Smartgroup Corporation Ltd · ASX:SIQ
Smartgroup — Macquarie Australia Conference 2023
25 slides from Smartgroup's conference presentation, May 3, 2023
Slide 1: Macquarie Australia Conference and business update
ASX Announcement Release date: 3 May 2023 Macquarie Australia Conference and business update Smartgroup Corporation Ltd (ASX: SIQ) (“Smartgroup” or “the Company”), a specialist employee benefit services provider, is pleased to provide a business update and a copy of the presentation to be presented
Slide 2: For further information
This announcement was authorised for release by the Board of Directors of Smartgroup. For further information: Website: www.smartgroup.com.au Email: Investor Relations: ir@smartgroup.com.au Anthony Dijanosic Sophie MacIntosh Chief Financial Officer Chief Legal Officer and Joint Company Secretary 130
Slide 3: Macquarie Australia Conference 2023
Macquarie Australia Conference 2023 Tim Looi, Chief Executive Officer 3 May 2023
Slide 4: Acknowledgement of Country
Acknowledgement of Country I acknowledge that I am speaking to you from the lands of the Gadigal People of the Eora Nation. I pay my respects to their Elders past, present and emerging, and extend that respect to all Aboriginal and Torres Strait Islander people here today. 2
Slide 5: Smartgroup
Smartgroup
Slide 6: Our investment proposition – capital light business model, strong cash flows and dividends
Our investment proposition – capital light business model, strong cash flows and dividends 378,000 58,000 25,900 ~740 Salary Packaging Novated Fleet Vehicles Full Time customers Leases Managed Equivalents Premium established player with scale Diversified customer base operating in Proven and r
Slide 7: Smartgroup operates in attractive market segments
Smartgroup operates in attractive market segments Corporate Our employer clients and employee customers Education 3% 7% • Not-for-Profit – charities, disability and aged care providers • Hospital – Government public and private 20% 378,000 Not-for-Profit 46% • Government – local, state and federal S
Slide 8: We invest in our customers and communities and are committed to a smarter, more sustainable tomorrow
We invest in our customers and communities and are committed to a smarter, more sustainable tomorrow Employer of Choice for Endorsed our first Continued recognition for high Fourth year of grants, Gender Equality 2021-2023. Sustainability Strategy with service standards donating almost $250,
Slide 9: We have delivered c.630% Total Shareholder Returns since IPO
We have delivered c.630% Total Shareholder Returns since IPO, including franking value Since listing in 2014, Smartgroup has paid ~$448m in fully franked dividends (~$192m franking value) ~$160M SIQ Market Cap | 2 July 2014 ~$900m SIQ Market Cap | 20 April 2023 1,200% Performance indexed to 100 at 2
Slide 10: 2022 recap and operational update
2022 recap and operational update 8 8
Slide 11: Steady operational performance for 2022 calendar year
Steady operational performance for 2022 calendar year NPATA Strong leasing Significant uptick in Progress on Smart Strong cash flow of $61.2m demand Electric Vehicle (EV) Future program conversion and 2022 demand dividends at 100% of NPATA Revenue of $224.7m Strong 14% growth in c.270% increase in E
Slide 12: Strong level of leasing enquiries and orders has continued into 2023
Strong level of leasing enquiries and orders has continued into 2023 Mar 2023 YTD v. pcp1 Strong customer interest has continued into 2023 ▸ Customer enquiry levels remain strong Digital leasing leads +42% ▸ Additional open leads represent potential revenue of $3-4m3 Total leasing leads +31% Electri
Slide 13: Vehicle supply more stable but challenges remain
Vehicle supply more stable but challenges remain ▸ Delivery timeframes extended further in 2022, Average vehicle order to delivery timeframes though appears to be stabilising, leading to for Smartgroup top 30 makes/models by further growth in the Vehicle Order pipeline in volume1 2022 and Q1 2023 10
Slide 14: New vehicle orders continue to exceed settlements
New vehicle orders continue to exceed settlements1, leading to further growth in the open order pipe in Q1 2023 10% Customers delaying buying decisions 0% ▸ Credit approval to vehicle order timeframe extended by c.20% in 2022 -10% -20% Car supply continues to impact settlements -30% ▸ ‘Excess’ VO pi
Slide 15: Smart Future
Customer Sign In cal par iro —— What is salary ee marisaiary Salary pe p agin
Slide 16: Smart Future 'scorecard' – meaningful progress made
Smart Future ‘scorecard’ – meaningful progress made Foundations Leasing calculators Smartsalary website Integrated appointment Car Leasing Portal and salary packaging booking system 24/7 quoting calculator Customer sales Strong, sustained visit Meaningful increase Increase in education Lif
Slide 17: Smartleasing
Smartleasing 200% Online novated leasing 150% New website calculator go-live calculators continue to 100% generate strong lead growth 50% 0% ▸ Smartleasing live Q1 2021 (c.90% of group Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 novated leases) -50% Baseline 2020 2021 2022 2023 - Significant increase in cus
Slide 18: Smartsalary website and packaging calculator
Education content engagement Smartsalary website and packaging calculator ▸ New website including self-education content went live in July 2022; Smartsalary Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 packaging calculator education tool live User sessions Unique Page Views October
Slide 19: Integrated appointment booking system
Integrated appointment booking system Smartsalary customer education team enrolments1 14,000 Transition to new, 450 ▸ Single system rolled out across all single system 400 12,000 350 Smartgroup brands in Q3 and Q4 2022 10,000 300 8,000 250 ▸ Incentive structure updated at start of 2023 6,000 200 150
Slide 20: Car Leasing Portal – 24/7 quoting
Pilot client group proportion of 2022 new lease quotes Car Leasing Portal – 9% 24/7 quoting ▸ Pilot commenced in February 2023 to c.100 clients (pilot clients accounted for c.9% of total 2022 new lease quotes) ▸ Quote volume from pilot clients increased 23% v pcp Average monthly quotes – pilot clien
Slide 21: Electric Vehicles
Electric Vehicles 19
Slide 22: EV % of total quotes
EV % of total quotes 25% Federal Government 20% policy generating strong 15% increase in EV demand 10% 5% ▸ Federal Government Electric Car Discount 0% Policy abolishes FBT on new EVs provided Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2022 2023 through novated leases1 EV quotes by segment ▸ Strong EV demand g
Slide 23: Update to March 2023 and Outlook
Update to March 2023 and Outlook 21
Slide 24: Positive trading momentum with increased revenue offsetting cost inflation
Positive trading momentum with increased revenue offsetting cost inflation Continued client success Stable salary packages with several new client wins Novated lease vehicles under management stable Fleet vehicles under management expected to grow in H2 by c.2,000 vehicles (+10%) from new clie
Slide 25: Slide 25