Slide 1: 2024 Half Year Results
Smart Group Smartgroup. HY 2024 Investor Presentation 2024 Half 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 I would like to acknowledge the Traditional Owners of the land on which Co-existing with Mother Earth from the first days of I am speaking with you today, the Gadigal People of the Eora Nation. understanding of kinship and the importance of car
Slide 3: Contents
Smart Contents 01 — 2024 Half Year Highlights 02 — Strategic Priorities Update 03 — 2024 Half Year Performance 04 — Summary and Outlook
Slide 4: 2024 Half Year Highlights
Smart Group Smartgroup. HY 2024 Investor Presentation 01 — 2024 Half Year Highlights
Slide 5: H1 2024 Highlights
Smart Group H1 2024 Highlights Solid financial performance Customer growth Demand for novated leasing Strategic priorities Sustainability • Revenue of $148.5m, up +27% • 402,0004 active customers at • +27% growth in leasing • Enhanced car leasing portal • Sustainalytics ESG Risk Rating v pcp June, +
Slide 6: Investment proposition
Smart Group Investment proposition Leading player with • Uniquely positioned as market leader in salary packaging and 402,000 ~2m Leading, diversified exposure • novated leasing Broad product offering with exposure to fleet management active salary packaging potential customers in resilient customer
Slide 7: Strategic Priorities
Smart Group Smartgroup. HY 2024 Investor Presentation 02 — Strategic Priorities Building a smarter future
Slide 8: 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 9: 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 10: Continued progress on our Strategic Priorities
Smart Group Continued progress on our Strategic Priorities Smarter Experiences ✓ Enhanced car leasing portal delivering improved customer experience ✓ Improved benefit offerings through new partnerships Smarter Products ✓ New Smart brand to enable simplification - starting with South Australian Gove
Slide 11: Strong market position
Smart Group Strong market position SA Government case study • The contract commenced on 1 July 2024 • Services made available to approximately 110,000 South Australian Government employees • Transitioned 36,500 salary packages and 5,600 novated leases in July 2024 • H1 2024 operating costs associate
Slide 12: 2024 Half Year Performance
Smart Group Smartgroup. HY 2024 Investor Presentation 03 — 2024 Half Year Performance
Slide 13: Growth across all key product lines
Smart Group Growth across all key product lines Salary packages Novated leases Fleet managed under management vehicles H2 23 H1 24 H2 23 H1 24 H2 23 New H1 24 HY organic CY organic HY HY organic CY organic HY HY organic large CY organic HY 2023 growth1 2023 growth1 2024 2023 growth1 2023 growth1 202
Slide 14: New EV orders continue to grow
Smart Group New EV orders EV1% of new car orders (i.e. excl. used cars and refinances) continue to grow 60% 50% 40% • Strong EV interest continuing • EV proportion of new car lease orders and settlements 30% grew across all client segments year-on-year 20% • Availability of EVs is generally good, wi
Slide 15: Strong leasing demand and yield sustained
Smart Group Strong leasing Strong customer demand • Customer interest remains strong demand and yield Electric Car Discount Policy1 is contributing to demand uplift • Focus on customer education regarding new policy continues sustained • While the EV demand is growing, ICE vehicles remain an importa
Slide 16: Delivery timeframes improving but remain above historic levels
Smart Group Delivery timeframes Average Vehicle Order to delivery timeframes improving but remain 90 (for Smartgroup top 30 makes/models by volume) above historic levels 80 70 60 50 Days • Vehicles Delivery timeframes improving, albeit remain 40 significantly above pre-COVID levels (>20 days) 30 • S
Slide 17: Continued revenue growth delivers earnings uplift
Smart Group $m H1 20241 H1 2023 Change % Continued revenue Revenue Product costs (cost of sales) 148.5 (6.6) 116.6 (4.1) 27% 60% growth delivers Net revenue Staff expenses 141.9 (61.7) 112.5 (49.9) 26% 24% earnings uplift Other expenses (24.0) (15.6) 54% Total expenses (85.7) (65.5) 31% Operating EB
Slide 18: High cash conversion at 108% of NPATA
Smart Group High cash conversion $m H1 20241 H1 2023 Change % at 108% of NPATA Receipts from customers (inc GST) 173.5 134.0 30% Payments to suppliers and employees (inc GST) (120.7) (90.2) 34% Interest received from operations 3.5 2.7 30% Interest paid (2.5) (1.7) 51% Interest paid on lease liabili
Slide 19: Strong and flexible balance sheet with 0.5x leverage
Smart Group Strong and flexible $m 30 Jun 2024 31 Dec 2023 balance sheet with Cash 24.3 32.8 Other current assets1 188.6 168.2 0.5x leverage Current assets 212.9 201.0 Non-current assets 329.8 319.6 Total assets 542.7 520.6 Current liabilities1 220.4 207.7 Borrowings 79.3 64.7 • Increase in net debt
Slide 20: Capital allocation – maximising shareholder value
Smart Group Capital allocation – maximising shareholder value Digital and technology simplification Allocate capital for medium Investments Customer experience improvements and long-term growth Operating Potential acquisitions or partnerships cash flow Deliver sustainable Dividend policy 60-70% of N
Slide 21: Summary and Outlook
Smart Group Smartgroup. HY 2024 Investor Presentation 04 — Summary and Outlook
Slide 22: HY 2024 Summary
Smart Group HY 2024 Summary Revenue Customers NL volume Interim dividends Priorities $148.5m +17,000 v pcp 27% 17.5 cps Steady progress on new salary packages, Growth in leasing strategic priorities +27% NPATA1 v pcp Leases both from existing clients and from client wins NL yield settlements v pcp C
Slide 23: Outlook
Smart Group Outlook • Continue to experience strong leasing and salary packaging demand – July 2024 orders and settlements up on pcp • Ongoing competitive pressures, with Smartgroup well positioned to compete and differentiate in customer service • Focus on driving operating leverage, including thro
Slide 24: Appendix
Smart Group Smartgroup. HY 2024 Investor Presentation 05 — Appendix
Slide 25: Reconciliation of earnings to statutory
Smart Group Add back: Reconciliation Add back: Gain on H1 2024 Non-IFRS M&A sale of H1 2024 $m statutory measures activity business adjusted of earnings Net revenue 141.9 141.9 Operating EBITDA 56.2 - 0.0 - 56.2 to statutory Joint venture contribution 0.0 - - - 0.0 Segment note EBITDA 56.2 - 0.0 - 5
Slide 26: Balance sheet
Smart Group $m 30 Jun 2024 statutory 31 Dec 2023 statutory Cash 24.3 32.8 Balance Restricted cash1 Trade and other current assets 149.4 39.2 141.1 27.1 sheet Current assets 212.9 201.0 Property and equipment 3.0 2.1 Smartgroup funded vehicles 14.4 12.2 Right-of-use assets – other 3.5 4.4 Intangible
Slide 27: Investor contact
Smart Group Smartgroup. HY 2024 Investor Presentation Investor contact Aline van Deventer ir@smartgroup.com.au 0423 553 434