Smartgroup Corporation Ltd · ASX:SIQ
Smartgroup — H1 2018 Earnings Presentation
18 slides from Smartgroup's earnings presentation, Aug 22, 2018
Slide 1: Investor Presentation H1 CY 2018 Results
For personal use only Investor Presentation H1 CY 2018 Results Deven Billimoria – Managing Director and CEO Tim Looi – Chief Financial Officer 23 August 2018 PAGE 0
Slide 2: Smartgroup has delivered another half year of positive results
Smartgroup has delivered another half year of positive results... For personal use only 1 Continued positive financial performance - Revenue of $122.6m up 26% vs pcp - NPATA(1) of $38.5m up 27% vs pcp 2 Continued client growth - Organic growth of c.9,000 salary packages and c.1,500 novated leases -
Slide 3: Growth across all financial and operational metrics
...with growth across all financial and operational metrics... For personal use only H1 2018 (1) H1 2017 $m $m $m Change % Revenue 122.6 97.5 26% EBITDA 55.0 44.6 23% NPATA 38.5 30.3 27% Shares on issue (millions) 131.0 123.1 6% NPATA per share (cps) 29.4 24.6 20% As at As at 30 June 30 June 2018 20
Slide 4: Increasing shareholder returns
...and increasing shareholder returns. For personal use only Revenue EBITDA 140.0 60.0 120.0 55.0 122.6 50.0 49.0 100.0 107.9 44.6 40.0 97.5 80.0 37.7 84.7 $m $m 30.0 60.0 62.4 25.6 20.0 40.0 46.0 48.4 19.6 39.3 17.8 36.0 20.0 10.0 12.3 11.8 - - H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 201
Slide 5: Organic growth across salary packages and novated leases
Smartgroup continues to see organic growth across salary packages and novated leases… For personal use only (1) (1) 1. CY 2015 includes 50,000 packages and 1,500 leases from the acquisition of Advantage and a major client win of c.7,400 packages. CY 2016 includes a major client win of c.6,500 packag
Slide 6: Growing fleet management footprint
… and also continues to grow its fleet management footprint, both organically and through acquisition. For personal use only (1) 1. Fleet West acquisition was completed in January 2018 PAGE 5
Slide 7: Initial success delivering multiple services to clients
Smartgroup is having initial success delivering multiple services to its clients For personal use only Common clients across the group 138 clients use two service offerings and 11 clients use three service offerings Fleet PBI fleet Share plan Workforce management solutions administration management
Slide 8: Salary packaging service delivery continues to be consolidated
Salary packaging service delivery continues to be consolidated, ensuring fit-for-purpose service model… For personal use only Acquisition PBI(2) Charities PBI(2) Corporate Completion Date Rebatables(1) Government Corporate SME and Aged Care Hospitals Large N/A May 2017 Contract IT development of $3.
Slide 9: Staffing profile reflects focus on operational efficiencies
... and the staffing profile reflects a continued focus on operational efficiencies and enhanced sales and IT capabilities. For personal use only November 2015 Acquisitions(1) since IPO June 2018 10% 8% 6% 15% 7% 4% 365 FTE 413 FTE 712 FTE 21% 53% 31% 60% 53% 32% Corporate IT Sales and marketing Ope
Slide 10: Financial results H1 2018
For personal use only Financial results H1 2018 Tim Looi Chief Financial Officer Tim PAGE 9
Slide 11: H1 2018 NPATA of $38.5m, a 27% increase
Smartgroup recorded H1 2018 NPATA of $38.5m, a 27% increase from the prior year... For personal use only $m H1 2018 H1 2017 adjusted(1) adjusted Change % Revenue(2) 122.6 97.5 26% EBITDA(3) 55.0 44.6 23% NPAT 29.4 23.2 NPATA(4) 38.5 30.3 27% 1. A reconciliation of the statutory accounts to adjusted
Slide 12: Cashflow from operations at 98% of NPATA
…with cashflow from operations at 98% of NPATA For personal use only $m H1 2018 H1 2017 Receipts from customers (inclusive of GST) 135.0 103.6 Payments to suppliers and employees (inclusive of GST)(1) (79.0) (60.5) Interest receipts from operations 1.3 1.4 Interest paid (2.2) (2.7) Income taxes paid
Slide 13: Smartgroup's balance sheet is well capitalised
Smartgroup’s balance sheet is well capitalised For personal use only 30 June 2018 31 Dec 2017 $m Statutory statutory Cash 44.8 30.9 Restricted cash (1) 47.5 67.6 Trade and other current assets (2) 39.1 26.7 Current assets 131.4 125.2 1. Restricted cash and customer salary packaging liabilities repre
Slide 14: In summary
For personal use only In summary… Deven Billimoria Managing Director and CEO PAGE 13
Slide 15: Closing remarks
Closing remarks For personal use only • Smartgroup has delivered another half year of positive results • Growth across all key financial and operational metrics • Initial success delivering additional service offerings to clients • Salary packaging service delivery continues to be consolidated • Str
Slide 16: Questions?
For personal use only Questions? PAGE 15
Slide 17: Appendix – reconciliation of earnings to statutory financial statements
Appendix – reconciliation of earnings to statutory financial statements For personal use only Reclasify: Reclass H1 2018 Equity share Add back: corporate H1 2018 statutory of M&A costs interest adjusted financials investments revenue Revenue 122.8 - - (0.2) 122.6 Operating EBITDA 54.9 - 0.3 (0.2) 55
Slide 18: 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