Smartgroup Corporation Ltd · ASX:SIQ
Smartgroup — Investor Presentation (February 2025)
32 slides from Smartgroup's investor presentation, Feb 26, 2025
Slide 1: 2024 Full Year Results
Smart Group Smartgroup. CY 2024 Investor Presentation 2024 Full Year Results Scott Wharton Jason King Managing Director and CEO Chief Financial Officer
Slide 2: Acknowledgement of Country
Smart Group Acknowledgement of Country Artist Statement Smartgroup acknowledges the Custodians of Country throughout Australia. Co-existing with Mother Earth from the first days of understanding of kinship and the importance of caring for Country. Preparing for the future and prospering by We pay ou
Slide 3: Contents
Smart Contents 01 — 2024 Full Year Highlights 02 — Strategic Priorities Update 03 — 2024 Full Year Performance 04 — Summary and Outlook
Slide 4: 2024 Full Year Highlights
Smart Group Smartgroup. CY 2024 Investor Presentation 01 — 2024 Full Year Highlights
Slide 5: 2024 Performance Highlights
Smart Group 2024 Performance Highlights Strong financial performance Customer growth Novated leasing growth Strategic Priorities • Revenue of $305.8m, up 22% v pcp • 445,000 active customers at December 24, • 20% growth in leasing settlements v pcp • Successfully delivered first year of Strategic •
Slide 6: 2024 ESG Highlights
Smart Group 2024 ESG Highlights S&P Global Dow Jones WGEA Ranked 93rd percentile Included in the global Employer of Choice worldwide in S&P Dow Jones for Gender Equality Global CSA Sustainability Indices (up from 87th percentile in 2023) Customers ESG Risk Inclusive Performance ESG Risk rating of 11
Slide 7: Investment proposition
Smart Group Investment proposition Leading player with • Positioned as a market leader in salary packaging and 541,000 ~2.3m Leading, diversified exposure • novated leasing Broad product offering incl. exposure to fleet management LTM salary packaging potential customers in customers1 resilient exis
Slide 8: Strategic Priorities
Smart Group Smartgroup. CY 2024 Investor Presentation 02 — Strategic Priorities
Slide 9: Our addressable market is a significant growth opportunity
Smart Group Our addressable market is a significant growth opportunity Total filled jobs • There are over 15 million employed ~ 11.5m ~ 2.4m ~ 2.0m Australians, of those circa 14 million earn a in Australia1: salary above $20k, and can benefit from Estimated number of employed salary packaging ~ 10.
Slide 10: Our Strategic Priorities and focus
Smart Group Our Strategic Priorities and focus Our ambition Smarter Benefits for a Smarter Tomorrow Simplifying benefits and adding value to our clients and customers, while enabling businesses to attract and retain great teams as we build a more sustainable Australia. Our focus Smarter Experiences
Slide 11: Delivering Smarter benefits for a Smarter tomorrow
Smart Group Delivering Smarter benefits for a Smarter tomorrow Solid progress on our Strategic Priorities Customer-focused, digital and Leadership in Novated Leasing Innovation of propositions to Targeted investment in fleet efficient salary packaging via EVs meet growing customer needs capabilities
Slide 12: Investment in digital
Smart Group Investment in digital Improving customer journeys New digital home – Benefits tailored by Additional benefits Seamless journey to car smart.com.au customer industry through Smartrewards leasing portal 12 Smartgroup. CY 2024 Investor Presentation
Slide 13: Investment in digital
Smart Group Investment in digital Enhanced car leasing portal Customisable car features Transparent comparison of Simple car leasing journey Side-by-side car comparisons car financing options and variants 13 Smartgroup. CY 2024 Investor Presentation
Slide 14: 2024 Full Year Performance
Smart Group Smartgroup. CY 2024 Investor Presentation 03 — 2024 Full Year Performance
Slide 15: Positioning to drive scalability
Smart Group Positioning to drive scalability Increasing eligible Increasing customer Increasing customer customer base1 penetration1 lifetime value ~2.34m 19% 17% 18% 18% 15% ~2.16m ~2.16m 15% 2022 2023 2024 2022 2023 2024 2022 2023 2024 Novated leases % of packages Number of eligible employees Aver
Slide 16: Record customer numbers across all key product lines
Smart Group Record customer numbers across all key product lines Active salary packages Novated leases Fleet managed 500,000 under management vehicles 90,000 450,000 43,000 445,000 140,000 80,000 400,000 396,000 6,000 402,000 120,000 70,000 60,000 100,000 350,000 50,000 80,000 9,700 74,300 300,000 6
Slide 17: EV and ICE orders continue to grow
Smart Group EV and ICE orders continue to grow New orders growth (ICE and EVs) • Availability of EVs was generally good, with various EV manufacturers having promotions for car deliveries by 31 December 2024 • ICE orders grew 12% with improving availability • ICE accounted for 56%, EV accounted for
Slide 18: Strong leasing demand and yield sustained
Smart Group Strong leasing demand and yield sustained Strong customer demand • Customer interest was strong in novated leasing • Ongoing customer education on benefits of novated leasing Vehicle delivery timeframes continue to improve • Total pipeline future revenue of c.$12m at the end of December
Slide 19: Delivery timeframes continued to improve
Smart Group Delivery timeframes continued to improve 90 Average Vehicle Order to delivery timeframes (for Smartgroup top 30 makes/models by volume) 80 70 60 • Improvement in Vehicles Delivery timeframes, but still 50 Days above historical levels (>20 days) 40 • Some variation across makes and models
Slide 20: Strong revenue growth delivers earnings uplift
Smart Group Strong revenue growth delivers earnings uplift $m CY 20241 CY 2023 Change % Revenue 305.8 251.6 22% Product costs (cost of sales) (13.9) (9.6) 45% Net revenue 291.9 242.0 21% Staff expenses (124.1) (103.8) 20% Other expenses (49.1) (37.9) 30% • Novated leasing and new clients drive stron
Slide 21: High cash conversion at 108% of NPATA
Smart Group High cash conversion $m CY 20241 CY 2023 Change % at 108% of NPATA Receipts from customers (inc GST) 352.5 292.4 21% Payments to suppliers and employees (inc GST) (243.9) (198.7) 23% Interest received from operations 7.3 5.9 24% Interest paid (5.0) (3.6) 39% Interest paid on lease liabil
Slide 22: Strong and flexible balance sheet with 0.4x leverage
Smart Group Strong and flexible $m 31 Dec 2024 31 Dec 2023 balance sheet with Cash 34.6 32.8 Other current assets1 285.5 168.2 0.4x leverage Current assets Non-current assets 320.1 333.2 201.0 319.6 Total assets 653.4 520.6 Current liabilities1 313.2 207.7 Borrowings 79.2 64.7 Other non-current liab
Slide 23: Capital allocation – maximising shareholder value
Smart Group Capital allocation – maximising shareholder value Return on Equity2 (ROE) Digital and technology simplification 28.8% Investments 25.9% 26.1% Allocate capital for medium Customer experience improvements 23.8% 24.1% and long-term growth Potential acquisitions or partnerships Operating cas
Slide 24: Summary and Outlook
Smart Group Smartgroup. CY 2024 Investor Presentation 04 — Summary and Outlook
Slide 25: CY 2024 Summary
Smart Group CY 2024 Summary Revenue Customers NL volume CY24 dividends Priorities $305.8m +49,000 v pcp 20% 48.5 cps Solid progress on new salary packages, growth in leasing Strategic Priorities +22% NPATA1 v pcp Leases both from existing clients and from client wins NL yield settlements v pcp Conve
Slide 26: Outlook
Smart Group Outlook CY 2025 • Cautiously optimistic for the year ahead - January 2025 orders and settlements slightly up on pcp • Regulatory tailwinds in novated continue to positively impact demand • PHEV incentive ending in March • Industry dynamics across all business lines remain competitive • M
Slide 27: Appendix
Smart Group Smartgroup. CY 2024 Investor Presentation 05 — Appendix
Slide 28: Our context
Smart Group Our context Salary packaging comparison table1 Without salary packaging With salary packaging Annual salary before tax $65,000 $65,000 Pre-tax expenses - $18,550 Taxable income $65,000 $46,450 PAYG tax $10,288 $4,723 Medicare levy $1,300 $929 Annual salary after tax $53,412 $40,798 Post-
Slide 29: The EV market is continuing to expand
Smart Group The EV market is continuing to expand Price points of EVs by category EV1% of new car orders $140,000 (i.e. excl. used cars and refinances) 60% $120,000 50% $100,000 Average vehicle price EV luxury car tax 40% threshold $91,387 $80,000 30% $60,000 20% $40,000 10% $20,000 0% H1 H2 H1 H2 H
Slide 30: Reconciliation of earnings to statutory financial statements
Smart Group Reconciliation $m Net revenue CY 2024 291.9 CY 2023 242.0 of earnings Operating EBITDA One-off costs1 118.7 (0.7) 100.3 (1.6) to statutory Joint venture contribution Segment results 0.2 118.2 0.3 99.0 financial Net finance costs (3.4) (3.0) Depreciation expense (6.6) (5.0) statements Amo
Slide 31: Balance sheet
Smart Group 31 Dec 2024 31 Dec 2023 $m statutory statutory Balance Cash 34.6 32.8 Restricted cash 245.1 141.1 sheet Trade and other current assets 40.4 27.1 Current assets 320.1 201.0 Property and equipment 2.7 2.1 Smartgroup funded vehicles 18.4 12.2 Right-of-use assets – other 2.5 4.4 Intangible a
Slide 32: Investor contact
Smart Group Smartgroup. CY 2024 Investor Presentation Investor contact Aline van Deventer ir@smartgroup.com.au 0423 553 434