Mcmillan Shakespeare Limited · ASX:MMS
Mcmillan Shakespeare — H1 2025 Earnings Presentation
26 slides from Mcmillan Shakespeare's earnings presentation, Feb 27, 2025
Slide 1: McMillan Shakespeare Limited 1H FY25 Results Presentation
27 February 2025 Manager Company Announcements ASX Limited 20 Bridge Street SYDNEY NSW 2000 By E-lodgement McMillan Shakespeare Limited 1H FY25 Results Presentation This release contains an announcement to the Australian Securities Exchange Limited (ASX) regarding the FY25 Interim Results Investor P
Slide 2: MMS 1HFY25 Results
MMS 1HFY25 Results Rob De Luca, CEO and Managing Director Paul Varro, CFO Thursday 27th February 2025
Slide 3: Disclaimer and important information
Disclaimer and important information Disclaimer and important notice This presentation has been prepared by McMillan Shakespeare Limited ABN 74 107 233 983 (“MMS”). It contains summary information about MMS and its subsidiaries and their activities current as at the date of this presentation. The pr
Slide 4: Acknowledgement of Traditional Owners
We acknowledge the Traditional Owners of the lands on which we meet today and pay our respects to Elders past and present. 3
Slide 5: 1HFY25 Overview
1HFY25 Overview Revenue up 2.4%i, with growth across all segments Operating expenses increased to drive customer growth and ongoing efficiencies Simply Stronger Program on track. Benefits realisation to increase in 2HFY25 Onboard Finance continues to scale, FY25 will be the last year of Normalisatio
Slide 6: 1HFY25 Overview
1HFY25 Overview 5
Slide 7: MMS unparalleled business model
MMS unparalleled business model Trusted partner with favourable financial characteristics, making a positive impact MMS Trusted partner, providing solutions in making matters simple GRS AMS PSS Favourable High Social and Group Remuneration Services Asset Management Services Plan and Support Services
Slide 8: Simply Stronger Program
Simply Stronger Program On track. 1HFY25 Capex $12m, 2HFY25 Capex ~$1m. Benefits realisation to increase in 2HFY25. 2024 2025 Full benefits PSS telephony Employer Digital PSS invoice Oly soft AMS Green Digital enablement GRS New Oly Employer realisation platform Connect signatures automation Fleet p
Slide 9: 1HFY25 Financial snapshot
1HFY25 Financial snapshot Sustained revenue growth, operating expenses increased to drive customer growth and ongoing efficiencies Continuing operations ($m) +2.4% Normalised ($m) 261.1 267.4 Normalised UNPATA Statutory NPAT Revenue 241.6 Sustained (6.7%) +3.4% Revenue 53.2 49.6 45.2 Growth 43.8 1HF
Slide 10: Segment Performance
Segment Performance AN
Slide 11: GRS: Performance summary
GRS: Performance summary Revenue growth, expenses increased to drive customer growth and ongoing efficiencies. 1HFY25 non-recurring cost of $4.4m. Normalised ($m) Revenue Novated lease sales 6.8% on pcp from order momentum, faster +0.7% Revenue growth excl. order-to-sale conversion and delivery
Slide 12: GRS: Operating performance
GRS: Operating performance Customer focus, strong novated lease value proposition and Oly supporting GRS to outperform the new car sales market Salary packages (‘000) Foundations for growth momentum into 2HFY25 (5.9%) New clients Oly employer Expanding 404.8 14.8 380.9 reach partnerships (38.7) Grow
Slide 13: GRS: Onboard Finance
GRS: Onboard Finance Successful completion of a $300m Australian private placement in Nov-24. FY25 will be the last year of the Normalisation Growth in receivables providing future recurring Onboard Finance to contribute incremental income stream earnings post the Normalisation period Receivables ba
Slide 14: AMS: Performance summary
AMS: Performance summary Growth in Written Down Value (WDV) and financed assets. Investments in enhanced digital experience and business development resources Continuing operations ($m) Growth in WDV 8.8% and financed assets 2.8% on pcp, Revenue +2.4% supporting our customers in replacement of f
Slide 15: PSS: Performance summary
PSS: Performance summary Customer focus with operating leverage from automation, while supporting scheme integrity and sustainability ($m) +6.0% PSS Customers 10.1% on pcp Continued increase in plan duration Revenue reducing renewal frequency Customers (#) 26.2 27.8 Plans by Durationi (%) 23.4 +10
Slide 16: Financials
Financials 15
Slide 17: Normalised Financial Overview
Financial Overview ($m) 1HFY25 1HFY24 Change Change % Continuing operations Revenue 267.4 261.1 6.3 2.4% Investing for customer growth and ongoing efficiencies Normalised Expenses 186.6 174.1 (12.5) (7.2%) EBITDA 1HFY25 Normalised expense walk $m 80.8 86.9 (6.1) (7.1%) D&A, Interest and taxi 31.1 33
Slide 18: Balance Sheet and Funding
Balance Sheet and Funding Strong financial position. Completion of unrated $300m private placement of amortising novated lease receivables. ($m) Balance Sheet 31-Dec-24 30-Jun-24 Key Metrics Cash at bank 146.4 153.0 Net debt to EBITDAii Net cash (excl. fleet & warehouse debt)iii Client trust funds (
Slide 19: 2HFY25 Outlook
2HFY25 Outlook 18
Slide 20: 2HFY25 Outlook
2HFY25 Outlook • Normalised UNPATA for 2HFY25 expected to be higher than 1HFY25, benefiting from: • Novated sales growth from order momentum, Oly and net new client wins. • Efficiencies from Simply Stronger and a reduction in non-recurring costs. • Onboard Finance Normalisation adjustment of ~$(8m)
Slide 21: Appendix
Appendix 20
Slide 22: Endnotes - definitions
Endnotes - definitions Continuing operations. All financial information and metrics in this presentation are from continuing operations only unless otherwise stated. Discontinued operations in 1HFY24 relates to previously announced divestments of Aggregation and UK businesses. Normalised refers to a
Slide 23: Cash flow
Cash flow Investing for sustainable growth with increased capital expenditure in period reflecting Simply Stronger initiatives with program to complete in 2HFY25. UNPATA cash conversion was 88%. ($m) Cash flow Summary 1HFY25 1HFY24 Normalised UNPATA 49.6 53.2 • FY24 final dividend 100% payout ratio
Slide 24: Funding details
Funding details • Unrated ~$300m amortising private placement securitisation of novated receivables completed. • Warehouse facilities reduced to ~$223m in Jan-25 • Revolving Asset Management facilities stable Local Currency Australian Dollars ($m) Currency Facility size Facility size Amount drawn Am
Slide 25: Reconciliation between NPAT and Normalised UNPATA Continuing operations
Reconciliation between NPAT and Normalised UNPATA Continuing operations ($m) 1HFY25 1HFY24 % Statutory NPAT 45.2 37.6 20.3% Discontinued operations - 6.2 (100%) Statutory NPAT Continuing operations 45.2 43.8 3.4% Amortisation of intangible assets acquired on business combination 0.1 0.2 (18.1%) UNPA
Slide 26: Key Dates
Key Dates Interim Results Release Thursday 27th February 2025 Ex-dividend Thursday 13th March 2025 Record date Friday 14th March 2025 Payment date Friday 28th March 2025 Finali Results Release Thursday 28th August 2025 Ex-dividend Thursday 11th September 2025 Record date Friday 12th September 2025 P