Ashley Services Group Ltd. · ASX:ASH
Ashley Services — FY2015 Earnings Presentation
24 slides from Ashley Services's earnings presentation, Aug 19, 2015
Slide 1: Results Presentation for Year Ended 30 June 2015
For personal use only RESULTS PRESENTATION FOR YEAR ENDED 30 JUNE 2015 19 AUGUST 2015 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, (19 August 2015). The information contained in this presentation is
Slide 3: Table of Contents
TABLE OF CONTENTS For personal use only Page 1. YEAR ENDED 30 JUNE 2015 RESULTS 4 2. FY16 OUTLOOK 14 3. KEY PERFORMANCE INDICATORS 16 4. APPENDIX 22 3
Slide 4: FY15 Results
For personal use only RESULTS PRESENTATION FOR YEAR ENDED 30 JUNE 2015 FY15 RESULTS 4
Slide 5: FY15 Proforma Results Compared to the Prospectus Forecast and FY14 Results
FY15 PROFORMA RESULTS COMPARED TO THE PROSPECTUS For personal use only FORECAST AND FY14 RESULTS Proforma Actual Proforma Variance to Proforma Variance to unaudited FY15 Prospectus FY15 Prospectus Actual FY14 Actual FY14 $m $m % $m % Revenue 305.8 319.5 (4.3%) 287.1 6.5% EBITA 19.2 29.7 (35.4%) 21.9
Slide 6: Statutory FY15 Results Compared to Statutory Prospectus and FY14 Results
STATUTORY FY15 RESULTS COMPARED TO STATUTORY For personal use only PROSPECTUS AND FY14 RESULTS Statutory Actual Statutory Variance to Statutory Variance to unaudited FY15 Prospectus FY15 Prospectus Actual FY14 Actual FY14 $m $m % $m % Revenue 304.7 316.5 (3.7%) 250.9 21.4% EBITA 21.1 24.1 (12.5%) 14
Slide 7: FY15 Proforma Income Statement
FY15 PROFORMA INCOME STATEMENT For personal use only Actual FY15 Proforma unaudited Prospectus FY15 Variance Actual FY14 Variance Revenue v prospectus $m $m % $m % • ASG Integracom revenue $11m below Revenue by Business Channel prospectus Labour Hire 261.0 264.4 (1.3) 245.4 6.4 • ASG Training in lin
Slide 8: Proforma Result v April Market Guidance
PROFORMA RESULT V APRIL MARKET GUIDANCE For personal use only Proforma EBITDA of $20.7m – marginally below low end of guidance ($21m, April 2015). Key Variances: Labour hire revenue and EBITDA - negatively impacted by the Sydney storms in April and May (which impacted certain client sites in Western
Slide 9: Training Business
TRAINING BUSINESS For personal use only 18 16.8 45% TRAINING – GROWTH & MARGIN ANALYSIS 40% 14.7 16 37% 36% 40% 36% 33% 14 9.1 35% Key Points 12 7.3 30% – Enrolments 6.5% below prospectus of 2HFY EBITDA 10 25% 23,115 EBITDA FY 1HFY 8 8.9 20% – NSW 2,210 enrolments below 6 7.7 7.7 7.4 15% prospectus
Slide 10: Labour Hire Business
LABOUR HIRE BUSINESS For personal use only 10 12% LABOUR HIRE – GROWTH & MARGIN ANALYSIS 9.0 9 Key Points 8 3.5 10% 7.3 2HFY EBITDA 7 7.5 5.0 8% • Result strong versus prior year EBITDA FY 6 5 6% 5.9 6% 1HFY 5.5 • Revenue $15.6m (6.4%) above 4 5.0 3 4% prior year (full year impact of 3 EBITDA margin
Slide 11: FY15 Cash Flows
FY15 CASH FLOWS For personal use only Statutory Actual Key Points FY15 (unaudited) $m • Much stronger operating cash flow for H2 EBITDA 22.6 • Seasonality in labour hire, but also improved working Changes in Working Capital (3.9) capital management Net Interest Received/Paid 0.1 • Statutory EBITDA i
Slide 12: FY15 Actual Statement of Financial Position
FY15 ACTUAL STATEMENT OF FINANCIAL POSITION For personal use only Actual Working capital (trade and other receivables 30 June 15 Actual Pro forma Actual less trade and other payables) (unaudited) 31 Dec 14 As at 30 Jun 14 $m $m $m • Decrease from Dec 14 of $10m – mainly seasonality within labour hir
Slide 13: Historical Results
HISTORICAL RESULTS For personal use only FY15 EBITDA negatively impacted by Strong revenue growth Integracom 350 $m +6.5% 25 $m -9.6% 305.8 22.9 287.1 20.7 300 13.4 148.2 20 141.7 24% CAGR 9.1 250 23% CAGR 200 2H 15 2H 2H 150 176.0 13.0 2H 162.4 10 12.5 12.5 157.6 11.6 137.0 145.4 100 9.5 5 50 1H 1H
Slide 14: FY16 Outlook
For personal use only FY15 RESULTS PRESENTATION FY16 OUTLOOK 14
Slide 15: FY16 Outlook Statement
FY16 OUTLOOK STATEMENT For personal use only CURRENTLY EXPECT FY16 NET PROFIT AFTER TAX BEFORE AMORTISATION OF ACQUIRED INTANGIBLES (NPATA) IN LINE WITH PROFORMA FY15. THE FOCUS IS TO DIVERSIFY TRAINING REVENUES – BOTH FUNDING SOURCES AND MARKETS Potential growth opportunities for FY16 Increased f
Slide 16: Key Performance Indicators
For personal use only FY15 RESULTS PRESENTATION KEY PERFORMANCE INDICATORS 16
Slide 17: Business Operations
BUSINESS OPERATIONS For personal use only ASHLEY SERVICES HAS A NATIONAL FOOTPRINT WITH STRATEGICALLY LOCATED OFFICES AND TRAINING CENTRES IN EACH STATE AND TERRITORY TO SERVICE THE DEMANDS IN EACH REGION Offices 45 Additional Training locations 82 Staff 434 Trainers 149 Qualifications & Courses 113
Slide 18: Ashley Services' Training Business
ASHLEY SERVICES’ TRAINING BUSINESS For personal use only ASHLEY SERVICES’ TRAINING BUSINESS IS ONE OF AUSTRALIA’S LARGEST INDEPENDENT VET PROVIDERS 25,000 Total Enrolments1 Overview 21,621 19,802 • Ability to deliver training nationally through 45 training offices 20,000 and an additional 82 trainin
Slide 19: VET Qualifications
VET QUALIFICATIONS ASHLEY SERVICES’ TRAINING OFFERS A BROAD RANGE OF QUALIFICATIONS AND IS For personal use only FOCUSSED ON THE DESIGN AND DEVELOPMENT OF HIGH QUALITY TRAINING SOLUTIONS Qualification scope and offering Training courses scope summary • Comprehensive and diverse VET offering: 106 nat
Slide 20: Ashley Services' Labour Hire Business
ASHLEY SERVICES’ LABOUR HIRE BUSINESS For personal use only ASHLEY SERVICES’ LABOUR HIRE BUSINESS IS A SPECIALIST AUSTRALIAN LABOUR HIRE BUSINESS Established relationships Overview • Established, specialist labour hire business founded in 1968 • National coverage and scale Currently employs ~4,0
Slide 21: Ashley Services' Clients
ASHLEY SERVICES’ CLIENTS LABOUR HIRE HAS ESTABLISTED AND LONG TENURE RELATIONSHIPS WITH HIGH For personal use only QUALITY CLIENTS Revenue by Industry Clients • Diversified client base; 74% Logistics • Strong presence in the warehouse, logistics, fast-moving 12% Horticulture consumer goods, food, ph
Slide 22: Appendix
For personal use only FY15 RESULTS PRESENTATION APPENDIX 22
Slide 23: Appendix 1: FY15 Statutory Income Statement
APPENDIX 1: FY15 STATUTORY INCOME STATEMENT For personal use only Statutory Revenue Actual FY15 Statutory Statutory Up $53.8m (21%) due to: (unaudited) Prospectus FY15 Variance Actual FY14 Variance $m $m % $m % 1. Acquisitions (+$27.7m) Revenue by Business Channel 2. Organic growth in labour hire (+
Slide 24: Appendix 2: Reconciliation from Statutory to Pro Forma Income Statement
APPENDIX 2: RECONCILIATION FROM STATUTORY TO For personal use only PRO FORMA INCOME STATEMENT Reconciliation from statutory EBITDA to Pro forma EBITDA FY15 Note 1 $m Note unaudited Prospectus GST on float costs and increased acquisition costs for Integracom and for SILK Pro forma EBITDA 20.7 31.0 No