Slide 1: Investor presentation – Half year 2016 results
For personal use only Investor presentation Half year 2016 results Deven Billimoria – Managing Director and CEO Tim Looi – Chief Financial Officer 25 August 2016 STRICTLY CONFIDENTIAL PAGE 0
Slide 2: 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 H1 revenue of $60.9m and NPATA(1) of $18.1m 1 - - H1 revenue growth of 36% vs. pcp, NPATA growth of 45% vs. pcp Guidance affirmed for CY16 NPATA of $41.2m-$43.2m(2) including part year contributions from recen
Slide 3: Growth across financial and operational metrics
…with growth across financial and operational metrics… For personal use only H1 2015 H1 2016 H1 2016 Statutory Statutory Change % Pro Forma(2) $m $m $m Revenue 44.8 60.9 36 % 82.6 EBITA 17.5 25.0 43 % 34.9 NPATA 12.5 18.1(1) 45 % 24.2 As at As at As at Change % 30 June 2016 30 June 2015 30 June 2016
Slide 4: Continuing growth since IPO
…and continuing growth since IPO For personal use only (2) (1) (1) 1. NPATA for H2 2015 and H1 2016 excludes the after tax acquisition costs of $0.8m and $0.4m, respectively. 2. H1 2016 dividend of $11.7m (65% of NPATA) is based on a dividend of 9.8cps and 119,533,800 shares on issue as at 24 August
Slide 5: The group has grown salary packages and novated leases organically and through acquisitions
The group has grown salary packages and novated leases organically and through acquisitions For personal use only PAGE 4
Slide 6: A number of key milestones were achieved in H1 2016
A number of key milestones were achieved in H1 2016 For personal use only Salary packaging administration Retained Queensland Government and added Queensland Health (as 1 of 2 salary packaging providers) Replaced larger of 2 novated leasing providers on Westpac panel via a competitive tender pro
Slide 7: Smartgroup recognised as one of Australia's most innovative companies
Smartgroup continues to be recognised as one of Australia’s most innovative companies For personal use only • 2015 CSIA Service Excellence Awards Smartgroup achieved the highest audit score in the history of the CSIA awards • 2016 AFR 50 Most Innovative Companies Awards for: Robotics process automat
Slide 8: Acquisitions of Autopia and Selectus are complementary to Smartgroup's business
The acquisitions of Autopia and Selectus are complementary to Smartgroup’s salary packaging and novated leasing business For personal use only Autopia increases Smartgroup's presence to include the corporate segment, while Selectus expands presence into private schools About Autopia About Selectus
Slide 9: Strong presence across all key customer segments
Smartgroup now has a strong presence across all key customer segments For personal use only Of the recent acquisitions, Advantage focuses on the Charity / PBI segment, Autopia has a Corporate client base and Selectus specialises in the Rebatable and Government market segment Outsourced salary packag
Slide 10: The recent acquisitions expand Smartgroup's portfolio
The recent acquisitions expand Smartgroup’s portfolio For personal use only (1) (1) Smartgroup owns 50% of HWS PAGE 9
Slide 11: Financial results H1 2016
For personal use only Financial results H1 2016 Tim Looi Chief Financial Officer Tim PAGE 10
Slide 12: H1 2016 NPATA of $18.1m, a 45% increase
Smartgroup’s recorded H1 2016 NPATA(1) of $18.1m, a 45% increase from the prior year… For personal use only H1 2016 H1 2015 Statutory Statutory ($m) ($m) Change Revenue 60.9 44.8 36% EBITA 25.0 17.5 43% NPAT 14.7 9.1 Add: Amortisation (tax effected) 2.1 2.7 Add: Cash tax benefit of amortisation 0.9
Slide 13: Cashflow from operations at 88% of NPATA and low capital expenditure
…with cashflow from operations at 88% of NPATA(1) and continued low capital expenditure For personal use only 30 June 2016 30 June 2015 Statutory ($m) Statutory ($m) Receipts from customers (inclusive of GST) 65.6 47.2 Payments to suppliers and employees (inclusive of GST) (41.6) (35.0) Interest rec
Slide 14: Net debt position after post balance date transactions is c.$105m
Smartgroup’s net debt position, after post balance date transactions is c.$105m For personal use only Debt/equity 31 Dec 2015 30 Jun 2016 for acq. net Unaudited Statutory Statutory Autopia Selectus of cash paid pro forma ($m) ($m) ($m) ($m) ($m) ($m) Cash 19.5 18.9 6.9 0.2 20.9 46.9 Trade and other
Slide 15: Closing remarks
Closing remarks For personal use only Strong financial performance in H1 2016: • Growth across financial and operational metrics • Revenue of $60.9m and NPATA(1) of $18.1m • Revenue growth of 36% vs. pcp, NPATA(1) growth of 45% vs. pcp • Cash flows at 88% of NPATA(1) • Proforma H1 2016(2) revenue an
Slide 16: 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