Vianet Group Plc · LSE:VNET
Vianet — H1 2024 Earnings Presentation
21 slides from Vianet's earnings presentation, Dec 12, 2023
Slide 1: Interim Results Presentation
INTERIM RESULTS PRESENTATION Period Ended 30 September 2023 DECEMBER 2023 James Dickson Mark Foster Chairman & CEO CFO
Slide 2: What We Do At A Glance
WHAT WE DO AT A GLANCE Transforming Business Performance: Providing Actionable Insights from Critical Data Analysis UNATTENDED RETAIL DIVISION HOSPITALITY DIVISION Comprehensive vending management Market leading comprehensive beverage system and contactless payment solution and bar management system
Slide 3: Robust Financial Performance in Challenging Economic Conditions
ROBUST FINANCIAL PERFORMANCE IN CHALLENGING ECONOMIC CONDITIONS £7.19M REVENUE £1.29m OPERATIONAL CASH GENERATION (H1 2023: £7.18m) POST-WORKING CAPITAL (H1 2023: £0.71M) £6.28m RECURRING REVENUE 87% OF TURNOVER 105% EBITDA CASH CONVERSION (H1 2023: 86%) 69% GROSS MARGIN NET DEBT REDUCED TO £2.09M +
Slide 4: Strategic Goals for 2025: Driving Forward Vision and Growth
STRATEGIC GOALS FOR 2025: DRIVING FORWARD VISION AND GROWTH ESG RETAIN AND ATTRACT HIGHLY CONTINUED RECOGNITION FROM ENGAGED TALENT AND TEAMS CUSTOMERS AND STAKEHOLDERS AS ENABLING SUSTAINABILITY > 100,000 VENDING CONNECTIONS / >14,000 UK & EUROPE HOSPITALITY SITES ANNUAL REVENUE > £25M / ARR > £18M
Slide 5: Investment Case
INVESTMENT CASE INTELLIGENT VENDING MACHINE LEVERAGING ACCELERATING STRONG RECURRING REVENUE MARKET FORECAST TO BE $37.3bn GROWTH DRIVERS: EARNINGS VISIBILITY BY 2032 (CAGR 13.4%) MARGIN EXPANSION Source: Future CONTACTLESS PAYMENT Markets Insight Report UNATTENDED RETAIL REMOTE ASSET MANAGEMENT DAT
Slide 6: On Track to Deliver Sustained Growth
ON TRACK TO DELIVER SUSTAINED GROWTH HEALTHY PIPELINE & SOLID REVENUE BASE ENSURING RECURRING GROWTH SALES PIPELINE ACCELERATING PRODUCTS ALIGNED WITH LARGE-SCALE • NEW CONTRACTS • STRATEGIC FORECOURT ENTRY USA/UK MARKETS • 3G NETWORK TRANSITION • NEW VERTICALS DATA DEMAND FUELLING CONTACTLESS STRAT
Slide 7: Smart Machines Dashboards and Alerts Drive Customer Profitability
SMART MACHINES DASHBOARDS AND ALERTS DRIVE CUSTOMER PROFITABILITY STREAMLINED OPERATIONS MAXIMISING ASSET UTILISATION DRIVING SALES GROWTH Real-time Optimising Asset Enhancing sales operations performance for efficiency oversight peak profitability EFFICIENT STOCK MANAGEMENT CUSTOMER BENEFITS PAYMEN
Slide 8: Good Momentum in Smart Machines Despite Delays Due to MNO 3G Switch Off
GOOD MOMENTUM IN SMART MACHINES DESPITE DELAYS DUE TO MNO 3G SWITCH OFF TAILWINDS FROM DELAYS 6% ESTATE GROWTH IN 3G TRANSITION Management Platform to 56,000 DEVICES DRIVING H2 SALES GROWTH • Service module - Jan 2023 • Finance module - Jan 2024 77% RECURRING REVENUES • Customer migrations complete
Slide 9: Significant Forecourt Pipeline with Partner Suresite
SIGNIFICANT FORECOURT PIPELINE WITH PARTNER SURESITE FOLLOWING H1 GROUNDWORK CUSTOMER A SURESITE PROSPECT B 800 DEVICE ORDER SECURED INITIAL 200 DEVICE ORDER >1,000 DEVICE PROPOSAL 6-month rollout starting Dec 23 > 200 INDEPENDENT CUSTOMERS MNO 3G SWITCH OFF URGENCY 6-month rollout starting Dec 23 P
Slide 10: Proven Drinks Management Solution Driving Customer Margins
PROVEN DRINKS MANAGEMENT SOLUTION DRIVING CUSTOMER MARGINS AND PROFITABILITY THROUGHPUT SEAMLESS POS INTEGRATION POS SHRINKAGE & PRODUCT MARGINS Pinpoints Integrates with all Identifies POS underperforming leading POS systems discrepancies to lines and brands to for streamlined safeguard sales and o
Slide 11: UK Hospitality: Resilient Core and Robust Growth Outlook
UK HOSPITALITY : RESILIENT CORE AND ROBUST GROWTH OUTLOOK SOLID UK INSTALLED BASE - NOW c. 9,700 PUBS • Sales of 105 new system sales; pub closure rate decreasing. • Secure long-term stability with 2 new and 3 renewals BMI INTEGRATION EXTENDS • Data driven digital transformation stimulating demand M
Slide 12: Strategic Acquisition of Beverage Metrics for Initial Consideration of 700K Shares
STRATEGIC ACQUISITION OF BEVERAGE METRICS (‘BMI’) FOR INITIAL CONSIDERATION OF 700K SHARES COMPREHENSIVE, SCALABLE, AND PROVEN ON-PREMISE DRINKS MANAGEMENT SOLUTION INSTANT CONFIGURABLE DASHBOARD – EVERYTHING A MANAGER NEEDS IN 30 SECONDS FINANCIAL DATA DRIVEN – POUR COST, POS LOSS, MARGIN ANALYSIS,
Slide 13: USA Addressable Market - 382K Licensed Premises Across Four Key Segments
USA ADDRESSABLE MARKET - 382K LICENSED PREMISES ACROSS FOUR KEY SEGMENTS Total Outlets (K) 100 222 84 55 21 382 80 60 187 81 39 11 318 40 20 35 16 10 64 0 3 (%) Restaurant Bar/Club Recreation/Entertainment Hotel Total Small Chain or Independent (1-10 Units) Large Chain (11 or More Units) 13
Slide 14: Beverage Metrics Tracking to Establish a Successful US Business
BEVERAGE METRICS TRACKING TO ESTABLISH A SUCCESSFUL US BUSINESS PROPOSITION PARTNER A CUSTOMER A TYPICAL ROI IS 3-6 MONTHS AUTO ORDER/INVOICE/RECEIVE FRANCHISE TECHNOLOGY STACK DRIVES PERFORMANCE & INTEGRATED E2E DRINKS > 100 SITE OPPORTUNITY PRODUCTIVITY MANAGEMENT ECOSYSTEM BEER & INVENTORY SELF F
Slide 15: Sales Resilient with Operating Profit Growth
SALES RESILIENT WITH OPERATING PROFIT GROWTH Unaudited (£'000s) H1/22 H1/23 H1/24 Turnover 6,340 7,181 7,194 Gross Profit 4,034 4,607 4,991 GP % 63.6% 64.2% 69.4% Operating Expenses(a) -3,215 -3,397 -3,694 Operating Profit/(Loss)(b) 819 1,210 1,297 OP % 12.9% 16.9% 18.0% PBT/(LBT) - Pre Exceptionals
Slide 16: Gross Profit Growth Underpinned by Strong Recurring Revenues
GROSS PROFIT GROWTH UNDERPINNED BY STRONG RECURRING REVENUES H1 2022 (£'000's) H1 2023 (£'000's) H1 2024 (£'000's) Smart Smart Smart Smart Smart Smart Zones Machines Zones Machines Zones Machines Turnover 3,715 2,625 4,175 3,006 4,144 3,050 Gross Profit 2,565 1,469 3,124 1,489 3,314 1,698 GP % 69.0%
Slide 17: Robust Cash Flow Driving Business Expansion and Positive Working Capital
ROBUST CASH FLOW DRIVING BUSINESS EXPANSION AND POSITIVE WORKING CAPITAL H1/22 H1/23 H1/24 Cash Flow £'000 £'000 £'000 Operating Loss (237) (29) (72) Depreciation 244 243 273 Amortisation 1,050 1,170 1,042 Net Operational Cash Inflow pre-WC 1,057 1,384 1,243 Movement in WC 306 (716) 26 Net Operation
Slide 18: Strong Balance Sheet and Enhanced Debt Repayment Profile
STRONG BALANCE SHEET AND ENHANCED DEBT REPAYMENT PROFILE March 2022 Sept 2022 March 2023 Sept 2023 Fixed Assets 27,094 26,862 26,650 26,744 Intangible 23,832 23,597 23,280 23,495 Property Plant equipment 3,262 3,265 3,370 3,249 Net Current Assets 914 705 1,783 3,843 Stock 1,573 1,846 2,276 2,373 Deb
Slide 19: Clear Path to Accelerated Growth and Enhanced Earnings
CLEAR PATH TO ACCELERATED GROWTH AND ENHANCED EARNINGS Tapping into large markets riding Unattended retail division tailwinds from tech adoption, data expanding customer base analytics, and cashless transition. in existing and new sectors. Hospitality division Customer centric commercial is expandin
Slide 20: Questions?
QUESTIONS? VIANET 20
Slide 21: Awards, Accreditations & Customer Validation
AWARDS, ACCREDITATIONS & CUSTOMER VALIDATION “Delivering a quality coffee solution efficiently is vital to “The data and insights Vianet provided us over the first few weeks of our growth plans, and I’m really pleased that we have reopening after the pandemic were invaluable. Given the fast-moving c