Mcmillan Shakespeare Limited · ASX:MMS
Mcmillan Shakespeare — H1 2024 Earnings Presentation
29 slides from Mcmillan Shakespeare's earnings presentation, Feb 20, 2024
Slide 1: ASX announcement: Interim Results Investor Presentation
20 February 2024 Manager Company Announcements ASX Limited 20 Bridge Street SYDNEY NSW 2000 By E-lodgement McMillan Shakespeare Limited (MMS, the Company) Interim Results Investor Presentation This release contains an announcement to the Australian Securities Exchange Limited (ASX) regarding the FY2
Slide 2: MMS 1HFY24 Results Presentation
MMS 1HFY24 Results Presentation 20 February 2024 Presenters Rob De Luca CEO & Managing Director Ashley Conn CFO & Company Secretary
Slide 3: Disclaimer and important notice
Disclaimer and important notice This presentation has been prepared by McMillan Shakespeare Limited ABN 74 107 233 983 (“MMS”). It contains summary information about MMS and its subsidiaries and their activities current as at the date of this presentation. The presentation contains selected informat
Slide 4: Acknowledgement of Traditional Owners
We acknowledge the Traditional Owners of the lands on which we meet today and pay our respects to Elders past and present. MMS
Slide 5: 1HFY24 Overview
1HFY24 Overview MMS 1
Slide 6: 1HFY24 Highlights
1HFY24 Overview 1HFY24 Highlights Normalised Normalised Normalised Normalised Strong growth in Revenue1,2 EBITDA1,2 EBITDA margin1,2 UNPATA1,2 1 financial performance and margin expansion $261.1m $86.9m 33.3% $53.2m 8.1% 42.9% 8.1% pts 48.2% Novated sales driven Novated Lease Electric Vehicle Novate
Slide 7: 1HFY24 Financial performance
1HFY24 Overview 1HFY24 Financial performance 1 Continuing operations. All financial information and metrics in this presentation are from Continuing operations1 1HFY24 1HFY23 Variance continuing operations only unless otherwise stated. In relation to discontinued operations, on 31 July 2023, the Gro
Slide 8: Segment performance
1HFY24 Overview Segment performance Continuing operations Group Remuneration Services Asset Management Services Plan and Support Services (GRS) (AMS) (PSS) Contribution to 74% 19% 8% Normalised UNPATA1 Revenue $142.7m 29.2% $90.1m (15.4%) $26.2m 11.9% Normalised EBITDA $64.2m 58.8% $15.1m (3.6%) $6.
Slide 9: Simply Stronger Program
1HFY24 Overview Simply Stronger Program On track to deliver enhanced digital experience and solutions, technology-enabled productivity and sustainable growth. 1HFY24 CAPEX $7.3m. Excel in customer Technology-enabled Competency-led 1 2 3 experience productivity solutions Improve customer app Modernis
Slide 10: 1HFY24 Financial performance
1HFY24 Financial performance MMS 6
Slide 11: UNPATA bridge
1HFY24 Financial performance UNPATA bridge Normalised UNPATA1,2 Normalised EPS1 $53.2m 76.4c Aggregation and UK businesses were divested up 48.2% up 59.0% in 1HFY24 and are no longer included in continuing operations Continuing operations $17.3m GRS AMS PSS Corporate $16.5m $(0.4m) $1.3m $(0.1m) (0.
Slide 12: Balance sheet
1HFY24 Financial performance Balance sheet $m 31 Dec 23 30 Jun 23 Cash at bank 145.6 60.6 Net debt to EBITDA1 0.8x vs 1.1x pcp Restricted client trust funds 416.5 402.6 Group Other current assets 63.7 47.3 Total fleet and warehouse funded assets 442.9 327.5 Interest times cover2 Goodwill / intangibl
Slide 13: Cash flow and Capital allocation
1HFY24 Financial performance Cash flow and Capital allocation Cash conversion 113%1 of UNPATA includes working capital benefit of ~$16m to revert in 2HFY24. Interim dividend reflects 100% payout ratio of Normalised UNPATA. Returns to shareholders ($m) Stated Capital Allocation and Dividend Policy 47
Slide 14: 1HFY24 Segment Performance
1HFY24 Segment Performance MMS 10
Slide 15: GRS: Highlights
1HFY24 Segment performance GRS: Highlights Customer growth and demand for higher yielding EVs driving margin expansion and financial performance. $110.4m $142.7m Salary packages Novated leases1 Normalised up 4.8% up 3.6% Revenue Salary packages ’000 Novated leases ’000 $142.7m 386.1 404.8 74.1 76.8
Slide 16: GRS: Novated leasing
1HFY24 Segment performance GRS: Novated leasing Value proposition of novated leasing, particularly for EVs driving growth. Continued growth in EV demand Improvements in supply and EVs Increasing % of EVs driving sales growth and novated value proposition driving 15.1% sales 11.2%growth18.7% 43.1% an
Slide 17: GRS: Onboard Finance (Warehouse)
1HFY24 Segment performance GRS: Onboard Finance (Warehouse) Higher novated lease volumes and average NAF to benefit future periods. Normalisation Transition Period FY24 Normalisation adjustment – Normalised refers to adjustments made estimated at ~$15m1 1HFY24 for the negative earnings transitional
Slide 18: AMS: Highlights
1HFY24 Segment performance AMS: Highlights 1HFY23 included ~$1.6m EBITDA from one off financial benefit from the expiration of larger customer contracts, excluding this EBITDA was up 7.3%. Growth in NAF and WDV from new business and improved vehicle supply. $106.5m $90.1m Net amount financed Written
Slide 19: PSS: Highlights
1HFY24 Segment performance PSS: Highlights Strong customer growth and operating leverage while supporting scheme integrity and sustainability. $23.4m $26.2m PSS Customers Continued participant up 16.1% growth in NDIS and take up Revenue of plan management $26.2m PSS customers NDIS participants1 11.9
Slide 20: PSS: Independent Review into the NDIS
1HFY24 Segment performance PSS: Independent Review into the NDIS Recommendations to be considered by Government with outcomes suggested to be implemented over a 5-year transition period, some of which may require legislative change. Independent Review Final Report into the NDIS (Dec 2023) 26 139 Rec
Slide 21: Outlook and priorities
Outlook and priorities MMS 17
Slide 22: Outlook and priorities
Outlook and priorities Outlook and priorities Expect similar conditions in 2HFY24 while executing on our strategy to deliver sustainable growth. 2HFY24 Expected market conditions – 1HFY24 Auto supply dynamic and uptake of EVs to continue – Current carry over of $34.9m1 of revenue to benefit future p
Slide 23: Appendix
Appendix MMS 19
Slide 24: Reconciliation between NPAT and Normalised UNPATA
Appendix Reconciliation between NPAT and Normalised UNPATA $m 1HFY24 1HFY23 Variance Statutory NPAT 37.6 35.5 5.8% Discontinued operations1 (6.2) 3.8 >(100%) Statutory NPAT Continuing operations1 43.8 31.8 37.7% Amortisation of intangible assets acquired on business combination 0.2 0.3 (39.3%) Acqui
Slide 25: Return on capital employed (ROCE) calculation
Appendix Return on capital employed (ROCE) calculation Normalised Return on Capital Employed (ROCE) $m 1HFY24 1HFY23 Normalised EBIT Statutory equity 133.1 185.3 Last 12 months Normalised EBIT is before the pre-tax impact of acquisition and Impairments1 48.7 - divestment related activities and non o
Slide 26: Funding overview
Appendix Funding overview – Bullet loan facilities to August 2027, totalling up to $60m with WBC and NAB for working capital purposes (fully drawn) – Increased Warehouse securitisation to cover growth – Revolving Asset Finance debt facilities remain in line with Jun-23 – Operating lease uncommitted
Slide 27: Segment financials
Appendix Segment financials GRS AMS PSS Unallocated MMSG $m 1HFY24 1HFY23 % 1HFY24 1HFY23 % 1HFY24 1HFY23 % 1HFY24 1HFY23 % 1HFY24 1HFY23 % Normalised Revenue1 142.7 110.4 29.2% 90.1 106.5 (15.4%) 26.2 23.4 11.9% 2.1 1.2 65.7% 261.1 241.6 8.1% Normalised EBITDA1 64.2 40.4 58.8% 15.1 15.7 (3.6%) 6.8
Slide 28: Calendar
Appendix Calendar Interim FY24 Results Release Tuesday, 20 February 2024 Ex-dividend Thursday, 07 March 2024 Record date Friday, 08 March 2024 Payment date Friday, 22 March 2024 Final1 Results Release Tuesday, 27 August 2024 Ex-dividend Thursday, 12 September 2024 Record date Friday, 13 September 20
Slide 29: MMS
MMS