Vianet Group Plc · LSE:VNET
Vianet — FY2024 Earnings Presentation
20 slides from Vianet's earnings presentation, June 2024
Slide 1: Full Year Results Presentation
FULL YEAR RESULTS PRESENTATION Year Ended 31 March 2024 JUNE 2024 James Dickson Mark Foster Chairman & CEO CFO
Slide 2: Vianet Group Plc – What We Do
VIANET GROUP PLC – WHAT WE DO Transforming Business Performance: Providing Actionable Insights from Critical Data Analysis UNATTENDED RETAIL DIVISION – c. 40,000 MACHINES HOSPITALITY DIVISION – c. 10,000 PUBS, BARS, RESTAURANTS Comprehensive vending management Market leading comprehensive beverage s
Slide 3: Strong Financial Performance Despite Challenging Economic Conditions
STRONG FINANCIAL PERFORMANCE DESPITE CHALLENGING ECONOMIC CONDITIONS £15.18M REVENUE £3.67m OPERATIONAL CASH GENERATION (FY 2023: £14.12m) POST-WORKING CAPITAL, pre tax rebate (FY 2023: £2.02M) £12.94m RECURRING REVENUE 85% OF TURNOVER c.104% NET EBITDA CASH CONVERSION (FY 2023: 89%) c.69% GROSS MAR
Slide 4: Good Momentum in Smart Machines Despite H1 and Q3 Delays Due to MNO 3G Switch Off
GOOD MOMENTUM IN SMART MACHINES DESPITE H1 AND Q3 DELAYS DUE TO MNO 3G SWITCH OFF TAILWINDS FROM DELAYS 6.46% MACHINE UNIT IN 3G TRANSITION ESTATE GROWTH Management Platform DRIVING Q4 & FY25 SALES to c36,100 DEVICES GROWTH • Service module - Jan 2023 • Finance module - June 2024 c 74% RECURRING REV
Slide 5: Significant Forecourt Progress with Partner Suresite Following H1 Groundwork
SIGNIFICANT FORECOURT PROGRESS WITH PARTNER SURESITE FOLLOWING H1 GROUNDWORK UK SELF SERVE MARKET SURESITE RONTEC c.1,500 Automated Car Washes c 600 DEVICES 850 DEVICE ORDER SECURED c.7,000 Jet Wash > 200 INDEPENDENT CUSTOMERS 6-month rollout completing by c.5,000 Vac c.9,000 Air Towers July 24 (Fig
Slide 6: Hospitality Turning the Corner and Improving Growth Outlook
HOSPITALITY TURNING THE CORNER AND IMPROVING GROWTH OUTLOOK SOLID INSTALLED BASE - 9,640 PUBS 260 new installations ; pub closure rate decreasing. Long-term contracts secured - 3 new and 8 renewals BMI INTEGRATION EXTENDS Pub closure rate declining & Data driven digital transformation stimulating de
Slide 7: Positive Prospects in UK Hospitality Division
POSITIVE PROSPECTS IN UK HOSPITALITY DIVISION VIANET UK BASE – 9,600 PUBS BEVERAGE METRICS c 41,000 UK PUB MARKET £8.1M recuring revenue OPPORTUNITY Draught beer module c.12,000 Leased & Tenanted Monitor c 8.6M pints/week Standalone stock module c.10,000 Managed Protect c £2.2bn Retail Wider pub mar
Slide 8: Strategic Acquisition of Beverage Metrics Extending Capabilities
STRATEGIC ACQUISITION OF BEVERAGE METRICS EXTENDING CAPABILITIES COMPREHENSIVE, SCALABLE, AND PROVEN ON-PREMISE BAR MANAGEMENT SOLUTION CONFIGURABLE DASHBOARD – EVERYTHING A MANAGER NEEDS IN 30 SECONDS FINANCIAL DATA – SHIFT POS LOSS, POUR COST, MARGIN ANALYSIS, KEG DEPOSITS ALERTS AND QUALITY CONTR
Slide 9: USA Addressable Market - 382K Licensed On Premise Units Across Four Key Segments
USA ADDRESSABLE MARKET - 382K LICENSED ON PREMISE UNITS ACROSS FOUR KEY SEGMENTS Total Outlets (K) 100 222 84 55 21 382 80 60 187 81 39 11 318 40 20 35 16 10 64 0 3 (%) Restaurant Bar/Club Recreation/Entertainment Hotel Total Small Chain or Independent (1-10 Units) Large Chain (11 or More Units) 9
Slide 10: Beverage Metrics Successfully Tracking Towards USA Profitability
BEVERAGE METRICS SUCCESSFULLY TRACKING TOWARDS USA PROFITABILITY PROPOSITION MARGARITAVILLE CHILIS TYPICAL ROI 3-6 MONTHS FRANCHISE TECHNOLOGY STACK 20 SITES PERFORMANCE & PRODUCTIVITY 24 EXISTING SITES UPGRADE TO BEVERAGE METRICS INTUITIVE MINUTE / DAY > 100 SITE OPPORTUNITY 20 SITE FOOTPRINT EXPAN
Slide 11: Fintech Is a Market Leader and the Partnership Creates Unique Access/RTM
WWW.FINTECH.COM IS A MARKET LEADER AND THE PARTNERSHIP CREATES UNIQUE ACCESS/RTM 40% OF ALL RETAIL & HOSPITALITY ESTABLISHMENTS WITH ALCOHOL LICENSES RELY ON FINTECH 50 MILLION ALCOHOL INVOICES WORTH USD 50BN PROCESSED ANNUALLY PAYMENT SOURCETM USED BY 240,000 RETAIL CUSTOMERS AND 5,000 DISTRIBUTORS
Slide 12: Fintech OrderSource Integration Enables Full Cycle P2P & Supply Chain Automation
FINTECH ORDERSOURCETM INTEGRATION ENABLES FULL CYCLE P2P & SUPPLY CHAIN AUTOMATION “Procure to Pay” workflow significantly reduces the labor and time required for ordering, receiving, invoicing and the inventory process. 12
Slide 13: Good Financial Performance Across Key Metrics
GOOD FINANCIAL PERFORMANCE ACROSS KEY METRICS Unaudited (£'000s) FY22 FY23 FY24 Turnover 13,215 14,115 15,176 Gross Profit 8,561 9,378 10,431 GP % 64.8 % 66.4 % 68.7 % (a) Operating Expenses (6,198) (6,273) (6,962) (b) EBITDA 2,649 3,624 4,012 (b) Operating Profit 2,363 3,105 3,469 OP % 17.9% 22.0%
Slide 14: Gross Profit Growth Underpinned by Strong Recurring Revenues
GROSS PROFIT GROWTH UNDERPINNED BY STRONG RECURRING REVENUES FY 2022 (£000's) FY 2023 (£000's) FY 2024 (£000's) Smart Zones Smart Machines Smart Zones Smart Machines Smart Zones Smart Machines Turnover 7,831 5,384 8,163 5,952 8,615 6,561 Gross Profit 5,495 3,072 6,289 3,112 6,894 3,583 GP % 70.2% 57
Slide 15: Business Expansion Is Driving Cash Growth
BUSINESS EXPANSION IS DRIVING CASH GROWTH Cash Flow FY/22 FY/23 FY/24 £'000 £'000 £'000 Operating Profit / (Loss) (36) 1,580 1,060 Depreciation 489 519 544 Amortisation 2,195 2,254 2,164 Loss on disposal of assets 83 24 61 Deferred consideration release (76) 0 0 Net Operational Cash Inflow pre WC 2,
Slide 16: Strong Balance Sheet and Enhanced Debt Repayment Profile
STRONG BALANCE SHEET AND ENHANCED DEBT REPAYMENT PROFILE March 2022 March 2023 March 2024 Fixed Assets 27,094 26,650 27,067 Intangible 23,832 23,280 23,740 Property Plant equipment 3,262 3,370 3,327 Net Current Assets 914 834 3,709 Stock 1,573 2,276 2,185 Debtors 2,690 3,781 3,873 Tax 386 (827) (810
Slide 17: On Track to Deliver Sustained Growth
ON TRACK TO DELIVER SUSTAINED GROWTH HEALTHY PIPELINE & SOLID REVENUE BASE ENSURING RECURRING GROWTH SALES PIPELINE ACCELERATING PRODUCTS ALIGNED WITH LARGE-SCALE • 3G NETWORK TRANSITION • NEW CONTRACTS USA/UK MARKETS • STRATEGIC FORECOURT ENTRY DATA & INSIGHT DEMAND CONTACTLESS VERY WELL POSITIONED
Slide 18: Questions?
QUESTIONS? VIANET "8
Slide 19: Smart Machines Dashboards and Alerts Drive Customer Profitability
SMART MACHINES DASHBOARDS AND ALERTS DRIVE CUSTOMER PROFITABILITY STREAMLINED OPERATIONS MAXIMISING ASSET UTILISATION DRIVING SALES GROWTH Real-time Optimising Asset Enhancing sales operations performance for efficiency oversight peak profitability EFFICIENT STOCK MANAGEMENT CUSTOMER BENEFITS PAYMEN
Slide 20: Proven Drinks Management Solution Driving Customer Margins and Profitability
PROVEN DRINKS MANAGEMENT SOLUTION DRIVING CUSTOMER MARGINS AND PROFITABILITY THROUGHPUT SEAMLESS POS INTEGRATION POS SHRINKAGE & PRODUCT MARGINS Pinpoints Integrates with all Identifies POS underperforming leading POS systems discrepancies to lines and brands to for streamlined safeguard sales and o