Mcmillan Shakespeare Limited · ASX:MMS

Mcmillan Shakespeare — Macquarie Australia Conference 2015

26 slides from Mcmillan Shakespeare's conference presentation, May 5, 2015

  1. Slide 1: Macquarie Australia Conference

    For personal use only Macquarie Australia Conference 6th May 2015

  2. Slide 2: MMS Overview

    Macquarie Australia Conference 2 MMS Overview For personal use only  MMS entering a new stage of development, growth and profitability  Using MMS financial strength and strong cash generation to build a stronger and diversified business  Higher levels of efficiency, productivity and performance a

  3. Slide 3: Business model

    Macquarie Australia Conference 3 Business model For personal use only McMillan Shakespeare Group (ASX: MMS) Group Remuneration Services Asset Management Retail Financial Services  Salary packaging administration  Fleet Management  Finance, warranty and insurance offering  Novated leases  Operat

  4. Slide 4: 1HFY15 key points

    Macquarie Australia Conference 4 1HFY15 key points For personal use only  Half year NPAT of $31.1m (62% higher than PCP and 5% higher than 1HFY13)  1H profit result largely impacted by:  Reduction in revenue from novated leasing due to a temporary contract suspension  Business continues to perfo

  5. Slide 5: NPAT Performance

    Macquarie Australia Conference 5 NPAT Performance For personal use only 35 Proposed FBT changes 30 31.1 29.7 NPAT 9 year CAGR 21.6% 25 24.9 20 20.5 19.3 $m 15 10 11.2 9.5 7.9 5 6.1 5.3 0 1H FY06 1H FY07 1H FY08 1H FY09 1H FY10 1H FY11 1H FY12 1H FY13 1H FY14 1H FY15

  6. Slide 6: Earnings and dividends per share

    Macquarie Australia Conference 6 Earnings and dividends per share For personal use only Proposed FBT changes 50.00 30.0 Proposed FBT changes 45.00 25.0 40.00 Interim Dividend 9 year CAGR 29% 25.0 24.0 Basic EPS 9-year CAGR of 19.8% 35.00 22.0 20.0 21.0 30.00 25.00 15.0 16.0 cents cents 20.00 10.0 15

  7. Slide 7: Presidian – integration well advanced and on track

    Macquarie Australia Conference 7 Presidian – integration well advanced and on track For personal use only  Earnings accretive acquisition that complements our core competencies. Strong strategic and cultural fit  Second hand car market is three and a half times larger than the new car market. Clea

  8. Slide 8: Presidian group structure

    Macquarie Australia Conference 8 Presidian group structure For personal use only “Finance Finance Businessˮ “Warranty Warranty Businessˮ “Insurance Insurance Businessˮ Manufacturer of extended Aggregator of finance, Provider of motor vehicle warranty products for vehicle, insurance and warranty spec

  9. Slide 9: Presidian highlights

    Macquarie Australia Conference 9 Presidian highlights For personal use only Attractive financial profile 1   Generates robust margins at both the Gross Margin, and EBITDA level Diverse revenue sources across finance, insurance and warranty products Substantial distribution network 2   Over 2,500

  10. Slide 10: Extension of existing virtual car dealership model

    Macquarie Australia Conference 10 Extension of existing virtual car dealership model For personal use only 6 After market products 1 Vehicle management  Provide fuel, tyres and other  Ability to procure new vehicles and after market services dispose of motor vehicles  Fleet management 2 Asset fin

  11. Slide 11: Group Remuneration Services 1HFY15 recap

    Macquarie Australia Conference 11 Group Remuneration Services 1HFY15 recap For personal use only  1HFY15 NPAT of $24.58m was $11.3m (86%) higher than PCP  Business momentum disrupted in the first quarter, momentum rebuilt and finished the half well  Improving participation, strong sales and distr

  12. Slide 12: Competitive strengths and performance indices

    Macquarie Australia Conference 12 Competitive strengths and performance indices For personal use only Group Remuneration Services Productivity Index (7/08 = 100) MMS Customer Satisfaction Index [Rolling 3 month Revenue (ex SP Interest) / FTE] December 2008 = 100 170 300 165 160 155 250 150 145 200 1

  13. Slide 13: Group Remuneration Services financial performance

    Macquarie Australia Conference 13 Group Remuneration Services financial performance For personal use only Proposed FBT changes 100 100.0% 90.0% Revenue 9-year CAGR 15.2% PBT 9-year CAGR 20.3% 80 83 80.0% 76 70.0% 71 60 64 60.0% $m 54 50.0% 40 44 40.0% 38 34 30.0% 32 31 26 26 20 23 20.0% 21 20 16 14

  14. Slide 14: Asset Management 1HFY15 recap

    Macquarie Australia Conference 14 Asset Management 1HFY15 recap For personal use only  Assets under finance – growth continues ($19m or 6% since June 30) to $353m  Market remains highly competitive with pressure on NIM and management fees  Strong residual value performance. Used car prices in our

  15. Slide 15: UK market opportunity

    Macquarie Australia Conference 15 UK market opportunity Estimated 4.9 million private sector businesses For personal use only Annual new car finance c £20 billion Approx £18 billion of other (non (business & consumer) car) asset finance annually Aircraft, ships Car finance and rolling  UK financial

  16. Slide 16: Asset Management (UK) 1HFY15 recap

    Macquarie Australia Conference 16 Asset Management (UK) 1HFY15 recap For personal use only  UK business building momentum, structural growth opportunity  New business growth  Building the brand reputation in the market  Highly experienced and capable management team  Retail sales model suppleme

  17. Slide 17: Regulatory landscape

    Macquarie Australia Conference 17 Regulatory landscape For personal use only  FBT on cars  Tax discussion paper – broad range of issues:  Complexity of the tax system, GST rate and base, superannuation & negative gearing  Tax arrangements for the NFP sector  Second hand car imports, limited pol

  18. Slide 18: Outlook

    Macquarie Australia Conference 18 Outlook For personal use only  Ongoing profitable growth through:  Presidian integration well advanced and on track. Focus on delivering revenue and cost synergies through improved financing and supplier terms for the combined group. Strong scope to cross sell acr

  19. Slide 19: Appendix

    Macquarie Australia Conference 19 Appendix For personal use only

  20. Slide 20: Consolidated financial performance

    Macquarie Australia Conference 20 Consolidated financial performance For personal use only % % 1HFY15 1HFY14 change 1HFY15 1HFY14 change 1HFY15 1HFY14 % change 1HFY13 % change $000 Group Group Asset Asset Remuneration Remuneration Services Services Management Management (1) Total Total Total Revenue

  21. Slide 21: Group Remuneration Services financial performance

    Macquarie Australia Conference 21 Group Remuneration Services financial performance For personal use only 1HFY15 1HFY14 % change 1HFY13 % change $000 Segment revenue (1) 82,801 70,548 17% 75,757 9% Expenses Employee expenses 34,569 34,655 - 30,891 12% Depn and amort of PPE and software 2,178 1,796 2

  22. Slide 22: Asset Management (AM) financial performance

    Macquarie Australia Conference 22 Asset Management (AM) financial performance For personal use only 1HFY15 1HFY14 % change AM segment UK Australia AM segment UK Australia AM segment Australia $000 Segment revenue (1) 98,374 7,460 90,914 90,978 5,461 85,517 8% 6% Expenses Depreciation of motor vehicl

  23. Slide 23: Fleet Assets WDV

    Macquarie Australia Conference 23 Fleet Assets WDV For personal use only 400 5.9% 8.3% 0.3% 350 353 15.9% 1.4% 333 334 300 303 307 9.4% 8.6% ($m) 250 262 Growth 0.5% 2.6% 239 200 215 220 213 214 150 100 50 0 Acquisition 1 30-Jun-10 31-Dec-10 30-Jun-11 31-Dec-11 30-Jun-12 31-Dec-12 30-Jun-13 31-Dec-1

  24. Slide 24: Asset Management key balance sheet numbers

    Macquarie Australia Conference 24 Asset Management key balance sheet numbers For personal use only 31-Dec-14 30-Jun-14 Movement $000 Operating lease assets 301,099 303,408 (2,309) Motor vehicle inventories 4,479 5,379 (900) Finance leases & CHP 47,869 24,906 22,963(1) Total funded fleet assets 353,4

  25. Slide 25: Gearing

    Macquarie Australia Conference 25 Gearing For personal use only MMS & Group Remuneration Asset Group Group Services Management Balance at Balance at 31-Dec-14 31-Dec-14 31-Dec-14 30-Jun-14 $000 Net debt (92,272) 233,717 141,445 143,903 Book value of equity 119,891 128,336 248,227 223,847 Gearing - n

  26. Slide 26: 1HFY15 Cashflow

    Macquarie Australia Conference 26 1HFY15 Cashflow For personal use only Group Remuneration Asset Unallocated / MMS Group Services Management parent co. Total $000 Segment NPAT 24,579 6,210 338 31,127 Non-fleet depn/amort, reserves and other non-cash items 3,305 3,288 - 6,593 Working capital inflow /

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