Smart Parking Limited · ASX:SPZ
Smart Parking — FY2012 Earnings Presentation
53 slides from Smart Parking's earnings presentation, August 2012
Slide 1: Results Presentation August 2012
For personal use only Results Presentation August 2012
Slide 2: Agenda
For personal use only Agenda • Introduction – Chris Morris Chairman • Financial Report Richard Ludbrook CFO • CPT Update Paul Collins CEO CPT • TCP Update Chris Morris acting CEO TCP
Slide 3: Changes to Company Structure
For personal use only Changes to Company Structure • Paul Collins CEO CPT reporting to the board • Chris Morris acting CEO TCP reporting to the board • Richard Ludbrook Group CFO reporting to board plus Paul Collins re CPT and Chris Morris re TCP • Charlie Leaper COO of TCP reporting to Chris Morris
Slide 4: Reasons for change
For personal use only Reasons for change • CPT is a technology company and TCP is a management company • When Paul was managing TCP the business in New Zealand suffered and there was reduced sales • Since Paul Returned to New Zealand at the end of May sales prospects have increased substantially • C
Slide 5: Structure going forward
For personal use only Structure going forward • Chris Morris will remain CEO of TCP until at least end of Calendar year • Looking to appoint CEO of TCP new year either internally or outside candidate • New TCP CEO will continue to report to the board • Long term structure reviewed beginning of FY 20
Slide 6: Richard Ludbrook: CFO
For personal use only Results Presentation August 2012 Richard Ludbrook: CFO
Slide 7: Financial Summary
For personal use only Financial Summary • Acquisition of Town and City Parking completed in Jan2012 (results include 6 months) • $15m capital raising completed to fund TCP acquisition and roll out of technology • Starting to see benefits of technology roll out in the UK • Revenue growth of 35% below
Slide 8: Group Financial Performance
For personal use only Group Financial Performance • 2012 includes results for TCP (A$000’s) 2012 2011 from date of acquisition (Jan Revenue 12,429 1,349 2012) Other Investment Income - 1,044 • 2011 includes results for CPT Total Revenue 12,429 2,393 (NZ) (formerly Meter Eye) from EBITDA (15,881) (41
Slide 9: Revenue – Technology
For personal use only Revenue – Technology ($000’s) 2012 2011 2010 2009 Revenue 2,806 2,083 1,300 889 % Growth on prior 35% 60% 46% N/A year Note: Revenues Based on a 12 month period.
Slide 10: Revenue – Technology (cont.)
For personal use only Revenue – Technology (cont.) • Based on 12 month ($000’s) 2012 2011 % % of period Change Total • Revenue from UK was New Zealand 742 884 (16%) 27% constrained by lack of Australia 848 596 42% 30% capital in TCP prior to United Kingdom 787 411 91% 28% acquisition. South Africa 3
Slide 11: Technology - Forward orders
For personal use only Technology - Forward orders 2013 ($000’s) 2012 Orders New Zealand 566 742 Australia 76 848 South Africa 309 321 Middle East 50 97 Other - 11 Revenue Excl TCP 1,001 2,019 United Kingdom - 787 Total Revenue 1,001 2,806
Slide 12: Revenue - Car Park Management
For personal use only Revenue - Car Park Management • Based on 6 month ($000’s) 2012 2011 % % of period Change Total • Reduction on Management Fees 2,704 2,953 (8%) 24% management fees P&D Income 4,111 4,051 1% 40% relates to sites Civil Penalties 1,744 1,689 3% 19% converted to ANPR. Marshalling 95
Slide 13: Gross Civil Penalty Income
For personal use only Gross Civil Penalty Income 2009 2010 2011 2012 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec • Initiatives underway to increase Civil Penalty Income are in the TCP presentation.
Slide 14: Group Financial Position
For personal use only Group Financial Position • Cash balances $6.6m (excl ($000’s) 2012 2011 client cash) Current Assets 20,613 6,043 • Receivables of $8.2m Non Current Assets 11,429 17,282 includes $2.7m due from Total Assets 32,042 23,325 TCP vendor. Current Liabilities 12,154 1,176 • Inventory $
Slide 15: TCP Acquisition
For personal use only TCP Acquisition • Maximum consideration ($000’s) (AUD) payable was £8.9m. Consideration Paid 2,887 • Expect no contingent Contingent - consideration as earn out Consideration targets unlikely to be met. Net Asset (3,304) Adjustment • Net asset adjustment is a Net Consideration
Slide 16: Capital Structure
For personal use only Capital Structure Shares on Issue 208,108,602 Options on Issue 2,000,000 (@$0.20) Current Market Capitalisation $53.1M ($0.255 @ 28 Aug) • 45% (93,106,189) of shares on issue are held by the Board and Management • 27% (55,865,055) of shares on issue are escrowed until Feb 2013
Slide 17: Group Working Capital
For personal use only Group Working Capital ($000’s) 2012 2011 Working Capital 8,373 4,867 Working Capital Ratio 1.7 5.1
Slide 18: Use of Funds
For personal use only Use of Funds • The TCP acquisition cost ($000’s) (AUD) $2.9m although there is a Opening cash 4,236 net asset adjustment of up Capital raising 14,582 to $3.3m to be recovered. TCP Acquisition (2,887) • Fixed asset additions Fixed asset additions (1,930) relates mainly to the ro
Slide 19: Paul Collins: CEO
For personal use only Results Presentation August 2012 Paul Collins: CEO
Slide 20: Key Points
For personal use only Key Points • Significant increase in staffing including highly skilled R&D personnel. • Several new market driven products developed and released including P&D machine integration • Long term investment in Middle East bearing fruit with significant trial in Abu Dhabi underway.
Slide 21: Region: New Zealand
For personal use only Region: New Zealand • Winner of Hi Tech Service Category at NZ Hi Tech Awards • Groundswell of interest from councils following long term success of Taupo CBD installation • New Plymouth City Council first to order with 1500 on-street bays and installation already underway • Ca
Slide 22: Region: Australia
For personal use only Region: Australia • Sites installed: • Extension to on-street sensors at Cottesloe & Subiaco Councils • Extension to on-street sensors at Lane Cove Council plus car counters • Guidance at Cherrybrook Shopping Centre, Forestway Shopping Centre and Green Acres Golf Club • 6x mobi
Slide 23: Region: South Africa
For personal use only Region: South Africa • Relationship with Street Parking Solutions (SPS) continues to strengthen • First 1000 on-street sensors installed and operating in Cape Town • Further 1500 sensors ordered and shipped • Currently tendering with SPS for on-street enforcement for Johannesbu
Slide 24: Region: Middle East
For personal use only Region: Middle East • First 1000 sensors shipped to Dammam, KSA • Abu Dhabi 203 bay pilot now live and integrated to both Parkeon and Baumann meters. Potential size of full project is very significant pending successful completion of pilot • Order received for valet solution in
Slide 25: Region: United States
For personal use only Region: United States • Citipark order for Car Counters shipped • Citipark also providing a carpark in San Jose for proof of concept for sensors • Ace Parking trialling sensors in San Francisco • Discussions currently underway with several other significant organisations includ
Slide 26: Region: Rest of World
For personal use only Region: Rest of World • Nominee for Innovation Award at Intertraffic 2012 tradeshow in Amsterdam • Taxameter have installed their first demonstration site in Netherlands • Korean distributor signed and awaiting order for demonstration site. • Parkeon have installed pilot sensor
Slide 27: R&D Projects Completed
For personal use only R&D Projects Completed • Integration into multiple third party meters • Pay by Phone • Observation Site Software for Handhelds • Pidion Handheld Photo Capture • Parking App for Smartphone • Remote Master Controller (no PC required on site) • Data cleansing & plate matching soft
Slide 28: R&D Projects Completed (cont.) - Pay by Plate
For personal use only R&D Projects Completed (cont.) Pay by Plate (Smart Barrier)
Slide 29: R&D Projects Completed (cont.) - Pay on Route
For personal use only R&D Projects Completed (cont.) Pay on Route (Pay and Walk)
Slide 30: R&D Projects Completed (cont.) - Clearway Parking
For personal use only R&D Projects Completed (cont.) Clearway Parking (SmartClear)
Slide 31: The Competitors
For personal use only The Competitors • Nedap • Recently released sensor • Mix of infrared and magnetic detection • Frog • Company still in start-up phase • Solar powered sensor and magnetic detection limits accuracy • Park Assist • Focus on guidance • No in ground sensor
Slide 32: The Competitors (cont.)
For personal use only The Competitors (cont.) • Streetline/StreetSmart • Similar products, one sensor is in-ground, one is underground • Use magnetic field detection so prone to interference • Designed to show where overstays are occurring. Sensor talks to the handheld so have to be within close pro
Slide 33: The Future
For personal use only The Future Version II sensor, anticipated release Q1 2013: • Integrated RFID tag for permit parking, i.e. disabled parking, residents parking, universities etc. • 16 million encrypted ID’s available for e-wallet interface • Provides 2-way communication between sensor and networ
Slide 34: Key Focus Next Months
For personal use only Key Focus Next 12 Months • While focussed on closing existing deals we will also look for opportunities to make our products more attractive and financially viable to ensure we continue to thrive. • We will add value to what we offer and expand the markets in which we operate.
Slide 35: More Information
For personal use only More Information www.carparkingtechnologies.com Contact details: Car Parking Technologies Limited Paul Collins Managing Director Tel: + 64 7 823 2090 paul@carparkingtechnologies.com
Slide 36: TCP Update
TCP Update For personal use only Update 2012 Results
Slide 37: Deal
Deal For personal use only • Signed HOA 20/9/2011 • Due Diligence • Closed deal on 9th January 2012 • Paid £1.90m • £1.30m to fix balance sheet • £0.60m to owner • Balance of payment dependent on balance sheet adjustments and Profit for 2012 calendar year
Slide 38: What we bought: the bad things
What we bought : the bad things For personal use only • Not fit for purpose accounting system • Absolutely no visibility of the financial figures to any of the management team • No understanding of the profitability of each individual car park mainly due to the fact that overhead expenses were not a
Slide 39: What we bought: the bad things
What we bought : the bad things For personal use only • Total lack of any accountability within the business • Lack of organisational structure • People who were on the payroll and never actually came to the office and nobody knew what they did • No controls over who spent what and no managed procur
Slide 40: What we bought: the good things
What we bought : the good things For personal use only • Some great customers including ASDA, CO-OP Sainsbury's • 1,100 managed car parks in the UK and Northern Ireland • Some excellent people who just need some direction and proper incentives • An opportunity to deploy technology from CPT • A busin
Slide 41: What we have done in the last months
For personal use only What we have done in the Last 6 months
Slide 42: HR
HR For personal use only • All positions in the company have been reviewed with appropriate redundancies made. • Standardised holiday entitlements, sick pay and pensions • Company cars in future will only be provided to staff that need them to perform their job and the type of car provided will be s
Slide 43: Staff
Staff • About 30 staff have been made redundant as a result of redefined For personal use only roles and outsourcing • Regional Business Managers appointed with full P&L accountability and results driven remuneration introduced. • The old Business Manager positions have been replaced with Sales Exec
Slide 44: Operations
Operations For personal use only • Facilities management • Time sheets have identified unprofitable jobs • Looking to use local contractors to reduce travelling time • Repairs and Maintenance • Will start program of replacing old parking machines to reduce maintenance costs • New equipment purchases
Slide 45: Outsourcing
Outsourcing For personal use only • Cash Collections • Over the last 2 months we have run trials with two major suppliers. • Decision made to go with Loomis and all sites converted by 31/10/12 • Budgeted savings of £200,000 • Better reporting and less risk • Print and Mail • Contract signed to outso
Slide 46: Finance
Finance • Paid off all bank debt including overdraft £1.43m For personal use only • Selling 3 properties expected return over £1m • One off expenses in total about £0.8m • Acquisition and implementation costs • Redundancies • Introduction of technology to remove manual tickets • Purchase of camera’s
Slide 47: Systems
Systems • New accounting system implemented which includes P&L reporting For personal use only for all car parks • All costs are now allocated to car parks • We will now be able to see which car parks are profitable • Introduced a common car parking numbering system for all internal systems • New Ba
Slide 48: Clients
Clients For personal use only • Focus on retaining clients by improving service and introducing new functionality with technology • Documenting commercial arrangements with clients • Where possible renegotiating uncommercial arrangements • Improving our reporting to clients using new back office and
Slide 49: Marketing and Sales
Marketing and Sales For personal use only • New Web site • Live by October • Will invest in Search Engine Optimisation • Will combine CPT technology and how it is used to mange car park • Will change company name and Logo later this year
Slide 50: For personal use only
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Slide 51: Westminster Trial
Westminster Trial • Installation completed For personal use only • Software development in testing • Exciting to work with people in the industry that can see that the future of on street parking is about using technology to enhance the customer experience and to increase enforcement efficiency • If
Slide 52: Strategy for next months
Strategy for next 6 months • Get all ANPR sites live For personal use only • Install sensors in TCP controlled sites • Improve customer service • Sell the 3 properties we own as we are not a property company • Successful trial with Westminster Council • Hire some top quality staff • Will focus on sa
Slide 53: Guidance
Guidance For personal use only • TCP was profitable in July • Income is increasing as new ANPR sites come on line and removal of manual tickets • Expenses will reduce with the introduction of new systems • Will focus on sales in 2013 when all current systems and sites are in order • Too early to giv