Mcmillan Shakespeare Limited · ASX:MMS
Mcmillan Shakespeare — Investor Presentation (April 2014)
24 slides from Mcmillan Shakespeare's investor presentation, Apr 30, 2014
Slide 1: Introduction to the UK Businesses
For personal use only INTRODUCTION TO THE UK BUSINESSES
Slide 2: 2008 – Financial Crisis & beyond!
2008 – Financial Crisis & beyond ! For personal use only
Slide 3: MMS' UK opportunity: accelerated growth
MMS’ UK opportunity: accelerated growth For personal use only Post GFC environment & introduction of Basel III is creating structural shifts and a significant market opportunity for MMS to provide integrated asset management, asset finance and vehicle leasing services including salary sacrifice in t
Slide 4: Recap on Basel III
Recap on Basel III For personal use only Regulatory environment changing: Basel III requires significant changes to the following : Risk Based Capital Changes - cost of allocating capital to smaller value transactions - cost of capital to operational risk Leverage - Lower gearing and full transparen
Slide 5: UK market
UK market Estimated 4.5 million private For personal use only sector businesses Annual new car finance £18.35 billion Approx £15 billion of other (non (business & consumer) car) asset finance annually UK financial sector recovering from crisis Borrowing still challenging in some sectors Market fragm
Slide 6: Market opportunity
Market opportunity For personal use only There are salary packagers / benefit providers operating under the UK tax laws (notably for cars and child care) and there is a large market for asset finance and management (2.3 million fleet vehicles). No UK provider has an integrated offering such as MMS d
Slide 7: Competitive environment
Competitive environment For personal use only Government and industry bodies focused on generating lending required to restore and accelerate economic growth Banks de-leveraging and de-risking and attempting to restore profitability Banks have also sought to restrict their lending to their own custo
Slide 8: Maxxia has arrived in the UK!
Maxxia has arrived in the UK! For personal use only
Slide 9: MMS UK market entry model
MMS UK market entry model For personal use only • Maxxia (UK) is a 50/50 joint venture company between Visper Asset Finance Limited (VAF) and MMS with an opportunity to move to100% after five years. • Required initial minimal risk capital • Structured to align the ongoing capital required in accorda
Slide 10: UK acquisition
UK acquisition For personal use only Maxxia (UK) Ltd acquired 100% of the issued shares of CLM Fleet Management plc on 22 October 2013. CLM provides fleet management services to over 12,500 vehicles in the UK market. Revenue (net of customer recharges) - £7.7m (A$13m) Purchase price of £8.5m (A$14.4
Slide 11: Why CLM?
Why CLM? For personal use only Client base. High quality, long-standing Growth. The combined business will bring customer base, bringing asset finance cross- additional income opportunities selling opportunities for Maxxia leading to Employee leasing. Strong employee base within greater customer ent
Slide 12: CLM brings key benefits to the joint venture
CLM brings key benefits to the joint venture For personal use only + Income + + Impressive client base Proposition Additional income Brings complementary FTSE corporate, well streams from fleet product to extend known, significant and management portfolio provides highly regarded local and activitie
Slide 13: Developing the UK integrated business model
Developing the UK integrated business model For personal use only Maxxia core CLM current Contract Hire/ Operating Lessors/ Fleet Managers competencies core Proactive sales Vehicle competencies Leasing Asset Finance Solution Services culture Novated Managing vehicle Strong marketing Lease Fleet valu
Slide 14: How MMS adds value
How MMS adds value For personal use only Strong Capital Base / Balance Sheet Strong liquidity and ability to invest in: Acquisitions to create a best in class model Differentiation Innovation Growth Shared learning and intellectual capital Strong risk and operational management Low cost, low risk ma
Slide 15: Execution well advanced
Execution well advanced For personal use only JV formed Business Launched Maxxia brand MMS enters origination Maxxia Acquired CLM launched UK boosted Finance 1st Feb 13 1st April 13 1st July 13 1st Aug 13 22nd Oct 13
Slide 16: Accelerated growth strategies - strategic partnerships and relationships
Accelerated growth strategies - strategic partnerships and For personal use only relationships £ Maxxia assists Wide range of customers to fund funding options their capital programs Professional Specialist asset Advisors finance providers & managers
Slide 17: Results focused marketing
Results focused marketing For personal use only Find & Cross- Nuture Convert Be found sell • Build profile & • Build profile & credibility • Support customer • Leverage CLM credibility • Start the conversation acquisition process relationships • Be found • Engage, remind, • Monitor success • Support
Slide 18: Funding panel developments
Funding panel developments For personal use only Siemens Financial Services ABN AMRO
Slide 19: Diversified funding model
Diversified funding model For personal use only Product development P&A Structures Partnering Funding solutions Acquisition Panel of UK and overseas Portfolio growth fund funders well advanced
Slide 20: New integrated management team
New integrated management team For personal use only Debbie Baker Gordon Calder-Jones Simon Cotton Catherine Dawson Lisa Edwards Steve Edwards Robert Eggleston Julian Humphreys John Kelly Chris Mitchinson Roger Skinner Gareth Shaw Mike Thake
Slide 21: Team background
Team background Executive & operational roles in the largest UK For personal use only asset finance companies with corporate & retail Creation of a successful finance focus and over £12bn in assets international leasing brand International leadership and growth in 17 countries Strategic & operationa
Slide 22: Conclusions
Conclusions For personal use only GFC & introduction of Basel III are creating structural shifts and significant market opportunities for MMS to provide asset management, asset finance and vehicle leasing services including salary sacrifice in the UK Good progress in developing a unique, integrated
Slide 23: Our core values
Our core values are of trust, transparency, integrity and empathy. For personal use only Trust. Complete confidentiality, fairness and respect. Transparency. Absolute clarity at all stages of our relationships. Integrity. Unquestionably the highest standards of professionalism. Empathy. Understandin
Slide 24: Maxxia is no ordinary asset finance company
For personal use only Maxxia is no ordinary asset finance company. We offer You can Our people have more. trust us. experience and knowledge.
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