Slide 1: 1H19 Results Presentation
HY1S RESULTS PRESENTATION FEB 2019
Slide 2: Important notice and disclaimer
This presentation has been prepared by Experience Co Limited ACN 167 320 470 (”EXP”) Summary information This presentation contains summary information about EXP and its related bodies corporate and their activities, current as at 25 February 2019. The information in this presentation is a general b
Slide 3: Agenda
Agenda 0 1 Overview 0 2? Financials 0 3 Business Update 0 A Strategy & Outlook 0 5 Appendices Exner lelccu Cum
Slide 4: Core business is in good shape and remains solid
❑ Core business is in good shape and remains solid ❑ Exciting tourism opportunity in Australia and NZ markets ❑ Leadership changes positioning EXP for next phase of growth ❑ Renewed management focus on systems and processes to improve operational performance ❑ Customer experience with a focus on saf
Slide 5: Recent Management & Board renewal
❑ Recent Management & Board renewal, better ❑ Incoming CFO commenced 11 February 2019 aligning to the needs of an ASX listed entity ❑ Primary focus in short term – ‘quality and timeliness’ ❑ Leadership update ❑ Improving the finance function ❑ Bob East, Executive Chair ❑ Increasing disclosure and tr
Slide 6: Enhance every customer experience
❑ Enhance every customer experience ❑ Brand respect and recognition ❑ Organic growth through expansion in offerings and locations ❑ Acquire and integrate complimentary businesses ❑ Operational excellence and customer focussed innovation ❑ Balanced exposure to domestic and international tourism 6 Exp
Slide 7: 1H19 financial results
1. Underlying EBITDA is a financial measure which is not prescribed by Australian Accounting Standards (“AAS”) and represents the net profit under AAS adjusted for interest, taxation, depreciation and amortisation, and one-off items. The directors consider Underlying EBITDA to reflect the core earni
Slide 8: Australian Skydiving, New Zealand Skydiving, Adventure Experiences
Australian Skydiving New Zealand Skydiving Adventure Experiences WA NSW VIC SEQ FNQ 8 Experience Co Limited | 1H19 Results Presentation | 26 February 2019
Slide 9: Revenue up 42.3% to $84.3 million
Revenue 84.3m 59.2m 42.3% ❑ Revenue up 42.3% to $84.3 million EBITDA1 17.6m 11.2m 57.1% ❑ Net profit after tax up 59.1% to $7.4 million Net profit after tax 7.4m 4.6m 59.1% ❑ Underlying EBITDA up 31.1% to $17.3 million Underlying EBITDA2 17.3m 13.2m 31.1% ❑ Earnings per share up 30.0% to 1.3 cents U
Slide 10: Underlying EBITDA increased to $17.3m
❑ Underlying EBITDA increased to $17.3m reflecting the Skydiving 13.1 12.9 1.6% impact of stabilising Skydiving volumes and the impact of 1H18 acquisitions Adventure Experiences 9.3 5.0 86.0% ❑ Skydiving volumes, particularly in Australia stabilised in Corporate (5.1) (4.7) 8.5% the period Underlyin
Slide 11: Skydive volumes stabilised in both Australia and New Zealand
❑ Skydive volumes stabilised in both Australia and New Zealand Skydiving Revenue 39.9 37.6 6.0% ❑ Australian drop zones volumes up 1.4% on prior period, despite moderation in Queensland adventure tourist route Other Sales Revenue 2.1 1.1 96.7% drop zones from Fraser Island up into FNQ Underlying EBI
Slide 12: Growth in Adventure Experiences driven by full period contribution
❑ Growth in Adventure Experiences driven by full period contribution from 1H18 acquisitions, Great Barrier Reef Sales Revenue 42.0 20.5 104.9% Helicopters (GBRH), Big Cat and Tropical Journeys Other Income 0.9 0.4 325.0% ❑ Adversely impacted by a combination of adverse weather conditions and a softe
Slide 13: Operating cash conversion strong ~100%
❑ Operating cash conversion strong ~100% ❑ Seasonal trend for cash received in advance Net cash from operating activities 15.2 5.0 203.9% (deferred revenue) driving >100% Finance costs paid 0.7 0.9 (17.7)% ❑ 1H19 capex driven by scheduled engine overhaul projects, IT project spend and investment in
Slide 14: Well capitalised balance sheet, gearing low at 15.1%
❑ Well capitalised balance sheet, gearing low at 15.1% Aircraft WDV 64.9m 64.6m 0.5% ❑ Net Debt to Underlying EBITDA 0.7x Vessels WDV 35.3m 34.5m 2.3% ❑ Fixed wing aircraft and vessels revalued at 30 June 2018 Total Tangible Assets 152.9m 147.5m 3.7% ❑ Fixed assets management key area of focus for C
Slide 15: Market leader in both Australia and New Zealand
❑ Market leader in both Australia and New Zealand ❑ Volumes stabilising in both locations following the unfortunate fatalities in FY18 ❑ 1H19 volumes demonstrate resilience of our Skydive business and a relatively inelastic demand at an industry level ❑ While weather events have impacted our FNQ 201
Slide 16: Weather working against us
1 ❑ Weather working against us ❑ CY18 highest rainfall on record in Cairns 3 ❑ Non-operating days and lost bookings ❑ Cost base relatively fixed ❑ Cairns tourism market softer Source: Tourism Tropical North Queensland ❑ Cairns airport arrivals down on prior years ❑ Domestic airline seat capacity & y
Slide 17: Big Cat and Tropical Journeys acquired December 2017
❑ Big Cat and Tropical Journeys acquired December 2017 ❑ No significant changes in Experience Co capacity or competition. Notwithstanding, management continues to optimise fleet utilisation and scheduling based on month to month volumes ❑ Dreamtime Dive product launched in late 2018 ❑ With FNQ FY19
Slide 18: GBRH acquired 1 November 2017
❑ GBRH acquired 1 November 2017 ❑ Contract with Quicksilver expires 31 March 2019, which represents ~40% of GBRH revenue and earnings ❑ Management is repositioning the asset to reduce impact on short-term earnings: ❑ Restructuring operating cost base ❑ Targeting commercial contract work ❑ Exploring
Slide 19: Core business remains solid
❑ Core business remains solid ❑ Reaffirm FY19 Underlying EBITDA guidance of $30m to $33m ❑ Continued improvement in processes and systems 19 Experience Co Limited | 1H19 Results Presentation | 26 February 2019
Slide 20: Appendices
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Slide 21: One-off items in 1H19
❑ One-off items in 1H19 comprised one-off costs for redundancy and legal costs, offset by the reversal Net profit after tax 7.4 4.6 60.9% of one-off insurance proceeds. add back: ❑ 1H18 one-off items included business acquisition Depreciation & amortisation 6.8 4.2 costs (primarily due diligence adv
Slide 22: Skydiving Revenue by region
Skydiving Revenue 26.9 25.7 4.4% Skydiving Revenue 13.0 11.9 9.5% Other Sales Revenue 0.3 0.0 n/a Other Sales Revenue 2.1 1.1 96.7% Underlying EBITDA 8.7 9.0 (2.8)% Underlying EBITDA 4.4 3.9 11.6% Tandem jumps (‘000) 65.4 64.5 1.4% Tandem jumps (‘000) 27.3 26.6 2.6% Average revenue per skydive ($)1
Slide 23: 2019
Experience Co Limited | 1H19 Results Presentation | 26 February 2019 23
Slide 24: Media and investor contacts
Media Justin Kelly, Director Media & Capital Partners p: +61 408 215 858 e: Justin.kelly@mcpartners.com.au Investors Owen Kemp, Chief Financial Officer Experience Co Limited p: 1300 663 634 e: investor@experienceco.com Exneriemucuds
Slide 25: Further information
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