McMillan Shakespeare (MMS) Investor presentation summary

Key messages

• Trusted partner with scale and strong financial characteristics, including high customer satisfaction and attractive margins.

• Well positioned to capture opportunities from market trends such as EV adoption and government spending.

• Clear strategy focused on sustainable growth and delivering valued solutions.

• Strong novated sales growth driven by expanding market and shift to electric vehicles.

Business model and investment proposition

• Large, diversified customer base across government, health, corporate, and SME sectors.

• High net promoter scores and strong customer satisfaction across business segments.

• Attractive financials: 40.3% operating margin, 14.5% EPS CAGR over 4 years, 62.8% ROCE.

• Strong cash conversion and dividend yield, with an 85% dividend payout ratio.

• Core competencies include managing B2B2C relationships and leveraging data in regulated environments.

Macro environment and market opportunities

• Increased government spending of $1.4T over 4 years in health, disability, and aged care.

• Accelerating electrification transition and EV uptake create growth opportunities.

• Advancements in AI, technology, and analytics enhance customer experience and efficiency.

• Market volatility and cost of living pressures drive demand for employee benefit solutions.

• Rising demand for enterprise-grade solutions among ~1 million SMEs, representing 67% of private jobs.