Slide 1: FY18 Results
— okY18 RESU HITS ad Ne ae 2) RES N1 T {=p} 4) Ay
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Experience Co Limited ACN 167 320 470 (”EXP”) Summary information This presentation contains summary information about EXP and its related bodies corporate and their activities, current as at 28 August 2018. The information in this presentation is a
Slide 3: Agenda
AGENDA • FY18 FINANCIAL PERFORMANCE AND COMMENTARY • FY18 SPECIFIC HIGHLIGHTS • DIVIDEND ANNOUNCEMENT • FY19 OUTLOOK AND GUIDANCE 3
Slide 4: Financial Performance – FY18
FINANCIAL PERFORMANCE – FY18 FY18 FY17 FY18 VS FY17 (%) Revenue ($m) 135.3 89.6 51.1% EBITDAI * ($m) 27.4 21.0 30.6% Normalised EBITDAI ** ($m) 30.2 22.4 34.8% NPAT ($m) 6.8 9.5 (28.4%) Normalised NPAT *** ($m) 14.5 11.2 29.5% *Earnings before Interest, Tax, Depreciation, Amortisation and Impairment
Slide 5: Financial Performance – FY18 (Cont)
FINANCIAL PERFORMANCE – FY18 (CONT) NORMALISED EBITDAI FY18 ACTUAL NORMALISED NPAT FY18 ACTUAL Revenue ($m) 135.3 Revenue ($m) 135.3 EBITDAI ($m) 27.4 NPAT ($m) 6.8 EBITDAI (%) 20.3% NPAT (%) 6.5% One-off items * ($m) 2.8 One-off items ** ($m) 7.7 Normalised EBITDAI 30.2 Normalised NPAT 14.5 Normali
Slide 6: Financial Performance – FY18 (Cont)
FINANCIAL PERFORMANCE – FY18 (CONT) NORMALISED CASHFLOW FY18 ACTUAL FY17 ACTUAL Net cash provided by Operating activities per 4E 14.8 12.6 Finance Costs paid 1.7 1.2 Tax Paid 4.6 5.4 Sub-total 21.1 19.2 Movements in working capital from completion date to end of 1.9 - financial period for acquired c
Slide 7: Financial Reporting of Operating Segments
FINANCIAL REPORTING OF OPERATING SEGMENTS OTHER SKYDIVING SKYDIVING SHARED ADVENTURE SUB-TOTAL TOTAL AUS NZ SERVICES EXPERIENCES Revenue ($m) FY18 52.2 29.1 53.9 135.3 - 135.3 Revenue ($m) FY17 51.7 26.6 11.3 89.6 - 89.6 Growth (%) 0.9% 9.4% 376.9% 51.0% - 51.0% Normalised ** EBITDAI * ($m) FY18 16.
Slide 8: Commentary on FY18 Results (Cont)
COMMENTARY ON FY18 RESULTS (CONT) Tandem Skydiving operations overview: AUS NZ TOTAL Bookings (FY18 vs FY17) (9.4%) 6.3% (4.8%) Tandem Skydives (FY18 vs FY17) (5.9%) 7.4% (2.1%) Processing Rates * (FY18) 80.9% 73.2% 78.4% Processing Rates * (FY17) 77.8% 72.5% 76.2% Tandem Skydiving – customer source
Slide 9: Commentary on FY18 Results (Cont)
COMMENTARY ON FY18 RESULTS (CONT) Australian Tandem Skydiving • The Australian skydiving business is down YOY for the first time in the company’s history; • The 3rd and 4th quarters were affected by unseasonably adverse weather patterns including substantial amounts of rainfall; • The Australian ind
Slide 10: Commentary on FY18 Results (Cont)
COMMENTARY ON FY18 RESULTS (CONT) Tandem Skydiving – Experience Co against the Australian skydiving industry Australian Parachute Federation data * • FY17 vs FY16 saw a 5.42% increase in all tandem skydives throughout Australia • FY18 vs FY17 saw a 7.98% decrease in all tandem skydives throughout Au
Slide 11: Commentary on FY18 Results (Cont)
COMMENTARY ON FY18 RESULTS (CONT) Tandem Skydiving – Experience Co against the NZ skydiving industry New Zealand Parachute Industry Association (NZPIA) data * • FY18 vs FY17 saw a 0.9% increase in all tandem skydives throughout New Zealand • 6-months to June 2018 vs 6-months to June 2017 saw a 2.7%
Slide 12: Commentary on FY18 Results (Cont)
COMMENTARY ON FY18 RESULTS (CONT) Raging Thunder Adventures FY18 FY17 FY18 VS FY17 (%) Revenue ($m) 13.1 12.2 7.4% $m Normalised EBITDAI Contribution to FY18 results 3.8 • FY18 vs FY17 saw a 13.3% increase in passenger numbers for all Raging Thunder experiences • The 3rd and 4th quarters were affect
Slide 13: Commentary on FY18 Results (Cont)
COMMENTARY ON FY18 RESULTS (CONT) Reef Magic Cruises FY18 FY17 FY18 VS FY17 (%) Revenue ($m) 16.6 16.2 2.5% $m Normalised EBITDAI Contribution to FY18 results 3.6 ASX Announcement 3 April 2017 said the acquisition was expected 3.1 to improve the annualised EBITDA by: • FY18 vs FY17 saw a 2.8% increa
Slide 14: Commentary on FY18 Results (Cont)
COMMENTARY ON FY18 RESULTS (CONT) Great Barrier Reef Helicopters Acquired 1/11/2017 FY18 FY17 FY18 VS FY17 (%) Revenue ($m) * 10.8 9.8 10.2% $m Normalised EBITDAI Contribution to FY18 results 3.1 ASX Announcement 11 October 2017 said the acquisition was 2.3 expected to improve FY18 EBITDA by: • FY18
Slide 15: Commentary on FY18 Results (Cont)
COMMENTARY ON FY18 RESULTS (CONT) Big Cat Green Island Reef Cruises & Tropical Journeys Acquired 13/12/2017 & 19/12/2017 FY18 FY17 FY18 VS FY17 (%) Revenue ($m) * 9.4 10.9 (13.8%) $m Normalised EBITDAI Contribution to FY18 results 3.6 ASX Announcement 4 December 2017 implied (via revised 4.0 guidanc
Slide 16: Synergies
COMMENTARY ON FY18 RESULTS (CONT) Synergies Certain synergies have been realised in FY18 further synergies will be realised in FY19 and beyond • Sales & Marketing - The Sales & Marketing team has been restructured and streamlined; redundancies were made in June 2018; • Accounts - Accounts moved to S
Slide 17: Synergies
COMMENTARY ON FY18 RESULTS (CONT) Synergies • Kitchen – A commercial kitchen has been constructed at Adventure House and operations will commence November 2018; accordingly current leased premises will be vacated; all previously outsourced catering will be brought in house during 2H19; • Fixed Wing
Slide 18: Specific Highlights for 1H18
SPECIFIC HIGHLIGHTS FOR 1H18 • Changed company name to Experience Co Limited and launched the parent company brand into the marketplace Experience Co Headquarters in Cairns, North Queensland which Experience Co retail shop in Cairns, North Queensland houses all of FNQ experiences 18
Slide 19: Highlights for FY18 (Cont)
HIGHLIGHTS FOR FY18 (CONT) • Successful completion and integration of Byron Bay Ballooning (Byron Bay, NSW) • Acquisition completed 21 July 2017 • Successful completion and integration of Wine Country Ballooning (Hunter Valley, NSW) • Acquisition completed 18 September 2017 • Successful completion a
Slide 20: Highlights for FY18 (Cont)
HIGHLIGHTS FOR FY18 (CONT) • Successful completion and integration of Blue Ocean Productions (Cairns, Far North Queensland) • Acquisition completed 28 November 2017 • Raised $60.9m through an Accelerated Non-Renounceable Entitlement Offer, oversubscribed by a strong investor base • Successful comple
Slide 21: Dividend Announcement
DIVIDEND ANNOUNCEMENT In line with the company’s dividend policy, a final and fully franked dividend of 1 cent per share has been declared on 28 August 2018 • Record date – 17 September 2018 • Payment date – 28 September 2018 21
Slide 22: FY19 Outlook and Guidance
FY19 OUTLOOK AND GUIDANCE Experience Co Limited advise that the FY19 guidance is as follows: FY19 GUIDANCE Revenue ($Am) 165 – 175 Normalised EBITDAI ($Am) 37 - 41 CAPEX FY19 GUIDANCE Sustaining Capex ($Am) 9 Growth Capex ($Am) 7 Total ($Am) 16 22
Slide 23: Commentary on FY19 Forecast
COMMENTARY ON FY19 FORECAST Forecast: • A 5% reduction in tandem skydives has been budgeted in Australia for the FY19 year vs FY18; processing rates, margins and pricing have been budgeted to remain constant; • No growth in tandem skydives has been budgeted in New Zealand for the FY19 year vs FY18;
Slide 24: Commentary on FY19 Forecast
COMMENTARY ON FY19 FORECAST The business currently: • EXP management has strategies in place to combat the recent softness in tandem skydiving in Australia; • EXP has signed some commercial in confidence agreements that are expected to see passenger numbers increase for all EXP products in 2H19, in
Slide 25: Further Information
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