Ventia Services Group Limited · ASX:VNT

Ventia Services — Investor Presentation (September 2021)

24 slides from Ventia Services's investor presentation, Sep 24, 2021

  1. Slide 1: Presentation to Analysts

    Presentation to Analysts Financial Information | September 2021 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES

  2. Slide 2: Important information and disclaimer

    Important information and disclaimer This document (Presentation) is confidential and provided by Ventia the Limited Parties make any representation or warranty, express or in this presentation contain information that has been derived from Services Group Pty Ltd (Ventia) solely on the basis that yo

  3. Slide 3: Important information and disclaimer continued

    Important information and disclaimer c o n t i n u e d Past performance is not necessarily a guide to future performance. None All dollar values are in AU dollars ($ or A$) unless stated otherwise. covers the historical twelve month periods ended 30 June 2018 (FY18), of Ventia or the Limited Parties

  4. Slide 4: Overview of Ventia

    Overview of Ventia NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES

  5. Slide 5: Company overview

    Company overview Ventia provides essential infrastructure services in Australia and New Zealand across four Sectors Defence & Social Infrastructure Tele- Sector Transport Infrastructure (D&SI) Services (IS) communication Business Units ◼ Defence ◼ Resources & Industrial ◼ Fixed Networks ◼ Roads Tran

  6. Slide 6: Service delivery across Australia and New Zealand

    Service delivery across Australia and New Zealand Diverse portfolio of Maintenance Services delivered across urban, regional and rural communities NT: 5% of CY2020 total revenue Australia and New Zealand footprint1 400+ project sites across Australia & New Zealand 40% of CY2020 total QLD: 14% of CY2

  7. Slide 7: Addressable market for Maintenance Services

    Addressable market for Maintenance Services Ventia operates in a $62.0bn market which is expected to grow at 5.5% from FY2021F to FY2025F1 Estimated addressable market size across Australia and New Zealand Maintenance Services market drivers1 ($bn)1 Transport Population growth Telecommunications FY2

  8. Slide 8: Client and contract profile

    Client and contract profile As a Maintenance Services provider, Ventia has a low contribution from Fixed Price contract profiles. Ventia has client relationships exceeding 30 years Ventia provided services to over 100 clients in CY2020. Average contract renewal rates of > 80%1 since 2016 Overview of

  9. Slide 9: COVID-19 and Ventia's response

    COVID-19 and Ventia’s response Whilst COVID-19 and the related restrictions are impacting a number of industry segments within the Maintenance Services market, this has been largely offset by demand from other industry segments Impact on the industry1 Impact on Ventia and Ventia’s response Ventia’s

  10. Slide 10: Pro forma financials

    Pro forma financials NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES

  11. Slide 11: Basis of preparation and forecast assumptions

    Basis of preparation and forecast assumptions Pro forma financials include adjustments to reflect Ventia’s business composition, capital structure post-IPO, and other pro forma adjustments. Forecast financial information has been prepared making a number of specific and general assumptions Basis of

  12. Slide 12: Financial trends

    Financial trends Revenue and earnings have remained stable, converting to ~80-90% Operating Cash Flows Work in hand1 (pro forma, $bn) provides Total revenue (pro forma, $m) is stable EBITDA and EBITDA Margin (pro forma, forward earnings visibility and resilient to COVID-19 $m / %) are stable and gro

  13. Slide 13: Work in hand profile provides forward earnings visibility

    Work in hand profile provides forward earnings visibility Ventia has a high degree of forward earnings visibility from its work in hand1 profile Work in hand1 profile (pro forma, $bn) Work in hand1 by Sector, as Recent public announcements in 2021 at 31 July 2021 Government 15.5 Transport 5+ year co

  14. Slide 14: Revenue

    Revenue A forecast 10% increase in CY2022F total revenue reflects growth across all reporting segments1, underpinned by work in hand coverage of 80% Pro forma total revenue ($m) 4,942.6 ◼ Historical (CY2018 – CY2020) drivers 4,754.5 4,803.8 4,591.9 4,501.7 – Relatively steady, with declining revenue

  15. Slide 15: EBITDA

    EBITDA Ventia’s EBITDA is forecast to grow in CY2021F and CY2022F. Increased services revenue and leverage over cost base in CY2022F underpins margin improvement Pro forma EBITDA ($m) and EBITDA Margin (%) ◼ Historical drivers (CY2018 – CY2020) – Stable between CY2018 and CY2020 – Reflects growth in

  16. Slide 16: Defence & Social Infrastructure

    Defence & Social Infrastructure The D&SI segment has delivered steady historical growth, with recent contract wins and anticipated volume increases expected to drive services revenue growth of 11% in CY2022F Defence & Social Infrastructure Tele- Transport Infrastructure Services communications Pro f

  17. Slide 17: Infrastructure Services

    Infrastructure Services The IS segment has demonstrated steady historical EBITDA growth, which is forecast to continue in CY2021F and CY2022F Defence & Social Infrastructure Tele- Transport Infrastructure Services communications Pro forma historical and forecast financial performance ◼ Historical dr

  18. Slide 18: Telecommunications

    Telecommunications Following completion of the initial fibre network build, the Telecommunications segment is expected to grow in CY2022F driven by new contracts commenced in CY2021F Defence & Social Infrastructure Tele- Transport Infrastructure Services communications Pro forma historical and forec

  19. Slide 19: Transport

    Transport The Transport segment is forecast to achieve 5% revenue growth in CY2022F as well as continued margin uplift driving EBITDA growth Defence & Social Infrastructure Tele- Transport Infrastructure Services communications Pro forma historical and forecast financial performance ◼ Historical dri

  20. Slide 20: Net Corporate Costs

    Net Corporate Costs The reduction in Net Corporate Costs between CY2018 and CY2022F reflects operational improvements, cost savings and increased cost recharges Pro forma Net Corporate Costs ($m)1 ◼ Historical drivers – $26.8m decrease in CY2019 reflects the implementation of 94.7 operational improv

  21. Slide 21: Summary P&L

    Summary P&L Ventia’s P&L reflects growth in both NPAT and NPATA over the historical and forecast period Pro forma historical and forecast consolidated statement of profit or loss Pro Forma Historical Pro Forma Forecast $ millions CY2018 CY2019 CY2020 CY2021F CY2022F ◼ Reduction in depreciation refle

  22. Slide 22: Cash flows

    Cash flows Operating Cash Flow Conversion remains stable at +80%. Capital intensity is low (as measured by Capital Expenditure / total revenue) Pro forma historical and forecast cash flows Pro Forma Historical Pro Forma Forecast $ millions CY2018 CY2019 CY2020 CY2021F CY2022F ◼ Stable historical Ope

  23. Slide 23: Capital structure at IPO

    Capital structure at IPO At IPO Ventia will have net total indebtedness equal to 2.0x CY2021F EBITDA and 1.8x CY2022F EBITDA Pro forma consolidated indebtedness as at 30 June 2021 Pro forma ◼ Net total indebtedness as at 30 June 2021 (including lease Before Offer proceeds Net impact of reflecting li

  24. Slide 24: Thank you

    Thank you NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES

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