Kelsian Group Limited · ASX:KLS
Kelsian — Investor Day (November 2023)
65 slides from Kelsian's investor day presentation, Nov 22, 2023
Slide 1: Investor Day Presentation ASX cover letter
Kelsian Group Limited ABN 49 109 078 257 L3, 26 Flinders Street Adelaide SA 5000 +61 (0)8 8202 8688 www.kelsian.com 22 November 2023 The Manager Company Announcements Office ASX Limited Via ASX Online Investor Day Presentation – Kelsian Group Limited (‘Kelsian’) For personal use only Attached is a c
Slide 2: 2023 Investor Day - Sydney
For personal use only Kelsian Group Limited 2023 Investor Day - Sydney 22 November 2023
Slide 3: Important notice - disclaimer
Important notice - disclaimer For personal use only This presentation has been prepared by Kelsian Group Limited (ACN 109 078 257) (Kelsian or the Company). No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, contained in the pr
Slide 4: Welcome
Welcome For personal use only Clint Feuerherdt Managing Director and Group Chief Executive Officer Transit Systems NSW, Reconciliation Buses
Slide 5: Introducing the team
Introducing the team For personal use only © Kelsian Group Limited | Annual General Meeting 2022 4
Slide 6: Our brands
Our brands For personal use only Australian Public Transport Marine & Tourism International He South Australia Sydney Harbour North Queensland Whitsundays Gladstone K’gari South East Queensland Western Australia Tasmania Northern Territory 'To be a world leader in delivering essential journeys throu
Slide 7: Our values
Our values Our values help us navigate the way we do business, what our For personal use only business stands for and what makes us special © Kelsian Group Limited | 2023 Investor Day 6
Slide 8: Our strategic pillars
Our strategic pillars Key to achieving our purpose and supported by three foundation elements For personal use only © Kelsian Group Limited | 2023 Investor Day 7
Slide 9: Our strategic pillars
Our strategic pillars Achieving our purpose For personal use only PROVIDE OPERATIONAL INVEST IN OUR PEOPLE TO BECOME AN EXCELLENCE THAT GOES BEYOND EMPLOYER OF CHOICE. OUR PEERS. PROVIDE AN UNMATCHED BRILLIANT GROW OUR BUSINESS THROUGH CUSTOMER EXPERIENCE THAT IS RELATIONSHIPS, RESOURCES AND SYNONYM
Slide 10: Global operations
Global operations For personal use only 9 As at 30 June 2023 © Kelsian Group Limited | 2023 Investor Day
Slide 11: Some of the global macro trends to support growth
Some of the global macro trends to support growth For personal use only Liberalisation of government services Decarbonisation Step up in infrastructure Post COVID tourism resurgence Population growth investment Regional government net zero targets Digitisation of public transport 10
Slide 12: Sustainability focus
Sustainability focus Great progress towards some clearly defined targets For personal use only PROVIDING LOW/ZERO PROMOTING A DIVERSE ENSURING THE HEALTH, REDUCING OUR DRIVING POSITIVE CHANGE IN EMISSIONS AND INTELLIGENT AND INCLUSIVE SAFETY AND WELL-BEING OF ENVIRONMENTAL THE COMMUNITIES WHERE TRAN
Slide 13: Our brands - Australian Public Transport
Our Australia brands Public Transport For personal use only Australian Public Transport Marine & Tourism International South Australia Sydney Harbour North Queensland Whitsundays Gladstone K’gari South East Queensland Western Australia Tasmania Northern Territory Company Purpose: 'To be a world lead
Slide 14: Transit Systems
Transit Systems Michael McGee For personal use only Chief Executive Officer, Transit Systems Transit Systems VIC, Electric Buses © Kelsian Group Limited | 2023 Investor Day
Slide 15: 10-Year Timeline
10-Year Timeline For personal use only Revenue compound annual growth rate Australian Public Transport (FY14 to FY23) 10yr CAGR = +15% 5yr CAGR = +25% © Kelsian Group Limited | 2023 Investor Day
Slide 16: Operating Statistics as at June 2023
For personal use only Operating Statistics as at 30 June162023 © Kelsian Group Limited | 2023 Investor Day
Slide 17: Transit Systems Operations
Transit Systems Operations For personal use only * * As at 30 June 2023 © Kelsian Group Limited | 2023 Investor Day 17
Slide 18: Our platform for growth
Our platform for growth Characteristics and core competencies For personal use only SAFETY FOCUS We make safety a priority in everything we do. 18 © Kelsian Group Limited | 2023 Investor Day
Slide 19: For personal use only
For personal use only • Industrial relations expertise • Customer-centric approach • Community engagement • Digital communications • SafeConnect App • BLINK App © Kelsian Group Limited | Annual General Meeting 2022 19
Slide 20: For personal use only
For personal use only 20 © Kelsian Group Limited | 2023 Investor Day
Slide 21: For personal use only
For personal use only • Technology driven • Driver monitoring systems • Demand responsive technology • Data-driven • Scale efficiencies • Systems approach © Kelsian Group Limited | Annual General Meeting 2022 21
Slide 22: For personal use only
For personal use only • Successfully transitioned more than 30 public transport contracts, including ferries • Successful Sydney transition* • 700 new team members • 380 additional buses • 5 additional depots • 540 new school routes • 87 new regular route services *as at 31 October 2023 © Kelsian Gr
Slide 23: For personal use only
For personal use only • Network and scheduling optimisation • Strategic planning experts • Harnessing digital tools and technology • Proactive focus on driving network efficiencies © Kelsian Group Limited | Annual General Meeting 2022 23
Slide 24: For personal use only
For personal use only • Strategic partnerships • Industry collaboration • Sustainable practices • Deployment expertise © Kelsian Group Limited | Annual General Meeting 2022 24
Slide 25: Growth
Growth Expansion, organic growth, strategic acquisitions For personal use only 25
Slide 26: Achieving emissions reduction targets
Achieving emissions reduction targets Public transport provides a solution to reducing transport emissions For personal use only © Kelsian Group Limited | Annual General Meeting 2022 26
Slide 27: Our brands - Marine & Tourism
Our brands For personal use only Australian Public Transport Marine & Tourism International Marine & Tourism South Australia Sydney Harbour North Queensland Whitsundays Gladstone K’gari South East Queensland Western Australia Tasmania Northern Territory Company Purpose: 'To be a world leader in deli
Slide 28: SeaLink Marine & Tourism
For personal use only SeaLink Marine & Tourism Donna Gauci Chief Executive Officer, SeaLink Whitehaven Beach, SeaLink Whitsundays © Kelsian Group Limited | 2023 Investor Day
Slide 29: Marine & Tourism Operations
Marine & Tourism Operations * For personal use only * As at 30 June 2023 © Kelsian Group Limited | 2023 Investor Day 30
Slide 30: For personal use only
For personal use only 31 © Kelsian Group Limited | 2023 Investor Day
Slide 31: Revenue by market
Revenue by market For personal use only © Kelsian Group Limited | 2023 Investor Day
Slide 32: International recovery
International recovery Tourism Australia Visitor Arrivals from our Top 15 Markets YE August 2023 1,600,000 For personal use only 1,400,000 68% total Inbound 1,200,000 recovery 1,000,000 800,000 600,000 400,000 200,000 - United New United South States of India Singapore China Japan Indonesia Malaysia
Slide 33: People
For personal use only People 34
Slide 34: Marine crew attraction, development & retention
Marine crew attraction, development & retention Grow our own For personal use only • Attract and retain qualified and competent new crew • Develop and invest in our marine crew • Create marine career pathways • Traineeships under a Group Training Organisation model • Improve operational safety and e
Slide 35: Health, safety and environment
Health, safety and environment Safety-Focused For personal use only • Primary focus on incident and injury prevention • Continually driving a positive safety culture • Embedding a safety-first mindset across operations a priority • Reporting system for employees to report hazards and incidents • Emp
Slide 36: Customer
For personal use only Customer 37
Slide 37: One brand, nine destinations
1SeaLink website One brand, nine destinations For personal use only • To position SeaLink as the most recognised and preferred national ferry carrier in the country • To market one brand with nine destinations (not nine brands with nine destinations) • To increase awareness of the destinations we op
Slide 38: One stop island shop
One stop island shop Channel Manager • To increase our customer value proposition For personal use only • To increase revenue opportunities • To provide access to more products with live inventory and replace manual processes • To grow our market share in competitive markets with a Unique Selling Pr
Slide 39: Brilliant Travels
Brilliant Travels National marketing strategy For personal use only • To market all SeaLink Marine & Tourism brands • To create one national marketing platform for all destinations • To develop a website to house all brands • To enable national customer strategies and national campaigns • To increas
Slide 40: Customer relationship management
Customer relationship management Enhancing customer interactions, sales and analytics For personal use only • To develop a single view of our customer base • To provide customers with content that is in real- time and customised to their preferences in a timely and personal way • To increase marketi
Slide 41: Customer feedback
Customer feedback Measuring our customers' experience in real time For personal use only 98%* of Australians read online reviews before purchasing 94%* believe them to be trustworthy 84%* have left at least one review online Our results * https://www.capterra.com.au/how-important-online-reviews-aust
Slide 42: Technology
For personal use only Technology © Kelsian Group Limited | Annual General Meeting 2022 43
Slide 43: Operational technologies
Operational technologies Enhancing our customers' experience & streamlining processes For personal use only • Integration of advanced license plate recognition and access control systems to modernize and secure our check-in processes • Autonomous ticketing and check in kiosks aimed at reducing opera
Slide 44: Current & historical booking systems
Current & historical booking systems Data capability Rostering, time and attendance Using data to inform decision making For personal use only ERP’s • Comprehensive data models are built around our in-house booking platform with highly flexible revenue reporting outcomes at all levels of the divisio
Slide 45: Asset Management & Replacement
Asset Management & Replacement For personal use only Operational Preventative maintenance Excellence Investing in our assets/infrastructure - vessel builds Lower emission strategies
Slide 46: Ongoing investment in our assets
Ongoing investment in our assets Five vessels currently under construction • Southern Moreton Bay Island services: 2 x 45 metre vehicle/passenger ferries For personal use only 190 passengers 40 cars capable of running on 100% bio-diesel, more efficient propellers • Kangaroo Island: 2 x 60 metre vehi
Slide 47: Growth
For personal use only Growth © Kelsian Group Limited | Annual General Meeting 2022 48
Slide 48: Revenue management
Revenue management Driving growth through pricing strategies For personal use only • Bespoke pricing strategies • Utilises bespoke revenue • Bespoke revenue management • Contractual pricing applied utilising upsell product management strategies via the strategies in place management leveraging buyer
Slide 49: Strategic acquisitions
Strategic acquisitions Positioning SeaLink as a leader in the Whitsundays marine & tourism industry Staff Vessels Jet Skis Hi-Ace Bus For personal use only 60 5 22 4 Strategic rationale In November 2023, SeaLink agreed to acquire the business assets of the small 'Red Cat Adventures Group' (RCA). RCA
Slide 50: Our brands - International
Our brands For personal use only Australian Public Transport Marine & Tourism International AAAHI South Australia Sydney Harbour North Queensland Whitsundays Gladstone K’gari South East Queensland Western Australia Tasmania Northern Territory Company Purpose: 'To be a world leader in delivering esse
Slide 51: All Aboard America! Holdings Inc (AAAHI)
All Aboard America! Holdings Inc (AAAHI) For personal use only Graeme Legh Chief Executive Officer, AAAHI AAAHI, USA, All Aboard America © Kelsian Group Limited | 2023 Investor Day
Slide 52: AAAHI operations
AAAHI operations Platform of six geographically diversified, highly regarded motorcoach brands operating across seven contiguous states For personal use only • AAAHI operates in several high-growth, high-potential markets in the south and south-west of the USA • The scaled, full-service provider of
Slide 53: Operating brands
Operating brands Six fully integrated operating brands providing market leading services For personal use only Colorado Arizona, New Mexico, Texas Texas Louisiana, Texas, Mississippi California California Footprint Representative Customers State Department of Transport Nasdaq Top 10 companies State
Slide 54: Committed head office & local management teams retained
Committed head office & local management teams retained Management supported by dedicated Kelsian USA Board with extensive industry expertise For personal use only AAAHI Governance & Management • Dedicated Kelsian USA Board established, with Kelsian Board participation from AAAHI leaders and busines
Slide 55: Strong track record of growth
Strong track record of growth Delivered sustained organic growth from portfolio companies and successful expansion through targeted acquisitions Total Revenue (US$m) EBITDA (US$m) and Margin (%) For personal use only 70 50% $236m 60 45% $208m $61m $190m 50 40% 35% $147m 40 $43m $136m 30% $127m $125m
Slide 56: Future opportunities and growth
Future opportunities and growth AAAHI is uniquely positioned in a large, fragmented, growing and attractive market For personal use only Core Business Organic Growth Targeted M&A • Leverage Kelsian’s scheduling and planning expertise • In-market • Gulf Coast LNG acquisitions to • Enhance enhance Imm
Slide 57: Our brands - International
Our brands For personal use only Australian Public Transport Marine & Tourism International International South Australia Sydney Harbour North Queensland Whitsundays Gladstone K’gari South East Queensland Western Australia Tasmania Northern Territory Company Purpose: 'To be a world leader in deliver
Slide 58: International Bus
International Bus For personal use only Clint Feuerherdt Managing Director and Group Chief Executive Officer © Kelsian Group Limited | 2023 Investor Day
Slide 59: Tower Transit operations
Tower Transit operations For personal use only * * As at 30 June 2023 © Kelsian Group Limited | 2023 Investor Day 60
Slide 60: Singapore – Land Transport Authority (LTA)
Singapore – Land Transport Authority (LTA) Tower Transit Singapore operates more than 700 buses on behalf of the LTA For personal use only Tower Transit has two existing contracts • Bulim operates 31 services • Sembawang Yishun operates 25 services Tower Transit is bidding on upcoming tenders • Sele
Slide 61: London and Channel Islands
London and Channel Islands UK operations provide a solid platform for growth For personal use only LONDON OPERATIONS CURRENT OPERATIONS • Westbourne Park bus depot freehold retained with a long-term rent income attached • UK team largely self-funded CHANNEL ISLANDS OPERATIONS • Comprises businesses
Slide 62: Organisation Chart Tower Transit UK
Organisation Chart Tower Transit UK The corporate team in UK comprises 11 individuals with extensive experience For personal use only Samuel Ribeiro Paul Cox Managing Director Tower Transit Chairman Legal Director Engineering Director Operations Director HR Director Finance Director IT & Compliance
Slide 63: Channel Islands operational overview
Channel Islands Operational overview For personal use only Guernsey Jersey FLEET SIZE 42 vehicles (40 PSVs and 2 ancillary vehicles) 82 vehicles (78 PSVs and 4 ancillary vehicles) FLEET TYPE Government-owned (90%); TT owned (10%) TT owned (100%) DEPOT LOCATION Les Banques, north of Saint Peter Port
Slide 64: United Kingdom regional bus franchising opportunities
United Kingdom regional bus franchising opportunities Strong pipeline of opportunities in regional UK bus For personal use only 1 Greater Manchester (T3 ~597 buses) Estimated number of buses available via franchising 2 308 Liverpool: 1,066 buses 396 400 3 West Yorkshire: 1,200 buses 597 4 South York
Slide 65: Strong pipeline of growth opportunities (organic & acquisitions)
Strong pipeline of growth opportunities (organic & acquisitions) Leaders in transitioning contracts, operational excellence and efficiency For personal use only Australia + New Zealand USA Singapore + UK • Auckland bus • Corporate (incl. LNG) • Melbourne bus • Government • Singapore Bus SHORT TERM •