MCMILLAN SHAKESPEARE LIMITED — AGM Information 2021

Nov 21, 2021

==> picture [594 x 228] intentionally omitted <==

22 November 2021

Manager Company Announcements ASX Limited Level 4 20 Bridge Street SYDNEY NSW 2000

By E-lodgement

2021 Annual General Meeting Presentation

Please find attached for immediate release in relation to McMillan Shakespeare Limited (ASX: MMS) the following document:

• 2021 Annual General Meeting Presentation.

Yours faithfully McMillan Shakespeare Limited

==> picture [87 x 70] intentionally omitted <==

Ashley Conn Chief Financial Officer and Company Secretary

This document was authorised for release by the Board of Directors.

McMillan Shakespeare Limited | ABN 74 107 233 983 AFSL No. 299054

McMillanShakespeareGroup

MMS Group Annual General Meeting 2021

==> picture [420 x 300] intentionally omitted <==

22 November 2021

1

MMS – Annual General Meeting 2021

Overview

Financial

Revenue $544.5m 10.2% UNPATA $79.2m 14.8%

Dividend payout ratio 66.0%[1]

Net cash (excl. Funded fleet) at 30 June 2021 $142.0m

People Sustainable engagement score 85%

Moved quickly to a fully remote workforce

Retained our workforce with support of JobKeeper New ways of working

Customer Net Promoter score 60 15.4% Salary packages 357,388 (1.0%)[2]

Novated leases 73,375 2.2%

Plan Partners funds under administration ~$1.2b 76.0%

Process

Continued investments in digital with improvements to customer self-service tools and digital experience

Completed UK restructure and returned to profitability

Warehouse significantly progressed

Sustainability strategy further developed

ROCE improved to 33.2%

1. Payout ratio of 66% excludes JobKeeper $7.3m.

2. Salary package reduction includes previously announced loss of NSW LHD (16,200 customers), underlying growth excluding this loss was 3.5%.

McMillanShakespeareGroup

2

MMS – Annual General Meeting 2021

Presenters on strategic imperatives

==> picture [171 x 227] intentionally omitted <==

Himesha Jayasinghe Sustainability Manager

Sean Dempsey Chief Executive Officer – Plan Partners

Kylie Pashen Managing Director – Maxxia and RemServ

McMillanShakespeareGroup

3

MMS – Annual General Meeting 2021

Our investment in sustainability

Sustainability strategy developed and rollout underway, focusing on creating shared value for MMS and our stakeholders

FY21 foundations laid

FY22 strategy rollout

MMS sustainability strategy

• Sustainability strategy approved by the Board

• Initial sustainability targets established for FY22 and beyond

• Dedicated sustainability manager appointed

• Management level sustainability committee expanded to key executives and senior leaders

• First GRI-compliant sustainability report produced

• First modern slavery statement published

• Progressing pathway to net zero carbon emissions[2] , and 100% renewable electricity across MMS operations

• Supporting our customers transition to a low carbon future through adoption of low/zero emission vehicles

• Development of first Reconciliation Action Plan and Accessibility and Inclusion Plan underway

• Further embedding sustainability risks and opportunities into our supply chain

• Undertaking a high-level climate risk and opportunity assessment

• First TCFD[1] disclosure developed

FY21 highlights

100% Scope 1 and 2 greenhouse gas emissions offset[2]

6 60 $733k+ 85% 81,000+ 34% Facilities Net Promoter Sponsorships Sustainable Hours of Women in switched to Score[3] and donations engagement training provided leadership[4 ] green power score to our people

1 Taskforce for Climate Related Financial Disclosures.

• 2 Scope 1 (fuel), Scope 2 (purchased electricity), Scope 3 (employee commute and working from home, business travel and third party services). Net Zero target is set against the baseline year FY19. 3 GRS SP and NL, customer satisfaction measured through Net Promoter Score.

4 Board, Executive Committee and General Managers, Senior Managers and Other Managers.

McMillanShakespeareGroup

4

MMS – Annual General Meeting 2021

GRS – Plan Partners

• As at 30 June 2021, 49%[1] of plans eligible for Plan Management (vs 40% 12 months prior)

• Established brand with 91% customer satisfaction score, customers who are very happy with our services

• Service delivery and activity levels not impacted by COVID-19

• 100% wholly owned subsidiary (since 30 June 2020)

• NDIS participants to reach 859,000 by 2030[4]

Support coordination hours

Funds under administration $m

==> picture [224 x 105] intentionally omitted <==

----- Start of picture text -----

1,179
+76% +43% 49,218
34,408
669
15,593
269
FY19 FY20 FY21 FY19 FY20 FY21
----- End of picture text -----

	Invoices processed:	>1m
	Total payments disbursed:	~$600m
	Staff numbers (at 30.06.21):	158 FTE
	Net promoter score:	52
	Staff engagement:	94%
	Hours of customer
	support provided3:	>53k

FY22 outlook

• Plan Tracker acquired on 1 July 2021

• Drive organic growth through customer acquisition and retention

• Continue to consider M&A opportunities in FY22

Distribution of active NDIS participants by plan type[1]

Unique service providers

FTEs and efficiency rates[2]

==> picture [338 x 136] intentionally omitted <==

----- Start of picture text -----

100%
90%
60 91 127 80% 30% 32% 35% 39% 40% 43% 45% 47% 49%
70%
2.56 60% 16% 18%
19%
1.72 50%40% 11% 12% 11% 20% 20% 21% 21% 22% 22%
11%
30% 11% 11%
1.00 10% 9% 9%
20%10% 43% 39% 35% 31% 28% 26% 24% 22% 20%
0%
FY19 FY20 FY21 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Efficiency rate
----- End of picture text -----

==> picture [88 x 97] intentionally omitted <==

----- Start of picture text -----

32,245
+49%
21,650
10,200
FY19 FY20 FY21
----- End of picture text -----

• 1 COAG Disability Reform Council Quarterly Report - 30 June 2021. 2 Efficiency rates calculated as FTE / Invoices processed.

[Managed by a plan manager]

• [ Self managed (fully)]

• Self managed (partly)

[ Agency managed]

• 3 Hours of contact reflects period April to June 2021 annualised.

• 4 2021 NDIS Annual Financial Sustainability Report.

McMillanShakespeareGroup

5

MMS – Annual General Meeting 2021

GRS – Salary Packaging and Novated Leasing

==> picture [87 x 25] intentionally omitted <==

----- Start of picture text -----

Salary packages [1]
357,388
----- End of picture text -----

Performance

• New client wins in FY21 +109

• Improvements in activity following the easing of COVID-19 lockdowns, with FY21 activity levels up 4% on pre COVID-19 levels

• FY21 carryover increased to over 5 times pre COVID-19 levels

Technology

• Successfully implemented Deferred Sales Model regulatory change through our platforms

• Online self-serve salary packaging sign-up supporting growth

• Novated Digital Estimate and Proposal providing customers greater transparency

• Digital investments to improve our customer engagement model is delivering strong activity

Customers

• Market leading Net Promoter Score 60 and Product Review Rating >4.5 stars demonstrating a superior level of service

• Strong retention rates with 100% of tier 1 renewals successful in FY21

• State Government investments in frontline health workers supports further salary packaging growth

==> picture [126 x 93] intentionally omitted <==

----- Start of picture text -----

(1.0%)
334.9 343.1 361.0 357.4
317.5
FY17 FY18 FY19 FY20 FY21
→
(’000)
----- End of picture text -----

• New clients: 3,652 packages

• Decreased participation: (7,297) packages[3]

Novated leases[2] 73,375

==> picture [126 x 94] intentionally omitted <==

----- Start of picture text -----

2.2%
71.8 73.4
68.0
63.5
59.8
FY17 FY18 FY19 FY20 FY21
→
(’000)
----- End of picture text -----

– New clients: 877 vehicles

• 1 Total number of salary packages at period end.

• Increased participation: 679 vehicles

• 2 Novated leases under management at period end.

• 3 Decreased participation includes (16,200) relating to the previously announced loss of NSW LHDs. Note: New clients are organisations who commenced during the period.

McMillanShakespeareGroup

6

MMS – Annual General Meeting 2021

Vehicle Supply – GRS Novated Leases

Elevated demand has continued

1Q orders indexed to 1QFY19

==> picture [173 x 92] intentionally omitted <==

----- Start of picture text -----

105% 112% 114%
1QFY20 1QFY21 1QFY22
----- End of picture text -----

Supply dynamic has delayed a portion of sales

1Q sales indexed to 1QFY19

==> picture [173 x 87] intentionally omitted <==

----- Start of picture text -----

101% 107% 103%
1QFY20 1QFY21 1QFY22
----- End of picture text -----

Industry wide vehicle supply delays have increased the carryover

End 1Q carryover indexed to end 1QFY19

==> picture [172 x 86] intentionally omitted <==

----- Start of picture text -----

524%
253%
95%
1QFY20 1QFY21 1QFY22
----- End of picture text -----

Yields have strengthened driven by higher net amounts financed

1Q yield indexed to 1QFY19

==> picture [172 x 83] intentionally omitted <==

----- Start of picture text -----

97% 90% 101%
1QFY20 1QFY21 1QFY22
----- End of picture text -----

FY22 Outlook:

Expect supply issues to continue through to end of CY22 and impacts of COVID-19 and related lockdowns to remain a key variable

McMillanShakespeareGroup

7

MMS – Annual General Meeting 2021

FY22 update

Market conditions

Growth priorities

• Novated order activity increasing in NSW & Victoria following easing of COVID-19 restrictions

• Auto supply constraints expected to continue through CY22 resulting in growth in carryover

• Plan Partners continued growth:

  • Positive organic growth opportunity with number of participants expected to reach 859,000 by 2030

• Strong second hand vehicle market now contributing to increased remarketing yields in the UK

• Plan Tracker integration well progressed

• Warehouse ready to go live:

• Strong interest from funders

• Awaiting credit licence from ASIC

• RFS Retail sale completed

Overall outlook remains consistent with commentary provided with FY21 results presentation

McMillanShakespeareGroup

8

MMS – Annual General Meeting 2021

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 presentation contains selected information and does not purport to be all inclusive or to contain information that may be relevant to a prospective investor. No reliance may be placed on MMS for financial, legal, taxation, accounting or investment advice and the information in this presentation is not and should not be considered a recommendation to investors or potential investors and it does not take into account the investment objectives, financial situation and particular needs of any particular investor and each person is responsible for conducting its own examination as to the sufficiency and relevance for their purpose of the information contained in this presentation and any offering documentation and should undertake their own independent investigation of MMS and assessment of the merits and risks of investing in MMS’ shares.

This presentation contains certain forward-looking statements which are based on management’s own current expectations, estimates and projections about matters relevant to MMS’ future financial performance. These statements are only forecasts. Actual events or results may differ materially. Nothing in this presentation is a promise or representation as to the future. MMS does not make any representation or warranty as to the reasonableness or accuracy of such statements or assumptions and MMS assumes no obligation to update any forward looking statements. Forward-looking information and statements are based on the reasonable assumptions, estimates, analysis and options of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date such statements are made, but which may prove to be incorrect. The purpose of forward-looking information is to provide the audience with information about management’s expectations and plans.

The information in this presentation is for information purposes only and is not an offer of securities for subscription, purchase or sale in any jurisdiction or otherwise engage in any investment activity and neither this presentation nor anything in it shall form the basis of any contract or commitment whatsoever. No representation or warranty, express or implied, is made as to the fairness, accuracy, reliability, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of MMS, its directors, employees, agents or advisers, nor any other person accepts any liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including, without limitation, any liability arising from fault or negligence on the part of MMS or its directors, employees, agents or advisers.

An investment in MMS is subject to known and unknown risks, some of which are beyond the control of MMS, including possible loss of income and principal invested. MMS does not guarantee any particular rate of return or the future business performance of MMS, nor does it guarantee the repayment of capital from MMS or any particular tax treatment. Each person should have regard to MMS’ other periodic and continuous disclosure documents when making their investment decision and should make their own enquiries and consult such advisers as they consider necessary (including financial and legal advice) before making an investment decision. Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

Financial data

All dollar values are in Australian dollars ($) unless stated otherwise.

Effect of rounding

A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation.

McMillanShakespeareGroup

9