Humm Group Limited · ASX:HUM
Humm — Macquarie Conference Sydney 2011
19 slides from Humm's conference presentation, Mar 30, 2016
Slide 1: Macquarie Conference Sydney
Macquarie Conference Sydney 5th May 2011 John Delano Chief Executive Officer Garry McLennan Chief Financial Officer 1
Slide 2: Disclaimer
Disclaimer Important Notice No recommendation, offer, invitation or advice This presentation is not a financial product or investment advice or recommendation, offer or invitation by any person or to any person to sell or purchase securities in FlexiGroup Limited (“FlexiGroup”) in any jurisdiction.
Slide 3: FlexiGroup (FXL) Overview
FlexiGroup (FXL) Overview FXL - Market Update: – ASX Top 300 stock with market cap of approximately A$600m. – FY2011 Guidance 20% - 25% cash NPAT growth – Continued strong growth in volume and NPAT from Interest Free Business FXL – the company: – Founded in 1988 leasing office equipment to businesse
Slide 4: Since IPO 4 years ago, FXL diversifies to 4 verticals
Since IPO 4 years ago, FXL diversifies to 4 verticals Retail Point of Sale Retail Point of Sale Retail Point of Sale OEM & Vendor Lease to Interest Free Lease - IT & electrical Mobile Broadband - IT commercial accounts Trading since 1989, acquired Oct Trading since 1988, IPO Dec Launched in retailer
Slide 5: 1H11 Group Highlights
1H11 Group Highlights FY11 Cash NPAT guidance upgraded to $50m - $52m: +20% to 25% above FY10. Fully franked interim dividend of 5 cents compared to 3 cents in 1H10. Volume growth +27%. All 4 businesses (Interest free, Leasing, Mobile Broadband, Vendor Finance) deliver strong volume and profit resul
Slide 6: Strong 1H11 Financial Performance
Strong 1H11 Financial Performance Profit: Cash NPAT1 up 31% to $25.0m driven by Interest Free and Mobile Broadband. Volume: 27% growth – Interest Free, Mobile Broadband, Vendor Finance: >20% growth. Fully franked interim dividend: 5 cents per share to be paid April 15th 2011. Change 1H10 1H11 1H10 -
Slide 7: NPAT growth continues to exceed receivables growth
NPAT growth continues to exceed receivables growth Strong volume performance across all businesses. Interest free (Oct 2008 acquisition), mobile broadband (Feb 2009 organic start-up) and vendor finance (Dec 2009 organic start-up) contribute 65% of new volumes. 1H11 v 1H10 Volume 1H11 Growth Certegy
Slide 8: Interest Free product innovation and growth delivers exceptional NPAT result
Interest Free product innovation and growth delivers exceptional NPAT result Interest Income and Performance Certegy 1H11 NPAT1 $6.0m compared to $3.0m 1H10. No interest ever payment 1H11 volumes +23% - strong performance from solar, processing primarily in home, and fitness sectors. retail homeowne
Slide 9: Flexirent leasing outperforms market as new sectors drive volume
Flexirent leasing outperforms market as new sectors drive volume Performance FXL small ticket leasing growth +9% despite challenging Small ticket leasing of IT, retail environment Electronics, and Other Assets through retailers Post GFC diversification drives growth from other assets e.g. trades equ
Slide 10: Mobile broadband continues to complement Flexirent
Mobile broadband continues to complement Flexirent - on track to meet $3m FY11 NPAT guidance Performance 1H11 NPAT improves to $1.6m from -$0.9m in 1H10. FY11 Forecast $3m. Sale of Mobile Broadband plans through retail POS Launched online portal (“myblink”) now producing $0.5m partners incremental m
Slide 11: FXL's Vendor Finance is well placed to deliver strong growth in FY11/12
FXL‟s Vendor Finance is well placed to deliver strong growth in FY11/12 Performance Major Retailer mandate for $17m photo-lab lease from 2H11 Commercial Leasing through Refrigerator and freezer OEM to provide $10m p.a. in Original Equip. Manufacturers (OEM) and Vendors equipment leases volumes M2 Pa
Slide 12: Since IPO, volume and NPAT have more than doubled
Since IPO, 4 years ago, volume and NPAT have more than doubled…….. Financial Scorecard Cash NPAT ($m) Volume ($m) $700 $60 $635m $50-$52m $600 $50 $500 $40 35% 56% $400 $30 $310m $23m $300 16% $20 $200 65% $10 100% 84% 44% $100 $0 $0 FY07 FY11 FY07 FY11 Small Ticket Leasing Other Small Ticket Leasin
Slide 13: Leveraging FXL's sustainable competitive advantage
……by leveraging FXL‟s sustainable competitive advantage ………. 1. 2. 3. 4. 5. Longstanding, Culture of Extensive Unique Customer Proprietary Credit Multiple Funder Excellence and Distribution Solutions Database Relationships Innovation 10,000 stores Quick credit 20+ years under- Longstanding, „Best co
Slide 14: Executing on a diversification strategy
……and executing on a diversification strategy…… Diversification Results Strategy Volume Number of businesses increased from 1 to 4 Funding Traditional bank facilities to now include securitisations Channel Partner No single retailer above 20% of new business volume Product Innovation deliver
Slide 15: Monetising high volume transactional business with innovative products
…..and monetising high volume transactional business with innovative products Steady State Product Innovation NPAT p.a. Lost Damaged Stolen Protection $5m Choose lease repayment date $4m Mobile Broadband through IT Retailers $3m Repackage Leasing product in Electrical and IT Retailers $2m In
Slide 16: Continue to grow by developing new and innovative products
We will continue to grow… ..... .by developing new and innovative products… Steady State New Product Innovation NPAT p.a. Interest Free Continuing Credit Facility - provides continuing credit to interest free customer base $4m - $6m - implemented July 2010 – 90% take up 0% Lease with mobile broadb
Slide 17: Leveraging existing infrastructure: Lay-by
....by leveraging existing infrastructure.... LAY-BY Re-inventing an age old product Opportunity Without incremental cost, leverage FXL highly scalable back office platform to process 100,000+ lay-by customers sourced from existing retail relationships and new partners Opportunity to cross-sell La
Slide 18: Pursuing high volume retail point of sale acquisitions similar to Certegy
……and by pursuing high volume, retail point of sale acquisitions similar to Certegy NPAT ($m) $31m Certegy acquisition payback in a little over 3 years : Pre-acquisition Post-acquisition $18 16 – $16m upfront paid in October 2008 $16 $14 – $21m cumulative NPAT by June 2011 $12 – $15m deferred consid
Slide 19: Outlook for FY11
Outlook for FY11 FY11 Cash NPAT guidance of $50m-$52m. Projected at upper end + 25% on FY10. Continued strong growth in volume and NPAT from Interest Free new product initiatives and expansion in home improvement, solar, and gym equipment sectors. Increased Vendor Finance volume from new business ma