Smartgroup Corporation Ltd · ASX:SIQ
Smartgroup — Macquarie Emerging Leaders Forum 2019
18 slides from Smartgroup's conference presentation, Nov 25, 2019
Slide 1: ASX cover letter: Investor presentation – Macquarie Emerging Leaders Forum
For personal use only 25 November 2019 ASX Market Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 Investor presentation – Macquarie Emerging Leaders Forum Attached is a copy of an investor presentation to be given by CEO Deven Billimoria and CFO Tim Looi to the Macquarie Emerging L
Slide 2: Investor Presentation – Macquarie Emerging Leaders Forum
For personal use only Investor Presentation Macquarie Emerging Leaders Forum 26th November 2019 Deven Billimoria – Managing Director and CEO Tim Looi - CFO
Slide 3: Summary of ASX update - 18 November 2019
Summary of ASX update - 18 November 2019 For personal use only - Deven Billimoria to retire at the end of February 2020 Deven Billimoria will retire from the role of Managing Director and Chief Executive Officer at the end of February 2020 after the release of the FY19 full year results. - Chief Fin
Slide 4: Another half year of growth despite slowdown in private new vehicle sales
Smartgroup has delivered another half year of growth, despite slowdown in private new vehicle sales… For personal use only 1. Positive financial performance • Revenue of $125.8m up 3% vs pcp • NPATA1 of $40.5m up 5% vs pcp 2. Success in servicing clients • Net growth of c.5,000 salary packages and c
Slide 5: Steady performance across all financial and operational metrics
...with steady performance across all financial and operational metrics... For personal use only $m H1 2019 H1 20182 Change % Revenue 125.8 122.6 3% EBITDA1 58.8 56.6 4% NPATA 40.5 38.4 5% Shares on issue (millions) 131.9 131.0 1% NPATA per share (cps) 30.7 29.3 5% As at As at 30 June 2019 30 June 2
Slide 6: Increasing revenue, earnings and dividends
...and increasing revenue, earnings and dividends. For personal use only Revenue EBITDA(1) 300.0 140.0 H1 H2 241.8 H1 H2 115.0 250.0 205.4 120.0 93.6 200.0 100.0 147.1 119.2 58.4 125.8 80.0 63.3 $m 58.8 $m 150.0 107.9 49.0 94.4 60.0 100.0 75.3 84.7 37.4 40.0 24.1 37.7 48.4 122.6 125.8 58.8 50.0 39.3
Slide 7: Organic growth across salary packaging and novated leasing
Smartgroup continues to see organic growth across salary packaging and novated leasing… For personal use only Salary packaging customers1 400,000 18,000 2,500 14,700 350,000 79,500 24,500 300,000 ( 12,200 ) Salary packages 250,000 200,000 325,000 348,000 150,000 343,000 100,000 221,000 50,000 - CY 2
Slide 8: Diversified employer client base in stable, growing sectors
...from a diversified employer client base that represents stable, growing sectors within the Australian workforce. For personal use only Employer client’s % of Smartgroup December 20151 Acquisitions since IPO2 June 2019 number of packages employer client base 2% 4% 5,000+ 0.2 5% 6% 19% 5% 11% 6% 4,
Slide 9: Novated leasing volumes continue to grow despite downturn in new vehicle sales
Smartgroup’s novated leasing volumes have continued to grow, despite the 9% pcp downturn in private new vehicle sales For personal use only Private new vehicle sales1 relative to Q1 2018 SIQ total settlements SIQ new vehicle settlements Private new vehicle sales • Smartgroup has increased its new an
Slide 10: Increasing adoption of digital channels and automation
We continue to focus on increasing adoption of digital channels and automation For personal use only Progressive uptake of online channels from Progressive implementation of Robotic increased customer adoption and migration Process Automation (RPA) to enhance of packages and leases onto core platfor
Slide 11: Success in delivering multiple services through core and partner offerings
Smartgroup continues to see success in delivering multiple services, through core and differentiated partner offerings… For personal use only 180 clients use two or more service offerings, growth of c.20% over the last 12 months Number of Smartgroup services used by individual clients Smartgroup ser
Slide 12: Expanding and differentiating service offering through new partnerships
…and we continue to expand and differentiate our service offering by forming new partnerships… For personal use only Nature of offering/partnership Status Novated lease lead referral from HR Information System Launched Salary packaging cards Launched Mortgage health check Launched New initiative, On
Slide 13: Building on our journey since IPO
…building on our journey since IPO. For personal use only Smartgroup Corporation Commenced offering lists on the ASX workforce management services 2014 2015 Commenced offering share plan administration 2016 Commenced offering PBI fleet solutions 2017 2018 2019 Acquisitions Partnerships Page 11
Slide 14: Integration of acquired businesses and consolidation of service delivery
Integration of acquired businesses and consolidation of salary packaging service delivery continues For personal use only Acquisition completion date Rebatable1 PBI2 Government Corporate N/A May 2017 December 2015 July 2016 August 2016 3 October 2017 Continuing client service model 3 August 2017 4 A
Slide 15: Acquisitions update
Acquisitions update For personal use only H1 2019 acquisitions Mylease – integration completed August 2019 PayPlan – integration completed September 2019 H2 2019 acquisition Lease & Asset Finance • Acquired the novated leasing business for $0.9m in cash, including $0.1m retained in escrow • Administ
Slide 16: In summary
In summary For personal use only 1. Smartgroup has delivered another half year of positive financial and operational results, despite the slowdown in private new vehicle sales 2. Success in servicing existing clients and expanding service offering 3. Continued progress with the integration of acquir
Slide 17: Questions?
For personal use only Questions? Page 15
Slide 18: Important notice and disclaimer
Important notice and disclaimer For personal use only 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 give