Slide 1: FY23 results presentation
FY23 results presentation FleetPartners Group Limited (ASX:FPR) 13 November 2023
Slide 2: Legal disclaimer
Legal disclaimer This Presentation contains summary information about FleetPartners Group Limited (FleetPartners) and its subsidiaries and their activities, current as at the date shown on the front page of this Presentation. The information in this Presentation does not purport to be complete. It s
Slide 3: Agenda
Agenda 1. Performance highlights 2. Financial result 3. Operating segment performance 4. Outlook 5. Appendices
Slide 4: 1. Performance highlights
1. Performance highlights F FleetPartners
Slide 5: FY23 performance highlights
FY23 performance highlights Continuing to deliver NBW and AUMOF growth despite a challenging supply environment NPATA New business writings (NBW) AUMOF 1,2 $762m NBW, with growth $88.0m Strong NPATA result driven by AUMOF growth and EOL at $7,598 per unit +13% driven by 2H23 performance, as supply b
Slide 6: Strategic Pathways TAM
Strategic Pathways Expanding market share in three underpenetrated, high returning segments – strong growth across the board, but in particular Small Fleets and Novated growing at 23% and 38%1 respectively Corporate AU & NZ Small Fleets2 Novated 2.5m 1.5m c.1m TAM3 vehicles4 vehicles4 employees5 ✓ 2
Slide 7: Strong orders intake begins to convert into NBW
Strong orders intake begins to convert into NBW Strategic Pathways delivering a strong NBW performance, whilst maintaining the order pipeline Orders taken1 NBW2 Order pipeline1 ◼ Sale and lease-back 1.6x 3.0x 3.0x 2.7x 2.7x 1.3x 1.2x 1.2x 1.2x $4m $8m $26m 2.1x 1.0x $440m 1.4x $331m $342m $339m $322
Slide 8: Novated demand benefiting from Electric Car Discount
Novated demand benefiting from Electric Car Discount Significant increase in orders taken and NBW in FY23 driven by uptake of EVs … largely incremental to ICE demand Average novated lease value and EV % of NBW Novated NBW by powertrain type EV penetration ICE Hybrid EV $85m Average lease value (all
Slide 9: Corporate uptake of EVs driven by Government policy
Corporate uptake of EVs driven by Government policy As the leading FMO in NZ where the EV transition is further progressed, FleetPartners is exporting expertise across the Group and is well positioned to capitalise on the EV transition, which has only just begun in Australia New Zealand AU & NZ orde
Slide 10: Accelerate program’s key milestones
Accelerate program’s key milestones Business transformation program that will deliver an annualised $6m opex saving by mid-FY25. Running to plan both from a timing and spend perspective FY23 FY24 FY25 Status Accelerate Program • Removes duplication through consolidation of brands, WAVE 1 1. FleetPlu
Slide 11: Capital management
Capital management $73 million to be bought back for the full year, which is 83% of FY23 NPATA Buy-back1 Comments 4% of SOI Cumulatively c.27% • Completed $43 million 1H23 buy-back, including $10 million special buy-back and $5 million illustratively to be of SOI cancelled by carried forward from 2H
Slide 12: Environmental, social and governance highlights
Environmental, Environmental,social socialand and governance highlights governance highlights COMMITTED TO OPERATING IN AN ETHICAL AND TRANSPARENT WAY 12
Slide 13: EPS growth drivers
EPS growth drivers We have capitalised on the tailwinds of COVID-19 … but have also put the business on a firm footing for longer term growth Strategic Pathways Accelerate program Share buy-back Acquisitions ✓ +13%1: NBW growth as new car ✓ Program running to plan both from a ✓ $43m 1H23 buy
Slide 14: 2. Financial result
2. Financial result F FleetPartners
Slide 15: New business writings
New business writings NBW up 13%1,2 compared to FY22 as supply began to improve in 2H23 New Business Writings1,2 Comments ◼ Sale and lease-back • Improvements in supply of some vehicle types towards the end of FY23 supported significant NBW growth in 2H23, driving overall growth in NBW of $8m 13%1,2
Slide 16: Asset growth driven by balance sheet funded leases
Asset growth driven by balance sheet funded leases AUMOF up 7% as supply challenges began to ease in 2H23 Assets under management or financed1 Comments $2,036m $1,935m • AUMOF is the key driver of net operating income pre EOL and provisions, $1,882m $1,903m $1,897m generating predictable, annuity-li
Slide 17: Income statement
Income statement As expected, NPATA is returning to normalised levels as COVID-19 tailwinds unwind, and despite supply constraints $ million FY23 FY22 PCP (%) Comments Net operating income pre EOL and provisions1 150.3 157.4 (5)% • NOI pre EOL & provisions margin returned to normalised range – large
Slide 18: NOI pre EOL and provisions margin
NOI pre EOL and provisions margin Margin has returned to normalised range in FY23, as previously guided Average AUMOF & NOI pre EOL and provisions margin Illustrative Illustrative average AUMOFavg. AUMOF $1.95bn $2.00bn $2.10bn $2.20bn 8.23% Illustrative Illustrative NOI&pre NOI pre EOL EOL and prov
Slide 19: End of lease income
End of lease income End of lease income remains elevated, but is slowly trending downwards, having peaked in FY22 Vehicles sold & end of lease income per vehicle1 Comments • Used vehicle prices remain elevated, but have reduced from the peak in Feb-22 by c.25%3 EOL charges per vehicle ($) $8,813 Pro
Slide 20: Portfolio credit quality remains high
Portfolio credit quality remains high Portfolio continues to perform strongly with minimal exposure to higher risk sectors 90+ day arrears1 (bps) Portfolio exposure 5% Building construction, food services and retail Other Industries 50 Reduced 36 from 35bps at Mar-23 95% 17 2 3 FPR Sep-23 FPR Avg Pr
Slide 21: Funding and liquidity
Funding and liquidity Successful issuance of Australian ABS, extension of warehouses and corporate debt facility providing capacity to support growth plans Comments AU & NZ warehouse capacity at Sep-23 • Warehouse funding capability since 2007 and regular ABS issuer since 2010, with a proven ability
Slide 22: Cash generation
Cash generation Strong organic cash generation supported by elevated EOL and cash tax shield $ million FY23 $ million FY23 Operating cash flow Net cash flow 4.5 Customer receipts 815.0 Capex 19.5 Payment to suppliers & employees (413.0) Change in corporate debt 10.0 Income tax paid (10.8) Movement i
Slide 23: 3. Operating segment performance
3. Operating segment performance
Slide 24: Fleet Australia
Fleet Australia Strong order activity drove NBW in 2H23 as supply constraints began to ease – asset base remains stable Orders taken1 NBW Comments 1.3x $175m 1.1x $159m $159m • Demand has increased with new orders taken for 2H23 at 1.3x 1.0x 1.0x 1.0x $141m $142m the levels seen pre-COVID-191 0.9x $
Slide 25: Fleet New Zealand
Fleet New Zealand Strong increase in orders taken and NBW in 2H23 – asset base is growing NZD NZD Orders taken1 NBW Comments 2.1x $124m 1.9x 1.9x • Fleet New Zealand has seen a strong uptick in orders taken in $98m $96m $95m 1.5x 1.5x 2H23, reaching 2.1x pre-COVID-19 levels1 1.4x $84m $75m • NBW for
Slide 26: Novated
Novated Significant increase in orders taken in FY23, which started flowing to NBW in 2H23 – asset base is growing Orders taken1 NBW2 Comments $151m 2.2x 1.8x • Novated has seen a significant increase in orders taken in 2H23, 1.5x $99m reaching 2.2x pre-COVID-19 levels1 and significantly higher than
Slide 27: 4. Outlook
4. Outlook F FleetPartners
Slide 28: FY24 expectation analysis
FY24 expectation analysis NOI pre EOL and provisions margin expected to continue to normalise, offset by growth in AUMOF FY24 FY23A Comments (expectation) • Growth in average AUMOF partially offset by reduction in management fees as extensions and inertia reduce to more NOI pre EOL and provisions $1
Slide 29: Operating environment and strategic priorities
Operating environment and strategic priorities FleetPartners is continuing to execute on its clear strategy to pursue long-term value creation Operating environment Strategic priorities FleetPartners today • Customer demand, indicated by orders taken, • Strategic Pathways delivering growth … targeti
Slide 30: Questions
Questions F FleetPartners
Slide 31: 5. Appendices
5. Appendices F FleetPartners
Slide 32: Operating segment results
Operating segment results Half-year ended March 2023 Fleet AU Novated Fleet NZ Group Half-year ended September 2023 Fleet AU Novated Fleet NZ Group ($m, unless stated) ($m, unless stated) NOI before EOL & Impairments 46.2 8.3 19.5 73.9 NOI before EOL & Impairments 46.5 12.1 17.8 76.3 End of lease 27
Slide 33: Balance sheet
Balance sheet Balance sheet remains strong, with disciplined capital management $ million 30 Sep 2023 30 Sep 2022 % Comments Assets Cash and cash equivalents 87.6 101.5 (14)% • Continuation of capital return to shareholders with the announcement of a Restricted cash and cash equivalents 159.5 136.8
Slide 34: Thank you
Thank you fleetpartners.com.au