Ann: EBITDA Guidance, page-24

Hi MTO holders,

Can anyone clarify bailment financing please? Its gone up from near zero in Fy21 to about $25mil in FY22 and near $50mil in Fy23.

The way i understand it is that MTO buys inventory (i.e. a motorcycle) using debt/financing from a third party. This third party charges 9-15% interest per annum. At sale, the debt is immediately paid by MTO and MTO become the asset owner momentarily. MTO then sell the motorcycle to the customer with some expected profit.

So what exactly is the the inventory turn over? How many months does a motorcyle sit at the sale floor prior to a sale? It doesn't seem turnover is reported. Why? Doesn't bailment destroy margin on the sale? how is paying 9-14% interest on inventory even viable?

Also any comment on the $3mil that goes from MTO into the pockets of management every year for lease payments?