Mcmillan Shakespeare Limited · ASX:MMS
Mcmillan Shakespeare — Investor Presentation (April 2016)
37 slides from Mcmillan Shakespeare's investor presentation, Apr 4, 2016
Slide 1: Maxxia
MaxxIa Ajuo esn jeuosied 105
Slide 2: UK group update
UK group update For personal use only April 2016 2
Slide 3: Building the UK business
Building the UK business For personal use only Develop an integrated range of asset finance and management services Establish a market-leading business model to capture the opportunities brought from a unique proposition Launch and establish strong brands Drive for profitable revenue growth
Slide 4: Building the UK Business: What we have achieved to date
Building the UK Business For personal use only What we have achieved to date System upgrade & HMRC approval 300 customers development for novated lease JV formed Maxxia Finance Anglo Scottish Attracting ‘A’ established as a acquisition HMRC Launched rated market lender Lifestyle Lease Salesforce.com
Slide 5: The UK Business has an integrated range of asset finance products and services
The UK Business has an integrated range of asset finance products and services For personal use only • Proactive sales culture Strong marketing capability Managing vehicle fleet value Contract Hire/ Operating Lessors/ Fleet Managers Financial management chain: Vehicle Tax knowledge base Leasin
Slide 6: UK market
For personal use only UK market 6
Slide 7: UK forecasts
UK forecasts For personal use only 2015 2016 2017 2018 actual GDP 2.2% 2.0% 2.3% 2.2% Private consumption 3.0% 2.7% 2.1% 1.9% Business investment 4.7% 3.2% 6.5% 4.3% CPI inflation 0.1% 0.5% 1.6% 1.8% Average earnings growth 2.4% 3.1% 3.4% 3.5% Unemployment rate 5.4% 5.2% 5.1% 5.0% 7 Source: Oxford E
Slide 8: UK market
UK market Estimated 5.4 million private sector businesses £54 Billion of asset finance in 2015 For personal use only Annual car finance (business & consumer) - New car finance £25 billion - Used car finance £11 billion 2015 financing by asset class - £54 Billion Aircraft, ships and rolling stock fin
Slide 9: Key target sectors are car finance and business equipment finance
Key target sectors are car finance and business equipment finance For personal use only Manufacturer & dealer Personal Contract Purchase programmes are the largest part of the consumer car market. Brokers transact with higher-end new cars where there is limited subsidised PCP or Total market size ma
Slide 10: The journey
For personal use only The journey 10
Slide 11: Organisational structure
Organisational structure For personal use only Maxxia UK CLM Fleet Maxxia Ltd Maxxia Finance Anglo Scottish Management Sales origination Funder Sales origination (direct & wholesale) (brokers & dealers) Vehicle value chain 50% MMS owned 100% MMS owned 100% MMS owned management 100% MMS owned 11
Slide 12: Organisational structure
Organisational structure For personal use only Roger Skinner Gareth Shaw Julian Humphreys Chief Executive Officer Chief Financial Officer Chief Revenue Officer Total FTEs = 132 12
Slide 13: Since February 2013
Since February 2013: For personal use only Established JV and leadership team, started to build the business with investment in: Infrastructure Digital marketing & lead generation Sales resource Credit management Contract administration Legal funding contracts Funding arrangements with
Slide 14: Maxxia Finance
Maxxia Finance For personal use only Established in August 2013 to support and enhance the integrated range of asset finance services offered, benefiting the UK development through: Interest income margin earned on high quality customers Build the Maxxia brand as a lender with customers Custom
Slide 15: CLM supports the delivery of our Fleet, Contract Hire and Lifestyle Lease services
CLM supports the delivery of our Fleet, Contract Hire and Lifestyle Lease services For personal use only - 40 years in fleet management and 70 staff acquired in October 2013 - Operational capability for the launch of additional automotive financial services - Strong customer base available for cross
Slide 16: CLM is the integrated financial services model platform
CLM is the integrated financial services For personal use only model platform Investment in systems Investment in people Investment in the Lifestyle Lease product & related resource Funding flexibility through capital light structures Focus on growth strategy 16
Slide 17: Acquired November 2015
Acquired November 2015 For personal use only Strong A platform for Strong distribution channel to grow origination capabilities + broker aggregation = origination through an enhanced suite of integrated financial products and services 17
Slide 18: UK asset finance broker market
UK asset finance broker market For personal use only The UK has approximately 750 finance brokers of varying sizes. These asset finance brokers are widely distributed, with some concentrations in industrial towns and particularly where banks' asset finance offices used to be based. Scotland 50 North
Slide 19: Maxxia has a superior value proposition which will drive broker aggregation
Maxxia For personal use only Has a superior value proposition which will drive broker aggregation FCA compliance umbrella Financial accounting and planning Marketing capability and competence Providing operational management and Sales systems and competence resources Strategic thinking a
Slide 20: Diversified revenue sources
Diversified revenue sources For personal use only Revenue is earned from multiple streams across the integrated model Annuity income from funded assets (Maxxia Finance) Brokerage from placement of finance CLM earns management fees from customers and in life revenue from the vehicle value chain
Slide 21: Case studies
For personal use only Case studies 21
Slide 22: Results
Results With he financing arranged, Framptons comple its expansion proje t and the equipment is now operational. The incre ess to compete for and win new contracts. The aim of the p was not only to increase production cap ty but also grow the ned certainly hap Framptons are now able to manage the ve
Slide 23: Results
a = O a) @ S © = s) ” — © a. — O Le Results School managers and govern ere all briefed on the uutions provided and the terms around the le: his also extended to members of staff as they joined the school The Green School was able to replace all of the IT systems that they needed in order to provide
Slide 24: Specifics of solution
a = O a) @ S © = s) ” — © a. — O Le Specifics of solution B M Injection were looking to acqu his latest piece of equipment on a hire purchase basis. This would mean there was a minimal capital outlay and manageable monthly payments. Having found the milling machine they were looking for, B M Injecti
Slide 25: Why CLM?
For personal use only BEDFORD BOROUGH COUNCIL Why CLM? With over 30 years’ experience we provide vehicle rentals on passenger cars, light commercial veh and minibuses, plus more specialist vehicles if required Our comprehensive suite of rental solutions covers ehicle and rental period from 1 day to
Slide 26: Why CLM? Results
Why CLM? Results CLM has been the specialist fleet management Provided the client with the ideal end-to-end partner of Center Parcs since 2007, form! turnkey package of v hicle management a successful partnership under an outsource including accident rep arrangement that has seen the two companies w
Slide 27: Success stories
Success stories For personal use only Anglo Scottish • Funding to fill a shortfall in property valuation • Satisfied client and bank • Working capital facility to cover seasonality in income • Unsecured facility repayable over 12 months 27
Slide 28: Pig farm facility with renewable electricity production capability
For personal use only Pig farm facility with sophisticated renewable electricity production capability Power grid enforced transformer upgrade to meet increased feed in capacity 28
Slide 29: Maxxia LifestyleLease
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Slide 30: Maxxia LifestyleLease is the risk free salary sacrifice car scheme
Maxxia LifestyleLease is the risk free -qemmp—=ae salary sacrifice ———_ SD car scheme - fm <)> 30
Slide 31: Lifestyle Lease employer benefits
For personal use only + Scheme is designed to hold employer at no risk + Lifestyle Lease has the ability to deliver a saving to the employer through NIC reduction + Reduced grey fleet and associated health and safety issues + Significant enhancement of the reward package + Encourages employees to dr
Slide 32: Lifestyle Lease employee benefits
For personal use only + Significant savings with Lifestyle Lease compared with leasing and insuring a car privately + Includes motor insurance and maintenance for the full contract period – just add fuel! + Benefit of hassle-free motoring for a fixed monthly payment + Tax-efficient – reduces tax and
Slide 33: Moving forward
For personal use only Moving forward 33
Slide 34: Strategic objectives
Strategic objectives For personal use only • The leading provider of a fully integrated financial services offering • The leading provider of a portable employee lease • The aggregator of choice to the finance intermediary / broker community • Maxxia to become a strongly recognised financial service
Slide 35: The market leading integrated finance offering
For personal use only + + = The market leading integrated finance offering 35
Slide 36: Appendix
For personal use only Appendix 36
Slide 37: Summary financials
For personal use only Summary financials $000’s 1H16 1H15 Revenue 10,379 5,360 Lease and vehicle management expenses 1,502 430 Employee and other expenses 7,093 3,718 EBITDA 1,784 1,212 EBITDA margin 17.2% 22.6% Segment NPAT 362 84 NPAT margin 3.5% 1.6% Segment UNPATA 614 237 UNPATA margin 5.9% 4.4%
McMillan Shakespeare — Investor Presentation (April 2016) on 6ix