Slide 1: FY14 Results Presentation
For personal use only FY14 RESULTS PRESENTATION AUGUST 2014 1
Slide 2: Notice and Disclaimer
NOTICE AND DISCLAIMER For personal use only This document is a presentation of general background information about the activities of Ashley Services Group Limited ABN 92 094 747 510 (“ASH”) current at the date of the presentation, (29 August 2014). The information contained in this presentation is
Slide 3: Table of Contents
For personal use only TABLE OF CONTENTS Page 1. FY14 RESULTS 4 4. FY15 OUTLOOK 9 2. ASHLEY SERVICES GROUP SNAPSHOT 11 3. ASHLEY SERVICES GROUP GROWTH OPPORTUNITIES 18 5. ADDITIONAL INFORMATION 20 6. APPENDIX 24 3
Slide 4: FY14 Results
For personal use only FY14 RESULTS PRESENTATION FY14 RESULTS 4
Slide 5: Pro forma FY14 results compared to the prospectus and FY13 results
PRO FORMA FY14 RESULTS COMPARED TO THE PROSPECTUS For personal use only AND FY13 RESULTS Pro forma Actual Pro forma Pro forma FY14(1) Prospectus FY14 Variance to Prospectus FY13 (unaudited) (reviewed) Prospectus (reviewed) Variance to FY13 $m $m % $m % Revenue 287.1 285.1 +0.7 176.0 +63.1 EBITA(2) 2
Slide 6: FY14 Pro Forma Income Statement
FY14 PRO FORMA INCOME STATEMENT For personal use only Pro forma Pro forma Pro forma Revenue Actual FY14 Prospectus FY14 FY13 • Total revenue and revenue and revenue by (unaudited) (reviewed) Variance (reviewed) Variance $m $m % $m % individual business channels were in line with Prospectus forecasts
Slide 7: FY14 Pro Forma Cash Flows
FY14 PRO FORMA CASH FLOWS For personal use only Pro forma Prospectus Pro forma Key Points Forecast FY14 Actual FY14 • Cash flow exceeded Prospectus. Factors (unaudited) (reviewed) causing the increase include: $m $m – improved debtor collections; and – focus on cash flow management, including EBITDA
Slide 8: FY14 Pro Forma Statement of Financial Position
For personal use only FY14 PRO FORMA STATEMENT OF FINANCIAL POSITION Pro forma Prospectus Pro forma Actual Working capital and capital expenditure As at 31 Dec 13 As at 30 Jun 14 • Decline in trade receivables and payables (unaudited) (reviewed) $m $m between 31 December 2013 and 30 June 2014 is sea
Slide 9: FY15 Outlook
For personal use only FY14 RESULTS PRESENTATION FY15 OUTLOOK 9
Slide 10: FY15 Outlook Statement
FY15 OUTLOOK STATEMENT For personal use only ASHLEY SERVICES GROUP REAFFIRMS ITS PRO FORMA PROSPECTUS FY15 FORECAST • Below is an extract from the Prospectus of ASH’s Pro forma forecast earnings for the year ending 30 June 2015 (Forecast): $m Revenue 319.5 EBITDA 31.0 EBIT 29.0 EBITA 29.7 NPAT 19.8
Slide 11: Ashley Services Group Snapshot
For personal use only FY14 RESULTS PRESENTATION ASHLEY SERVICES GROUP SNAPSHOT 11
Slide 12: Business Overview
BUSINESS OVERVIEW For personal use only ASHLEY SERVICES GROUP DELIVERS VOCATIONAL EDUCATION AND TRAINING, LABOUR HIRE AND RECRUITMENT SERVICES THROUGH A MULTI-BRAND DELIVERY STRUCTURE Training Overview of Ashley Services Group • ASH was founded in 1968 and is one of the largest integrated VET and la
Slide 13: Business Operations
BUSINESS OPERATIONS For personal use only ASHLEY SERVICES GROUP HAS A NATIONAL FOOTPRINT WITH STRATEGICALLY LOCATED OFFICES AND TRAINING CENTRES IN EACH STATE AND TERRITORY TO SERVICE THE DEMANDS IN EACH REGION Offices1 33 Additional Training locations1 63 Staff1 355 Trainers1 149 Qualifications1 97
Slide 14: An Integrated Model
AN INTEGRATED MODEL For personal use only THE INTEGRATION OF ASHLEY SERVICES’ GROUP TRAINING AND LABOUR HIRE BUSINESSES GENERATES MATERIAL SYNERGIES AND VALUE THROUGH CROSS SELLING INITIATIVES AND PROVIDES VALUE-ADDING INTRA-COMPANY SERVICES Ashley Services Group integrated business model Training •
Slide 15: VET Qualifications
VET QUALIFICATIONS For personal use only ASHLEY SERVICES’ GROUP LABOUR HIRE OFFERS A BROAD RANGE OF QUALIFICATIONS AND IS FOCUSSED ON THE DESIGN AND DEVELOPMENT OF HIGH QUALITY TRAINING SOLUTIONS Qualification scope and offering Training courses scope summary • Comprehensive and diverse VET offering
Slide 16: Ashley Services Group Labour Hire Clients
ASHLEY SERVICES’ GROUP LABOUR HIRE CLIENTS For personal use only LABOUR HIRE HAS ESTABLISTED AND LONG TENURE RELATIONSHIPS WITH HIGH QUALITY CLIENTS Clients Enrolment Volume by Level FY14 • Diversified client base with more than 265 active clients; • Strong presence in the warehouse, logistics, fast
Slide 17: Investment Highlights
INVESTMENT HIGHLIGHTS For personal use only ASHLEY SERVICES’ GROUP OFFERS A BROAD RANGE OF QUALIFICATIONS AND IS FOCUSSED ON THE DESIGN AND DEVELOPMENT OF HIGH QUALITY TRAINING SOLUTIONS Integrated service offering drives value Attractive markets with significant growth opportunities Market leading
Slide 18: Ashley Services Group Growth Opportunities
For personal use only FY14 RESULTS PRESENTATION ASHLEY SERVICES GROUP GROWTH OPPORTUNITIES 18
Slide 19: Ashley Services Group Growth Drivers
ASHLEY SERVICES GROUP GROWTH DRIVERS For personal use only ASHLEY SERVICES GROUP INTENDS TO TARGET A NUMBER OF ORGANIC AND ACQUISITION BASED GROWTH OPPORTUNITIES Training Labour Hire Organic • Leverage Labour Hire and other corporate relationships • Leverage existing Labour Hire clients to increase
Slide 20: Additional Information
For personal use only FY14 RESULTS PRESENTATION ADDITIONAL INFORMATION 20
Slide 21: VET Industry Drivers
VET INDUSTRY DRIVERS For personal use only STRUCTURAL CHANGES IN THE VET SECTOR HAVE SIGNFICCANTLY INCREASED ENROLMENTS AND GOVERMNET FUNDING AND SECTOR REVENUE Industry sector drivers Significant growth in enrolments and funding since 2008 VET enrolments in Australia (‘000s) Demand Driven Model Nat
Slide 22: Demand Driven Model
DEMAND DRIVEN MODEL For personal use only VET ENROLMENTS AND PRIVATE RTO FUNDING INCREASED SUBSTANTIALLY IN STATES POST IMPLEMENTATION OF THE DRIVEN MODEL (DDM). IMPLEMENTATION IS NOW UNDERWAY IN WA, QLD AND NSW Government payments to private VET providers by state Demand Driven Model Implementation
Slide 23: VET Sector Overview
VET SECTOR OVERVIEW For personal use only VET Higher Education Key Sources of • Employees wanting to up-skill • Students Demand • Employees maintaining compulsory certification • Post-graduate students standards • Professionals • Unemployed job seekers • New workforce entrants Key Features • More ha
Slide 24: Appendix
For personal use only FY14 RESULTS PRESENTATION APPENDIX 24
Slide 25: Appendix 1: Reconciliations from Statutory to Pro Forma Income Statement
APPENDIX 1: RECONCILIATIONS FROM STATUTORY TO For personal use only PRO FORMA INCOME STATEMENT Reconciliation from statutory revenue to Pro forma revenue Note 1 On 1 July 2014, ASH acquired the following $m Note FY14 related companies referred to as (the "ASH Consolidation"): Statutory revenue 196.7
Slide 26: Appendix 1: Reconciliations from Statutory to Pro Forma Income Statement (EBITDA, NPAT)
APPENDIX 1: RECONCILIATIONS FROM STATUTORY TO For personal use only PRO FORMA INCOME STATEMENT Reconciliation from statutory EBITDA to Pro forma EBITDA Note 1 The Pro forma EBITDA includes the effects of the $m Note FY14 ASH Consolidation. Statutory EBITDA 4.3 Note 2 The Pro forma EBITDA includes th