Mcmillan Shakespeare Limited · ASX:MMS
Mcmillan Shakespeare — Lodge Partners 2009 Conference
15 slides from Mcmillan Shakespeare's conference presentation, Mar 31, 2009
Slide 1: McMillan Shakespeare Limited at Lodge Partners 2009 Conference
For personal use only Presentation by McMillan Shakespeare Limited Lodge Partners 2009 Conference Michael Kay, CEO Mark Cansdale, CFO March 2009
Slide 2: Contents
Contents. For personal use only Strategy. Opportunities in core business. New opportunities. Current performance. P1 March 2009
Slide 3: Vision
Vision. For personal use only To be Australia’s premier provider of workplace benefits through always meeting staff, customer and shareholder expectations. P2 March 2009
Slide 4: How will we achieve our vision?
How will we achieve our vision? For personal use only We will grow and extend our core business through new business and increased participation. We will develop further benefit offerings for our customers and their employees. We will look to acquire quality businesses that complement and strengthen
Slide 5: Strategic framework for attainment of our goals
Strategic framework for attainment of our goals. For personal use only Vision, shared sense of Generic strategy purpose and values Goals and market Value discipline opportunities Competitive Execution driven by Strategic advantage clear accountabilities, capabilities the right metrics (balanced scor
Slide 6: Our fundamental purpose
Our fundamental purpose. For personal use only “All of the benefits, none of the hassles.” ns tio ac ns Re ra al T ct Be All of the rfe ne benefits, none of Pe fi the hassles ts De e Un p & In Deepde&r Intimate sta timate ndi Understanding ng P5 March 2009
Slide 7: Our core business has significant growth opportunities
Our core business has significant growth opportunities For personal use only Australian workforce approximately 10.7 million employees. McMillan Shakespeare Limited target market approximately 3.5 million employees. Participation rate by sector: Source: Industry estimates completed by MMS P6 March 2
Slide 8: Significant tax incentives to participants (public health / PBIs)
Our core business provides significant tax incentives to participants For personal use only Salary Packaging Example (Public Health / PBIs) $8,000 PBI Public Hospital In the example above the $7,000 employee salary packages the $6,000 maximum allowable amount i.e. Net annual Benefit $9,905 (public h
Slide 9: Significant tax incentives to participants (motor vehicle lease)
Our core business provides significant tax incentives to participants For personal use only Salary Packaging Example (Motor Vehicle Lease) In the example above the employee $6,000 novates a fully maintained finance lease to their employer. $5,000 The vehicle has a value of $30,000 Net Annual Benefit
Slide 10: Some interesting statistics on employee benefits
Some interesting statistics on employee benefits. For personal use only 80% of working Australians see benefits as an important consideration when joining an organisation. Only 55% of employers see benefits as important. Employee dissatisfaction with benefits is rising. Only 26% of employers activel
Slide 11: What employees love about their job
What employees love about their job. For personal use only What people love about their current job. People I w ork w ith 20% My boss 12% Benefits/conditions (leave, 11% flexible hours etc) Hours at w ork 10% Training and development 6% Quality of overall management 6% Feedback/appreciation 6% Caree
Slide 12: New opportunities – benefit programs currently in the market
New opportunities – What benefit programs are currently in the market? For personal use only Financial Services. Travel/lifestyle benefits. Health and wellbeing. Fuel and household necessities. P 11 March 2009
Slide 13: New opportunities – benefit programs employees want
New opportunities – For personal use only What benefit programs do employees want? Product Ranking Employees Employers Discounted personal insurance 1 22 Home computer or internet packages 2 16 Lower interest home loans (< than banks) 2 6 Discounted hotels/airfares 3 21 Source: Mercer “Benefits outs
Slide 14: Financial Performance
Financial Performance. For personal use only First half First half % change on 08/09 07/08 prior year $’000 $’000 Revenue 37,699 31,533 20% EBITDA 13,629 11,813 15% EBIT 12,924 11,091 17% NPAT 9,537 7,948 20% Basic earnings per share (cents) 14.10 11.81 19% Dividends declared per share (cents) 8.5 7
Slide 15: MMS in the context of current market
MMS in the context of current market For personal use only High exposure to non-cyclical sectors (Health/PBI’s). Annuity income streams. No debt. Negative working capital. Strong cash flow. Minimal credit risk. Scale in core business. Strong operational performance. P 14 March 2009
McMillan Shakespeare — Lodge Partners 2009 Conference on 6ix