Mcmillan Shakespeare Limited · ASX:MMS

Mcmillan Shakespeare — Shareholder Meeting (October 2014)

21 slides from Mcmillan Shakespeare's shareholder meeting presentation, Oct 29, 2014

1. Slide 1: MMS Group Annual General Meeting

   For personal use only MMS Group Annual General Meeting October 2014

2. Slide 2: FY14 Financial highlights

   MMS Group Annual General Meeting 2 For personal use only FY14 Financial highlights  Business has fully recovered from the 16 July, 2013 proposed changes to novated leasing benefits and returned to growth:  Group Remuneration Services (GRS) 2HFY14 revenue grew 8% on PCP (10% ex interest on the floa

3. Slide 3: FY14 Financial highlights (cont'd)

   MMS Group Annual General Meeting 3 For personal use only FY14 Financial highlights (cont’d)  Asset Management NPAT $13.6m. Result includes UK JV losses, new system depreciation, lease extensions and the resultant impact on end-of- life (remarketing) profits.  Final dividend(1) of 31cps; total FY14

4. Slide 4: Historical earnings and dividends per share

   MMS Group Annual General Meeting 4 For personal use only Historical earnings and dividends per share Normalised earnings per share Dividends per share 90.0 60.0 80.0 Dividend 9 year CAGR 33% 50.0 52.0 70.0 47.0 Normalised Basic EPS 9-year CAGR 28% 60.0 40.0 42.0 cents cents 38.0 50.0 30.0 40.0 30.0

5. Slide 5: Normalised NPAT Performance

   MMS Group Annual General Meeting 5 For personal use only Normalised NPAT Performance (1) 70 60 62.2 NPAT 9 year CAGR 30% 55.0 50 54.3 40 43.5 $m 30 27.9 20 20.5 17.4 10 13.2 11.3 5.2 0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Note 1: Normalised NPAT excludes the profit recognised on acquisi

6. Slide 6: Definition of Segments

   MMS Group Annual General Meeting 6 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 not provi

7. Slide 7: Group Remuneration Services FY14 Financial Performance

   MMS Group Annual General Meeting 7 For personal use only Group Remuneration Services FY14 Financial Performance 2014 2013 % $000 $000 Inc Comment Segment revenue 157,247 155,855 1% (Note 1: ex float interest growth of 2%) Expenses Employee expenses 67,138 62,408 8% Depn and amort of PPE and software

8. Slide 8: Group Remuneration Services 2HFY14 Financial Performance

   MMS Group Annual General Meeting 8 For personal use only Group Remuneration Services 2HFY14 Financial Performance 2HFY14 2HFY13 % $000 $000 Inc Segment revenue 86,699 80,098 8% (Note 1: ex float interest 10%) Expenses Employee expenses 32,482 31,516 3% Depn and amort of PPE and software 1,884 1,675

9. Slide 9: Group Remuneration Services Financial Performance (cont'd)

   MMS Group Annual General Meeting 9 For personal use only Group Remuneration Services Financial Performance (cont’d) FY05 – FY14 160 100% 156 157 140 90% Revenue 9-year CAGR 18% PBT 9-year CAGR 23% 137 80% 120 70% 100 112 60% $m 80 92 50% 76 40% 60 66 67 57 60 30% 54 40 48 45 20% 36 35 20 24 28 10% 9

10. Slide 10: Group Remuneration Services Financial Performance (cont'd)

    MMS Group Annual General Meeting 10 For personal use only Group Remuneration Services Financial Performance (cont’d) 2HFY05 – 2HFY14 100 100% 90% 80 87 80% 80 Revenue 9-year CAGR 18% 73 70% PBT 9-year CAGR 26% 60 60% $m 58 50% 49 40 40% 39 40 34 35 30% 31 28 20 25 24 20% 20 20 5 13 15 10% 9 10 0 0%

11. Slide 11: Competitive Strengths and Performance Indices

    MMS Group Annual General Meeting 11 For personal use only Competitive Strengths and Performance Indices MMS Customer Satisfaction Index Group Remuneration Services Productivity Index (7/08 = 100) [Rolling 3 month Revenue (ex SP Interest) / FTE] December 2008 = 100 170 300 165 160 155 250 150 145 200

12. Slide 12: Asset Management (AM) Financial Performance

    MMS Group Annual General Meeting 12 For personal use only Asset Management (AM) Financial Performance Group AM CLM & UK AM Australia AM Group AM Group AM Australia AM 2014 2014 2014 2013 % % $000 $000 $000 $000 Inc Inc Segment revenue 188,069 9,874 178,195 171,962 9% 4% (1) Expenses Depreciation of

13. Slide 13: Asset Management Commentary

    MMS Group Annual General Meeting 13 For personal use only Asset Management Commentary  Assets under finance and management grew by $27m or 9% on PCP in a low growth economic environment and a very competitive market.  Implemented new asset management system on time and on budget – this has improve

14. Slide 14: Asset Management Commentary (cont'd)

    MMS Group Annual General Meeting 14 For personal use only Asset Management Commentary (cont’d)  Highly competitive environment – NIM under pressure however new funding lines have reduced cost of funds.  16 July, 2013 (Proposed FBT changes) caused considerable confusion in respect of tool of trade

15. Slide 15: Asset Management Commentary (cont'd)

    MMS Group Annual General Meeting 15 For personal use only Asset Management Commentary (cont’d)  Uncertain economic conditions meant significant number of lease extensions rather than investing in new assets i.e. fewer cars returning for remarketing; lowers book growth and remarketing revenue and re

16. Slide 16: End of lease profit

    MMS Group Annual General Meeting 16 For personal use only End of lease profit End of lease profit - FY11 base index = 100 120 111 100 100 96 80 81 Index 60 40 20 0 FY11 FY12 FY13 FY14 End of lease profit

17. Slide 17: Asset Management Commentary (cont'd)

    MMS Group Annual General Meeting 17 For personal use only Asset Management Commentary (cont’d)  CLM (UK) acquired for $A14m ($A12m net of cash acquired) in October 2013.  The UK businesses originated £22m of assets.  Commenced funding in the UK.  Car salary sacrifice product approved and will be

18. Slide 18: Fleet Assets WDV

    MMS Group Annual General Meeting 18 For personal use only Fleet Assets WDV 400 Growth 8.8% 350 Growth 17.2% 334 300 307 Growth 19.1% ($m) 250 262 Growth 0.5% Growth 2.8% 200 213 214 220 150 100 50 0 Acquisition 1 April 30-Jun-10 30-Jun-11 30-Jun-12 30-Jun-13 30-Jun-14 2010

19. Slide 19: Risks and Sensitivities

    MMS Group Annual General Meeting 19 For personal use only Risks and Sensitivities  Interest rates movements (earnings on float).  Second hand car prices (remarketing earnings).  New car sales (novated lease participation).  Government austerity/redundancy programs.  Government policy developmen

20. Slide 20: Outlook

    MMS Group Annual General Meeting 20 For personal use only Outlook  FY15 should see another year of profitable growth.  UK business expected to be profitable in FY15.  Phase 2 of salary packaging systems has been delivered which will drive improved service.  Growth in assets under finance and man

21. Slide 21: McMillanShakespeareGroup Annual General Meeting 2014

    McMillanShakespeareGroup Annual General Meeting 2014

McMillan Shakespeare — Shareholder Meeting (October 2014) on 6ix