Mcmillan Shakespeare Limited · ASX:MMS
Mcmillan Shakespeare — FY2015 Earnings Presentation
29 slides from Mcmillan Shakespeare's earnings presentation, Aug 25, 2015
Slide 1: MMS Group FY15 Results Presentation
For personal use only MMS Group FY15 Results Presentation August 2015
Slide 2: Overview
Group Overview MMS Group FY15 Results Presentation 2 Overview For personal use only MMS generated a record financial result in FY15 o EBITDA up 20%, NPAT up 23%, EPS up 18% MMS has entered a new stage in its evolution o Step change in scale, competitiveness and opportunity o Created a leading pr
Slide 3: FY15 Operational Highlights
Group Overview MMS Group FY15 Results Presentation 3 FY15 Operational Highlights For personal use only Significant growth and profitability within Group Remuneration Services (GRS) o Operating revenues increased 12%, EBITDA by 25% and NPAT margins remain strong Selective approach to growth in As
Slide 4: FY15 Operational Highlights (cont.)
Group Overview MMS Group FY15 Results Presentation 4 FY15 Operational Highlights (cont.) For personal use only Secured additional contracts from new clients with a good pipeline of new business extending into FY16 Secured improved funding arrangements with financers Productivity improvements f
Slide 5: FY15 Financial Highlights
Group Overview MMS Group FY15 Results Presentation 5 FY15 Financial Highlights For personal use only Consolidated NPAT $67.5m1 (23% growth on FY14) with underlying NPAT $70.2m2 (26% growth on FY14) o Group Remuneration Services NPAT $54.3m (29% growth on FY14) o Asset Management NPAT $11.3m (17% l
Slide 6: Consolidated Financial Performance
Group Overview MMS Group FY15 Results Presentation 6 Consolidated Financial Performance For personal use only Change % $000 FY15 FY14 Change % FY13 with FY15 Profit and Loss Revenue from operating activities 387,263 345,316 12% 327,817 18% Expenses 282,136 257,702 9% 239,589 18% FY15 Revenue breakdo
Slide 7: NPAT Performance ($m)
Group Overview MMS Group FY15 Results Presentation 7 NPAT Performance ($m) For personal use only Underlying NPAT 70.2 67.5 10 year CAGR 29% 62.2 55.9 54.3 55.0 43.5 27.9 20.5 17.4 13.2 11.3 5.2 1,2 3 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY15 saw a return to the historical perform
Slide 8: Earnings Per Share (cents)
Group Overview MMS Group FY15 Results Presentation 8 Earnings Per Share (cents) For personal use only 87 83 10 year CAGR 27% 77 74 64 41 30 26 20 17 8 1 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Impressive FY15 EPS performance is reflective of the additional shares issued as a result
Slide 9: Dividends Per Share (cents)
Group Overview MMS Group FY15 Results Presentation 9 Dividends Per Share (cents) For personal use only 10 year CAGR 30% 52.0 52.0 47.0 42.0 38.0 24.0 19.0 16.5 12.5 9.5 3.9 1 2 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY14 DPS incorporates a ‘catch up’ dividend payment given conserva
Slide 10: Segments Defined
Group Overview MMS Group FY15 Results Presentation 10 Segments Defined For personal use only Group Remuneration Services Asset Management Retail Financial Services Brands Administrative services in Financing and ancillary Retail brokerage services, respect of salary packaging management servic
Slide 11: Segment Financial Overview
Group Overview MMS Group FY15 Results Presentation 11 Segment Financial Overview For personal use only Group Retail Remuneration Asset Financial Unallocated FY15 2 $000 Services Management Services items Total Revenue 176,096 188,061 23,106 - 387,263 EBITDA 79,697 19,929 5,501 - 105,127 EBITDA margi
Slide 12: Group Remuneration Services Full Year Financial Performance
Group Remuneration Services MMS Group FY15 Results Presentation 12 Group Remuneration Services For personal use only Full Year Financial Performance % Change % Change $000 FY15 FY14 with FY15 FY13 with FY15 Segment revenue 176,096 157,247 12% 155,855 13% Expenses Employee expenses 71,649 67,138 7% 6
Slide 13: Group Remuneration Services Commentary
Group Remuneration Services MMS Group FY15 Results Presentation 13 Group Remuneration Services For personal use only Commentary FY15 NPAT of $54.3m was $12.3m or 29% higher than FY14 Improving participation, strong sales and distribution capability and significant new business wins Good pipeli
Slide 14: Group Remuneration Services Historical Financial Performance
Group Remuneration Services MMS Group FY15 Results Presentation 14 Group Remuneration Services For personal use only Historical Financial Performance 176 156 157 137 112 92 76 66 54 54 48 47 40 42 36 32 25 17 20 6 12 13 1 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Revenue Net profit afte
Slide 15: Competitive Strengths and Performance Indices
Group Remuneration Services MMS Group FY15 Results Presentation 15 Group Remuneration Services For personal use only Competitive Strengths and Performance Indices Productivity Index Customer Satisfaction Index4 Rolling 3 month revenue (ex SP interest ) / FTE 180 300 170 250 160 200 150 1 140 150 1 1
Slide 16: Asset Management Full Year Financial Performance
Asset Management MMS Group FY15 Results Presentation 16 Asset Management For personal use only Full Year Financial Performance FY15 FY14 $000 Australia / NZ UK Total Australia / NZ UK Total Segment revenue 175,433 12,628 188,061 178,195 9,874 188,069 Expenses Depreciation of motor vehicle fleet 83,0
Slide 17: Australia and New Zealand Commentary
Asset Management MMS Group FY15 Results Presentation 17 Asset Management For personal use only Australia and New Zealand Commentary Recorded a decline in NPAT compared to FY14 o Decline principally driven by an increase in asset impairment provisions for certain heavy vehicle clients of $3.2m and
Slide 18: UK Commentary
Asset Management MMS Group FY15 Results Presentation 18 Asset Management For personal use only UK Commentary UK business building momentum recording first year of combined profitability o All wholly owned businesses generated a profit o JV business continues to build brand reputation in the market
Slide 19: Fleet Assets Written Down Value
Asset Management MMS Group FY15 Results Presentation 19 Asset Management For personal use only Fleet Assets Written Down Value 425 114 334 14 320 307 311 262 213 214 220 Acquisition 1 April Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 2010 Australia / New Zealand UK
Slide 20: Retail Financial Services Full Year Financial Performance
Retail Financial Services MMS Group FY15 Results Presentation 20 Retail Financial Services For personal use only Full Year Financial Performance 1,2 27 February 2015 FY15 full year 2,3 FY15 Revenue breakdown3 $000 to 30 June 2015 pro-forma Segment revenue 23,106 69,252 Expenses 16% Employee expenses
Slide 21: Retail Financial Services Commentary
Retail Financial Services MMS Group FY15 Results Presentation 21 Retail Financial Services For personal use only Commentary Completed the acquisition of Presidian on 27 February 2015 for $114.4m Capture of revenue synergies and development of IT platform is ongoing o Secured improved funding arr
Slide 22: Presidian Overview
Retail Financial Services MMS Group FY15 Results Presentation 22 Retail Financial Services For personal use only Presidian Overview Rationale for the Presidian acquisition Leading independent provider of Represents value to shareholders finance, warranty and insurance with a focus on used vehicl
Slide 23: Events Subsequent to Balance Date - Acquisition of UFS
Retail Financial Services MMS Group FY15 Results Presentation 23 Retail Financial Services For personal use only Events Subsequent to Balance Date - Acquisition of UFS1 Completed the acquisition of UFS on 31 July 2015, for an acquisition price of $42m UFS is an independent financial agency and a
Slide 24: Key Funded Balance Sheet Items
Funding MMS Group FY15 Results Presentation 24 Key Funded Balance Sheet Items For personal use only $000 30-Jun-15 30-Jun-14 Movement Operating lease assets 293,125 303,408 (10,283) Motor vehicle inventories 7,165 5,379 1,786 Finance leases & commercial hire purchase Current 35,253 7,969 27,284 Non-
Slide 25: Gearing
Funding MMS Group FY15 Results Presentation 25 Gearing For personal use only 30-Jun-15 30-Jun-14 MMS & other Asset $000 segments Management Group Balance Group Balance Net Debt (22,016) 287,991 265,975 143,903 Book value of equity 170,162 148,281 318,443 223,847 1 Gearing ratio (15%) 66% 46% 39% 2 I
Slide 26: FY15 Cashflow
Funding MMS Group FY15 Results Presentation 26 FY15 Cashflow For personal use only Group Retail Remuneration Asset Financial Unallocated / $000 Services Management Services parent co. MMS Group Segment NPAT 54,306 11,281 3,027 (1,126) 67,488 Non-fleet depn / amort, reserves and other non-cash items
Slide 27: Funding Overview
Funding MMS Group FY15 Results Presentation 27 Funding Overview For personal use only The Group funding arrangements were extended to March 2018 on more favourable terms During FY15, the UK facility was increased by a further £32m on more favourable terms Cash as at 30 June 2015 was $85.7m Bor
Slide 28: Key Risk Sensitivities
Risk MMS Group FY15 Results Presentation 28 Key Risk Sensitivities For personal use only Interest rates (earnings on float) Second hand car prices (remarketing earnings) New car sales (novated lease participation) Government policy development Loss of major customers General economic con
Slide 29: Outlook
Strategy and Outlook MMS Group FY15 Results Presentation 29 Outlook For personal use only Ongoing profitable growth through: o New business and cross-sell from our stronger integrated value proposition, competitive cost of funds and flexible financing facilities o Increasing participation rates wi