Slide 1: FY18 Results
For personal use only Smart Parking Limited (ASX:SPZ) FY18 Results 23 August 2018 CEO Paul Gillespie smartparking.com
Slide 2: Business overview
For personal use only Business overview World-leading technology for parking design, development World-leading and management technology for parking design, development and management. Management Services | UK Profitable and operates exclusively in the UK. Specialises in managing car parks on behalf
Slide 3: FY18 Highlights
For personal use only FY18 Highlights
Slide 4: FY18 results at a glance
FY18 results at a glance | Smart Parking Group For personal use only | Solid results strengthening SPZ for sustainable growth. • Growth in revenue, EBITDA, NPAT and operating cash flow demonstrate positive trend and successful strategy. Significantly strengthened SPZ processes and new professional U
Slide 5: FY18 operational highlights
FY18 operational highlights | Smart Parking Group For personal use only Parking Breach Notices Issued Sensors Installed During Year 392,026 13,700 294,340 7,500 FY17 FY18 FY17 FY18 Number of PBN’s issued increased by 33%* Technology wins across market verticals: Despite heavier seasonal impact than
Slide 6: FY18 operational highlights: execution priorities
FY18 operational highlights For personal use only | Smart Parking Group FY18 results underpinned by execution priorities: Increased sales and marketing capacity delivering positive results Growth in global operational capability to capture market opportunity Technology delivery bringing new smart ci
Slide 7: Market opportunity – Management services
For personal use only Market opportunity | Smart Parking Group – Management services UK ANPR enforcement market opportunity remains significant at 45,000 sites • SPZ currently managing 251 sites • Strengthened sales & operations to capture more market share • Recent Parking Eye acquisition by Macqua
Slide 8: Market opportunity – Technology
For personal use only Market opportunity | Smart Parking Group – Technology Global adoption of Smart Parking technology affirms SPZ strategy • Smart city adoption continues to rise through SPZ home markets (Australia, New Zealand & UK) • Growth in SPZ accounts with Coles and Wilson Parking demonstra
Slide 9: FY18 Financial Update
For personal use only FY18 Update Financial
Slide 10: FY18 Results – Group Profit & Loss
FY18 Results | Group Profit & Loss (m) FY17 FY18 For personal use only Revenue 24.7 30.7 Cost of Sales (10.5) (13.1) Smart Parking Group Gross Profit 14.1 17.6 | EBITDA margin growth accelerates into FY18 Overheads (12.8) (13.5) EBITDA 1.3 4.1 25% Revenue $31.0m* up 25% on FY17 Net Interest Received
Slide 11: FY18 Results – Revenue Bridge
32 FY18 Results | Revenue Bridge (m) For personal use only 0.6 31.0 5.7 0.2 3.1 (0.2) Smart Parking Group | Strong revenue growth for FY18 (2.4) (0.3) (0.5) Revenue $31.0m up 25% on FY17 with 25% 24.8 increases in both the parking management and technology divisions despite the loss of Matalan in FY
Slide 12: FY18 Results – EBITDA Bridge
FY18 Results | EBITDA Bridge (m) For personal use only 3.6 1.9 0.2 4.1 0.2 Smart Parking Group (0.7) | Positive EBITDA growth continues (1.8) 370% Adjusted EDITDA up 370% on FY17 Growth in gross profit in both management 0.9 services and technology underpins EBITDA performance 17 t t t ts er ge A of
Slide 13: Segment reporting – improved profitability
Segment reporting – improved profitability For personal use only Revenue EBITDA (000’s) FY18 FY18 FY17 FY18 FY17 FY18 vs FY17 vs FY17 Management Services 20,625 23,873 15.7% 4,698 6,521 38.8% Technology Division 5,146 8,860 72.2% (2,152) (565) 73.7% Research & Development 0 0 (582) (696) (19.6%) 25,
Slide 14: Management Services Financials
For personal use only FY18 Results | Management Services Financials (m) 24.0 Management services 21.0 | UK earnings growth continues 14% Revenue $24.0m up 14% on FY17 39% Adjusted EBITDA $6.5m up 39% on FY17 4.9% Adjusted EBITDA Margin Up from 22.4% to 27.3% 6.5 4.7 FY17 FY18 FY17 FY18 Revenue Adjus
Slide 15: H1 vs H2 Management Services
FY18 Results | H1 vs H2 Management Services 15 For personal use only 13.4 Management services (3.0) (0.1) 0.6 10.5 (0.2) (0.1) | H2 operational challenges impact revenue • Seasonality impact greater than normal due to significant poor weather events in the UK • PBN issuance also impacted by sub opti
Slide 16: ANPR Performance
FY18 Results | ANPR Performance (£) For personal use only (£) FY17 FY18 Per month Per month PBNs per site 200 130 New site ANPR performance | Business case affirmed Gross revenue 6,000 3,900 Return on investment for new sites Client share 0 (390) remains strong with average payback on site capex cir
Slide 17: Technology Financials
For personal use only FY18 Results | Technology Financials (m) 8.9 Technology | Record results proves global technology adoption 5.1 72% Revenue $8.9m up 72% on FY17 74% Adjusted EBITDA ($0.6m) improved 74% on FY17 31% Recurring revenue $2.7m up 31% on FY17 (0.6) Improved outlook for FY19 with firm
Slide 18: Research & Development Investment
For personal use only FY18 Results | Research & Development Investment 0.7 Research & development 0.6 | Smart city platform enhancements Smartphone payment application delivery Next generation sensor technology FY17 FY18 FY18 Results Presentation | smartparking.com | PAGE 18
Slide 19: Group Financial Position
FY18 Results | Group Financial Position (m) For personal use only $m June ’18 June ’17 Group financial position Current assets 23.2 21.4 | Strong balance sheet Non current assets 8.8 7.4 Total assets 32.0 28.8 Current assets Includes $13.4m of cash and Corporate Current liabilities 7.8 6.4 Bonds whi
Slide 20: Operating Cash Flow & Capital Expenditure
FY18 Results | Operating Cash Flow & Capital Expenditure (m) For personal use only 3.5 3.4 Group cash flow | Record operating cash flow 429% Record operating cash flows $3.5m up 429% compared to FY17. 1.5 Continued investment in equipment driving earnings growth in the UK services business. 0.7 FY17
Slide 21: FY18 Business Update
For personal use only FY18 Update Business
Slide 22: Business update: UK managed services
For personal use only Business update: UK managed services | Strong results despite H2 operational challenges • Strong focus on capturing market share in the ANPR parking enforcement market place – total market of 45,000 off street sites. • Execute strategy of win, install and operate 15 new sites p
Slide 23: Parking Breach Notices Issued
For personal use only FY18 Results | Parking Breach Notices Issued 107,504 104,115 Management services parking 97,406 90,516 breach notices 83,001 | Growth in parking breach notices continues 74,429 70,558 with the roll out of ANPR technology 58,837 PBNs up 33% on FY17 (excluding Matalan) Further si
Slide 24: Management services: Growing customer base
Management services | Growing customer base For personal use only • Customer engagement proving successful with new client wins each month and further account growth • Pipeline of new sites and clients growing beyond 200 locations • New Account Management and Direct Sales people making progress FY18
Slide 25: UK parking market news
For personal use only UK parking market news | UK parking services market sees M&A activity. • SPZ biggest competitor in the ANPR enforcement market, Parking Eye acquired by Macquarie Bank. • Transaction completed in July for a price of £235m. • As per press release, the price reflects a multiple of
Slide 26: Business update: Technology
Business update: Technology For personal use only Technology Sales Pipeline (m) | Smart City and IoT technology continues to be adopted 38.1 32.9 • Over 13,000 new sensors deployed in FY18. • Focused sales effort in winning customer contracts across all verticals, growth in partnerships and the 23.7
Slide 27: Growing customer base
Growing customer base For personal use only | Continued growth within all operating territories, and expansion into new markets. FY18 Results Presentation | smartparking.com | PAGE 27
Slide 28: FY18 New technology development
For personal use only FY18 New technology development
Slide 29: Technology overview
Technology overview | Delivering real-world IoT and smart city solutions. For personal use only SPZ Smart City Platform – SmartCloud – delivered, operational and generating revenue. SPZ new guidance and payment app delivered and set to ‘Go-Live’ and generate revenue in Q2 FY19. Next generation senso
Slide 30: IoT Partnerships
For personal use only IoT Partnerships | Smart Parking continues to partner with industry heavyweights such as Google and Telstra. SPZ CTO John Heard co-hosted four IoT conference speaker sessions. This has achieved high visibility within Google, and has led to further sales opportunities. Telstra r
Slide 31: FY19 Strategy and Outlook
For personal use only FY19 Strategy and Outlook
Slide 32: FY19 Strategy and Goals
FY19 Strategy and Goals – UK For personal use only • Business strengthened with improved people, process and systems • Increased resources in sales and marketing to drive growth • Strong sales focus on winning 15 new ANPR locations each month • Keen operational focus on delivery of new sales from in
Slide 33: Contact
For personal use only Contact Paul Gillespie Chief Executive Officer paul.gillespie@smartparking.com Richard Ludbrook Chief Financial Officer richard.ludbrook@smartparking.com smartparking.com
Slide 34: Supplementary Information
For personal use only Supplementary Information
Slide 35: Statutory results reconciliation
For personal use only Statutory results reconciliation Revenue EBITDA (000’s) FY18 FY18 FY17 FY18 FY17 FY18 vs FY17 vs FY17 Underlying Revenue/Adjusted EBITDA before non-recurring 24,501 31,019 26.6% 865 4,070 370.5% items Non-recurring and prior period expenses 0 0 0 (748) Foreign exchange gains 0
Slide 36: Management services: How it works
Management services: How it works | Parking management improving customer satisfaction For personal use only and revenue generation. • ANPR | Automatic Number Plate Recognition • Pay & Display | ANPR Linked Automated Payment System • Site Surveys | Real-time information, analysis and trend data • Pa
Slide 37: ANPR: How it works
ANPR: How it works For personal use only | 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
Slide 38: Technology: How it works
SmartCloud Technology: How it works API Service Interface Packs | Smart Parking’s technology provides For personal use only effective parking management solutions around the world. SmartZones On-Street Parking Off-Street Parking SmartApp SmartSpot Overhead Guidance ANPR Camera Variable Message Signs
Slide 39: Smart Parking app
For personal use only Smart Parking app | The Smart Parking app and its customised Miami and Cardiff apps delivered Features and benefits: • Available for both Android and iOS. • Provides detailed information around hours, tariffs and bay types. • Shows real-time availability of car park bays. • Har
Slide 40: Glossary and legal disclaimer
For personal use only 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 not expected to occur in the future. EBITDA – represents Earnings before interest, taxat