INTRODUCTION TO THE UK BUSINESSES

Transcription

1 INTRODUCTION TO THE UK BUSINESSES

2 2008 Financial Crisis & beyond!

3 MMS UK opportunity: accelerated growth Post GFC environment & introduction of Basel III is creating structural shifts and a significant market opportunity for MMS to provide integrated asset management, asset finance and vehicle leasing services including salary sacrifice in the UK MMS developing a unique, integrated business approach leveraging local management expertise and Australian capabilities and experiences Clear strategies to accelerate growth including marketing initiatives, partnerships and diversified funding models Execution well advanced

4 Recap on Basel III Regulatory environment changing: Basel III requires significant changes to the following : Risk Based Capital Changes - cost of allocating capital to smaller value transactions - cost of capital to operational risk Leverage - Lower gearing and full transparency, impacting quality and nature of lending Liquidity - nature of activities and solvency - long term structured lending is less attractive than 364 day lending Funding - maintaining the appropriate balance between liabilities, assets and maturities

5 UK market Estimated 4.5 million private sector businesses Annual new car finance billion (business & consumer) Approx 15 billion of other (non car) asset finance annually UK financial sector recovering from crisis Borrowing still challenging in some sectors Market fragmented with lots of providers Little differentiation in market

6 Market opportunity There are salary packagers / benefit providers operating under the UK tax laws (notably for cars and child care) and there is a large market for asset finance and management (2.3 million fleet vehicles). No UK provider has an integrated offering such as MMS deploys in Australia Marketing capability in salary sacrifice arena is in its infancy Australian experience can provide MMS with an advantage over UK competitors Salary sacrifice has similar selling advantages to novated leases Salary sacrifice market immature but growing through dedicated players promoting through the HR function. Benefits providers do not understand salary sacrifice cars and are not maximising the opportunity Lombard Vehicle Management, ING Car Lease and Masterlease three major players that due to the financial distress of their parents exited the market The contract hire market remains competitive

7 Competitive environment Government and industry bodies focused on generating lending required to restore and accelerate economic growth Banks de-leveraging and de-risking and attempting to restore profitability Banks have also sought to restrict their lending to their own customers so that the bank has complete transparency on the trading activities and performance of the customer New challenger banks - strong focus on retail : Virgin Money; Shawbrook Bank; Williams & Glyn s; TSB (separation from Lloyds) ; Aldermore; peer 2 peer lending Insufficient capacity to satisfy and stimulate demand (many foreign lenders exited in 2008) - Government through the British Business Bank is actively looking to sponsor and support new entrants UK vehicle leasing sector significant consolidation post financial crisis. Stable business model Large fleet customers influence pricing through competitive tendering. Low margin business (smaller companies) run off to deleverage large balance sheets

8 Maxxia has arrived in the UK!

9 MMS UK market entry model Maxxia (UK) is a 50/50 joint venture company between Visper Asset Finance Limited (VAF) and MMS with an opportunity to move to100% after five years. Required initial minimal risk capital Structured to align the ongoing capital required in accordance with the visible opportunities Access a deeply experienced and respected local management team Access a UK management team with over 150 years of experience in contract hire and salary sacrifice programs that can deliver on the opportunities in the UK market Provides MMS with the opportunity to leverage off this local experience and develop a salary sacrifice motor vehicle offering including, potentially, the novated lease product and a full employee benefits offering

10 UK acquisition Maxxia (UK) Ltd acquired 100% of the issued shares of CLM Fleet Management plc on 22 October CLM provides fleet management services to over 12,500 vehicles in the UK market. Revenue (net of customer recharges) - 7.7m (A$13m) Purchase price of 8.5m (A$14.4m) funded from internal cash reserves. The acquisition represents another building block in providing an integrated asset finance and asset management business model in the UK Provides platform for the introduction of employee lease products. Brings the total combined businesses headcount in the UK to 90 people

11 Why CLM? Client base. High quality, long-standing customer base, bringing asset finance crossselling opportunities for Maxxia leading to greater customer entanglement People. Competent and loyal employees will add value Low risk. Low liquidity, credit, residual value risk and no maintenance risk Controls. Strong controls and cash flow management Growth. The combined business will bring additional income opportunities Employee leasing. Strong employee base within existing CLM customers Capability. Strong procurement, in-life services, logistics and remarketing competence Systems. Flexible customer centric in house system that will enable faster implementation of new products and a differentiated market offering CLM will accelerate the delivery of the UK business goals and the development of the unique integrated business model

12 CLM brings key benefits to the joint venture Income Additional income streams from fleet management activities; cross-selling opportunities for finance products to existing client base + Platform A back of house fleet management platform that supports the Maxxia sales force Proposition Brings complementary product to extend portfolio provides platform for regulated employee leasing product development + Market presence The skillset strengthens the offering of Maxxia in the market Impressive client base FTSE corporate, well known, significant and highly regarded local and global names + With Maxxia Finance Provides a fully integrated finance and management offering in the UK market

13 Developing the UK integrated business model Asset Finance Solution Services Maxxia core competencies Proactive sales culture Strong marketing capability Financial management Tax knowledge base Employee lease Asset finance brokerage and agency Lending as principal Enterprise funding portal Maxxia vehicle fleet competencies Treasury, financing & RV risk management Fleet Mgmt Novated Lease Salary Sacrifice Business Assets Vehicle Leasing Employee Assets General Asset Finance ECOS IT Life Cycle Mgmt CLM current core competencies Managing vehicle Fleet value chain: Procurement Maintenance Disposals Service costs Fleet management Consultancy Short term rental Mini lease Lease co. panel Contract Hire/ Operating Lessors/ Fleet Managers In place In devt/ planned

14 How MMS adds value Strong Capital Base / Balance Sheet Strong liquidity and ability to invest in: Acquisitions to create a best in class model Differentiation Innovation Growth Shared learning and intellectual capital Strong risk and operational management Low cost, low risk market entry that now has a solid income and customer base to support growth Few new entrants have these resources and attributes

15 Execution well advanced JV formed MMS enters UK Maxxia brand launched Business origination boosted Launched Maxxia Finance Acquired CLM 1 st Feb 13 1st April 13 1st July 13 1st Aug 13 22nd Oct 13

16 Accelerated growth strategies - strategic partnerships and relationships Maxxia assists customers to fund their capital programs Wide range of funding options Professional Advisors Specialist asset finance providers & managers

17 Results focused marketing Find & Be found Nuture Convert Crosssell Build profile & credibility Be found Find opportunities Build profile & credibility Start the conversation Engage, remind, reinforce Act at the right time Support customer acquisition process Monitor success Recycle leads Leverage CLM relationships Support customer management process Communicate Database PR Web Advertising SEO Social Content case studies TM Tender response Sales proposals & collateral CSI Customer communications Brand awareness Media exposure Web analytics IP tracking Engagement rates Leads generated Cost per lead Customer conversion ROI Customer share of wallet Customer loyalty

18 Funding panel developments Siemens Financial Services ABN AMRO

19 Diversified funding model Product development Partnering Funding solutions P & A Structures Acquisition Panel of UK and overseas funders well advanced Portfolio growth fund

20 New integrated management team Debbie Baker Gordon Calder-Jones Simon Cotton Catherine Dawson Lisa Edwards Steve Edwards Robert Eggleston Julian Humphreys John Kelly Chris Mitchinson Roger Skinner Gareth Shaw Mike Thake

21 Team background Creation of a successful international leasing brand Strategic & operational performance excellence aligning BBS & EFQM Management of $3bn in international vehicle leasing vehicle assets Customer relationship management for major blue-chip clients Turnaround of underperforming businesses Executive & operational roles in the largest UK asset finance companies with corporate & retail finance focus and over 12bn in assets International leadership and growth in 17 countries Management of c80,000 fleet in the UK & c250,000 internationally Multiple cross-border business acquisitions, integration & divestment Implementation of sales and marketing automation programme Development of UK market leading and award winning Employee Car Ownership product Corporate re-branding Arranging multinational structured finance and securitisations

22 Conclusions GFC & introduction of Basel III are creating structural shifts and significant market opportunities for MMS to provide asset management, asset finance and vehicle leasing services including salary sacrifice in the UK Good progress in developing a unique, integrated business model leveraging local management expertise and Australian capabilities and experiences Over 17M in new asset finance business originated with the funding panel including Maxxia Finance over the last nine months Lead generation and CLM acquisition provides an initial platform of 150 new customers as a platform for growth Execution progress well underway

23 Our core values are of trust, transparency, integrity and empathy. Trust. Complete confidentiality, fairness and respect. Transparency. Absolute clarity at all stages of our relationships. Integrity. Unquestionably the highest standards of professionalism. Empathy. Understanding our clients business and challenges.

24 Maxxia is no ordinary asset finance company. We offer more. You can trust us. Our people have experience and knowledge.