Mcmillan Shakespeare Limited · ASX:MMS
Mcmillan Shakespeare — FY2023 Earnings Presentation
31 slides from Mcmillan Shakespeare's earnings presentation, Aug 23, 2023
Slide 1: McMillan Shakespeare Limited 2023 Investor Presentation
23 August 2023 Manager Company Announcements ASX Limited 20 Bridge Street SYDNEY NSW 2000 By E-lodgement McMillan Shakespeare Limited 2023 Investor Presentation This release contains an announcement to the Australian Securities Exchange Limited (ASX) regarding the following: 1. FY23 Results Investor
Slide 2: MMS FY23 Results Presentation
MMS FY23 Results Presentation 23 August 2023 Presenters Rob De Luca CEO & Managing Director Ashley Conn CFO & Company Secretary
Slide 3: Disclaimer and important notice
Disclaimer and important notice This presentation has been prepared by McMillan Shakespeare Limited ABN 74 107 233 983 (“MMS”). It contains summary information about MMS and its subsidiaries and their activities current as at the date of this presentation. The presentation contains selected informat
Slide 4: Acknowledgement of Traditional Owners
We would like to acknowledge the Traditional Owners of the lands on which we meet today and pay our respects to Elders past and present. MMS
Slide 5: FY23 Overview
FY23 Overview MMS 1
Slide 6: FY23 Highlights
FY23 Overview FY23 Highlights Customer focus EV Orders NL Sales PSS Customers and EV opportunity 1 18.2% 13.3% 22.8% driving growth → → of NL orders H2FY23 Growth in normalised Normalised UNPATA1 Normalised EPS1 Normalised ROCE1 financial and operating 2 $86.2m 119.6c 40% performance Up 3.0% Up 10.5
Slide 7: FY23 Financial performance
FY23 Overview FY23 Financial performance Continuing operations FY23 FY22 Variance FY23 Normalised UNPATA from total operations up 3.0% to $86.2m. Normalised Revenue ($m)1 471.4 418.8 12.5% The Aggregation and the UK businesses have been classified as discontinued operations relating to assets held f
Slide 8: Strategy progress to deliver sustainable growth
FY23 Overview Strategy progress to deliver sustainable growth MMS: Making Matters Simple Our Purpose To make a difference to people’s lives Our Vision To be the trusted partner, providing solutions in making complex matters simple Excel in customer Technology-enabled Competency-led 1 2 3 experience
Slide 9: Simply Stronger Program (FY23–FY25)
FY23 Overview Simply Stronger Program (FY23–FY25) To deliver superior digital experience and solutions for customers, technology-enabled productivity and growth. Excel in customer Technology-enabled Competency-led 1 2 3 experience productivity solutions Improve customer app Modernise technology Leve
Slide 10: Progress on sustainability agenda during FY23
FY23 Overview Progress on sustainability agenda during FY23 Achieving MMS targets while supporting EV adoption for our clients and customers Low 18.2% 35% Climate Change Action Plan carbon future EV orders of of MMS AU/NZ fleet 2HFY23 NL orders converted to EVs Developed Customer 2-Year Disability S
Slide 11: Financial performance
Financial performance MMS 7
Slide 12: UNPATA bridge
Financial performance UNPATA bridge Continuing operations1 Total operations Normalised UNPATA2,3,4 Normalised EPS2 Normalised UNPATA2,3,4 Normalised EPS2 $77.9m 108.1c $86.2m 119.6c up 9.0% up 17.0% up 3.0% Up 10.5% Continuing operations $6.4m GRS AMS PSS Corporate $4.1m $0.7m $1.4m $0.2m (11.5) (12
Slide 13: Balance sheet
Financial performance Balance sheet Established $60m working capital facility (fully drawn). Completed $90.3m off-market share buy-back and paid dividends at 100% payout ratio of Normalised UNPATA $m 30 June 23 30 June 22 Cash at bank 60.6 160.8 Net debt to EBITDA1 1.1x vs 0.4x pcp Restricted client
Slide 14: Cash flow
Financial performance Cash flow Cash conversion in line with UNPATA. Returned surplus cash to shareholders $90.3m of off-market share buy-back completed. Full year dividend reflects 100% payout ratio of Normalised UNPATA. Returns to shareholders $m 26.3 47.5 77.9 176.7 90.3 46.0 51.6 24.1 ■ 1H Divid
Slide 15: Segment Performance
Segment Performance MMS 11
Slide 16: GRS: Highlights
Segment performance GRS: Highlights Customer growth, higher yields from increasing take-up of EVs and benefits of rising interest rates. #1 in Salary packaging and #1 in Novated Leasing $206.6m $232.8m Continued momentum in customer growth with Normalised 1 salary packages up 6.3% and novated leases
Slide 17: GRS: Novated leasing
Segment performance GRS: Novated leasing Growth in EV1 demand benefiting orders, sales and NAF Increased EV1 demand and novated Stabilised supply and transition to Increasing percentage of new EV1 sales value proposition driving order growth. EVs1 driving sales growth. driving higher sales and NAF.
Slide 18: GRS: OnBoard Finance (Warehouse)
Segment performance GRS: OnBoard Finance (Warehouse) 20% monthly volume target achieved in June of FY23 Update Strategic and financial benefits – 20% of monthly volume achieved – Secures and diversifies our funding sources Normalisation in June of FY23 – Increase in annuity based income – FY23 exper
Slide 19: GRS: OnBoard Finance (Warehouse) FY24
Segment performance GRS: OnBoard Finance (Warehouse) FY24 FY24 Normalisation impact estimated at ~$12m1. Transition period expected to FY25 (inclusive). Normalisation Transition Period FY24 Normalisation adjustment estimated – Normalised refers to adjustments at ~$12m1 with be a higher proportion of
Slide 20: AMS: Highlights
Segment performance AMS1: Highlights Elevated yields continue with growth in net amount financed $170.6m $187.4m Net amount financed Written down value up 4.1% up 1.0% Revenue NAF $m WDV $m $187.4m 139.0 144.7 318.0 320.8 9.9% → FY22 FY23 $27.8m $28.7m FY22 FY23 FY22 FY23 EBITDA $28.7m AM-ANZ Remark
Slide 21: PSS: Highlights
Segment performance PSS: Highlights Strong customer growth and margin expansion from investments in scalable platform whilst supporting scheme outcomes, integrity and sustainability $41.3m $48.6m Strong customer growth, with no NDIS annual fee increase and increased plan duration experience. Plan Tr
Slide 22: Discontinued Operations Relating to Assets Held For Sale
Segment performance Discontinued Operations Relating to Assets Held For Sale MMS has simplified the portfolio with the sale of Aggregation in July 2023 and an agreement to sell the UK business. These businesses are classified as Discontinued operations relating to assets held for sale in the financi
Slide 23: Outlook and priorities
Outlook and priorities MMS 19
Slide 24: Outlook and priorities
Outlook and priorities Outlook and priorities Executing on our strategy to deliver sustainable growth FY24 Expected market conditions – Carryover of $32.3m of revenue for future periods – FY23 auto supply dynamic to continue – EV uptake to continue – Labour market, interest rate and inflationary pre
Slide 25: Appendix
Appendix MMS 21
Slide 26: Reconciliation between NPAT and Normalised UNPATA
Appendix Reconciliation between NPAT and Normalised UNPATA $m FY23 FY22 Variance Statutory NPAT 32.3 70.3 (54.1%) Amortisation of intangible assets acquired on business combination 1.8 1.8 (0.3%) Acquisition and disposal related expenses 1.0 2.2 (54.3%) Capital structure costs 0.4 0.0 >100% UK tax c
Slide 27: Return on capital employed (ROCE) calculation
Appendix Return on capital employed (ROCE) calculation Return on Capital Employed (ROCE) $m FY23 FY22 Normalised EBIT Statutory equity 145.6 291.4 Last 12 months Normalised EBIT is before the pre-tax impact of acquisition and Impairments1 42.5 7.2 divestment related activities, accounting standard c
Slide 28: Funding overview
Appendix Funding overview – Established 5-year bullet loan facilities totalling up to $60m with WBC and NAB for working capital purposes (fully drawn) – Extended and increased revolving Asset Finance debt facilities previously expiring 31st March 24 – Paid out UK debt facilities as scheduled on 31st
Slide 29: Segment financials
Appendix Segment financials GRS AMS PSS MSL MMSG $m FY23 FY22 % FY23 FY22 % FY23 FY22 % FY23 FY22 % FY23 FY22 % Normalised Revenue1 232.8 206.6 12.7% 187.4 170.6 9.9% 48.6 41.3 17.7% 2.6 0.3 >100% 471.4 418.8 12.5% Normalised EBITDA1 90.2 82.2 9.7% 28.7 27.8 3.3% 12.3 10.1 21.0% 0.1 (2.1) >(100%) 13
Slide 30: Calendar
Appendix Calendar Final FY23 Results Release Wednesday, 23 August 2023 Ex-dividend Thursday, 7 September 2023 Record date Friday, 8 September 2023 Payment date Friday, 22 September 2023 MMS 26
Slide 31: MMS
MMS