Kelsian Group Limited · ASX:KLS
Kelsian — Macquarie Australia Conference 2023
25 slides from Kelsian's conference presentation, May 2, 2023
Slide 1: ASX Announcement: Presentation at 2023 Macquarie Australia Conference
Kelsian Group Limited ABN 49 109 078 257 L3, 26 Flinders Street Adelaide SA 5000 +61 (0)8 8202 8688 www.kelsian.com ASX Announcement 2 May 2023 Presentation at 2023 Macquarie Australia Conference For personal use only Kelsian Group Limited (ASX:KLS) (“Kelsian”) provides for information a copy of the
Slide 2: Macquarie Australia Conference Presentation
For personal use only Kelsian Group Limited Macquarie Australia Conference Presentation Clint Feuerherdt Andrew Muir Group Chief Executive Officer Group Chief Financial Officer 2-3 May 2023 Leichhardt Depot, Sy dney NSW
Slide 3: Agenda: Introduction to Kelsian
For personal use only 1. INTRODUCTION TO KELSIAN 2. 1HFY23 Highlights 3. Growth Strategy 4. All Aboard America! Holdings Acquisition 5. Executive Summary Joondalup Depot, Perth, WA
Slide 4: Introduction to Kelsian
Introduction to Kelsian Long-term, low-risk, government-backed service contracts provide consistent, predictable earnings base For personal use only * Contracted or non-discretionary rev enues ^ Operational Numbers as at 31 December 2022 ‡ Includes Channel Islands\ © Kelsian Group Limited | Macquari
Slide 5: Bus sector offers compelling solution to drive decarbonisation, reduce congestion
Bus sector offers compelling solution to drive decarbonisation, reduce congestion Transport is Australia's third largest source of greenhouse gas emissions with the highest rate of growth For personal use only Infographic Source: Institute for Sensible Transport (www.sensibletransport.org.au) Public
Slide 6: Overview of business divisions
Overview of business divisions Kelsian bus divisions represent ~75% of group revenue^ For personal use only * Rev enue weighted av erage remaining contract term as at 31 December 2022; contract term includes contract extension options ^ 1HFY 23 Total Rev enue per Segment Note f or Australian and Int
Slide 7: 1HFY23 Highlights
For personal use only 1. Introduction to Kelsian 2. 1HFY23 HIGHLIGHTS 3. Growth Strategy 4. All Aboard America! Holdings Acquisition 5. Executive Summary Swan Riv er, Perth WA
Slide 8: 1HFY23 financial snapshot
1HFY23 financial snapshot* Strong performance from Marine & Tourism business underpins solid growth For personal use only Underlying results Six months to 31 December 2022 Revenue Balance Sheet strength used to support acquisitions $678.3 million ▲ 6.2% pcp and asset renewal Underlying EBIT Senior n
Slide 9: 1HFY23 operational & strategic highlights
Strong rebound in domestic tourism 1HFY23 operational & strategic highlights demand Solid growth in challenging operating environment For personal use only • Retained Region 3 contract in NSW • Signed new contracts in NSW, commencing in August 2023 (Regions 3 and 13) and in October 2023 (Regions 2 a
Slide 10: Kelsian's recent achievements
Kelsian’s recent achievements Solid base creates optionality to pursue global growth strategy For personal use only Solid 1HFY23 result reflecting benefits of long-term, low-risk government-backed ✓ service contracts, providing consistent predictable earnings base, strong balance sheet Majority of c
Slide 11: Expansion into more Sydney Bus Regions
Expansion into more Sydney Bus Regions Success in new Sydney bus services contracts For personal use only © Kelsian Group Limited | Macquarie Australia Conf erence May 2023 10
Slide 12: Growth Strategy
For personal use only 1. Introduction 2. 1HFY23 Highlights 3. GROWTH STRATEGY 4. All Aboard America! Holdings Acquisition 5. Executive Summary Brisbane City Cat
Slide 13: Attractive organic growth opportunities
Attractive organic growth opportunities Australian Bus & International Bus to benefit from strong tender pipeline of long-term contracts For personal use only © Kelsian Group Limited | Macquarie Australia Conf erence May 2023 12
Slide 14: Large and attractive USA market
Large and attractive USA market Proposed acquisition of AAAHI provides an established platform in the USA to pursue growth in existing For personal use only high population growth states and expand into the US$30 billion+ broader bus transportation market All services in total USA market Forecasted
Slide 15: All Aboard America! Holdings Acquisition
For personal use only 1. Introduction 2. 1HFY23 Highlights 3. Growth Strategy 4. ALL ABOARD AMERICA! HOLDINGS ACQUISITION 5. Executive Summary All Aboard America! Holdings
Slide 16: Investment highlights
Investment highlights Agreement to purchase AAAHI subject to satisfaction of certain conditions Entry into the large and attractive USA market, through an established, highly regarded, customer centric operator with a multi- For personal use only state footprint Further diversifies Kelsian’s multi-m
Slide 17: AAAHI overview
AAAHI overview AAAHI is the 4th largest motorcoach operator in the USA1, with a decentralised operating model servicing corporate, For personal use only government, education, LNG, and tourism sector customers Key statistics 6 2,000+ US$208 million 85% Integrated brands Customers in CY22 728 / 335 C
Slide 18: Overview of AAAHI brands
Overview of AAAHI brands Comprehensive platform of six geographically diversified, highly regarded brands with strong For personal use only cultural alignment operating in seven states Multi-jurisdictional, diversified footprint across high population growth states in the south and south -west of th
Slide 19: Strong financial profile
Strong financial profile AAAHI has a diversified revenue mix and a track record of earnings growth For personal use only Revenue (US$m, LTM)1 EBITDA (US$m, LTM) and margin profile (%)1 Growth has continued Impacted by COVID-19 $208m Impacted by COVID-19 since CY22 $180m $51m $158m $43m $147m $125m $
Slide 20: Favourable themes and tailwinds of the USA market
Favourable themes and tailwinds of the USA market Prevailing investment and growth in AAAHI’s key end-markets support positive outlook For personal use only Global reset in energy supply focused on security driving Substantial committed government investment ✓ historic investment in USA LNG capacity
Slide 21: Further diversifies Kelsian's international operations
Further diversifies Kelsian’s international operations The proposed acquisition of AAAHI will further diversify Kelsian’s end-market exposure and For personal use only meaningfully increases the International Bus Segment’s contribution to the combined group 1 Combined group REVENUE BY END-MARKET Oth
Slide 22: Diverse and loyal blue-chip customer base
Diverse and loyal blue-chip customer base AAAHI has a diverse and loyal base of over 2,000 customers with high levels of contract renewals For personal use only and recurring revenue Corporate (inc. LNG) Government Education Other CY22 revenue 1 US$101 million US$48 million US$36 million US$20 milli
Slide 23: Executive Summary
For personal use only 1. Introduction to Kelsian 2. 1HFY23 Highlights 3. Growth Strategy 4. All Aboard America Holdings Acquisition 5. EXECUTIVE SUMMARY Magnetic Island, QLD
Slide 24: Executive summary
Executive summary Highly defensive and resilient business model For personal use only Strong track record in delivering on growth strategy • Long-term, low-risk, government backed service contracts provide consistent, predictable earnings base and a natural hedge against inflation • Opportunity to l
Slide 25: Important notice and disclaimer
Important notice Disclaimer For personal use only This document has been prepared by Kelsian Group Limited (ACN 109 078 257) (Kelsian Group or the Company). No party other than Kelsian Group has authorised or caused the issue of this document, or takes responsibility for, or makes any statements, re