Kelsian Group Limited · ASX:KLS
Kelsian — H1 2025 Earnings Presentation
39 slides from Kelsian's earnings presentation, Feb 26, 2025
Slide 1: FY25 Half Year Results Investor Presentation
Kelsian Group Limited FY25 Half Year Results Investor Presentation Clint Feuerherdt Managing Director & Group CEO Andrew Muir Group Chief Financial Officer Graeme Legh CEO, All Aboard America! Holdings Inc (‘AAAHI’) Group CEO-elect (effective 1 April 2025) 26 February 2025
Slide 2: Agenda
Agenda 1. Key Takeaways & 1HFY25 Overview 2. 1HFY25 Financial Results 3. Divisional Performance 4. Capital Management & Allocation Framework 5. Growth & Outlook Appendix Whitsunday Islands, Queensland 1HFY25 1HFY25 ResultsResults | Investor | Investor Presentation Presentation 2 2
Slide 3: Key Takeaways & 1HFY25 Overview
1 Key Takeaways & 1HFY25 Overview Houston – Texas 1HFY25 Results | Investor Presentation 3
Slide 4: Key takeaways
Key takeaways Performance in line, capital management framework completed, portfolio review ongoing • 1HFY25 financial performance in-line with expectations2 Capital Management and Allocation Framework Targets _________________________ ________________________ • On track to achieve FY25 Earnings Gui
Slide 5: 1HFY25 financial snapshot
1HFY25 financial snapshot Performance in line with expectations ______________________ _______________________ Revenue Underlying1 EBITDA 1HFY25 results snapshot Revenue growth underpinned by full period of Western Sydney bus $1,071.8m • $132.2m contracts, Bankstown Rail Replacement, contract indexa
Slide 6: 1HFY25 operational & strategic overview
1HFY25 operational & strategic overview • Sydney (Bankstown) rail replacement commenced successfully in September with 60 buses & 140 new drivers • Full half contribution of Western Sydney contracts v pcp • Region 6 (end date 30 June 2026) continues to underperform the rest of the contract portfolio
Slide 7: 1HFY25 safety initiatives
1HFY25 safety initiatives • Target reduction of 10% in Injury Frequency Rates (LTIFR and TRIFR) year-on-year • Performing better than target during 1HFY25 • Early injury intervention program Transit Care commenced with demonstrable improvement in safety (Australian Bus) • Several safety campaigns be
Slide 8: 1HFY25 Financial Results
2 1HFY25 Financial Results New SEQ vessel 1HFY25 Results | Investor Presentation 8
Slide 9: Summary Profit & Loss Statement
Summary Profit & Loss Statement Strong revenue growth continues across all businesses • Revenue growth of 9.1% reflects full period of new Sydney contracts, Half year ended 31 December 1HFY25 1HFY24 Variance Bankstown rail replacement from September, fare increases and indexation $m $m % impacts Rev
Slide 10: Cashflow
Cashflow Continued strong cash conversion Half year ended 31 December 1HFY25 1HFY24 Variance $m $m % Receipts from customers 1,074.6 968.6 10.9% __________________________ ___________________________ Payments to suppliers (965.9) (862.7) 12.0% Gross Operating Cashflow Net Investing Cashflow Gross op
Slide 11: Balance Sheet
Balance Sheet • Increased assets and liabilities reflect capital program and assets acquired Balance as at 31 Dec 2024 30 Jun 2024 Variance (vessels, buses, motorcoaches and land & buildings) $m $m % Cash and cash equivalents 131.3 134.5 (2.3%) • Limited recourse debt is the wholly owned, special pu
Slide 12: Capital expenditure underpins future growth
Capital expenditure underpins future growth Majority of FY25 total capex was incurred in 1HFY25 1HFY25 capex $119.5m (excluding proceeds from asset sales of $6.8m) • Expectations for FY25 capex unchanged at ~$185m* _____________________________________________________________________________ • Over
Slide 13: Divisional Performance
3 Divisional Performance 1HFY25 Results | Investor Presentation 13
Slide 14: Overview of 1HFY25 performance | Australian Bus
Overview of 1HFY25 performance | Australian Bus • Revenue includes full period of new Sydney contracts (lower Half year ended 31 December 1HFY25 1HFY24 Growth margin at start as expected) $m $m % • Bankstown rail replacement commenced, start-up and Revenue 564.3 501.6 12.5% mobilisation costs well m
Slide 15: Overview of 1HFY25 performance | International
Overview of 1HFY25 performance | International Singapore • Absenteeism structural – more staff employed to manage Half year ended 31 December 1HFY25 1HFY24 Growth $m $m % • On road performance bonuses being achieved Revenue 318.5 305.0 4.4% • New services and routes secured Direct expenses (218.0) (
Slide 16: All Aboard America! Holdings, Inc. ('AAAHI')
All Aboard America! Holdings, Inc. (‘AAAHI’) Key achievements since Kelsian acquisition • Successful integration and retention of strong local management • Renewed all key contracts; many subject to competitive procurement process • Added two new Top 10 contract clients • Organic expansion into new
Slide 17: AAAHI outlook and growth
AAAHI outlook and growth • AAAHI continues to represent a highly scalable platform in a fragmented and growing market • Investment in people, assets and systems under Kelsian ownership has positioned business to take advantage of future growth opportunities • Ongoing growth from existing industrial
Slide 18: Overview of 1HFY25 performance | Marine & Tourism
Overview of 1HFY25 performance | Marine & Tourism Overview • Subdued domestic tourism, international visitation remains below pre COVID levels Half year ended 31 December 1HFY25 1HFY24 Growth $m $m % • Inflation impacting costs, in part offset by fare increases Revenue 189.1 176.1 7.4% • K'gari (Fra
Slide 19: Kangaroo Island: 25-year exclusive licence from mid 2025
Kangaroo Island: 25-year exclusive licence from mid 2025 More trips per week in peak season (8 months / year) • 11 trips per day on weekdays, 9 trips per day on weekends each way, compared to a maximum of 7 trips per day currently Increased capacity • Average vessel vehicle lane length increases by
Slide 20: Overview of 1HFY25 Performance | Corporate
Overview of 1HFY25 Performance | Corporate Corporate costs underpin growth New Global Group Finance & HR system Half year ended 31 December 1HFY25 1HFY24 Growth $m $m % • Selected the Workday software solution to provide a Revenue - - consolidated platform to manage global Finance and HR Direct expe
Slide 21: Capital Management & Allocation Framework
4 Capital Management & Allocation Framework Bankstown Rail Replacement buses – Sydney 1HFY25 Results 1HFY25| Investor ResultsPresentation | Investor Presentation 21 21
Slide 22: Capital management and allocation framework
Capital management and allocation framework Capital management and allocation framework complete. Portfolio review progressing well Status update • At the AGM in October 2024, Kelsian confirmed that it was examining its capital management and allocation framework • A detailed review has now been com
Slide 23: Maintaining a strong balance sheet, facilitating growth and maximising total shareholder returns
Capital management and allocation framework Maintaining a strong balance sheet, facilitating growth and maximising total shareholder returns Cash from operating activities Management focused on maximising cash conversion Net sustaining capex1 Servicing financial obligations Servicing tax obligations
Slide 24: Net sustaining capex
Net sustaining capex ~$85m1 of average annual net sustaining capex is required to maintain and replace current fleet of assets in a ‘steady-state’ through-the-cycle Overview of through-the-cycle average annual net sustaining capex Net sustaining capex by division ($m)1,2 • Defined as maintenance plu
Slide 25: Divisional capital requirements and characteristics
Divisional capital requirements and characteristics Target returns for investment assessed by business to ensure optimal capital allocation Approximate Volume and Indicative target returns revenue under farebox Typical contract Average annual net for investments Division Business Asset ownership con
Slide 26: Balance sheet and leverage
Balance sheet and leverage Leverage of 3.2x as at 31 December 2024, calculated excluding the impact of non-recourse SPV debt and the corresponding SPV related earnings Leverage as at 30 June and 31 December 2024 Kelsian’s approach to assessing leverage Net debt 30 Jun 2024 31 Dec 2024 • SPV liabilit
Slide 27: Dividend policy
Dividend policy Modest reduction of target dividend payout ratio to 40-60% of Underlying NPATA Updated dividend policy Continuing to deliver attractive shareholder returns (cps) • Modest reduction of target dividend payout ratio to 40-60% of Underlying NPATA (previously 50-70%) • Intention to mainta
Slide 28: Return on Invested Capital
Return on Invested Capital Targeting group ROIC to be at least 200bps above pre-tax WACC over the medium term Investment discipline to maximise total shareholder returns Group ROIC1 performance over time • For growth capital investments, target ROIC1 greater than pre-tax WACC after three full years
Slide 29: Growth & Outlook
5 Growth & Outlook Jersey – Channel Islands 1HFY25 Results 1HFY25| Investor ResultsPresentation | Investor Presentation 29 29
Slide 30: Disciplined growth strategy
Disciplined growth strategy Kelsian to focus on improving returns through operational excellence from existing assets and selectively pursuing growth opportunities aligned to strategy and deliver against capital management targets Steps to executing on the growth strategy 1. Complete the capital man
Slide 31: FY25 Guidance / FY26 Outlook
FY25 Guidance / FY26 Outlook 2HFY25 Expectations1 • Full period of Bankstown rail replacement (6 months vs. 3 months in 1HFY24). Start-up costs not repeated • Continued ramp up in AAAHI construction and industrial client services • Efficiency program and service changes in Sydney to deliver improved
Slide 32: Kelsian investment proposition
Kelsian investment proposition A diversified global business with a strong track record of growth, underpinned by highly defensive, long-term, service contracts with highly creditworthy counterparties DIVERSIFIED BUSINESS Robust business model with diversified businesses, geographies, transport mode
Slide 33: Appendix
Appendix Illumina light show, K'gari 1HFY25 Results | Investor Presentation 33
Slide 34: Australian Public Transport Marine & Tourism International
Australian Public Transport Marine & Tourism International South Australia North Queensland Whitsundays Gladstone Kgari South East Queensland Western Australia Tasmania Northern Territory 1HFY25 Results | Investor Presentation 34
Slide 35: Buses, employees, customer journeys, vessels, depots
5,804 12,626 378M 115 124 BUSES EMPLOYEES CUSTOMER VESSELS DEPOTS/PORTS JOURNEYS 1HFY25 Results | Investor Presentation 35
Slide 36: 193 zero emission buses at end 1HFY25
193 zero emission buses (ZEBs) at end 1HFY25 Targeting 379 ZEBs by FY26 Largest electrified bus depot in Australia at Leichhardt (Sydney) 1HFY25 Results | Investor Presentation 36
Slide 37: Leverage
Leverage Following a period of heightened investment, Kelsian is expected to deleverage to the target range (2.0x – 2.5x) by the end of FY261 Net debt ($m) and leverage (x) profile (pre-AASB 16, excl. SPV)2,3 Key investments (FY24): • 5 new vessels in Marine and Tourism • Further electrification and
Slide 38: Calculation of historical ROIC
Calculation of historical ROIC Financial year ended 30 June $m 2020 2021 2022 2023 2024 Underlying EBITA (pre AASB-16) 50.7 101.3 98.1 102.2 151.9 SPV related adjustments to EBITA1 - - - - (4.3) Underlying EBITA (pre AASB-16, excludes SPV adjustments) 50.7 101.3 98.1 102.2 147.6 Average equity 379.1
Slide 39: Disclaimer
Disclaimer Basis of Preparation, Forward Looking Statements and Disclaimer 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