Slide 1: HY22 Results Presentation
HY22 Results Presentation Dean Banks – Group Chief Executive Officer Stuart Hooper – Chief Financial Officer
Slide 2: Disclaimer
HY22 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 2022 lodged with the ASX on 25 August 2022. This presentation contains information that is based on projected and/or estimated exp
Slide 3: Acknowledgement of Country and Mihi
HY22 RESULTS PRESENTATION 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, pres
Slide 4: Performance highlights for HY22
HY22 RESULTS PRESENTATION Performance highlights for HY22 Safety performance Work in Hand of $17.3b, Pro forma Revenue up Maintained EBITDA improved, TRIFR1 down up 38.0% compared to 8.7%, pro forma EBITDA margin, whilst 29.4% compared to 30 June 21 (up 3.1% on up 7.7% and pro navigating weather, 30
Slide 5: Delivered on half year expectations and on track to hit full year forecast
HY22 RESULTS PRESENTATION Delivered on half year expectations and on track to hit full year forecast Pro forma HY22 as at 30 June 20221 TOTAL REVENUE EBITDA EBITDA MARGIN $2,510.0m $203.3m 8.1% 8.7% on HY21 7.7% on HY21 0.1 ppts on HY21 ON ONTRACK TRACKFOR FORFY22 FY22FORECAST FORECAST ON ONTRACK TR
Slide 6: Diversified and resilient portfolio offering consistent group performance
HY22 RESULTS PRESENTATION Diversified and resilient portfolio offering consistent group performance Defence & Social Infrastructure Infrastructure Services Telecommunications Transport Total revenue $1.1b $0.6b $0.6b $0.3b HY22 PRO FORMA 7.4% on HY21 1 .2% on HY21 5 8.4% on HY21 1 9.3% on HY21 54% o
Slide 7: Strategically navigating current market headwinds
HY22 RESULTS PRESENTATION Strategically navigating current market headwinds Weather events COVID-19 Labour availability Inflation • Total revenue up by 8.7%, • Sick leave has increased by 0.7pp to 3.0% • Recruited approximately 2,700 roles • More than 96% of HY22 revenue has an illustrating minimal
Slide 8: Contracted revenue protected by escalation mechanisms
HY22 RESULTS PRESENTATION Contracted revenue protected by escalation mechanisms HY22 revenue by contract profile ($2.5b) HY22 revenue by escalation mechanism ($2.5b) • Average contract tenure of 5.5 years (7.2 years with extension options) • Price escalations built into 99% of contracts Indexation 6
Slide 9: Continued bid success underpins future growth
HY22 RESULTS PRESENTATION Continued bid success underpins future growth Whole of Australian Government Asset Maintenance Services Commonwealth Government NSW Land and Housing Corporation (LAHC) (Department of Finance) Delivering more than 350,000 programs of Leasing and facilities management work an
Slide 10: Sustainable dividend growth providing attractive returns for shareholders
HY22 RESULTS PRESENTATION Sustainable dividend growth providing attractive returns for shareholders Pro forma NPATA1 ($ millions) Dividends 171.8 146.8 119.5 7.47 cents 75% pro forma NPATA Interim dividend for HY22 Paid out in FY21 and HY22 101.5 per share declared Future target payout ratio of 60-8
Slide 11: Financial results
HY22 RESULTS PRESENTATION Financial results Ventia is a finalist for the ACOMM Diversity & Inclusion award for our partnership with Australian Spatial Analytics (ASA), an organisation dedicated to training and employing remarkable young spatial analysts with autism. Members of the ASA team last year
Slide 12: Successful focus on delivery of cash backed profits
HY22 RESULTS PRESENTATION Successful focus on delivery of cash backed profits $ millions, pro forma HY21 HY22 $ millions, pro forma HY21 HY22 Total revenue 2,309.5 2,510.0 Total capital expenditure 5.5 15.8 Expenses (2,120.7) (2,306.7) Capital intensity 0.2% 0.6% (Total capital expenditure / Total r
Slide 13: Pro forma EBITDA performance demonstrates business progression
HY22 RESULTS PRESENTATION Pro forma EBITDA performance demonstrates business progression Pro forma EBITDA ($m) and EBITDA Margin (%) • Increased services revenue and management of cost base underpins EBITDA growth and margins • HY22 margin of 8.1% expected to be relatively 500 stable through FY22, d
Slide 14: Strong balance sheet with financial flexibility
HY22 RESULTS PRESENTATION Strong balance sheet with financial flexibility 30 June 2022 metrics ($ millions) • Credit metrics and balance sheet continue to strengthen Cash on hand 234.2 • Leverage Ratio1 and Interest Cover Ratio improved 0.4 and 1.0 times respectively over the 12 months to Undrawn re
Slide 15: Outlook
HY22 RESULTS PRESENTATION Outlook Ventia has agreements in place with both CareerTrackers and CareerSeekers to facilitate refugee, asylum seeker and indigenous placements every year. Throughout 2021 Ventia placed 11 indigenous students and 8 mid-career refugees across the business. 14
Slide 16: Sustained growth in essential services underpinned by market tailwinds
HY22 RESULTS PRESENTATION Sustained growth in essential services underpinned by market tailwinds Estimated addressable market size Demand drivers across Australia and New Zealand ($b)1,2,3 Size and growth of asset base • $248b of spend allocated to government infrastructure spending nationally, over
Slide 17: Making progress on our sustainability targets
HY22 RESULTS PRESENTATION Making progress on our sustainability targets Environment Social Governance Targets Targets Targets • Committed to Science Based Targets initiative to set emission • Aligned to HESTA 40:40 Vision commitment • Compliance with the ASX Corporate Governance Principles reduction
Slide 18: Differentiating through our strategy to 'Redefine Service Excellence'
HY22 RESULTS PRESENTATION Differentiating through our strategy to 'Redefine Service Excellence' Client Focused Innovation Sustainability Tenant satisfaction ratings consistently exceed 90% Up to 60% cost reduction through remote monitoring 15 tonnes of combat uniform diverted from landfill Record br
Slide 19: People are at the heart of our success
HY22 RESULTS PRESENTATION People are at the heart of our success Safety performance Healthy Mind Flexible workforce Highly motivated Female participation Net hirer over improved over HY21 ambassadors (employees and employees with 6 months to 30 June subcontractors) engagement at 29% 200 +35,000 78%
Slide 20: HY22 performance provides a platform to reaffirm FY22 forecast
HY22 RESULTS PRESENTATION HY22 performance provides a platform to reaffirm FY22 forecast We have a resilient and Demand for diversified business with essential services increasing momentum forecast to grow Positioned to deliver Differentiating through cash backed profits our strategy to Redefine and
Slide 21: Q&A
HY22 RESULTS PRESENTATION Q&A Ventia has been named as the third most attractive place to work in New Zealand in the 2022 Randstad annual employment survey. More than 4,000 members of the public responded to the survey and rated Ventia highly for being financially healthy, offering interesting job c
Slide 22: Appendix
HY22 RESULTS PRESENTATION Appendix Ventia has recently taken delivery of a second-generation model Mirai hydrogen vehicle, one of only 20 in Australia, for its Western Roads Upgrade project team in Victoria. The vehicle is estimated to reduce carbon emissions by more than seven tonnes compared to a
Slide 23: Statutory NPAT to pro forma NPATA reconciliation
HY22 RESULTS PRESENTATION Statutory NPAT to pro forma NPATA reconciliation HY21 HY22 $m $m Commentary Statutory NPAT 39.9 105.0 • Broadspectrum pro forma adjustments excludes the gain on sale of APP Corporation Operating expense adjustments (pre-tax) Broadspectrum pro form adjustments (24.7) – • Bro
Slide 24: Pro forma consolidated statements of profit or loss
HY22 RESULTS PRESENTATION Pro forma consolidated statements of profit or loss HY21 HY22 Change $ millions $m $m % Total revenue 2,309.5 2,510.0 8.7% EBITDA 188.8 203.3 7.7% EBITDA % 8.2% 8.1% (0.1ppts) Depreciation (51.9) (51.7) (0.4%) Amortisation of software (14.9) (14.3) (4.0%) EBITA 122.1 137.3
Slide 25: ventia
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