Mcmillan Shakespeare Limited · ASX:MMS
Mcmillan Shakespeare — Shareholder Meeting (October 2011)
15 slides from Mcmillan Shakespeare's shareholder meeting presentation, Oct 25, 2011
Slide 1: MMS Group Annual General Meeting
For personal use only MMS Group Annual General Meeting 25 October 2011
Slide 2: Highlights FY11
Page 2 MMS Group Annual General Meeting For personal use only Highlights FY11 A year of consolidation, consistent delivery and ongoing, profitable, organic growth: Consolidated NPAT of $43.5m (normalised growth of +56%). Normalised(1) Basic EPS growth of 55%. Group Remuneration Services NPAT of $31.
Slide 3: Historical normalised NPAT
Page 3 MMS Group Annual General Meeting For personal use only Historical normalised NPAT Profit recognised on ILA business 17.1 40 combination 43.5 Normalised NPAT 5-year CAGR of 30.9% 30 27.9 $m 20 20.5 17.4 13.2 10 11.3 0 FY06 FY07 FY08 FY09 FY10 FY11 NPAT continuing operations Acquisition gain
Slide 4: Historical earnings and dividends per share
Page 4 MMS Group Annual General Meeting For personal use only Historical earnings and dividends per share Normalised earnings per share (EPS) (1) Total dividends per share 70.0 40 EPS 5-year CAGR of 30.2% 60.0 35 50.0 30 40.0 25 cents cents 30.0 20 20.0 15 10.0 10 0.0 5 FY04 FY05 FY06 FY07 FY08 FY09
Slide 5: Group Remuneration Services financial performance
Page 5 MMS Group Annual General Meeting For personal use only Group Remuneration Services financial performance FY10 FY11 % Comment $000 $000 Inc Segment revenue 92,139 111,648 21% Consistent delivery and ongoing organic growth. Employee expenses 38,574 43,908 14% Significantly below revenue growth
Slide 6: Productivity and customer satisfaction indices
Page 6 MMS Group Annual General Meeting For personal use only Productivity and customer satisfaction indices . Group Remuneration Services Productivity Index (7/08 = 100) MMS Customer Satisfaction Index [Rolling 3 month Revenue (ex SP Interest) / FTE] December 2008 = 100 140 250 135 130 200 125 150
Slide 7: Asset Management segment performance
Page 7 MMS Group Annual General Meeting For personal use only Asset Management segment performance Strong EBIT/NPAT performance in first full year of ownership. Business now growing and gaining momentum, notwithstanding steep run-off curve when purchased. Operating lease book grew by $8m with $6m in
Slide 8: Asset Management segment performance (cont'd)
Page 8 MMS Group Annual General Meeting For personal use only Asset Management segment performance (cont’d) Improving, more balanced income streams, including in-life services / procurement. Residual value performance ahead of expectations. Credit losses for FY11 were less than $25,000 and were full
Slide 9: Overview of key activities in FY11
Page 9 MMS Group Annual General Meeting For personal use only Overview of key activities in FY11 Commitment to a clear strategy with disciplined prioritisation and execution. Demonstrated capabilities in distribution, BPO and Asset Management. Re-investment in business: - Recruitment, induction, tra
Slide 10: Key activities and highlights in FY11 (cont'd)
Page 10 MMS Group Annual General Meeting For personal use only Key activities and highlights in FY11 (cont’d) 106 new business contracts and cross-sales acquired in FY11. Re-marketing initiatives have delivered excellent results. Queensland Government contract retained. First class Business Continui
Slide 11: Key activities and highlights in FY11 (cont'd)
Page 11 MMS Group Annual General Meeting For personal use only Key activities and highlights in FY11 (cont’d) Developed new products for launch in FY12: broker finance channel; commercial hire purchase through Holden Dealers; vendor finance program.
Slide 12: Sensitivities
Page 12 MMS Group Annual General Meeting For personal use only Sensitivities Availability of Japanese motor vehicles post-earthquake (full availability now coming on line). New motor vehicle sales (to date, volatility in motor vehicle sales and poor retail environment do not appear to be impacting M
Slide 13: Sensitivities (cont'd)
Page 13 MMS Group Annual General Meeting For personal use only Sensitivities (cont’d) We are not aware of anything that occurred at the Tax Summit on 4 and 5 October that could potentially disturb or materially affect our Remuneration Services segment. This is not surprising because the Government h
Slide 14: Sensitivities (cont'd)
Page 14 MMS Group Annual General Meeting For personal use only Sensitivities (cont’d) Issue 2 - Novated leases: In last May’s Federal Budget, the Government accepted the Henry recommendation to move the FBT concession on motor vehicles to a flat 20% rate. See MMS ASX announcement on 11 May 2011 “Bud
Slide 15: Outlook
Page 15 MMS Group Annual General Meeting For personal use only Outlook Performance for 1QFY12 has exceeded our expectations. A year of consolidation, execution and ongoing organic growth. Consistent, profitable, cash generative growth through: - New business and cross-sales using our unique value pr
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