Smart Parking Limited · ASX:SPZ
Smart Parking — Investor Presentation (February 2022)
32 slides from Smart Parking's investor presentation, Feb 21, 2022
Slide 1: H1 FY22 Results
Smart Parking Limited (ASX:SPZ) H1 FY22 Results 21 February 2022 CEO Paul Gillespie smartparking.com
Slide 2: Smart Parking Ltd (ASX:SPZ)
Smart Parking Ltd (ASX:SPZ) A global company focused on delivering industry leading technology innovations and solutions within the parking industry Parking management services Revenue ($000s) 9,003 Provision of parking management solutions, predominantly servicing the 8,288 retail sector, managing
Slide 3: Disciplined execution of growth strategy drives results
Disciplined execution of growth strategy drives results Sites Managed UK PBNs 3x growth in 4 years Strong recovery post pandemic 264,248 737 R CAG 619 38% 204,910 196,942 187,309 496 152,111 389 286 FY18 FY19 FY20 FY21 31 Dec 2021 H1 FY18 H1 FY19 H1 FY20 H1 FY21 H1 FY22 Operating territories Car cou
Slide 4: H1 FY22
H1 FY22 737 Revenue of Adjusted EBITDA Total $17.3m up $5.1m up 70% 264% sites up 19% *As at 31 Dec 2021 compared to 30 June 2021 *Compared to PCP *Compared to PCP Cash of 1,500 Growth in UK parking breach notices up $ 11.3m 74% *At 31 Dec 2021 (excludes customers’ cash) *H1 FY22 compared to PCP New
Slide 5: H1 FY22 business update
H1 FY22 business update | Record results, expanding market opportunities to accelerate growth. FINANCIAL EXPANSION OUTLOOK • Record results, ahead • UK Parking Services business experiencing • Positive outlook for of guidance – Revenue rapid growth through disciplined execution further growth in H2.
Slide 6: H1 FY22 Financial Update
Pp SMART H1 FY22 Financial Update
Slide 7: Record H1 FY22 performance
Record H1 FY22 performance • The business experienced a strong recovery from the pandemic and combined Group Profit & Loss ($m) with the acquisition of Enterprise Parking H1 FY22 H1 FY21 Solutions, UK Parking Breach Notices Revenue (excl interest) 17.3 10.2 increased 74% compared to H1 FY21. Cost of
Slide 8: Revenue growth
Revenue growth • UK parking management | Revenue up 70% from increased Parking Breach Notices, expansions revenue growth of 75% into new territories and the acquisition of Enterprise Parking compared to PCP. • APAC parking ($000s) management revenue 497 17,291 365 278 growth of 127% compared 266 850
Slide 9: H1 FY22 – Margin expansion
H1 FY22 – Margin expansion Revenue ($000s) Adjusted EBITDA ($000s) 9,003 8,288 Revenue up 70% 7,222 2,689 5,129 5,055 2,449 on PCP 24% up on H1 FY20 1,574 3,265 849 562 (pre-COVID) (768) Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 FY2021 FY2022 FY2021 FY2022 Adjusted EBITDA up Adjusted EBITDA % Margin Chart
Slide 10: Operating leverage
Operating leverage • All time record margin. | Increase in operating leverage • Scale benefits driving operational gearing. EBITDA Margin Operating Expenses • High incremental margin on 30% 63% additional PBNs. 51% 11% 55% (1%) 41% (4%) 26,949 14,895 13,588 21,499 20,671 10,530 17,291 7,118 H1 FY19
Slide 11: Operating expense analysis
Operating expense analysis | Increased costs reflect significant growth in activity • H1 FY22 operating expenses of $7.1m below pre-pandemic levels - fundamentally more ($000s) efficient and profitable 156 185 7,118 company. 7,291 66 97 139 309 278 • H1 FY22 costs include 69 growth investments in 22
Slide 12: Positive free cash flow
Positive free cash flow • Cash on hand of $11.3m (up $0.6 from | Strong balance sheet to fund growth June 2021) as at 31 December 2021. • Positive operating cash flow of $5.2m up 139% compared to PCP. Cash Flow Waterfall ($m) • 100% cash conversion. Working capital Free cash flow $4.3m, up 209% on P
Slide 13: Segment reporting | Parking Management
Segment reporting | Parking Management | 70% revenue growth in H1 vs PCP with adjusted EBITDA up 109% on PCP Margin reflects removal of pandemic restrictions in the UK, Q1 restrictions in Australia and ongoing restrictions in NZ. Parking Management ($000s) 15,504 109% 37.4% 30.6% 31.9% Adjusted 11,5
Slide 14: Segment reporting | Technology
Segment reporting | Technology | Strong technology order book - $4.8m Technology ($000s) 4,631 $ 4.8m Committed orders 11.2% 11.7% 3,457 3,409 3,309 Adjusted EBITDA 2,316 (18.1%) (35.0%) (10.4%) 521 403 up 267% *Compared to PCP (618) (1,156) (242) Technology firm orders ($m) 4.8 3.3 3.0 1.5 Revenue
Slide 15: Strong balance sheet to fund growth strategy
Strong balance sheet to fund • $11.3m of cash – capital to fund growth strategy growth strategies. • 22% Return on Equity (H1 annualised). Group Financial Position ($m) • In October 2021 the Company commenced repayments of a UK $m Dec-21 Jun-21 Coronavirus Business Interruption Loan ($2.7m) in 36 eq
Slide 16: H1 FY22 Business Update
SMART = PARKING H1 FY22 Business Update
Slide 17: Management services – estate growth
Management services – estate growth UK ANPR roll out continues • 93 new sites installed in H1 FY22 Site Reconciliation with 58 removed. FY21 H1 FY22 • 68 new sites from acquisition of 176 772 Enterprise Parking Solutions. EPS (68) 737 APAC (15) (58) • As highlighted in the AGM, higher than usual rem
Slide 18: UK – Multiple growth drivers
UK – Multiple growth drivers | Significant recovery in PBNs, new record level FY22 growth under way • PBN growth up 74% on Parking Breach Notices Issued PCP (up 35% on 136,433 H1 FY20 pre-COVID). 127,815 • Expanded and enhanced 103,432 105,921 sales and account 93,510 88,315 management capability -
Slide 19: UK Parking Code of Practice
UK Parking Code of Practice | New code to increase potential of market consolidation UK Government has announced the details of the proposed new Code of Practice, updates include: • The establishment of a Scrutiny & Oversight Board. • Creation of a single appeals service. • Introduction of a new ran
Slide 20: APAC growth strategy
APAC growth strategy Parking Breach Notices Issued Revenue ($000s) EBITDA ($000s) 365 162 7,090 3,432 5,457 1,738 4,628 (97) 161 203 0 22 3,719 3,658 (44) (119) 261 0 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 H1 FY21 H2 FY21 H1 FY22 H1 FY21 H2 FY21 H1 FY22 NZ Australia NZ Australia NZ Australia NEW ZEALAND AU
Slide 21: European growth strategy
European growth strategy | German market entry • Legal entity set up and infrastructure in place with regional office established in Düsseldorf. • Leveraging tried and tested SPZ knowledge and experience we are executing market entry plan and differentiating ourselves through technology. • As of 1st
Slide 22: New markets and M&A
New markets and M&A | Accelerating growth Ongoing The Company is pursuing earnings July January accretive M&A opportunities and 2021 The Company The Company utilising operating successfully launched successfully launched a technology driven a technology driven leverage to accelerate Parking Manageme
Slide 23: Global technology update
Global technology update | Strong technology order book - $4.8m • New business growth in H1 takes order book to $4.8m • Key orders from: – Stride Properties – NZ – City of Bunbury – WA – The Alfred – VIC – MVCC – VIC – Snowdonia – UK • Full tech stack will be delivered across key orders in H2, inclu
Slide 24: FY22 priorities
FY22 priorities • Deliver revised growth target of 1,500 global sites under management by June 2025. • Continued execution of UK growth strategy – 200 new organic sites in FY22. • Grow new territories with ANPR model in countries with appropriate jurisdictional framework. • APAC Parking Services (NZ
Slide 25: Supplementary Information
“PARKING Supplementary Information
Slide 26: Segment reporting
Segment reporting Adjusted Revenue Adjusted EBITDA EBITDA Margin ($000’s) H1 FY21 vs H1 FY21 vs H1 FY21 H1 FY22 H1 FY21 H1 FY22 H1 FY21 H1 FY22 H1 FY22 H1 FY22 Parking Management 8,674 15,503 78.7% 2,771 5,799 109.3% 31.9% 37.4% Technology Division 2,316 3,457 49.3% (242) 403 (266.5%) (10.4%) 11.7%
Slide 27: Smart City Product Launch
Smart City Product Launch 6 PARKING MAP CASE – NEW Valve Position Enforcement App & Compliance Proximity Infringement FRONT L R Dashboard PWX836 IN-PROGRESS 6m Infringement policy* Cases McNab St, Penrose, Auckland... CASE – NEW Payment Expired Overstay 04:45 pm – Thu 23 Jan 2020 Management System M
Slide 28: Management services: How it works
Management services: How it works | Parking management improving customer satisfaction and revenue generation. • ANPR | Automatic Number Plate Recognition • Pay & Display | ANPR Linked Automated Payment System • Site Surveys | Real-time information, analysis and trend data • Parking Attendants | Tra
Slide 29: ANPR: How it works
ANPR: How it works | Automatic number / license plate recognition (ANPR) is a reliable, cost effective off-street parking management solution. It is proven to serve a wide range of industries including supermarkets, retail, hotels, hospitals and leisure centres. Smart Parking’s ANPR solution ensures
Slide 30: Technology: How it works
Technology: How it works | Smart Parking’s technology provides effective parking management solutions around the world. Technology: How it works Digital Displays Air Quality | Smart Parking’s technology provides effective parking management Lighting Surveillance solutions SmartCloud around the world
Slide 31: Smart Parking app
Smart Parking app | The Smart Parking app and its customised Miami, Cardiff, Adelaide, Moreton Bay, Moonee Valley, Livingstone Shire and Les Mills apps delivered. Features and benefits: • Available for both Android and iOS. • Provides detailed information around hours, tariffs and bay types. • Shows
Slide 32: Glossary and Smart Parking legal disclaimer
Glossary Adjusted EBITDA – The Board assesses the underlying performance of the Group based on a measure of Adjusted EBITDA which takes into account costs incurred in the current period but which are non-operating and/or are not expected to occur in the future. EBITDA – represents Earnings before in
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