Slide 1: HY23 Results Presentation
25 August 2023 HY23 Results Presentation Dean Banks: Chief Executive Officer Members of Ventia’s Lane Cove Tunnel Incident Stuart Hooper: Chief Financial Officer Response team
Slide 2: Acknowledgement of Country and Mihi
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, present and emerging. He tauto
Slide 3: Safety is our licence to operate
HY23 Results Presentation Safety is our Total Recordable Injury Frequency (TRIFR) Serious Injury Frequency Rate (SIFR) licence to operate 5 Improvement 0.5 Continuing trajectory of of 11% on HY22 Improvement of 39% on HY22 improvement in our 4 0.4 safety performance 3 0.3 2 0.2 1 0.1 0 0 FY21 HY22 F
Slide 4: Key messages on HY23 performance
HY23 Results Presentation Key messages on HY23 performance Delivering on Realising Creating long-term expectations sustainable growth value for shareholders Solid performance Redefining service On track for delivery and growth across all excellence displayed in of NPATA guidance towards sectors rene
Slide 5: Positioned for continued sustainable growth
HY23 Results Presentation Positioned for continued sustainable growth Work in Hand ($b) Work in Hand profile ($b) Growth of 1.0% $18.0 $12.0 $10.0 $17.0 $8.0 9.1 $16.0 17.5 $6.0 17.3 $15.0 $4.0 4.8 $2.0 3.6 $14.0 $0.0 HY22 HY23 2H23-2025 2026-2027 2028+ Work in Hand as at 30 June 2023 $17.5 billion
Slide 6: Strong HY23 financial results
HY23 Results Presentation Strong HY23 TOTAL REVENUE EBITDA financial results 11.0% on HY22 10.7% on HY22 Tracking towards top end of 7-10% NPATA $2,786.8m $225.1m growth guidance range for FY23 EBITDA MARGIN NPATA HY23 statutory financials Stable on HY22 11.3% on HY22 as at 30 June 2023 8.1% $94.8m
Slide 7: Focus on service excellence leading to renewals and new work
HY23 Results Presentation Focus on service excellence leading to renewals and new work Defence & Social Infrastructure Infrastructure Services Transport Defence Equipment Maintenance – Yallourn – renewal Transurban QLD – new work renewal • Contract value $150m over 6 years • Contract value $210m ove
Slide 8: Our strategy in action: Redefining Service Excellence
HY23 Results Presentation Our strategy in action: Redefining Service Excellence Client Focus Innovation Sustainability Renewal rate 90% Project on a page (PoP) First electric Truck Mounted Attenuator (TMA) Repeat clients are the ultimate measure of success. This half, our Our PoP platform delivers a
Slide 9: Strong interim dividend, demonstrates consistent and reliable growth
HY23 Results Presentation Strong interim dividend, demonstrates Dividends consistent and reliable growth Interim dividends paid and declared (cps) 8.31¢ Interim dividend for HY23 per share declared Declared Paid 75% NPATA Target payout ratio of 60-80% of NPATA Dividend 8.31 cents Growth Cents per sh
Slide 10: People are at the heart of our success
People are at the heart Net hirer1 over HY23 New offices opened in of our success Melbourne and Auckland supporting 115 people 870+ people Increase in new Banksia award for graduates (55% female) Diversity and Inclusion – Work in disability employment 50% 1st Women in Executive Supply Nation 2023 aw
Slide 11: Financial Results
Financial Results Ventia fire and rescue services team at RAAF base 11 Edinburgh, South Australia
Slide 12: Revenue growth across all sectors, Transport and Telecommunications EBITDA outperforming
HY23 Results Presentation Revenue growth across all sectors, Transport and Telecommunications EBITDA outperforming Defence & Infrastructure Telecommunications Transport Social Infrastructure Services Revenue $1.2b 5.5% Revenue $632.6m 13.1% Revenue $654.4m 12.7% Revenue $320.6m 27.3% EBITDA $78.1m 4
Slide 13: Delivery of cash backed profits has clear focus
HY23 Results Presentation Delivery of cash backed profits has clear focus Clean HY23 result, no pro-forma adjustments to Statutory numbers Revenue $ millions HY22 HY23 Delta Revenue growth of 11.0% outperformed underlying market Total revenue 2,510.0 2,786.8 11.0% growth of ~6.6% demonstrating an in
Slide 14: Strong financial flexibility, liquidity and material headroom
HY23 Results Presentation Strong financial flexibility, liquidity and material headroom 30 June 2023 metrics ($ millions) Leverage Ratio1 continues Interest Cover Ratio more to improve as EBITDA grows than 2x covenant Cash on hand 321.0 Undrawn revolver 400.0 3.5 14 13.3 Total liquidity 721.0 3 12 2
Slide 15: PPA provisions continue to reduce in line with expectations
HY23 Results Presentation PPA provisions continue to reduce in line with expectations Unfavourable contracts ($m) Onerous contracts ($m) Provision commentary • Provisions continue to roll off as expected, 120 120 with no increases to onerous or unfavourable • Reduction in provisions is favourable to
Slide 16: Workforce is stabilising during challenging labour market
HY23 Results Presentation Workforce is stabilising during challenging labour market • As at June 2023, Ventia has over • Ventia has a large workforce of 3% 8% 15,700 employees, in addition to employees, casual labour and over 20,000 subcontractors 17% subcontractors, which enables • Attrition is sta
Slide 17: Outlook
Outlook Members of the Ventia corporate team participating 17 in a site visit on the City of Sydney contract
Slide 18: Ventia’s long-term investment proposition
HY23 Results Presentation Ventia’s long-term investment proposition Revenue targeted to grow Diligent focus on faster than market cash backed profits 7-10% 80-95% Average revenue growth Cash flow conversion High conversion of Growing shareholder profits into dividends dividend 75% Annual distributio
Slide 19: Ventia has reduced scope 1 and 2 emissions 9.0% in HY23
HY23 Results Presentation Ventia has reduced scope 1 and 2 emissions 9.0% in HY23 ~9% SCOPE 1 ~1% SCOPE 2 ~90% SCOPE 3 Direct (Owned) Emissions Indirect (Purchased) Emissions Other Indirect (Purchased) Emissions ONSITE emissions direct combustion PURCHASED energy electricity for heating/cooling EMPL
Slide 20: Significant future opportunity across all sectors
HY23 Results Presentation Significant future opportunity across all sectors Defence & Social Infrastructure Infrastructure Services Telecommunications Transport • Increased scope and volume of existing • Growing demand for Australia’s resources • A clear diversification strategy has been • Long-term
Slide 21: Affirming guidance in the top end of the range
HY23 Results Presentation Affirming guidance in the top end of the range Delivering on Realising Creating long-term expectations sustainable growth value for shareholders Solid financial performance Resilient and diversified Delivering stable financial with growth of more business and strong renewal
Slide 22: Disclaimer
HY23 Results Presentation • Disclaimer This presentation is in summary form and is not necessarily complete. It should be read together with the Company’s Half Year Report 2023 lodged with the ASX on 25 August 2023. This presentation contains information that is based on projected and/or estimated e
Slide 23: Thank you
ventiaW Thank you