Mcmillan Shakespeare Limited · ASX:MMS
Mcmillan Shakespeare — Goldman Sachs Eighth Annual Small & Mid-Cap Conference 2017
22 slides from Mcmillan Shakespeare's conference presentation, Apr 27, 2017
Slide 1: Goldman Sachs Eighth Annual Small & Mid-Cap Conference
For personal use only Goldman Sachs Eighth Annual Small & Mid-Cap Conference 27 April 2017 McMillanShakespeareGroup
Slide 2: Key initiatives for building long term shareholder value
MMS Key initiatives for building long term shareholder value For personal use only Broad suite of high quality products and industry leading service to drive organic growth Investment in technology resulting in productivity gains and margin growth Synergy benefits from a fully integrated business Im
Slide 3: Driving full value from our integrated model
MMS Driving full value from our integrated model For personal use only Segment Stated strategy 1H17 impact Group > Continue organic growth > Salary packages up 7.6%, novated leasing units up 6.6% Remuneration > Margin improvement via technology > Margin improvement of 1.7% Services advancements > Pa
Slide 4: Group Remuneration Services (GRS)
MMS Group Remuneration Services (GRS) Continuing organic growth in customer and asset bases For personal use only Salary packages (000)1 Commentary Net new clients: GRS delivered a consistent headline result with 5 year CAGR : 5.6% 3,600 packages a reduction in revenue of 1% compared to pcp, while U
Slide 5: Retail Financial Services (RFS)
MMS Retail Financial Services (RFS) Leveraging scale and technology to drive performance For personal use only Net amount financed ($m) Commentary Net amount financed grew by circa $100m or 22% compared to pcp – Growth skewed towards aggregation vs. retail branch network 551.0 379.2 450.7 Commission
Slide 6: Asset Management (AM) – Australia / New Zealand
MMS Asset Management (AM) – Australia / New Zealand Diversified model with strong controls For personal use only Fleet assets written down value ($m)1 Commentary New contract wins in first half of calendar 2016 including NSW Government contributed 4.4 to increasing portfolio Off balance sheet fundin
Slide 7: Asset Management (AM) – United Kingdom
MMS Asset Management (AM) – United Kingdom Operating Metrics For personal use only Assets written down value ($m)1 Commentary Broker aggregation strategy progressing and enhanced through acquisitions of EVC and Capex in December and January respectively Sterling revaluation impacted first half UNPAT
Slide 8: MMS – UK Strategic objectives
MMS – UK Strategic objectives For personal use only The leading provider of a fully integrated financial services offering The leading provider of a portable employee lease The aggregator of choice to the finance intermediary / broker community Maxxia to become a strongly recognised financial servic
Slide 9: MMS – UK What we have achieved to date
MMS – UK What we have achieved to date For personal use only Maxxia Acquired EVC and Acquired 100th attracting “A” European Vehicle Capex integration CLM Fleet customer rated market UK M&A Contracts underway JV Formed Management signed relationships team formed t/a Eurodrive without delay 2013 2014
Slide 10: MMS – UK complementary channels to market
MMS – UK B2B Asset Finance Brokers + B2C Dealer Car Finance = complementary channels to market For personal use only Market Channel to market Company B2C Dealer Car Finance Value: £29 billion (CY16) Dealers Corporates B2B Asset Finance Private Value: £30.3 billion (CY16) Individuals 10
Slide 11: Summary
MMS Summary For personal use only MMS Business performance tracking in line with our expectations GRS AM – Aust/NZ Business is performing well Second hand car prices remain strong Major Queensland contract P&A – We believe MMS has maintained or increased market share – Initial facility fully allocat
Slide 12: Appendix
For personal use only Appendix Appendix 12
Slide 13: Results Summary
Appendix Results Summary For personal use only $m 1H17 1H16 Variance Segment revenue 250.4 243.5 2.9% Segment EBITDA 66.4 65.2 1.8% EBITDA margin (%) 26.5% 26.8% Segment NPBT 60.4 59.2 2.0% NPAT 40.4 38.9 3.8% Underlying NPATA 42.1 41.8 0.8% Basic earnings per share (cents) 48.6 47.1 3.2% Underlying
Slide 14: Segment Review
Appendix Segment Review Solid operating result For personal use only Group Remuneration Services Asset Management1 Retail Financial Services Total $m 1H17 1H16 % 1H17 1H16 % 1H17 1H16 % 1H17 1H16 % Segment Revenue 90.5 91.4 (1.0%) 104.0 97.4 6.8% 55.9 54.6 2.3% 250.4 243.5 2.9% Expenses 47.2 49.2 (4
Slide 15: Balance Sheet
Appendix Balance Sheet Strong balance sheet to fund growth and shareholder returns For personal use only Dec 16 Jun 16 $m AM Other Group Group Cash at bank 6.9 50.6 57.5 95.6 Net cash positive1 Other current assets Total fleet funded assets 457.1 3.5 51.4 - 54.9 457.1 47.3 435.7 $8.4 million Goodwil
Slide 16: Funding Overview
Appendix Funding Overview Significant funding capacity to drive growth For personal use only Initiated capital-light funding model for Asset Management in Australia, with the introduction of Principal and Agency (P&A) funding arrangements post 30 June 2016 Post 31 December 2016, MMS entered into a n
Slide 17: Cashflow
Appendix Cashflow Capital light, cash generative business model For personal use only 1H17 1H16 Group Retail Remuneration Asset Financial Unallocated / MMS MMS $m Services Management Services parent co. Group Total Group Total Segment NPAT 28.2 7.9 5.3 (1.0) 40.4 38.9 Non-fleet depn/amort, reserves
Slide 18: Cashflow Bridge
Appendix Cashflow Bridge FCF impacted by the timing of a number of one-off items, expect FCF to revert to normal levels For personal use only (5.4) (7.2) (3.0) (2.3) (1.8) 53.9 34.2 1H16 FCF1 VAT on sale Delay in receipt Catch-up lower Funding of GST Other items 1H17 FCF1 of UK portfolio of VAT refu
Slide 19: Performance Ratios
Appendix Performance Ratios Consistent delivery of earnings growth over a 10 year period For personal use only Ten year historical performance 1H08 1H09 1H10 1H111 1H12 1H13 1H142 1H15 1H16 1H17 CAGR Segment Revenue $m 31.5 37.7 43.7 136.3 143.0 160.2 161.5 181.2 243.5 250.4 25.9% Segment EBITDA $m
Slide 20: Complementary diversification across the MMS Group
Appendix Complementary diversification across the MMS Group For personal use only Group Remuneration Services Asset Management Retail Financial Services Brands Primary service – Salary packaging – Vehicle fleet leasing and management – Vehicle finance, insurance – Novated leases – Used vehicle retai
Slide 21: Disclaimer and important notice
Appendix Disclaimer and important notice For personal use only This presentation has been prepared by McMillan Shakespeare Limited ABN 74 107 233 983 (“MMS”). It contains summary information about MMS and its subsidiaries and their activities current as at the date of this presentation. The presenta
Slide 22: For personal use only
For personal use only McMillanShakespeareGroup
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