Slide 1: Strategic acquisition of Elton Consulting, 1H FY2018 Results
For personal use only Strategic acquisition of Elton Consulting 1H FY2018 Results March 2018 Slide 1
Slide 2: Highlights
Highlights For personal use only - Veris to acquire Elton Consulting creating a national Professional and Advisory Services pillar - Purchase price up to $16.0m and $1.0m of employee retention shares Elton Consulting - Expected to be EPS accretive on an annual basis Making a difference to cities - F
Slide 3: Acquisition of Elton Consulting
For personal use only Acquisition of Elton Consulting Slide 3
Slide 4: Professional services growth strategy
Professional services growth strategy For personal use only Creating a national professional services business, with three pillars of growth Professional and Advisory Services – Veris Surveying Geospatial strategy, planning and engagement Australian Market $3.0bn $1.0bn $2.0bn Veris annual Revenue $
Slide 5: Elton Consulting
Elton Consulting For personal use only - Elton Consulting is the ideal acquisition for the - Over 100 staff in New South - The acquisition significantly enhances Veris’ Veris national Professional and Advisory Wales, Victoria, Australian service offering, enabling ‘end-to-end’ Services strategy: Cap
Slide 6: Elton Consulting – Professional and Advisory
Elton Consulting – Professional and Advisory For personal use only Slide 6
Slide 7: Group Strategy
Group Strategy For personal use only - Since 2011, Veris has undertaken strategic growth in its national surveying and professional services business. - Veris has become Australia’s leading surveying company with a workforce of approximately 540 employees, annual revenue approaching $100m, offices a
Slide 8: Strategic Rationale: Establishing the Second Growth Pillar
Strategic Rationale: Establishing the Second Growth Pillar For personal use only Strategic Rationale Description - Achieves strategic goal of establishing new growth pillar in Professional and Advisory Services New Market Entry - Highly complementary to surveying. - Immediate, blue-chip and scalable
Slide 9: Acquisition Terms – Elton Consulting
Acquisition Terms – Elton Consulting For personal use only Structure - Acquisition of 100% of the shares in Elton Consulting Group Pty Ltd for up to $16.0m, and issue of retention shares to key employees with a value of $1.0m. - Cash: $9.0m payable at completion. The cash consideration will be funde
Slide 10: Pro-Forma Capital Structure
Pro-Forma Capital Structure For personal use only Up-front cash consideration to be funded by a drawdown of the Commonwealth Bank facility Veris ($m) Adjustments Pro-Forma (Dec-17) Shares on issue m 329.2 17.6 346.8 Market capitalisation $m 55.9 3.0 58.9 Cash2 $m 8.1 0.0 8.1 Hire Purchase $m 10.7 0.
Slide 11: Expanded Revenue Base and Scale on the East Coast
Expanded Revenue Base and Scale on the East Coast For personal use only Pro-Forma Annual Revenue by Segment1 Pro-Forma Annual Revenue by Location2 Survey $90-100m 13% Professional and Advisory NSW/ACT $20-25m QLD/NT 21% 47% VIC/SA/TAS WA 19% >$100m in professional services revenue Approximately 47%
Slide 12: Market Outlook
Market Outlook For personal use only Given its leading position in NSW, Elton provides desirable exposure to the strong forecast activity in infrastructure spending across transport, health, education and urban renewal . Potential to grow the Melbourne business given robust levels of infrastructure
Slide 13: Market Outlook
Market Outlook For personal use only Strong forecast activity and development expenditure on infrastructure projects on the eastern seaboard, with a range of transport, healthcare, education and social housing opportunities Slide 13 Source: Macromonitor, Australian Construction Outlook Overview, Nov
Slide 14: Top Tier Clients serviced across Australia
Top Tier Clients serviced across Australia For personal use only Diversified, national client base; adding value for our clients through seamless national service offerings Slide 14
Slide 15: 1H FY18 Results
For personal use only 1H FY18 Results Slide 15
Slide 16: 1H FY18 Results
1H FY18 Results For personal use only First reporting period excluding the construction business; survey revenue increased 40% and EBITDA increased 56% $m 1H FY18 1H FY17 Revenue 46.3 31.6 EBITDA1 4.2 1.7 Depreciation (1.4) (1.4) Amortisation (2.1) (2.0) Acquisition related cost/income (0.6) (0.8) R
Slide 17: Survey
Survey For personal use only Strong survey result, underpinned by organic growth - Revenue increased 40% to $41.3m, led by NSW/ACT, where revenue almost doubled to $15.3m. NSW/ACT represented 37% of revenue in 1H FY18. Survey Division $m 1H FY18 1H FY17 - Strong organic growth from leading position
Slide 18: Cash Flow and Balance Sheet
Cash Flow and Balance Sheet For personal use only Balance sheet capacity to underpin future growth, despite a period of investment in acquisitions and capital equipment Cash Flow Balance Sheet $m 1H FY18 1H FY17 $m 31 Dec 17 30 Jun 17 Cash flow from operations (0.2) 1.5 Cash 8.1 14.6 Net interest ex
Slide 19: Operations
Operations For personal use only Operational focus on integration, revenue growth and enterprise management - Achieved significant integration objectives during the period: Number of Survey Employees - Consolidation of Sydney offices at Olympic Park 600 - Agreed and implemented rebranding, on track
Slide 20: Top Tier Surveying Projects across Australia
Top Tier Surveying Projects across Australia For personal use only Veris is engaged on significant property, commercial, infrastructure and resources projects across Australia, with a combined construction value in excess of $26bn Sydney Light Rail Western Sydney Airport North Connex Australia 108 M
Slide 21: Completed Acquisitions
Completed Acquisitions For personal use only Other Total Purchase Price $17.0m $9.5m $4.4m $4.0m $5.85m $5.0m $4.8m $3.0m $52.95m Cash $13.0m $7.0m $2.2m $3.0m $3.85m $3.1m $3.8m $3.0m $38.45m Shares $1.0m $2.5m $0.4m $0.4m $1.0m $0.5m - - $6.0m Performance $3.0m - $1.8m $0.6m $1.0m $1.4m $1.0m - $8
Slide 22: National Surveying Operations by June 2018
National Surveying Operations by 30 June 2018 For personal use only 2017 - Multiple companies and businesses 30 June 2018 - Multiple locations - One company - Multiple operating systems - One brand - Duplication of support services - One system Slide 22
Slide 23: Why is integration important?
Why is integration important? For personal use only Integration is pivotal in achieving our Vision to be an efficient National Professional Services Group. - Integrate and enhance our servicing capabilities - Develop new clients regionally and nationally - Continue to provide and expand our services
Slide 24: Summary and Outlook
Summary and Outlook For personal use only 1H FY18 Outlook - Delivered strong growth in surveying revenue and EBITDA - Preferred exposure to the east coast development cycle and strong growth in infrastructure expenditure - Achieved strategic goal of establishing a leading surveying business across A
Slide 25: Disclaimer
Disclaimer For personal use only 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
Slide 26: Thank you
For personal use only 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 26