Journeo Plc · LSE:JNEO
Journeo — 21st Century Technology — Investor Presentation (May 2015)
26 slides from Journeo's investor presentation, May 20, 2015
Slide 1: 21st Century Technology plc Shareholder Presentation
st 21 Century Technology plc Shareholder Presentation 20 May 2015 Shareholder Presentation May 2015 1
Slide 2: Agenda
Agenda 1. Introduction 2. Strategy recap 3. Stabilising the business 4. Strategy implementation & Region Services acquisition 5. SmartTrain demonstration Shareholder Presentation May 2015 2
Slide 3: Introduction
1. Introduction Home Introduction Innovative Design Integration Support Our in‐house design team Specialising in integration, We adopt comprehensive work closely with customers we ensure that our maintenance schedules and and suppliers to create customers get the best from utilise system health chec
Slide 4: Strategy recap: 5-year development plan
2. Strategy recap Strategy recap: 5‐year development plan Managed Services • Support all on Smart vehicle Systems Integrator • Outsource • Broader Portfolio operators support • Unifying Software staff • Strategic • Data Exchange Integrator Acquisitions • Extend to • Point Solutions Connected Fleets
Slide 5: Drivers of change
2. Strategy recap Drivers of change • Systems on vehicles • Ever increasing in number, sophistication & data integration requirements • Complexity of fleets • Fleets are large, geographically dispersed & built up over many years (average fleet age: 18 yrs. train, 7 yrs. bus) • Service provider requi
Slide 6: Systems & technologies
2. Strategy recap Systems & technologies Roadside Traveller Traffic lights, Passenger Info Wi‐Fi, Infotainment, Apps GPS, Network & communications Vehicle Back office Displays, CCTV, Behaviour, Operational, Voice‐comms, Location, Ticketing, Driver UI Data Exchange, RCM From shareholder Presentation
Slide 7: Service provider requirement
2. Strategy recap Service provider requirement • A new position opening Capability Experts in multiple • Increasing complexity in terms of systems number of systems and their critical cost of failure. • To act as the conduit for world class products onto vehicles and provide support over their Trust
Slide 8: Business model
2. Strategy recap Business model • Specialist provider of CCTV, monitoring and information systems for passengers & fleet operators in the Bus & Rail industries • We compete by striving to offer better integrated solutions at reduced costs to our customers. • We carefully research other adjacent cus
Slide 9: Strategy recap: Key messages
2. Strategy recap Home Strategy recap: Key messages • Add value by creating better solutions with reduced costs. • Apply these skills to carefully selected niche markets where we can achieve significant profitable market share. • Based on an open system philosophy using global scale products with a
Slide 10: Stabilising the business
3. Stabilising Stabilising the business • We set 6 strategic goals as keys to stabilise the Group: • Improve customer service • Increase technical capability • Empower management • Secure positive outcomes for contract renewals • Develop new lines of business • Preserve cash Shareholder Presentation
Slide 11: Quick facts
3. Stabilising Quick facts • Improved Customer service • Increased technical capability • Empowered management Shareholder Presentation May 2015 11
Slide 12: Secure positive customer outcomes
3. Stabilising Secure positive customer outcomes • Success in framework renewals; £5.4m+ in Q4 • 2 yr. Arriva bus UK • 3 yr. Arriva AB Sweden • 4 yr. Keolis AB Sweden • Successful adoption of FFCCTV by Train Op‐Co • Continued roll‐out of new driver behaviour system in France Shareholder Presentation
Slide 13: Develop new lines of business
3. Stabilising Develop new lines of business • From the strategic report: “the objective to develop new lines of business has not yet been met, as our efforts to break into the medium sized bus operators have not yet delivered significant market share, and a bid to extend our rail capabilities to in
Slide 14: Financial highlights FY14
3. Stabilising Financial highlights FY14 • Cash position improved significantly to £2.7m (2013: £1.3m) • Underlying loss before tax of £0.1 m (2013: underlying loss £0.2m) • The basic loss per share is 0.41p (2012: loss per share 0.26p). • Cost‐base reduced in Q1 2014 by c. 20% following significant
Slide 15: Stabilising the business
3. Stabilising Home Stabilising the business Key points from strategic report: • We have built a far more secure platform on which to plan, execute and deliver long term growth • The reliance on a small number of large customers remains a potential risk to the group • The strategy to broaden and ext
Slide 16: Strategy implementation: M & A
4. Acquisition Strategy implementation: M & A Several interesting targets identified: • Potentially available for sale • Affordable • Earnings enhancing • Complimentary • Reduce risk • Increase capability • Manageable Taken over 12 months to conclude the first one. Shareholder Presentation May 2015
Slide 17: Introducing Region Services Ltd
4. Acquisition Introducing Region Services Ltd Specialists in Passenger Information Systems (PIS), software and support • Established 1989 • Based in Coventry, United Kingdom • £4m sales 2014 • 47 people • Market leaders in the UK bus sector • Reputation for providing high quality and effective prod
Slide 18: Digital signage
4. Acquisition Digital signage Hardware Software Services • Display screens with • Content Management • Design, integration embedded media System (CMS) and installation players • Remote health status • Content creation • Environmental reporting • CMS monitoring enclosures • Graphics processing & • O
Slide 19: Strategic and cultural fit
4. Acquisition Strategic and cultural fit • Transport Sector • Market leaders in niche area • SMART Integrator • Engineering based • Value for Money • Customer Focused • Senior Team • Reputation Shareholder Presentation May 2015 19
Slide 20: Acquisition rationale
4. Acquisition Acquisition rationale Strategy Element Description Diversify Earnings New technology area Real‐Time Passenger Information (RTPI) and ticketing systems New sales arena Off‐vehicle New customers local authorities and PTEs Reduced revenue concentration Largest customer <10% of business A
Slide 21: Acquisition financials
4. Acquisition Acquisition financials • Purchase the entire issued share capital of Region Consultants Ltd, Region Services Ltd and RSL Cityspace Ltd (together "RSL Group"). • Total consideration for the acquisition of RSL Group is £1.3m • £1.1m in cash, funded from the Company's existing cash resou
Slide 22: Growth potential
4. Acquisition Growth potential • Increase market share • Broaden offering • PA, help points etc. • Adjacent niches • Rail, tram • Geographic • Scandinavia • France • Middle East • South Africa Shareholder Presentation May 2015 22
Slide 23: Synergies & economies of scale
4. Acquisition Synergies & economies of scale Consultative design By getting to know what the customer needs, and what they hope to achieve, we supply solutions that are not only best‐of‐breed, On‐Vehicle Systems but best for the customer • Bus Integrated solutions We aim to offer a rationalised inf
Slide 24: The Group today
4. Acquisition Home The Group today On‐board Off‐board CCTV CCTV Passenger Information Screens • Forward‐facing (FFCCTV) • Complete range of solutions available • Broadcast screens • In‐carriage/saloon Passenger counting • Interactive terminals • Driver platform view (DOO) • Passenger Analysis Syste
Slide 25: Customer benefits of a trusted integration partner
5. SmartTrain Customer benefits of a trusted Home integration partner Demonstration of the 21st Century Technology SmartTrain Shareholder Presentation May 2015 25
Slide 26: 21st Century Technology plc
21st Century Technology plc Innovation in Transport Technology Shareholder Presentation May 2015 26
21st Century Technology — Investor Presentation (May 2015) on 6ix