Mcmillan Shakespeare Limited · ASX:MMS
Mcmillan Shakespeare — H1 FY2012 Earnings Presentation
21 slides from Mcmillan Shakespeare's earnings presentation, Feb 21, 2012
Slide 1: MMS Group 1HFY12 Results Presentation
MMS Group 1HFY12 Results Presentation For personal use only 21 February 2012
Slide 2: Half year presentation contents
Page 2 MMS Group 1HFY12 Results Presentation For personal use only Half year presentation contents Page 1. Financial highlights 3 2. Segment performance 7 3. Gearing, cash flow and funding 15 4. Key activities / initiatives 18 5. Sensitivities 20 6. Outlook 21
Slide 3: Financial highlights
Page 3 MMS Group 1HFY12 Results Presentation For personal use only Financial highlights Ongoing organic profitable growth. Consolidated NPAT of $25m (21.4% growth on PCP). Group Remuneration Services NPAT of $18.5m (23% growth on PCP). Asset Management NPAT of $7m (5.1% growth on PCP). Basic EPS of
Slide 4: Consolidated financial performance
Page 4 MMS Group 1HFY12 Results Presentation For personal use only Consolidated financial performance 1H FY12 1H FY11 % 1H FY12 1H FY11 % 1H FY12 1H FY11 $000 $000 Increase $000 $000 Increase $000 $000 Group Group Remuneration Remuneration Asset Asset Services Services Management Management Total To
Slide 5: Earnings per share
Page 5 MMS Group 1HFY12 Results Presentation For personal use only Earnings per share Basic EPS 40.00 EPS 5-year CAGR of 31.8% 35.00 30.00 25.00 cents 20.00 15.00 10.00 5.00 0.00 1H FY06 1H FY07 1H FY08 1H FY09 1H FY10 1H FY11 1H FY12
Slide 6: NPAT performance
Page 6 MMS Group 1HFY12 Results Presentation For personal use only NPAT performance 40.0 35.0 NPAT 5-year CAGR of 32.6% 30.0 25.0 $m 20.0 15.0 10.0 5.0 0.0 1H FY06 1H FY07 1H FY08 1H FY09 1H FY10 1H FY11 1H FY12
Slide 7: Definition of segments
Page 7 MMS Group 1HFY12 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
Slide 8: Group Remuneration Services financial performance
Page 8 MMS Group 1HFY12 Results Presentation For personal use only Group Remuneration Services financial performance 1H FY12 1H FY11 % $000 $000 Inc Comment Segment revenue 64,413 53,618 20% Ongoing organic growth. Expenses Employee expenses 24,946 20,911 19% Investing ahead of the growth curve. Dep
Slide 9: Revenue and EBIT Group Remuneration Services
Page 9 MMS Group 1HFY12 Results Presentation For personal use only Revenue and EBIT Group Remuneration Services Revenue and EBIT performance 70.0 EBIT 5-year CAGR of 24.6% 60.0 Revenue 5-year CAGR of 19.6% 50.0 40.0 $m 30.0 20.0 10.0 0.0 1H FY06 1H FY07 1H FY08 1H FY09 1H FY10 1H FY11 1H FY12 Revenu
Slide 10: Competitive strengths and performance indices
Page 10 MMS Group 1HFY12 Results Presentation For personal use only Competitive strengths and performance indices Group Remuneration Services Productivity Index (7/08 = 100) MMS Customer Satisfaction Index [Rolling 3 month Revenue (ex SP Interest) / FTE] December 2008 = 100 145 250 140 135 200 130 1
Slide 11: Group Remuneration Services commentary
Page 11 MMS Group 1HFY12 Results Presentation For personal use only Group Remuneration Services commentary Business maintaining significant momentum on the back of excellent service delivery, strengthening reputation and improving distribution capability; leading to increasing participation, cross-s
Slide 12: Asset Management financial performance
Page 12 MMS Group 1HFY12 Results Presentation For personal use only Asset Management financial performance 1H FY12 1H FY11 % $000 $000 Inc Segment revenue 78,593 82,683(1) -5% Expenses Depreciation of motor vehicle fleet 32,693 32,079 2% Interest on fleet financing 4,761 5,032 -5% Lease and vehicle
Slide 13: Asset Management segment commentary
Page 13 MMS Group 1HFY12 Results Presentation For personal use only Asset Management segment commentary First half performance exceeded expectations. Assets under finance - growth is accelerating ($19m during first six months of FY12). Japanese earthquake and Thai floods have delayed some deliveries
Slide 14: Asset Management key balance sheet numbers
Page 14 MMS Group 1HFY12 Results Presentation For personal use only Asset Management key balance sheet numbers 31-Dec-11 30-Jun-11 $000 $000 Operating lease assets 221,660 210,661 Motor vehicle inventories 2,237 1,478 Finance leases & CHP 15,161 7,948 Total funded fleet assets 239,058 220,086 Net Fl
Slide 15: Gearing
Page 15 MMS Group 1HFY12 Results Presentation For personal use only Gearing MMS & Group Remuneration Asset Group Balance Group Services (1) Management at Balance at 31-Dec-11 31-Dec-11 31-Dec-11 30-Jun-11 $000 $000 $000 $000 Net debt -11,406 123,766 112,360 114,966 Book value of equity 42,344 94,216
Slide 16: 1HFY12 cash flow
Page 16 MMS Group 1HFY12 Results Presentation For personal use only 1HFY12 cash flow Group Remuneration Asset Unallocated / MMS Group Services Management parent co. Total $000 $000 $000 $000 Segment NPAT 18,479 6,944 (505) 24,918 Non-fleet depn/amort and fleet prov movements 2,829 788 - 3,617 Workin
Slide 17: Funding
Page 17 MMS Group 1HFY12 Results Presentation For personal use only Funding The Group renegotiated its borrowing arrangements for Asset Management subsequent to reporting date. The objectives of the renegotiation were to: provide longer-term funding facilities to enhance liquidity position; reduce f
Slide 18: 1HFY12 key points
Page 18 MMS Group 1HFY12 Results Presentation For personal use only 1HFY12 key points Integrated business gaining momentum. Ongoing strong profitable growth in Group Remuneration Services segment. Assets under finance and management now accelerating growth. Integrated model well accepted; 94 new con
Slide 19: 1HFY12 key points (cont'd)
Page 19 MMS Group 1HFY12 Results Presentation For personal use only 1HFY12 key points (cont’d) Significant investment in client relationship management (people and programs). Good pipeline of new business. Business appears unaffected by current economic turmoil. Leading indicators appear strong.
Slide 20: Sensitivities
Page 20 MMS Group 1HFY12 Results Presentation For personal use only Sensitivities New car sales. Second hand car values. Interest rates. Key contract tenders – South Australian Government tender announcement expected in 2HFY12. (Maxxia currently one of three panel members.) Uncertain global economy.
Slide 21: Outlook
Page 21 MMS Group 1HFY12 Results Presentation For personal use only Outlook Ongoing organic profitable growth through: o New business and cross-sell from our stronger post acquisition value proposition, competitive cost of funds and flexible financing facilities. o Increasing participation rates wit
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