Slide 1: Investor presentation H1 2017 results
For personal use only Investor presentation H1 2017 results Deven Billimoria – Managing Director and CEO Tim Looi – Chief Financial Officer 23 August 2017 PAGE 0
Slide 2: Smartgroup is well placed to deliver another year of positive results
Smartgroup is well placed to deliver another year of positive results . . . For personal use only H1 2017 revenue of $95.2m and NPATA(1) of $30.3m 1 - - Revenue of $95.2m up 57% vs pcp NPATA of $30.3m up 63% vs pcp Continued client success in all businesses 2 - - Renewal of WA Health and WA Educatio
Slide 3: Growth across financial and operational metrics
. . . with growth across financial and operational metrics . . . For personal use only H1 2017 H1 2016 adjusted(1) adjusted(2) Change % $m $m Revenue 95.2 60.7 57% EBITDA 44.6 26.1 71% NPATA 30.3 18.6 63% NPATA per share(3) (cps) 24.6 15.5 59% As at As at 30 June 30 June Change % 2017(4) 2016 Packag
Slide 4: Continuing our track record since IPO
. . . and continuing our track record since IPO For personal use only (1) (1) (1) (2) (1) H1 2016 and H2 2016 EBITDA and NPATA restated following finalisation of acquisition accounting for Advantage. Revenue and EBITDA restated to exclude corporate bank account interest for all years. (2) H1 2016 di
Slide 5: Growth in salary packages and novated leases, organic and through acquisition
Smartgroup has grown salary packages and novated leases both organically and through acquisition For personal use only (1) (1) 2014, 2015 and 2016 full year organic growth includes major client wins of 9,800, 7,400 and 6,500 packages, respectively. H1 2017 organic growth does not include any major c
Slide 6: Acquisitions performing well, with integrations on track
Acquisitions performing well, with integrations on track For personal use only Acquisition Completion Client Synergies Integration on date retention / track growth July 2016 August 2016 May 2017 o Selectus EBITDA $14.7m for 12 months ended 30 June 2017, excluding synergies o Selectus H1 2017 synergi
Slide 7: Financial results H1 2017
For personal use only Financial results H1 2017 Tim Looi Chief Financial Officer Tim PAGE 6
Slide 8: H1 2017 NPATA of $30.3m, a 63% increase from the prior year
Smartgroup recorded H1 2017 NPATA(1) of $30.3m, a 63% increase from the prior year… For personal use only Adjusted for equity share & H1 2017 acquisition H1 2017 H1 2016 $m statutory items(1) adjusted adjusted(2) Change % Revenue 95.2 - 95.2 60.7 57% EBITDA(3) 38.1 6.5 44.6 26.1 71% NPAT 16.8 6.4 23
Slide 9: Cashflow from operations at 86% of NPATA and low recurring capital expenditure
…with cashflow from operations at 86% of NPATA and continued low recurring capital expenditure For personal use only $m H1 2017 H1 2016 Receipts from customers (inclusive of GST) 103.6 65.6 Payments to suppliers and employees (inclusive of GST) (60.5) (41.6) Interest receipts from operations 1.4 0.6
Slide 10: Net debt of c.$74m, less than 1.0x LTM EBITDA
Net debt of c.$74m, less than 1.0x LTM EBITDA For personal use only 30 Jun 2017 31 Dec 2016 $m statutory statutory 1. Restricted cash and customer Cash 50.7 80.0 salary packaging liabilities represent funds held in common Restricted cash (1) 39.9 39.5 salary packaging accounts on Trade and other cur
Slide 11: Closing remarks
For personal use only Closing remarks… Deven Billimoria Managing Director and CEO PAGE 10
Slide 12: Closing remarks
Closing remarks For personal use only • Smartgroup is well placed to deliver another year of positive results • Growth across all key financial and operational metrics • Acquisitions performing well with integrations on track • Strong cashflow generation with gearing less than 1.0x • H1 2017 dividen
Slide 13: Appendix – reconciliation of earnings from statutory financial statements to adjusted results
Appendix 1 – reconciliation of earnings from statutory financial statements to adjusted results For personal use only H1 2017 Gross up of Add back: Adjust: fair H1 2017 statutory equity share acquisition value loss(1) adjusted financials earnings costs Revenue 95.2 - - - 95.2 Operating EBITDA 38.1 0
Slide 14: Appendix – Selectus consideration
Appendix 2 – Selectus consideration For personal use only $119 million in upfront consideration plus deferred consideration payable by September August 2016 Selectus 2017, if Selectus achieved specified FY2017 EBITDA (excluding synergies) and acquisition satisfied certain performance metrics. Sele
Slide 15: Important notice and disclaimer
Important notice and disclaimer (“Important Notice”) For personal use only Disclaimer This presentation has been prepared by Smartgroup Corporation Ltd (ACN 126 266 831) (“Smartgroup”) and is general background information about Smartgroup’s activities current as at the date of this presentation. Th