Mcmillan Shakespeare Limited · ASX:MMS
Mcmillan Shakespeare — FY2008 Earnings Presentation
13 slides from Mcmillan Shakespeare's earnings presentation, Aug 19, 2008
Slide 1: Results Presentation and Analyst Briefing
For personal use only McMillan Shakespeare Limited Results Presentation and Analyst Briefing Michael Kay – CEO Mark Cansdale – CFO August 2008
Slide 2: Financial Performance
Financial Performance For personal use only FYE FYE % change on 30/06/2008 30/06/2007 prior year $’000 $’000 Revenue 66,624 54,536 22.2% EBITDA 25,596 20,199 26.7% EBIT 24,145 18,856 28.0% NPAT 17,368 13,237 31.2% Basic earnings per share (cents) 25.76 19.79 30.2% Dividends declared per share (cents
Slide 3: Key highlights for financial year ended 30 June 2008
Key highlights for financial year ended 30 June 2008 For personal use only Despite a year of transition and budgetary changes: Continued strong profitable growth in both salary packaging and novated leasing services. Introduced aftermarket products into RemServ, thereby increasing yield per sale. Ne
Slide 4: Key highlights for financial year ended June 2008
Key highlights for financial year ended 30 June 2008 (cont) For personal use only Anthony Podesta heading up innovation – number of extensions in development. P3 August 2008
Slide 5: Significant growth opportunities
Our core business has significant growth opportunities For personal use only Public Sector Public Health / PBIs 8% 10% • Australian workforce ≈ 10.7M employees Private Sector (BRW Top 1,000) 16% • 12% of the workforce currently salary packages (≈ 1.4M) • MSL target market 3.5M employees Currently Sa
Slide 6: Significant growth opportunities: participation rate by sector
Our core business has significant growth opportunities (cont) For personal use only Participation rate by sector. Salary Packaging Not Salary Packaging Participation Rates 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Public Health / PBIs Public Sector Private Sector Source: Industry estimates complet
Slide 7: Significant growth opportunities: PBI participation rate spread
Our core business has significant growth opportunities (cont) For personal use only Example of PBI participation rate spread (MMS clients). Participation Rate PBI 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Bluecare1 Employer MCRI 2 Employer Cerebral Employer 3 Salvos 4 Employer Amana 5 Employer Activ 6
Slide 8: Significant growth opportunities: novated leases and car sales
Our core business has significant growth opportunities (cont) For personal use only 80,000 900,000 800,000 70,000 700,000 60,000 Number of Passenger Vehicles 600,000 Number of Novated Leases 50,000 500,000 40,000 400,000 30,000 300,000 novated leases car sales 20,000 200,000 10,000 100,000 - - Dec-9
Slide 9: A compelling value proposition in an inflationary/high interest rate environment
Our core business has a compelling value proposition – particularly in an inflationary/high interest rate For personal use only environment Salary Packaging Example (Motor Vehicle Lease) • In the example above the employee $6,000 novates a fully maintained finance lease to their employer. $5,000 • T
Slide 10: A compelling value proposition (cont): Public Health / PBIs
Our core business has a compelling value proposition – particularly in an inflationary/high interest rate For personal use only environment (cont) Salary Packaging Example (Public Health / PBIs) $8,000 PBI Public Hospital • In the example above the $7,000 employee salary packages the $6,000 maximum
Slide 11: MMS in the context of current economic conditions
MMS in the context of current economic conditions For personal use only High exposure to non-cyclical sectors (Health/PBI’s). Annuity income streams. No debt. Strong cash flow. Minimal credit risk. Scale. P 10 August 2008
Slide 12: Outlook for 2008/09
Outlook for 2008/09 For personal use only Continuing growth in salary packaging through increased participation and new business. Continuing growth in novated leasing services through cross-sell into our salary packaging customers. Extended offering through product extensions and additional services
Slide 13: Outlook for 2008/09
Outlook for 2008/09 (cont) For personal use only Novated leasing business sensitive to a slow down in car sales, however: - MMS has minimal exposure to luxury cars; - MMS increasing its sales and average yield; - We are in line with our budget Y.T.D. We are investing in: - new business acquisition;