Mcmillan Shakespeare Limited · ASX:MMS
Mcmillan Shakespeare — Macquarie Australia Conference 2014
17 slides from Mcmillan Shakespeare's conference presentation, May 8, 2014
Slide 1: Macquarie Australia Conference Investor Presentation
For personal use only Macquarie Australia Conference Investor Presentation May 2014
Slide 2: MMS overview
2 MMS overview For personal use only McMillan Shakespeare Group (ASX: MMS) Group Remuneration Services Asset Management • Salary packaging United Kingdom Australia & NZ administration • Novated leases • Fleet Management • Hospitals, health & charity 100% owned 50% owned • Operating leases, finance w
Slide 3: Revenue model
3 Revenue model For personal use only Remuneration Services Salary packaging administration fees: Annuity income stream; paid directly and regularly from employees’ salary. Interest income on float. Facilitation and procurement fees for assisting with novated lease settlements. Vehicle man
Slide 4: Integrated model - unique market position
4 Integrated model - unique market position For personal use only Operating Lessors/ Fleet Managers Core Skills Core Skills Proactive sales culture Managing vehicle value Retail sales and chain: procurement, Salary Packagers marketing maintenance and Budgeting/ BPO Novated disposals (insuran
Slide 5: Unique business model underpinned by key competitive strengths
5 Unique business model underpinned by key For personal use only competitive strengths World class service levels (as independently measured by net promoter methodology). Low delivered cost (expense ratio in GRS segment reduced from 75% in 2005 to 55%). Industry leading counter-party risk mana
Slide 6: NPAT Performance
6 NPAT Performance For personal use only 35 NPAT 8 year CAGR 17% 30 29.7 Results impacted by the now withdrawn 25 proposed 24.9 changes to motor vehicle FBT. 20 20.5 19.3 $m 15 10 11.2 9.5 7.9 5 6.1 5.3 0 1H FY06 1H FY07 1H FY08 1H FY09 1H FY10 1H FY11 1H FY12 1H FY13 1H FY14
Slide 7: Earnings Per Share
7 Earnings Per Share For personal use only 45.00 Results 40.00 impacted by the now withdrawn proposed 35.00 changes to Basic EPS 8-year CAGR of 16% motor vehicle 30.00 FBT. 25.00 cents 20.00 15.00 10.00 5.00 0.00 1H FY06 1H FY07 1H FY08 1H FY09 1H FY10 1H FY11 1H FY12 1H FY13 1H FY14 Basic EPS Cash
Slide 8: MMS Share Price v ASX
8 MMS Share Price v ASX For personal use only 3,500 CAGR: 35% 3,000 Base index of 100 2,500 2,000 1,500 1,000 500 CAGR: 5% 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 All ords MMS share price MMS IPO price 10 March 2004 - $0.50. Dividend return since IPO of $2.33.
Slide 9: Group Remuneration Services market size
9 Group Remuneration Services market size For personal use only Full FBT Rebatable FBT $17,000 Exempt $30,000 Exempt Types of Employers Government departments. Independent schools. Public hospitals. Public benevolent institutions. Private companies. Sporting clubs. Private not-for-profit hospitals.
Slide 10: Australian outsourced fleet vehicles as at June 2013
10 Australian outsourced fleet vehicles (‘000) as at 30 June 2013 For personal use only ILA is a tier 2 industry player. 76 ILA share of novated leases as % of total fleet less than AFLA average. 222 MMS’s expertise in novated lease allows MMS to target even greater % novated lease share. Ac
Slide 11: MMS' UK opportunity: accelerated growth in the medium term
11 MMS’ UK opportunity: accelerated growth in the medium term 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 includi
Slide 12: UK market size - businesses and employees
12 UK market size - businesses and employees Estimated 4.5 million private sector businesses For personal use only Private sector workforce is 23m: Majority are very small; over 95 per cent have less than 10 • 5m earn less than national minimum employees. wage Number of businesses with 250 p
Slide 13: Developing the UK integrated business model
13 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 F
Slide 14: 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 15: MMS UK market entry model
15 MMS UK market entry model For personal use only Required initial minimal risk capital. Structured to align the ongoing capital required in accordance with the visible opportunities. Access a deeply experienced and respected local management team with aligned incentives, 150 years of experie
Slide 16: Update and Outlook Novated lease orders YTD FY14
16 Update and Outlook Novated lease orders YTD FY14 For personal use only Average novated lease orders per working day Index FY13 base index = 100 Period from Federal Govt. election 110 100 90 80 70 60 Period from Labour FBT 50 announcement to Federal Govt. election 40 30 20 10 0 FY13 16 Jul to 6 Se
Slide 17: MMS has a strong, diversified business model with multiple growth opportunities
17 MMS has a strong, diversified business model with multiple growth opportunities For personal use only Given Government commentary, material changes to FBT treatment of motor vehicles appears unlikely. GRS has fully recovered from proposed changes to FBT on motor vehicles announced on 16 July
McMillan Shakespeare — Macquarie Australia Conference 2014 on 6ix