Mcmillan Shakespeare Limited · ASX:MMS
Mcmillan Shakespeare — The Macquarie Securities Australian Conference (Sydney) 2007
29 slides from Mcmillan Shakespeare's conference presentation, May 3, 2007
Slide 1: The Macquarie Securities Australian Conference (Sydney) 2007
oO MACQUARIE The Macquarie Securities Australian Conference (Sydney) 2007 Anthony Podesta Chief Executive Officer 3 May 2007 McMillan
Slide 2: McMillan Shakespeare Limited
McMillan Shakespeare Limited (Code: MMS) Approx $310 Million € RemSeryv &@® casilease Fasi on your budget, - Market capitalisation | Shakespeare = Approx 170,000 employees under management = Approx 23,000 motor vehicles under management/administration * Approx $3 billion in payroll receipts and 3 pa
Slide 3: Workplace Solutions & Benefit Programs
*Pre- tax Packaged Benefits" Ail Employers = +..Motor vehicles - traditional leasing short term leasing + In-house dining/benefits - «Laptop computer programs + Additional superannuation Public Hospitals / PBis Meal entertainment programs Living expenses Mortgage payments .. School fees Car insuranc
Slide 4: Salary Packaging Example (Mortgage Repayments & Laptop Computer)
Salary Packaging Example (Mortgage Repayments & Laptop Computer) Public Hospital Employee By salary packaging, an employee client could save up to $5,135 on morigage repayments & purchase of a $2,000 laptop computer as described below: 8.000 «pre-Tax Packaged Benefits * 8.000 All Employers +: Motor
Slide 5: Salary Packaging Example (Motor Vehicle Lease)
Salary Packaging Example (Motor Vehicle Lease) Full FBT Employer Aremployee client could save up to $4,688 per FAT year by salary packaging a novated motor vehicle lease (with # base value of $32,000) as described below: «pre-Tax Packaged Benefits» 6,000 + . 7 All Employers “800 + - Motor vehicles 4
Slide 6: Market Size
Market Size Market Size = The Australian employment market comprises approximately 10 million employees. Of this amount, approximately 10% are employed in the public sector, 83% in the private sector and the remaining 7% in the not-for-profit sector. « MSL’s target market comprises the entire public
Slide 7: Market Size - Vehicle Benefit Market
Market Size - Vehicle Benefit Market Viarket Size = The total vehicle benefit market comprises mainly fleet vehicles and novated lease vehicles. This is a subset of the overall Australian employment market (ie. employees who salary package may or may not include a car lease as part of such packaging
Slide 8: Laptops/Notebooks, Mortgage payments
¥Laptops/ Notebooks 4 Martgage. payments A Privat & Appl Per Bees]
Slide 9: Wierre purchasing carbon credits to offset wavel, ebectriciny
Wierre purchasing carbon credits to offset wavel, ebectriciny an! GUS COMMUTIDtON, Waste ahd paper use in oer local business. ihe climete of doing tuaines should change wo, We're a founding signatory to the Equator Principtes and a toanding carlicipant in global carbon markers. and we'll continue ou
Slide 10: Opportunity
Opportunity ge more tnan re nt No expense spared ~ at Byron’s preschool Childcare fees skyrocket 485%, EY AYNICOLETTEBURKE _previously unpublished more te hel 6%, ¢ ee a ving tris we | werk apre like ours get eo ahead’ BQ ote tan . . stance P eraijenrtimeneint Elder care takes an increasing toll on
Slide 11: Opportunity
Opportunity “Its simple. Strong work and family policies make good business sense. Based on our organisational values, Minter Ellison’s work life programs are a key competitive advantage in the recruitment, retention and development of top talent and in meeting the needs of clients”. Alan McArthur,
Slide 12: Why Childcare and Work-Life Balance Programs?
Why Childcare and Work-Life Balance Programs? “° Employers are increasingly aware that programs that seek to help employees @ Manage work, family and personal life can assist in: Attracting and maintaining staff Improving job and overall life satisfaction Assisting with the management of work and fa
Slide 13: Provision of Child and General Care Services to NSW Government Employees
Provision of Child and General Care Services to NSW Government Employees = ASX announcement made on 5 March 2007 that McMillan Shakespeare Limited has entered into a Memorandum of Understanding with the NSW Government to deliver childcare and general care services to NSW Government employees. The ob
Slide 14: Employer Provided Work Life Programs
i loyer Provided Childcare Placement | __ | Occasional Care Work Life Programs sist to locate ! _-+Payment to service / _+Payment of expenses provider by voucher : on tax payroll. mployer funded eQUCHON. . oe WV ElEG Shakespeare
Slide 15: Example - Employer Provided Childcare
Example - Employer Provided Childcare A registered nurse and a teacher have one child and use long day care for five days per week. The estimated annual benefit of salary packaging their childcare expenses at along day care centre is about $5,640 per annum. This reduces to $1,640 after allowing for
Slide 16: Employer Provided Childcare Annual Benefit
Employer Provided Childcare Annual Benefit $8,000 $7,357 $7,000 $6,000 $5,000 Assumptions $4,000 * 40 hrs of care per week for 48 weeks * Weekly cost $355 (ie gap payment) * Weekly CCB - $20 $3,000 * Childcare cost per week no CCB payment - $375 : : + Minimum CCB is deducted from employee payment by
Slide 17: Employer Provided Child Care
Employer Provided Child Care " FBT exemption in s47(2) of FBTAA « TR 2000/4 — ESSO case — business premises test Two factors (tests) need to be considered: 1. Two the control the employer has over the premises; and 2. The consistency of an employer’s actions and activities on the premises with those
Slide 18: Employer Child Care — Traditional Model
Employer Child Care — Traditional Model « Only one choice of centre « May not adequately cater for child care needs eg casual bookings / under 2 years « Salary packaging may not be available + Limited number of vacancies therefore majority of employees not catered for especially rural employees + De
Slide 19: Not Translated into Action by Employers
Not Translated into Action by Employers Why? * Financial risk — lease, build, own = Exposure to childcare operator ip = Lack of suitable property and location Equal access difficult to satisfy — large employers require multiple sites Hard to quantify employee needs — changing demographics Cost of a
Slide 20: McMillan Shakespeare MSA Model
McMillan Shakespeare Child Care Centre cBD Child Care Centre cBD Child Care Centre Parramatia Child Care Centre Wollongong MSA Model Priority access to a variety of child care centres and locations Salary packaging of child care payments Central booking system for child care placements Cater for lon
Slide 21: Objectives of the Model
Objectives of the Model « Establish access to quality childcare using existing facilities with vacancies " No need for an employer to establish a facility, fit out the facility etc « Link an employer and their employees with a one or multiple quality child care operators (rural and metropolitan loca
Slide 22: Employer Provided Childcare - The Model
Employer Provided Childcare - The Model Niclillan Shakespeare is seeking to form partnerships with operators acting as the agent for Employers » Program establishment = Use of accredited care providers = Monitor performance » Arrange payments * Bookings for childcare - Corporate childcare - Placemen
Slide 23: McMillan Shakespeare Voucher Program
McMillan Shakespeare Voucher Program Program aim — to assist the employee to attend work & confidently address family & personal demands by providing a broad range of services, including: ® Emergency/casual child care ® Vacation care/outside school care Eldercare-at-home Nanny service Nursing Home h
Slide 24: Examples of Payment Vouchers
Examples of Payment Vouchers Additional, Emergency / Ad Hoc, Replacement Care « Employee works overtime and requires additional childcare " A part-time employee is required to work a non-rostered day and requires childcare for that day « An employee attends a professional development activity in non
Slide 25: Examples of Payment Vouchers
Examples of Payment Vouchers Home Help " Housekeeping assistance while employee recovering from illness " Employee’s spouse ill and employee requires home help «» An employee who is a new parent is provided with a nappy service = Employee who is shifting residence is provided with removal assistance
Slide 26: McMillan Shakespeare's Client Composition — Private vs. Public Sector
McMillan Shakespeare's Client Composition — Private vs. Public Sector Private vs. Public Sector Private sector 25% Public sector 75% illan Shakespeare
Slide 27: McMillan Shakespeare's - FY06 Revenue
McMillan Shakespeare's - FY06 Revenue FY06 Revenue Other Programs . 2% Salary Packaging Administration Services 70% Fleet Managerial & Leasing Services 28% WV ElEG Shakespeare
Slide 28: McMillan Shakespeare Revenue and EBITDA Analysis
McMillan Shakespeare Revenue and EBITDA Analysis won Pevenue gyyy, EBITDA EBITDA Margin % 60 40.0% 38.0% 36.0% 34.0% 32.0% VoOLIas 30.0% AgSm 28.0% wyBreQ) 26.0% 24.0% 22.0% 20.0% FYO3A FYO4A FYOBA FYO6A WV ElEG Shakespeare
Slide 29: Outsourced Specialist Services
Outsourced Specialist business TeMitta & related services service ‘sector 7 " sectors Remuneration. services spectrum Financial Back office services Specialist administration : Childe includiiny + Asset Customer services. Remuneration policy and Fleet sala _ mor age Programs Finance & Management 7 r
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