Veris Limited · ASX:VRS
Veris — Shareholder Meeting (November 2018)
32 slides from Veris's shareholder meeting presentation, Nov 21, 2018
Slide 1: Annual General Meeting - 2018
Annual General Meeting - 2018 Adam Lamond Managing Director Slide 1
Slide 2: Veris is a national professional services business
Veris is a national professional services business offering surveying, professional and advisory and geospatial services Slide 2
Slide 3: FY2018 Financial Dashboard
FY2018 Financial Dashboard Revenue EBITDA1 NPATBA2 $106.8m $11.2 $11.2m $5.3m $5.3m 45% 45% 96% 96% 92%92% Cash Dividend Per Share Net Debt $106.8m $11.2 $5.3m $5.6m 0.5 cents $8.0m 45% 96% 92% 1. EBITDA is a non-IFRS measure 2. Underlying NPATBA Slide 3 Note: % increase from prior period represents
Slide 4: FY18 Results Overview
FY18 Results Overview $m FY18 FY17 Revenue 106.8 73.5 EBITDA 11.2 96% 5.7 Depreciation (3.6) (3.7) Acquisition related costs (1.6) (1.2) Restructuring costs1 (1.8) (0.9) Share-based payments (1.0) (0.3) EBITA 3.2 900% (0.4) Amortisation (4.1) (4.2) EBIT (0.9) 80% (4.6) Net interest expense (1.0) (0.
Slide 5: FY18 Balance Sheet
FY18 Balance Sheet $m FY18 FY17 Cash 5.6 14.6 Elton Purchase Consideration $000 Receivables 30.9 16.0 Net Assets acquired 1,853 Work in progress 10.5 4.6 Brand 293 Other current assets 1.7 1.1 Customer relationships 3,496 Plant and equipment 15.2 11.0 Goodwill 12,251 Intangibles 58.6 40.5 Total Purc
Slide 6: Amortisation of Intangibles
Amortisation of Intangibles Gross Amortisation $m Amortisation After Tax $m 4.5 3.5 4.0 4.2 4.1 3.0 3.5 3.8 2.9 2.9 2.5 2.7 2.7 2.7 3.0 3.2 3.0 2.0 2.2 2.5 2.7 1.9 2.0 1.5 2.1 1.5 1.0 1.0 0.5 0.5 - - FY15 FY16 FY17 FY18 FY19F FY20F FY21F FY15 FY16 FY17 FY18 FY19F FY20F FY21F Based on acquisitions to
Slide 7: Cash flow
Cash flow Borrowings $000 Opening 1 July 2017 3,375 Drawdown Elton 11,000 $m Repayments (750) Closing 30 June 2018 13,625 30 25 20 11.2 10.2 11.0 16.0 15 1.8 1.1 3.8 10 1.2 14.5 4.6 5 5.6 0 Opening EBITDA Working Capex Interest Equip Debt Acquisitions Dividend Debt/HP Closing Cash Capital (net HP) n
Slide 8: FY2018 Highlights
FY2018 Highlights – Transition to single business complete Strategic – Completed Elton Consulting Group acquisition – Achieved stage one milestone of $100 million revenue with national footprint – Finalised systems integration of Surveying business by 30 June 2018 Operational – Strong growth potenti
Slide 9: Revenue Bridge FY17 to FY18
Revenue Bridge FY17 to FY18 $m 100 5.1 Revenue from discontinued 5.5 contracting business has been 90 34.4 5.1 replaced by consulting revenue. 80 17.5 Organic Surveying revenue growth of 27% on FY17 revenue was driven 70 from increased Infrastructure projects works in Eastern Australia. 60 107.9 106
Slide 10: Veris Revenue
Veris Revenue Consistent increase in revenue achieved through acquisition, organic growth and cross selling $120.0 Professional & Advisory Surveying & Geospatial $100.0 $80.0 $60.0 $40.0 $20.0 $- $m $m $m $m $m $m $m $m 1 2012 2013 2014 2015 2016 2017 2018 2019 Slide 10 1 Increase in revenue is a re
Slide 11: National Revenue by Region FY19 forecast
National Revenue by Region FY19 forecast Survey & Geospatial $100m Professional and Advisory $25m Total $125m $20m1 $4m1 $18m1 $14m1 $1m1 $39m1 $27m1 Slide 11 1 Estimated annualised figures for FY19, pro-forma for acquisition of Elton $2m1
Slide 12: Revenue Analysis – strong exposure to east coast infrastructure
Revenue Analysis – strong exposure to east coast infrastructure Survey Revenue by Location – FY18 Survey Revenue by Industry – FY18 Resources WA 10% 17% NSW/ACT 37% Property 40% QLD/NT 19% Infrastructure Vic/SA/Tas 50% 27% – Approximately 83% of revenue from the east coast, including approximately 3
Slide 13: National Professional Services Business
National Professional Services Business Creating a national professional services business, with three pillars of growth Professional and Advisory Surveying Geospatial Professional and Advisory Services are Surveying is a profession that involves examining and Geospatial Services relate to products,
Slide 14: Addressing the project cycle
Addressing the project cycle Maximising exposure to the project development lifecycle Realising value from initial concept, through construction and during ongoing maintenance Slide 14
Slide 15: Q1 Performance
Q1 Performance Revenue EBITDA 35,000 2,500 30,000 2,000 25,000 1,500 20,000 1,000 15,000 500 10,000 0 5,000 -500 0 -1,000 $000s $000s Surveying Professional and Advisory Aqura Total Surveying Professional and Advisory AQURA Corporate Total Slide 15
Slide 16: Margin improvement - FY19
Margin improvement - FY19 Focus on Surveying Earnings Improvement A Operational Alignment C Subcontractor Management – Matching skills base to revenue – Focus on improving margin for subcontracted work – Improved professional staff utilisation through national resource management – Improved utilisat
Slide 17: Margin improvement - FY19 Continued
Margin improvement - FY19 Continued Enhancing our Ability to grow E Systems and Process G Cash Management – System enhancement projects – Focus on Debtors and WIP conversion to cash – Concerted process improvement on identified areas – Streamlining invoicing – Automation of key processes F Governanc
Slide 18: Veris Australia – Surveying NSW
Veris Australia – Surveying NSW Recent Awards Outlook ‒ WestConnex M4/M5 Link – Tunnels – Early works ‒ The surge in multi billion $ “Road, Rail, Runway” infrastructure continues in NSW – Project runs to 2023. Project budgeted at $10bn ‒ Veris is well positioned to secure further significant project
Slide 19: Veris Australia – Surveying WA
Veris Australia – Surveying WA Recent Awards Outlook ‒ Wodgina Airport Pilbara – Crushing Services Int. ‒ Resource Sector continues to improve, with new mine starts and maintenance works since the beginning of 2018. ‒ Gascoyne Rare Earth – Hastings Metals ‒ Property Sector showing signs of improveme
Slide 20: Veris Australia – Surveying QLD/NT
Veris Australia – Surveying QLD/NT Recent Awards Outlook ‒ Cross River Rail - Subsurface utility locating ‒ Government budget shows strong emphasis and funding on: ‒ Eton Range Realignment ‒ Infrastructure – rail/road ‒ APLNG – Gas Project ‒ Energy and water ‒ Bruce Highway upgrade ‒ Education ‒ Gol
Slide 21: Veris Australia – Surveying VIC/TAS/SA
Veris Australia – Surveying VIC/TAS/SA Recent Awards Outlook ‒ MCG – Reestablishment feature and level survey ‒ Victorian economy remains strong. Continued investment in: ‒ 472-478 Bourke Street – Terrestrial laser scanning works ‒ Education – New and upgraded schools ‒ MAC - Infrastructure scanning
Slide 22: Elton Consulting
Elton Consulting Recent Awards Outlook ‒ Communications and engagement projects supporting the ‒ Strong, particularly in eastern Australia development of school infrastructure at two schools ‒ End October, proposals/tenders valued at $6.8 million. Win rate ‒ Housing, residential and rural lands stra
Slide 23: Aqura Technologies
Aqura Technologies Recent Awards Outlook ‒ Excellent contract wins YTD. Recent award of $5.6m new ‒ Continued focus to extend geographical position within Australia contracts across its key service lines: with services provided in all regions. ‒ Industrial Wireless ‒ Growth in revenue 40% year-on-ye
Slide 24: Shared Client Base
Shared Client Base Revenue by Business Cross pollination of business opportunities showing significant early promise: ‒ Elton introduction resulted in Veris being engaged by the Roads and Maritime Services to supply services to support the recently completed M4 Widening road infrastructure, the firs
Slide 25: Transport 'mega' projects fuel the infrastructure 'wave' across Australia
Transport ‘mega’ projects fuel the infrastructure ‘wave’ across Australia Mega projects = over $2 billion Slide 25 Source: NSW Government – Major Projects 2023 – Roads and Maritime Services BIS Oxford Economics 2018. Based on projects with over $2 billion in construction. Solid shading is roads. Dot
Slide 26: 2018-19 Australian infrastructure funding levels, ranked by share of budget expenditure
2018-19 Australian infrastructure funding levels, ranked by share of budget expenditure * The Commonwealth Government primarily funds state infrastructure projects. As such it is not formally included in the rankings. We include it in the report to provide a comprehensive view of funding commitments
Slide 27: Infrastructure spend across Australia
Infrastructure spend across Australia National infrastructure funding, State infrastructure funding per capita share of total, by jurisdiction (FY18-19 to FY21-22) FY18-19 to FY21-22 Source: Infrastructure Partnerships Australia analysis Source: Infrastructure *Based on 2017-18 Mid-Year budget Revie
Slide 28: Top Tier clients across Australia – Increasing National Agreements
Top Tier clients across Australia – Increasing National Agreements Diversified, national client base; adding value through seamless national agreements and service offerings Slide 28
Slide 29: Summary and Outlook
Summary and Outlook FY2018 FY2019 – Completion of integration of national surveying business ‒ Focus on Margin ahead of growth in Surveying business – Revenue synergies and organic growth, benefited from strong ‒ Improved resource utilisation exposure to east coast infrastructure investment ‒ Operat
Slide 30: Corporate Directory
Corporate Directory Capital Structure Share Price Share price (ASX: VRS) $0.115 1 0.35 Ordinary shares 363m 0.3 Market capitalisation $41.7m Cash (30-June-18) $5.6m 0.25 Debt (30-Jun-18) $13.6m 0.2 Enterprise value $94m 0.15 Dividend per share (FY18) $0.005 Dividend yield 2.0% 0.1 0.05 Board and Man
Slide 31: Disclaimer
Disclaimer This Document should not be considered as an offer or invitation to subscribe for or purchase any securities in Veris Limited (“Veris” or the “Company”) or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in Veris s
Slide 32: Thank you
Thank you Adam Lamond Managing Director – Perth Level 12, 3 Hasler Road T 08 9317 0600 Locked Bag 9 F 08 9317 0611 Osborne Park WA 6017 mail@veris.com.au Australia veris.com.au Slide 42