FLEETPARTNERS GROUP LIMITED — Earnings Release 2018

Nov 13, 2018

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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

14 November 2018

Market Announcements Office Australia Securities Exchange 20 Bridge Street Sydney NSW 2000

ECLIPX GROUP DELIVERS GROWTH ACROSS ALL SEGMENTS

Eclipx Group Limited (ASX: ECX) today confirms its Net Operating Income (NOI) of $325.3 million (+27% on FY17) and Net Profit After Tax & Amortisation (NPATA) of $78.1 million (+14% on FY17) for the year to 30 September 2018.

The increase in NOI reflects strong growth in Fleet and Commercial underpinned by continued solid endof-lease (EOL) profit performance and a full year contribution from GraysOnline, offsetting some softness in the Right2Drive and CarLoans consumer businesses.

The higher NPATA reflects growth across all segments and is in line with revised guidance provided on 6 August.

FY18 highlights include:

• Net Operating Income (NOI) up 27% to $325.3 million

• Group Net Profit After Tax & Amortisation (NPATA) up 14% to $78.1 million

• Fleet and Commercial (AU and NZ) NPATA $53.7m before NZ SME (+5%)

• o GraysOnline NPATA $10.4 million (+30% pro forma)

• Right2Drive (R2D) NPATA $8.4 million (+5%)

• Total assets under management or finance +9% to $2.43 billion

• New business writings +11% to $1.1 billion

• Cash earnings per share down 2% to 24.7c

• Total dividend per share up 5% (0.75c) to 16.0c, fully franked

• Final dividend per share of 8.0c, fully franked

• Proposed merger with McMillan Shakespeare (announced 8 November)

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“Despite some headwinds in our GraysOnline and Right2Drive businesses, I am very pleased to be able to report another period of solid growth in overall business volumes and profits,” said Doc Klotz, Eclipx Group Chief Executive Officer and Managing Director.

“We continue to grow market share in fleet with strong new business wins, recommitments from existing customers whilst leveraging GraysOnline to sell our used fleet vehicles and boost our end of lease results,” Mr Klotz added.

In response to changing market dynamics Eclipx has repositioned its consumer business to focus on novated leasing and new car buying and trade-in services.

“Whilst R2D recorded 8% growth in hire income during the year its net operating income was impacted by lower than expected fleet utilisation. Eclipx has restructured and repositioned R2D during the latter half of FY18 to provide diversification of hires from the consumer and corporate markets, reduced overheads and improved fleet utilisation.”

“GraysOnline experienced strong sales growth (+23% on pro-forma FY17) in its auto division and remains well placed to benefit when the insolvency markets recover and asset turnover increases in the industrial market segment.”

Diversified funding profile

At 30 September 2018, Eclipx had $349 million in available financing resources for growth having completed an A$65 million US private placement as part of its corporate debt program. The placement was for a 7-year term with a fixed rate coupon, delivered in AUD hedged with no exchange or interest rate risk.

“Treasury is a core competency, providing diverse and competitive funding platform. This enables Eclipx to leverage warehouses, ABS and third party to provide us with funding certainty, head room for growth and a clear point of differentiation,” says Mr Klotz.

Proposed merger with McMillan Shakespeare Limited

Please refer to the ASX announcement dated 8 November 2018 for further details of the proposed merger between Eclipx and McMillan Shakespeare Limited.

Summary and Outlook – top and bottom line growth expected in each business segment

“We have consistently demonstrated our ability to leverage our core competencies of risk management, treasury and the use of online technology to provide innovative solutions to customers,” said Mr Klotz.

“We are well positioned with a strong pipeline of blue-chip new business opportunities and an array of alliances to utilise existing capabilities across a large customer base to achieve top and bottom line growth in each business segment.”

ENDS

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Investor enquiries

Eclipx Group:

Head of Business Strategy and Investor Relations – Jason Muhs Jason.muhs@eclipx.com Deputy CEO & Chief Financial Officer – Garry McLennan: garry.mclennan@eclipx.com

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 2018 Eclipx managed or financed 117,060 vehicles with A$2.4 billion in assets under management. It operates in Australia and New Zealand under nine primary brand names, “FleetPartners”, “FleetPlus”, “CarLoans.com.au”, “Georgie”, “areyouselling.com.au”, “FleetChoice”, “AutoSelect”, “Right2Drive” and “GraysOnline”.

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