Kelsian Group Limited · ASX:KLS
Kelsian — H1 FY2024 Earnings Presentation
27 slides from Kelsian's earnings presentation, Feb 28, 2024
Slide 1: FY24 Half Year Results Investor Presentation
Kelsian Group Limited FY24 Half Year Results Investor Presentation Clint Feuerherdt Andrew Muir Managing Director & Group Group Chief Financial Officer Chief Executive Officer 28 February 2024 © Kelsian Group Limited | 1HFY24 Half Year Results | Investor Presentation
Slide 2: 1. Introduction
1. INTRODUCTION 2. 1HFY24 Overview 3. 1HFY24 Financial Results 4. 1HFY24 Divisional Performance 5. Growth Strategy & Outlook © Kelsian Group Limited | 1HFY24 Half Year Results | Investor Presentation
Slide 3: Introduction to Kelsian
Introduction to Kelsian A diversified global business with a majority of highly defensive, long-term, government-backed, service contracts $1.5 billion KELSIAN ANNUALISED CONTRACTED WELL HEDGED COST BASE IN AN HIGHLY SCALABLE LEADERS IN DECARBONISATION OPERATIONAL REVENUE INFLATIONARY ENVIRONMENT NU
Slide 4: Overview of business divisions
Overview of business divisions A diversified global business, with a majority of highly defensive, long-term, government-backed, service contracts AUSTRALIAN BUS INTERNATIONAL BUS MARINE & TOURISM Public transport services under contract to Public transport services under contract to Six geographica
Slide 5: Kelsian is Australia's sustainable transport leader
Kelsian is Australia’s sustainable transport leader Public transport provides a compelling solution to reducing transport emissions © Kelsian Group Limited | 1HFY24 Half Year Results | Investor Presentation 5
Slide 6: 2. 1HFY24 Overview
1. Introduction 2. 1HFY24 OVERVIEW 3. 1HFY24 Financial Results 4. 1HFY24 Divisional Performance 5. Growth Strategy & Outlook © Kelsian Group Limited | 1HFY24 Half Year Results | Investor Presentation 6
Slide 7: 1HFY24 financial snapshot
1HFY24 Result 1HFY24 financial snapshot Result reflects integration of AAAHI and addition of new Sydney • AAAHI integration now complete metropolitan bus contracts • Further investment to capitalise on organic _____________________________ _____________________________ Result reflects benefit growth
Slide 8: 1HFY24 operational & strategic highlights
1HFY24 operational & strategic highlights Solid progress on delivering organic growth strategy and successful integration of recent acquisitions • Successful commencement and integration of new Sydney bus contract Regions 2, 13 and 15 • Labour availability addressed due to well executed recruitment,
Slide 9: Expanded footprint; now the largest bus operator in Sydney
Expanded footprint; now the largest bus operator in Sydney Successful integration of new contracts demonstrating experience and operational excellence As at 31 December 2023 © Kelsian Group Limited | 1HFY24 Half Year Results | Investor Presentation 9
Slide 10: 3. 1HFY24 Financial Results
1. Introduction 2. 1HFY24 Overview 3. 1HFY24 Financial Results 4. 1HFY24 Divisional Performance 5. Growth Strategy & Outlook © Kelsian Group Limited | 1HFY24 Half Year Results | Investor Presentation Whitsunday Islands Qld
Slide 11: Summary Profit & Loss Statement
Summary Profit & Loss Statement Solid 1HFY24 result reflects AAAHI acquisition and new Sydney contracts • Strong revenue growth reflects AAAHI contribution and new Sydney contracts • Contract indexation mechanisms effectively hedge inflation for the majority of bus businesses (fuel price, wage infla
Slide 12: Cashflow
Cashflow Underlying business continues to generate strong cashflow __________________________ ___________________________ Operating Cashflow Investing Cashflow* $60.3m $56.1m Net operating cash flow up $23.4m Vessels under construction, hydrogen fuel or 63.4% cell and battery electric buses and char
Slide 13: Balance Sheet reflects investment in growth
Balance Sheet reflects investment in growth Supports strategic initiatives and growth • Balance Sheet strength supported organic growth and capital investment • Disciplined approach to capital management • Gearing ratio (net debt divided by (net debt + equity)) of 44.2% increased from 39.8% • $132 m
Slide 14: Proforma balance sheet - adjusted for ring fenced government backed contracted assets
Proforma balance sheet - adjusted for ring fenced government backed contracted assets Ring fenced financing facilities provide flexibility and optionality • Some Australian state government public transport contracts provide all depots and bus assets, e.g. Adelaide and Perth • State government contr
Slide 15: Capex reflects a year of record investment
Capex reflects a year of record investment $56.1 million of capital deployed in 1HFY24 to underpin growth and renew assets 1HFY24 Capex Actual 2HFY24 Capex Forecast $56.1* million ~ $88* million ______________________________________ ______________________________________ MARINE & TOURISM - $20.9 mi
Slide 16: Kangaroo Island Case Study – investment for the future
Kangaroo Island Case Study – “investment for the future” $57 million is being spent on two new vessels, significantly increasing capacity for the new 25-year contract from FY25 Existing licence 25-year exclusive licence from FY25 __________________________________ ___________________________________
Slide 17: 4. 1HFY24 Divisional Performance
1. Introduction 2. 1HFY24 Overview 3. 1HFY24 Financial Results 4. 1HFY24 DIVISIONAL PERFORMANCE 5. Growth Strategy & Outlook © Kelsian Group Limited | 1HFY24 Half Year Results | Investor Presentation 17 Transit Systems VIC
Slide 18: Overview of 1HFY24 performance | Australian Bus
Overview of 1HFY24 performance | Australian Bus Result reflects defensive nature of contracts, providing a natural hedge in an inflationary environment • Strong revenue growth reflects addition of new Sydney contracts and contract indexation mitigating inflation • Start up and integration costs for
Slide 19: Overview of 1HFY24 performance | International Bus
Overview of 1HFY24 performance | International Bus First full period of contribution for AAAHI AAAHI • Integration complete • Strong growth continued across all businesses • Margin maintained and costs well managed International Bus • Significant investment in fleet expansion (+46 motor coaches) and
Slide 20: Overview of 1HFY24 performance | Marine & Tourism
Overview of 1HFY24 performance | Marine & Tourism Domestic demand underpinned continued solid growth • Result measured against a very strong performance in 1HFY23 • Domestic tourism demand largely maintained with evidence of deteriorating consumer sentiment from November Marine & Tourism • Gradual r
Slide 21: Overview of 1HFY24 performance | Corporate
Overview of 1HFY24 performance | Corporate Building capability to manage larger more complex business Information technology & cyber People • Appointment of Group CIO • Training & development • IT systems & software • Business development Corporate • Cyber prevention solutions • Group Enterprise Ris
Slide 22: 5. Growth Strategy & Outlook
1. Introduction 2. 1HFY24 Overview 3. 1HFY24 Financial Results 4. 1HFY24 Divisional Performance 5. GROWTH STRATEGY & OUTLOOK © Kelsian Group Limited | 1HFY24 Half Year Results | Investor Presentation Magnetic Island, QLD
Slide 23: 2HFY24 focus areas
2HFY24 focus areas Capitalise on growth opportunities and benefits of scale Operational • Capitalise on strong momentum in AAAHI • Further integration of Sydney contracts to extract synergies and efficiencies and mobilise new Bankstown rail replacement services • Leverage scale advantages to drive r
Slide 24: Strong pipeline of growth opportunities (organic & acquisitions)
Strong pipeline of growth opportunities (organic & acquisitions) Leaders in transitioning contracts, operational excellence and efficiency AUS / NZ USA SINGAPORE / UK Auckland bus Corporate (incl. LNG) Singapore bus Melbourne bus Government Manchester bus SHORT Education & Resources Education TERM 1
Slide 25: Executive summary
Executive summary Purpose: To be a world leader in delivering essential journeys through safe, intelligent and sustainable transport solutions, while creating brilliant customer experiences • Diversified businesses and geographies create a resilient business model • Long-term, low-risk, government b
Slide 26: Q&A
Q&A © Kelsian Group Limited | 1HFY24 Half Year Results | Investor Presentation 26
Slide 27: Important notice
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 under