Smartgroup Corporation Ltd · ASX:SIQ
Smartgroup — Goldman Sachs Tenth Annual Emerging Leaders Conference (April 2019)
17 slides from Smartgroup's conference presentation, Apr 5, 2019
Slide 1: Goldman Sachs Tenth Annual Emerging Leaders Conference
For personal use only Goldman Sachs Tenth Annual Emerging Leaders Conference Deven Billimoria – Managing Director and CEO 3 April 2019 PAGE 0
Slide 2: Smartgroup has achieved continued growth in 2018
Smartgroup has achieved continued growth in 2018 ... For personal use only Continued strong financial performance 1 - Revenue of $241.8m up 18% vs CY 2017 - NPATA(1) of $78.0m up 22% vs CY 2017 Continued client growth - Organic growth of c.18,000 packages and c.2,750 leases 2 - Over 300 new employer
Slide 3: Growth across all financial and improved operational metrics
...with growth across all financial and improved operational metrics... For personal use only Change % $m CY 2017 CY 2018 (CY18 v CY17) Revenue 205.4 241.8 18% EBITDA(1) 93.6 111.8 19% NPATA 64.1 78.0 22% Shares on issue (millions) 123.2 130.9 6% NPATA per share (cps) 52.0 59.6 15% As at As at Decem
Slide 4: Increasing revenue, earnings and dividends
...and increasing revenue, earnings and dividends. For personal use only Revenue EBITDA 300.0 120.0 111.8 241.8 93.6 250.0 100.0 205.4 80.0 56.8 200.0 119.2 63.3 147.1 49.0 $m $m 150.0 107.9 60.0 94.4 37.4 37.7 100.0 75.3 84.7 40.0 24.1 48.4 19.6 55.0 39.3 122.6 20.0 44.6 50.0 97.5 12.3 62.4 25.6 36
Slide 5: Smartgroup continues to grow salary packages and novated leases
Smartgroup continues to grow salary packages and novated leases… For personal use only (1) 1. CY 2015 package figure includes the acquisition of Advantage with c.50,000 packages, and a major client win of c.7,400 packages. CY 2016 and CY 2017 organic growth figures include major client wins of c.6,5
Slide 6: Growing fleet management footprint organically and through acquisition
… and also continues to grow its fleet management footprint, both organically and through acquisition… For personal use only (1) No fleet acquisitions in period 2014 - 2017 • Fleet West staffing, operations, technology and branding now integrated into Smartfleet. 1. Fleet West acquisition was comple
Slide 7: Delivering further EBITDA growth in 2018
... delivering further EBITDA growth in 2018… For personal use only (1) (1) (2) (2) (2) 1. CY 2016 acquisitions – Smartequity, Autopia and Selectus. 2. CY 2017 acquisitions – AccessPay, Aspire, RACV Salary Solutions and Fleet West (completed 4 Jan 2018). PAGE 6
Slide 8: Growing and diversified client base
... from a growing and diversified client base. For personal use only December 2015(1) Acquisitions since IPO(2) December 2018 2% 4% 5% 5% 11% 19% 5% 6% 132,500 52% 11% 154,500 343,000 73% 13% 40% packages packages packages 22% 32% PBI non-hospitals(3) PBI Hospitals(4) Government Education (5) Corpo
Slide 9: Novated leasing volumes continue to grow despite downturn in new vehicle sales
Smartgroup’s novated leasing volumes have continued to grow despite the downturn in private new vehicle sales For personal use only • Smartgroup has increased its novated leasing volumes despite private new vehicle sales falling over the course of 2017 and 2018. • Lift in SIQ NL settlement volumes r
Slide 10: Building on early successes delivering multiple services
Smartgroup is building on early successes in delivering multiple services, principally to our PBI clients. For personal use only Common clients across the group 164 clients use two or more service offerings, growth of 10% from June 2018 Number of Smartgroup services used by individual clients Smartg
Slide 11: Focus on customer service excellence and operational efficiency
TheIncrease focus operational efficiency on customer service excellence through increasing levels of customer adoption of digital channels and automation in core systems continues. For personal use only Online processing uptake of high-volume Smartsalary(1) transactions Progressive implementation of
Slide 12: Staffing level reflects focus on operational efficiencies and investment
The staffing level reflects the continued focus on operational efficiencies and investments in IT, sales and marketing For personal use only November 2015 Acquisitions(1) since IPO December 2018 10% 9% 6% 15% 8% 4% 365 FTE 413 FTE 695 FTE 21% 53% 31% 60% 50% 33% Corporate IT Sales and marketing Oper
Slide 13: Recent developments expected as we head into CY 2019
A number of recent developments are being experienced, or are expected as we head into CY 2019... For personal use only Banking Royal Commission – Final Report • The recommendations that impact Smartgroup (i.e., Deferred sales model for add-on insurance, Cap on commissions) are consistent with previ
Slide 14: CY 2018 marks another year of growth
CY 2018 marks another year of growth... For personal use only • Growth across all key financial and improved operational metrics • Continue to build on early successes delivering multiple service offerings to clients • Ongoing integration of acquired businesses, with clients progressively transition
Slide 15: Building on our track record since company inception
...building on our track record since company inception. For personal use only Revenue EBITDA 1. 2006 represents 18 months of results due to the change of year end from 30 Jun to 31 Dec. PAGE 20
Slide 16: Questions?
For personal use only Questions? PAGE 21
Slide 17: Important notice and disclaimer
Important notice and disclaimer 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. The information is give
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