Journeo Plc · LSE:JNEO
Journeo — Investor Presentation (June 2016)
28 slides from Journeo's investor presentation, Jun 30, 2016
Slide 1: Shareholder Presentation
Shareholder Presentation 30 June 2016 Shareholder Presentation June 2016 1
Slide 2: Agenda
Agenda 1. Introduction 2. Strategy revisited 3. Fleet Systems: Further consolidation 4. Passenger Systems: Update on Region Services acquisition 5. Group futures Shareholder Presentation June 2016 2
Slide 3: Introduction
1. Introduction Home Introduction “Specialist provider of tailored solutions to the transport community, Solving complex operational requirements both on and off the vehicle” Innovative Design Integration Support Our in‐house design team Specialising in integration, We adopt comprehensive work close
Slide 4: 2 years into a 5-year development plan
2. Strategy revisited 2 years into a 5‐year development plan Managed Services • Support all on Smart vehicle Systems Integrator • Outsource • Broader Portfolio operators support • Unifying Software staff • Strategic • Data Exchange Integrator Acquisitions • Extend to • Point Solutions Connected Flee
Slide 5: Drivers of change
2. Strategy revisited Drivers of change • Systems on and off vehicles • Ever increasing in number, sophistication & data integration requirements • Complexity of estates • Fleets are large, geographically dispersed & built up over many years (average fleet age: 18 yrs. train, 7 yrs. bus) • Informati
Slide 6: Systems & technologies
2. Strategy revisited Systems & technologies Roadside Traveller Traffic lights, Passenger Info Wi‐Fi, Infotainment, Apps GPS, Network & communications Vehicle Back office Displays, CCTV, Behaviour, Operational, Voice‐comms, Location, Ticketing, Driver UI Data Exchange, RCM Shareholder Presentation J
Slide 7: Systems & technologies
2. Strategy revisited Systems & technologies Shareholder Presentation June 2016 7
Slide 8: Service provider requirement
2. Strategy revisited Service provider requirement • A new position opening Capability Experts in multiple • Increasing complexity in terms of systems number of systems and their critical cost of failure. • To act as the conduit for world class products onto vehicles and provide support over their T
Slide 9: Business model
2. Strategy revisited Business model • Specialist provider of tailored solutions to the transport community, solving complex operational requirements. • The Fleet Systems team is on‐vehicle and the Passenger Systems team deliver our off‐vehicle solutions. • We compete by striving to offer better int
Slide 10: Strategy revisited: Key messages
2. Strategy revisited Home Strategy revisited: Key messages • Add value by creating better solutions with reduced costs. • Apply these skills to carefully selected niche markets where we can achieve significant profitable market share. • Based on an open system philosophy using global scale products
Slide 11: Fleet Systems: Further consolidation
3. Fleet Systems Fleet Systems : Further consolidation • Breakthrough rail orders • In‐carriage CCTV; building on Forward Facing CCTV solution • Platform and infrastructure CCTV at a network of rail stations • All accreditations retained • Initial UK evaluations of advanced integrated on‐vehicle sol
Slide 12: Fleet Systems: Further consolidation
3. Fleet Systems Fleet Systems : Further consolidation Revenue Gross Profit Underlying profit ‐5% 9,027 +8% 3,555 +£150k 213 8,601 3,286 63 2014 2015 2014 2015 2014 2015 £'000 £'000 £'000 Shareholder Presentation June 2016 12
Slide 13: Fleet Systems: Strategic Goals
3. Fleet Systems Home Fleet Systems : Strategic Goals • Secure positive outcomes for contract renewals • Develop new lines of business • Investment in Specialist Vehicle team • Targeting Design and Build opportunities in Rail • Slower than expected progress Shareholder Presentation June 2016 13
Slide 14: Region Services Ltd acquired May 2015
4. Passenger Systems Region Services Ltd acquired May 2015 Specialists in Passenger Information Systems (PIS), software and support • Established 1989 • Based in Coventry, United Kingdom • £4m sales 2014 • 47 people • Market leaders in the UK bus sector • Reputation for providing high quality and ef
Slide 15: Digital signage
4. Passenger Systems Digital signage Hardware Software Services • Display screens with • Content Management • Design, integration embedded media System (CMS) and installation players • Remote health status • Content creation • Environmental reporting • CMS monitoring enclosures • Graphics processing
Slide 16: Strategic and cultural fit
4. Passenger Systems Strategic and cultural fit • Transport Sector • Market leaders in niche area • SMART Integrator • Engineering based • Value for Money • Customer Focused • Senior Team • Reputation Shareholder Presentation June 2016 16
Slide 17: Acquisition rationale
4. Passenger Systems Acquisition rationale Strategy Element Description Diversify Earnings New technology area Real‐Time Passenger Information (RTPI) and ticketing systems New sales arena Off‐vehicle New customers local authorities and PTEs Reduced revenue concentration Largest customer <10% of busi
Slide 18: Acquisition financials
4. Passenger Systems Acquisition financials • Purchase the entire issued share capital of Region Consultants Ltd, Region Services Ltd and RSL Cityspace Ltd (together "RSL Group"). • Original agreed total consideration was £1.3m • £1.1m in cash, funded from the Company's existing cash resources • £0.
Slide 19: Growth potential
4. Passenger Systems Growth potential • Increase market share • Broaden offering • PA, help points etc. • Adjacent niches • Rail, tram • Geographic • Scandinavia • France • Middle East • South Africa Shareholder Presentation June 2016 19
Slide 20: Synergies & economies of scale
4. Passenger Systems Synergies & economies of scale Consultative design By getting to know what the customer needs, and what they hope to achieve, we supply solutions that are not only best‐of‐breed, Fleet Systems but best for the customer • Bus Integrated solutions We aim to offer a rationalised in
Slide 21: Passenger Systems
4. Passenger Systems Home Passenger Systems Revenue Gross Profit Underlying profit 3,631 49 1,911 2014 2015 2014 2015 2014 2015 £'000 £'000 £'000 Shareholder Presentation June 2016 21
Slide 22: The Group today
5. Group futures The Group today Fleet systems Passenger systems CCTV CCTV Passenger Information Screens • Forward‐facing (FFCCTV) • Complete range of solutions available • Broadcast screens • In‐carriage/saloon Passenger counting • Interactive terminals • Driver platform view (DOO) • Passenger Anal
Slide 23: Financial highlights FY15
5. Group futures Financial highlights FY15 • Sales increased 36% from £9m to £12.2m • Goodwill impairment of £4.3m relating to acquired • Gross margins increased from 36% to 45% goodwill in 21st Century Technology Solutions Ltd from 2005, reflecting previously announced downturn in • Underlying prof
Slide 24: Risks and possible Brexit impact
5. Group futures Risks and possible Brexit impact Category Risk Brexit impact Dependence on major Currently the Fleet Systems segment has a high dependence on Increased risk; particularly with a small number of customers who are of a far greater scale than inflation and uncertainty delaying customer
Slide 25: April RNS & Sensitivities
5. Group futures April RNS & Sensitivities “Trading during the first three months of 2016 has however been slower than expected with orders from two large fleet customers weighted more towards the second half than originally anticipated and management have initiated a programme of remedial action to
Slide 26: Reducing Costs
5. Group futures Reducing Costs • Finance • Fleet systems finance department closed, creating one finance function in Coventry • Logistics • Fleet systems stock functions closed, moving to one logistics centre in Coventry • Purchasing • Consolidated purchasing into Coventry • Buildings • Croydon bui
Slide 27: Green Shoots
5. Group futures Home Green Shoots • Fleet Systems • Remote Condition Monitoring (RCM) becoming important part of Fleet offering • “Journeo” RCM unit developed in‐house • Integration with fleet operators third party management systems • First fully digital systems with no hard disk drive and full cl
Slide 28: 21st Century Technology plc
21st Century Technology plc Connected systems for connected journeys Shareholder Presentation June 2016 28