FLEETPARTNERS GROUP LIMITED — Earnings Release 2017

Nov 7, 2017

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Level 32, 1 O’Connell Street Sydney NSW 2000

W www.eclipx.com

Eclipx Group Limited | ABN: 85 131 557 901

ASX ANNOUNCEMENT

8 November 2017

ECLIPX GROUP DELIVERS ON 2017 PROFIT GUIDANCE

STRONG DOUBLE DIGIT GROWTH IN INCOME AND EARNINGS

Eclipx Group Limited (ASX: ECX) today announced strong double-digit gains in Net Operating Income (NOI), Net Profit After Tax & Amortisation (NPATA) and Cash earnings per share (Cash EPS) for the year to 30 September 2017, and provides guidance for a continuation of strong growth in FY18.

Financial highlights include:

• Net Operating Income (NOI) up 30% to $255.3 million

• Group Net Profit After Tax & Amortisation (NPATA) up 23% to $68.3 million

  • Australia Commercial Fleet (excluding GraysOnline) +10%

  • NZ Commercial Fleet +10%

  • Australia Consumer (including Right2Drive) +83%

• Cash earnings per share up 13% to 25.1c, calculated on weighted average shares on issue of 271.5 million (up 9%)

• Statutory Net Profit After Tax and Amortisation of $54.2 million, up 18%

• Dividend per share up 11% to 15.25c, including a fully franked final dividend of 7.75c payable on 19 January 2018

• Strong year-end financial position – $275 million of cash and committed undrawn credit facilities

• “I am very pleased to be able to report strong growth in profits for the third successive year since listing,” said Doc Klotz, Eclipx Group Chief Executive Officer and Managing Director.

“In FY17, assisted in part by our most recent non-fleet acquisitions, Right2Drive and GraysOnline, we delivered 23% growth in NPATA to $68.3 million, representing a 29 basis point increase in NPATA margin over assets under management to 3.2%. Total assets under management increased by 10% to $2.24 billion with an increase of $989 million in new business (+8%).

“Diversification into horizontal and vertical adjacencies and continued strong asset growth in traditional fleet businesses underpin a continuation of this momentum in FY18, and we are providing guidance for NPATA growth of 27% to 30% and 10% to 12% growth in EPS.”

Operational highlights include:

• Diversification continues into high growth adjacencies expected to contribute growing share of profit in FY18

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• GraysOnline integration is on track, with the previously communicated cost rationalisation program substantially complete and a $1 million NPATA contribution to Eclipx for the period of Eclipx ownership (11 August 2017 to 30 September 2017)

• Right2Drive delivering as expected, with over 33,000 hires in FY17 from 30 branches across Australia and New Zealand

• Traditional fleet businesses continue to grow strongly

Diversified financial structure provides stability and flexibility

“Treasury is one of our core competencies. Through a co-ordinated strategy involving securitisation warehouses, issues of asset-backed securities (ABS), and external principal and agency agreements, we achieve enhanced financial predictability as cash flows are generated and revenues recognised throughout the life of a lease,” Mr Klotz said.

In 2017, Eclipx continued to experience strong growth in warehouse and ABS funded leases to $1.5 billion. Two ABS issues were completed during the year, A$330 million in December 2016 and NZ$224 million in June 2017. Since year-end, a new ABS issue incorporating fleet, consumer auto and equipment finance receivables raised A$351 million. By continuing to diversify its funding investor base bringing new investors into all classes of notes in funding warehouses and bond issues, Eclipx has been able to achieve continued reductions in its cost of funds.

“We have the most sustainable, diverse and competitive funding platform in the market which leverages warehouses, ABS and third-party funders to provide funding certainty, headroom for growth and a clear point of differentiation,” Mr Klotz explains. “This allows us to tailor flexible and comprehensive financing solutions for our customers.”

Eclipx has $275 million in available financing resources for growth, including cash of $59 million, undrawn committed bank facilities of $216 million, as well as Principal and Agency funding agreements with 20 financiers.

Outlook – further strong growth

“Our goal at Eclipx is to be the pre-eminent high growth, customer centric, diversified financial services organisation in Australia and New Zealand, and we pursue this by relentlessly focussing on customer service while continuously investing in technology and product innovation,” Mr Klotz said.

“Our fleet business remains well positioned and, despite a competitive environment, we will continue to focus on growing our share of this important market.

“By continuing to diversify our earnings base and creating a vertically and horizontally integrated business throughout the vehicle life cycle, we have been able to consistently deliver superior returns to shareholders. Our recent Right2Drive and GraysOnline acquisitions have unique and disruptive positions in high growth markets and are leveraging our core competencies. Both businesses are performing to expectation and remain excited about their growth potential.”

Subject to unforeseen circumstances, Eclipx expects to deliver growth in NPATA of 27% to 30% in FY18, and 10% to 12% EPS growth.

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ENDS

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Investor enquiries

Eclipx Group: Deputy CEO & Chief Financial Officer — Garry McLennan +61 (0) 412 195 999

Media enquiries

Domestique: Alan Jury +61 (0) 418 833 149

About Eclipx

Eclipx Group Limited (ECX) is a leading provider of fleet, equipment leasing and management, vehicle rentals and on-line auction services to corporate, SME and consumers in Australia and corporate and SME customers in New Zealand.

As at 30 September 2017 Eclipx managed or financed 108,050 vehicles with A$2.2 billion in assets under Management. Eclipx operates in Australia and New Zealand under six primary brand names, "FleetPartners", "FleetPlus", "CarLoans.com.au", "FleetChoice", “AutoSelect”, “Right2Drive” and “GraysOnline”.

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