Smartgroup Corporation Ltd · ASX:SIQ
Smartgroup — Goldman Sachs Ninth Annual Small and Mid-Cap Conference 2018
16 slides from Smartgroup's conference presentation, Apr 17, 2018
Slide 1: Goldman Sachs Ninth Annual Small and Mid-Cap Conference
For personal use only Goldman Sachs Ninth Annual Small and Mid-Cap Conference Sydney Deven Billimoria, Managing Director and CEO 17 April 2018 PAGE 0
Slide 2: 2017 was another successful year for Smartgroup
2017 was another successful year for Smartgroup... For personal use only Continued strong financial performance 1 - Revenue of $205.4m up 40% vs CY 2016 - NPATA(1) of $64.1m up 46% vs CY 2016 Continued client growth and diversification 2 - Organic growth of c.24,500 packages and c.2,900 leases - Exp
Slide 3: Growth across all financial and operational metrics
...with growth across all financial and operational metrics... For personal use only Change % CY 2017 Change % $m CY 2016 CY 2017 (CY17 v CY16) proforma(2) (CY17PF v CY16) Revenue 147.1 205.4 40% 226.8 54% EBITDA(1) 63.3 93.6 48% 100.6 59% NPATA 44.0 64.1 46% 68.5 56% Shares on issue (millions) 121.
Slide 4: ...and increasing shareholder returns
...and increasing shareholder returns. For personal use only (2) Revenue(1) EBITDA 120.0 50.0 45.0 49.0 100.0 107.9 44.6 40.0 97.5 35.0 37.7 80.0 84.7 30.0 $m $m 60.0 25.0 62.4 25.6 20.0 40.0 46.0 48.4 19.6 15.0 17.8 39.3 36.0 10.0 11.8 12.3 20.0 5.0 - - H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 20
Slide 5: Growth in salary packages and novated leases organically and through acquisition
Smartgroup has continued to grow salary packages and novated leases both organically and through acquisition … 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 gro
Slide 6: Delivering strong EBITDA growth in 2017
... delivering strong EBITDA growth in 2017. For personal use only (2) (3) (1) (2) (2) (2) (3) (3) 1. CY 2015 acquisition – Advantage. Proforma is arrived at by including the pre-acquisition financial performance. 2. CY 2016 acquisitions – Smartequity, Autopia and Selectus. 3. CY 2017 acquisitions –
Slide 7: Growing and diversifying its client base
Smartgroup has continued to grow and diversify its client base… For personal use only Given the growth in Smartgroup’s client base, the top 5 clients account for 29% of revenue vs 51% in 2013(1). Smartgroup’s employer clients now total c.3,900 vs c.200 in 2013. Notes: Total revenue CY13: $62.4m, PF1
Slide 8: Expand its client footprint
... expand its client footprint … For personal use only (1) (1) Total packages (2) Total packages c. 105,000 c. 325,000 (2) 1. ‘Education’ includes public and private not-for-profit educational institutions. 2. ‘Hospitals’ includes public and private not-for-profit hospitals. PAGE 7
Slide 9: ...and extend its service offering
...and extend its service offering. For personal use only PAGE 8
Slide 10: Increase operational efficiency
Increase operational efficiency Digital channels at flagship Smartsalary brand have continued to see increasing levels of customer adoption. For personal use only Online processing uptake of high-volume Smartsalary(1) transactions 1. At Dec 2017, Smartsalary represented c.50% of total SIQ packages a
Slide 11: Recognised as one of Australia's most innovative and customer-centric companies
Smartgroup continues to be recognised as one of Australia’s most innovativeOur and strategy customer-centric companies… For personal use only Smartgroup capabilities triangle PAGE 10
Slide 12: Smartsalary achieved highest audit score in Customer Service Institute history
… and Smartsalary achieved the highest audit score awarded in the history of the Customer Service Institute of Australia, for the Award year. third consecutive winning customer service For personal use only PAGE 11
Slide 13: CY 2018 update
CY 2018 update For personal use only • The business continues to trade to plan o Client renewals and wins across SIQ businesses o Business and IT integration initiatives tracking to plan • Successful recent institutional placement and share purchase plan to strengthen Smartgroup’s balance sheet and
Slide 14: 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 13
Slide 15: Questions?
For personal use only Questions? PAGE 14
Slide 16: 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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