Slide 1: Investor presentation Half year 2015 results
For personal use only Investor presentation Half year 2015 results Deven Billimoria – Managing Director and CEO Tim Looi – Chief Financial Officer 27 August 2015 STRICTLY CONFIDENTIAL PAGE 0
Slide 2: 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. T
Slide 3: Overview of H1 2015 performance
For personal use only Overview of H1 2015 performance Deven Billimoria Managing Director and CEO PAGE 2
Slide 4: Smartgroup is well placed to deliver another year of strong results
Smartgroup is well placed to deliver another year of strong results… For personal use only Revenues of $44.8m and NPATA of $12.5m 1 • • Revenue growth of 29% from pcp Earnings growth of 47% from pcp Major client renewal 2 • • Department of Defence contract renewed Exclusivity retained New client win
Slide 5: Improved financial and operating metrics at the half year
…with improved financial and operating metrics at the half year. For personal use only H1 2015 H1 2014 Change Statutory Proforma(1) % $m $m Revenue 44.8 34.8 29% EBITA 17.5 11.5 52% NPATA 12.5 8.5 47% As at As at Change 30 June 2015 30 June 2014 % Packages 122,054 111,889 9% Novated leases under man
Slide 6: Strong trend towards outsourcing within the NSW Health network
In recent times, there has been a strong trend towards outsourcing within the NSW Health network. For personal use only • Smartgroup’s outsourced salary packaging growth within NSW Health South Eastern Sydney Local Health District Client to transition in August 2015 with c.7,000 transition packages
Slide 7: Continued growth in Federal Government client base
Smartgroup has had continued growth in its Federal Government client base, with CSIRO and ABS being recent additions. For personal use only Federal Government departments/agencies • Of the 28 Federal Government departments/agencies with with over 1,000 employees over 1,000 employees, Smartgroup is t
Slide 8: Driving online interaction capabilities to enhance customer experience
Smartgroup continues to drive online interaction capabilities to enhance customer experience and reduce cost to serve. For personal use only • Mobile friendly website going live by end 2015 PAGE 7
Slide 9: Social media community drives customer engagement and satisfaction
Smartgroup’s social media community continues to drive customer engagement and satisfaction. For personal use only PAGE 8
Slide 10: Complementary suite of services and software
Smartgroup has a complementary suite of services and software. For personal use only • Smartgroup has evolved its services and software suite PAGE 9
Slide 11: Financial results H1 2015
For personal use only Financial results H1 2015 Tim Looi Chief Financial Officer Tim PAGE 10
Slide 12: Normalised H1 2015 results reflect 33% NPATA growth
Normalised H1 2015 results reflect a 33% NPATA growth with improved operating margins. For personal use only H1 2015 Adjusting for H1 2015 H1 2014 Statutory unusual item3 Normalised Proforma4 ($m) ($m) ($ m) ($m) Change Revenue 44.8 (1.7) 43.1 34.8 24% EBITA1 17.5 (1.7) 15.8 11.5 37% NPAT 9.1 (1.2)
Slide 13: Packages continue to grow from new client signups and organic uptake
Packages continue to grow from new client signups and organic uptake. For personal use only Package growth July 2014 to June 2015 125,000 2,724 3,150 122,054 1,916 120,000 3,017 118,656 Number of Active Packages (4,392) 3,750 115,000 111,889 110,000 105,000 100,000 Jun-14 St Vincent's Organic uptake
Slide 14: Normalised EBITA increased 37% primarily from stronger salary packaging
Normalised EBITA increased 37% primarily from stronger salary packaging performance. For personal use only EBITA growth in 2015 $25 0.6 $20 7.7 1.7 17.5 (1.4) 15.8 (1.1) (0.2) (0.2) $15 $ millions (1.1) 11.5 Incremental $10 $0.7m of technology and systems spend $5 $- 2014 H1 Salary Fleet Employee Ad
Slide 15: Cashflow from operations remain strong with low capital expenditure
Cashflow from operations remain strong with low capital expenditure. For personal use only 30 June 2015 30 June 2014 Statutory ($m) Proforma ($m)1 Change Receipts from customers (inclusive of GST) 2 47.2 37.6 26% Payments to suppliers and employees (inclusive of (35.0) (24.3) 44% GST) Interest recei
Slide 16: Balance sheet is now debt free and agile
Smartgroup’s balance sheet is now debt free and agile. For personal use only 30 June 2015 31 Dec 2014 Statutory ($m) Statutory ($m) Cash and cash equivalents 9.1 27.8 Trade and other current assets 12.7 11.1 Current assets 21.8 38.9 Property and equipment 3.3 3.6 Goodwill 52.2 52.2 Intangibles 6.4 1
Slide 17: Closing remarks
Closing remarks. For personal use only Strong financial performance for H1 2015 • Revenue and NPATA growth of 29% and 47% respectively • Fully franked dividend at 7.9 cps, representing a 65% payout ratio of NPATA for H1 2015 • Debt free balance sheet with $9.1m of cash Business continues to track we