Ventia Services Group Limited · ASX:VNT
Ventia Services — Investor Presentation (September 2021)
24 slides from Ventia Services's investor presentation, Sep 24, 2021
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
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
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
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
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
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
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
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
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
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
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
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
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, $bn) Work in hand1 by Sector, as Recent public announcements in 2021 at 31 July 2021 Government 15.5 Transport 5+ year co
Slide 14: Revenue
Revenue A forecast 10% increase in CY2022F total revenue reflects growth across all reporting segments1, underpinned by work in hand coverage of 80% Pro forma total revenue ($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
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 ($m) and EBITDA Margin (%) ◼ Historical drivers (CY2018 – CY2020) – Stable between CY2018 and CY2020 – Reflects growth in
Slide 16: Defence & Social Infrastructure
Defence & Social Infrastructure The D&SI segment has delivered steady historical growth, with recent contract wins and anticipated volume increases expected to drive services revenue growth of 11% in CY2022F Defence & Social Infrastructure Tele- Transport Infrastructure Services communications Pro f
Slide 17: Infrastructure Services
Infrastructure Services The IS segment has demonstrated steady historical EBITDA growth, which is forecast to continue in CY2021F and CY2022F Defence & Social Infrastructure Tele- Transport Infrastructure Services communications Pro forma historical and forecast financial performance ◼ Historical dr
Slide 18: Telecommunications
Telecommunications Following completion of the initial fibre network build, the Telecommunications segment is expected to grow in CY2022F driven by new contracts commenced in CY2021F Defence & Social Infrastructure Tele- Transport Infrastructure Services communications Pro forma historical and forec
Slide 19: Transport
Transport The Transport segment is forecast to achieve 5% revenue growth in CY2022F as well as continued margin uplift driving EBITDA growth Defence & Social Infrastructure Tele- Transport Infrastructure Services communications Pro forma historical and forecast financial performance ◼ Historical dri
Slide 20: Net Corporate Costs
Net Corporate Costs The reduction in Net Corporate Costs between CY2018 and CY2022F reflects operational improvements, cost savings and increased cost recharges Pro forma Net Corporate Costs ($m)1 ◼ Historical drivers – $26.8m decrease in CY2019 reflects the implementation of 94.7 operational improv
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
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
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
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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