Kelsian Group Limited · ASX:KLS
Kelsian — FY2023 Earnings Presentation
33 slides from Kelsian's earnings presentation, Aug 30, 2023
Slide 1: Kelsian Group Limited FY23 Full Year Results
Kelsian Group Limited FY23 Full Year Results Investor Presentation Clint Feuerherdt Andrew Muir Managing Director & Group CEO Group CFO 30 August 2023 © Kelsian Group Limited | FY23 Full Year Results | Investor Presentation
Slide 2: 1. Introduction
1. Introduction 2. FY23 Overview 3. FY23 Financial Results 4. FY23 Divisional Performance 5. Growth Strategy & Outlook © Kelsian Group Limited | FY23 Full Year Results | Investor Presentation
Slide 3: Kelsian is a global transport provider
Kelsian is a global transport provider Purpose: To be a world leader in delivering essential journeys through safe, intelligent and sustainable transport solutions, while creating brilliant customer experiences 1 Proforma FY23 assuming full year of AAAHI ownership * Contracted or non-discretionary r
Slide 4: 2. FY23 Overview
1. Introduction 2. FY23 Overview 3. FY23 Financial Results 4. FY23 Divisional Performance 5. Growth Strategy & Outlook © Kelsian Group Limited | FY23 Full Year Results | Investor Presentation
Slide 5: Overview of business divisions
Overview of business divisions Diversified nature of business and geographic spread creates a resilient business model * Revenue weighted average remaining contract term as at 30 June 2023; contract term includes contract extension options ^ FY23 Total Revenue per Segment Note for Australian and Int
Slide 6: FY23 financial results highlights
FY23 financial results highlights* Contract indexation mechanisms effectively hedge inflation for majority of bus businesses Underlying results (12 months to 30 June 2023) Group revenue Operating cash flow Increased multi-tranche debt and $1,417.8m $129.0m revolving credit facilities by $226m ▲ 9.3%
Slide 7: FY23 operational & strategic highlights
FY23 operational & strategic highlights Successfully delivered on organic growth and strategic acquisitions • Retained Region 3 contract in NSW. Signed two seven+ year contracts in NSW. Regions 3 & 13 successfully commenced in August 2023. Regions 2 & 15 to commence in October 2023 • Total new contr
Slide 8: FY23 Highlight: Expansion in Sydney Bus Regions
FY23 Highlight: Expansion in Sydney Bus Regions Success in new Sydney bus services contracts, demonstrates continued organic growth • Region 3 & 13 successfully transitioned and commenced operations in August 2023. © Kelsian Group Limited | FY23 Full Year Results | Investor Presentation 8
Slide 9: FY23 Highlight: AAAHI Acquisition
FY23 Highlight: AAAHI Acquisition Platform of six geographically diversified, highly regarded brands with strong cultural alignment operating in seven states Multi-jurisdictional, diversified footprint across high population growth states in the south and south-west of the USA Diversified footprint
Slide 10: FY23 Sustainability Highlights
FY23 Sustainability Highlights Bus sector offers compelling solution to drive decarbonisation • Current fleet: 73 Battery Electric Buses (BEBs), two Hydrogen Fuel Cell Buses (HFCBs), with plans to expand the fleet to ~375 BEBs & four HFCBs by end of 2025 • Ongoing upgrades to depots and charging inf
Slide 11: 3. FY23 Financial Results
1. Introduction 2. FY23 Overview 3. FY23 Financial Results 4. FY23 Divisional Performance 5. Growth Strategy & Outlook © Kelsian Group Limited | FY23 Full Year Results | Investor Presentation
Slide 12: Summary Profit & Loss Statement
Summary Profit & Loss Statement 92% of annualised revenue contracted or non-discretionary • Revenue growth reflects rebound in domestic tourism (Marine & Tourism) throughout FY23 and flow through of contract indexation Financial year ended 30 June $m 2023 2022^ Growth Growth % Revenue 1,417.8 1,297.
Slide 13: Impact of labour shortages
Impact of labour shortages Labour availability improving in FY24 AUSTRALIAN BUS INTERNATIONAL BUS MARINE & TOURISM Labour shortages Region 6 and Adelaide Singapore During 1H FY23 Recovered in part Structural wage increases Protected via indexation Protected via indexation via fare increases Up to 3%
Slide 14: Continued strong Cashflow generation
Continued strong Cashflow generation Earnings quality & strong cash generation support dividend payments Operating cashflows - $198.9m Financial year ended 30 June $m 2023 2022 Change Change % • Net operating cash flow increased by $13.9m or 12.0% to $128.9m Receipts from customers 1,433.0 1,335.1 9
Slide 15: Balance Sheet
Balance Sheet Reflects impact of AAAHI acquisition • Balance Sheet strength supported several acquisitions in FY23 As at $m 2023 2022^ Change Change % Cash and cash equivalents 157.9 141.1 16.8 11.9% • Successfully upsized debt facilities and raised $278m in equity from Receivables 166.9 118.6 48.3
Slide 16: Capex overview
Capex overview Deployment of capital to underpin growth and refresh tangible asset base • Marine & Tourism: Vessel for Whitsunday Islands, Financial year ended 30 June $m 2023 2022 Sydney dining vessels, Queensland ambulance, Southern Moreton Bay Islands Domestic bus 23.1 9.1 International bus 14.0
Slide 17: 4. FY23 Divisional Performance
1. Introduction 2. FY23 Overview 3. FY23 Financial Results 4. FY23 Divisional Performance 5. Growth Strategy & Outlook © Kelsian Group Limited | FY23 Full Year Results | Investor Presentation
Slide 18: Australian Bus
Overview of FY23 performance | Australian Bus Result reflects continued widespread impacts from labour shortages Financial year ended 30 June $m 2023 2022 Growth Growth % • Contract retention (R3) and new regions (R2, R13 and R15) Revenue 845.0 803.9 41.1 5.1% • Highly defensive nature of contracts,
Slide 19: International Bus
Overview of FY23 performance | International Bus Result reflects cycling of exit of London operations, in part offset by new business All Aboard America! Holdings, Inc. (AAAHI) Financial year ended 30 June $m 2023 2022 Growth Growth % • One month contribution – performing in line with expectations R
Slide 20: International Bus - AAAHI
AAAHI acquisition completed in June 2023 AAAHI has a diversified revenue mix and a strong track record of earnings growth1 Revenue (US $m, LTM) EBITDA (US $m, LTM) and margin profile (%) $236m $208m International Bus - AAAHI Impacted by COVID-19 with $61m Impacted by COVID-19 $180m exit of some low-
Slide 21: Marine & Tourism
Overview of FY23 performance | Marine & Tourism Solid trading result maintaining momentum of 1HFY23, despite consumer headwinds • Capitalised on domestic tourism momentum throughout FY23, Financial year ended 30 June $m 2023 2022 Growth Growth % gradual recovery of international tourism Revenue 329.
Slide 22: Corporate
Corporate costs reflect investment in larger more complex business and global growth Investment to build capability and systems to support growth Information technology & cyber security Financial year ended 30 June $m 2023 2022 Growth Growth % • Head of IT appointment Revenue - - - • IT systems & so
Slide 23: 5. Growth Strategy & Outlook
1. Introduction 2. FY23 Overview 3. FY23 Financial Results 4. FY23 Divisional Performance 5. Growth Strategy & Outlook Sydney, NSW © Kelsian Group Limited | FY23 Full Year Results | Investor Presentation
Slide 24: Kelsian and AAAHI combined
Kelsian and AAAHI combined Focus is on capitalising on the unique growth opportunity Opportunities for Kelsian to leverage core competency • Maintained the 100%* contract retention record • Natural overlap between markets served in Australia and USA ensuring knowledge sharing • Scheduling and optimi
Slide 25: FY23 Highlight: Entry into large and attractive USA market
FY23 Highlight: Entry into large and attractive USA market AAAHI provides an established platform in the USA to pursue growth in existing high population growth states and expand into the US$30 billion+ broader bus transportation market Operations in high population growth states underpin Substantia
Slide 26: Strong pipeline of growth opportunities (organic & acquisitions)
Strong pipeline of growth opportunities (organic & acquisitions) Leaders in transitioning contracts, operational excellence and efficiency AUS / NZ USA SINGAPORE / UK Auckland bus Corporate (incl. LNG) Singapore bus Melbourne bus Government Manchester bus SHORT Education sector - WA Education TERM 1
Slide 27: 1H FY24 Focus Areas
1H FY24 Focus Areas Focus on margin expansion and tender pipeline • Consolidate FY23 acquisitions • Continue to progress AAAHI integration • Leverage scale advantages to drive revenue & margin growth • Prioritising pipeline of organic growth opportunities • Focusing on resolving labour shortages in
Slide 28: Executive Summary
Executive Summary FY23 achievements have established strong foundations for future growth • Resilient, defensive business model with consistent, predictable earnings base • Long-term, low-risk, government-backed service contracts provide natural hedge against inflation • Strong balance sheet, resili
Slide 29: Our brands
Our brands Australian Public Transport Marine & Tourism International South Australia Sydney Harbour North Queensland Whitsundays Gladstone K’gari South East Queensland Western Australia Tasmania Northern Territory Company Purpose: 'To be a world leader in delivering essential journeys through safe,
Slide 30: Appendix
Appendix 1 © Kelsian Group Limited | FY23 Full Year Results | Investor Presentation
Slide 31: Bus sector offers compelling solution to drive decarbonisation, reduce congestion
Bus sector offers compelling solution to drive decarbonisation, reduce congestion Transport is Australia's third largest source of greenhouse gas emissions with highest rate of growth Public commuter transport is a cost-effective method of transport for consumers in a rising cost and inflationary en
Slide 32: Sustainability targets from July 2023
Sustainability targets from July 2023 32 © Kelsian Group Limited | FY23 Full Year Results | Investor Presentation
Slide 33: Important notice
Important notice Disclaimer This document has been prepared by Kelsian Group Limited (ACN 109 078 257) (Kelsian Group or the Company). No party other than Kelsian Group has authorised or caused the issue of this document, or takes responsibility for, or makes any statements, representations or under