National Tyre & Wheel : Half Year Investor Presentation

only	Driving the Future
use
Financial Results
ersonal	Six Months to 31 December 2021
22 F bruary 2022

Agenda

only
Item	Page
use	1H22 Highlights	3
Performance & Strategy	6
	Financial Results	13
ersonal	Outlook	17
22 F bruary 2022		2

NTAW - Strategy Execution, 1H22 Highlights

Further development of a new growth platform & strategic acquisitions

		• National Tyre & Wheel Limited ("NTAW") is the largest independent tyre and wheel importer and wholesale distributor in Australia and
only	New Zealand.
• 1H21 revenue of $251.5 million (1H21: $212.4 million). Recent acquisitions take NTAW annualised revenue to approximately $560 million.
	Growth,
	diversity and	• Since 31 December 2018, NTAW revenue has grown at a CAGR of 28% and EBITDA has grown at a CAGR of 17% (in each case to 31
	scale
	December 2021).
		• NTAW imports approximately 2.7 million tyres and wheels per annum for almost all vehicle types for distribution to more than 3,000
		wholesale customers, with a retail arm also selling to consumers.
		• NTAW reported 1H22 Operating EBITDA of $20.4 million, consistent with 1H21 Operating EBITDA of $20.4 million.
	Financial	• NTAW's balance sheet remained strong with cash at 31 December of $45.0 million (net debt of $45.3 million) and Net Assets of $101.3
	million.
	Performance
use	• EPS based on Operating NPATA of $8.0 million was 7.0 cents per share.
ersonal	• Interim dividend of 3.0 cents per share (fully franked at 30%) declared.
	Strategy	• Organic growth will be driven by digital transformation, warehouse consolidations, restructuring at Tyres4U and Tyreright, support from
	Execution	Shared Service units and cross selling.
		• Acquisition of Black Rubber and Access Alloys (November 2021) and Carter's (January 2022) are all expected to be earnings accretive,
	Strategic	adding diversity and scale to NTAW.
	Acquisitions	• NTAW raised $19.9 million (14.75 million shares at $1.35) via a share placement and a Share Purchase Plan ("SPP") over December 2021
		and January 2022. The funds raised were used to fund the Carter's acquisition and for general working capital purposes.
			3

Financial Results Consistent with Expectations

Diversified earnings streams offset COVID and supply chain disruptions

only	• 1H22 Operating EBITDA of $20.4 million (1H21: $20.4 million) was generally consistent with expectations in a difficult market.
• Adverse COVID and supply chain impacts offset to some extent by having two months of Black Rubber earnings.
	• Earnings per share for 1H22 (based on Operating NPATA* of $8.0 million) amounts to 7.0 cents per share (1H21: 8.9 cents per share).
	• Interim Dividend of 3.0 cents per share (fully franked at 30% tax rate) declared.
use	• The following table reconciles Reported EBITDA to Operating EBITDA:
	$'000		1H22	1H21
	Net profit after tax	5,565	9,832
	Depreciation	7,445	6,040
	Amortisation	523	605
ersonal		Finance costs (net)	1,820	1,158
	Income tax expense	2,095	3,134
		Reported EBITDA		17,448	20,769
		Acquisition costs	674	1,418
		One-off IT project and warehouse consolidation costs	2,075	-
		Unrealised FX (gains) / losses	244	(739)
		Gain on bargain purchase	-	(1,058)
		Operating EBITDA		20,441	20,390

*Operating NPATA is based on NPATA attributable to NTAW shareholders, adjusted for non-recurring and abnormal items. See page 14.

22 F bruary 2022	4

1H22 Financial Highlights

A strong result in a difficult operating environment

onlyuse ersonal22 F bruary 2022

	Financial Highlights	1H22	1H21
	Gross profit margin	29.0%		28.4%
	Operating costs as a % of revenue	22.1%		18.6%
	EBITDA ($ million)	17.4		20.8
	EBITDA margin	6.9%		9.8%
	NPATA ($ million)	5.9		10.2
	Basic EPS (cents)	4.7		8.7
	Dividend per share (cents)	3.0		3.0
	Net debt ($ million)	45.3		18.2
	Net debt : debt+equity	23.4%		15.0%
	NTA per share (cents)	55.3		56.3
	Operating cash flow ($ million)	(4.3)		10.7
	Interest cover (times)	9.6x		17.9x

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