Ventia Services Group Limited · ASX:VNT
Ventia Services — Investor Day (November 2022)
66 slides from Ventia Services's investor day presentation, Nov 16, 2022
Slide 1: ASX and NZX Release: Ventia Investor Day
Ventia Services Group Limited ABN 53 603 253 541 Level 8, 80 Pacific Highway North Sydney NSW 2060 AUSTRALIA ventia.com For personal use only ASX and NZX Release 16 November 2022 Ventia Investor Day Ventia Service Group Limited (ASX: VNT) will today be holding its Investor Day. Please find attached
Slide 2: Redefining Service Excellence – Ventia Investor Day
For personal use only VENTIA INVESTOR DAY | 2022 Redefining Service Excellence Ventia Investor Day 16 November 2022
Slide 3: Disclaimer
VENTIA INVESTOR DAY | 2022 Disclaimer For personal use only This presentation contains summary information about Ventia Services Group Limited (ACN 603 253 541) and its related bodies corporate (together, Ventia) and does not purport to be complete. It should be read in conjunction with Ventia’s Hal
Slide 4: Acknowledgement of Country and Mihi
VENTIA INVESTOR DAY | 2022 Acknowledgement of Country and Mihi For personal use only Ventia would like to respectfully acknowledge the He tautoko te ahurea i ngā kawa me ngā tikanga o ngā Traditional Owners and Custodians of country Iwi whānui o Aotearoa, me ka kawa me ka tikaka o ka throughout Aust
Slide 5: Agenda
VENTIA INVESTOR DAY | 2022 Agenda For personal use only 9:00 - 9:20 Welcome & overview Dean Banks 9:20 – 9:30 Financial overview Stuart Hooper 9:30 – 9:45 Telecommunications Mark Ralston 9:45 – 10:00 Transport David McPadden 10:00 – 10:40 Q&A 10:40 – 11:00 Break 11:00 – 11:10 People & Safety Jodie B
Slide 6: Safety & health is our #1 promise
VENTIA INVESTOR DAY | 2022 Safety & health is our #1 promise It is our licence to operate For personal use only I have learned through my experiences that mental health is not biased. It can affect the most confident and experienced person, all the way through to reserved and introverted personaliti
Slide 7: Ventia overview – Dean Banks
For personal use only VENTIA INVESTOR DAY | 2022 Dean Banks Ventia overview Group Chief Executive Officer 6
Slide 8: A leading infrastructure services provider
VENTIA INVESTOR DAY | 2022 A leading infrastructure services provider A trusted partner to our clients across Australia and New Zealand For personal use only $4.9b TOTAL REVENUE FY22F1 400+ PROJECT SITES ACROSS AUSTRALIA & NEW ZEALAND 40%+ OF REVENUE FROM REGIONAL & RURAL AREAS Our footprint2,3 ~950
Slide 9: A diverse portfolio
VENTIA INVESTOR DAY | 2022 A diverse portfolio Expert capabilities leveraged across our four operating sectors For personal use only Defence & Social Infrastructure Sector Telecommunications Transport Infrastructure Services HY22 45% 22% 23% 10% Revenue % 1 1.Pro forma services revenue, excludes oth
Slide 10: Differentiating through our strategy
VENTIA INVESTOR DAY | 2022 Differentiating through our strategy Our strategy is to Redefine Service Excellence For personal use only 9
Slide 11: Committed to sustainability
VENTIA INVESTOR DAY | 2022 Committed to sustainability Creating a lasting and positive legacy for people and planet For personal use only • Committed to Science Based Targets • Aligned to HESTA 40:40 Vision commitment • Compliance with the ASX Corporate initiative to set emission reduction Governanc
Slide 12: An attractive market outlook
VENTIA INVESTOR DAY | 2022 An attractive market outlook Market growth supported by industry tailwinds For personal use only Outsourced Maintenance Services addressable market size Australia & New Zealand (AU$bn)1 FY22 – FY26 CAGR: 6.6% Market drivers 87.8 82.4 Size and growth of the asset base 77.5
Slide 13: Key messages
VENTIA INVESTOR DAY | 2022 Key messages For personal use only A leading essential infrastructure services provider Differentiated through our people who bring our strategy to Redefine Service Excellence to life An attractive market outlook underpinned by our bid success Focus on cash backed profits
Slide 14: Financial overview – Stuart Hooper
For personal use only VENTIA INVESTOR DAY | 2022 Financial overview Stuart Hooper Chief Financial Officer 13
Slide 15: Track record of financial performance
VENTIA INVESTOR DAY | 2022 Track record of financial performance On target to deliver prospectus forecast For personal use only Pro forma Total Revenue ($m) Pro forma EBITDA and Margin ($m/%) Work in hand ($bn) 1 408.6 13% 18.0 2 16.8 5,500 410 1 379.9 12% 4,754.5 4,803.8 4,942.6 390 13.1 11% 354.1
Slide 16: A stable and resilient business
VENTIA INVESTOR DAY | 2022 A stable and resilient business Client and revenue profile provides protection For personal use only Revenue by Revenue by Revenue by client type1 contract profile1 escalation mechanism1 11% 4% 24% 11% 11% 21% 64% 76% 78% Public Schedule of rates Indexation Private Cost Re
Slide 17: Capital light business model
VENTIA INVESTOR DAY | 2022 Capital light business model Capex targeted to remain less than 1% of total revenue For personal use only Capital Expenditure ($m) Historical Forecast Pro forma Basis FY18 FY19 FY20 FY21 FY22 Maintenance 21.2 15.6 15.1 27.0 33.6 Growth 21.3 45.0 14.9 9.3 7.4 Total capex 42
Slide 18: Investment grade balance sheet
VENTIA INVESTOR DAY | 2022 Investment grade balance sheet Expected natural deleveraging as EBITDA grows For personal use only Pro forma Interest Cover Ratio, improved 1.0x since HY21 15 Interest coverage headroom of more than 13x 13.3 12 12.3 Net debt / EBITDA metric at 1.5x 10.7 9 HY20 HY21 HY22 Si
Slide 19: Disciplined capital allocation
VENTIA INVESTOR DAY | 2022 Disciplined capital allocation Focus on delivering cash backed profits and reliable and growing dividends For personal use only Business investment to generate Targeted investment to support organic growth that organic growth meets our internal hurdles Dividends aligned to
Slide 20: Financial outlook
VENTIA INVESTOR DAY | 2022 Financial outlook For personal use only Strong forecast Revenue targeted Diligent focus on High conversion of Growing market growth to grow faster cash backed profits into shareholder than market profits dividends dividends 6.6% 7-10% 80-95% 60-80% Annual distribution alig
Slide 21: Telecommunications – Mark Ralston
For personal use only VENTIA INVESTOR DAY | 2022 Telecommunications Mark Ralston Group Executive - Telecommunications 20
Slide 22: Telecommunications
VENTIA INVESTOR DAY | 2022 Telecommunications For personal use only Wireless & Special Operations & Fixed Networks Coverage Solutions Services Differentiators #1 Telecommunications National scale infrastructure provider in including regional Revenue EBITDA Australia & New Zealand and remote location
Slide 23: Fixed Networks
VENTIA INVESTOR DAY | 2022 Fixed Networks A leader in the design and build of major fibre networks For personal use only Fixed fibre networks and connections AUCKLAND Telstra Intercity capital fibre build WELLINGTON Fibre networks completed or contracted by Ventia Fibre connections completed by Vent
Slide 24: Wireless & Special Coverage Solutions
VENTIA INVESTOR DAY | 2022 Wireless & Special Coverage Solutions Track record in major wireless projects and special coverage solutions For personal use only Completed wireless and special coverage projects Wireless and special coverage solutions completed by Ventia 11,000+ 300+ 800+ greenfield carr
Slide 25: Operations & Services
VENTIA INVESTOR DAY | 2022 Operations & Services ~1.5 million assets managed across Australia and New Zealand For personal use only Telecommunication assets managed Telecommunication assets currently managed by Ventia 36,000+ 2,000+ 40,000+ ~1m battery systems commercial solar telco facilities smart
Slide 26: Sustainable
VENTIA INVESTOR DAY | 2022 Sustainable A commitment to people, the environment and the communities we work in For personal use only We led the design and construction of Ventia partners with Australian Spatial During flooding on Australia’s east coast the first inner-urban community battery Analytic
Slide 27: Market outlook
VENTIA INVESTOR DAY | 2022 Market outlook Market tailwinds as data demands drive network investment For personal use only Outsourced Telecommunications addressable market size Australia & New Zealand (AU$bn)1 Market drivers FY22 – FY26 CAGR: 6.3% Continued growth in data demand 12.5 11.8 11.4 11.2 1
Slide 28: Our Strategy
VENTIA INVESTOR DAY | 2022 Our Strategy To be the most client focused, innovative and sustainable telecommunications partner For personal use only Wireless & Special Operations & Fixed Networks Coverage Solutions Services Leverage our track record and expert Support our clients in the delivery of Co
Slide 29: Summary
VENTIA INVESTOR DAY | 2022 Summary For personal use only #1 Telecommunication infrastructure services provider in ANZ Long term client relationships Expert, in-house capabilities across telecommunications network infrastructure Market tailwinds as data demands drive network investment 28
Slide 30: Transport – David McPadden
For personal use only VENTIA INVESTOR DAY | 2022 Transport David McPadden Group Executive - Transport 29
Slide 31: Transport
VENTIA INVESTOR DAY | 2022 Transport For personal use only Transport Roads Motorways & Tunnels Rail Technology Essential services delivered Intelligent Asset management Revenue EBITDA transport systems $0.3b $19.0m HY22 pro forma HY22 pro forma (49% FY22 forecast) (52% FY22 forecast) Tunnel & Incide
Slide 32: Client focused
VENTIA INVESTOR DAY | 2022 Client focused Long term contracts with government agencies and blue-chip corporates For personal use only Sydney Roads Asset Performance Contract: 9+3+3yrs Sydney & Western Harbour Tunnel: 15+10+10yrs | $450m Auckland Transport West: North East Link: 5+5yrs | NZ$220m 25yr
Slide 33: Building on our relationship with TfNSW
VENTIA INVESTOR DAY | 2022 Building on our relationship with TfNSW Improving whole of life outcomes for the Sydney and Western Harbour Tunnels For personal use only TfNSW is delighted to have appointed Ventia as the Asset Manager for the Western Harbour Tunnel and Sydney Harbour Tunnel. Ventia's pro
Slide 34: Innovative
VENTIA INVESTOR DAY | 2022 Innovative Our end-to-end transport technology capabilities support emerging client needs For personal use only Examples • Transport technology is an emerging market • Clients seeking technology that builds asset capacity Project Aardvark autonomous First electric TMA in A
Slide 35: Sustainable
VENTIA INVESTOR DAY | 2022 Sustainable Delivering sustainability outcomes for our clients and communities For personal use only Examples • Achieved Infrastructure Sustainability Council (ISC) ratings • Joint Sustainability Governance Group with Transurban Western Roads Upgrade ISC Sustainability lea
Slide 36: Market outlook
VENTIA INVESTOR DAY | 2022 Market outlook Stable market growth aided by increasing size and age of transport infrastructure For personal use only Outsourced Transport addressable market size Australia & New Zealand (AU$bn)1 Market drivers FY22 – FY26 CAGR: 2.7% 8.2 Strong government investment in 7.
Slide 37: Summary
VENTIA INVESTOR DAY | 2022 Summary For personal use only Low risk business model with long term contacts Strong client relationships supported by recent bid success Leverage existing footprint to access adjacent opportunities Depth of capability and scale to meet client needs 36
Slide 38: People & Safety – Jodie Blake
For personal use only VENTIA INVESTOR DAY | 2022 People & Safety Jodie Blake Group Executive - People, Safety & Culture 37
Slide 39: Safety and health is our #1 promise
VENTIA INVESTOR DAY | 2022 Safety and health is our #1 promise It’s our license to operate For personal use only Improving our safety 29% 30% TRIFR1 reduction HIPO2 reduction in 12 months to HY22 compared performance 30 June 2022 to HY21 50+ 26,000+ Industry specific SHEQ3 training Building our trai
Slide 40: Our people are at the heart of our success
VENTIA INVESTOR DAY | 2022 Our people are at the heart of our success Flexibility, expertise and diversity in our workforce For personal use only 35,000+ 15,000+ 20,000+ Workforce Employees Subcontractors 30% 4.8% 20%+ Female Aboriginal & Torres Māori & participation Strait Islander Pasifika partici
Slide 41: Retain and attract the best and brightest
VENTIA INVESTOR DAY | 2022 Retain and attract the best and brightest Enhancing the Ventia value proposition through a range of initiatives For personal use only In-house Career recruitment development Mental Specialised 330+ leaders health & 4,500+ hires YTD recruitment including participating in co
Slide 42: Managing employment relations
VENTIA INVESTOR DAY | 2022 Managing employment relations Visibility and proactive management support our employment relations outcomes For personal use only Visibility of employment Proactive workforce and Managing cost arrangements union engagement escalation • 50% of employees covered by • 13 EAs
Slide 43: Summary
VENTIA INVESTOR DAY | 2022 Summary For personal use only Safety and health is our #1 promise Flexibility, expertise and diversity in our workforce We retain and attract the best and brightest Visibility and proactive management support our employment relations outcomes 42
Slide 44: Infrastructure Services – Tim Harwood
For personal use only VENTIA INVESTOR DAY | 2022 Infrastructure Tim Harwood Group Executive – Services Infrastructure Services 43
Slide 45: Infrastructure Services
VENTIA INVESTOR DAY | 2022 Infrastructure Services For personal use only Electricity & Industrial Rig & Well Environmental Water Gas Services Services Services Essential services delivered 24/7 support for Drilled more than 11,000kms 507 million metres Revenue EBITDA of transmission line of wells si
Slide 46: Business performance update
VENTIA INVESTOR DAY | 2022 Business performance update Actions in place to strengthen the Infrastructure Services portfolio For personal use only Recent challenges Actions taken Timing and availability of work under Greater account focus to improve panel agreements and shutdowns insight into future
Slide 47: Solid foundation to build from
VENTIA INVESTOR DAY | 2022 Solid foundation to build from Future underpinned by long term client relationships and track record of renewals For personal use only Examples of long term client relationships WIH representing 3.9x 2021 revenue INPEX +5yrs Energy Queensland >90% +17yrs renewal rate BHP +
Slide 48: Long term partnership with Transpower
VENTIA INVESTOR DAY | 2022 Long term partnership with Transpower Delivering services to New Zealand’s national electricity grid For personal use only • +25 year relationship with Transpower in New Zealand • Delivering maintenance and specialist services • Client focused approach and geographic scale
Slide 49: Developing talent with INPEX
VENTIA INVESTOR DAY | 2022 Developing talent with INPEX Supporting local and Indigenous employment For personal use only • Significant growth in scope and scale of work throughout our 5 year relationship with INPEX • Provide technical trades support for campaign maintenance, turnaround and brownfiel
Slide 50: Market outlook
VENTIA INVESTOR DAY | 2022 Market outlook After remaining flat FY19-21, market growth accelerating due to increasing electricity investment For personal use only Outsourced Infrastructure Services addressable market size Australia & New Zealand (AU$bn)1 FY22 – FY26 CAGR: 8.0% Market drivers 37.8 1.5
Slide 51: Innovation at Ranger Mine
VENTIA INVESTOR DAY | 2022 Innovation at Ranger Mine Supporting the industrial transition with innovative solutions For personal use only • Supporting Energy Resources of Australia with the rehabilitation of the Ranger Mine site • Installing more than 40,000 wick drains to accelerate the rehabilitat
Slide 52: Summary
VENTIA INVESTOR DAY | 2022 Summary For personal use only Diverse range of services provided to resources, industrial and utilities clients Actions in place to strengthen the Infrastructure Services portfolio A solid foundation underpinned by client relationships and track record of renewals Partneri
Slide 53: Defence & Social Infrastructure – Derek Osborn
For personal use only VENTIA INVESTOR DAY | 2022 Defence & Social Derek Osborn Group Executive – Defence & Social Infrastructure Infrastructure 52
Slide 54: Defence & Social Infrastructure
VENTIA INVESTOR DAY | 2022 Defence & Social Infrastructure For personal use only Social Local Critical Defence Property Infrastructure Government Infrastructure Prime services integrator for large and complex asset and infrastructure portfolios • Top 5 Prime contractor to Revenue EBITDA Australian D
Slide 55: Delivering essential services for critical assets
VENTIA INVESTOR DAY | 2022 Delivering essential services for critical assets Managing end-to-end programs, at scale, across the asset and operations lifecycle For personal use only Critical assets we manage Essential services delivered WATER ASSETS DIGITAL & DATA Asset management AIRFIELD ELECTRICIT
Slide 56: Client focused
VENTIA INVESTOR DAY | 2022 Client focused Focus on social licence drives alignment with clients and supports bid success For personal use only Examples • Social licence is a differentiator • Long term client base knowledge, trust and insights • Continued bid success and client satisfaction TRECCA
Slide 57: Innovative
VENTIA INVESTOR DAY | 2022 Innovative Track record of delivering innovation in service delivery to improve client outcomes For personal use only Examples • Single enterprise-wide technology platform • Track record of delivering innovation Defence Innovator of the Year 2022 Defence Innovation of the
Slide 58: Sustainable
VENTIA INVESTOR DAY | 2022 Sustainable Large scale energy and environmental programs, delivered by our talented workforce For personal use only Examples • Energy security and emissions reduction • Environmental, sustainability and waste focus • Award winning, talented and diverse workforce Asset Man
Slide 59: Market outlook
VENTIA INVESTOR DAY | 2022 Market outlook For personal use only Market growth driven by investment in defence, social infrastructure and the energy transition Outsourced Defence & Social Infrastructure addressable market size Australia & New Zealand (AU$bn)1 FY22 – FY26 CAGR: 6.1% Market drivers 29.
Slide 60: Summary
VENTIA INVESTOR DAY | 2022 Summary For personal use only Prime services integrator to large and complex asset and infrastructure portfolios Delivering end-to-end programs, at scale, across the asset and operations lifecycle We differentiate through our strategy to Redefine Service Excellence Market
Slide 61: Digital Services – Karen O'Driscoll
For personal use only VENTIA INVESTOR DAY | 2022 Digital Services Karen O’Driscoll Group Executive – Digital Services 60
Slide 62: Single enterprise-wide platform
VENTIA INVESTOR DAY | 2022 Single enterprise-wide platform We differentiate through our cloud based, scalable and robust platform For personal use only Easy to use and Flexible User Experience Layer flexible front end Client Portal, Sub-contractor Portal and Mobility Solutions • Ease of use for clie
Slide 63: Data engine and operations centre
Machine Field Mobile 4M Learning and AI Sub-contractor For personal use only Solution Work orders per annum recommendation engine 5,000 employees & 5M 15,000 sub-contractors Assets under management Real-time operational insights Service Ventia Operations Centre Request App 1.5m calls triaged & 10,00
Slide 64: Partnering to accelerate innovation
VENTIA INVESTOR DAY | 2022 Partnering to accelerate innovation Finding smarter ways and continuing to evolve For personal use only Artwork by: Monique Rennie, Outreach and Engagement Coordinator The Ventia-verse Satellite inspections Acknowledgement of Simplifying and To reduce latency Country app s
Slide 65: Summary
VENTIA INVESTOR DAY | 2022 Summary For personal use only Scalable enterprise-wide platform enables growth Flexible front end provides customer focus Data and analytics platform drives performance Partnering to accelerate innovation 64
Slide 66: For personal use only
i only For personal u ' Ventia For when it’s essential. .