Mcmillan Shakespeare Limited · ASX:MMS
Mcmillan Shakespeare — H1 FY2011 Earnings Presentation
21 slides from Mcmillan Shakespeare's earnings presentation, Feb 15, 2011
Slide 1: MMS Group 1HFY11 Results Presentation
MMS Group 1HFY11 Results Presentation For personal use only 15 February 2011
Slide 2: Half year presentation contents
Page 2 MMS Group 1HFY11 Results Presentation For personal use only Half year presentation contents Page 1. Financial highlights 3 2. Segment performance 6 3. Gearing, cash flow and funding 13 4. Key activities / initiatives 16 5. Sensitivities 20 6. Outlook 21
Slide 3: Financial highlights
Page 3 MMS Group 1HFY11 Results Presentation For personal use only Financial highlights Consolidated NPAT of $20.5m. NPAT and EPS growth of 83% on PCP. Group Remuneration Services NPAT of $15.0m or 35% growth. Asset Management NPAT of $6.6m. Interim dividend of 16 cents per share (10 cents PCP). Nor
Slide 4: Consolidated financial performance
Page 4 MMS Group 1HFY11 Results Presentation For personal use only Consolidated financial performance 1HFY10 1HFY11 % 1HFY11 1HFY11 1HFY11 $000 $000 Increase $000 $000 $000 Group Group Remuneration Remuneration Asset Services Services Management Unallocated Total ("Original" ("Original" business) bu
Slide 5: NPAT bridge
Page 5 MMS Group 1HFY11 Results Presentation For personal use only NPAT bridge 25 0.9 Growth 85% Growth 83% 0.2 20 6.6 Growth 35% 15 ($m) 3.8 10 20.7 20.5 11.2 5 0 NPAT 1HFY10 Group Asset Management Acquisition funding Normalised NPAT Integration costs NPAT 1HFY11 Remuneration costs (parent co.) 1HF
Slide 6: Definition of segments
Page 6 MMS Group 1HFY11 Results Presentation For personal use only Definition of segments Group Remuneration Services segment definition: The segment provides administrative services in respect of salary packaging and facilitates the settlement of motor vehicle novated leases for customers, but does
Slide 7: Group Remuneration Services segment
Page 7 MMS Group 1HFY11 Results Presentation For personal use only Group Remuneration Services segment Revenue growth of 24% on PCP. NPAT growth of 35% on PCP. Core operating contribution increase of 32% over PCP. Customer metrics exceeding our benchmarks. Ongoing productivity improvements. Note 1:
Slide 8: Group Remuneration Services financial performance
Page 8 MMS Group 1HFY11 Results Presentation For personal use only Group Remuneration Services financial performance 1HFY10 1HFY11 % Comment $000 $000 Inc Segment revenue 43,098 53,618 24% Employee expenses 18,612 20,775 12% Significantly below revenue growth Depn and amort of PPE and software 873 1
Slide 9: Productivity and customer satisfaction indices
Page 9 MMS Group 1HFY11 Results Presentation For personal use only Productivity and customer satisfaction indices Group Remuneration Services Productivity Index (7/08 = 100) [Rolling 3 month Revenue (ex SP Interest) / FTE] MMS Customer Satisfaction Index December 2008 = 100 140 250 135 130 200 125 1
Slide 10: Asset Management segment highlights
Page 10 MMS Group 1HFY11 Results Presentation For personal use only Asset Management segment highlights First half performance exceeded expectations. Assets under finance starting to grow, notwithstanding steep run-off curve. Satisfactory NIM and management fees. Pleasing residual value performance.
Slide 11: Asset Management financial performance
Page 11 MMS Group 1HFY11 Results Presentation For personal use only Asset Management financial performance 1HFY11 $000 Segment revenue 82,683 Depreciation of motor vehicle fleet 32,079 Interest on fleet financing 5,032 Motor vehicle fleet expenses 28,291 Employee expenses 6,197 Other expenses 1,610
Slide 12: Asset Management key balance sheet numbers
Page 12 MMS Group 1HFY11 Results Presentation For personal use only Asset Management key balance sheet numbers 31st Dec 2010 30th June 2010 $000 $000 Operating lease assets 204,672 202,471 Finance leases 8,679 9,226 Fleet financing borrowings 108,000 112,727 Maintenance instalments received in advan
Slide 13: Gearing
Page 13 MMS Group 1HFY11 Results Presentation For personal use only Gearing MMS & Group Remuneration Asset Group Group Services (1) Management Balance at Balance at 31st Dec 2010 31st Dec 2010 31st Dec 2010 30th Jun 2010 $000 $000 $000 $000 Net debt 14,457 105,227 119,684 125,970 Book value of equit
Slide 14: 1HFY11 cash flow
Page 14 MMS Group 1HFY11 Results Presentation For personal use only 1HFY11 cash flow Group Remuneration Asset Unallocated/ MMS Group Services Management MMS Total $000 $000 $000 $000 Segment NPAT 15,022 6,606 (1,102) 20,526 Non-cash (non-fleet depreciation and fleet provision movements) 1,537 (1,314
Slide 15: Funding
Page 15 MMS Group 1HFY11 Results Presentation For personal use only Funding The Group renegotiated its borrowing arrangements for Interleasing subsequent to reporting date. The objectives of the renegotiation were to: Provide longer-term funding facilities to enhance liquidity position; Reduce fundi
Slide 16: 1HFY11 key activities and highlights
Page 16 MMS Group 1HFY11 Results Presentation For personal use only 1HFY11 key activities and highlights Overall, a focus on: integration; maintaining momentum in our core business; and disciplined prioritisation of tasks and opportunities / making choices / not trying to do everything at once. Inte
Slide 17: 1HFY11 key activities and highlights (cont'd)
Page 17 MMS Group 1HFY11 Results Presentation For personal use only 1HFY11 key activities and highlights (cont’d) Core business Disaster Recovery (DR) and Business Continuity plans (BCP) successfully deployed in QLD floods: o RemServ (200 people) forced to evacuate its Brisbane premises. o DR sites
Slide 18: 1HFY11 key activities and highlights (cont'd)
Page 18 MMS Group 1HFY11 Results Presentation For personal use only 1HFY11 key activities and highlights (cont’d) o Vivid demonstration to customers of the benefits of a comprehensive DR/BCP process. No significant customer contract losses. Interleasing systems upgrade work continues to run smoothly
Slide 19: 1HFY11 key activities and highlights (cont'd)
Page 19 MMS Group 1HFY11 Results Presentation For personal use only 1HFY11 key activities and highlights (cont’d) Ongoing industrialisation of our business (better product and service delivery at lower cost) through ongoing investment in: o IT and Business Systems. o People (recruitment, training, l
Slide 20: Sensitivities
Page 20 MMS Group 1HFY11 Results Presentation For personal use only Sensitivities Queensland flood impact not material (current estimated pre-tax loss to business of $1m). Around $0.3m of this insured, subject to “flood” definition. Queensland economy post floods/cyclone. New car sales. Second hand
Slide 21: Outlook
Page 21 MMS Group 1HFY11 Results Presentation For personal use only Outlook Continued, disciplined development of our core businesses. Industrial strength BPO. Ongoing growth through: o New business and cross-sell from our stronger post acquisition value proposition. o Increasing participation rates
McMillan Shakespeare — H1 FY2011 Earnings Presentation on 6ix