Kelsian Group Limited · ASX:KLS
Kelsian — Investor Presentation (February 2023)
28 slides from Kelsian's investor presentation, Feb 23, 2023
Slide 1: Kelsian Group Limited FY23 Half Year Results
Kelsian Group Limited FY23 Half Year Results Investor Presentation Clint Feuerherdt Andrew Muir Group Chief Executive Officer Group Chief Financial Officer 23 February 2023 Leichhardt Depot, Sydney NSW
Slide 2: 1. Introduction
1. INTRODUCTION 2. 1HFY23 Overview 3. 1HFY23 Financial Results 4. 1HFY23 Divisional Performance 5. Growth Strategy & Outlook Joondalup Depot, Perth, WA
Slide 3: Introduction to Kelsian
Introduction to Kelsian Long-term, low-risk, government-backed service contracts provide consistent, predictable earnings base * Contracted or non-discretionary revenues ^ Operational Numbers as at 31 December 2022 ‡ Includes Channel Islands © Kelsian Group Limited | 1HFY23 Half Year Results | Inves
Slide 4: 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 5: Overview of business divisions
Overview of business divisions Kelsian bus divisions represent ~75% of group revenue ^ * Revenue weighted average remaining contract term as at 31 December 2022; contract term includes contract extension options ^ 1HFY23 Total Revenue per Segment Note for Australian and International Bus © Kelsian G
Slide 6: 2. 1HFY23 Overview
1. Introduction 2. 1HFY23 OVERVIEW 3. 1HFY23 Financial Results 4. 1HFY23Divisional Performance 5. Growth Strategy & Outlook Swan River, Perth WA
Slide 7: 1HFY23 financial snapshot
1HFY23 financial snapshot* Strong performance from Marine & Tourism business underpins solid growth Underlying results Six months to 31 December 2022 Revenue Balance Sheet strength used to support acquisitions $678.3 million ▲ 6.2% pcp and asset renewal Underlying EBIT Senior net debt Gross operatin
Slide 8: 1HFY23 operational & strategic highlights
Strong rebound in domestic tourism 1HFY23 operational & strategic highlights demand Solid growth in challenging operating environment • Retained Region 3 contract in NSW • Signed new contracts in NSW, commencing in August 2023 (Regions 3 and 13) and in October 2023 (Regions 2 and 15) - to become Syd
Slide 9: 3. 1HFY23 Financial Results
1. Introduction 2. 1HFY23 Overview 3. 1HFY23 FINANCIAL RESULTS 4. 1HFY23 Divisional Performance 5. Growth Strategy & Outlook Brisbane City Cat
Slide 10: Summary Profit & Loss Statement
Summary Profit & Loss Statement 86.0% of annualised revenue contracted or non-discretionary • Revenue growth reflects rebound in domestic tourism (Marine & Tourism) and flow through of contract indexation • Contract indexation mechanisms effectively hedge inflation for majority of bus businesses (fu
Slide 11: Change in accounting for Singapore bus business and one-off items
Change in accounting for Singapore bus business and one-off items Adjustments to non-cash items • Accounting treatment change results in adjustments to non-cash Impact of change in accounting items reported in the International Bus division for revenue, depreciation, interest and certain right of us
Slide 12: Cashflow
Cashflow Underlying business continues to generate strong cashflow Operating cashflow Dividends paid $36.9m $20.7m Net operating cash flow Good earnings quality and down ($1.1) million or (2.9%) strong cash generation support dividend payments Business Cash reserves combinations $95.0m $28.3m Mainta
Slide 13: Strong Balance Sheet
Strong Balance Sheet Capacity to support strategic initiatives and growth • Balance Sheet strength has supported acquisitions made in FY23YTD and continues to provide significant financial flexibility • Disciplined approach to capital management • Gearing ratio (net debt divided by (net debt + equit
Slide 14: Capex overview
Capex overview $44.6 million of capital deployed to underpin growth and refresh tangible asset base • Marine & Tourism: Vessels for Hayman Island, North Stradbroke Island Buses, Sydney dining vessels MAJOR • Australian Bus: Electric buses and depot charging infrastructure, motor vehicles, IT infrast
Slide 15: 4. 1HFY23 Divisional Performance
1. Introduction 2. 1HFY23 Overview 3. 1HFY23 Financial Results 4. 1HFY23 DIVISIONAL PERFORMANCE 5. Growth Strategy & Outlook RATP Dev Transit London JV
Slide 16: Australian Bus
Overview of 1HFY23 performance | Australian Bus Result reflects highly defensive nature of contracts, providing natural hedge in inflationary environment • Industry wide shortage of drivers and mechanics • Rail replacement, special event and charter work suppressed • Higher overtime to maintain serv
Slide 17: International Bus
Overview of 1HFY23 performance | International Bus Result reflects cycling of exit of UK operations in part offset by new business United Kingdom / Channel Islands • Actively pursuing growth opportunities in attractive UK/European market • Acquisition of bus operations in Channel Islands • Participa
Slide 18: Marine & Tourism
Overview of 1HFY23 performance | Marine & Tourism Solid trading result during a challenging operating period • Strong recovery in domestic demand • Gradual recovery of international tourism • Fare increases offsetting inflationary pressure Marine & Tourism • Gladstone / Curtis Island 10-year contrac
Slide 19: Corporate
Overview of 1HFY23 performance | Corporate Investment to build capability to manage growth Information technology & cyber People • IT systems & software • Training & development Corporate • Cyber prevention solutions • Culture and Diversity Manager • Legal resources • Business development Customer e
Slide 20: 5. Growth Strategy & Outlook
1. Introduction 2. 1HFY23 Overview 3. 1HFY23 Financial Results 4. 1HFY23 Divisional Performance 5. GROWTH STRATEGY & OUTLOOK Magnetic Island, QLD
Slide 21: Current focus areas
Current focus areas Pursuing organic and inorganic growth opportunities Extracting efficiencies from recent contract wins / acquisitions • Ongoing organic growth opportunities in resources and education sectors • Leveraging scale advantages to drive revenue and margin growth • Invest in people and c
Slide 22: Attractive organic growth opportunities
Attractive organic growth opportunities Australian Bus & International Bus to benefit from strong tender pipeline of long-term contracts 5 + Years 22 © Kelsian Group Limited | 1HFY23 Half Year Results | Investor Presentation
Slide 23: Trading update and outlook
Trading update and outlook Solid base creates optionality to pursue growth strategy 2HFY23 trading update Outlook • Significant new tender wins in Sydney • Balance sheet strength, strong cash flows and track record ensure well • Labour shortages in Australian bus placed to deliver on growth strategy
Slide 24: Executive summary
Executive summary Highly defensive and resilient business model Strong track record in delivering on growth strategy • Long-term, low-risk, government backed service contracts provide consistent, predictable earnings base and a natural hedge against inflation • Opportunity to leverage synergies and
Slide 25: Appendix
Appendix 1 Impact of Accounting treatment change Joondalup Depot, WA
Slide 26: Reconciliation of Accounting treatment change
Reconciliation of Accounting treatment change Consolidated Kelsian Group impact • The accounting treatment change results in adjustments to non-cash items reported in the International Bus segment for revenue, depreciation, interest and certain right of use assets and associated lease liabilities. •
Slide 27: Reconciliation of Accounting treatment change
Reconciliation of Accounting treatment change International Bus Segment impact • Bus lease payments in the International Bus segment (Singapore) will now be recorded on a net basis rather than a gross basis, resulting in de-recognising the relevant right of use asset and lease liability from the bal
Slide 28: 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
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