McMillan Shakespeare Limited (MMS) Earnings Call Transcript & Summary

Good morning, and welcome, everyone, to the 2023 MMS Investor session. I'm Rohan Martin, Head of Corporate Affairs and Sustainability for the MMS Group. And it's our pleasure to have you with us today, including those who are joining us via our webcast. I'd firstly like to acknowledge the Wurundjeri people of the Kulin nation as the Traditional Owners of the street we are gathering in today. We acknowledge their continuing connection to land, water and community and pay our respects to the Elders past and present. Also extend our respect to Aboriginal and Torres Strait Islander people who are here with us today. Moving to Slide 4, which everyone online should have and here in the room, which provides just a brief overview of the agenda for today. I'll start off just with a few housekeeping matters, if I may. For those of you in the room today, we just ask you to turn your phones to silent. Should you require a comfort stop, the restrooms are out the door to the left and over the walkways towards the left. Also, in the event of emergency, you'll hear the relevant alert signals and we'll await further construction, but no running. The format of this morning is displayed on the slide. Importantly, our purpose today is to provide an overview of the MMS business in order to help you better understand the construct of the group, together with some of the key thematics, which we are seeing in the markets in which we operate in. We'll also focus on providing with a broader overview of the strategic priorities we are pursuing in order to deliver sustainable growth. And of course, it's an opportunity, as always, to ask your questions, so we welcome those. We'll kick off in a moment with an introduction and sharing of our strategy from our MMS CEO, Rob De Luca. Rob will be followed by presentations from the respective heads of our 3 business segments who will provide us with an overview of their businesses, together with insights into their strategic priorities. Fortunately, we'll then hear from our CFO, Ashley Conn, many, if not all of you, who already know, and Rob will come back to us and talk about our sustainability focus and conclude the formal presentations. And then finally, we'll have some time for questions at the end. For those of you -- and for those of you who are in person today, at the conclusion of the session, you may have seen coming up here, there was a little MJ -- sorry, MG, there was a Mini there, MGs are great cars as well, by the way. So, please go down and have a look. Such vehicles will become much more commonplace on our roads in the coming months and years, as we play -- as we as MMS, play a very proactive role in helping with our customer's transition into low and zero emission vehicles. But for the moment, I'd now like to introduce and welcome our CEO and MD of the MMS group, Rob De Luca. Thank you.

Thank you, Rohan and welcome, everyone, to our MMS investor session. For those of you joining us in the room, more number of you, thank you for joining us here in person and those online, thank you, likewise. As Rohan mentioned, from our perspective, this morning's objective is about helping you gain a better understanding of MMS and its businesses, the key drivers and thematics influencing each of our business segments and helping you gain awareness of the opportunities and strategic priorities. We are progressing to deliver sustainable growth. I'd like to commence on Slide 6 with the key messages on how MMS is positioned to deliver sustainable growth. Firstly, we have a strong executive team in place with diversity and experience and clear alignment in terms of our organizational purpose. Secondly, as a group, we have a number of favorable financial characteristics with a track record of strong total shareholder return over an extended period of time. Thirdly, we are a trusted partner across a diverse range of corporate, government and not-for-profit organizations with strong positions in large and growing markets. Next, as you will hear today, our respective businesses are well positioned to capture opportunities that lie ahead and take advantage of the changing macro dynamics. And lastly, we have in place a very clear strategy focused on 3 strategic priorities across the group, namely excelling in customer experience, driving simplicity and technology-enabled productivity and leveraging our competency-led solutions to deliver sustainable growth. Turning to Slide 7. As I touched on at the outset, we are fortunate to have a committed executive team leading our group who have extensive and deep knowledge of the sectors we operate within, combined with diverse experience gleaned outside of MMS in a range of sectors and businesses. Aside from myself, you will also hear from Kylie, Adam, Sean and Ashley. And Rohan will talk more to their backgrounds as he introduces them across this morning's proceeding. All of our leadership team are here with us today aside from Denise Tung, our Chief Digital Officer, who joins us online. I'd like to take a moment to briefly introduce each of our team members. Firstly, Denise, who you can see her picture on screen, commenced with MMS in September 2022, with accountability for digital strategy, development and launch of customer experiences across our digital touch points for the group. Denise is a seasoned digital professional with over 15 years of experience in product management, digital strategy and marketing, customer experience, platform transformation and agile ways of working across financial services, media and telecoms. Next, Wallace Yim is our Chief Information Officer, joining us in March 2021. Wallace has significant experience in large and complex businesses with strong focus on planning and execution of data and technology-enabled transformations. Next, Helene Gordon is our Chief People Officer, joining MMS in October last year with extensive experience in national and global organizations across diverse industries, including SaaS, financial services, retail, telecommunications and property. And lastly, our MC for today Rohan Martin, our Head of Corporate Affairs and Sustainability. Rohan joined MMS in 2012 with responsibilities, including leading the group's relations with key external stakeholders, including policymakers, regulators and the media, helps lead our sector's industry peak body, National Automotive Leasing and Salary Packaging Association referred to as NALSPA. Now turning to Slide 8. MMS has a track record of delivering strong total shareholder return and EPS growth with favorable financial characteristics. Since IPO, MMS has returned $8.50 in fully franked dividends per share, whilst EPS has grown on average of 16.6% per year since FY 2005. Turning to Slide 9. I will now spend some time talking to our strategic focus to deliver sustainable growth. In considering the opportunities for growth, it's important to recognize that we are starting with a strong platform. Our business model, as outlined on the slide, comprises of 3 main business segments. Importantly, each of which are well regarded as trusted partners to governments, businesses and individuals, providing solutions in making complex matters simple. These trusted positions are underpinned by our common core competencies of managing enterprise to business, consumer relationships in broad ecosystems, navigating complexity in regulated and government environments, claiming and payment processing at scale, leveraging technical systems and data and managing a broad range of benefits arrangements. Over time, each of our core businesses have continued to deliver high levels of customer satisfaction, hold strong positions in a number of key markets we operate within and combined to have favorable financial characteristics, namely attractive margins, strong cash generation and high returns. Combined, these characteristics provide a strong platform from which we can leverage and create opportunities across our segments. Now moving to Slide 10. I'll touch on some of the key macro thematics, [Technical Difficulty] existing business, which are guiding our strategic focus. Whilst the segment executives will touch on a number of these this morning, they include increasing government spending in areas like health and aged care, which is driving an increase in related employment where our businesses are already well positioned and exposed; increasing momentum towards decarbonization with emerging policy settings and targets to favorably support Australia's transition to low and zero emissions vehicles; the complexities of economic conditions like higher interest rates and inflation in tight labor market; the emergence of new vehicle distribution models, which provides opportunities to leverage our existing competencies and relationships; ongoing growth in the NDIS with an increasing shift towards planned management as a preferred model by participant and a way to support the government's financial sustainability and integrity objectives; organizations continue to consider and increase what they selectively outsource to focus on their own competencies and assist them in achieving operational efficiencies; the increased digitization and use of insights to create enhanced customer experiences and revenue opportunities from the personalization of services; and accelerated use of technology, robotics and analytics to drive greater efficiencies and standardization in our operations. Overall, we believe we are well positioned to take advantage of these factors, which are shaping our business as we look forward. If we now turn to Slide 11 and recognizing our purpose and harnessing the strength of our platform and our core competencies. Our vision is to be the trusted partner providing solutions in making complex matters simple. In order to do this and to take advantage of the attractive opportunities presented, we are focusing our efforts across 3 strategic priorities. Firstly, excelling in customer experience through digital and insights-led experiences to enhance our market position. Secondly, driving simplicity and technology enablement to increase productivity. And thirdly, leveraging our culture and competency-led solutions to extend and enhance value. This strategic ambition has clear intent to deliver increased productivity, whilst continuing to earn customer advocacy through strong NPS, elevate the group as an employer of choice, while generating high return on capital employed and earnings per share growth. As a group, we remain excited about executing on our strategy to deliver sustainable growth. Each of our segment executives looks forward to providing you with further detail today on their respective priorities. I will now pass back to Rohan to introduce Kylie.

Thank you, Rob. So, we'll now, as Rob mentioned, move to the first of our business segments. And to do this, we'll have Kylie Chambers, segment CEO of Remuneration Services. Just a brief background, firstly, around Kylie. Kylie has worked in the financial services industry for some 20 years, with experience previously at both AAMI and RACQ. Kylie joined MMS as the General Manager of Operations, RemServ back in 2011. Since then, Kylie has advanced his career and experience at MMS through her appointments as Group Executive of RemServ in 2016 and more recently, CEO of Maxxia and RemServ in 2021, where she is responsible for the delivery of salary packaging and novated leasing through the Maxxia and RemServ businesses. Kylie is an active member of the Australian Institute of Company Directors and is currently completing a Senior Executive Master of Business Administration at the Melbourne Business School. So on that note, I'd like to welcome Kylie. Thank you.

Thank you, Rohan for that introduction, and welcome, everyone. It's a real pleasure to be here today. I'd like to commence on Slide 13 of our pack. But before I do, for those of you who may not be as familiar, our Group Remuneration Services, GRS as we refer it is a trusted provider of workplace benefits enabled by Australian taxation law through the management of salary packaging and novated leasing benefits for employers and employees alike. The employers who we partner with under our Maxxia and RemServ businesses sit across the government, corporate and not-for-profit sectors. They are many of Australia's most respected service providers, particularly across the public health, emergency services and the charity sector, together with a lot of household names in the corporate sector as well. And I'm proud to say that MMS pioneered the salary packaging remuneration services sector right back in 1988. And in 1998, we launched Australia's first novated leasing product. Now roll forward all those years, and I stand here today very proud, albeit not content with our GRS business being the market leader across our sector. That is, #1, in terms of size of salary packaging customers and likewise, #1 in novated leasing customers. I say this, given that we see clear and defined opportunities for future customer growth in the business, together with upside generation through a focus on productivity enhancements. These opportunities relate specifically to the future upside as we realize those novated lease sales that are currently carried over into future periods, as the supply of new cars globally starts to stabilize. The underlying growth we are already seeing with Australia's decarbonization and transition to electric vehicles and the continued expansion of an investment by governments in Australia's health sector, the predominant sector with which we partner with. Our investments in digital channels, digital technology support changing preferences of our customers and our focus on the generation of productivity improvements within the business through both the better, deeper leveraging of technology. So, I'll now talk in a little more detail about the business, some of the opportunities as outlined and our strategic focus in the following slides. I'll also touch on the market dynamics and themes that we're seeing further evolving. Now turning to Slide 14. In terms of the size and scale of our GRS business, as at the end of 31 December 2023, we had just on -- 386,000 salary packages under management, a rise of 6.1% on PCP and pleasingly, taking us to #1 in the sector as at the end of the period. The uplift in salary packages was attributable to both organic growth and the onboarding in the period of new client wins achieved in FY '22. In relation to novated leasing, our total novated lease units rose to a record 74,090 by the end of December 23, up 3.3% PCP. With sales momentum benefiting from ongoing customer and client focus, this result maintained our leadership position across the sector at period end. Pleasingly, one of the most important measures being how we are perceived by our customers, our average Net Promoter Score, NPS, for the 6 months ended 31 December was 46, above the sector benchmark and above pre-pandemic levels. Now we are pleased with our customer feedback, but we won't be resting on that result. And we continue to build out our digital strategy, which is aimed at transforming how we bring our services to our customers. The strategy seeks to invest in technology that will enable us to improve efficiency, execution and also distribution, focusing on building customer self-service capability. A key focus of our digital strategy across the last 12 months or so has been on building out our capability to deliver personalized and connected customer experiences and better meeting the expectations of our customers. This has resulted in some 93% of customers' payment claims coming via our Maxxia and RemServ digital properties, both app and desktop. And for the 6 months ended December 22, we actually saw 42% of our novated lease sales leads being derived via digital channels, a really pleasing result. I'll now turn to Slide 15 to share some thoughts around how we view the size of the market that we operate in or to put it in another way, the size of the opportunity that is potentially available to us. I'll also speak to some of the broader thematics, which as Rob already briefly touched on, are shaping our business and guiding our broader strategic focus. In terms of the size of the salary packaging market and through the assistance of global strategy consultants, OC&C, we've assessed the total addressable market, or TAM, that is the total outsourced salary packaging market as being in the order of $225 million per annum in terms of administration fees that are able to be generated. Of that $225 million per annum, we estimate that around 85% of that market or around $190 million per annum is where we typically play. That is the medium to large [Technical Difficulty], many across the government and health sectors who partner them with outsourced providers to administer their employee benefits programs. We call this our serviceable addressable market, or SAM, for sure. Now we estimate that our proportion of the SAM has been growing consistently. And as at the end of December '22 sits at just over 39%. Likewise, in the novated lease market, we define the total addressable market as having annualized revenue value of $1.1 billion with the service addressable market, again, where we target and where we specialize, having an annualized value of just under $0.5 billion at some $490 million. We estimate that our share of the serviceable addressable market for novated whilst growing is just under 1/4 of the market at 22.6%. I'd like to now touch on some of the specific macro thematics, which we see and are apparent in the space in which we operate in, and which are directly shaping our strategic priorities within the GRS segment and providing future opportunity. Firstly, our sector is no different to most other service type organizations in that customers are increasingly expecting seamless, personalized experiences across all digital and physical touch points. And to this end, digitally native organizations, that is companies who manage most of their business operations using digital technologies and know exactly who their customers are, together with [Technical Difficulty] understanding their [Technical Difficulty] behavior can create meaningful opportunities to build deeper and lasting relationships with their customers and drive express value from that personalization of experience. This is a key area of focus for our business. And for that matter, MMS as a group, as we see that our customers value convenience, simplicity and personalized service. Next, in terms of technology, we also know that an increasing number of organizations are accelerating their technology and analytics strategies and workplace automation becomes of greater importance in the search to further reduce the cost to serve. We will increasingly lean into the use of such technologies in order to automate processes as and where it makes sense, sense from both a commercial and also a customer perspective. Thirdly, if we think about the sectors today where our services are in high demand and are deeply embedded within remuneration practices, namely [Technical Difficulty] government and aged care sectors to name a few, we are expecting to see continued solid employment growth in these sectors, particularly in a post-COVID environment, where the role of health care, aged care and government have never been more critical. It's their ongoing expansion and investment. Now the next thematic, which has been a key influencer upon our novated leasing business since 2020, in particular, is, of course, that of the level of supply or availability of new vehicles into the Australian marketplace. So, we've moved from an environment where the vast bulk of new passenger vehicles were available to most customers via their car dealer within weeks, if not less, to a solution where in recent periods, a situation where in recent periods, wait of 6 months or more are not uncommon. Now this has seen our business hold a significant and unprecedented volume of what we describe as novated carryover revenue. That is where the delivery of vehicles and therefore, the recognition of it as a sale, and therefore, revenue is held over to a future period waiting for the arrival of the vehicle. Now as factors which have contributed to the vehicle supply delays stabilize, we are already seeing, to some extent, pleasingly, more of our carryover dropper's revenue, noting that the associated origination costs for the sale have already been incurred previously. Now I'll touch on the issue of supply in more detail in a moment. Last, but certainly not least, a key thematic gaining momentum by the day is a global and domestic transition to EVs, as we as a society work to decarbonize road transport. Now as we look forward, an increasing proportion of new car sales will be electric. In fact, one day probably virtually all of us will be driving some form of electrified vehicle. Pleasingly, already off the back of the federal government's Electric Vehicle Bill, which was legislated on the 12th of December last year, which does provide significant savings for an EV facilitated through a novated lease. We've seen a significant uptick in customer demand. And again, I'm going to touch on that further in a moment. So, if we can now turn to Slide 16 in our presentation and focus for a moment on [Technical Difficulty] with regards to new vehicle sales in the Australian market and our experience specifically with regards to EVs. Pleasingly, when we look at the total new car market, as measured by Vfacts, we see that total new car sales are ostensibly back to their pre-pandemic levels. The chart on the left shows a total of 813,000 new vehicles have been sold in Australia for the 9 months of FY '23 to date. This is significantly above the 3 prior corresponding periods, which were all COVID affected and directly in line with a comparative period in FY '19, where a total of 816,000 vehicles have been sold and where the market was around 1.1 million sold units for the full 12 months ended June 30. You'll see in the middle chart in terms of the ramp-up in demand for EVs as a percent of our total novated lease orders off the back of the federal government's EV Bill, which eliminates any FBT payable on eligible employer-provided or low or zero emissions vehicles. So, to illustrate the impact of the legislation, during FY '22, EVs represented only 1.7% of our total novated lease orders, primarily due to their high cost of purchase compared with traditional internal combustion engine vehicles. However, for the third quarter of FY '23, so this will be the first full quarter post introduction of the legislation, EVs comprise 16.1% of all our novated lease orders, so a significant jump. This compares favorably to -- with total EV sales in the Australian market for the first 3 months of the year, which according to Vfacts saw EVs comprise close to 7% of all new light passenger car sales, so compared with our run rate of just over 16%. And when I refer to EVs, I do mean battery electric vehicles and plug-in the hybrid vehicles. And to clarify, there are around 30 low and zero emissions vehicles in the Australian market today, which do qualify for the FBT exemption. No doubt that, that number will continue to grow as interest in EVs intensifies and also with initiatives from government, notably those which will also flow from the federal government's national EV strategy announced a week or so ago, which will heighten demand and interest in EVs in our view. That being said, limitations also extends to EVs with decent supply on specific models. However, we do continue to monitor this closely. Clearly, it's still early days to understand the longer-term trend, particularly in response to the EV Bill. However, there's undoubtedly heightened customer interest and demand. And we're very much focused on playing a key role in helping our clients to meet their sustainability commitments and assisting our customers to transition into low and zero emission vehicles. Lastly, on Slide 16, you can see the trajectory of our carryover revenue, which is an output, as I mentioned, of the auto supply issues, which originated with the onset of COVID. This, as described earlier, is revenue, which will benefit future periods once these vehicles are delivered to customers. Pleasingly, we have seen some stabilization in auto supply globally and the domestic market. We are also witnessing like stabilization or leveling in our carryover volume, which is also a reflection that customers are now much more conditioned and accepting of having to wait extended periods of time for delivery of a vehicle compared to the time frames pre-COVID. I'll now move to Slide 17 to talk a little bit more about the opportunity with regards to EVs. And why the novated lease channel, in particular, given this FBT exemption is very attractive for those customers considering a low or zero emission vehicle. So, in terms of the exemption, it makes the novated lease in particular, the most cost-effective means to acquire and operate an eligible electric vehicle. The benefits provided under salary packaging arrangements are specifically included in the exemption. And to be eligible, the car must be a zero or low emissions vehicle. It must be under the current 84,916 fuel-efficient luxury car tax limit and it must be the first time the car is both held and used after 1 July, 2022. I also note that the federal government will complete a review into this exemption by mid-2027 to consider electric car take-up. The legislation helps to address the higher cost of EVs, which has acted as I mentioned, as one of the key barriers for Australians when considering making the switch. As depicted here on Slide 17, novated lease holders are now able to own and operate an eligible EV at a total cost, which is at least in line or more favorable than a comparable traditional ICE vehicle. And this represents a significant change in the Australian EV landscape. In the examples that we've shown here, where an employee is earning $100,000 per annum, driving 15,000 kilometers and [ letting ] the vehicle for 4 years, the FBT exemption is projected to save a Tesla 3 driver, more than $5,000 per annum of the cost of their lease compared to holding that lease before the FBT exemption. So, that's more than $20,000 over the term of the lease. And just as importantly, the total out-of-pocket annual cost, which this does include the lease and all running costs of the vehicle for that Tesla valued at $66,000 is nearly $200 less per annum to own and operate compared with a like petrol vehicle that costs $41,000 to buy, so some $26,000 difference in the vehicle purchase price. It's a significant savings indeed and addresses the imbalance between the price of an EV and ICE. And it's played a key role in dampening our EV uptake aside from other issues such as charging availability, vehicle driving and model range, which continue to be considerations when purchasing an electric vehicle. Now with the FBT exemption really positioned to help drive Australia's transition to EVs via employers and their employees, we take seriously our role and the associated opportunity in supporting the shift as the largest novated leasing provider in Australia. That is why we're focused on developing our supporting EV ecosystem and aligned our resources and our activities to focus on building awareness through educational campaigns, presentations and events with our client and [Technical Difficulty]. I'll now move to my last slide, Slide 18, to importantly touch on the strategic priorities with our focus and concentration in the GRS businesses. Our stated ambition and intent is anchored on creating differentiated leadership in the markets in which we operate. That is the salary packaging and novated leasing sectors. We are focused on achieving this through 3 core areas of strategic focus, as Rob has already outlined. Pillar 1 focuses on excelling in customer experience through investments in both data and digital to create more compelling and differentiated customer propositions, ultimately improving participation and reducing churn in our portfolio. Already in this regard, we are investing in an innovative employer portal to lift the client experience through enhanced targeting and timely reporting, and we have launched what we are calling our Single Source of Truth initiative to consolidate some 16 different databases into one in order to enable and leverage data-driven personalization and to drive future customer growth and understanding of course. Pillar 2 focuses on deepening our leverage of technology, the business generate product fee enhancements, notably improving our cost to serve. This includes ongoing investments directly targeting that enhanced performance in our Maxxia and RemServ apps and the deployment of new features, which increase customer interaction and importantly, reduce the level of inbound volumes of work, which our people have to manually handle, ultimately improving productivity. In addition, we are focusing on what I would describe as back-end simplification, where we are looking at automation of manual processes through the use of multiple technology options to best optimize productivity and also margins in the business. The third pillar, competency-led solutions focuses specifically on leveraging our strong relationships across the automotive market ecosystem, including in the supply chains and our well-developed understanding of the automotive market and novated product. To deliver market-leading EV products and solutions, again, helping to make the transition into EV for our customers as seamless, painless and attractive as possible, while generating increased commercial return. Important in extending our reach across the EV market is the formation of strategic partnerships in areas such as the provision of vehicle charging at home, whilst deepening our leverage of the various EV incentives and subsidies, which both the federal and state governments have in place and they're continuing to foster and encourage in the race to decarbonize. Clearly, there are also a range of other initiatives we have in place as we focus on cementing and further leveraging our position of leadership across salary packaging and novated leasing. As I stated at the onset, with a clear and defined opportunities for future customer growth, together with upside generation through a focus on productivity enhancements and other opportunities in markets in which we have extensive experience as a trusted partner. Thank you for your time today, and I'll now hand back to Rohan.

Great. Thank you, Kylie, for those comprehensive insights. We'll now turn to the next of our segments in terms of our Asset Management Services business, where we'll hear from the segment's CEO, Adam Morrison. By way of background, Adam joined MMS as part of the Interleasing acquisition way back in 2010 and is now CEO of our Asset Management Services division, as I've said. Adam has a strong finance background, having commenced his career at GE Commercial Finance in 1998. Across his time at MMS, Adam has held leadership roles across the full spectrum of the asset management business before being appointed to the role of CEO, Asset Management Australia-New Zealand in July 2018. Adam is responsible for creating Interleasing's first Principle and Agent Agreement and was instrumental in developing new funding projects for the group, including rent to purchase and FlexiPoint lease alternatives. More recently, Adam has overseen the establishment and management of the JustHonk Used Car sites, of which he is the DP or the Dealer Principle. So on that note, thank you, Adam.

Thank you very much, Rohan, and Good morning to everyone. It's a pleasure to be with you here today. I'll start off on Slide 20. Asset Management Services or AMS as we refer to it by way of background, is a full range provider of fleet management services, including finance origination across a range of blue-chip corporate organizations, governments and non-for-profit organizations [Technical Difficulty.] Interleasing was acquired by MMS back in 2010 from GMAC Australia. Our role is to assist these organizations our clients, maximize the value of their assets through tailored fleet and commercial asset solutions, including asset finance solutions. Importantly, we focus very much on being a dedicated specialist player, not necessarily aiming to compete with the larger low-margin, high-volume players, but rather targeting those areas of the market, will we believe we have or can create sustained competitive advantage. Asset Management Services also includes our finance aggregation businesses namely NFC and UFS, which were acquired by MMS back in 2015 as a part of the purchase of the Presidian group. NFC is a specialist finance aggregator, which aggregates new loans for both businesses and consumers in both secured and unsecured lending. It access a wide range of lenders and products to brokers, ranging from traditional secured finance products such as channel mortgages to innovative cash flow funding solutions. Our UFS brand also delivers tailored financial solutions to customers and businesses aggregating independents to deal predominantly in asset financing and financing broking services for cars, vans and recreational items such as boats and caravans. The AMS segment also includes our United Kingdom Asset Management businesses. However, they aren't covered by -- we aren't covering our U.K. businesses today, given we've already announced our strategic process, focusing on their ultimate divestment. In terms of focus areas and opportunity for the AMS business, it really is in 3 key areas. Firstly, we're prioritizing and making the right investments in technology across both the fleet and aggregation businesses to enable and ultimately achieve meaningful productivity improvements. Some of this work is pleasingly already underway. Secondly, and we have already heard from Kylie talk about the novated business. The transition to low and zero emission vehicles as fleets of all sizes look to decarbonize as a part of their ESG and sustainability commitments is a significant opportunity for the business, which has been working on for some time now. Thirdly, we are ensuring that we have the right foundations in place when we start to look at growth in our asset management volumes and the renewal of fleet of vehicle fleets as supply of new vehicles globally and of course, here in Australia, does stabilize and fleets can have a more traditional replacement of their vehicle assets. Now turn on to Slide 21, which provides an overview of some of the key metrics within the AMS segment for your information. In terms of number of pure number of assets, we manage both here in Australia and across New Zealand, as at the 31st of December 2022 that totaled around some 14,000 units, ranking us inside the top 10 fleet managers in terms of sheer size. In relation to our NFC and UFS businesses, they are originating in the order of $1.3 billion annually based on a total of $654 million in financing originated in the first half of FY '23. Across aggregation services, our lender panel sits at 39 lenders from some of the big 5 banks to boutique commercial invoice and cash flow funding solutions. In our asset management businesses, over half -- over the first half of FY '23, thanks to our continued focus on the customer, we have achieved a positive Net Promoter Score of 48. Importantly, our NPS results are attributable to our increased focus on the use of various digital assets and platforms to better manage the customer interactions and deliver straight through processing efficiencies. This has resulted in increased utilization of our tailored digital tools and functionality within the business. As an example, in our fleet business, we saw the implementation of OneView platform, which saw in excess of 100,000 individual tasks or processes managed directly through this platform in FY '22. Our OneView is a converged infrastructure management platform that provides a unified interface for the administration of software-defined systems. Through a single interface, we've been able to automate the management and maintenance tasks that traditionally would have been performed manually and requiring a range of different tools. Likewise, in our aggregation business, we have introduced Horizon 2, which is an industry-leading application management system, enabling everything to be in one location for our brokers and integrating them with a number of leading lenders. It enables the capture and tracking the finance applications for both consumer and commercial loans, enables customization with regard to privacy and NCCP compliance and the generation of documents electronically and containing sign-on-glass technology, which also further minimizes manual handling. Pleasingly, at the start of this month, we now have 741 unique users being brokers who are now successfully utilizing the Horizon 2 platform. In addition, we have some 15 lenders and third-party providers are connected to our system via application programming interfaces or APIs for short, which boosts the agility and speed of the transaction handling providing for a better and more efficient customer experience. Now moving to Slide 22, where I'll briefly touch on some of the market -- specific market and macro thematics, we're seeing across the sector that we operate in, and we are shaping the priorities in which the asset management are providing future opportunity. Firstly, in terms of size of the market we operate in and for context, this refers specifically to the fleet management business based on the work conducted for us by the automobility team a global consulting firm, CVA. In terms of fleet management, they assessed the total addressable market to be in the order of 3.4 million units with a serviceable addressable market or SAM, that is the space in which we play and focus being a total of 593,000 units with Interleasing holding 2.9% of that market share. In terms of key sector thematics and influences we look forward, there are really 2 that deserve special attention. Firstly, the decarbonization of fleets to achieve emission reductions and related ESG targets through the transition of ICE fleets over to zero and lower emitting vehicles or EVs as they were more commonly known. A good example here would be the fleets operated by various state and local governments around the country. For example, the New South Wales government has a set target to electrify its passenger vehicle fleet of 12,000 cars by 2030 in order to significantly reduce their CO2 emissions. And many corporates and even not-for-profit organizations are setting themselves similar targets. However, they are seeking the expertise specialist providers such as Interleasing to help them electrify their fleets. They need to consider what vehicles are fit for purpose, how they will be maintained, the cost profile of the vehicles [ than such ] differs, how drivers will recharge those vehicles at premises and on-the-go and what new infrastructure they may need to install to charging them, what green vehicle financing options are available and the list goes on. There are areas that we -- these are all areas that we have developed specialist skills and knowledge of and will continue to evolve as the transition to electric and potentially other forms of power generation deepens. I should also mention the EV FBT exemption legislation, which Kylie talked to earlier. The exemption also applies equally to employers where they have drivers assigned to low or zero emitting vehicles under the $84,000 threshold. That is an employer-provided work vehicle, which is normally garaged at home and contains essentially unlimited private use and which under the previous laws would attract FBT payable by the employer. When the FBT bill was announced by the federal government, the Federal Treasurer said that the initiative would save employers on such vehicles around $9,000 a year on a $50,000 EV, a significant saving indeed. Lastly, the key macro thematic we monitor closely and respond to is around the availability of new cars in the market. With limited supply of new cars since the onset of COVID-19 pandemic, both the manufacturers and dealers alike, essentially have placed preference through their channels to private buyers who generate greater margins for the dealers and the OEMs. Given the ongoing supply limitations, resale values -- resale prices have record highs and overlay with significant delivery days has created a high level of inertia across the corporate fleets. Pleasing, however, as auto supply stabilizes and which is data to, therefore, greater stock availability into the corporate fleet market. We anticipate the normal course of business seeing an uptick in the renewal of fleets and therefore, sales growth. That being said, as our experience in increasing fleet vehicles being returned to us for sale will also witness a drop in resale prices, which has already commenced occurring in some part -- over the period of time. Finally, I'll turn to Slide 23, where I'd like to talk to the strategic priorities, which are focused and concentrated on for the AMS business. Our stated ambition and intent are relatively straightforward and targeted. They are anchored around delivering specialist solutions that enable our customers to make the very most of their assets. We are focused on achieving this through 3 core areas outlined and focused as both Rob and Kylie had already outlined. Firstly, by meaning of excelling the experience, which our customers receive day in day out, we aim to do this by better leveraging the customer data and our technology investments to improve the service experience and existing to new and existing customers alike and delivering new and innovative services to our clients to assist managing the visibility of their assets, something which is a critical importance to our clients, our Insulation Connect digital tool will play a significant role in this regard. Secondly, our focus on technology-led productivity here, particularly in the aggregation services, we will focus on streamlining our existing platforms under a single proprietary system and the expansion of the business into New Zealand. Furthermore, in terms of proprietary OneView system and fleet, which I mentioned earlier, we will look to better maximize and leverage the system and boost our utilization of OCR technology to drive productivity and improvements throughout the business. Our third area of strategic intent is EV-led, whilst supporting upon and supporting our own ESG commitments, particular with those of our clients across Australia and New Zealand. Here, our focus is around leveraging the extensive relationship we have across the automotive ecosystem to deliver an enhanced market-leading EV offering, which will encompass what I call both tangible and intangible products and services. Education, training and awareness are being examples of what I describe as intangibles, being of critical importance as clients seek to consider and electrify their fleets, while having limited knowledge as a corporate and driver level. We also look to support our clients with a range of leading innovative solutions in terms of their specific infrastructure and charging needs, while also leveraging off the federal government EV FBT exemption legislation, as already discussed for driver-assigned vehicles. So, that's it in terms of my formal presentation. I trust that I provide you with some deeper insights into the business and in light of some of the themes as we see creating opportunity and helping us understand the strategic focus to ensure that we best leverage off the market thematics and continue to deliver some sustained growth for our shareholders. But before I close off, I know I've talked a lot about EV vehicles and our expertise and opportunity presented. Just to help bring that a little bit more to life, I'm going to show a quick video of 2 of Interleasing's clients who we are currently in partnership with that we're helping them with their specific needs in their electrification journey. Thank you. [Video Presentation]

Thank you, Adam and thank you for our clients who currently helped us that video together and share their thoughts. Now our third segment we want to talk to you about today is around our Plan and Support Services business, and I'll introduce the CEO, Sean Dempsey, and is someone who's extremely I'd say, extremely passionate about what does not only about his people, but in terms of the people that we look after help within the National Disability Insurance Scheme. Very much for Sean, it's a passion. And just a bit about Sean first, having joined MMS in 2014, as I said, Sean is now the CEO of Plan and Support Services, supporting the National Disability Insurance Scheme and the participants within the scheme. And Sean really, as I've said, lives that passion and demonstrates a commitment to the people, PSS serves to maximize the value of their plans through education, advice and the protection, importantly, of human rights, which is integral to the scheme. Sean also recognizes the role of PSS plays in contributing to the success of the NDIS through the protection of participant information, management of fraud and increasing plant utilization in areas that help PSS customers, essentially be more active in their communities in their daily lives. Sean is also the accessibility and inclusion champion for MSS. Sean has previously held the position of Group Executive Commercial here at MMS, in which he was responsible for the commercial integrity and profitability for the fleet and novated business and he brings more than 20 years corporate experience, including a range of executive management positions at Suncorp. Sean holds a Bachelor of Commerce from James Cook University and is an active member of the Australian Institute of Company Directors. On that note, I now welcome, Sean. Thank you, Sean.

Thank you, Rohan, for that lovely introduction, and a very Good morning to everyone in the room and online with us today. I'm both very pleased and very proud to be able to speak with you and share some insights into the business that I lead with 280 very, very special colleagues within PSS. We're very proud of the fact that we make a demonstrable difference to tens of thousands of people across Australia who live with disability and the families and the support providers who support them every day. With the 280 people that work with me in the PSS business, we love what we do and we think that very much demonstrates itself in how we serve our customers day in and day out and connect with more than 40,000 service providers and many tens of thousands of other providers and people within the disability sector. Importantly, whilst we see various commentary in the media on a consistent basis about the scheme and its construct and its cost to taxpayers and so on, what we see every day is that the NDIS is making a profound difference in the lives of so many Australians, their carers, their families and their friends. For many, particularly those who in receipt of support of this nature for the first time in their lives, it is truly life-changing. And we cannot ever lose sight of that amongst the debate that we will continue to see relating to the NDIS. Now moving to Slide 26, I will talk in a moment about exactly what it is as a business that we do. But I firstly wanted to outline where we sit in the market to talk about the value we add as a provider and to discuss how we are positioned today to continue to benefit from the growth in scheme participants through the platform we have in place we believe, is fairly scalable. So, in terms of where we fit in the market, we are the second largest Plan Management provider in a market, which has some 1,500 planned managers as of the end of December 2022. At that time, there were some 573,000 participants in the scheme, with this number expected to continue to grow strongly, with more than 1 million scheme participants forecast by the end of year 2032 and close to 1.15 million by the end of 2035. So, the scheme has significant growth still to be realized. And as I will touch on later, we are continuing to see a growing number of participants make use of a planned manager for the administration of their plan. More importantly, we are seeing growth in the use of Plan Management due in part to the fact that we are directly supporting the NDIS objectives of providing choice control to participants and in supporting the financial integrity and sustainability of the scheme. The integrity and sustainability aspects are responsibilities that we take very seriously, and we continue to invest resources and to ensure that scheme integrity is of utmost importance to PSS. In terms of the sector we operate in, as I've mentioned, there are some 1,500 planned managers registered with the NDIS, providing services to scheme participants. From a scheme efficiency and efficacy perspective, we do not think that this is necessarily in the best interests of participants or government in the long term. It is particularly so outside of the largest providers that a rather fragmented market, and therefore, a market where we see there is opportunity for consolidation, some of which has already taken place, including our own acquisition of Plan Tracker in July 2021. Lastly, we have invested to create a technology platform across the business, which is both scalable and customer-orientated and importantly, which will help us drive necessary efficiencies in the business as we continue to grow. If we move to Slide 27, I will talk about our business in a little more detail. Specifically, what do we do as planned managers and support coordinators. By way of background, Plan Management provides funding -- sorry, planned management funding applies to providers such as us who undertake a financial administration role, dealing as an intermediary between participants, their service providers and the NDIS. This support is different to other funded supports under the NDIS as it is not subject to reasonable and necessary tests. Planned management funding includes both the planned management establishment fee and an ongoing monthly administration fee. We helped support participants in a range of manners, including paying service providers on their behalf and submitting claims to the NDIS taking the administrative burden away from participants and their families. We maintain records and we provide regular tools to participants to demonstrate the financial position of their plan. We deal with issues of aberrant and even fraudulent activity and we provide information to participants in terms of the appropriateness of the fees that they're paying and the costs of the services that they receive from service providers. In relation to support coordination, we assist participants to understand and implement the funded supports in their plan as well as link them to community to mainstream and to other government services. Our 65 support coordinators assist customers to negotiate with providers and help them optimize their plans to achieve their goals in life. Support coordination, as management is, is defined as a capacity building support under the NDIS. As I've mentioned, we are the second largest Plan Management provider in the market with just over 29,000 customers across PSS as at 31 December, administrating just over $2 billion worth of taxpayers funds annually. And in terms of support coordination hours, we delivered around 38,000 hours of support to participants in the first half of financial year '23 alone and achieved a positive Net Promoter Score of 51 across that time, a result, we continue to be very proud of. In recent periods, we have focused very heavily on improving systems and app functionality for our customers and the providers that we deal with in order to enhance visibility of spending and payment processing times. We know there are enormous opportunities to develop our apps further. We have more to do, but our current trajectory is most pleasing. To help demonstrate the benefit of the visibility that we provide, we are now seeing more than 275,000 interactions on our digital assets monthly, mainly across our customer, service provider and support coordinator stakeholders. Furthermore, across the 12 months to March 2023, we experienced around 1.3 million website page views by more than 400,000 individual users. And during that same period, 70% of all of our invoices were processed directly through the digital assets that we have successfully implemented in PSS. I'll now turn to Slide 28 where I would like to talk to, firstly, the value which plan management brings to the NDIS in terms of how we both support the scheme and participants of the scheme, ultimately supporting the long-term success, integrity and sustainability of the NDIS. In terms of the service that Plan Management provides, our service pays service providers, and it helps participants track their spending and their budgets and amongst other benefits, provides guidance as to the appropriateness of service provider supports and pricing. Ultimately, the tangible value of all of these services is that for participants, it provides them with greater choice, greater control and better management of their funding to support their goals in life. We achieve this through optimal utilization and helping customers understand their NDIS plans better and we help them to learn new skills and to be more independent in their daily lives. Importantly, in terms of the benefits that we provide for the wider scheme, we are playing a very important role in supporting scheme objectives. We help participants achieve better outcomes in their daily living, their health and well-being outcomes. We enable greater participation for people with disability in paid work and we help to facilitate increased participation in social and related activities for participants and importantly, for their families. And just as importantly, and a key topic of discussion in the public arena today is the role we play in the integrity and longer-term sustainability of the scheme. We do this through the fraud protection and detection measures we have embedded within our systems, together with the transparency of costs, which we afford both participants and the government in relation to the costs that providers charge NDIS participants. I would also like to point out that as we will see on the next slide, planned managers currently manage 58% of all NDIS plans that are active. Yet the fees that we receive and all planned managers receive for providing services represents only 1.35% of all NDIS payments. Lastly, on this slide, I've included some key statistics directly from our business in the 2022 financial year to help demonstrate the value that we believe is being derived from the services that we provide. I will just focus on the numbers in the box -- in the bottom right-hand corner, which go to scheme integrity and the efficiencies for the scheme that we are able to generate. In financial year 2022, we had nearly $30 million worth of NDIS supplier invoices that we did not pay post conducting our own integrity and validation checks. We identified 23 significant and separate cases of potential fraud that were referred to the NDIS Quality and Safeguards Commission for further investigation. And in terms of efficiencies for the scheme deriving greater use for participants, just over 1/3 of the services that we paid in 2022 were under the maximum price guide limit, equating to around $68 million in annualized savings to the NDIS, a number, again, that is quite extraordinary and something that we take very seriously. So in summary, we feel very confident in the value that we provide to participants to their families, to their support networks and very confident in the value that we provide to government and the NDIS regarding long-term sustainability and the integrity of the scheme. I'll now turn to Slide 29 to look at the Plan Management landscape in terms of its shape, current size and projected growth. In terms of the Plan Management market, the total addressable market is 573,000 participants. That is, if 100% of today's scheme participants utilize the services of a planned manager. And in terms of PSS, our share of that total addressable market is currently at 5.1% at just under 30,000 participants, December 31, 2022. In terms of the broader scheme, the number of participants are forecast to continue to grow by about 6% per annum as we can see in the chart in the top right-hand corner of this slide and this is forecast to reach more than 1 million participants by 2032. You will also see from the NDIS growth chart on the slide, that the percentage of all plans managed by a planned manager has grown from just 1 in 5 plans in June 2018 to well in excess of half of all plans being planned managed at December 2022, with a consistent growth profile over the last 5 years. And as I've already mentioned, you can see that payments to all planned managers are only 1.35% of total payments made by the scheme and that cost is declining as a total proportion of scheme expenditures. Finally, for this morning, if we turn to Slide 30, I'll briefly talk to the strategic priorities, which we and the PSS business are focusing our attention on and our investment in. Our stated ambition as a division is clear and our intent is also clear. That is to best leverage the scalable platform that we have built to empower better outcomes for people living with disability. And we are focused at achieving this through 3 core areas of strategic focus as my colleagues have already outlined. Firstly, we aim to excel in the experience had by our customers by further enhancing our self-serve customer and supplier dashboards, ultimately helping people improve their experience of our business and for NDIS participants to increase the utilization of their NDIS plans. We will also invest further to leverage the relationships that we've built across the disability sector and we will better utilize the data sets that we've built from inception to grow our market share further. Secondly, our focus is around technology-led productivity specifically, including the completion of the full integration of the land tracker business, which was acquired in July 2021 to best leverage a scalable platform. We are also looking to increase the utilization of our digital assets and our APIs to better manage invoicing, whilst also continuing to focus automation on a range of specific back-end processes to improve customer experience and improve our business productivity. Thirdly, as we have consistently said, we will continue to consider non-organic growth opportunities as they become available and where they make sense to our business. And critically, we will remain focused on fraud detection capabilities to support evolving NDIS requirements in the best interests of the scheme and the participants of the [ scheme ]. Now that's formal part for me. Again, I thank you for your time. I trust that I've been able to provide you with some deep insights into what we do, which we think we do very, very well. We think the broad sector within which we operate and our priorities within that sector are focused on a successful and sustainable NDIS scheme. And we believe that our priorities place us in an even better position to provide improved outcomes for NDIS participants and people with disability in this country. In talking about those individuals, I'd like to finish off with a short video, where we will hear briefly from 2 of our customers, one, a Plan Partners customer, one, a Plan Tracker customer as to how we contribute to their experience with the scheme and how we help them best navigate their way through life. [Video Presentation]

Thanks very much, Sean. Again, for those customers who are in the video, I mean they were just 2 of probably nearly 30,000 examples that we've got in the business and how we're helping to play a meaningful role in their life. So, thank you, Sean. Moving on now, I'd like to now introduce someone who's very well known to all of you. So therefore, I won't read through his bio. Ash will talk to us around the financial performance and the associated capital management of the group. So thanks, Ashley Conn.

So thanks, Rohan, and Good morning to everyone, and it's thanks very much for taking the time with us today, and it's great to see so many familiar faces and supporters of the McMillan story. So, thanks for coming along today. Turning to Slide 33, if we can. As mentioned at our half year results, McMillan is in a sound financial position. We have a strong balance sheet and a business with high cash flow generation and a framework for allocating that capital going forward. In terms of our balance sheet, as of the 31st of December 2022, we had an overall net cash position of $43.7 million, excluding the fleet funded debt. And in the first half, the business had cash flow conversion of UNPATA of 129%. As mentioned at our FY '22 full year results, we have a clear framework for optimally deploying the capital that the business generates. So first of all, our priority is going to be to invest in the business for sustainable growth. This is both from an operating and a capital expenditure perspective. From there, we'll look to deploy capital to fund strategic acquisitions that are consistent with the strategy that we've outlined. After that, capital will then be dedicated to any deleveraging that needs to occur. And following on from there, if surplus capital remains, we'll look to return capital to shareholders, firstly, via fully franked dividends. I'd note that we've also been clear around our dividend policy and that we will look to pay out between 70% to 100% of UNPATA. During the transition period of the Warehouse, this payout ratio reference will relate to normalized UNPATA, and I'll explain a little bit about normalization in a moment. From there, if this surplus capital remains, we'll then do further share repurchases to return net capital to shareholders. I can move on to Slide 34, please, to talk about Onboard Finance. Onboard Finance is an important strategic and financial initiative for the company and in particular, for our GRS novated leasing business. Onboard is important strategically and financially in the benefit -- in terms of the benefits that it has for us. These include -- first of all, it secures and diversifies our funding sources. It increases our annuity-based income. It is importantly a source of overall value per transaction, i.e., that it's positive on an NPV basis for us. And at 20% that we're targeting through on board, it balances the scale in the warehouse versus maintaining a diversity of funding with our P&A finances and providers. In relation to that 20%, we remain on track to achieve 20% of our funding through the Warehouse by the end of FY '23. In relation to our progress, we have now, as of the end of March, the 31st of March 2023, financed $51.5 million of leases through the Warehouse. Importantly, as we continuously mentioned, we will report UNPATA on a normalized basis during this Warehouse transition period. Normalized refers to adjustments made for the negative earnings transition period for the implementation of the funding Warehouse. It normalizes for the Warehouses in-year operating and establishment expenses and for an adjustment for commissions that would have otherwise been received in period had the sales been financed through principle and agency funders rather than through the warehouse. Normalized financials are currently expected to be stated up to and including FY '25. The normalization impact for FY '23 is expected to be $10 million, as I've previously stated. So look, that's all for me at this stage. I'd like to hand it back to Rob.

Thank you, Ashley. Now turning to Slide 36, please. Now in the second year of implementation, MMS sustainability strategy continues to support the business strategy as we strive to deliver on our purpose and vision and help to drive positive environmental and social outcomes across our business and our value chain. As you've heard from Kylie and Adam, we continue to make good progress in supporting our novated and fleet customers with their decarbonization goals by leveraging the EV FBT discount legislation and continuing to reduce our own operational carbon footprint to Net Zero by 2030. We are also progressing well in the implementation of the commitments within our Accessibility and Inclusion Plan and Reconciliation Action Plan introduced during FY '22. Together, these initiatives help to make our operations, products and services, more inclusive for people with disabilities and Aboriginal and Torres Strait Islander people. Recently, we became a member of Supply Nation with a commitment to increase procurement from indigenous businesses in our supply chain. We also continue to focus on health and well-being of our people, assessing and managing our modern slavery risks and pursuing a 40-40-20 gender diversity target across our leadership categories by 2030. We believe that our continued focus on sustainability helps us better respond to non-financial risks and opportunities for our business and ultimately deliver greater value for our shareholders, customers and the communities in which we operate. Now turning to Slide 37. Before opening to questions, let me recap. We have a strong executive team with diverse experience, some of which you have heard from here today. Our business has favorable financial characteristics with a track record of strong total shareholder return, and we are a trusted partner with strong financial positions in large and growing markets. Our businesses are well positioned to capture the opportunities that lie ahead and take advantage of changing macro dynamics. And finally, we have a clear strategy focused on 3 strategic priorities; excelling in customer experience, driving simplicity and technology-enabled productivity and leveraging our competency-led solutions to deliver sustainable growth. Thank you again, and I'll now hand back to Rohan.

Thank you. Thanks, Rob, for that, and thank you to Kylie, Adam, Sean and Ash as well in terms of the insights that [Technical Difficulty] provide us this morning and to those listening online. We'll now just move to -- this is where your opportunity for engagement in terms of our Q&As. We also should have, I think, Mel as the moderator for any online questions as well online. Mel, are you there as well?

Confirming standing by.

I can just hear you. So, the way we'll do this is just -- firstly, we'll start by asking anyone here who's in face-to-face this morning just to -- we'll start with your questions, and then we'll move to any of those that are joining us remotely today. And I might ask maybe Rob and Ash to come out at the front. There's a handheld mic. Also, please, if you just -- if you've got a question, just raise your hand, and we'll bring the microphone to just so that everyone who's streaming can also hear the question as well. And if you do have a question, please just put up your hand once and brings the mic to just to announce your name and where you're from and there's [Technical Difficulty]. So, I'll just hand over to the room now to see if we've got any questions.

Good morning, guys. Thanks for taking the time to present. Chenny Wang here from Morgan Stanley. Maybe I can actually jump straight into an EV question. I think the slide that maybe is relevant is Slide 17, showing the differences in, I guess, call it, headline car prices for an EV relative to an ICE. I'm just kind of interested to understand as EV penetration increases for you guys, how should we kind of think about the economics for you guys there, in a sense that $40,000 for an ICE vehicle in that example and I see some round numbers, call it, $60,000 for an EV, that's a 50% uplift in the car price. That's going to be beneficial for your yield. So yes, how should we kind of think about that from a revenue perspective and also understanding the incremental cost that could actually [Technical Difficulty] as EV penetration increases?

Yes. So firstly, I think as we think about the EV opportunity to some of the statistics and numbers that you outlined, we certainly take the view that overall from a net perspective, we see this as a favorable outcome for the business. We see, obviously, the net amount financed for an EV to be generally higher than the ICE value that we're seeing today. Obviously, how that may play out in the future with more vehicles coming into the Australian marketplace at different price points is yet to be seen. From where we stand today, though, in terms of the net amount financed from a net basis relative to ICE as including obviously the offset associated with petrol and other aspects, we still see that as more favorable in the short term until we see what actually plays out in terms of vehicles in the future.

And maybe just more specifically on that. Should we think about the economic uplift maybe linearly like [Technical Difficulty] increase in prices? How should we think about that relationship.

In terms of the short-term expectations on performance, I think certainly, proportionately, I mean, we're still seeing it's still less than 20% of orders of EV, so obviously, you need to take that into consideration. But in terms of net-net between an ICE vehicle, [ NAB ] and an EV on average, the average is higher for the EVs.

Thank you. Anyone else in the room who'd like to ask a question? Yes. Thank you.

Just on the NDIS opportunity. Are you guys sort of putting that on hold at the moment in terms of organic growth, while the sort of the discussions in the media and the review that's on hold or sort of how you're assessing that opportunity at the moment?

Thanks, Jack. Certainly, from our perspective, as you heard from Sean, we still see the NDIS opportunity is a positive one for a number of the elements that Sean alluded to. Obviously, we're still trying to grow out organically, and we're [Technical Difficulty] jump in that space. As we've articulated previously, we still hold true that we see expectation that the market will consolidate over time and we want to be an active player in that consolidation. Obviously, there's been a lot of attention recently around the NDIS, which comes from time to time as we kind of move into budget period as well. But as Sean alluded to, we don't take away from the, obviously, outcomes of the scheme is trying to achieve and the role that we play in that in terms of helping participants from a social inclusion and obviously trying to find employment and economic outcomes. We see ourselves playing a strong role in terms of supporting the scheme's overall objectives as well. So, we will continue to look at non-organic opportunities that arise and make sure that it fits with from a strategic perspective, cultural perspective and quality.

When you do look at these inorganic opportunities, do you sort of assess any sort of cost savings or synergies you might be able to achieve from it? And how could we look at what you may potentially achieve from acquiring one of the other larger players in the business or in the industry?

So, in terms of when we see opportunities and assess them and obviously, to date, there have been enormous amount of opportunities in the marketplace, firstly, from a strategic perspective, does it give us, obviously, access to any capabilities that we don't have today. As Sean alluded to, we're pretty proud of the platform that we've built as an organization. And so really, when we're looking at businesses, does it give us complementary capabilities, market positions in different geographies or also synergistic opportunities and probably be a combination of any of those factors.

Just in the room, any further questions? Chenny?

Yes. Maybe just a follow-up on that. Obviously, there's a lot that's been made in the media around the NDIS and scope or potential changes that are coming. I guess, probably still early days, but in your mind, how are you guys thinking about maybe the base case [Technical Difficulty]? What can go wrong for your business? What can you get really right? And yes, what's kind of middle of the way type of thinking that you guys are thinking about?