Slide 1: 2023 Half Year results
2023 Half Year results Scott Wharton, Managing Director and CEO Anthony Dijanosic, Chief Financial Officer Sarah Haas, Chief Operating Officer 24 August 2023
Slide 2: Strong market position and solid first half
Strong market position and solid first half $29.4m H1 2023 NPATA; 15.5cps fully franked interim dividend 385,000 ~3,700 ~1.5m Employees in existing Active customers Employer clients employer client base Established player and market leader with scale Diversified, long term client base in attract
Slide 3: 2023 Half Year results
2023 Half Year results 3
Slide 4: Solid leasing demand driving revenue growth; recent resourcing investments position us to continue earnings momentum
Solid leasing demand driving revenue growth; recent resourcing investments position us to continue earnings momentum NPATA Solid leasing Strong uptick in Electric Car Leasing Portal High cash flow of $29.4m demand Vehicle (EV) demand conversion and 2023 interim dividend at 70% of NPATA Revenue of $1
Slide 5: Financial performance
Financial performance Half Year CY 2023 5 5
Slide 6: Continued revenue growth and building earnings momentum – strong EBITDA margin maintained through active cost management
Continued revenue growth and building earnings momentum – strong EBITDA margin maintained through active cost management Change Change H1 20231 H1 2022 % H2 2022 % Revenue 116.6 113.6 3% 111.1 5% Revenue growth from increased novated leasing Product costs (4.1) (3.8) 9% (3.8) 9% settlements and yiel
Slide 7: High cash flow conversion of 101% of NPATA and reduced levels of IT development capex
High cash flow conversion of 101% of NPATA and reduced levels of IT development capex H1 2023 H1 2022 $m adjusted1 adjusted1 Receipts from customers (inclusive of GST) 134.0 144.6 H1 2022 included one-off St George payment of future performance fees of $11.6m Payments to suppliers and employees (inc
Slide 8: Conservative balance sheet with low 0.4x leverage
Conservative balance sheet with low 0.4x leverage 30 Jun 2023 31 Dec 2022 $m statutory statutory Cash 24.7 26.7 Increase in borrowings following payment of Other current assets 60.6 58.9 $18.5m special dividend in March 2023 Current assets 85.3 85.6 $13.1m increase in net debt position following Non
Slide 9: Government policy driving strong EV demand
EV%1 of new car quotes (i.e. excl. used cars and refinances) Government policy driving 35% 30% strong EV demand 25% 20% ▸ Government policy removes FBT for eligible 15% EVs1 10% 5% ▸ EV demand increased significantly in H1 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2023 and is high across all client segments
Slide 10: EVs on track to dominate new car orders in several client segments
EV%1 of new car orders (i.e. excl. used cars and refinances) EVs on track to dominate 50% 40% new car orders in several 30% client segments 20% 10% ▸ EV proportion of new car lease orders and 0% settlements growing across all client Q1 Q2 Q3 Q4 Q1 Q2 2022 2023 segments Corporate Education Government
Slide 11: Operational update
Operational update 11
Slide 12: Growth in packages, with stable novated leases under management and fleet managed vehicles
Growth in packages, with stable novated leases under management and fleet managed vehicles Salary packages Novated leases under management Fleet managed vehicles CY DET Vic New CY CY HY HY CY DET Vic New CY portfolio CY HY HY CY CY CY HY HY 2021 not client win organic 2022 organic 2023 2021 not clie
Slide 13: Solid leasing demand and improving yield
Solid leasing demand and improving yield H1 2023 v. H1 20221 v. H2 20221 Continued customer interest ▸ Customer enquiry levels remain strong Total leasing leads +27% +20% Electric Car Discount Policy is contributing to quote uplift Total leasing quotes +12% +19% ▸ EV quote to vehicle order conversio
Slide 14: Vehicle delivery timeframes stabilising
Vehicle delivery timeframes stabilising ▸ Delivery timeframes remain elevated but have stabilised. Significant variation exists across Average vehicle order to delivery makes and models timeframes for Smartgroup top 30 makes/models by volume1 ▸ Increase in EV demand driving change in top 30 90 make-
Slide 15: Stabilising delivery timeframes see settlements and new vehicle orders converging
Stabilising delivery timeframes see settlements and new vehicle orders converging; vehicle orders now at pre-COVID levels1 New vehicle orders and settlements1 10% 0% Cancellation and credit approval rates ▸ Cancellation rates remain at mid-single digit -10% percentages -20% ▸ Credit approval rates s
Slide 16: Car Leasing Portal pilot
Car Leasing Portal pilot +35% increase in quotes ▸ Portal allows customers to obtain quotes and process credit applications 24/7 Tranche 1, 2 and 3 client proportion of 2022 new lease quotes ▸ Pilot (tranche 1) commenced Feb 2023 to c.100 clients. A further c.100 clients live Apr/May 2023 6% 10% (tr
Slide 17: Summary and Outlook
Summary and Outlook 17 17
Slide 18: Positive trading and operational momentum
Positive trading and operational momentum +6,000 salary Continued solid Vehicle delivery Positive impact Continued trend package growth, leasing demand timeframes are being seen from of EV demand, both organic and with 27% growth in stabilising; good Car Leasing Portal – with good from client wins l
Slide 19: Revenue growth, with ongoing focus on cost management
Revenue growth, with ongoing focus on cost management Positive momentum in revenue (+5%), EBITDA (+7%) and NPATA (+2%) versus H2 2022 Revenue growth from increased novated leasing settlements and yield Higher costs from H2 2022 remuneration reviews and additional resourcing to meet novated dem
Slide 20: Positive start to H2
Positive start to H2 Fleet vehicles under management expected to grow in H2 by c.1,000 vehicles (+5%) from new clients Leasing demand continues to be stronger than 2022 Active cost management continuing 20
Slide 21: Appendix
ae Appendix Ta
Slide 22: Reconciliation of earnings to statutory financial statements
Reconciliation of earnings to statutory financial statements Add back: Add back: HY 2023 Non-IFRS Restructuring CEO transition HY 2023 $m statutory measures costs costs adjusted Revenue 116.6 - - - 116.6 Operating EBITDA 46.4 - 0.3 0.3 47.0 Joint venture contribution 0.2 - - - 0.2 Segment note EBITD
Slide 23: Balance sheet
Balance sheet $m Note 30 June 2023 statutory 31 Dec 2022 statutory Cash 24.7 26.7 Restricted cash 11 33.8 36.0 Trade and other current assets 26.8 22.9 Current assets 85.3 85.6 Property and equipment 2.3 1.9 Right-of-use assets – Smartgroup funded vehicles 8.4 6.5 Right-of-use assets – other 5.5 6.6
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