McMillan Shakespeare : MMS Group UK Update

MMS Group

UK Update

March 2017

McMillanShakespeareGroup

Financial performance

Asset Management - United Kingdom Financial performance

2

Financial performance

Asset Management - United Kingdom

Financial Performance

$m	1H17	1H16	Variance
Revenue	13.8	10.4	32.9%
Lease and vehicle expenses	4.2	0.6	>100.0%
Employee expenses	3.9	3.4	15.7%
Property and other expenses1	3.5	5.2	(32.6%)
EBITDA	2.2	1.2	89.4%
EBITDA margin	16.1%	11.3%	20.5%
Depreciation	0.3	0.2
Amortisation of intangibles	0.4	0.3	30.0%
Tax	0.4	0.3	36.1%
NPAT	1.2	0.4	>100.0%
NPAT margin	8.5%	3.5%
UNPATA	1.5	0.6	>100.0%
UNPATA margin	10.9%	5.9%
Key metrics	16,400	15,100	8.6%
Assets managed (units)
Assets written down value ($m)2	137.7	125.9	9.4%
Net amount financed ($m)	197.1	114.1	72.8%
- On balance sheet ($m)3	42.0	60.2	(30.2%)
- Off balance sheet ($m)	155.1	53.9	>100.0%
Employees (FTE's)	185	132	39.8%

Commentary

Broker aggregation strategy progressing and enhanced through acquisitions of EVC (t/a Eurodrive Motor Finance) and Capex in December and January respectively

Sterling revaluation impacted first half UNPATA by $400,000. On a like for like currency basis, UNPATA increase was 217% over the prior half

Review of car salary sacrifice by HMRC announced 10 August 2016 impacted the delivery of vehicles to Lifestyle Lease customer programs. HMRC clarified rules on 23 November 2016 (effective from 6 April 2017) and sales and marketing activity recommenced

Outlook

Eurodrive and Capex acquisitions enhance the regional presence and product offerings of group. Further growth into other key UK regions via a stronger broker presence

Deliver first Lifestyle Lease vehicles to customers post 6 April 2017

1. Property and other expenses includes the share of the UK JV loss of $0.7m (1H16: $0.6m)

2. On MMS balance sheet

3. Included in assets written down value

Financial performance

Asset Management - United Kingdom

Operating Metrics

Assets written down value ($m)1 1H17 WDV breakdown

10.0 38.6

125.9137.7

11%

10%

13%

7%

$137.7m

23%

36%

■ Services

■ Transportation and communication

■ Finance

■ Manufacturing

■ Wholesale and trade

■ Other

1H14 1H15 1H16 1H17

Net amount financed ($m)

1H17 Revenue breakdown

17.0 31.6

114.1

197.1

48% $13.8m

23%

26%

■ Principal and interest

■ Other vehicle related services

■ Brokerage commission income

■ Other (3%)

1H14 1H15 1H16 1H17

1 An additional $27.4m was moved off balance sheet in FY16