Fleetpartners Group Limited · ASX:FPR
Fleetpartners — H1 2025 Earnings Presentation
37 slides from Fleetpartners's earnings presentation, May 12, 2025
Slide 1: FleetPartners Group Limited 1H25 Results Presentation
FleetPartners Group Limited (ASX:FPR) 12 May 2025
Slide 2: Legal disclaimer
Legal disclaimer This Presentation contains summary information about FleetPartners Group Limited (FleetPartners) and its subsidiaries and their activities, current as at the date shown on the front page of this Presentation. The information in this Presentation does not purport to be complete. It s
Slide 3: Acknowledgement of Country
Acknowledgement of Country In the spirit of reconciliation, FleetPartners acknowledges the traditional owners of the lands and waters across the Australian continent and we pay our respects to the many thousands of generations who looked after the lands and waters where we currently live and work to
Slide 4: Agenda
Agenda 1. Performance highlights 2. Financial result 3. Growth opportunities and outlook 4. Appendices
Slide 5: 1. Performance highlights
1. Performance highlights Damien Berrell Chief Executive Officer and Managing Director
Slide 6: Why FleetPartners?
Why FleetPartners? Highly predictable, cash generative business operating in a defensive asset class – growth opportunities supported by sector leading capability and underpenetrated target markets Investing for growth in large and underpenetrated markets • Operating in underpenetrated, high-returni
Slide 7: Continued consistent operating performance
Continued consistent operating performance Metrics below reflect the 1H25 period with CAGRs since FY231 ✓ $2.3bn in AUMOF – 7% CAGR ✓ NOI pre EOL and provisions – 6% CAGR ✓ Opex reducing as a percentage of AUMOF, despite inflationary environment ✓ Continued strong cash generation – $255m returned to
Slide 8: Completion of Accelerate positions the group for growth
Completion of Accelerate positions the group for growth FleetPartners is now in a stronger operating position – Accelerate will deliver $6m+ of annualised cost savings and positions the Group in a stronger competitive position to grow and optimise the returns from new and existing business CORE SIMP
Slide 9: 1H25 performance highlights
1H25 performance highlights Continued strong performance across core operating metrics, albeit the 1H25 period has been temporarily impacted by the Accelerate system cutover RESILIENT GROWTH THROUGH DELIVERING CORE EARNINGS GROWTH ONGOING GENERATION OF A DEFENSIVE BUSINESS MODEL AND A STRONG EOL PER
Slide 10: Temporary impacts of Accelerate system cutover
Temporary impacts of Accelerate system cutover Accelerate has strengthened the Group’s operating and competitive position, however the system cutover (completed in Feb-25) has resulted in temporary disruption to operations in Australia Metric Impact Resolution NBW • NBW was down 17% in 1H25 compared
Slide 11: 13% increase in normalised cash EPS
13% increase in normalised cash EPS1 Earnings per share growth since FY23 despite EOL normalisation Cash EPS growth drivers ◼ Normalised EPS1 ◼ Elevated EOL performance2 Winning market share in three underpenetrated, high-returning, target markets of Corporate, Small Fleets and Novated 36.5c 36.5c
Slide 12: 1H25 Environmental, Social and Governance highlights
1H25 Environmental, Social and Governance highlights 62% of 1H25 Novated NBW was for Innovate RAP Electric and Plug-In Hybrids (EVs) Nov 2024 - launched our first Innovate - Up from 56% in 2H24 Reconciliation Action Plan 98% of FPR staff vehicles are EVs and 16.6% Gender pay gap Connecting with our
Slide 13: 2. Financial result
2. Financial result James Owens Chief Financial Officer
Slide 14: New business writings
New business writings Lower NBW a result of temporary Accelerate impacts and the strong performance in pcp underpinned by pipeline unwind New Business Writings Comments ◼ Sale and lease-back • NBW for 1H25 was 17%1 below pcp, ahead of the expectation set out in the $8.5m Mar-25 trading update of 20%
Slide 15: Asset growth funded on balance sheet
Asset growth funded on balance sheet AUMOF up 6% compared to pcp, with growth in balance sheet funded AUMOF1 of 14% Assets under management or financed Comments AUMOF - Balance sheet1 • AUMOF is the key driver of NOI pre EOL and provisions, generating predictable, AUMOF - P&A annuity-like revenue $2
Slide 16: NOI pre EOL and provisions margin
NOI pre EOL and provisions margin Margins have stabilised across the business, though Fleet Australia margins remain elevated due to a high level of extensions NOI pre EOL and provisions margin1 Comments 7.66% 8.02% 7.74% • At a Group level, NOI pre EOL and provisions margin remained broadly in line
Slide 17: Income statement
Income statement NOI pre EOL and provisions up 8% driven by AUMOF growth $m 1H25 1H24 PCP (%) Comments 1 Net operating income pre EOL and provisions 82.1 76.1 8% End of lease income 29.5 35.9 (18)% • NOI pre EOL and provisions increased by 8% driven by growth in average AUMOF of 9% Fleet and credit
Slide 18: End of lease income
End of lease income Used car prices appear to have stabilised – now expect that normalisation of EOL income will take longer, resulting in stronger EOL over the medium term Vehicles sold & end of lease income per unit1 Comments • Whilst used vehicle prices remain well above pre-COVID-19 levels, EOL
Slide 19: Arrears temporarily impacted by Accelerate system cutover
Arrears temporarily impacted by Accelerate system cutover Whilst Mar-25 arrears were temporarily impacted by the Accelerate system cutover, underlying loss rates remain stable 90+ day arrears1 (bps) Comments Temporary increase vs • Arrears were elevated at Mar-25 as a result of temporary administrat
Slide 20: Funding and liquidity
Funding and liquidity Diversified funding structures with capacity for growth and limited exposure to interest rate movements Comments Warehouse capacity and funding mix at Mar-25 • Warehouse funding capability since 2007 and regular ABS issuer since 2010, with a Undrawn Warehouse proven ability to
Slide 21: Cash generation
Cash generation The Group has delivered consistent strong organic cash generation, supported by continuation of elevated EOL and the cash tax shield in Australia. Net cash flows temporarily impacted by short-term funding requirements due to Accelerate system cutover 1H25 organic cash generation Comm
Slide 22: Net debt
Net debt Temporary increase in net debt for short-term funding needs following Accelerate system cutover expected to normalise over 2H25 Sep-24 to Mar-25 net cash/(debt) $39m ($32m) Increase driven by FleetPlus cash recategorised as restricted post Accelerate ($7m) and an increase in unallocated cas
Slide 23: 3. Growth opportunities and outlook
3. Growth opportunities and outlook Damien Berrell Chief Executive Officer and Managing Director
Slide 24: Stable operating environment
Stable operating environment No direct effects from the new US tariff regime as it stands today Used car prices have stabilised • EOL profit per unit expected to stay stronger for longer Transition to low/no emission fleets to remain a key industry focus for the foreseeable future • Presents a signi
Slide 25: FY25 expectation analysis
FY25 expectation analysis Temporary impacts from Accelerate cutover expected to be resolved by the end of the FY25 period with minimal impact on expectations FY25 FY24A Comments (changes to expectation comments indicated in italics) (expectation) • Growth in average AUMOF partially offset by reducti
Slide 26: Clear opportunities for growth in underpenetrated markets
Clear opportunities for growth in underpenetrated markets Corporate fleets Small fleets Novated ~$138bn1 ~$124bn1 AUS TAM ~15m employed Australians3 2.4m vehicles2 2.2m vehicles2 Sector penetration Sector penetration FPR penetration of employees of FPR clients 4% PENETRATION 24% 76% 5% 95% FPR 96% F
Slide 27: Summary
Summary ✓ Stable operating environment – no direct effects expected from the new US tariff regime as it stands today ✓ Consistent performance validating the defensiveness & cash generative nature of the operating model ✓ 1H25 delivered 6% growth in AUMOF and 13% growth in normalised EPS, despite tem
Slide 28: Questions
Questions FP FleetPartners
Slide 29: 4. Appendices
4. Appendices FP FleetPartners
Slide 30: Electric Vehicles – uptake by segment
Electric Vehicles – uptake by segment Acceptance and uptake continues to be strongest in Novated, with the Corporate transition still at early stages Novated NBW Fleet Australia NBW Fleet New Zealand NBW 62.7 55.6 53.3 80% 60.0 52.4 20% 60.0 20% 60.0 50.0 42.1 43.5 60% 15% 15% 40.0 40.0 40.0 40% 30.
Slide 31: Operating segment results
Operating segment results Fleet Australia Fleet New Zealand ($m, unless stated) 1H25 1H24 Var % ($m, unless stated) 1H25 1H24 Var % NOI before EOL & Impairments 46.2 45.4 2% NOI before EOL & Impairments 18.4 18.0 2% End of lease 20.0 24.7 (19)% End of lease 8.7 10.4 (16)% Impairments (3.0) (1.7) 75%
Slide 32: Fleet Australia
Fleet Australia NBW and AUMOF temporarily impacted by Accelerate system cutover New business writings AUMOF ◼ AUMOF – Balance sheet1 ◼ Sale and lease-back ◼ AUMOF – P&A $8m $1,092m $1,041m $1,069m $1,016m $477m $435m $485m $474m $211m $175m $187m $142m $142m $568m $615m $633m $531m 1H23 2H23 1H24 2H
Slide 33: Fleet New Zealand
Fleet New Zealand NBW softens as economic environment continues to be challenging – asset base broadly stable New business writings AUMOF ◼ AUMOF – Balance sheet1 ◼ Sale and lease-back ◼ AUMOF – P&A NZ$571m NZ$581m NZ$574m NZ$554m NZ$1m NZ$18m NZ$13m NZ$6m NZ$24m NZ$1m NZ$124m NZ$101m NZ$531m NZ$553
Slide 34: Novated
Novated Asset base continues to grow, supported by demand for EVs, despite impact of Accelerate system cutover New business writings AUMOF ◼ AUMOF – Balance sheet1 ◼ AUMOF – P&A $673m $632m $62m $572m $82m $503m $103m $123m $167m $164m $151m $152m $611m $550m $469m $92m $381m 1H23 2H23 1H24 2H24 1H2
Slide 35: Balance sheet
Balance sheet Balance sheet remains strong, with disciplined capital management $m 31 March 2025 30 Sep 2024 % AUMOF Comments Assets • Cash position a result of strong organic cash generation offset by the share buy- Cash and cash equivalents 57.9 91.3 (37)% back, Accelerate capital expenditure and
Slide 36: Cash flow statement
Cash flow statement Strong organic cash generation during the period, with one-off short-term funding requirements from Accelerate impacting net cash flows $m 1H25 $m 1H25 Operating cash flow Net cash flow (18.9) Customer receipts 457.8 Add-back Accelerate and other capex 6.8 Payment to suppliers &
Slide 37: Thank you
Thank you fleetpartners.com.au