Veris Limited · ASX:VRS
Veris — Investor Presentation (September 2020)
47 slides from Veris's investor presentation, Sep 4, 2020
Slide 1: Investor Presentation
Investor Presentation September 2020
Slide 2: Veris Limited at a glance
Veris Australia Aqura Technologies Veris Limited at a glance OVER 500 20 9.08 0.0 Personnel Australia wide Locations across Australia Safety: TRIFR LTIFR 2
Slide 3: What we do
What we do Veris Australia is a leading national surveying, digital and spatial and planning business Engineering survey Property survey Digital and spatial Planning and urban design Aqura Technologies is an industry leader in the provision of innovative technology solutions Industrial wireless Cont
Slide 4: Veris Limited Financials
Veris Limited . Financials = )
Slide 5: Veris Limited – P&L
Veris Limited – P&L FY20 FY19 Chg% ▪ Group revenue from continuing operations $M $M declined 12% primarily resulting from: Veris Australia revenue 74.8 92.9 (20%) ▪ multiple factors impacting Veris Australia; Veris Limited financials Aqura revenue 19.3 14.6 32% Revenue from ordinary activities 94.1
Slide 6: Veris Limited – Balance Sheet
Veris Limited – Balance Sheet FY20 FY19 ▪ Balance sheet review and clean up undertaken at 30 June 2020 resulting in $M $M noncash impacts: Cash 1.9 3.7 ▪ detailed review of WIP - legacy, aged, unbillable WIP written off / Debtors 13.2 25.9 provisioned; Veris Limited financials WIP 5.8 8.3 Other asse
Slide 7: Veris Limited – Cash Flow Summary
Veris Limited – Cash Flow Summary FY20 FY19 ▪ $8.0 million cash generated from operations. $M $M ▪ Proceeds from sale of Elton Consulting utilised Receipts from customers 121.6 143.8 Veris Limited financials to pay down term debt. Payments to suppliers and employees (113.6) (136.2) Cash generated fr
Slide 8: Our response to COVID-19
Our response to COVID-19 ▪ Review of Veris Australia's operating model - opportunity to fast track our change program, including operating structure. ▪ A 50% and 25% respective reduction in Board and Leadership Team fees and remuneration. ▪ Adoption of innovative work practices, enabling project wor
Slide 9: Veris Australia
Veris Australia 9
Slide 10: Veris Australia – Financial Summary
Veris Australia – Financial Summary Veris Australia FY20 FY19 Chg % ▪ Impact on Veris Australia revenue as a result of: Revenue $M $M ▪ catastrophic bushfires; Veris Australia - financials Southern Region (Vic, SA, Tas) 30.7 26.4 16% ▪ subsequent severe weather events; NSW and ACT 20.4 36.8 (45%) ▪
Slide 11: Operational and business model review
Operational and business model review Review of operational and business model Performance through early FY20 was not sustainable, with endemic operational issues identified: ▪ siloed regional structures; ▪ internal operating model; and ▪ project delivery. ▪ Operational restructure implemented throu
Slide 12: Strength in a national footprint
Local presence and national reach Strength in our national footprint and Strength in a national footprint approach underpinned by: ▪ diverse customer base; ▪ market access; ▪ key national clients; ▪ local relationships; ▪ coordinated approach to CAPEX investment and utilisation; ▪ resource and knowl
Slide 13: Positioning for sustained success
Positioning for sustained success Issues impacting performance Our approach to improved performance Positioning for sustained success Operational ▪ Organisational restructure – operating model efficiency and simplicity. overheads ▪ Reduction in headcount and internal management roles. ▪ Operational
Slide 14: Positive impact from structural and operational enhancements
Positive impact from structural and operational enhancements Positive impact from enhancements Underlying BAU revenue $7,000,000 ▪ Improved performance through Q4 $6,800,000 FY20 into Q1 FY21. $6,600,000 ▪ Progressively reduced the $6,400,000 underlying ‘operational’ write-offs. $6,200,000 ▪ Monthly
Slide 15: Market outlook (summary)
Market outlook (summary) Infrastructure $314 billion pipeline of infrastructure projects either Market outlook - summary planned or underway. 1 Resources Mining investment is expected to grow for the first time in seven years by 4% in 2019-20 and another 9.5% in 2020-21. 2 Property The property sect
Slide 16: Market outlook – industry at a glance
Market outlook – industry at a glance Industry at a glance SURVEYING AND MAPPING SERVICES $3.1 billion Annual revenue Products and services segmentation Key external drivers ▪ Demand from residential building construction. ▪ Demand from heavy and civil engineering construction. ▪ Actual capital expe
Slide 17: Pipeline – strong outlook
Pipeline – strong outlook • Despite the current economic uncertainty due to COVID-19, our Veris Australia – pipeline secured forward workload has grown $8M to in excess of $40 million. • In addition to our forward workload, $8M we anticipate ongoing project variation and direct assignment works. • H
Slide 18: Veris Australia Strategy
Veris Australia Strategy 18
Slide 19: Strategy FY21
Strategy FY21 The focus of the business for FY21 will be based on two themes positioning the business to harness its national brand. Veris Australia – Strategic Plan WHERE ▪ Focus on core sectors of engineering and property survey to capitalise on WE WILL growth markets. ▪ Accelerate growth in digit
Slide 20: The push towards digitalisation by industry
The push towards digitalisation by industry ▪ Digitalisation of the built environment has enormous potential to deliver enhanced value to stakeholders. ▪ Indicatively, the digitalising of engineering, construction and operational processes will generate value of circa 10% - 20% of project CAPEX acro
Slide 21: Building the digital value for clients
Building the digital value for clients CLIENTS VALUE DELIVERING KNOWLEDGE BUILDING INFORMATION LEVERAGING DATA CONSOLIDATING PEOPLE
Slide 22: Preparing digital and spatial for growth
Preparing digital and spatial for growth Veris, as Australia’s largest survey, digital and spatial and planning business: ▪ collects, holds and understands infrastructure data; and Digital and spatial ▪ that digitalisation and data analytics provide the platform for our Data as a Service (DaaS) offe
Slide 23: Data and technology providers
3D visuals and AR/VR Data brokering Intelligence Data and (DaaS) Engineering Simulations technology design providers Analytics 2021+ Insights Asset management Concepts Infrastructure digital data Safety and Community Digital training engagement transformation Key differentiator Applications Surveyin
Slide 24: Veris Australia Outlook
Veris Australia Outlook 24
Slide 25: Veris Australia summary
Veris Australia summary ▪ FY21 objective is to deliver a stable, profit generating business. ▪ Simplified structure and approach – consolidate the professional services business Veris Australia – summary mindset. ▪ Four key focus areas: ✓ Cost control • Re-organisation and simplification of the busi
Slide 26: Aqura Technologies
d X Aqura Technologies F
Slide 27: Aqura Technologies Our solutions
Aqura Technologies Our solutions Industrial Content Unified Industrial Wireless Access Communications IoT Network Latest generation wireless Optimises user Offers powerful Simplifies and solves the connectivity designed, and experience for Internet, functionality that is tiered whole communications
Slide 28: Strategic approach
Strategic approach Position Aqura as the partner of choice to deliver high-performance communications solutions for clients as they navigate digital transformation. • Historical focus on execution of capital projects providing solutions for industrial communications and technology solutions for its
Slide 29: Solid delivery record
Solid delivery record Deployment of Mission critical Aqura Technologies Autonomous Rapid Content Access push-to-talk (PTT) Communication over LTE Network – BHP – Underground LTE (ARC) platform integration all Pilbara sites solution for a (undisclosed) Content Access Goldfields gold LTE mine solution
Slide 30: Aqura Technologies Strategy achievements – FY20
Aqura Technologies Strategy achievements – FY20 Continued Expanded Increased Enhancement Commencement engagement with geographical sales capacity of financial and of “as a service” Tier 1 customers presence and and exposure governance products program market reach structures ▪ Investments in FY20 im
Slide 31: Aqura – Summary P&L
Aqura – Summary P&L ▪ Aqura continued its strong growth in FY20, FY20 FY19 Chg % delivering year on year revenue growth of 32%. Aqura $M $M ▪ Growth driven by continued expansion in delivery of Revenue 19.3 14.6 32% services to Tier 1 clients such as: EBITDA 1.1 1.9 (42%) Aqura Technologies ▪ BHP; D
Slide 32: Key contract wins – FY20
Key contract wins – FY20 LTE deployments – Pilbara iron LTE deployment - North Queensland ore mines (x7), WA ARC trailer supply Aqura Technologies ARC trailer supply WAIO IRCES – Pilbara, WA CAN discovery – 4 sites - Queensland Global Wi-Fi project – Yandi Managed services – Pilbara, WA CAN deployme
Slide 33: FY21 pipeline - diverse work in hand
FY21 pipeline - diverse work in hand • Aqura has had a strong start to FY21 and as at 2 September 2020, Aqura has over $7 million of both deferred and newly awarded work in hand. • Healthy, unsecured project pipeline has a weighted value of over $60 million. Aqura Technologies $7.2M $15M $45M Secure
Slide 34: Market overview
Market overview ▪ Australian resources is at the tail of early LTE adoption. Industrial Wireless ▪ Tier 2 now engaging, however want flexibility in commercials. ▪ Wi-Fi 6 presents new opportunity for upgrade paths. Aqura Technologies ▪ Quality content access and connectivity now a key requirement to
Slide 35: Business evolution
Business evolution Q2 Q3 Q4 FY21 Q1 Aqura Technologies Capital projects Opex/aaS UC CAN IIoT LTE Continued pursuit of large capital projects, rapid development to launch and market new ’aaS’ products H2 onwards. 35
Slide 36: Leverage the foundations
Aqura Technologies Leverage the foundations Consolidate foundations Extract the Value FY21 FY22 Capital projects LTE-aaS Product delivery CAN-aaS Managed services IIoT Deferred work Aged care Defence Primary industry Retail Expand channel 36
Slide 37: Year ahead – FY21 and summary
Aqura Technologies Year ahead – FY21 and summary Strong work Continued focus Continued Leverage in hand and on strong and development expanded pipeline resilient team of product geographical and suites market reach ▪ Focus on strong work in hand, both deferred and new committed works. ▪ Continue pro
Slide 38: Veris Limited - summary
Veris Limited - summary ▪ FY20 has been challenging, impacted by extreme weather events and COVID-19 pandemic. Veris Limited - summary ▪ The Group has benefited from its national footprint and diverse customer base which has contributed to a softening of the impacts. ▪ Demonstrated agile and innovat
Slide 39: Disclaimer
Disclaimer 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 securities in Veris s
Slide 40: Appendices
Appendices 40
Slide 41: Impact of AASB (lease accounting)
Impact of AASB 16 (lease accounting) $M FY20 FY20 FY19 Statutory AASB 16 Ex AASB 16 Statutory Revenue 94.1 94.1 107.6 Veris Limited financials EBITDA 1.9 4.7 (2.8) 4.1 Depreciation (11.5) 4.6 (6.9) (5.0) EBITA (9.6) 0.1 (9.7) (0.9) Amortisation of intangibles (2.3) (2.3) (2.9) Finance costs (2.1) 0.
Slide 42: Veris Australia – regional update: Southern Region
Veris Australia – regional update Southern Region (Victoria, South Australia and Tasmania) Revenue EBITDA EBITDA % FY20 $30.7M $7.1M 23.2% FY19 $26.4M $4.0M 15.1% ▪ Will remain a strong performer in FY21. ▪ Local market opportunities remain strong. ▪ Key project wins in the Defence sector and ongoin
Slide 43: Western Australia
Western Australia Revenue EBITDA EBITDA % Veris Australia – regional update FY20 $11.4M $1.3M 11.8% FY19 $15.3M $0.8M 5.2% ▪ Growth in the resources sector continues. ▪ Increase in property sector due to government initiatives and investment to fast track. ▪ Key project wins, including Defence secto
Slide 44: Queensland
Veris Australia – regional update Queensland Revenue EBITDA EBITDA % FY20 $12.8M $1.7M 13.5% FY19 $14.5M $2.5M 17.1% ▪ Diverse portfolio of projects currently being delivered. ▪ Starting to see some rebound in the south- east Queensland property market. ▪ The north Queensland business remains strong
Slide 45: New South Wales and Australian Capital Territory
New South Wales and Australian Capital Territory Revenue EBITDA EBITDA % Veris Australia – regional update FY20 $20.4M ($1.9M) (9.3%) FY19 $36.8M $4.7M 12.8% ▪ Wholesale restructure and rebuild of the region has been undertaken and starting to see the benefits. ▪ Consolidation of offices in Sydney p
Slide 46: Market outlook
Market outlook WESTERN SEABOARD EASTERN SEABOARD RESOURCES INFRASTRUCTURE $27.2bn Projects committed or $157bn In funding committed under construction 1 over the next four years 2 Major projects by value* Value ($) Market outlook billions Infrastructure pipeline by value Value ($) BHP South Flank 5.
Slide 47: Economic response to COVID-19
Economic response to COVID-19 Infrastructure to play pivotal roll in economic recovery The Australian Government has committed to delivering a $100 billion, • Queensland Government commits to $50 billion 10-year infrastructure pipeline, and Infrastructure Guarantee maintaining the announced it will