Ventia Services Group Limited · ASX:VNT
Ventia Services — FY2021 Earnings Presentation
24 slides from Ventia Services's earnings presentation, Feb 23, 2022
Slide 1: CY21 Results Presentation
Redefining Service Excellence CY21 Results Presentation 23 February 2022 Dean Banks Group Chief Executive Officer Stuart Hooper Chief Financial Officer
Slide 2: Disclaimer
2 DISCLAIMER This presentation has been prepared by Ventia Services Group Limited (ABN 53 603 253 541) (“Ventia”) in respect of ASX/NZX–listed Ventia (“VNT”). This presentation is not an offer or invitation for subscription or purchase of or a recommendation of securities. It does not take into acco
Slide 3: Acknowledgement of Country and Mihi
3 ACKNOWLEDGEMENT OF COUNTRY AND MIHI Ventia would like to respectfully acknowledge the He tautoko te ahurea i ngā kawa me ngā tikanga o ngā Iwi Traditional Owners and Custodians of country throughout whānui o Aotearoa, me ka kawa me ka tikaka o ka Iwi Australia and their connection to land, sea and
Slide 4: CY21 Performance Highlights
4 CY21 PERFORMANCE HIGHLIGHTS Successfully transitioned to life as a listed entity • Safety performance improved with 28% reduction in TRIFR1 • Outperformance on key prospectus forecasts o Pro forma EBITDA of $379.9m is up $14.1m o Pro forma NPATA of $146.8 is up $7.0m o High pro forma cash conversi
Slide 5: Key CY21 Financial Results Have Outperformed Prospectus
5 KEY CY21 FINANCIAL RESULTS HAVE OUTPERFORMED PROSPECTUS Pro forma CY21 as at 31 December 20211 TOTAL REVENUE EBITDA EBITDA MARGIN $4,557.4m $379.9m 8.3% 1% CY20 7% CY20 0.6 PPTS ON CY20 1% ON PROSPECTUS 4% ON PROSPECTUS 0.2 PPTS ON PROSPECTUS NPATA CASH CONVERSION RATIO WORK IN HAND $146.8m 84.9%
Slide 6: Delivering on Our Strategy
6 DELIVERING ON OUR STRATEGY CLIENT FOCUSED INNOVATIVE SUSTAINABLE Work in hand ($ billions) IT system integration Total Recordable Injury frequency rate (TRIFR) 16.8 100% 6.00 82% Percentage complete 79% 72% 13.1 4.32 12.5 55% 11.8 50% Dec-18 Dec-19 Dec-20 Dec-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21
Slide 7: 28% Increase in Work in Hand
7 28% INCREASE IN WORK IN HAND $8.2b Chevron Australia $1b over 10 years 400+ project total work secured Awarded Jul 21 nbn contract–N2P sites across Australia in CY21 Mobilisation Oct 21 $400m over 2.5 years & New Zealand Awarded Jul 21 Mobilisation Jul 21 ~40% of CY2021 total revenue generated in
Slide 8: Strong Performance Across Our Diversified Portfolio
8 STRONG PERFORMANCE ACROSS OUR DIVERSIFIED PORTFOLIO Defence & Social Infrastructure Infrastructure Services Telecommunications Transport CY21 $1.9b $1.2b $1.0b $0.5b pro forma 20.4% on CY20 1.5% on CY20 23.3% on CY201 6.8% on CY20 Total revenue 0.2% on prospectus 0.4% on prospectus 6.3% on prospec
Slide 9: Financial Results
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Slide 10: Foundations in Place to Deliver Prospectus Forecast
10 FOUNDATIONS IN PLACE TO DELIVER PROSPECTUS FORECAST Pro forma Total Revenue ($m) Pro forma EBITDA and Margin ($m/%) 5,500 1 408.61 13% 4,942.6 410 5,000 4,754.5 4,803.8 379.9 12% 4,591.9 390 4,557.4 354.1 354.5 11% 4,500 370 351.5 10% 350 9% 330 8% 4,000 310 8.3% 8.3% 7.7% 7% 3,500 290 7.4% 7.3%
Slide 11: Key Market Considerations
11 KEY MARKET CONSIDERATIONS INFLATION PROTECTION BUILT INTO WORK IN HAND • 94% of work in hand1 has price escalations or panel arrangements with ongoing pricing updates • Limited exposure to fixed price contracts • Flexible workforce model, with over 15,000 employees and access to a subcontractor w
Slide 12: Delivering Cash Backed Profits
12 DELIVERING CASH BACKED PROFITS Pro forma Cash flow conversion of 84.9% $ millions, pro forma CY21 CY20 $ millions, pro forma CY21 CY20 EBITDA 379.9 354.5 Total capital expenditure (36.3) (30.0) Non cash share based payments 7.5 7.5 Capital intensity 0.8% 0.7% (Total capital expenditure / Total re
Slide 13: Delivering Dividend Payout Ratio of 75% for Shareholders
13 DELIVERING DIVIDEND PAYOUT RATIO OF 75% FOR SHAREHOLDERS Cash performance supporting our dividend program Pro forma NPATA1 ($ millions) Dividends 171.8 146.8 • Final dividend to 31 December 2021 of 1.47 cents per share (75% of pro forma pro rata NPATA for the period from 19 Nov – 31 Dec 2021) 119
Slide 14: Investment Grade Balance Sheet
14 INVESTMENT GRADE BALANCE SHEET Liquidity in place affording financial flexibility 31 December 2021 metrics Pro forma Leverage Ratio 1.8x, as at 31 December 2021 Cash on hand $180m 4 Undrawn revolving credit facility $400m 3 Headroom to Total liquidity $580m covenant 2 Term loan $750m 1 Lease liab
Slide 15: Looking Forward
15 LOOKING FORWARD
Slide 16: Key Opportunities for CY22 and Beyond
16 KEY OPPORTUNITIES FOR CY22 AND BEYOND Defence and Social Infrastructure Telecommunications Transport Infrastructure Services Growth in Government spending Growth across core markets and Expansion of existing fixed and Leveraging digital and data for including increasing Defence positioning to sup
Slide 17: High Quality and Diversified Portfolio
17 HIGH QUALITY AND DIVERSIFIED PORTFOLIO GEOGRAPHIC AVERAGE MAXIMUM CLIENT BASE FOOTPRINT CONTRACT TENURE1 400+ 7+ YEARS 100+ clients Project Sites CY21 Total revenue CY21 Total revenue CY21 Total revenue by geography by client type by contract profile NSW 24% NT 7% Public 68% Schedule of Rates 75%
Slide 18: Outlook Supported by Strong Industry Tailwinds
18 OUTLOOK SUPPORTED BY STRONG INDUSTRY TAILWINDS Estimated Addressable Market Size Demand drivers for Maintenance Services across Australia And New Zealand ($b)1,2,3 CY2021F-2025F CAGR: 5.5% Size and growth of asset base 76.9 72.3 10.2 67.7 64.7 62.0 6.0 Outsourcing rates 7.8 28.7 5.6 22.2 Populati
Slide 19: Our Commitment to a Sustainable Future
19 OUR COMMITMENT TO A SUSTAINABLE FUTURE OUR ESG TARGETS ENVIRONMENT SOCIAL GOVERNANCE • Committed to Science Based • Aligned to HESTA 40:40 Vision • Compliance with the ASX Corporate Targets initiative to set emission commitment Governance principles and reduction and net zero targets recommendati
Slide 20: Summary and CY22 Outlook
20 SUMMARY AND CY22 OUTLOOK • Strongly positioned for success in CY22 and beyond • CY22 key pro forma prospectus forecasts reaffirmed: CY22 forecast o NPATA guidance of $171.8m prospectus numbers, o Total revenue of $4,942.6m reaffirmed o EBITDA of $408.6m o Cash conversion of 91.4% • Positioned to
Slide 21: Questions?
21 QUESTIONS?
Slide 22: Appendix
22 APPENDIX
Slide 23: Statutory NPAT to Pro Forma NPATA Reconciliation
23 STATUTORY NPAT TO PRO FORMA NPATA RECONCILIATION $ millions CY21 CY20 Commentary Statutory NPAT 19.5 28.0 • Broadspectrum pro forma adjustments includes NPAT from Broadspectrum for H1 CY2020 prior to acquisition and excludes the financial performance and gain on sale of APP Corporation Broadspect
Slide 24: Pro Forma Consolidated Statements of Profit or Loss
24 PRO FORMA CONSOLIDATED STATEMENTS OF PROFIT OR LOSS CY20 to CY21 % CY21 prospectus $ millions CY21 CY20 variance forecast Total Revenue 4,557.4 4,591.9 (0.8%) 4,501.7 EBITDA 379.9 354.5 7.2% 365.8 EBITDA % 8.3% 7.7% 0.6pp 8.1% Depreciation (108.7) (116.1) (6.4%) (104.8) Amortisation of software (