Good morning, everyone. What a beautiful morning we have here today in Melbourne. Good morning. Welcome to everyone here and online. My name is Helen Kurincic. I am the Chair of McMillan Shakespeare Limited. I am delighted to be able to extend a warm welcome to all of our shareholders today, and our guests to our 2026 annual general meeting, both joining us in person and online. Firstly, I would like to acknowledge the traditional owners of our lands across Australia, recognize their cultures and continuing connection to land, and I am speaking from Melbourne, which is the traditional country of the Wurundjeri people of the Kulin Nation, and I pay my respects to elders, past and present. I am advised that in accordance with Clause 16.4 of the company's constitution, a quorum of members is present, and accordingly, I declare the annual general meeting open.
The notice of meeting was distributed to all shareholders on the 18th September 2026, and I will take the notice of meeting as read. All attendees can watch and listen to the live webcast of this meeting. In addition, shareholders and proxies have the ability to ask questions and submit votes. If you have not done so already, please either turn off your mobile phone or set it to silent. Recordings and photographs of the meetings are not permitted, and we ask that this is adhered to. Questions can be submitted at any time at all. To ask a question, select the Q&A box, select the topic your question relates to, type your question into the chat box at the bottom of the screen, and press the send icon. Please note you can submit questions anytime from now, and I will address them at the relevant time of the meeting.
Please also note that your questions may be moderated or, if we receive multiple questions on one topic, amalgamated together. For those shareholders who wish to ask a verbal question, an audio questions facility is also available during this meeting. To use this service, please follow the instructions on the virtual meeting platform. Voting today will be conducted by way of a poll on all items of business. In order to provide you with enough time to vote, I will shortly be opening the voting for all resolutions. At that time, if you are eligible to vote at this meeting, a new polling icon will appear. Selecting this icon will bring up a list of resolutions and present you with voting options. To cast your vote, simply select one of the options.
There is no need to hit a submit or enter button as your vote is automatically recorded, and you can change your vote up until the time I declare voting closed. I now declare voting open on all items of business. The polling icon will soon appear for those online. Please submit your votes at any time, and I will provide you with a warning before voting will be closed. The proxies received in advance of the meeting are held by the Computershare share registry and are available for inspection upon receipt of a written request. I would now like to introduce you to the Directors of the company who are attending the meeting today and who are on the live webcast. We have Non-Executive Director Kathy Parsons, who is also our Chair of our Audit, Risk, and Compliance Committee. We have Bruce Akhurst, who is our Chair of the People, Culture, and Remuneration Committee.
John Bennetts, Ross Chessari, Andrew Moore, and Arlene Tansey. We are also joined by Managing Director and CEO Rob De Luca, our CFO Paul Varro down the front here, and General Counsel and Company Secretary Michelle Siekierka. I also note the presence of Brett Kallio, representing the audit firm Ernst & Young, and thank Brett for his attendance today to respond to any questions. I will now proceed into my address as Chair. MMS enters this meeting in a strong position built on a record year. In FY 2026, MMS delivered its highest- ever underlying profit, grew its customer base across every segment, and delivered attractive returns to shareholders. Your company helps more than 500,000 Australians and New Zealanders access the benefits of salary packaging, novated leasing, NDIS plans, and fleet management. These services we provide are essential in helping our customers, especially given the ongoing cost- of- living pressures.
We are also helping our customers and clients transition to a lower- carbon economy with electric vehicles now a clear preference for customers taking up a new novated lease. With the introduction of mandated emissions reporting, we are also assisting our fleet clients to fulfill their own emissions reporting. The investments your company has made in customer experience, digital solutions, and technology-enabled productivity are delivering benefits. In FY 2026, this was reflected in demonstrable customer service enhancements and an improvement in our operating margin. During the year, MMS continued to deliver on its responsible business strategy, strengthening its ESG value proposition while making a positive difference to its customers, communities, and environment. This helps to support the company's reputation, stakeholder relationships, and sustainable growth. Today, I will reflect on our FY 2026 results and returns to shareholders, provide an update on sustainability strategy and board succession.
Our CEO and Managing Director, Rob De Luca, will then take you through the performance of our segments, provide a Q1 FY 2027 trading update, and our outlook for the year ahead. In terms of our results. In FY 2026, your company delivered revenue of AUD 602.1 million, up 6.8% on the prior year, with revenue growth across all segments. Importantly, that growth came with discipline. Operating expenses increased by just 2.8%, reflecting the productivity benefits of our investments and disciplined cost management. The result reflected strong operating leverage, with EBITDA up 14.1% to AUD 180.7 million and operating margin up 250 basis points to 41.5%. NPATA, our measure of underlying profitability, grew 13.8% to a record AUD 107.9 million, while statutory NPAT was up 11.4% to AUD 106.7 million. As we foreshadowed at last year's meeting, our results are no longer normalized.
Onboard Finance has been successfully transitioned and scaled within the timeframe we set, with its receivables book now at AUD 587 million. Onboard Finance continues to play its strategic role in diversifying our funding and providing your company with a recurring source of income. This brings me to returns for our shareholders. Return on capital employed remains strong at 62.1%, up 83 basis points, and underlying earnings per share grew 13.8% to AUD 1.55. In line with these results and our commitment to shareholder returns, the board declared a fully franked dividend in the second half of AUD 0.70 per share. Together with the interim dividend of AUD 0.62, this brings the full-year dividend to AUD 1.32 per share, representing a dividend yield of 6.6%. The final dividend represented an 85% payout of NPATA, the midpoint of our 70%-100% payout range. Your company's balance sheet remains strong.
Our key covenant metrics are comfortably within threshold levels. We have no funding maturities due in the next 12 months, and underlying cash conversion was 111%. Turning now to the continued delivery of our group sustainability strategy. Sustainability is an integral part of how we run MMS and aligns with our purpose of making a difference to people's lives. As a responsible business, we were delighted to be upgraded to a Morgan Stanley Capital International, MSCI ESG rating of AAA earlier this year, the highest rating available. We achieved 105.6% gender pay equity in like- for- like roles, and we were again certified as a great place to work. In making a positive social impact, we supported Bravery Trust, mentored young people with disability through the Australian Disability Network, and commenced our Innovate Reconciliation Action Plan in September last year.
In supporting the transition to a low-carbon economy, 100% of MMS sites now run on green power or renewable electricity. 42% of our internal car fleet are battery electric vehicles, and we funded AUD 12.6 million of fleet electric vehicles through green finance during the year. As foreshadowed last year, FY 2026 is the first year in which MMS has reported under the new mandatory climate-related disclosure standard, AASB S2, and these disclosures are included in our FY 2026 annual report. I'll turn now to a board succession update. The board continues to focus on ensuring it's got the right mix of skills, experience, and diversity aligned to your company's long-term strategy. I'm pleased to welcome Andrew Moore, who joined the board in September and stands for election at today's meeting, and you'll hear from him directly.
Andrew is an experienced financial services executive, most recently CEO of Spaceship, a technology-led consumer superannuation investment platform business with earlier senior roles at Westpac, St. George Bank, and GE Capital. This included customer experience, auto finance, and digital banking senior roles relevant to MMS. He's currently a Non-Executive Director of RACQ Limited and other RACQ entities, Spaceship Capital, and Helia. Andrew has a deep understanding of financial services, regulated businesses, and innovative digitally- led transformation and disruption amongst other areas of focus within our board skills matrix. At our meeting today, I would like to give very special thanks to Ross Chessari as he retires from the board after more than 22 years of service to MMS. Ross has made an outstanding contribution to McMillan Shakespeare, spanning the company's listing and its growth into the business we have here today.
On behalf of the board, Ross, I thank you for your huge commitment and dedicated service to this business, and we wish you the very best. I'd like to also formally thank my fellow Non-Executive Directors for their commitment and contribution over what has been a significant year for the group. The board has set a clear- focus strategy to achieve our vision and deliver sustainable growth. Our performance is delivered by every one of our MMS people, led by our CEO and Managing Director, Rob De Luca, and his executive team. Thank you to our customers and our clients who engage us as their trusted partner, and thank you to our shareholders for your continued support. The board is confident that MMS is well-positioned for growth and the delivery of its clear and compelling strategy. I'll now pass over to our CEO and Managing Director, Rob De Luca.
Thank you, Helen. Good morning, everyone, and thank you for joining us for the MMS Annual General Meeting for the 2026 financial year. As Helen mentioned, my name is Rob De Luca, and it is a privilege to serve as Managing Director and Chief Executive Officer of MMS. This morning, I will reflect briefly on our FY 2026 performance and the progress we have made in executing on our strategy. I will then turn to our trading update for the first quarter of FY 2027 and our outlook for the year ahead. FY 2026 was a year of strong organic growth and disciplined execution. Our record result was underpinned by customer growth across all segments, where we continued to see strong digital engagement and customer satisfaction. In Group Remuneration Services, salary packages grew 7.1% to 402,000, supported by 14 net- new client wins.
Novated leases grew 13.5% to a record 90,000, with novated sales up 8.4% for the year and accelerating through the second half. Our customers continue to rate us highly with an NPS of +50 and customer satisfaction of 80%. 94% of claims are now processed digitally, and our apps are rated at 4.6 stars. In Asset Management Services, fleet units grew by 3.3% to approximately 16,000, supported by 20 net- new client wins in the period with an NPS of +53. Our pool- booking platform is enabling more customers to self-serve with digital vehicle bookings up 308%. In Plan and Support Services, customers grew 3% to 44,000 with an NPS of +45, while our digital payments platform increased the share of invoices processed digitally by 43 percentage points. This was achieved as compliance and payment integrity requirements continue to strengthen across the NDIS sector.
Turning to slide 11, highlighting how our investments and strategy execution are delivering superior customer experiences, enhancing our distribution, and resulting in productivity gains reflected in a 250 basis point improvement in our operating margin. Our first strategic priority is to excel in customer and partner experience. In the period, we continue to strengthen and grow our ecosystem of strategic partnerships with leading global automotive brands. Our investment in a superior and more integrated digital platform for dealers representing OEMs is making the vehicle ownership process easier and faster for customers, while more efficient for dealers. In the period, we saw a 42% increase in the number of dealers using our platform, and we were able to reduce the time from lead inquiry to settlement for customers by approximately five days.
Our second strategic priority is to deliver simplified and scalable solutions, which we set out to achieve for Oly, our SME novated offering. In the period, we continued to significantly expand distribution, including partnerships who have strong access to SME clients like NAB. We also continued to simplify the employer onboarding experience, a key enabler for their employees to access the benefits of novated leasing. In the period, these initiatives contributed to 185% increase in Oly registered SME employers and a 23-percentage- point improvement in employers- to- lease conversion. Our third strategic priority is to drive technology and capability enablement, where in the period we progressed deploying AI and data capabilities with real-time agent monitoring, which is flowing through directly to improve service and productivity outcomes.
These enhanced capabilities allow our employees to have access to real-time dynamic information and tools, which are helping customer inquiries be resolved faster, reflected in a 13% reduction in average handling time in the period, as well as less after-call work, which was down 18%. Turning now to our trading performance for the first quarter of FY 2027. The momentum we saw through FY 2026 has continued with growth across all key customer numbers on a PCP basis. GRS salary packages grew by 6.8%, while novated leases grew 17.5% to 95,000. In PSS, customers grew 2.7% to 44,100, and our AMS fleet units grew by 1.7% to 15,500. Demand for novated leasing remains strong, with novated lease sales growing 14% on PCP. Oly sales were up 83%, reflecting the continued success of our SME distribution strategy.
Novated yield is consistent with quarter four FY 2026 and down 4% on PCP, reflecting similar conditions to those outlined at the FY 2026 results. We are continuing to see the structural shift to electric vehicles with battery electric vehicles representing 75% of GRS new novated sales in the period, of which over 80% were financed for under AUD 75,000. We are also seeing a shift to electric vehicles in our AMS segment. Electric vehicles made up 17% of AMS-funded fleet units, up 13.6 percentage points on PCP. Vehicle remarketing profits were down 15% on PCP, reflecting reduced used vehicle pricing and slower asset replacement cycles as customers continue to hold their vehicles for longer. Moving on to our outlook for FY 2027, which remains consistent with that outlined at our FY 2026 results. We expect the remainder of FY 2027 to be supportive environment for growth in our business.
Momentum continued with quarter one FY 2027 novated sales up 14%. Certainty of the EV FBT exemption and preference for fuel-efficient vehicles is expected to support growth in novated leasing and fleet management. Demand for salary packaging is expected to continue to benefit from ongoing cost- of- living and inflationary pressures. The current dynamics of elevated demand for EVs, softer demand for ICE used vehicles, and slower asset replacement cycles are expected to be reflected in remarketing profits. As the second-largest plan manager provider, we are well-positioned and will continue to engage on emerging NDIS reforms. We will maintain a disciplined approach to delivering productivity gains, which will support selective reinvestment in broadening our sales capability while continuing to deliver and enhance value to customers in a competitive market. Finally, we are optimistic about the future and the prospects for long-term sustainable growth for MMS.
We remain focused on executing on our strategic priorities. Firstly, excel in customer and partner experience. Secondly, deliver simplified and scalable solutions. And thirdly, drive technology and capability enablement. Before I close, I want to thank our people for their commitment, our customers and clients for their trust, and our shareholders and board of directors for their ongoing support. I also want to thank Ross for his dedication to the MMS board and wish him well for the future. Together, we are delivering on our vision and positioning MMS for long-term sustainable growth. Thank you.
Thanks, Rob. We now come to the formal business of the meeting. Each item of business will be discussed in turn, and shareholders will have the opportunity to ask questions on that item of business. Questions which relate to the general business of the company will be collected and addressed at the conclusion of the meeting. You can submit a question by clicking on the Q&A icon. If you are having any difficulties in asking a question, please refer to the user guide which can be accessed through the platform. The first item of business listed in the notice of meeting is to receive and consider the financial report, the sustainability report, the directors' report, independent auditors' report of the company and its controlled entities for the financial year ended 30 June 2026. In accordance with the Corporations Act, there is no vote on this item.
The item of business provides shareholders with the opportunity to ask questions about the reports and management of the company generally. May I ask if there are any questions?
No questions have been received online, Chair.
Any questions in the room? If there are no questions, I will proceed with the resolutions to be considered. I appoint David Squires of Computershare Investor Services as the returning officer for the purposes of conducting the poll on each resolution. As I mentioned at the start of the meeting, voting on the resolution is currently open, and you can vote at any time until I declare the voting closed. Results will be released to the ASX after the conclusion of the meeting. Please note that only shareholders, proxy holders, or authorized shareholder representatives may vote. Any directed proxies given to you by a shareholder will automatically be cast as directed when the poll is closed. In respect of undirected proxies, subject to any voting restrictions and exclusions, I intend to vote in favor of all resolutions on the agenda. The voting icon is available within the navigation bar.
Once you click on this, the resolutions will appear on your screen along with the For, Against, and Abstain voting options. Simply select one of these options to cast your vote. When voting is closed, your final voting selection will be recorded. If you have any difficulties, please refer to the user guide, which can be accessed through the platform. Item Two relates to the adoption of the remuneration report of the company for the financial year ended 30 June 2026, which is set out in the directors' report on pages 27 - 46 of the 2026 Annual Report. The remuneration report sets out the company's remuneration policy for its executives, employees, and directors.
The company strives to ensure that its remuneration report is clear, transparent, and demonstrates your board's objective of ensuring the alignment of the executive reward with the creation of shareholder value, and that current market practices have been duly considered in terms of both quantum and structure of the company's remuneration framework. The resolution before the meeting is that for the purposes of Section 250R(2) of the Corporations Act 2001, and for all other purposes, the company's remuneration report for the financial year ended 30 June 2026, as contained in the director's report, be adopted. The board unanimously recommends that shareholders vote in favor of adopting the remuneration report. I will now put the resolution to the meeting. A summary of the votes received before the meeting is there for you on the screen. Are there any questions in relation to the remuneration report?
No questions have been received in relation to this item.
Any questions in the room? The company will disregard any votes cast on Item Two by all key management personnel and their closely related parties, except where that vote is cast by them as a proxy for a person who is entitled to vote. Item Three is the election of Andrew Moore as a Director. The details of Andrew's background, qualifications, and experience are set out in the notice of meeting. A summary of the proxy votes received before the meeting is on the screen. I would now like to invite Andrew to say a few words.
Thank you, Helen. Is this on? Yeah. Thank you, Helen. Good morning, and thank you, shareholders, for considering my election to the MMS board as an Independent Non-Executive Director. It's an honor to be asked to join the MMS board with a proven track record of financial performance, product innovation, and customer service, all of which are vital to the success of any financial services business. For over 30 years, I've had the opportunity to work in the financial services sector, both domestically and internationally. This has included executive leadership roles with GE Capital, St. George Bank, and Westpac Group, encompassing a diverse range of responsibilities, P&L leadership, online and mobile banking, multi-channel product distribution, customer contact centers, wealth management, and financial technology. All of these experiences are ones which I think will be highly beneficial to MMS, its board, and its shareholders.
My most recent executive role was as CEO of Spaceship Financial Services. That was very focused on digital transformation and disruption in the financial services industry, building and delivering innovative, and engaging investment, and superannuation products for young Australians. I'm confident my background will provide useful insights and perspectives into the opportunities and market pressures that will shape MMS's future, and I'm looking forward to drawing on all my experiences to help support and guide MMS as the company seeks to deliver on its growth agenda. As Helen mentioned earlier, I currently serve as a Non-Executive Director on several other companies, Spaceship Capital Limited, RACQ Limited, the Queensland- headquartered motoring club and roadside assistance business, and Helia Group Limited, an ASX 200 company that provides risk insurance products to Australia's home lending industry. Let me close by saying I'm very committed to the continued growth and success of MMS.
I look forward to making a significant contribution as a Board Member and as a Member of the Audit, Risk, and Compliance Committee, which I've also been invited to join. Thank you again for considering my election.
Thanks, Andrew. Are there any questions in relation to this resolution?
No questions have been received in relation to this item.
Okay, no questions in the room. The board, excluding Andrew, as this resolution is for his election, recommends that shareholders vote in favor of this resolution. Congratulations, Andrew.
Thank you.
The resolution. Yes. Let's give him a round of applause. Great to know. I should actually put the resolution properly first. The resolution before the meeting, after his applause-worthy speech, is that Mr. Andrew Moore, a Director appointed to fill a casual vacancy retiring from office in accordance with Clause 19.4 of the Constitution, being eligible, is elected as a Director of the company. I'll now put that resolution to the meeting. Let's go to the next one, which the next item is the re-election of Kathy Parsons or Kathryn Parsons as a Director. The details of Kathy's background, qualifications, and experience are set out in the notice of meeting. A summary of the proxy votes are up there as well for you that have been received and are on the screen. I'd now like to invite Kathy to say a few words.
Thanks, Helen. Good morning, everyone. I am very pleased to be here today and stand for re-election as one of your Independent Non-Executive Directors. It continues to be a privilege to serve with my fellow directors with a shared focus to provide a governance environment that is an effective enabler for McMillan Shakespeare. My background in finance, operational leadership, and risk management supplements the skills of my fellow directors and enables me to contribute strongly to the strategic thinking and governance of MMS. As Chair of the Audit, Risk, and Compliance Committee, I focus primarily on three aspects. Firstly, applying my deep technical expertise to the oversight of our financial reporting, such that it is of the highest standard and flows from internal systems with strong financial controls. Secondly, that our operational risk management and compliance systems and processes continue to evolve to be appropriate in an ever-changing environment.
Lastly, to continue to work closely with management, with a focus on continuous improvement, while strengthening a culture of working collaboratively together to drive quality throughout the organization. I am committed to continue to asking challenging questions that management enjoy applying critical thinking to the matters at hand, and I look forward to continuing to work with my fellow directors and management in achieving and executing our three strategic priorities. Thank you for your time and consideration today.
Thanks, Kathy. Are there any questions in regards to this resolution? Not from the room.
No questions have been received in relation to this item.
The board, excluding Kathy, as this resolution is for her re-election, recommends that shareholders vote in favor of this resolution. The resolution before the meeting is that Ms. Kathryn Parsons, a Director retiring from office in accordance with Clause 20.2 of the Constitution, being eligible, is re-elected as a Director of the company. I will now put the resolution to the meeting, and we can give her an applause-worthy speech. Congratulations, Kathy. Next item, Item Five, is the issue of performance rights to the CEO and Managing Director. A summary of the proxy votes received before the meeting is up there on the screen.
The resolution before the meeting is that, for the purposes of ASX Listing Rule 10.14 and all other purposes, approval be given for the issue to the CEO and Managing Director, Mr. Roberto De Luca, of up to 55,079 performance rights under the company's Executive Incentive Plan, and for the issue of shares on exercise of those performance rights. Are there any questions in regards to that resolution?
No questions have been received in relation to this item.
Okay, no questions in the room. The company will disregard any votes cast on Item Five by Mr. De Luca or an associate who is eligible to participate in the executive incentive plan, except where that vote is cast by them as a proxy for a person who is entitled to vote. I will now put the resolution to the meeting. We come to Item Six, the issue of share rights to the CEO and Managing Director. A summary of the proxy votes received before the meeting is also on the screen. The resolution before the meeting is that, for the purposes of ASX Listing Rule 10.14 and all other purposes, approval be given for the issue to the CEO and Managing Director, Mr. Roberto De Luca, of 16,219 share rights under the company's Executive Incentive Plan, and for the issue of shares on exercise of those rights.
Are there any questions in relation to this resolution?
No questions have been received in relation to this item.
None in the room. The company will disregard any votes cast on Item Six by Mr. De Luca or an associate who is eligible to participate in the executive incentive plan, except where that vote is cast by them as a proxy for a person who is entitled to vote. I will now put the resolution to the meeting. That concludes the business of the meeting. Are there any other questions in regards to the general business of the company?
No. No questions have been received online.
None in the room. I'd like to advise that shortly the voting on all resolutions will close. Can all shareholders voting online please now ensure that they've submitted their votes? We'll take a few moments now to allow you to finish voting. Voting will then close in a few minutes. While the voting is being finalized, we'll take the opportunity to show you a quick video.
[Presentation]
Fantastic. Spread the word about Oly. I think we can declare the poll closed. Yes, I am getting the nod in the room. Yes, I do declare the poll closed. The staff at Computershare will now process the poll, and the final results will be notified to the ASX in accordance with the Corporations Act and will also be placed on the company's website as soon as they become available. As there is no further business, I warmly thank you all for your attendance, and I declare the meeting closed and warmly invite everyone to share some refreshments and have an opportunity to chat to the Directors and management here today. Thank you all, and have a great day.