Slide 1: MMS Group FY11 Results Presentation
For personal use only MMS Group FY11 Results Presentation August 2011
Slide 2: Highlights FY11
Page 2 MMS Group FY11 Results Presentation For personal use only Highlights FY11 A year of consolidation, consistent delivery and ongoing, profitable, organic growth: Consolidated NPAT of $43.5m (normalised growth of +56%). Normalised(1) Basic EPS growth of 55%. Group Remuneration Services NPAT of $
Slide 3: Consolidated financial performance
Page 3 MMS Group FY11 Results Presentation For personal use only Consolidated financial performance (1) (1) FY10 FY11 % FY10 FY11 % FY10 FY11 $000 $000 Increase $000 $000 Increase $000 $000 Group Group Remuneration Remuneration Asset Asset Services Services Management Management Total Total ("Origin
Slide 4: NPAT bridge FY10 to FY11
Page 4 MMS Group FY11 Results Presentation For personal use only NPAT bridge FY10 to FY11 50 1.0 Growth 57% Growth 56% 45 0.3 40 10.3 Growth 26% 35 6.6 30 25 ($m) 43.8 43.5 20 15 27.9 10 5 0 NPAT FY10 (excl Group Asset Aquisition funding Normalised NPAT Integration costs NPAT FY11 ILA acquisition Re
Slide 5: Historical normalised NPAT
Page 5 MMS Group FY11 Results Presentation For personal use only Historical normalised NPAT Profit recognised on ILA business 17.1 40 combination 43.5 Normalised NPAT 5-year CAGR of 30.9% 30 27.9 $m 20 20.5 17.4 13.2 10 11.3 0 FY06 FY07 FY08 FY09 FY10 FY11 NPAT continuing operations Acquisition gain
Slide 6: Historical earnings and dividends per share
Page 6 MMS Group FY11 Results Presentation For personal use only Historical earnings and dividends per share Normalised earnings per share (EPS) (1) Total dividends per share 70.0 40 EPS 5-year CAGR of 30.2% 60.0 35 50.0 30 40.0 25 cents cents 30.0 20 20.0 15 10.0 10 0.0 5 FY04 FY05 FY06 FY07 FY08 F
Slide 7: Definition of segments
Page 7 MMS Group FY11 Results Presentation For personal use only Definition of segments Group Remuneration Services segment definition: The segment provides administrative services in respect of salary packaging and facilitates the settlement of motor vehicle novated leases for customers, but does n
Slide 8: Group Remuneration Services segment
Page 8 MMS Group FY11 Results Presentation For personal use only Group Remuneration Services segment Revenue growth of 21% on PCP. NPAT growth of 26% on PCP. Core operating contribution increase of 23% over PCP. Strong free cashflow ($30.7m). Customer metrics exceeding benchmarks. Ongoing productivi
Slide 9: Group Remuneration Services financial performance
Page 9 MMS Group FY11 Results Presentation For personal use only Group Remuneration Services financial performance FY10 FY11 % Comment $000 $000 Inc Segment revenue 92,139 111,648 21% Consistent delivery and ongoing organic growth. Employee expenses 38,574 43,908 14% Significantly below revenue grow
Slide 10: Productivity and customer satisfaction indices
Page 10 MMS Group FY11 Results Presentation For personal use only Productivity and customer satisfaction indices . Group Remuneration Services Productivity Index (7/08 = 100) MMS Customer Satisfaction Index [Rolling 3 month Revenue (ex SP Interest) / FTE] December 2008 = 100 140 250 135 130 200 125
Slide 11: Asset Management segment highlights
Page 11 MMS Group FY11 Results Presentation For personal use only Asset Management segment highlights Strong EBIT/NPAT performance in first full year of ownership. Business now growing and gaining momentum, notwithstanding steep run-off curve when purchased. Operating lease book grew by $8m with $6m
Slide 12: Asset Management segment highlights (cont'd)
Page 12 MMS Group FY11 Results Presentation For personal use only Asset Management segment highlights (cont’d) Improving, more balanced income streams, including in-life services / procurement. Residual value performance ahead of expectations. Credit losses for FY11 were less than $25,000 and were f
Slide 13: Asset Management financial performance
Page 13 MMS Group FY11 Results Presentation For personal use only Asset Management financial performance FY10(1) FY11 $000 $000 Segment revenue 38,882 158,890 Depreciation of motor vehicle fleet 15,989 63,681 Interest on fleet financing 2,359 9,464 Lease and vehicle management expenses 13,064 52,434
Slide 14: Asset Management key balance sheet numbers
Page 14 MMS Group FY11 Results Presentation For personal use only Asset Management key balance sheet numbers FY10 FY11 $000 $000 Operating lease assets 202,472 210,661 Motor vehicle inventories 1,809 1,478 Finance leases and CHP 9,226 7,948 Total Funded Fleet assets 213,507 220,086 Fleet financing b
Slide 15: Gearing
Page 15 MMS Group FY11 Results Presentation For personal use only Gearing MMS & Group Remuneration Asset Services (1) Management Group Balance at Group Balance at 30 June 2011 30 June 2011 30 June 2011 30th June 2010 $000 $000 $000 $000 Net debt 5,152 109,814 114,966 125,970 Book value of equity 26,
Slide 16: Cash flow
Page 16 MMS Group FY11 Results Presentation For personal use only Cash flow Group Remuneration Asset Unallocated / MMS Group Services Management parent co. Total $000 $000 $000 $000 Segment NPAT 31,658 13,460 (1,658) 43,460 Non-fleet depn/amort and fleet prov movements 4,362 (1,205) - 3,156 Working
Slide 17: Funding
Page 17 MMS Group FY11 Results Presentation For personal use only Funding The Group renegotiated its borrowing arrangements for Interleasing in 2HFY11. The . objectives of the renegotiation were to: provide longer-term funding facilities to enhance liquidity position; reduce funding costs; and provi
Slide 18: Overview of key activities in FY11
Page 18 MMS Group FY11 Results Presentation For personal use only Overview of key activities in FY11 Commitment to a clear strategy with disciplined prioritisation and execution. Demonstrated capabilities in distribution, BPO and Asset Management. Re-investment in business: - Recruitment, induction,
Slide 19: Key activities and highlights in FY11 (cont'd)
Page 19 MMS Group FY11 Results Presentation For personal use only Key activities and highlights in FY11 (cont’d) 106 new business contracts and cross-sales acquired in FY11. Re-marketing initiatives have delivered excellent results. Queensland Government contract retained. First class Business Conti
Slide 20: Sensitivities
Page 20 MMS Group FY11 Results Presentation For personal use only Sensitivities Availability of Japanese motor vehicles post-earthquake (full availability said to come on line in September/October). New motor vehicle sales (at this stage, general fall in motor vehicle sales and poor retail environme
Slide 21: Sensitivities (cont'd)
Page 21 MMS Group FY11 Results Presentation For personal use only Sensitivities (cont’d) Notwithstanding a two day “Tax Summit” scheduled for this October, the Government has dealt with the two key issues that may have had a material impact on our business through its considered response (over six m
Slide 22: Sensitivities (cont'd)
Page 22 MMS Group FY11 Results Presentation For personal use only Sensitivities (cont’d) Issue 2 - Novated leases: In last May’s Federal Budget, the Government accepted the Henry recommendation to move the FBT concession on motor vehicles to a flat 20% rate. See MMS ASX announcement on 11 May 2011 “
Slide 23: Outlook
Page 23 MMS Group FY11 Results Presentation For personal use only Outlook A year of consolidation, execution and ongoing organic growth. Consistent, profitable, cash generative growth through: - New business and cross-sales using our unique value proposition and capability set. - Increasing particip