Kelsian Group Limited · ASX:KLS
Kelsian — FY2024 Earnings Presentation
31 slides from Kelsian's earnings presentation, Aug 28, 2024
Slide 1: Kelsian Group Limited FY24 Full Year Results
Kelsian Group Limited FY24 Full Year Results Investor Presentation Clint Feuerherdt Managing Director & Group CEO Andrew Muir Group Chief Financial Officer Graeme Legh CEO, All Aboard America! Holdings Inc (‘AAAHI’) 28 August 2024
Slide 2: Introduction to Kelsian
1 Introduction to Kelsian FY24 Full Year Results | Investor Presentation 2
Slide 3: FY24 Full Year Results | Investor Presentation
FY24 Full Year Results | Investor Presentation 3
Slide 4: Strong growth achieved over extended period
Strong growth achieved over extended period FY09 - FY24 Revenue CAGR: 13.8% FY24 No material Strong top-line growth in contracted bus operations, achieved via Sydney expansion contract Regions 3 & 13, 2 & 15, NSW new contract wins, re-tendering success and targeted acquisitions renewals in next two
Slide 5: Buses form compelling solution to drive decarbonisation
Buses form compelling solution to drive decarbonisation International analysis has highlighted a high mode shift in urban passenger transport, alongside vehicle electrification, is needed if we are to stand any chance of limiting global warming to 1.5°C in the long term (Fulton and Reich 2021). Info
Slide 6: FY24 Overview
2 FY24 Overview FY24 Full Year Results | Investor Presentation 6
Slide 7: FY24 financial snapshot
FY24 financial snapshot Record result reflects full year contribution of AAAHI and addition of Sydney bus contracts ________________________ ________________________ Revenue Underlying* EBITDA Up 42.2% on pcp Up 63.9% on pcp $2,016.8m $265.4m The Jackson, Starship Sydney, Captain Cook Cruises, Sydne
Slide 8: FY24 operational & strategic highlights
FY24 operational & strategic highlights • New Sydney bus regions transitioned on time and on budget – Transit Systems now largest operator in Sydney • Major rail replacement projects secured in Perth (LXR) in FY24 and Sydney (Bankstown) to begin in FY25 • Labour availability issues resolved via well
Slide 9: Successful first year of operations in the USA
Successful first year of operations in the USA • AAAHI exceeded expectations during first full year • Integration successfully completed, with the Kelsian USA advisory board established, key management team retained and the addition of two new senior managers to the leadership team • 100% contract r
Slide 10: FY24 Financial Results
4ELSIAN ‘CONNECTING PEOPLE & PL 3 FY24 Financial Results
Slide 11: Summary Profit & Loss Statement
Summary Profit & Loss Statement Solid FY24 growth reflects a full year of AAAHI and new Sydney bus contracts • Contract indexation mechanisms effectively hedged inflation for majority of bus businesses (fuel price, wage inflation, CPI) • Labour availability issues resolved due to well-executed recru
Slide 12: Cashflow
Cashflow Record cash generation to support near term investments __________________________ ___________________________ Gross Operating Cashflow Investing Cashflow* $215.5m $148.5m Net operating cash flow up $17.5m Vessels under construction, hydrogen fuel or 13.6% cell and battery electric buses an
Slide 13: Balance Sheet reflects contract wins and growth investments
Balance Sheet reflects contract wins and growth investments Supports strategic initiatives and growth As at 30 June $m 2024 2023 Variance Cash and cash equivalents 134.5 157.9 (14.9%) • Increased assets and liabilities reflect new Sydney contracts Receivables 204.8 166.9 22.7% • Established wholly o
Slide 14: Banking re-finance completed in May 2024
Banking re-finance completed in May 2024 More than $500 million in available liquidity as at 30 June 2024 $m New Debt Facilities* New debt facilities to support investment and growth 800 710 700 Strong support from new and existing bank group 600 260 3, 4, and 5 year unsecured multi-currency facilit
Slide 15: Valuable portfolio of strategic freehold property assets
Valuable portfolio of strategic freehold property assets Bus Depot Tourism Assets SeaLink Infrastructure Accommodation / Other Freehold property book value* $156.6m Australian Bus • Depots represent strategic long term critical assets • Property values to be further enhanced with investment in elect
Slide 16: Strategic freehold properties recently acquired
Strategic freehold properties recently acquired Depots are integral to operating metropolitan bus networks Newton Depot Adelaide, SA Hoxton Park Depot Melton Depot Sydney, NSW Melbourne, VIC Currently four contracts operated from this site, strategic Currently an integral depot - with multiple contr
Slide 17: FY24 Capex reflects a year of significant investment
FY24 Capex reflects a year of significant investment $148.5 million of capital deployed in FY24 to underpin growth, renew assets and strategic property FY24 Capex - $148.5* million ___ ___________________________________ MARINE & TOURISM - $42.8 million • Kangaroo Island: two new vessels under const
Slide 18: FY25 Capex estimate of ~$185m underpins growth momentum
FY25 Capex estimate of ~$185m underpins growth momentum Over half of FY25 Capex is non-recurring in FY26 FY25 Capex estimate ~ $185* million FY25 investment in growth* _____________________________________________ ______________________________________________________ MARINE & TOURISM ~ $70 million
Slide 19: FY25 expectations
FY25 expectations* Depreciation in FY25 is expected to be approximately ~$117 million • Special Purpose Vehicle (SPV) asset depreciation ~$9.5 million • Right of Use Asset (ROUA) depreciation ~ $25.0 million • Core asset depreciation ~ $82.5 million Total amortisation forecast ~$31.5 million Estimat
Slide 20: FY24 Divisional Performance
4 FY24 Divisional Performance FY24 Full Year Results | Investor Presentation 20
Slide 21: Overview of FY24 Performance | Australian Bus
Overview of FY24 Performance | Australian Bus Growth reflects addition of new Sydney contracts Financial year ended 30 June $m 2024 2023 Variance • 2HFY24 EBITDA margin was 12.0% compared to 10.8% in Revenue 1,036.0 845.0 22.6% 1HFY24 Direct expenses (863.0) (685.8) 25.8% • Incremental margin improv
Slide 22: Overview of FY24 Performance | International
Overview of FY24 Performance | International AAAHI Financial year ended 30 June $m 2024 2023 Variance • Integration complete • Slight reduction in EBITDA margin from prior period Revenue 634.0 243.4 160.5% reflecting higher proportion of contract services in FY24 (59% Direct expenses (434.0) (168.5)
Slide 23: Overview of FY24 Performance | Marine & Tourism
Overview of FY24 Performance | Marine & Tourism Trading Financial year ended 30 June $m 2024 2023 Variance • Good result off the back of the FY23 record and inclement weather in peak periods (Dec to Feb) Revenue 346.8 329.4 5.3% • Fare increases and dynamic pricing in part offset margin Direct expen
Slide 24: Overview of FY24 Performance | Corporate
Overview of FY24 Performance | Corporate Corporate costs remain flat despite significantly larger and more complex business Capability in place to support and manage a larger and more complex business Financial year ended 30 June $m 2024 2023 Variance Revenue - - Information technology & cyber Direc
Slide 25: Growth, Strategy, Outlook
6 Growth, Strategy, Outlook FY24 Full Year Results | Investor Presentation 25
Slide 26: AAAHI well placed to capitalise on growth opportunities in USA
AAAHI well placed to capitalise on growth opportunities in USA • AAAHI is the scaled service provider in the fast-growing First Class Transportation, Houston, Texas southwest region of the USA • Scale delivers cost and operational efficiencies, provides a platform to deliver organic growth (new cont
Slide 27: Strong pipeline of organic growth opportunities
Strong pipeline of organic growth opportunities Leaders in transitioning contracts, operational excellence and efficiency Liverpool, UK AUS / NZ USA SINGAPORE / UK Currently preparing to bid on contracts for 900 buses out of a possible 10,000 Auckland bus Corporate Liverpool, UK buses coming to mark
Slide 28: FY25 outlook
FY25 outlook • Synergies and efficiencies from integration of Sydney contracts Financial • Bankstown rail replacement from September 2024 Performance •• Continued growth in AAAHI, Singapore recovery Marine & Tourism linked to economic conditions / Illumina potential catalyst • Completion of new KI a
Slide 29: Q&A
‘ELSIAN CONNECTING PEOPLE & PLACES Q&A ay nN “4 9 2 NE i wt 2 BR BAS RB _—
Slide 30: Important notice
Important notice Basis of Preparation, Forward Looking Statements and 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 responsibili
Slide 31: Appendix – Buses as a transportation solution
Appendix – Buses as a transportation solution FY24 Full Year Results | Investor Presentation 31