Slide 1: FY22 Results Presentation
FY22 Results Presentation Dean Banks – Group Chief Executive Officer Stuart Hooper – Chief Financial Officer
Slide 2: Disclaimer
FY22 RESULTS PRESENTATION Disclaimer This presentation is in summary form and is not necessarily complete. It should be read together with the Company’s Full Year Report 2022 lodged with the ASX on 24 February 2023. This presentation contains information that is based on projected and/or estimated e
Slide 3: Acknowledgement of country and Mihi
FY22 RESULTS PRESENTATION Acknowledgement of country and Mihi Ventia would like to respectfully acknowledge the Traditional Owners and Custodians of country throughout Australia and their connection to land, sea and community. We pay our respect to them, their cultures and to their Elders past, pres
Slide 4: A successful first year as a listed company
FY22 RESULTS PRESENTATION A successful first year as a listed company Financial Outperformance Success in Redefining Service Excellence Delivered on prospectus commitments Client Focus • Revenue $5,167.5m, up 4.6% on prospectus • Achieved $18.0b work in hand, up 7.1% • EBITDA $419.8m, up 2.7% on pro
Slide 5: Strong growth in operating performance delivered in FY22
FY22 RESULTS PRESENTATION Strong growth in operating performance delivered in FY22 Pro forma Financials TOTAL REVENUE EBITDA NPATA $5,167.5m $419.8m $179.6m ▲ 13.4% ON FY21 ▲ 10.5% ON FY21 ▲ 22.4% ON FY21 ▲ 4.6% ON PROSPECTUS ▲ 2.7% ON PROSPECTUS ▲ 4.5% ON PROSPECTUS EBITDA MARGIN CASH CONVERSION WO
Slide 6: Diversified and resilient portfolio underpins growth
FY22 RESULTS PRESENTATION Diversified and resilient portfolio underpins growth Defence and Social Infrastructure Infrastructure Services Telecommunications Transport FY22 pro forma revenue FY22 pro forma revenue FY22 pro forma revenue FY22 pro forma revenue $2.3b $1.2b $1.1b $0.5b ▲ 22.8% on FY21, ▲
Slide 7: Work in hand of $18.0b, up 7.1% in FY22
FY22 RESULTS PRESENTATION Work in hand of $18.0b, up 7.1% in FY22 Court and custodial Western and Sydney Inter-city fibre project ▲ Inter-city Court services ▲fibre and project ▲ custodial Gold Coast city water ▲ Harbour Tunnel ▲ Telstra InfraCo Telstra Westernservices Australian▲ InfraCo Government
Slide 8: Building on our strategy to Redefine Service Excellence
FY22 RESULTS PRESENTATION Building on our strategy to Redefine Service Excellence Client Focused Innovative Sustainable Our expert capability differentiated Ventia and Project on a Page delivers systematised, We are currently installing 87,000 LEDs to reduce assisted in the win of the new Square Kil
Slide 9: Financial Results
FY22 RESULTS PRESENTATION Financial Results 8
Slide 10: Long term track record of consistent delivery
FY22 RESULTS PRESENTATION Long term track record of consistent delivery Pro forma Revenue and EBITDA Margin ($m/%) Pro forma NPATA and NPATA margin ($m/%) • Growing demand for Ventia’s services • Revenue increased 13.4% on FY21 • Delivering a consistent value proposition for shareholders • NPATA has
Slide 11: Contracted revenue protected by escalation mechanisms
FY22 RESULTS PRESENTATION Contracted revenue protected by escalation mechanisms FY22 revenue by contract profile ($5.2b) FY22 revenue by escalation type ($5.2b) Diversified portfolio Indexation 400+ sites and 40% of our people working in regional and rural areas Indices used vary by contract and inc
Slide 12: Delivery of cash backed profits has unrelenting focus
FY22 RESULTS PRESENTATION Delivery of cash backed profits has unrelenting focus $ millions, pro forma FY21 FY22 Total revenue 4,557.4 5,167.5 Expenses (4,177.5) (4,747.7) Changes in working capital Net working capital has increased by $54.1m primarily due to the roll off EBITDA 379.9 419.8 of PPA pr
Slide 13: Strong financial flexibility, with good liquidity and material headroom
FY22 RESULTS PRESENTATION Strong financial flexibility, with good liquidity and material headroom 31 December 2022 metrics ($ millions) • Gearing level prudent with material headroom to covenants Cash on hand 280.0 • Cash focus and capital light operating model underpins operating cash flows. As at
Slide 14: Sustainable dividend growth
FY22 RESULTS PRESENTATION Sustainable dividend growth Pro forma NPATA ($ millions) Dividends Guidance range of 7-10% pro forma NPATA growth 8.28 cents 75% pro forma NPATA Final dividend for FY22 per share declared Future target payout ratio of 60-80% Total dividend of 15.75 cents for FY22 of pro for
Slide 15: Disciplined capital allocation
FY22 RESULTS PRESENTATION Disciplined capital allocation 1. Business investment to 2. Annual dividends to 3. Fund bolt on 4. Capital management generate organic growth shareholders acquisitions toolkit Dividend of 15.75 cps paid to Focus on opportunities that Management and the Board will Capex of $
Slide 16: Outlook
FY22 RESULTS PRESENTATION Outlook 15
Slide 17: Market tailwinds expected to continue to accelerate business growth
FY22 RESULTS PRESENTATION Market tailwinds expected to continue to accelerate business growth Outsourced Maintenance Services Demand Drivers1 addressable market size Australia & New Zealand ($b)1 FY22 – FY26 CAGR: 6.6% 87.8 82.4 77.5 73.5 68.0 Large and Population Increasing Exposure to mega growing
Slide 18: Key opportunities for FY23 and beyond
FY22 RESULTS PRESENTATION Key opportunities for FY23 and beyond Defence and Social Infrastructure Infrastructure Services Telecommunications Transport Leverage group wide capability Deliver energy transition solutions Maintain market-leadership whilst Leverage capabilities and strategic to expand De
Slide 19: Ventia's long term investment proposition
FY22 RESULTS PRESENTATION Ventia’s long term investment proposition Revenue targeted to grow Diligent focus on High conversion of Growing shareholder faster than market cash backed profits profits into dividends dividend 7-10% 80-95% 75% Annual distribution aligned with earnings growth Average reven
Slide 20: FY23 Guidance
FY22 RESULTS PRESENTATION Platform in place for continued success in 2023 Outperformed Revenue, EBITDA and NPATA Strategy to deliver Service Excellence driving superior results Our markets remain strong and growing Resilient and diversified business Focused on long term strategic clients alongside s
Slide 21: Q&A
FY22 RESULTS PRESENTATION Q&A 20
Slide 22: Appendix
FY22 RESULTS PRESENTATION Appendix 21
Slide 23: Consolidated statement of financial position
FY22 RESULTS PRESENTATION Consolidated statement of financial position $ millions FY21 FY22 Total current assets 923.7 1,147.2 Total non-current assets 1,757.7 1,711.8 Total assets 2,681.4 2,859.0 Total current liabilities 1,159.7 1,248.4 Total non-current liabilities 1,131.2 1,089.7 Total liabiliti
Slide 24: Pro forma consolidated statements of profit or loss
FY22 RESULTS PRESENTATION Pro forma consolidated statements of profit or loss FY21 to FY22 % FY22 prospectus $ millions FY21 FY22 variance forecast Total Revenue 4,557.4 5,167.5 13.4% 4,942.6 EBITDA 379.9 419.8 10.5% 408.6 EBITDA % 8.3% 8.1% (0.2pp) 8.3% Depreciation (108.7) (104.1) (4.2%) (105.4) A
Slide 25: Statutory NPAT to pro forma NPATA reconciliation
FY22 RESULTS PRESENTATION Statutory NPAT to pro forma NPATA reconciliation $ millions FY21 1H22 2H22 FY22 Commentary FY22 Statutory NPAT 19.5 105.0 86.2 191.2 • No pro forma adjustments made in 2H22, only Broadspectrum pro forma adjustments (24.6) - - - adjustment $0.2m income tax to arrive at prima
Slide 26: Purchase price adjustments rolling off as expected
FY22 RESULTS PRESENTATION Purchase price adjustments rolling off as expected Unfavourable Onerous Warranties & Contracts Contracts contract claims Other Total Provision commentary 2022 $’m $’m $’m $’m $’m FY22 expected to be the peak of PPA provision release. The FY23 release is expected to be appro
Slide 27: Single enterprise-wide platform
FY22 RESULTS PRESENTATION Single enterprise-wide platform We differentiate through our cloud based, scalable and robust platform Easy to use and flexible front end Flexible User Experience Layer • Ease of use for clients, subcontractors and Client Portal, Sub-contractor Portal and Mobility Solutions
Slide 28: Health and Safety is our number one priority
FY22 RESULTS PRESENTATION Health and Safety is our number one priority • 14% improvement in total recordable injury frequency rate in FY21 • 36% improvement in serious incident frequency rate in FY21 • Industry Recognition – • National Safety Awards of Excellence Winner – Best Management System • Re