Slide 1: 2022 Half Year results
2022 Half Year results Tim Looi – Managing Director and CEO Anthony Dijanosic – Chief Financial Officer 26 August 2022
Slide 2: 2022 Half Year results
2022 Half Year Pde results _®e
Slide 3: Results for 6 months to 30 June 2022
Results for 6 months to 30 June 2022 Solid financial results driven by increased revenue Revenue of $113.6m up 4% on pcp; Operating EBITDA of $49.4m in line; NPAT of $30.9m up 16%; and NPATA of $32.4m 4% lower due to lower acquired asset amortisation add-backs Strong leasing leads and continued grow
Slide 4: Interim dividend of 17cps reflecting a payout ratio of 70% of NPATA
Interim dividend of 17cps reflecting a payout ratio of 70% of NPATA Revenue Operating EBITDA1 NPATA1 Dividend (fully franked) 2 138% 300 140 48% 47% 50% 100 120 140% 46% 249.8 44% 43% 241.8 81.0 250 120 45% 77.8 120% 221.8 100 216.3 80 102% 69.5 100 40% 65.2 100% 88% Dividend % of NPATA 200 80 119.2
Slide 5: Salary package growth from new and existing clients; vehicle supply impacting leases under management
Salary package growth from new and existing clients; vehicle supply impacting leases under management Salary packages Novated leases under management CY 2019 Two VIC CY CY 2020 CY CY CY CY HY HY CY 2019 Two VIC CY CY 2020 CY CY CY CY HY HY 2018 acquisitions health organic 2019 acquisitions organic 2
Slide 6: Strong leasing lead generation and pipeline
Strong leasing lead generation and pipeline Strong 6% lead volume growth, particularly digital leads which are up 8% vs pcp v H1 v H2 H1 2022 2021 2021 Further growth in revenue pipeline, with order levels continuing to exceed Total leasing leads +6% +15% Strong leasing settlements due to supply sho
Slide 7: Vehicle supply remains challenged
Vehicle supply remains Average vehicle order to delivery timeframes for Smartgroup top 30 challenged makes/models by volume 100 80 60 Days • Delivery timeframes have further extended 40 • Delays are resulting in the need for credit re- approval and increased customer 20 engagement - • Expanded bulk
Slide 8: New Smartsalary website launched in July
New Smartsalary website launched in July • Superior user experience • Improved self-education • Enhanced data analytics 8
Slide 9: Vehicle Sales Portal to launch in H2 2022
Vehicle Sales Portal to launch in H2 2022 • Customers able to engage digitally 24/7 • Digitised customer education and interactions • Initial release will allow customers to obtain a tailored self-service quote at any time • End-to-end sales process when all development phases are complete 9
Slide 10: Smart Future: Delivered to-date and next priorities
Smart Future Delivered to-date… Next priorities… • Incentive scheme restructure • Vehicle Sales Portal (phase 1) • Digital experience platform • Salary packaging calculators • Enhanced API and data capabilities • Client portals • Online Smartleasing and Autopia novated • Customer portals and apps le
Slide 11: Federal Government Electric Vehicle (EV) Discount Policy
Federal Government Electric Vehicle (EV) Discount Policy • Proposed legislation abolishes FBT on new EVs provided through novated leases1 and removes applicable import tariffs on EVs • FBT exemption to be reviewed after 3 years, in light of EV uptake • Policy will increase attractiveness of novated
Slide 12: Financial performance Half Year CY2022
02 Financial performance Half Year CY2022
Slide 13: Revenue growth of 4% and EBITDA in line with pcp, with a strong 43% EBITDA margin
Revenue growth of 4% and EBITDA in line with pcp, with a strong 43% EBITDA margin H1 20221 H1 20211 Change % Revenue 113.6 109.4 4% Revenue growth from increased novated leasing settlements and yield, and $1.8m one- Product costs (3.8) (2.7) 42% off revenue items following successful Staff costs (42
Slide 14: Strong cash flow generation of 134% of NPATA
Strong cash flow generation of 134% of NPATA H1 2022 H1 2021 $m adjusted1 adjusted1 Receipts from customers (inclusive of GST) 144.6 123.1 H1 2022 includes one-off St George payment of future performance fees of $11.6m Payments to suppliers and employees (inclusive of GST) (86.1) (76.3) Interest rec
Slide 15: Small net debt position following payment of special dividend in March
Small net debt position following payment of special dividend in March 30 Jun 2022 31 Dec 2021 $m statutory statutory Cash 32.9 32.5 Cash balance includes $11.6m upfront payment from St George of future performance fees Other current assets 67.3 68.7 Current assets 100.2 101.2 Increase in borrowings
Slide 16: Summary and outlook
03 Summary and outlook
Slide 17: Solid financial results
Solid financial results H1 Revenue up 4%, Operating EBITDA in line, NPAT up 16% and NPATA down 4% on pcp; operating cash flow at 134% of NPATA Strong leasing lead generation and pipeline H1 leads up 6% on pcp and 15% on prior half ‘Excess’ order pipeline at $14m Resilient Supply of vehicles likely t
Slide 18: Appendix: Reconciliation of Statutory result to NPATA
Reconciliation of Statutory Appendix result to NPATA
Slide 19: Reconciliation of earnings to statutory financial statements
Reconciliation of earnings to statutory financial statements H1 2022 Non-IFRS H1 2022 $m statutory measures adjusted Revenue 113.6 - 113.6 Operating EBITDA 49.4 - 49.4 Joint venture contribution 0.2 - 0.2 Segment note EBITDA 49.6 - 49.6 Depreciation expense (1.9) - (1.9) Amortisation expense (2.2) -
Slide 20: Important notice and disclaimer
Important notice and disclaimer Disclaimer This presentation has been prepared by Smartgroup Corporation Ltd (ACN 126 266 831) (“Smartgroup”) and is general background information about Smartgroup’s activities current as at the date of this presentation. The information is given in summary form and
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