jun 2021
$000's $000's $000's
Non-current
Bank borrowings 49,560 48,337 84,460
Other borrowings 2,173 2,096 2,199
51,733 50,433 86,659
Current
Bank borrowings - 22,850 125
- 22,850 125
Total borrowings 51,733 73,283 86,784
Dec 2021 Dec 2020 Jun 2021
$000's $000's $000's
The Group has the following undrawn borrowing facilities:
Expiring within one year - 20,173 -
Expiring beyond one year 201,957 105,248 116,298
201,957 125,421 116,298
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
17
Notes to the consolidated financial statements
11. 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 2021 is not representative of all risks faced
during the year.
12. 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 2021 Dec 2020 Jun 2021
Assets Liabilities Assets Liabilities Assets Liabilities
$000's $000's $000's $000's $000's $000's
Derivative financial
instruments (Level 2) - 2,954 - 7,316 - 5,272
Retained interest in Togo
Group (Level 3) 22,043 - 19,566 - 20,835 -
Tourism Holdings Limited
18
Notes to the 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.
13. Related party transactions
Key management compensation
6 months to 6 months to 12 months to
Dec 2021 Dec 2020 Jun 2021
$000's $000's $000's
Salaries and other short term employee benefits 2,211 1,837 3,940
Share based payments benefits 637 525 1,341
Total positions included in the executive team are 13 (31 December 2020:15; 30 June 2021:12).
Executive management do not receive any Directors’ fees as Directors of subsidiary companies.
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. To 30 September 2021, Rob Campbell and Rob Hamilton elected to
receive 50% of their director fees in shares, and Debbie Birch elected to receive 33% of her director fees in shares.
From 01 October 2021, Rob Hamilton elected to receive 25% of his director fees in shares and Debbie Birch has
opted out of receiving any shares in part payment of her director fees. Shares issued in lieu of directors' fees are
as follows:
Dec 2021 Dec 2020 Jun 2021
No. of shares issued in lieu of cash (000's) 35 26 63
Value of shares issued in lieu of cash ($000's) 85 57 142
Accrued value of shares yet to be issued in lieu of cash ($000's) 28 42 42
Grant Brady (Director of Action Manufacturing LP)
Grant Brady, Director of Action Manufacturing, is a minority shareholder and director of Bush Road Enterprises
Limited. thl leases 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
Dec 2021 Dec 2020 Jun 2021
$000's $000's $000's
Total lease payments 323 222 545
Tourism Holdings Limited
19
Notes to the consolidated financial statements
13. Related party transactions (continued)
Action Manufacturing LP
Grant Brady is a shareholder in another entity, Alpine Bird Manufacturing Limited which previously owned 50% of
Action Manufacturing Limited Partnership (“AMLP”) until 28 February 2021. 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. AMLP also leases part of the Bush Road property described
above. The transactions between AMLP and thl are set out in the table below:
6 months to 6 months to 12 months to
Dec 2021 Dec 2020 Jun 2021
$000's $000's $000's
Purchase of motorhomes by the Group from the joint venture - 10,023 12,706
Sales of vehicles by the Group to the joint venture - 478 534
Interest charged to the joint venture - 10 37
Management of Mighway vehicles
-
7 10
During the period ended 31 December 2021, the Group had no commitment to purchase motorhomes from Just
go (2021: $nil).
Schork Family
As part of the consideration for the acquisition of El Monte Rents Inc in January 2017, 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 2021 was $169k (six months ended 31 December 2020: $305k; year ended June 2021: $443k). 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
Dec 2021
6 months to
Dec 2020
12 months to
Jun 2021
$000's $000's $000's
Total lease payments 1,566 1,557 3,034
14. 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 profit and
loss as part of the gain or loss on disposal.
The closing exchange rates used to translate the balance sheet are as follows:
Dec 2021 Dec 2020 Jun 2021
NZD/AUD 0.9421 0.9384 0.9310
NZD/USD 0.6832 0.7227 0.6998
NZD/GBP 0.5061 0.5297 0.5050
Justgo
Tourism Holdings Limited
20
Tourism Holdings Limited
Notes to the consolidated financial statements
15. Contingencies
As at 31 December 2021, other than bank guarantees, which are predominantly in lieu of bonds paid relating to
leased assets, the Group has no material contingent liabilities.
16. Other Events
Sale of Mighway and SHAREaCAPMER
On 25 October 2021, the Company entered into an agreement to sell the business and assets of Mighway and
SHAREaCAPMER to Camplify Holdings Limited for a purchase price of A$7.4M, subject to closing adjustments.
The purchase price is to be satisfied by Camplify issuing new fully paid ordinary shares to thl. Based on the
purchase price, the sale is expected to represent a gain on sale of the businesses of approximately NZ$6.3M,
subject to closing adjustments. The transaction is conditional on Camplify obtaining approval from the New Zealand
Commerce Commission.
Merger with Apollo
On 10 December 2021, the Company announced that it entered into a conditional Scheme Implementation Deed
with Apollo Tourism & Leisure Limited (Apollo, ATL), to merge through an Australian Scheme of Arrangement,
whereby thl will acquire all outstanding shares in ATL.
Apollo shareholders will receive 1 fully paid ordinary share in thl for every ~3.68 fully paid ordinary shares in Apollo
held as at the Scheme record date. Apollo shareholders will together own approximately 25% of thl Shares on
issue upon completion of the Proposed Transaction.
The scheme is conditional upon thl receiving approval to list on the Australian Securities Exchange (ASX) and
subject to approval of Apollo shareholders and finalisation of appropriate funding arrangements for the merged
entity. In addition, there are various court and regulatory approvals in Australia and New Zealand, including
Australian and New Zealand competition regulatory clearance and other conditions specified in the Scheme
Implementation Deed which was released to the ASX and NZX on 10 December 2021 and the Scheme Booklet
dated 21 February 2022. Apollo shareholder approval will be sought at a special meeting of shareholders scheduled
to be held on 20 April 2022.
Transaction costs in relation to the Apollo merger of $2.1M have been incurred to 31 December 2021 and expensed
through the income statement.
17.
Events After Reporting Period
MaxiTRANS acquisition
On 25 January 2022, Action Manufacturing entered into a conditional agreement to purchase the business and
assets of MaxiTRANS in New Zealand for approximately $5.7M, reflecting the net asset value of the business. The
purchase price will therefore be adjusted to reflect net asset value on completion.
MaxiTRANS is a well-established business operating in the heavy transport manufacturing industry under the
brands of Maxi-CUBE and Freighter. The transaction is subject to approval from the New Zealand Commerce
Commission.
Roadpass Digital (previously known as Togo group)
The Company has recently received an indication from Thor Industries that they are open to discussing an early
buyout of the thl preference shares in Roadpass Digital at a discount to the buyout value of those shares. thl is
considering its position and is likely to enter into negotiations over the coming weeks. There is no certainty that a
transaction will occur.
---
Tourism Holdings Limited Results Announcement
Results for announcement to the market
Name of issuer Tourism Holdings Limited
Reporting Period 6 months to 31 December 2021
Previous Reporting Period 6 months to 31 December 2020
Currency New Zealand Dollars
Amount (000s) Percentage change
Revenue from continuing
operations
174,874 (15%)
Total Revenue 174,874 (15%)
Net profit/(loss) from continuing
operations
(4,364) (147%)
Total net profit/(loss) (4,364) (147%)
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
$1.72 $1.79
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
25 February 2022
Unaudited financial statements accompany this announcement.
---
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
moving
forward
together
2022 INTERIM RESULTS
PRESENTATION
25 FEBRUARY 2022
2 0 2 2 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
2 0 2 2 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. To the
maximum extent permitted by law, thl, its Directors,
employees or advisers give no warranty or
representation as to the accuracy, reliability or
completeness of the information in this presentation, or
thl’s future financial performance (including any merger)
or any future matter, and disclaim all liability in this
regard. Except as required by law or NZX listing rules, thl
is 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 with any purchase
of thlsecurities. 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. The information
contained in this presentation should be read in
conjunction with thl’s latest financial statements, which
are available at: www.thlonline.com.
2 0 2 2 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
Update on
Apollo merger
2 0 2 2 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 / Apollo merger –market update
4
•The Apollo Board has unanimously recommended that Apollo shareholders approve the Scheme, in the absence of a superior proposal and subject to the Independent
Expert engaged by it continuing to conclude that the Scheme is in the best interests of the Apollo shareholders who will be voting in respect of the Scheme.
•The Apollo shareholder meeting to vote on whether to approve the Scheme will be held on 20 April 2022.
•Apollo has registered the Scheme Booklet with ASIC and it has been sent to Apollo shareholders.The Scheme Booklet is the document that provides the notice of meeting
to Apollo Shareholders and provides relevant information to Apollo shareholders in order to allow them to assess the Scheme and to decide whether to vote in favour.
•thlencourages its shareholders to review the Scheme Booklet, which was announced on NZX by thlon 22 February 2022.
•The Independent Expert has assessed the fair market value of Apollo shares on a control basis at between A$0.709 and A$0.859 perApollo share and the fair market value
of the scheme consideration (being the shares in thlto be issued to Apollo shareholders) on a minority basis at between A$0.753 and A$0.913 per Apollo share. The
Independent Expert’s assessment of the fair market value of the scheme consideration on a minority basis falls within or above the Independent Expert's assessed fair
market valuation range of Apollo shares on a control basis, with the scheme consideration valuation at the low-end and high-end above the valuation of Apollo shares at
the low-end and high-end.
•In preparing the Scheme Booklet, thlhas also had to provide to Apollo certain information regarding thland the merged group, including thl’sintentions for the merged
group following implementation of the Scheme and certain key risks relating to the Scheme.This information is contained in Sections 8 to 10 of the Scheme Booklet, and
thlencourages shareholders to review that information.
•Following the release of these financial statements, the Apollo Board will obtain the Independent Expert’s confirmation of whether the financial results change the
Independent Expert’s opinion that the Scheme is fair and reasonable and, therefore, in the best interests of Apollo shareholderswho will be voting on the Scheme, in the
absence of a superior proposal.The confirmation will be announced by Apollo to ASX and by thlto NZX in advance of the Scheme meeting.
•As thlnoted in its 10 December 2021 announcement, the proposed merger is subject to finalisation of appropriate funding arrangements, Australian and New Zealand
competition regulatory clearance, and other conditions specified in the Scheme Implementation Deed.Both thland Apollo continue to work to satisfy these conditions
but as at the date of this announcement none of the conditions have been satisfied.However, as at the date of this announcement, neither thlnor Apollo are currently
aware of any reasons why the Scheme conditions will not be satisfied.
2 0 2 2 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 / Apollo merger –key dates and times
5
EventDate
First Court Hearing at which the Court made orders convening the Scheme MeetingFriday, 18 February 2022
Release of Scheme BookletMonday, 21 February 2022
Scheme Meeting for Apollo ShareholdersWednesday, 20 April 2022
If the Scheme is approved by the Requisite Majority of ATL Voting Shareholders, the indicative timetable for implementing the Scheme is as set out
below.
Second Court Date: Second Court Hearing for approval of the SchemeThursday, 28 April 2022
Effective Date:
•The date on which the Scheme becomes Effective and is binding on ATL Voting Shareholders
•Lodgment by ATL with ASIC of the Court orders approving the Scheme and lodgment of
announcement to ASX
•Last day of trading in ATL Shares on the ASX
Friday, 29 April 2022
Implementation Date: Issue of Scheme Consideration to Scheme
Shareholders
Tuesday, 10 May 2022
Commencement of trading of thl Consideration Shares on the NZX
on a normal settlement basis
Wednesday, 11 May 2022
Admission of thl to the official list of ASX as a foreign exempt listingWednesday, 11 May 2022
Commencement of trading of thl Consideration Shares on the ASX
on a normal settlement basis
Wednesday, 11 May 2022 or as soon as reasonably
practicable thereafter
All dates following the date of the Scheme Meeting are indicative only and, among other things, are subject to all necessary approvals from the Court, ASIC, ASX, NZX and any other
relevant government agency, and any other conditions to the Scheme having been satisfied or, if applicable, waived.
2 0 2 2 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
Funding arrangements for merged entity
6
•It is intended that the merged group’s funding is sourced from multiple lenders utilising various facility types, aimed at providing an
effective balance of certainty of funding and quantum and cost of funding which recognises the profile of the mobile, saleable assets
of the merged group.
•Each region in which the merged group operates has been independently considered from a funding perspective. The funding of the
Canadian business going forward is well progressed and is expected to continue to be supported by ATL’s existing Canadian lenders.
In other regions, it is expected that a mixture of asset financing and corporate debt will be used to fund the businesses in those
regions.
•The expected use of corporate debt and asset financing is intended to provide the merged group with a mix of funding which will
enable it to have access to capital to fund its fleet growth plans, non-fleet capital expenditure and general operating requirements,
including working capital increases in businesses such as Action Manufacturing and the Australian manufacturing and retail
dealerships, as they increase volumes in line with current forward orders.
•Discussions with financiers are at various stages, however the indicative support received to date in the form of either indicative
term sheets or correspondence suggests that the arrangements would, if agreed and are completed, provide sufficient funding to
enable the merged group to undertake its intended fleet growth through to the end of FY24. To date, thlhas had positive
discussions with ATL’s existing lenders and change of control consents have been received, or are expected to be received, inrespect
of all material lenders of ATL. thlcontinues to consider the appropriate proportion of corporate debt (potentially including from thl’s
existing lenders) and asset financing for the merged group and the final mix remains contingent on agreeing final terms and entering
into relevant agreements with the various lenders.
•thlcontinues to expect that the Scheme Conditions relating to (a) refinancing and (b) consent from ATL financiers or refinancing(as
detailed in section 5.3) will be satisfied prior to the Second Court Date.
2 0 2 2 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
Highlights
2 0 2 2 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
2 0 2 2 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
Summary
8
•Statutory net loss after tax of $4.4M,
1
and ordinary net loss after tax of $2.3M.
•Net debt at $18.7M, providing approximately $232M of headroom.
•Total revenue of $174.9M, down $30.9M on the prior corresponding period (pcp).
•Vehicle sales margins continue to be higher than historical norms. We expect that margins will normalise over time.
•Supply chain and inflation related issues are increasing in intensity with varying impacts by region.These issues
influence decisions on the quantum of vehicles we allow for sale.
•Non-tourism business diversity strengthened with Action Manufacturing’s proposed acquisition of MaxiTRANS New
Zealand.
2
•New Zealand EBIT improvedon the pcp withgood cost managementand ongoingvehicle salesperformance, despite
theongoing challenges in the rental demand environment with international borders closed to visitors.
•Australia EBIT improvedon thepcpwithgood cost managementand ongoingvehiclesalesperformance. Rental
demand has been challenged by the domestic border restrictions.
•USA EBIT declinedon the pcp due to the domestic environment in Q1.
3
The rental demand environment is improving
into the next high season. Vehicle sale demand and margins continue to perform strongly.
•No dividend declared for the half and it is expected that this will remain the same for the full year.
•On a standalone basis, thl’s result for H2 FY22 (excluding transaction costs of NZ$4.0m that are expected to be
incurred in that half) is still expected to be a net loss after tax, however improved on the pcp.
4
1
Compares to earlier market guidance provided on 10 December 2021 of a net loss after tax of between $4 –$7M.
2
Subject to clearance approval from the New Zealand Commerce Commission.
3
Refer to slide 19 of thl’s Annual Results Presentation dated 26 August 2021.
4
thl’s statutory net loss after tax for the second half of the financial year ending 30 June 2021, being the pcp, was a loss of NZ$12.7m.
2 0 2 2 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
1
H1 FY22 includes $2.1M in transaction costs relating to the merger with Apollo. H1 FY21 includes a non-recurring gain of $1.2M (inclusive of tax) from the termination of the lease for the Mangere branch.
2
Excludes non-recurringitems. Refer to slide 35for further information.
Half year in review
As at 31 December 2021
TOTAL REVENUE
$175M
(H1 FY21:$206M)
STATUTORY NETLOSS
AFTERTAX(NPAT)
1
-$4.4M
(H1 FY21:-$1.8M)
-$31M
TOTAL FLEET
3,430
(30 June 2021:4,242)
EBITDA
1
$21.9M
(H1 FY21:$27.3M)
NET DEBT
$18.7M
(30 June 2021:$49M)
EBIT
1
-$1.1M
(H1 FY21:$1.8M)
XX%
SALE OF GOODS REVENUE
$125M
(H1 FY21:$137M)
9
-$30.3M
-$12M
-$2.9M
-$2.6M
-$5.4M
+$0.7M
-812
UNDERLYING NPAT
2
-$2.3M
(H1 FY21:-$3.0M)
2 0 2 2 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
Financial summary
10
NZD $M
FY22
FY21
VAR
%
Operating revenue
174.9
205.8
(30.9)
(15%)
Earnings before interest,
tax,depreciation and
amortisation*
21.9
27.3
(5.4)
(20%)
Earnings before interest and
tax*
(1.1)
1.8
(2.9)
(163%)
Operating profit before tax
(4.9)
(2.9)
(2.0)
69%
Loss after tax*
(4.4)
(1.8)
(2.6)
143%
6 Months to December
* includes non-recurring items
NZD $M
FY22
FY21
VAR
%
Underlying NPAT
(2.3)
(3.0)
0.7
24%
One-off gain (loss)
(2.1)
1.2
(3.3)
(274%)
Loss after tax
(4.4)
(1.8)
(2.6)
(143%)
6 Months to December
H1 comparison of operating loss before tax ($M)
•Total revenue of $174.9M,
down $30.9M or 15% on the
pcp.
•Relative to pcp, rental revenue
was down $16.1M while sale of
goods revenue was down
$12.4M.
•EBITDA of $21.9M and EBIT loss
of $1.1M.
•Underlying net loss after tax of
$2.3M, improved on the pcpby
$0.7M.
•Non-recurring items includes a
$2.1M expense in H1 FY22
relating to transaction costs,
and a $1.2M gain (after tax) in
H1 FY21 relating to the
termination of the Mangere
lease.
Loss before
tax H1 FY21
Rentals NZRentals AUActionRentals USATourismGroup
support
services &
other
Loss before
non-
recurring
items and
interest
Non-
recurring
items
AssociatesNet interestLoss before
tax H1 FY22
2 0 2 2 I N T E R I M R E S U L T S
P R E S E N T A T I O N
Balance sheet
11
1
Includes USD, GBP and AUD denominated commitments.
Maturityof debt facilities ($NZ)
June 2023$50M
June 2024
1
$202M
Total facilities
1
$252M
•Net debt at 31 December 2021 was $18.7M.
•Interest on bank borrowings was $3.4M, down $0.6M on
the pcp.
1
•thl’s equity ratio has been further strengthened as vehicles
are sold at record margins and proceeds are applied to
repay debt. The equity ratio has improved in the 6 month
period from 30 June to 31 December 2021 from 53.7% to
57.5%.
•Headroom of approximately $232M provides thl with the
flexibility to utilise its banking facilities to re-invest in fleet
as international tourism recovers.
•Net capital expenditure expectations for FY22 are narrowed
to between $25M -$40M.
2
•thl remains in compliance with its banking covenants.
1
Includes interest on swaps and excludes ineffective swap value transferred to the
income statement.
2
Earlier guidance provided on 10 December 2021 noted expectations of net capital
expenditure for FY22 to be at the lower end of $25M -$60M.
* Net Debt and net debt:EBITDAexclude lease liabilities arising from the adoption of IFRS 16.
Net debt*
2 0 2 2 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
review
12
2 0 2 2 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 performance
1
1
1
Operating cash flow includes the sale and purchase of rental assets.
2
Action Manufacturing’s results are inclusive of intercompany eliminations relating to vehicles sold to the thlrentals businesses.
3
For the 6 months to December 2020, thlhad a 50% shareholding in Action Manufacturing, and Action Manufacturing’s results for that period are reflected in ‘Joint Ventures’.
2 3
3
$M
REVENUE
DIVISIONAL
EBITDA
DIVISIONAL
EBIT
AVE FUNDS
EMPLOYED
OPERATING
CASHFLOWREVENUE
DIVISIONAL
EBITDA
DIVISIONAL
EBIT
AVE FUNDS
EMPLOYED
OPERATING
CASHFLOW
Rentals New Zealand 48.0 (0.3) (7.0) 85.2 26.0 70.2 (0.7) (10.8) 138.8 25.5
Action Manufacturing 13.5 2.3 1.1 29.2 (4.8) – – – – –
Rentals Australia 31.9 5.5 (1.0) 60.1 (7.1) 29.9 5.0 (2.6) 61.1 12.5
Rentals USA 79.9 18.0 11.2 115.8 24.5 101.8 22.8 16.6 95.1 75.2
Tourism Group 0.8 (1.4) (2.4) 16.7 (0.9) 2.6 0.7 (0.5) 18.7 (0.2)
Group Support Services/Other 0.8 (0.1) (1.0) 48.1 (0.6) 1.3 (2.0) (2.4) 42.6 (7.6)
Non-recurring Item(2.1) (2.1) 1.6 1.6
thl 100% owned entities 174.9 21.9 (1.1) 355.0 37.0 205.8 27.3 1.8 356.3 105.4
Joint Ventures – – 0.2 11.2
Associates 1.2 4.9 0.7 4.7
Group Total 174.9 21.9 0.0 360.0 37.0 205.8 27.3 2.8 372.3 105.4
6 Months to December 20216 Months to December 2020
2 0 2 2 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
2 0 2 2 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 Rentals and Sales
15
•EBIT result has improved on the pcp, from a loss of $10.8M to a loss
of $7.0M, despite a reduction in rental income of $8.4M (or 58%)
on the pcp.
•The improved result is reflective of cost management in the rentals
business and continued strong sales margins for vehicle sales. The
reduction in costs on the pcpreflects the lower cost of goods sold,
variable costs flexing down with lower rental activity, as well as
lower depreciation on a smaller fleet.
•Non-tourism rental revenue continues as a key focus and delivered
$1.7M in revenue in the period. The business has ignited a series of
activities nationally in the health sector, with campaigns including
vaccination vans.
•The business remains engaged with international wholesalers to
encourage New Zealand as a destination of choice when borders
open to international tourists with no self-isolation requirements.
•There is ongoing engagement with the New Zealand Government
on responsible camping rules and the implications of border
settings.
•Operational capacity has been retained to position the business for
the return of international demand.
6.6
7.0
7.5
(10.8)
(7.0)
(15)
(10)
(5)
-
5
10
15
NZ
NZ$M
H1 New Zealand Rentals & Sales EBIT
H1 FY18H1 FY19H1 FY20H1 FY21H1 FY22
Half Year
NZD $M
FY22
FY21
VAR
VAR %
Rental income
6.2
14.6
(8.4)
(58%)
Sale of goods
41.9
55.6
(13.7)
(25%)
Costs
(55.0)
(81.0)
26.0
32%
EBIT
(7.0)
(10.8)
3.9
36%
6 Months to December
2 0 2 2 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 fleet
16
•The New Zealand business has continued to sell down fleet
achieving strong margins, with a net reduction in fleet of 373
vehicles in the half.
•Growth in average sales margin relative to the pcp was in excess
of 100%, reaching approximately $23.3k per sale.
•A total of 426 vehicles sold,
1
down from a total of 727 vehicles
sold in the pcp. The pcp had the Great New Zealand Motorhome
Sale campaign that drove sales volume, dealer engagement and
RVSC retail sales activity.
•Vehicle sales revenue for the half was in line with the pcp,
despite there being 301 fewer vehicles sold, reflecting the higher
retail pricing as well as the greater proportion of new vehicle
sales.
•On-fleet dates for new capital expenditure are moving later into
the year, however at this point in time there is no impact on the
rentals business, given the current demand environment and
utilisation.
1
Includes 382 fleet sales and 44 non-fleet sales.
$11.2
$11.0
$10.5
$11.9
$23.3
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
NZD $000
Average sales margin per vehicle
FY18FY19FY20FY21H1 FY22
Historical norm
Vehicle Fleet
Units:
FY22
FY21
VAR
VAR %
Opening Fleet
1,547
2,532
(985)
(39%)
Fleet Sales
(385)
(643)
258
(40%)
Fleet Purchases
12
140
(128)
(91%)
Closing Fleet
1,174
2,029
(855)
(42%)
1
H1 FY22 excludes 44 non-fleet vehicle sales and includes 3 write-offs.
6 Months to December
1
2 0 2 2 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
RV Super Centre retail sales
17
•The New Zealand retail accessories business continues as a key area
ofgrowth for the New Zealand Rentals and Sales division.
•The business leverages thl’s existing infrastructure (rental and sales
sites in Auckland, Christchurch and Queenstown), supplemented by a
strong online presence.
•The range of retail products online has expanded from approximately
1,800 to nearly 5,000 today over the last six months. Approximately
41% of revenue in H1 FY22 was generated through the online store.
•Retail sales margins and stock management are in line with
expectations for a business of this nature.
•The business intends to implement new initiatives to continue
growth, including further development and branding of the RV Super
Centre website, improving functionality with enhanced mobile user
experience.
•Partnered with third party lenders to facilitate financing arrangements
for vehicle sales customers.
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
H1 FY19H2 FY19H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22
NZD
Retail sales revenue
2 0 2 2 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
18
•The results on this slide:
•do not reflect the intercompanyelimination ofsale
ofvehicles from ActionManufacturing (Action) to
thethlrentalsbusinesses (refer to slide 36 for
furtherinformation); and
•reflect the performance on a 100% ownership basis in
the pcp, despite Action being a 50% joint venture during
the pcp.
•Refer to slide 13for Action’s results inclusive
ofintercompanyeliminations.
•Action delivered an EBIT of $2.5M, up $1.8M on the pcp.
•Action continues to grow the non-motorhome element of the
New Zealand business, with 44% of Action’s revenue in the
period attributable to non-RV activities.
•We expect a combination of Omicron absenteeism and
supplier shortages to impact productivity in H2.
NZD $M
FY22
FY21
VAR
%
Revenue
30.5
22.2
8.3
37%
Costs
(28.0)
(21.5)
(6.5)
(30%)
EBIT
2.5
0.7
1.8
247%
6 Months to December
11
Action continues to increase FTE and capacity ahead of the anticipated fleet regrowth
phase as well as growth in the non-RV segment.
Supplier management is a key focus and price increases are common but margins are
being managed well through cost out design briefs and pass through to end customers.
New design project underway for facelifted thlrentals and direct to sales vehicles,
launching in H2 FY22.
Assessing options for relocation of Albany facility to align with expiration of lease at the
end of 2022.
1
2
3
4
2 0 2 2 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 Group
19
•Manufactures recreational vehicles for thlrentals businesses in
New Zealand and Australia, operatingfrom Auckland and Hamilton
•Manufactures specialised commercial vehicles for customers
including St John Ambulances, New Zealand Defence Force and NZ
Police, operating from Hamilton
•Approximately 200+ FTE across both businesses
•FY21 RV revenue of approximately $23M and non-RV revenue of
approximately $16M
•A provider of heavy transport solutions, known for its
innovative fibreglass one-piece moulded truck and trailer
bodies
•Operating from two sites in Hamilton and South Auckland with
approximately 35 FTE
•FY21 annual revenue of approximately $4.5M
•A general freight manufacturer trading under the brands
Maxicubeand Freighter
•Operating from two sites in Auckland and Christchurch with
approximately 55 FTE
•FY21 annual revenue of approximately $18M
•In January 2022, Action entered into a conditional
agreement to acquire the New Zealand business of
MaxiTRANSfor approximately $5.7M. The transaction is
subject to approval from the New Zealand Commerce
Commission.
•Subject to clearance, the acquisition is expected to complete
in May 2022.
•Action Manufacturing will continuetoexplore further
opportunities for small bolt-on acquisitions that
complement its core competencies.
2 0 2 2 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
Tourism
20
•EBIT loss of $2.4M, down $1.9M on the pcp.
•The pcp includes $1.34M of funding for the Waitomo
business under the Strategic Tourism Asset Protection
Programme(STAPP),which came to an end on 30 June 2021.
•Discover Waitomo revenue down 67% due to loss of STAPP
funding and Auckland and Waikato being in extended
lockdown for a significant portion of the period.
•Discover Waitomo maintains ongoing engagement with the
Waitomo community and TangataWhenua with inaugural
Matarikifestival and first commercial full immersion TeReo
Māori tour developed for TeWiki o teReo Māori.
•The business won the Recreation Aotearoa environmental
leadership award and was a finalist in the Qualmarkawards
and Waikato Business Awards.
•Kiwi Experience remains in hibernation until there is greater
certainty regarding the return of international tourism.
thl is partnering with the Department of Conversation under the
Kaimahi for Nature programme to protect the environment and save
jobs in the Waitomo community. The programme has retained 26 jobs,
ensuring our crew remain within the community and with their hapū,
learn new skills, and achieve significant conservation outcomes. Some of
the highlights of 2021 include over 18,000 hours of conservation work,
supporting Matarikicelebrations at TokikapuMarae, planting 7,000
native trees along riparian margins, and maintaining historically and
culturally significant tracks and reserves within the Manaiapotoregion.
NZD $M
FY22
FY21
VAR
%
Revenue
0.8
2.6
(1.8)
(67%)
Costs
(3.3)
(3.1)
(0.2)
(6%)
EBIT
(2.4)
(0.5)
(1.9)
(387%)
6 Months to December
Kaimahi for Nature in Waitomo
2 0 2 2 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
review –Rest
of World
21
2 0 2 2 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
Australian Rentals & Sales
22
•EBIT loss of A$0.9M, improved on the pcp by A$1.5M, and a
positive outcome in a period where the business was heavily
disrupted due to state border closures.
•State border closures were managed more effectively than in the
pcp, leading to rental revenue income increasing on the pcp
despite the decline in tourism rental activity.
•The business also generated NZ$2.5M in non-tourism activity.
Refer to slide 29.
•Strong operational cost management resulted in costs remaining
approximately in line with the pcp, despite the pcp including
A$2.0M in Government wage subsidies.
•Pleasinglythe opening of Australian borders hasbeen announced
earlier than expected, however at this stage the timing and extent
of the return of international tourism remains unclear.
Half Year
NZD $M
FY22FY21
VAR
VAR %
Rental income15.714.01.712%
Sale of goods
(1)
16.215.90.32%
Costs(32.9)(32.5)(0.3)(1%)
EBIT(1.0)(2.6)1.763%
(1)
Excludes sale of buyback fleet.
6 Months to December
6.1
8.2
8.6
(2.6)
(1.0)
(4)
(2)
-
2
4
6
8
10
Australia
NZ$M
H1 Australia Rentals & Sales EBIT
H1 FY18H1 FY19H1 FY20H1 FY21H1 FY22
Half Year
AUD $M
FY22
FY21
VAR
VAR %
Rental income
14.9
13.1
1.8
14%
Sale of goods
(1)
15.4
14.8
0.6
4%
Costs
(31.3)
(30.3)
(0.9)
(3%)
EBIT
(0.9)
(2.4)
1.5
62%
(1)
Excludes sale of buyback fleet.
6 Months to December
2 0 2 2 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
Australian fleet
23
•Demand for vehicle sales continues to remain strong in this
market.
•Growth in average sales margin relative to the pcp was
approximately 63%, to approximately A$24.7k per sale. The
growth is a result of the current market environment, a greater
volume sold through the direct channel with RV Sales Centre
and the mix of vehicles sold.
•Vehicle sales volumes were in line with the pcp, with a total of
214vehicles sold (excluding buybacks), including 21 new
vehicles. Volumes were managed in order to maintain the fleet
size required to service returning rental markets.
•The business is focused on offering an increasing mix of new
retail fleet in the RV Sales Centre.
•Supply chain issues continue from chassis to componentry but
have not had a material impact to date. The disruption will
continue to be managed through 2022.
11.3
12.2
13.3
16.1
24.7
0.0
5.0
10.0
15.0
20.0
25.0
30.0
AUD $000
Average sales margin per vehicle
FY18FY19FY20FY21H1 FY22
Historical norm
Vehicle Fleet
6 Months to December
Units:
FY22
FY21
VAR
VAR %
Opening Fleet
1,208
1,441
(233)
(16%)
Fleet Sales
(314)
(273)
41
15%
Fleet Purchases
224
59
165
280%
Closing Fleet
1,118
1,227
(109)
(9%)
1
H1 FY22 includes sale of 100 buyback vehicles and excludes non-fleet sales.
2
H1 FY22 includes purchase of 60 buyback vehicles.
1
2
2 0 2 2 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
United States Rentals & Sales
24
•EBIT of US$7.9M, down US$3.1M on the pcp.
•The variance on the pcp is in line with expectations, as
previously advised in thl’s Annual Results Investor
Presentation.
1
•Despite the decline on the pcp, domestic rental demand
remains above pre-COVID levels.
•Some level of international tourism returned in the last two
months of the half, providing good activity over the normally
quiet winter period.
•At this stage there is a positive level of international forward
bookings for the upcoming 2022 summer period.
1
Refer to slide 19 of thl’s Annual Results Investor Presentation released on
26 August 2021.
Half Year
NZD $M
FY22
FY21
VAR
VAR %
Rental income
26.9
36.2
(9.3)
(26%)
Sale of goods
53.0
65.6
(12.6)
(19%)
Costs
(68.7)
(85.2)
16.6
19%
EBIT
11.2
16.6
(5.4)
(32%)
6 Months to December
Half Year
USD $M
FY22
FY21
VAR
VAR %
Rental income
18.8
24.2
(5.4)
(22%)
Sale of goods
37.0
43.8
(6.8)
(16%)
Costs
(47.9)
(57.0)
9.1
16%
EBIT
7.9
11.0
(3.1)
(28%)
6 Months to December
18.8
18.4
12.4
16.6
11.2
-
2
4
6
8
10
12
14
16
18
20
United States
NZ$M
H1 USA Rentals & Sales EBIT
H1 FY18H1 FY19H1 FY20H1 FY21H1 FY22
2 0 2 2 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
United States fleet
25
•A net reduction in fleet size of 349 vehicles across H1 with the
business maximizing the current vehicle sales environment.
•Average vehicle sales margin grew by 191% on the pcp, to
approximately US$22.7k.
•Fleet management through the mix of vehicles sold has resulted in
the youngest fleet in thehistory of Road Bear and El Monte, at an
average age of approximately 10 months. This sets the business up
for strong average yield due to the newer product proposition in
the coming years.
•Fleet size is being managed for expectations in 2023 and 2024 in
order to maximize the opportunity from inbound travel from
Europe, ongoing elevated domestic rental demand due to RV
category growth and market share gains from competitors exiting
during the pandemic period.
•Supply chain challenges and inflation are apparent. While there are
uncertainties around vehicle supply, at this point in time there is
confidence that the business will get the fleet that is required for
the coming year.
•Expectations are that supply chain issues are likely to take longer
than previously anticipated to resolve and could impact fleet supply
for CY23.
6.5
5.7
10.6
22.7
0.0
5.0
10.0
15.0
20.0
25.0
USD $000
Average sales margin per vehicle
FY19FY20FY21H1 FY22
Historical norm
Units:
FY22FY21
VAR
VAR %
Opening Fleet1,487 1,842 (355) (19%)
Fleet Sales(559)(870)(311)(36%)
Fleet Purchases210-210-
Closing Fleet1,13897216617%
1
H1 FY22 includes 2 write-offs.
Vehicle Fleet
1
2 0 2 2 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
Equity investments
26
•These part-owned businesses are/were not controlled by
thland are/were equity accounted. The results are/were
not reported in the Earnings Before Interest & Tax (EBIT).
•thl’s 49% shareholding inJust go provided a net profit
after tax of approximately $1.2M, up 46% on the pcp. As
a relative measure to the pre-COVID environment, this
compares to net profit after tax results of approximately
$0.3M in H1 of each of FY19 and FY18.
•A strong performance that capitalisedon pent up
demand seen in the region following the relaxation of
lock down restrictions in the UK.
•thl has a desire to move to 100% of the Just go business
regardless of whether the Apollo merger transaction
proceeds and the joint venture partner is aware of thl’s
interest. However, no agreement has been reached as to
the terms on which any such acquisition might occur,
including as to timing or value.
NZD $M
FY22
FY21
VAR
%
Action Manufacturing*
–
0.2
(0.2)
NA
Just go
1.2
0.8
0.4
46%
Total
1.2
1.0
0.2
17%
6 Months to December
* Action Manufacturing became a wholly owned subsidiary on 28 February 2021. FY21 reflects the
result prior to Action Manufacturing becoming wholly-owned.
2 0 2 2 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
NZD $M
FY22
FY21
VAR
%
Revenue
0.8
1.3
(0.5)
(38%)
Costs
(3.9)
(3.7)
(0.2)
(5%)
EBIT
(3.1)
(2.4)
(0.7)
(29%)
6 Months to December
Group support services and other
27
•Group support services net expenditure of $3.1M, up $0.7M on
the pcp.
•Includes $2.1M in transaction costs in the half related to the
proposed merger with Apollo.
•Software development costs relating to the Cosmos booking,
scheduling and fleet management platform were previously
reflected in the ‘group support services and other’ P&L.
However, these are now being recharged to the New
Zealand/Australian Rentals businesses and will therefore be
reflected in the P&Ls for those businesses.
•Group support services expenditure in H2 FY22 is expected to
include approximately $4.0M in further transaction costs
related to the proposed merger with Apollo (inclusive of success
fees).
1
Includes thl digital and intercompany eliminations relating to vehicles sold by Action Manufacturing to
the thlRentals businesses.
2
H1 FY22 includes $2.1M in transaction costs.
1
2
•thl has recently received an indication from Thor Industries that they are
open to discussing an early buyout of the thlpreference shares in Roadpass
Digital (previously Togo Group) at a discount to the buyout value of those
shares.
1
thl is considering its position and is likely to enter into negotiations
over the coming weeks. There is no certainty that a transaction will occur.
1
Thor Industries has a buy-out right, valid to March 2024, to purchase thl’s shareholding in
RoadpassDigital for US$20.18M.
2 0 2 2 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
Other
initiatives
28
2 0 2 2 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
Non-Tourism Revenue
29
•Throughout the pandemic, thl has run a non-tourism programme, finding
alternative rental uses for vehicles. This has continued to deliver strong
revenue and has seen thl’s campers support a range of essential services.
•Across the half, thl has supported 73 non-tourism customers at a total
revenue of approximately NZ$6.3M across New Zealand, Australia and
the United States, in approximately equal proportions.
•Customer use cases include:
•Health: mobile vaccination, testing clinics
•Emergency housing: disaster response, social housing, quarantine
•Infrastructure: rural project accommodation, business BCPs,
supporting repairs following natural disasters
•Film: rural project accommodation, actor greenrooms
•Emergency services: rural response accommodation, mobile
lounges
•We see a continued demand pipeline across all of these use cases
through the remainder of FY22.
2 0 2 2 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 Business Benchmark
•We remain committed to becoming a Future-Fit business, using
the Future-Fit Business Benchmark to improve our social and
environmental performance.
•Weidentified11priorityFuture-FitBreak-even(BE)goals(see
right)whereweneedtomakemostprogress,andcanhavethe
mostimpactasabusinessinthetourismandtravelsectors.
•OurGlobalFuture-Fitprogrammedrivessystemicprogress
acrossall23Future-Fitgoals.Aprogressupdateisprovidedon
thefollowingpage,andwewillsharemoredetailed
informationinournextFuture-FitPioneerdisclosureand
IntegratedAnnualReportlaterthisyear.
Priority 1: Tackle the three biggest challenges –where we are off track, the impact is
severe and our Fitness is low
•BE17: Productsdo notharmpeople or the environment
•BE18: Productsemit nogreenhouse gases
•BE04: Procurementsafeguards thepursuit of future-fitness
Priority 2: Make progress-close current gaps to prevent harm and achieve 100% Fitness
•BE11: Employees are paid at least athl Future Fit wage
•BE16: Productconcernsare actively solicited, impartially judged and transparently addressed
•BE08: Operationsdo notencroachon ecosystems or communities
•BE09: Community healthis safeguarded
•BE14: Employee concernsare actively solicited, impartially judged and transparently addressed
Priority 3: Address data and knowledge gapsto be able to accurately assess and address
impacts
•BE05: Operational emissionsdo notharmpeople or the environment
•BE06: Operationsemit nogreenhouse gases
•BE19: Productscan berepurposed
At thlwe work with aFuture-Fit mindset and methodology.
30
2 0 2 2 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
Progress Update: Future-Fit Global Work Programme
Climate and Carbon Strategy
•Future Fleet programme: our global Technical Team monitors opportunities to transition to lower emissions fleet in each region
•Climate risk and opportunity disclosures: we are developing a report aligned with Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
This will be launched in our FY22 Integrated Annual Report, in advance of NZX and XRB requirements.
•Carbon management:A review of our Carbon Footprint (greenhouse gas) inventory including Scope 3 emissions is underway. This will inform work to set a
science-based target and pathways for de-carbonisation.
Sustainable Procurement
•Sustainable procurement pilot in Australia completed, and our new sustainable procurement framework is being rolled out globally. This includes a new Supplier
Code of Conduct, training for key staff in sustainable procurement and Future-Fit hotspot analysis for key suppliers.
Accelerate –Partnerships for positive impact
•We continue to support programmes focused on responsible and regenerative travel and that have a positive impact in communities and destinations through
Travel with Heart in the USA, the TiakiPromise in NZ, Ecotourism Australia accreditation. We are developing our cultural capability plan globally, and building our
cultural awareness and engagement with Aboriginal and Torres Strait Islander stakeholders in Australia through a Reconciliation Action Plan.
Ignition –Future-Fit branches
•All our branches globally now have Future-Fit Branch Action Plans in place, targeting improvement in five focus areas where branch activities have most impact:
energy, water, waste, operational emissions and community contribution.
•New Branch Carbon Impact reports have been designed to track progress, these are currently being rolled out globally.
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P R E S E N T A T I O N
Outlook
32
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P R E S E N T A T I O N
Outlook
33
•On a standalone basis, thl’sresult for H2 FY22 (excluding transaction costs of NZ$4.0m that are expected to be incurred in that half) is expected to be
a net loss after tax that is improved on the pcp.
1
•Net capital expenditure expectations for FY22 are narrowed to between $25M -$40M.
2
•New Zealand:Recent New Zealand Government border announcements, including ongoing self-isolation periods, mean that international leisure
travel to New Zealand remains uncertain. We expect that the self-isolation requirements will be dropped some time mid-year, however that may be
too late to ignite significant long-haul travel for the 2022/2023 summer season. Vehicle sales demand and margins are expected to remain at current
levels for the near term. Action Manufacturing and retail activity is expected to remain positive.
•Australia: Recent Government announcementsof an opening of the border for international travel, including WA, is seen as very positive. We have
an expectation that both domestic and international travel willbe well up on recent activity from Marchonwards. We have no prediction
oninternational demand relative to pre-COVID levels.
•United States:International interest and early forward bookings for the USA summer are positive, but booking trends are not in line with pre-COVID
demand levels due to theOmicron interruption to December-January bookings fromthe key European and UK markets. We remain positive that we
will achieve peak utilisationin July 2022, with less certainty on how the shoulder seasons will perform. Vehicle salesmargins are expected to remain
at or near the current elevated levels for at least the remainder of FY22.
•We expect that supply chain and inflation related pressures will continue. Earlier expectations were that these pressures would subsidein FY22,
however we now expect they will remain for CY22.
•We continue to have a positive long-term outlook for global tourism and long-haul travel. Timing of a recovery in New Zealand, and the extent to
which each market returns to pre-COVID demand levels remains uncertain.
•The business remains focussed on adapting to market and regulatory changes as they occur, retaining as much flexibility as possible, managing costs
as appropriate and putting appropriate energy into the effective execution of theApollo merger.
1
thl'sstatutory net loss after tax for the second half of the financial year ending 30 June 2021, being the pcp, was a loss of NZ$12.7M.
2
Earlier guidance provided on 10 December 2021 noted expectations of net capital expenditure for FY22 to be at the lower end of $25M -$60M.
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P R E S E N T A T I O N
General notes
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P R E S E N T A T I O N
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P R E S E N T A T I O N
Important notes
35
General
•All financials are in NZ dollars unless stated otherwise (throughout presentation).
•All comparisons are against prior corresponding period (pcp) unless stated otherwise.
•The average NZD:AUD cross-rate (average of the six months rates) for H1 FY22 was 0.9518 (H1 FY21 -0.9329).
•The average NZD:USD cross-rate (average of the six months rates) for H1 FY22 was 0.6969 (H1 FY21 -0.6756).
•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 interest bearing loans and borrowings less cash and cash equivalents.
•The balance sheet is converted at the closing rate as at 31 December 2021. The USD cross-rate used was 0.6832(H1 FY21 –
0.7227); the AUD cross-rate used was 0.9421 (H1 FY21 –0.9384) and the GBP cross-rate used was 0.5061 (H1 FY21 –
0.5297).
•H1 FY22 includes a non-recurring expense of $2.1M in respect of transaction costs relating to the proposed merger with
Apollo Tourism & Leisure Limited.
•H1 FY21 includes a non-recurring accounting gain of $1.2M (inclusive of tax) from the termination of the lease for the
Mangere branch.
•The depreciation expense and interest expense recognised in H1 FY22 in relation to IFRS 16 Leases is $4.8M (H1 FY21:
$3.9M) and $1.7M (H1 FY21: $1.7M), respectively. The actual lease payments during the period were $6.5M (H1 FY21:
$5.4M).
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P R E S E N T A T I O N
Accounting implications relating to 100% Action ownership
36
•As a 50/50 joint venture, Action Manufacturing previously recogniseda profit on the sale of vehicles to the thl Rentals
businesses as its customer. 50% of this profit would then be attributed to thl as the 50% shareholder of Action Manufacturing.
•As Action Manufacturing is now a wholly-owned subsidiary, the sale of vehicles to thl are now an intercompany transfer and
so the profit on the sale is not recognisedat a group level.
•From a divisional accounting perspective, we continue to manage these businesses consistent with our pre-acquisition
approach, to ensure that the appropriate incentives and competitive motives remain with both Action Manufacturing and thl
Rentals as if the transactions were between businesses at arms-length.
•While Action Manufacturing continues to recognisethe profit on the sales at a division level, this profit is eliminated at the thl
group level and results in a lower book value for the vehicle (based on the cost of production with no manufacturing margin).
•As the starting book value is lower, the depreciation expense incurred at a group level during the time the vehicle is owned by
thlis also lower. The depreciation expense incurred at the thl Rentals level is consistent with the previous approach.
2 0 2 2 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
Thank you
37
2 0 2 2 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
Supplementary
information
38
2 0 2 2 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
2 0 2 2 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
39
$MFY22FY21VARVAR %
thl Rentals
New Zealand(7.0)(10.8)3.9 36%
Australia(1.0)(2.6)1.7 63%
USA11.2 16.6 (5.4)(32%)
Total Rentals3.3 3.1 0.2 6%
Action Manufacturing1.1 0.0 1.1 NA
Tourism Group(2.4)(0.5)(1.9)(387%)
Total operating divisions2.0 2.6 (0.6)(25%)
Group Support Services & Other (3.1)(2.4)(0.7)(29%)
Total EBIT(1.1)1.8 (2.9)(163%)
EBIT before non-recurring items1.0 0.2 0.8 386%
One-off gain on lease termination 0.0 1.6 (1.6)NA
One-off transaction project cost(2.1)0.0 (2.1)NA
Total non-recurring items(2.1)1.6 (3.7)
Split
Australia(1.0)(2.6)1.6 62%
USA11.2 16.6 (5.4)(33%)
New Zealand(11.4)(12.1)0.7 (6%)
Total EBIT(1.1)1.8 (2.9)(161%)
Split
Australia(1.0)(2.6)1.6 62%
USA11.2 16.6 (5.4)(33%)
New Zealand(9.3)(13.7)4.4 32%
Total EBIT before non-recurring items1.0 0.2 0.8 400%
Total EBIT before non-recurring items
Australia (AUD)(0.9)(2.4)1.5 63%
USA (USD)7.9 11.8(3.9)(33%)
6 M onths to De ce mbe r
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P R E S E N T A T I O N
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P R E S E N T A T I O N
$M
FY22
FY21
VAR
VAR %
Sale of services
50.3
68.8
(18.5)
(27%)
Sale of goods
124.6
137.0
(12.4)
(9%)
Total revenue
174.9
205.8
(31.0)
(15%)
Costs
152.9
178.4
(25.5)
(14%)
EBITDA
21.9
27.3
(5.4)
(20%)
Depreciation & Amortisation
23.1
25.5
(2.4)
(10%)
EBIT
(1.1)
1.8
(3.0)
(162%)
Interest
(4.9)
(5.7)
0.8
13%
Share of Joint Ventures
–
0.2
(0.2)
100%
Share of Associates
1.2
0.7
0.4
57%
Loss before taxation
(4.9)
(2.9)
(2.0)
68%
Taxation
0.5
1.2
(0.6)
54%
Loss for the period
(4.4)
(1.8)
(2.6)
(147%)
Loss is attributable to:
Equity holders of the Company
(4.0)
(1.4)
(2.6)
(182%)
Non-controlling interest
(0.3)
(0.3)
–
(4%)
Basic EPS (in cents)
(2.7)
(1.0)
Diluted EPS
(2.7)
(1.0)
6 Months to December
Income statement summary
40
* Based on number of shares on issue at 31 December.
*
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P R E S E N T A T I O N
2 0 2 2 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
41
$MFY22FY21VARVAR %
thl Rentals - Rental Revenue
New Zealand6.214.6(8.4)(58%)
Australia15.714.01.7 12%
USA26.936.2(9.3)(26%)
48.764.8(16.1)(25%)
thl Rentals - Sale of Goods
New Zealand55.455.6(0.2)(0%)
Australia16.215.90.3 2%
USA53.065.6(12.6)(19%)
124.6137.0(12.5)(9%)
Tourism Group0.82.6(1.8)(67%)
thl digital0.71.3(0.6)(44%)
Total Revenue174.9205.8(30.9)(15%)
Split
Australia31.929.92.0 7%
USA79.9101.8(21.9)(22%)
NZ and other63.174.1(11.0)(15%)
174.9205.8(30.9)(15%)
Revenue Split
Sale of Services50.368.8(18.5)(27%)
Sale of Goods124.6137.0(12.4)(9%)
174.9205.8(30.9)(15%)
Australia (AUD)
Rental Revenue14.913.11.8 14%
Sale of Goods15.414.80.6 4%
30.327.92.4 9%
USA (USD)
Rental Revenue18.824.2(5.4)(22%)
Sale of Goods37.043.8(6.8)(16%)
55.768.0(12.3)(18%)
6 Months to December
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P R E S E N T A T I O N
2 0 2 2 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
42
$M
FY22
FY21
VAR
VAR %
EBIT
(1.1)
1.8
(3.0)
(162%)
Add back non-cash items:
Depreciation
22.1
25.1
(2.9)
(12%)
Amortisation
0.9
0.4
0.5
117%
EBITDA
21.9
27.3
(5.4)
(20%)
$M
FY22
FY21
VAR
VAR %
EBIT before non-recurring items
1.0
0.2
0.7
320%
Add back non-cash items:
Depreciation
22.1
25.1
(2.9)
(12%)
Amortisation
0.9
0.4
0.5
117%
EBITDA before non-recurring items
24.0
25.7
(1.7)
(7%)
6 Months to December
6 Months to December
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P R E S E N T A T I O N
2 0 2 2 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
43
1
Calculated based on thlshares on issue at 31 December.
$MDec-21Dec-20VAR
Equity313.4 311.6 1.9
Non current liabilities66.2 69.1 (2.9)
Current liabilities45.8 67.2 (21.4)
Lease liabilities81.1 69.6 11.6
Total source of funds506.6 517.4 (10.8)
Intangible assets and goodwill52.3 45.9 6.3
Retained interest in Togo Group22.0 19.6 2.5
Investments in associates and joint ventures6.2 15.2 (9.0)
Property, plant and equipment235.1 267.0 (31.9)
Current assets121.0 110.6 10.3
Total use of funds506.6 517.4 (10.7)
Net debt position (exclude lease liabilities)18.7 22.0 (3.3)
Net tangible assets (NTA)261.2 265.6 (4.5)
NTA per share
1
$1.72$1.79
Book value of net assets per share
1
$2.06$2.10
Debt / debt + equity ratio (net of Intangibles)7%8%
Equity ratio (net of Intangibles)57%56%
AUD exchange rate at period end0.94210.9384
USD exchange rate at period end0.68320.7227
2 0 2 2 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
2 0 2 2 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
44
6 Months to December
$M
FY22
FY21
VAR
VAR %
Proceeds from sales of motorhome fleet
101.6
122.2
(20.6)
(17%)
Net book value of vehicles sold*
69.9
104.2
(34.2)
(33%)
Gain on sales of motorhome fleet before selling costs
31.7
18.1
13.6
76%
Vehicle sales costs (warranty only)
0.7
1.0
(0.2)
(24%)
Gain on sales of motorhome fleet after selling costs
31.0
17.1
13.9
81%
Gross profit on non-fleet vehicles, retail and accessory sales
8.7
3.0
5.7
188%
Reported gross profit*
39.7
20.1
19.6
97%
USA
Total average gain on sale ($000) after selling costs
24.7
9.6
15.0
156%
Fleet motorhomes sold (excl buybacks)*
AU
314
272
42
15%
NZ
382
630
(248)
(39%)
US
559
869
(310)
(36%)
Total fleet motorhomes sold (units), excl. buybacks
1,255
1,771
(516)
(29%)
Flex fleet sales on buy-backs excluded from above
FY22
FY21
AU
100
-
Total
100
-
Total fleet sales
AU
414
272
NZ
382
630
US
559
869
Total
1,355
1,771
* Write offs in H1 FY21 were higher than usual due to the Mangere branch fire in September 2020. Consequently
the book value of write offs in H1 FY21 are included in ‘Other income / (expenses), net’ in the income statement,
along with the insurance proceeds.
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P R E S E N T A T I O N
End
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.