Fleetpartners Group Limited · ASX:FPR
Fleetpartners — FY2024 Earnings Presentation
35 slides from Fleetpartners's earnings presentation, Nov 18, 2024
Slide 1: FleetPartners Group Limited (ASX:FPR)
FleetPartners Group Limited (ASX:FPR) 18 November 2024
Slide 2: Legal disclaimer
Legal disclaimer This Presentation contains summary information about FleetPartners Group Limited (FleetPartners) and its subsidiaries and their activities, current as at the date shown on the front page of this Presentation. The information in this Presentation does not purport to be complete. It s
Slide 3: Acknowledgement of Country
Acknowledgement of Country In the spirit of reconciliation, FleetPartners acknowledges the traditional owners of the lands and waters across the Australian continent and we pay our respects to the many thousands of generations who looked after the lands and waters where we currently live and work to
Slide 4: Agenda
Agenda 1. Performance highlights 2. Financial result 3. Operating segment performance 4. Outlook 5. Appendices
Slide 5: 1. Performance highlights
1. Performance highlights Damien Berrell Chief Executive Officer and Managing Director
Slide 6: FY24 performance highlights
FY24 performance highlights FY24 highlighted record NBW and AUMOF1, growing at 21%2 and 11%, respectively STRATEGIC PATHWAYS A RECURRING ONGOING DELIVERY DRIVING STRONG GROWTH REVENUE MODEL OF SHAREHOLDER RETURNS 21%2 $159m $88m Strategic Pathways delivering NOI pre EOL and Provisions – 2H24 growth
Slide 7: 13% increase in normalised cash EPS
13% increase in normalised cash EPS1 Creating shareholder value via three distinct, clearly defined and well-established drivers for earnings per share growth Cash EPS growth Strategic Capital ◼ Normalised EPS1 Accelerate Pathways Management ◼ Elevated EOL performance2 36.5c 33.4c Driving growth in
Slide 8: Strategic Pathways – FY24 highlights
Strategic Pathways – FY24 highlights Good momentum maintained across the three target markets of Strategic Pathways Corporate AU & NZ Small Fleets2 Novated • $482m1 NBW in FY24 – up 20% on pcp • Record AU NBW in FY24 of $47m – up 41% on pcp • Record NBW in FY24 of $331m – up 36% on pcp • New custome
Slide 9: Accelerate
Accelerate Business transformation program that aims to leverage the scale created by Strategic Pathways to maximise profitability Simplified technology stack Standardised operational processes One go-to-market brand ✓ Moving from 2 operational systems (ERPs) ✓ Greater economies of scale ✓ Consolida
Slide 10: Capital management
Capital management 1H25 buy-back of $30m announced representing 65% of 2H24 NPATA Cumulative buy-back1 Comments • Share buy-back of $29.4m completed in 2H24, reflecting the buy-back of $27.0m declared with the 1H24 results and an additional $2.4m bought back in September 2024 • 1H25 share buy-back o
Slide 11: FY24 Environmental, Governance and Social highlights
FY24 Environmental, Governance and Social highlights Proudly supporting the communities in which we live and work Achieved re-certification Citation for the third 1 of the top 5 Endorsed 6.1% annual reduction in across all our operations consecutive year Employers for paid time off overall gender pa
Slide 12: 2. Financial result
2. Financial result James Owens Chief Financial Officer
Slide 13: New business writings
New business writings NBW of $924m up 21%1 as FleetPartners executes on Strategic Pathways, supported by improved supply New Business Writings Comments ◼ Sale and lease-back • Strategic Pathways has delivered NBW growth of 21%1 in FY24, supported by $8m continued improvement in new vehicle supply $1
Slide 14: Asset growth funded on balance sheet
Asset growth funded on balance sheet AUMOF up 11% as a result of strong NBW performance, with growth funded primarily via the balance sheet1 Assets under management or financed Comments AUMOF - Balance sheet1 $2,258m • AUMOF is the key driver of net operating income pre EOL and provisions, AUMOF - P
Slide 15: NOI pre EOL and provisions margin
NOI pre EOL and provisions margin Margins continue to normalise as expected, as COVID-19 tailwinds dissipate – with additional impacts from strong NBW growth NOI pre EOL and provisions margin1 Comments 7.66% 8.02% 7.74% • Margins continue to normalise in line with expectations due to: 7.41% 6.83% •
Slide 16: Pro forma NOI pre EOL and provisions
Pro forma NOI pre EOL and provisions Recent growth in NBW will take time to fully compound in AUMOF, resulting in future upside to NOI pre EOL and provisions Illustrative AUMOF build as a multiple of NBW1 Comments Month 46 3.0x • Leases have an average term of c.46 months, meaning NBW in a year gene
Slide 17: Income statement
Income statement NOI pre EOL and provisions up 5% driven by AUMOF growth $m FY24 FY231 PCP (%) Comments 1 Net operating income pre EOL and provisions 158.7 150.8 5% • NOI pre EOL & provisions increased by 5%, driven by growth in average AUMOF End of lease income 70.6 73.7 (4)% of 10%, partially offs
Slide 18: End of lease income
End of lease income End of lease income remains elevated, supported by increased disposal volumes, while profit per unit gradually trends down Vehicles sold & end of lease income per vehicle1 Comments $8,300 • Used vehicle prices remain elevated, but have reduced from the peak in Feb-22 EOL charges
Slide 19: Portfolio credit quality remains high
Portfolio credit quality remains high Portfolio continues to perform strongly despite economic landscape in New Zealand, with minimal exposure to higher risk sectors 90+ day arrears1 (bps) Portfolio exposure Building construction, food services and retail 5% Other Industries 48 44 37 95% FPR Sep-24
Slide 20: Funding and liquidity
Funding and liquidity Successful issuance of Australian and New Zealand ABS and extension of warehouses provides capacity to support growth plans Comments Warehouse capacity and funding mix at Sep-241 Undrawn Warehouse • Warehouse funding capability since 2007 and regular ABS issuer since 2010, with
Slide 21: Cash generation
Cash generation Strong organic cash generation supported by continuation of elevated EOL and cash tax shield in Australia $m FY24 $m FY24 Operating cash flow Net cash flow Customer receipts 906.6 Add-back capex 18.5 Payment to suppliers & employees (435.5) Add-back change in corporate debt 5.0 Incom
Slide 22: 3. Operating segment performance
3. Operating segment performance James Owens Chief Financial Officer
Slide 23: Fleet Australia
Fleet Australia Strong NBW drives asset growth as vehicle supply returns and order pipeline unwinds New business writings Order pipeline1 AUMOF ◼ AUMOF – Balance sheet2 ◼ AUMOF – P&A $1,092m 2.6x $1,016m $1,041m $8m 2.5x $1,004m $994m 2.3x 2.3x 2.2x $477m $24m $4m $474m 1.7x $507m $492m $485m $211m
Slide 24: Fleet New Zealand
Fleet New Zealand NBW remains robust, supported by order pipeline unwind as economy softened – asset base continues to grow New business writings Order pipeline1 AUMOF ◼ AUMOF – Balance sheet2 ◼ AUMOF – P&A 5.1x NZ$581m 4.8x NZ$554m NZ$571m 4.5x NZ$506m NZ$522m NZ$1m NZ$13m NZ$1m NZ$4m NZ$24m NZ$18m
Slide 25: Novated
Novated NBW continues to grow, supported by EVs and a drawdown of the pipeline – asset base continues strong growth New business writings1 Order pipeline2 AUMOF3 ◼ AUMOF – Balance sheet4 ◼ AUMOF – P&A $167m $164m $151m $632m 4.9x 4.6x $572m $82m $503m 3.8x 3.8x $103m 3.7x $451m $453m $94m $92m $123m
Slide 26: 4. Outlook
4. Outlook Damien Berrell Chief Executive Officer and Managing Director
Slide 27: FY25 expectation analysis
FY25 expectation analysis NOI pre EOL and provisions margin normalisation and funding transition expected to partially offset growth in AUMOF FY25 FY24A Comments (expectation) • Growth in average AUMOF partially offset by reduction in management fees as extensions reduce to more typical levels NOI p
Slide 28: Operating environment and strategic priorities
Operating environment and strategic priorities FleetPartners is continuing to execute on its clear strategy to pursue long-term value creation Operating environment Strategic priorities FleetPartners today • Customer demand continues to be strong across Fleet AU • Drive growth with Strategic Pathway
Slide 29: Questions
Questions FP FleetPartners
Slide 30: 5. Appendices
5. Appendices FP FleetPartners
Slide 31: Electric Vehicles – uptake by segment
Electric Vehicles – uptake by segment Acceptance and uptake continues to be strongest in Novated, with the Corporate transition still at early stages Novated NBW Fleet Australia NBW Fleet New Zealand NBW 61.2 53.3 80% 55.8 20% 20% 60.0 60.0 52.4 60.0 46.3 60% 15% 42.1 15% 40.0 40.0 40.0 40% 10% 10%
Slide 32: Electric Vehicles – state of play
Electric Vehicles – state of play A broad range of factors influence customer adoption of EVs Sustainability reporting Barriers to EV adoption EV residual values EV revenue model • Sustainability standard IFRS S2 came into ◔ Fit-for-purpose options • Too early and too few data points to • Too early
Slide 33: Operating segment results
Operating segment results Fleet Australia FY24 FY23 Var % Fleet New Zealand FY24 FY23 Var % ($m, unless stated) ($m, unless stated) NOI before EOL & Impairments 91.7 93.0 (1)% NOI before EOL & Impairments 35.7 37.2 (4)% End of lease 50.4 54.2 (7)% End of lease 18.5 18.3 1% Impairments (2.8) (0.4) nm
Slide 34: Balance sheet
Balance sheet Balance sheet remains strong, with disciplined capital management $m 30 Sep 2024 30 Sep 2023 % Comments Assets Cash and cash equivalents 91.3 87.6 4% • Cash driven by strong organic cash generation, offset by $59.4m share buy-back Restricted cash and cash equivalents 182.7 159.5 15% an
Slide 35: Thank you
Thank you fleetpartners.com.au