MCMILLAN SHAKESPEARE LIMITED — AGM Information 2016

Oct 24, 2016

MMS Group Annual General Meeting

McMillanShakespeareGroup

MMS – Annual General Meeting 2016

Overview

Financial

• Record financial result with revenue up 30% to $503m and UNPATA[1] up 25% to $87.2m vs prior year

• Full year dividend of $0.63 per share fully franked, a 21% increase over the prior year

Customer

• Increased participation rates and new business wins delivering the strongest organic growth rates within the salary packaging industry

• Number of salary packages up 8.6% and novated leases up 9.6% vs prior year

• Maintained net promoter score of 49

People

• 1,200 strong workforce across Australia, NZ and UK

• Employee engagement score of 81%

Process

• Capital light P&A funding mechanism allowing greater financing flexibility

• Financial diversification strengthened by two acquisitions in the Retail Financial Services (RFS) and Asset Management (AM) business segments

• Continue to invest in technologies and processes to drive productivity and margin growth

2

1 Underlying NPATA (UNPATA) excludes one-off payments in relation to transaction costs incurred in acquisitions and the amortisation of acquisition intangibles

MMS – Annual General Meeting 2016

Key financial metrics

Revenue ($m)

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503.2
11 year CAGR: 27.2%
11 year CAGR: 27.2%
387.3
345.3
327.9
300.6
270.5
131.0
35.6 48.2 54.1 65.8 76.0
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
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UNPATA performance ($m)

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11 year CAGR: 29.2% 87.2
11 year CAGR: 29.2% 69.6
62.2
54.3 55.9
43.5
FY05 27.9
FY05FY05
20.5
17.4
13.2
11.3
5.2
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 1 FY16
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Dividends per share (cents)

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11 year CAGR: 28.8% 63.0
11 year CAGR: 28.8%
52.0 52.0
47.0
42.0
38.0
24.0
19.0
16.5
12.5
9.5
3.9
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
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Earnings per share (cents)

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11 year CAGR: 26.5%
105.1
11 year CAGR: 26.5%
89.7
83.4
76.6 75.3
64.0
41.3
30.4
25.8
17.1 19.8
7.9
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
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3

1 FY15 UNPATA of $69.6m has been restated (was previously $70.2m) to be consistent with FY16 Note: FY14 UNPATA was negatively impacted by proposed changes to novated leasing

MMS – Annual General Meeting 2016

Financial diversification

FY15 Results

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Revenue
6%
49% $387.3m 45%
EBITDA
5%
19%
$105.1m 76%
GRS
AM
RFS
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FY16 Results

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Revenue
22%
$503.2m 37%
41%
EBITDA
16%
20% $137.4m 64%
GRS
AM
RFS
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MMS – Annual General Meeting 2016

Key operational metrics

Salary Packages (000)

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293.0
269.7
255.7
245.7
235.1
FY12 FY13 FY14 FY15 FY16
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Fleet Assets Written Down Value ($m)

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Australia 427 436
UK 113 129
334
304 320 314 307
262
214 220
FY10 FY11 FY12 FY13 FY14 FY15 FY16
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Novated Vehicles (000)

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55.8
50.9
45.8
42.7
36.9
FY12 FY13 FY14 FY15 FY16
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RFS Net Amount Financed ($m)

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936.7
855.4
Proforma FY15 [1] FY16
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5

1 Proforma FY15 represents 12 months trading of Presidian from 1 July 2014 and 11 months trading of UFS from 1 August 2014

MMS – Annual General Meeting 2016

FY17 Update

Queensland Government novated leasing contract

Announced on 10 October 2016 that RemServ had been appointed as one of eight organisations who are authorised to originate and manage novated leases for employees of the Queensland Government, effective 7 November 2016 for a period of three years with an option to extend for an additional two years (exercisable by the Queensland Government)

Market conditions

Experiencing year on year growth in new car sales with used vehicle prices being maintained at prior year levels, partially driven by record low interest rates and the removal of tariffs with China, Japan and Korea resulting in lower priced new vehicles

New business Capital light Regulatory wins funding environment MMS has secured a number Implementation of P&A MMS remains supportive of of new salary packaging / funding arrangements the regulators review of the novated leasing contracts progressing well with a practices of credit insurance including two organisations number of transactions providers resulting in in the health sector covering completed for several improved transparency, 9,000 employees select customers during Q1 clarity and consistency FY17, with discussions across the automotive on-going to expand the industry

Implementation of P&A funding arrangements progressing well with a number of transactions completed for several select customers during Q1 FY17, with discussions on-going to expand the panel of P&A financiers to complement our committed revolving facilities

MMS is continuing to understand the implications of the proposed changes, with initial modelling undertaken suggesting that the proposed changes will not have a material impact on FY17 results

6

MMS – Annual General Meeting 2016

Summary

Record profit result in FY16 with strong free cash flow:

• Segment revenue $503.2m +29.9%

• UNPATA $87.2m, +25.3%

• Free cash flow $93.5m, +42.1%

Extends track record of delivering earnings growth, +26.5% CAGR over last 11 years

• Focus on clear strategies to drive medium term growth in revenues, deliver synergies and improve productivity across the integrated group:

• Cross sell into significant distribution footprint

• Competitive strengths of people, processes and technology

• Leverage financial scale and expertise

7

MMS Group Annual General Meeting

McMillanShakespeareGroup

MMS – Annual General Meeting 2016

Adoption of the Remuneration Report

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For 48,525,453 95.75%
Against 1,738,171 3.43%
Open-Usable 412,129 0.82%
Abstain 152,322 n/a
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9

MMS – Annual General Meeting 2016

Re-election of Mr John Bennetts as a Director

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For 45,822,165
Adoption of the Remuneration Report
Against 14,191,233
Open-Usable 408,479
Abstain 19,164
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10

MMS – Annual General Meeting 2016

Re-election of Mr Ian Elliot as a Director

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For 59,939,925
Adoption of the Remuneration Report
Against 78,811
Open-Usable 406,829
Abstain 15,494
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MMS – Annual General Meeting 2016

Re-election of Ms Sue Dahn as a Director

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For 59,960,255
Adoption of the Remuneration Report
Against 56,463
Open-Usable 408,829
Abstain 15,494
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MMS – Annual General Meeting 2016

Renewal of Proportional Takeover Provisions of Constitution

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For 59,837,374
Adoption of the Remuneration Report
Against 172,380
Open-Usable 396,829
Abstain 34,458
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MMS Group Annual General Meeting

McMillanShakespeareGroup