Smartgroup Corporation Ltd · ASX:SIQ
Smartgroup — Macquarie Australia Conference 2022
24 slides from Smartgroup's conference presentation, May 5, 2022
Slide 1: Macquarie Australia Conference and business update
ASX Announcement Release date: 5 May 2022 Macquarie Australia Conference and business update Smartgroup Corporation Ltd (ASX: SIQ) (“Smartgroup” or “the Company”), a specialist employee benefit services provider, is pleased to provide a business update and a copy of the presentation to be presented
Slide 2: Macquarie Australia Conference 2022
Macquarie Australia Conference 2022 Tim Looi – Managing Director and CEO 5 May 2022
Slide 3: Smartgroup
01 Smartgroup
Slide 4: Our investment proposition
Our investment proposition Smartgroup’s investment proposition is underpinned by a capital light business model, generating strong cash flows and dividends 382,500 63,100 24,750 ~700 Salary Packaging Novated Fleet Vehicles Full Time customers Leases Managed Equivalents Premium established player w
Slide 5: What we do
What we do At Smartgroup, we simplify salary packaging, fleet management and a range of other employee benefit services for organisations across Australia 4
Slide 6: Who we serve
Who we serve Corporate Education 4% 10% Government Our employer clients and employee customers 20% • Not-for-Profit – charities, disability and aged care providers Hospital 382,500 23% • Hospital – Salary Packaging public and private customers • Government – local, state and federal • Corporate – sm
Slide 7: Our culture
Our culture We’re committed to empowering our diverse and inclusive workforce, and to promoting equality at all levels. Diversity and inclusion is something that makes our organisation strong and our culture unique. Gender diversity targets of 40/40/20* Commitment to Inclusive, Recognised WGEA Emplo
Slide 8: Shareholder returns
Shareholder returns Since listing in 2014, Smartgroup has paid ~$388m in fully franked dividends (~$166m franking value) ~$160M SIQ Market Cap | 2 July 2014 ~$1.2B SIQ Market Cap | 27 April 2022 1,200% Performance indexed to 100 at July 2014 1,100% 1,000% Smartgroup market 900% capitalisation 800%
Slide 9: Resilient performance, building capability and streamlining operations
Resilient performance, building capability and streamlining operations We have navigated challenges and progressed important integrations Diversity and Inclusion Regulatory COVID Margin Acquisition Management Compression Integration Strength Successfully implemented Continued to manage Managed add-o
Slide 10: 2021 full year results recap
02 2021 full year results recap
Slide 11: Results to December 2021
Results to 31 December 2021 Pleasing results reflect continued momentum Strong improvement in profit Successful contract renewal outcomes with improved operating performance Smart Future program delivering targeted benefits Strong cashflow conversion and net cash position enabling interim, final and
Slide 12: Improvement in all financial metrics and total 2021 dividends of 72cps
Improvement in all financial metrics and total 2021 dividends of 72cps Revenue EBITDA1 NPATA1 Dividend (fully franked)2 1. Adjusted to reflect one-off impact on adoption of AASB 16 Leases from January 2018. Impact is to increase 2018 EBITDA by $1.6m in each of H1 and H2 and reduce 2018 NPATA by $0.1
Slide 13: The Smart Future Program
The 03 Smart Future Program
Slide 14: Significant organic growth opportunities from existing clients
Significant organic growth opportunities from existing clients Addressable market Addressable market c.1.2-1.5m1 employees c.0.9-1.2m2 total cars owned within existing client base by those employees = 60,000 employees (potential customers) = 60,000 cars (potential Smartgroup novated vehicles) Smartg
Slide 15: Smart Future Program Launched May 2021
Smart Future Program Launched May 2021 Vision Be the trusted partner for Australian employers to deliver benefits to their employees Strategic capabilities Customer experience Technology People and culture Brands Scale Strategic pillars Deliver great customer Invest in digital to create a Simplify a
Slide 16: Increased focus on digital engagement and improved experiences
Increased focus on digital engagement and improved experiences have led to growth in digital novated leads and better lead conversion Novated leasing leads have reduced from 2019 with restricted on-site access Novated leads by channel and conversion rates Increased focus on digital engagement Lead t
Slide 17: New Smartleasing vehicle calculator improves customer engagement and leads
New Smartleasing vehicle calculator has seen sustained improvement in customer engagement and leads c.40%+ increase in calculator traffic and c.60%+ increase in calculator leasing leads1 c.80% increase in the time customers spend interacting with calculator/self-educating1 Increased calculator visit
Slide 18: We will launch new digital assets promoting education
We will launch new digital assets promoting education and digitising interactions New Smartsalary website • Simpler • Better user experience • Improved data analytics 17
Slide 19: Customers will be able to engage digitally 24/7
Customers will be able to engage with Smartgroup for novated leasing digitally 24/7 New vehicle sales portal • Digitising customer education and interactions • End-to-end sales process when all development phases are complete 18
Slide 20: Business update to April 2022
04 Business update to April 2022
Slide 21: Strong leasing lead generation and pipeline
Strong leasing lead generation and pipeline Lead to Vehicle Order conversion rates are stable Apr 2022 V PCP CY 2021 YTD Strong leasing Total leasing leads +1% +6% lead generation and Lower-cost digital lead ‘excess’ new vehicle volumes have grown beyond pre-COVID levels New lease digital +12% +11%
Slide 22: Update
Operations Salary packaging customers up c.5,000 (+1%) since December 2021 Return to office for Smartgroup team members across Australia Novated funding panel Transition from St George to Angle complete, including early Update payment by St George of future performance fees API launched with second
Slide 23: 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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