Fleetpartners Group Limited · ASX:FPR
Fleetpartners — H1 2021 Earnings Presentation
34 slides from Fleetpartners's earnings presentation, May 6, 2021
Slide 1: Eclipx Group 1H21 Results Presentation Materials (ASX Release)
Level 6, 601 Pacific Highway St Leonards NSW 2065 W www.eclipx.com Eclipx Group Limited | ABN: 85 131 557 901 6 May 2021 ASX Release Market Announcements Office Australian Securities Exchange 20 Bridge Street Sydney NSW 2000 ECLIPX GROUP 1H21 RESULTS PRESENTATION MATERIALS Please see attached the pr
Slide 2: Eclipx Group 1H21 results presentation
Eclipx Group 1H21 results presentation 6 May 2021 eclipX
Slide 3: Legal disclaimer
-- Legal disclaimer - This Presentation contains summary information about Eclipx Group Limited (Eclipx) and its subsidiaries and their Such forward-looking statements are based on numerous assumptions regarding Eclipx's present and future business activities current as at the date shown on the fron
Slide 4: 1H21 results agenda
1H21 results agenda & Performance highlights & Financial result Bi Risk management oy Summary & outlook
Slide 5: Performance highlights
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Slide 6: 1H21 performance highlights
1H21 performance highlights 341 March 2021 1H21A 1H20A4 = Var +/(-) (ASm unless specified) 2 | 107% Income statement —— End oblaase NOI (pre-provisions & EOL)" 72.6 73.4 (1%) AEST EOL 321 18.5 107% NOI 105.9 86.8 22% EBITDA? 66.5 46.6 43% NPATA 393 223 77% Cash conversion Cash conversion 157% 158% n
Slide 7: EBITDA performance
-- - EBITDA performance EBITDA1 growth of 43% in 1H21, supported by stable NOi pre-provisions and elevated end of lease income Opex remains in-line with expectations outlined on slide 21 $16.6m $0.8m $66.Sm 1H20 provisions including COVID overlay, not repeating in 1H21 Non-core stranded costs - $48.
Slide 8: NPATA performance
-- NPATA - performance 1 H21 NPATA of $39.3m, up 77% on 1 H20 Reduced property EBITDA growth footprint per slide 6 $2.9m ($7.1m) $1.1m $0.Sm ($0.2m) $19.9m $39.3m Repayment of corporate debt driving lower Non-core stranded costs Lower depreciation interest costs related to reduced property footprint
Slide 9: Corporate debt
-- - Corporate debt A 50%, reduction in gross corporate debt compared to 1H20-net debt to EBITDA at 0.49x 31 March 2021: • Significant reductions in gross debt given organic capital $350m $64m generation • $113m of gross debt • $59m of unrestricted cash • $54m of net debt $286m $61m • Strong covenan
Slide 10: Capital management - on-market buy-back to commence in 2H21
-- - Capital management-on-market buy-back to commence in 2H21 The combination of a strengthened debt position, a better liquidity profile and a stronger overall performance has enabled Eclipx to accelerate its capital management strategy, six months ahead of internal targets Corporate Debt-De-geari
Slide 11: Financial result
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Slide 12: New business writings
--- New business writings Despite global vehicle supply disruption chain constraining vehicle deliveries, the Group generated 11% half on half NBW growth—lower deliveries and strong sales activity in the half have increased the pipeline to all-time highs Corporate & SME new business writings (NBW) –
Slide 13: Assets and vehicles under management
-- Assets and vehicles under management - While the customer pipeline is at all-time highs, vehicle supply constraints have led to lower NBW and assets under management-despite a 7% reduction in AUMOF, NOi pre-EOL has remained flat Assets under management or financed (AUMOF; $bn) Comments ■ Financed
Slide 14: Financial performance
--- Financial performance Strong performance across NOI and end of lease income, coupled with disciplined cost management has resulted in record levels of EBITDA Financial performance Comments Net operating income pre EOL up 4% on pcp driven by: Net operating • Net margin expansion and lower provisi
Slide 15: Income statement
--- Income statement The Group delivered NPATA of $39.3m, up 77% pcp $ million 1H21 1H20 1H20 PCP (%) (Core standalone1) (Core) (Core standalone) Net operating income (pre end of lease income and impairments) 72.6 73.4 73.4 (1%) Comments End of lease income 32.1 15.5 15.5 107% • 22% growth in NOI, 4
Slide 16: Group balance sheet
--- Group balance sheet Successful execution of the Simplification Plan has strengthened the balance sheet and enabled the acceleration of capital returns to shareholders $ million 31 Mar 21 30 Sept 20 Prior period (%) Assets Comments Cash and cash equivalents 58.6 55.8 5% • Transformation into a si
Slide 17: Cash generation
-- - Cash generation Continued strong organic capital generation supporting Eclipx's repayment of corporate debt and return of capital to shareholders-Cash conversion was 157%in1H21 C..,_______________c_a_sh_f_lo_w_ _ _ _ _ _ _ _ _ _ _ _ _ _ _.,) Organic cash generation and cash conversion $m $m 1H2
Slide 18: Risk management
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Slide 19: End of lease income up 107% pcp
-- End of lease income up 107% pep - End of lease income was up 107%, driven by elevated used car prices as a result of new car supply shortages-EGL income expected to return to 1H20/2H 19 levels when the supply of new vehicles is restored Disposed vehicles and end of lease income per vehicle Commen
Slide 20: Portfolio credit risk remains low
- .:. Portfolio credit risk remains low The Group remains well placed to face any further macro uncertainty given the quality of the portfolio Comments Provisioning (% of operating leases, finance leases & trade receivables on balance sheet) • 77% of the exposure of the top 20 customers is investmen
Slide 21: Platform endorsement by recent Australian ABS issuance
-- - Platform endorsement by recent Australian ABS issuance ECX achieved the tightest pricing in the Australian ABS markets since the GFC, while further diversifying its portfolio and credit investor base ( _ _ _ _ _ _ _ _ _ _ _ _ _A_s_s_e_t_f_u_n_d_in_g_sp_l_it_ _ _ _ _ _ _ _ _ _ _ _ _) Comments ✓
Slide 22: 1H21 update - expectation analysis
--- 1H21 update—expectation analysis 2H21 FY21 1H21A (expectation) (expectation) Cash item 1H21 update • No guidance provided, but 1H21 has been predictable / consistent with NOI pre end of lease income & provisions $72.6m ✓ expectations • NBW growth of 11% half on half, and order pipeline at all-ti
Slide 23: Summary & outlook
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Slide 24: Strategic Pathways
-- - Strategic Pathways Strategic Pathways-implementation is on track ~880 - 900k employees Novated Eligible employees across ECX existing customers (ECXTAM) ~1.3m ~2.1m vehicles vehicles TAM TAM eclf.MnJK~ ., GROUP FleetPartners ~ fleetplus I) FleetCholce
Slide 25: Digital engagement metrics
73% 7m5s 140% 6mls lm30s VISITOR TO ACCOUNT AVERAGE TIME ON SITE AVERAGE TIME ON SITE TURN AROUND TIME YOY USER INCREASE CONVERTED
Slide 26: Revamped content-based marketing
✓ Revamped content-based marketing ✓ Attracted industry leading sales personnel ✓ Added sales headcount to SME & Novated ✓ Restructured sales team and incentives to drive aligned financial outcomes ✓ Refined our residual underwriting capabilities for both electric and hydrogen vehicles
Slide 27: FY21 outlook
- .:. FY21 outlook Supply disruption Platform well positioned Impacting vehicle deliveries (NBW), but customer • Clean and simple FMO, post Simplification order pipeline at all-time highs and building • 1H21 NPATA up 77% on pep EOL expected to remain elevated while new vehicle • 157% cash conversion
Slide 28: Questions
Questions
Slide 29: Appendix
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Slide 30: Business unit performance
-- - Business unit performance NEW SEGMENTS - 1 H21 Consumer (CU Divested I Non- (Sm, unless stated) Fleet AU Novated AU Fl eet NZ Core R2D Georgie) Core Group NOi before EOL & Impairments 42.0 11.5 19.0 72.6 End of lease 21.2 0.7 10.2 32.1 Impairments 0.3 (0.0) 0.9, 1.2 I NOi 63.6 12.1 30.2 105.9 O
Slide 31: Group Income statement
-- - Group Income statement $ million 1H21 1H20 PCP(%) Net operating income (pre end of lease income and impairments) 72.6 81.8 (11%) End of lease income 32.1 14.3 124% Fleet and credit provisions 1.2 (1.8) 169% Net operating income 105.9 94.4 12% Total operating expenses (394) (57.2) 31% EBITDA 66.
Slide 32: Operating expense reconciliation
-- - Operating expense reconciliation $ million 1H20 FY20 1H21 FY21 (expectation) Operating expenses (38.4) (78.7) (39.4) (79.6) Depreciation and interest on leases (MSB 16) (2.7) (5.3) (2.2) (4.4) Operating expenses (pre MSB16) (41.1) (83.9) (41.6) (84.0) Stranded costs (pre MSB 16) (2.4) (38) Stra
Slide 33: Illustrative financial profile for the unwind of supply disruption
-- - Illustrative financial profile for the unwind of supply disruption As new vehicle supply is restored, we expect a return to more normal NBW levels (expected to be accelerated by Strategic Pathways)-this in turn will generate mostly annuity-style NOi from AUMOF, while EOL is expected to return t
Slide 34: END