Mcmillan Shakespeare Limited · ASX:MMS

Mcmillan Shakespeare — Shareholder Meeting (October 2013)

27 slides from Mcmillan Shakespeare's shareholder meeting presentation, Oct 22, 2013

  1. Slide 1: MMS Group Annual General Meeting

    For personal use only MMS Group Annual General Meeting

  2. Slide 2: FY13 Financial highlights

    For personal use only PagePage 2 2 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation FY13 Financial highlights  Continuing strong profitable growth.  Consolidated NPAT $62.2m (15% growth on PCP).  Diluted EPS growth 10.5%.  Group Remuneration Services NPAT $46.8m (16% growth; 23%

  3. Slide 3: Normalised NPAT

    For personal use only PagePage 3 3 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation Normalised NPAT (1) 70 NPAT 8 year CAGR 36% 60 62.2 50 54.3 40 43.5 $m 30 27.9 20 20.5 17.4 10 13.2 11.3 5.2 0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Note 1: Normalised NPAT excludes the profit

  4. Slide 4: Historical earnings and dividends per share

    For personal use only PagePage 4 4 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation Historical earnings and dividends per share Dividends per share Earnings per share 50.0 90.0 43.0 45.0 47.0 80.0 40.0 18 70.0 Basic EPS 7-year 35.0 38.0 60.0 CAGR of 25% 30.0 50.0 cents 25.0 40.0 25 c

  5. Slide 5: Definition of segments

    For personal use only PagePage 5 5 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation Definition of segments  Group Remuneration Services segment definition: The segment provides administrative services in respect of salary packaging and facilitates the settlement of motor vehicle nov

  6. Slide 6: Group Remuneration Services financial performance

    For personal use only PagePage 6 6 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation Group Remuneration Services financial performance 2013 2012 % $000 $000 Inc Segment revenue 155,855 137,284 14% (1) Expenses Employee expenses 62,408 54,250 15% Depn and amort of PPE and software 3,48

  7. Slide 7: Group Remuneration Services financial performance (cont'd)

    For personal use only PagePage 7 7 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation Group Remuneration Services financial performance (cont’d) 160.0 100.0% 140.0 155.9 90.0% Revenue 8-year CAGR 20% EBIT 8-year CAGR 28% 137.3 80.0% 120.0 70.0% 100.0 111.6 60.0% $m 80.0 92.1 50.0% 60.0

  8. Slide 8: Competitive strengths and performance indices

    For personal use only PagePage 8 8 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation Competitive strengths and performance indices Group Remuneration Services Productivity Index (7/08 = 100) MMS Customer Satisfaction Index [Rolling 3 month Revenue (ex SP Interest) / FTE] December 2008

  9. Slide 9: Asset Management segment financial performance

    For personal use only PagePage 9 9 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation Asset Management segment financial performance 2013 2012 % $000 $000 Inc Segment revenue 171,962 163,342 5% Expenses Depreciation of motor vehicle fleet 74,729 66,942 12% Interest on fleet financing 1

  10. Slide 10: Asset Management segment commentary

    For personal use only PagePage 10 10 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation Asset Management segment commentary  Good growth in assets under finance (assets under finance $307m versus $262m FY12; $220m FY11; $214m FY10).  5% NPAT growth notwithstanding lower remarketing i

  11. Slide 11: Asset Management segment commentary (cont'd)

    For personal use only PagePage 11 11 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation Asset Management segment commentary (cont’d)  Competitive cost of funds.  Net interest margin exceeded budget.  Increase in yield from in-life services, through leveraging combined scale of Asset

  12. Slide 12: Asset Management segment commentary (cont'd)

    For personal use only PagePage 12 12 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation Asset Management segment commentary (cont’d)  New asset management system successfully delivered.  UK JV up and running and gathering momentum.  CLM Asset Management acquired for £8.5m (A$14.4m),

  13. Slide 13: Fleet asset WDV

    For personal use only PagePage 13 13 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation Fleet asset WDV 400 350 Growth 17.2% 300 Growth 19.1% 307 ($m) 250 Growth 2.8% Growth 0.5% 262 200 213 214 220 150 100 50 0 Acquisition 1 April 2010 30-Jun-10 30-Jun-11 30-Jun-12 30-Jun-13

  14. Slide 14: Federal Government FBT Announcement, July, 2013

    For personal use only PagePage 14 14 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation Federal Government FBT Announcement, 16 July, 2013  No notice; no consultation; took the industry completely by surprise.  Effective 5.00pm 16 July, 2013.  As per MMS ASX releases, an immediate a

  15. Slide 15: Federal Government FBT Announcement, July, 2013 (cont'd)

    For personal use only PagePage 15 15 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation Federal Government FBT Announcement, 16 July, 2013 (cont’d)  All staff, which included additional hires for anticipated 1HFY14 growth were retained. This decision was taken having regard to the bal

  16. Slide 16: Novated lease orders Pre and Post July 2013

    For personal use only PagePage 16 16 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation Novated lease orders Pre and Post 16 July 2013 Average novated lease orders per working day FY13 base index = 100

  17. Slide 17: UK acquisition

    For personal use only PagePage 17 17 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation UK acquisition  MMS’ fully owned subsidiary, Maxxia (UK) Ltd, has acquired 100% of the issued shares of CLM Fleet Management plc – settlement 22 October 2013.  CLM provides fleet management servic

  18. Slide 18: UK acquisition (cont'd)

    For personal use only PagePage 18 18 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation UK acquisition (cont’d)  The CLM management team will comprise a combination of existing CLM management team and the Maxxia Limited UK joint venture team.  Although JV joint ownership vehicle rema

  19. Slide 19: UK structure pre CLM

    For personal use only PagePage 19 19 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation UK structure pre CLM 50% Visper 50% 100% Asset MMS MMS Finance Owned (VAF) Maxxia Ltd Maxxia Finance Ltd (Asset Finance Brokerage) (Panel funder to Maxxia UK)

  20. Slide 20: JV partner's vs MMS' return post CLM acquisition

    For personal use only PagePage 20 20 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation JV partner’s vs MMS’ return post CLM acquisition will be: 13% VAF 100% MMS 87% MMS Maxxia Ltd and CLM Maxxia Finance Ltd (End to end asset brokerage and (Panel funder to Maxxia UK management) and CL

  21. Slide 21: Why UK?

    For personal use only PagePage 21 21 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation Why UK?  Diversification of earnings  UK has active employee benefits market  Substantial contract hire and car salary sacrifice market – see over  Legal environment very similar  Opportunity f

  22. Slide 22: UK market of number of businesses and employees

    For personal use only PagePage 22 22 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation UK market of number of businesses and employees  Estimated 4.5 million private sector businesses  Private sector workforce is 23m: • 5m earn less than national minimum  Majority are very small; o

  23. Slide 23: Why CLM?

    For personal use only PagePage 23 23 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation Why CLM? Client base. High quality, long-standing customer Growth. The combined business will bring base, bringing asset finance cross-selling additional income opportunities opportunities for Maxxi

  24. Slide 24: Developing the UK integrated business model

    For personal use only PagePage 24 24 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation Developing the UK integrated business model Maxxia core CLM current core Contract Hire/ Operating Lessors/ Fleet competencies competencies Vehicle Asset Finance Solution Services  Proactive sales c

  25. Slide 25: CLM – A good business at a sensible price

    For personal use only PagePage 25 25 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation CLM – A good business at a sensible price  A low risk, modest investment opportunity to accelerate our UK ambitions.  Provides full end to end fleet and asset management capability and a platform

  26. Slide 26: MMS Outlook

    For personal use only PagePage 26 26 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation MMS Outlook  Net of the impact of 16 July FBT announcement, another year of profitable growth in both segments.  A return to business-as-usual in novated leasing revenue during H2FY14.  Further p

  27. Slide 27: Sensitivities

    For personal use only PagePage 27 27 MMS Group MMS Group Annual General 2012 AGM Meeting Presentation Sensitivities  Falling interest rates vs pcp (earnings on float).  Second hand car prices (remarketing earnings).  New car sales (novated lease participation).  Government austerity/redundancy p

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