Ashley Services Group Ltd. · ASX:ASH
Ashley Services — H1 FY2015 Earnings Presentation
30 slides from Ashley Services's earnings presentation, Feb 18, 2015
Slide 1: Results Presentation for Half Year Ended 31 December 2014
For personal use only RESULTS PRESENTATION FOR HALF YEAR ENDED 31 DECEMBER 2014 FEBRUARY 2015 1
Slide 2: Notice and Disclaimer
NOTICE AND DISCLAIMER For personal use only This document is a presentation of general background information about the activities of Ashley Services Group Limited ABN 92 094 747 510 (“ASH”) current at the date of the presentation, (18 February 2015). The information contained in this presentation i
Slide 3: Table of Contents
TABLE OF CONTENTS For personal use only Page 1. HALF YEAR ENDED 31 DECEMBER 2014 (1H FY15) RESULTS 4 2. FY15 OUTLOOK 15 3. ASHLEY SERVICES GROUP SNAPSHOT 18 4. APPENDIX 28 3
Slide 4: 1H FY15 Results
For personal use only RESULTS PRESENTATION FOR HALF YEAR ENDED 31 DECEMBER 2014 1H FY15 RESULTS 4
Slide 5: Statutory 1H FY15 Results Compared to Statutory Forecast and 1H FY14
STATUTORY 1H FY15 RESULTS COMPARED TO THE STATUTORY For personal use only FORECAST AND 1H FY14 RESULTS Statutory Actual Statutory Variance to Statutory Variance to 1H 1H FY15 Prospectus 1H Prospectus Prospectus 1H FY14 $m FY15 $m % FY14 $m % Revenue 156.0 160.0 (2.5) 125.9 +23.9 EBITA 6.7 6.7 - 6.7
Slide 6: Pro Forma 1H FY15 Results Compared to Prospectus Forecast and 1H FY14
PRO FORMA 1H FY15 RESULTS COMPARED TO THE PROSPECTUS For personal use only FORECAST AND 1H FY14 RESULTS Pro forma Actual Pro forma Variance to Pro forma Variance to 1H 1H FY15 Prospectus 1H Prospectus Prospectus 1H FY14 $m FY15 $m % FY14 $m % Revenue 157.6 163.0 (3.3) 145.4 +8.4 EBITA 10.9 12.3 (11.
Slide 7: 1H FY15 Pro Forma Income Statement
1H FY15 PRO FORMA INCOME STATEMENT For personal use only Pro forma Pro forma Actual 1H Prospectus 1H Prospectus FY15 FY15 Variance 1H FY14 Variance Revenue v forecast $m $m % $m % • Integracom revenue -$3.7M Revenue by Business Channel • Largely offset by - VIC +$1M, QLD+$1M, Labour Hire 135.3 139.8
Slide 8: Integracom Acquisition Integration
INTEGRACOM ACQUISITION INTEGRATION For personal use only What happened • Gained control 21 August 2014 and spent the first two months assessing the management and operations • During IPO process, a change in federal government incentives allocated to students, specifically the removal of the $5,500
Slide 9: Training Business
TRAINING BUSINESS For personal use only TRAINING – GROWTH & MARGIN ANALYSIS 25 $m 50% Key Points 43% 37% 40% 20 36% 36% 40% • Strong performance in our KPIs: 14.8 – Total revenue increasing 2HFY EBITDA15 10.1 30% EBITDA – Average revenue per enrolment 10 20% increasing 1HFY EBITDA 8.9 5 7.7 7.4 10%
Slide 10: NSW Smart & Skilled
NSW SMART & SKILLED For personal use only NSW Smart and Skilled (Demand Driven Model) • ASG Training received Smart & Skilled contracts for both its RTO’s Ash Pty Ltd and VTA Pty Ltd • The total financial allocation across our RTO’s was significantly lower than expected • Funding allocation largely
Slide 11: Labour Hire Business
LABOUR HIRE BUSINESS For personal use only LABOUR HIRE – GROWTH & MARGIN ANALYSIS Key Points $m 9.9 10 12% • 1H FY15 revenue growth of ~8% 7.5 7.3 4.4 8 achieved over 1HFY14 2HFY EBITDA 5.9 7% 6 3.9 5.0 EBITDA 6% 3% 4% • Increase in EBITDA margin in 4 4% 2% 1HFY15 1HFY EBITDA 3% 5.5 2 3.4 EBITDA mar
Slide 12: 1H FY15 Pro Forma Cash Flows
1H FY15 PRO FORMA CASH FLOWS For personal use only Key Points Actual 1H FY15 • Statutory operating cash outflow is ($12.2M) $m EBITDA 11.4 • Statutory operating cash also includes $2.2M of IPO and acquisition related costs expensed/paid Changes in Working Capital (15.7) • $10M of the working capital
Slide 13: 1H FY15 Actual Statement of Financial Position
1H FY15 ACTUAL STATEMENT OF FINANCIAL POSITION For personal use only Actual Pro forma Actual Working capital 31 December 14 As at 30 Jun 14 • Increase in labour hire WIP and trade $m $m receivables is seasonal ($10M). Already Cash and Cash Equivalents 9.3 19.1 reduced by end of January 15 Trade & Ot
Slide 14: Strong History of Revenue and EBITDA Growth
STRONG HISTORY OF REVENUE AND EBITDA GROWTH For personal use only Pro forma Group revenue Pro forma Group EBITDA 350 $m 35 +8.3% $m +27.9% 311.0 29.2 300 287.1 30 153.4 141.7 17.6 250 23% CAGR 25 22.9 24% CAGR 200 20 13.4 176.0 2H 162.4 2H 150 137.0 15 2H 157.6 2H 145.4 100 10 12.5 12.5 13.0 11.6 9.
Slide 15: FY15 Outlook
For personal use only 1H FY15 RESULTS PRESENTATION FY15 OUTLOOK 15
Slide 16: FY15 Outlook Statement
FY15 OUTLOOK STATEMENT For personal use only ASHLEY SERVICES GROUP REAFFIRMS ITS STATUTORY PROSPECTUS FY15 FORECAST, THE GROUP FORECASTS A PRO FORMA $1.7 MILLION EBITDA SHORTFALL Revised pro forma Prospectus Revised statutory Prospectus forecast Pro forma forecast forecast statutory forecast $m $m $
Slide 17: Results Highlights
RESULTS HIGHLIGHTS For personal use only • Integration and strengthening of Integracom business within four months • Entry into international student market • High staff engagement following IPO • Continued organic growth of non-telco training • Continued focus on delivering employment outcomes – in
Slide 18: Ashley Services Group Snapshot
For personal use only 1H FY15 RESULTS PRESENTATION ASHLEY SERVICES GROUP SNAPSHOT 18
Slide 19: Business Overview
BUSINESS OVERVIEW ASHLEY SERVICES DELIVERS VOCATIONAL EDUCATION AND TRAINING (VET), LABOUR HIRE AND For personal use only RECRUITMENT SERVICES DELIVERED THROUGH A MULTI-BRAND STRATEGY Training Overview of Ashley Services Ashley Services was founded in 1968 and is one of the largest integrated VET
Slide 20: Business Operations
BUSINESS OPERATIONS For personal use only ASHLEY SERVICES HAS A NATIONAL FOOTPRINT WITH STRATEGICALLY LOCATED OFFICES AND TRAINING CENTRES IN EACH STATE AND TERRITORY TO SERVICE THE DEMANDS IN EACH REGION Offices1 42 Additional Training locations1 62 Staff1 401 Trainers1 149 Qualifications & Courses
Slide 21: An Integrated Model
AN INTEGRATED MODEL THE INTEGRATION OF ASHLEY SERVICES’ TRAINING AND LABOUR HIRE BUSINESSES GENERATES MATERIAL SYNERGIES For personal use only AND VALUE THROUGH CROSS SELLING INITIATIVES AND PROVIDES VALUE-ADDING INTRA-COMPANY SERVICES Ashley Services’ integrated business model Training Holistic a
Slide 22: Key Differentiators
KEY DIFFERENTIATORS For personal use only Student lifecycle: Why do our students choose ASG? • ASG utilises internal trainer advisors to support individuals throughout their education life cycle • Transition programs from un-employed to employed and further education • Community focussed to support
Slide 23: Ashley Services' Training Business
ASHLEY SERVICES’ TRAINING BUSINESS For personal use only ASHLEY SERVICES’ TRAINING BUSINESS IS ONE OF AUSTRALIA’S LARGEST INDEPENDENT VET PROVIDERS Total Enrolments Overview 25,000 23,115 • Ability to deliver training nationally through 42 training offices 20,000 19,802 and an additional 62 training
Slide 24: VET Qualifications
VET QUALIFICATIONS ASHLEY SERVICES’ TRAINING OFFERS A BROAD RANGE OF QUALIFICATIONS AND IS For personal use only FOCUSSED ON THE DESIGN AND DEVELOPMENT OF HIGH QUALITY TRAINING SOLUTIONS Qualification scope and offering Training courses scope summary • Comprehensive and diverse VET offering: 105 nat
Slide 25: Ashley Services' Labour Hire Business
ASHLEY SERVICES’ LABOUR HIRE BUSINESS For personal use only ASHLEY SERVICES’ LABOUR HIRE BUSINESS IS A SPECIALIST AUSTRALIAN LABOUR HIRE BUSINESS Established relationships Overview • Established, specialist labour hire business founded in 1968 • National coverage and scale Currently employs ~3,9
Slide 26: Ashley Services' Clients
ASHLEY SERVICES’ CLIENTS LABOUR HIRE HAS ESTABLISTED AND LONG TENURE RELATIONSHIPS WITH HIGH For personal use only QUALITY CLIENTS Revenue by Industry Clients • Diversified client base with more than 267 active clients; • Strong presence in the warehouse, logistics, fast-moving consumer goods, food,
Slide 27: Growth Drivers Update
GROWTH DRIVERS UPDATE For personal use only Growth plans at IPO Progress to date • Leverage Labour Hire and other corporate relationships to • Announced contract with major labour hire client DHL to extend contract to include expand corporate market share training operations • Introduction of DDM in
Slide 28: Appendix
For personal use only 1H FY15 RESULTS PRESENTATION APPENDIX 28
Slide 29: Appendix 1: 1H FY15 Statutory Income Statement
APPENDIX 1: 1H FY15 STATUTORY INCOME For personal use only STATEMENT Statutory Statutory Statutory Revenue Actual 1H Prospectus 1H Actual 1H • Below forecast $4M; Proforma shortfall less FY15 FY15 Variance FY14 Variance $m $m % $m % the pre-acquisition Integracom shortfall ($1.5M) Revenue by Busines
Slide 30: Appendix 2: Reconciliation from Statutory to Pro Forma Income Statement
APPENDIX 2: RECONCILIATION FROM STATUTORY TO For personal use only PRO FORMA INCOME STATEMENT Reconciliation from statutory EBITDA to Pro forma EBITDA Note 1 1H FY15 $1.7M adverse to Pro forma prospectus forecast $m Note 1H FY15 forecast Statutory EBITDA 7.3 7.3 Note 2 GST on float costs Pre-acquisi
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