Smart Parking Limited · ASX:SPZ
Smart Parking — H1 2025 Earnings Presentation
55 slides from Smart Parking's earnings presentation, Feb 17, 2025
Slide 1: H1 FY25 Results, Acquisition and Equity Raise
Smart Parking Limited (ASX:SPZ) H1 FY25 Results, Acquisition and Equity Raise February 2025 CEO Paul Gillespie Not for release to US wire services or distribution in the United States smartparking.com
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer Introduction No representation, warranty or assurance (express or implied) is given or made in relation to any forward-looking This presentation (Presentation) is dated 17 February 2025 and has been prepared by Smart Parking Limited statement by any person (including
Slide 3: Important Notice and Disclaimer cont.
Important Notice and Disclaimer cont. Distribution limited agents, partners, consultants and advisers (together the Lead Manager Parties), have authorised, permitted or This Presentation has been prepared for publication in Australia and may not be released to US wire services caused the issue or lo
Slide 4: Table of contents
Table of contents 1. Acquisition Overview 2. Strategic Rationale 3. Financial Summary 4. Equity Raising Overview 5. H1 FY25 Results 6. Key Risks, Offer Jurisdictions and Underwriting Agreement Summary Acquisition and Equity Raise Presentation | smartparking.com | PAGE 4
Slide 5: Executive Summary
Executive Summary Acquisition Overview Overview of Peak Parking Strategic Rationale • Smart Parking has entered into a binding agreement to acquire 100% • Boutique parking operator that • Provides immediate geographic of the issued capital in Peak Parking LP to be effected via an equity provides a c
Slide 6: Executive Summary cont.
Executive Summary cont. Funding 1H FY25 Results Summary Revenue of $31.91m up Adjusted EBITDA • Funding of the Acquisition consisted of: $9.5m2 up 20% 26% - Fully underwritten $45.0m institutional placement (“Placement”) and accelerated non-renounceable entitlement offer (“ANREO”)(together, the (“Eq
Slide 7: Acquisition Overview
Acquisition Overview Acquisition and H1 FY25 Equity Raise Presentation | smartparking.com | PAGE 7 Results
Slide 8: US Market Opportunity
US Market Opportunity SPZ has been researching the US parking management marketplace for 12 months and have considered multiple opportunities Having closely followed Peak Parking for over one year and built a strong relationship with management, Peak Parking 24m is considered to be the most attracti
Slide 9: Peak Parking Overview
Peak Parking Overview Boutique parking operator that provides a comprehensive portfolio of parking services 5 Key Management Fast growing and consistently profitable Management team will remain post acquisition to run the US business 1 with 36% EBITDA margins in CY24 2 107 18 Founded in 2016 and has
Slide 10: Strategic Rationale
Strategic Rationale + Provides immediate geographic Aligns with long term growth expansion into the US, a large strategy, acquiring a high quality and highly attractive market fast growing and consistently with a constructive regulatory profitable business with a framework in targeted states highly
Slide 11: Regional Review - H1 FY25
Regional Review - H1 FY25 | Leveraging core technology and capability in existing and new territories NEW UK NZ Germany Denmark USA GROWTH IN 1,194 total sites 203 total sites 72 total sites Opened Feb 2024 Acquisition of ANPR SITES Up 22%2 Up 64%2 Up 67%2 21 total sites Peak Parking February 2025 G
Slide 12: The Problem We Solve
The Problem We Solve Strong account management capabilities support long term customer relationships. | Leveraging proprietary technology and expertise to enhance Peak Parking Contract with Parking Breach landowner Notice is sent to Diversified portfolio of: owner for payment - 515,000 PBNs issued •
Slide 13: Aligns with Core Growth Strategy
Aligns with Core Growth Strategy Organic growth Acquisitions Enters new territory via strategic expansion opportunity Growth in sites = growth in PBNs = revenue & profitability Strong pipeline of opportunities High incremental margin Adding scale to SPZ to access the leveraging existing fixed larges
Slide 14: Delivers Strong Financial Benefits
Delivers Strong Financial Benefits Track record of profitability delivering >25% EPS accretion in FY25 on a pro forma basis3,4 Revenue (USD$m)1 EBITDA (USD$m)1,3 36.2% 31.8% Expected to continue 4.5 growth via the 45% CAGR2 introduction of SPZ platform, adding Track record of strong revenue growth a
Slide 15: Transaction Structure and Consideration
Transaction Structure and Consideration Structure Earnout scrip issued at a price equivalent to the 10 day VWAP prior to issue date • The acquisition of 100% of the issued shares in Peak Parking effected by way of a share purchase Valuation agreement (“SPA”) • Transaction implies an EV / FY25 EBITDA
Slide 16: Expanding Our Addressable Market - Additional New Territories
Expanding Our Addressable Market - Additional New Territories March | Disciplined acquisition track record - 2024 Completed the complements strong organic growth acquisition of the assets in Local 2023 Parking Security working to upgrade suitable sites in the February UK from manual Successfully lau
Slide 17: Financial Summary
Financial Summary Acquisition and H1 FY25 Equity Raise Presentation | smartparking.com | PAGE 17 Results
Slide 18: Smart Parking Pro Forma Balance Sheet
Smart Parking Pro Forma Balance Sheet Impact of Impact of Pro Forma A$m Dec-24 Funding Acquisition 1 Dec 2024 Current Assets Cash and Cash Equivalents 1,2 8.5 48.2 (43.3) 13.4 Trade and Other Receivables 17.4 - 1.3 18.6 Other Current Assets 0.9 - - 0.9 Total Current Assets 26.8 48.2 (42.0) 32.9 Non-
Slide 19: Equity Raising Summary
Equity Raising Summary Acquisition and Equity Raise Presentation | smartparking.com | PAGE 19
Slide 20: Equity Raising Summary
Equity Raising Summary Offer size and Structure1 • Approximately 51.1m New Shares to be issued under the Equity Raising representing • Fully Underwritten A$45.0m equity raising approximately 14.4% of current shares on issue Retail Entitlement Offer (Equity Raising) consisting of: Offer Price • The R
Slide 21: Indicative Timetable
Indicative Timetable Date1 Equity Raising announced and investor presentation lodged to the ASX Monday, 17 February 2025 Institutional Entitlement Offer and Placement opens Monday, 17 February 2025 Institutional Entitlement Offer and Placement closes Tuesday, 18 February 2025 Results of Institutiona
Slide 22: Sources & Uses of Funds
Sources & Uses of Funds In November 2024, the Group entered into a new debt facility with HSBC Australia (the ‘Facility’). The Facility has subsequently been increased and provides the Group with access to a: Source of Funds A$m • Revolving credit facility: USD $10m available for general corporate p
Slide 23: H1 FY25 Results
H1 FY25 Results
Slide 24: Track Record of Growth and Improving Profitability
Track Record of Growth and Strong growth in revenues and margin Improving Profitability expansion over the last 5 years. Established parking management 35% business in NZ, Australia (Queensland), Germany and Denmark in the last 4 30% 32.0 years. 25% 26.7 Supplemented organic growth with 4 acquisitio
Slide 25: H1 FY25 Highlights
H1 FY25 Highlights Revenue of $31.91m up Adjusted EBITDA Adjusted EBITDA $9.5m2 up margin of 29.8%2 up 20% 26% 139bps 1 * Compared to PCP * Compared to PCP * Compared to PCP Adjusted free cash Cash of $8.5m up EPS of 1.12cps up flow of $6.4m3 up 60% 17% * Compared to PCP * Compared to 30 June 2024 7
Slide 26: Record H1 FY25 Results
Record H1 FY25 Results Delivering record results | CEO Observations Total Group ANPR sites 1,561 - Disciplined execution of strategy delivers continued growth. EPS up 70% on PCP 1,424 - New entry into US market with an expected % highly accretive acquisition in Austin, Texas 31 AGR 1,112 C - Strong
Slide 27: H1 FY25 Business Update
H1 FY25 Business Update | Record results, expanding market opportunities to accelerate growth. FINANCIAL EXPANSION OUTLOOK • Record results – Revenue $31.9m1 and • 1,561 total group ANPR sites • Positive outlook for further profitable growth Adjusted EBITDA $9.5m2. Adjusted under management as at 31
Slide 28: H1 FY25 Financial Update
H1 FY25 Financial Update H1 FY25 Results Presentation | smartparking.com | PAGE 28
Slide 29: H1 FY25 Results
H1 FY25 Results | EPS increase of 70% $m’s H1 FY25 H1 FY24 H1 FY25 vs H1 FY24 Group Profit & Loss ($m) Revenue increased 20% due to the expansion Revenue (excluding interest revenue) 31.9 26.6 20% of sites under management by 28%, Cost of Sales (10.2) (7.6) 34% demonstrating revenue growth in all te
Slide 30: Revenue Growth
Revenue Growth UK parking management revenue | Revenue up 20% from increased sites under management and growth of 17% compared to H1 FY24. expansion into new territories ($000s) German Parking Management revenue 1,295 904 268 of $2.0m up 83% on PCP (H1 FY24: 2,422 31,910 (732) $1.1m) 1,173 26,581 Re
Slide 31: Operating Expense Analysis
Operating Expense Analysis | Increased costs reflect scaling territories for growth and acquisition of LPS ($000s) Overheads include $1.2m from Smart Parking Denmark (commenced 384 13,310 303 operations in February 2024) 1,160 11,463 UK cost increases from April 2025 with UK minimum wage increasing
Slide 32: Positive Free Cash Flow
Positive Free Cash Flow Invested in growth and expansion in new territories | Cash increases to $8.5m whilst funding growth investments whilst increasing profitability and improving the year end cash balance Cash Flow Waterfall ($m) Cash on hand of $8.5m as at 31 December 2024. Free cash flow of $6.
Slide 33: Strong Balance Sheet to Fund Growth Strategy
Strong Balance Sheet to Fund Growth Strategy Maintained a strong balance sheet with positive cash flows Group Financial Position ($m) $8.5m of cash – capital to fund growth $m Dec-24 1 Jun-24 strategies. Current assets 26.8 24.7 The Company was debt free in August 2024 following the final payment of
Slide 34: Growth strategy – multiple drivers
Growth strategy – multiple drivers | Three key pillars for growth Organic growth New territories Acquisitions Growth in sites = growth in PBNs = revenue & profitability High incremental margin leveraging existing fixed Good pipeline of opportunities cost base Investigating and evaluating Adding scal
Slide 35: H1 FY25 Growth Continuing With Traction in New Markets
H1 FY25 Growth Continuing With New site target of 3,000 sites by Traction in New Markets December 2028. | Site growth continuing in FY25, 1,561 Growth target revised: 1,561 global ANPR sites ANPR site count as at 31 Dec: UK: 3,000 under management 1,424 global sites 1,194, New Zealand: 203, Germany:
Slide 36: Strong Growth Underway
Strong Growth Underway | H1 FY25 record PBNs issued, up 22% vs PCP Significant Q2 growth in PBN’s up 27% on PCP creates a strong base for H2 outlook. Parking Breach Notices Issued H1 FY25 PBN’s Issued % by Country H1 FY24 Average Quarterly PBNs 211,015 (up 22% on H1 FY23) Continuing to expand and en
Slide 37: New Territory Growth Underway
New Territory Growth Underway | Successfully scaling new territories NZ: Sites Parking Breach Notices Issued Revenue (000s) NZ continues to show strong growth with 64% H1 FY25 new territory sites under H1 FY25 new territory H1 FY25 new territory 5,680 increase in sites under management from PCP. 123
Slide 38: Growth Priorities – 3,000 New Organic Site Target
Growth Priorities – 3,000 New Organic Site Target 4 New long term organic site target of 3,000 sites under management by December 2028. 4 Long term strategy execution continuing with the highly accretive acquisition of Texas based Peak Parking. The acquisition provides SPZ with access to the largest
Slide 39: Smart Parking Limited Q&A
Smart Parking Limited (ASX:SPZ) Q&A smartparking.com
Slide 40: Supplementary Information
Supplementary Information H1 FY25 Results Presentation | smartparking.com | PAGE 40
Slide 41: Smart Parking Ltd (ASX:SPZ)
Smart Parking Ltd (ASX:SPZ) A global company focused on delivering industry leading technology innovations and solutions within the parking industry Parking management services Provision of parking management solutions, predominantly servicing the retail sector, managing agents and land owners acros
Slide 42: Segment Reporting
Segment Reporting Adjusted Revenue Adjusted EBITDA EBITDA Margin ($000’s) H1 FY24 vs H1 FY24 vs H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY25 H1 FY25 Parking Management 25,022 31,083 24.2% 6,651 7,996 20.2% 26.6% 25.7% Technology Division 3,527 2,554 (27.6%) 2,068 1,580 (23.6%) 58.6% 61.9%
Slide 43: Management Services – ANPR Estate Growth
Management Services – ANPR Estate Growth | Over 1,500 global sites under management ANPR Site Reconciliation FY24 183 APAC/Germany 1,561 /Denmark (76) (46) UK (107) 239 1,424 LPS (68) (34) APAC/Germany (62) UK (109) APAC/Germany (56) 131 1,219 Growth target: UK (75) (24) 1,112 3,000 global sites und
Slide 44: Management Services: How It Works
Management Services: How It Works | Parking management improving customer satisfaction and revenue generation. • ANPR | Automatic Number Plate Recognition • Pay & Display | ANPR Linked Automated Payment System • Site Surveys | Real-time information, analysis and trend data • Parking Attendants | Tra
Slide 45: ANPR: How It Works
ANPR: How It Works | Automatic number / license plate recognition (ANPR) is a reliable, cost effective off-street parking management solution. It is proven to serve a wide range of industries including supermarkets, retail, hotels, hospitals and leisure centres. Smart Parking’s ANPR solution ensures
Slide 46: Smart Parking Technology - Smart Vision
Smart Parking Technology - Smart Vision Provides a revolutionary way to improve Smart Parking continues to innovate in order to drive growth and vehicle number plate recognition managed by Smart Parking - with a particular focus on efficiency in the business. In H1 FY25 our R&D team delivered new op
Slide 47: Smart Parking Technology - Smart Cloud Hub
Smart Parking Technology - HUB is a customer portal that lets land Smart Cloud Hub owners and Smart Parking customers see what’s really happening on their sites Smart Parking continues to innovate in order to drive growth and A full reporting suite allows customers to view efficiency in the business
Slide 48: Key Risks, Offer Jurisdictions & Underwriting Agreement Summary
Key Risks, Offer Jurisdictions & Underwriting Agreement Summary Acquisition and H1 FY25 Equity Raise Presentation | smartparking.com | PAGE 48 Results
Slide 49: Foreign Selling Restrictions
Foreign Selling Restrictions This Presentation does not constitute an offer of New Shares in SPZ in any jurisdiction in which it would be United Kingdom unlawful. In particular, this Presentation may not be distributed to any person, and the New Shares may not be offered or sold, in any country outs
Slide 50: Key Risks
Key Risks | Risk disclosure Risks Specific to SPZ capital expenditure and commitments are denominated in local foreign currencies. The financial performance, cash flows and financial position of the Company are accounted for in Australian dollars and, as the Company Business Strategy does not hedge,
Slide 51: Key Risks cont.
Key Risks cont. Competition brokers, difficulty maintaining the current culture of the Peak Parking business, or inability to access driver The Company competes with other parking management companies. Some of these companies have greater details due to regulatory or legal impediments) , take longer
Slide 52: Key Risks cont.
Key Risks cont. nor presented in accordance with Australian accounting standards and there is risk that financial information within its Enterprise Risk Management Framework and works with external partners to maintain our awareness misstates revenue, assets, liabilities, costs, or key ratios, and o
Slide 53: Underwriting Agreement Summary
Underwriting Agreement Summary Outline of Underwriting Agreement Termination The Company has engaged Canaccord Genuity (Australia) Limited ACN 075 071 466 (AFLS 239052) Absolute Rights (Underwriter) as the underwriter for the Entitlement Offer and Placement under the underwriting agreement The Under
Slide 54: Underwriting Agreement Summary cont.
Underwriting Agreement Summary cont. Absolute Rights cont. • the Company or any of its directors or officers engages in misleading or deceptive conduct or activity in • any debt or financing arrangement, including any default or review event which results in acceleration of the connection with the O
Slide 55: Glossary Smart Parking legal disclaimer
Glossary Adjusted EBITDA – The Board assesses the underlying performance of the Group based on a measure of Adjusted EBITDA which takes into account costs incurred in the current period but which are non-operating and/or are not expected to occur in the future. EBITDA – represents Earnings before in