Kelly Partners Group Holdings Ltd. · ASX:KPG
Kelly Partners — Non-Deal Roadshow (March 2019)
27 slides from Kelly Partners's roadshow presentation, Mar 13, 2019
Slide 1: 1H19 Roadshow Presentation
For personal use only + Kelly Partners Group Holdings Limited (KPGH) 1H19 Roadshow Presentation ASX: KPG PRESENTED BY Brett Kelly, CEO and Executive Chairman Pauline Michelakis, CFO and Executive Director March 2019 Kelly Partners Group Holdings Limited kellypartnersgroup.com.au
Slide 2: Disclaimer
Disclaimer + For personal use only SUMMARY INFORMATION FORWARD LOOKING STATEMENTS This document has been prepared by Kelly Partners Group Holdings This document contains certain “forward-looking” statements. Forward-looking Limited ACN 124 908 363 (Company). This document contains information in sta
Slide 3: Result Highlights
For personal use only +Result Highlights
Slide 4: 1H19 Financial Highlights
1H19 Financial Highlights + For personal use only % % Consolidated 1H19 $m Attributed 1H19 $m change(1) change(1) Revenue 19.7 2.6% EBITDA 4.7 (2.1%) EBITDA 2.0 (1.4%) NPATA 3.6 (2.8%) NPATA 1.3 6.1% EBITDA Margin 23.9% (1.0%) EPSA (cps) 2.8 4.4% FY19 Guidance Underlying NPATA Attributable to Shareh
Slide 5: Operational Highlights
Operational Highlights + For personal use only • $19.7m revenue, up 2.6% from 1H18 • 10% ($1.4m) underlying revenue growth excluding Sydney CBD & Tax Consulting • 17 of 22 businesses recorded higher revenue for 1H19, compared to 1H18 • Sydney CBD reset of recurring revenue post earn out completion •
Slide 6: Sydney CBD - Deep Dive (100% basis)
Sydney CBD - Deep Dive (100% basis) + For personal use only EXPECTED AT POST 2 YEAR ACQUISITION EARN-OUT GO FORWARD 1 JAN 2017 1 JAN 2019 Full K+P Revenue $10.0m $8.0m management control Successful EBITDA multiple 2.8x 2.6x succession of operating partners $11.0m1 $8.6m Growing Revenue Acquisition P
Slide 7: Business Overview
For personal use only +Business Overview
Slide 8: Kelly+Partners Key Statistics
Kelly+Partners Key Statistics + For personal use only 15 22 LOCATIONS BUSINESSES 41 250 OPERATING TOTAL TEAM PARTNERS 42 20 AVERAGE AGE OF ACQUISITIONS OPERATING COMPLETED SINCE BUSINESS OWNERS INCEPTION
Slide 9: Timeline
For personal use only + Timeline
Slide 10: Track Record of Growth
Track Record of Growth + For personal use only Offices Revenue 18 $45 $41.2 $39.5 16 15 $40 14 15 13 13 $35 26% $30.2 offices CAGR 12 $30 10 10 9 $25 $21.1 $m $20.3 8 7 $20 $17.2 6 6 5 $15 $13.0 $10 $8.4 4 2 $5 0 $0 2012 2013 2014 2015 2016 2017 2018 2019F 2012 2013 2014 2015 2016 2017 2018 2019F
Slide 11: Operating Business Model
Operating Business Model + For personal use only
Slide 12: Financial Performance
+Financial Performance For personal use only
Slide 13: 1H19 Statutory Income Statement
1H19 Statutory Income Statement + 1H191 1H181 % 1H191 1H181 % For personal use only Consolidated Attributed ($m) ($m) Change ($m) ($m) Change Revenue 19.7 19.2 2.6% Expenses 15.0 14.4 4.1% EBITDA 4.7 4.8 (2.1%) EBITDA 2.0 2.1 (1.4%) Depreciation 0.2 0.2 7.1% Depreciation 0.1 0.1 24.0% EBIT 4.5 4.6 (
Slide 14: KPG 1H19 Statutory EBITDA Bridge
KPG 1H19 Statutory EBITDA Bridge + For personal use only KPG Consolidated - 1H18 to 1H19 Statutory EBITDA Bridge $7.0 $1.0 $6.0 $0.2 $0.2 $0.9 $5.0 $0.2 $0.1 $4.8 $0.2 $4.7 $4.0 $m $3.0 $2.0 $1.0 $0.0 1H18 Statutory Existing Businesses New Acquisitions Non Recurring Items Kelly Partners Kelly Partne
Slide 15: 1H19 Cashflow
1H19 Cashflow + • Cashflow remains strong For personal use only • Operating cashflow up 73% in 1H19 • Free Cashflow up 35% in 1H19 • EBITDA to Free Cashflow conversion of 82% in 1H19 • Timing of dividend payment brought forward to last day of the quarter • Lockup (debtor days and WIP) improved from
Slide 16: 1H19 Balance Sheet
1H19 Balance Sheet + For personal use only • Consolidated 1H19 net debt increased primarily due to acquisitions completed • 1H19 net debt attributable to KPGH shareholders reduced slightly • Debt associated with acquisitions sits within the operating businesses • Acquisition debt capacity $10m+ acro
Slide 17: Outlook and Future Growth
+Outlook and Future Growth For personal use only
Slide 18: Outlook
Outlook + FINANCIALS For personal use only • FY19 guidance flat on underlying NPATA on previous year • Significantly stronger 2H expected as 1H matters negatively impacting 1H not expected to recur • Key 2H turnaround from Sydney CBD • Continuing solid growth in existing business in 2H • Full 6 mont
Slide 19: FY19 Guidance
FY19 Guidance + For personal use only KPG Attributed - 1H19 to FY19 Underlying NPATA Bridge $6.0 $0.1 $0.2 $5.0 $0.2 $0.3 $0.1 $0.6 $0.7 $4.3 $4.0 $2.5 $m $3.0 $2.0 $1.3 $1.0 $0.0 1H19 NPATA Existing Kelly Partners Contributions from Kelly Partners Amortisation of Non Recurring Headco Costs Tax Paya
Slide 20: Market Opportunity
For personal use only + Market Opportunity
Slide 21: Year Growth Strategy
5 Year Growth Strategy + ORGANIC NETWORK EXPANSION For personal use only EXISTING NEW TARGET GROUP ORGANIC ACQUISITION – ACQUISITION – SERVICES GROUP GROWTH TUCK-IN OR GREENFIELD MARQUEE 2+ tuck-ins per year 5 new sites 5 new sites 8 existing sites $2.0m+ revenue each $2.0m revenue target $1.0m+ rev
Slide 22: Acquisition: Tuck-in & Marquee
Acquisition: Tuck-in & Marquee + For personal use only Tuck-In (8 existing sites) Marquee (5 new sites)
Slide 23: Appendix
For personal use only +Appendix
Slide 24: NPAT to Operating Cashflow Reconciliation
NPAT to Operating Cashflow Reconciliation + For personal use only 1H19 1H18 $’000 $’000 Profit after income tax 3,285 3,410 Depreciation and amortisation 543 510 Employee shares issued - non cash - 220 Change in assets and liabilities: Dec/(inc) trade and other receivables 469 801 Dec/(inc) accrued
Slide 25: Reported NPATA to Underlying NPATA Reconciliation
Reported NPATA to Underlying NPATA Reconciliation + For personal use only FY19 Full Year 1H19 1H18 FY18 Reconciliation of attributed NPAT/NPATA ($m) Guidance $m $m $m $m Reported attributed NPAT 1.1 1.0 4.4 3.8 Non-recurring items: Add: Restructuring costs - 0.2 0.4 0.1 Shares issued to employees un
Slide 26: Definitions
Definitions + For personal use only EBIT = Earnings Before Interest And Tax EBITDA = EBIT before Depreciation and Amortisation EPSA = Earnings per Share before Amortisation NPAT = Net Profit After Tax NPATA = Net Profit After Tax and before Amortisation of Customer Relationship Intangibles ROI = Ret
Slide 27: Thank you
For personal use only + Thank you March 2019 Kelly+Partners Group Holdings Limited kellypartnersgroup.com.au
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