Kelsian Group Limited · ASX:KLS
Kelsian — Investor Presentation (February 2022)
25 slides from Kelsian's investor presentation, Feb 23, 2022
Slide 1: FY22 Half Year Results Investor Presentation
Kelsian Group Limited FY 22 Half Year Results Investor Presentation Clint Feuerherdt Andrew Muir Group Chief Executive Officer Chief Financial Officer 23 February 2022
Slide 2: Important notice - disclaimer
Important notice - disclaimer This document has been prepared by Kelsian Group Limited (ACN 109 078 257) (Kelsian Group or the Company). No party other than Kelsian Group has authorised or caused the issue of this document, or takes responsibility for, or makes any statements, representations or und
Slide 3: Review of FY22 Half Year Results
1 Review of FY22 Half Year Results 3
Slide 4: Financial snapshot of H1 FY22
Financial snapshot of H1 FY22 Resilient performance during the most challenging period of the pandemic Statutory Results Underlying Results Six months ended Six months ended 31 December 2021 31 December 2021 Revenue Revenue Balance Sheet strength used to support $649.0 million $649.0 million up 13.7
Slide 5: H1 FY22 overview
H1 FY22 overview Performing against the pressures of COVID-19 and enhancing the diversity of the contracted business Period highlights • Underlying Earnings before Interest ,Tax Depreciation and Amortisation (EBITDA) is $90.8 million, down 4.1% on prior year with total revenue of $649.0 million, up
Slide 6: Managing the impacts of COVID-19
Managing the impacts of COVID-19 Essential services operating largely as normal and any service curtailment is still mostly compensated through the contracts with all labour inputs being managed well COVID-19 Impact Australian Bus International Bus Marine & Tourism Service levels • Very limited curt
Slide 7: Managing the impacts of COVID-19
Managing the impacts of COVID-19 Cost base pressures either well hedged or the business has a strong ability to pass these costs on to the end consumer COVID-19 Impact Australian Bus International Bus Marine & Tourism Wage Cost • Wage increases pass through • Recruiting fine at current levels • Acce
Slide 8: Business characteristics and managing the cost base
Business characteristics and managing the cost base Operations diversified by transport mode, geography, contract expiry and client base. 83.2% of annualised revenue contracted or non-discretionary Characteristics of a typical public service contract Business fundamentals • Typically six to ten year
Slide 9: Safety and sustainability
Safety and sustainability The health and safety of our employees and customers and the sustainability of our business are some of our most important objectives COVID-19 Staff Zero emissions Green initiatives Accreditation • COVID-19 response – • Safety of our staff and • Sydney fleet to have • Solar
Slide 10: H1 FY22 financial results
2 H1 FY22 financial results 10
Slide 11: Summary profit & loss statement
Summary profit & loss statement Resilient performance during the most challenging period of the pandemic • Total revenue rising to $649.0m, driven by impact of Go West Tours acquisition and River City Ferries (full 6 months contribution) and new Singapore contract (3 months) • Operating expenses inc
Slide 12: One-off items
One-off items $0.6 million of one-off items normalised to underlying profit, relating to acquisition costs and abnormal non-cash gain from UK divestment Transaction costs – ($1.6 million) • During the period, $1.6 million of “one-off” transaction related costs were expensed associated with the acqui
Slide 13: Cash flow
Cash flow Underlying business continues to generate strong cashflow Cash flow statement Commentary • Good earnings quality and strong cash generation • Net operating cash flow $48.9 million, down $12.6 million or 20.5% • Higher interest expense represents increased borrowings during the period • Mai
Slide 14: Conservative capital structure
Conservative capital structure Maintained our balance sheet strength Summary balance sheet Commentary • Balance sheet strength is an asset - offers resilience and creates optionality • Gearing ratio (net debt divided by (net debt + equity)) – 34.9% increased from 30.5% • Identifiable customer contra
Slide 15: Capex overview
Capex overview H1 FY22 saw $21.1 million of capital deployed to underpin growth and re-fresh asset base Major additions / investments during the period Marine & Tourism • Vessels for Magnetic Island, Stradbroke Island, Sydney dining vessel Australian Bus • Electric Buses and depot charging infrastru
Slide 16: Divisional performance overview
3 Divisional performance overview 16
Slide 17: Australian Bus
Australian Bus Overview of H1 FY22 performance Solid trading result during a challenging operating period Commentary • Good performance from all jurisdictions • Most route services delivered as planned during the period • Contracted revenue largely unaffected by Covid impacts • Favorable operating c
Slide 18: International Bus
International Bus Overview of H1 FY22 performance Contract commencement in Singapore and Joint Venture in UK provides scale and critical mass Commentary London • Market remains highly competitive • JV with RATP Dev UK Ltd provides scale and synergies • London credential maintained • Strategic review
Slide 19: Marine and Tourism
Marine and Tourism Overview of H1 FY22 performance COVID continues to severely challenge the tourism industry Commentary • Results impacted for the full period by COVID restrictions and uncertainty • Government support packages ended or scaled back despite restrictions being maintained • Staff short
Slide 20: Corporate
Corporate Overview of H1 FY22 performance Focus on integration and efficiency improvements Commentary • Investment in people and systems to drive efficiencies and position business for growth — Information Technology — Cyber — Customer experience — Websites 20 © Kelsian Group Limited FY22 Half Year
Slide 21: Outlook and Growth
4 Outlook and Growth 21
Slide 22: Trading update and outlook
Trading update and outlook Essential services continue to run on a full schedule, while the Marine & Tourism portfolio is poised to take advantage of the return of interstate and international visitors ― Current trading results in 2022 overall in line with expectations ― Singapore integration of new
Slide 23: Growth
Growth Highly skilled team focused on organic and acquisitive growth, domestically and abroad Near-term growth objectives Medium-to-long term strategic objectives • Bus contract tender pipeline in Australia – most • Building out and executing on our plan for Kangaroo significantly in NSW Island for
Slide 24: Appendix
5 Appendix 24
Slide 25: Kangaroo Island Ferry Contract
Kangaroo Island Ferry Contract Underpins future capital investment and provides certainty • 25-year contract secured from 1 July 2024 (15yrs + 5yrs + 5yrs) • Government controlled fares for Kangaroo Island residents and freight • Uncontrolled fares for all other fare types • Dynamic pricing model wi
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