Vianet Group Plc · LSE:VNET
Vianet — H1 2023 Earnings Presentation
17 slides from Vianet's earnings presentation, Dec 6, 2022
Slide 1: Interim Results Presentation
INTERIM RESULTS PRESENTATION Period Ended 30 September 2022 DECEMBER 2022 James Dickson, Chairman & CEO, Mark Foster, CFO
Slide 2: What We Do at a Glance
WHAT WE DO AT A GLANCE We capture and process operational data to produce critical insight, analysis and actionable information enabling our customers to transform business performance Comprehensive vending management Market leading comprehensive beverage system and contactless payment solution and
Slide 3: Investment Case
INVESTMENT CASE ACCELERATING STRUCTURAL GOOD EARNINGS VISIBILITY $37.3Bn VENDING MARKET BY 2032 (CAGR 13.4%) GROWTH DRIVERS: STRONG RECURRING INCOME HIGH MARGINS CONTACTLESS PAYMENT UNATTENDED RETAIL REMOTE ASSET MANAGEMENT DEMAND FOR DATA DIGITAL INTEGRATION STRONG ORGANIC GROWTH HIGH CALIBRE COMMI
Slide 4: On Track to Deliver Sustained Growth
ON TRACK TO DELIVER SUSTAINED GROWTH HEALTHY REVENUE RECOVERY IN H1 2023 UNDERPINS STRONG RECURRING REVENUE CUSTOMERS BACK AT SALES PIPELINE ACCELERATING GROWTH 100% BILLING - A SIGNIFICANT NUMBER OF NEW CONTRACTS THIRST FOR DATA CONTACTLESS COMPONENTS IN PLACE DRIVING COMMERCIAL PAYMENT GROWTH WITH
Slide 5: Good Financial Performance Despite Economic Backdrop
GOOD FINANCIAL PERFORMANCE DESPITE ECONOMIC BACKDROP REVENUE £7.18M £1.43M (H1 2022: £1.09m) OPERATIONAL CASH GENERATION PRE-WORKING CAPITAL (H1 2022: £6.34m) 104% EBITDA conversion rate RECURRING REVENUE £6.18M BASIC LOSS PER SHARE 0.27p at 86% OF TURNOVER (H1 2022: Loss 1.15p) (H1 2022: 83%) GROSS
Slide 6: Smart Machines Dashboards and Alerts Drive Customer Profitability
SMART MACHINES DASHBOARDS AND ALERTS DRIVE CUSTOMER PROFITABILITY OPERATIONAL MANAGEMENT INCREASED ASSET UTILISATION DRIVING SALES GROWTH Salesforce Real-time Asset performance performance operations control & profitability management EFFICIENT STOCK MANAGEMENT CUSTOMER BENEFITS PAYMENT & ACCOUNTING
Slide 7: Strong Momentum in SmartMachines
STRONG MOMENTUM IN SMARTMACHINES Investment in sales capacity 24% ESTATE GROWTH and product enhancements expand the pipeline to OVER 52,000 DEVICES Vending management platform launch Nov 2022 • Existing customer migrations will drive additional installations 76% RECURRING REVENUES 44 NEW CONTRACT WI
Slide 8: Proven Drinks Management Solution Driving Customer Margins and Profitability
PROVEN DRINKS MANAGEMENT SOLUTION DRIVING CUSTOMER MARGINS AND PROFITABILITY THROUGHPUT SEAMLESS POS INTEGRATION POS SHRINKAGE & PRODUCT MARGINS Identifies low All leading Highlights POS throughput lines and POS platforms surplus/losses brands based on throughout the day actual dispense POURING WAST
Slide 9: Solid Foundations for Smart Zones Growth
SOLID FOUNDATIONS FOR SMART ZONES GROWTH All c.9,900 sites re-opened at 100% billing • 179 new system sales (H1 2022: 151) • Long term contracts: 4 new and 3 renewals Q4/23 Launch extends hospitality capability and market reach • Economic backdrop and digital transformation driving data demand • Pro
Slide 10: Encouraging Sales Growth with Operating Profit Recovering Towards 20%
ENCOURAGING SALES GROWTH WITH OPERATING PROFIT RECOVERING TOWARDS 20% Unaudited (£’000s) H1/20 H1/21 H1/22 H1/23 Turnover 8,408 4,066 6,340 7,181 Gross Profit 5,692 2,569 4,034 4,607 GP % 67.7% 63.2% 63.6% 64.2% Operating Expenses(a) -3,689 -2,946 -3,215 -3,397 EBITDA 2,855 -258 990 1,369 Operating
Slide 11: Recovery Underpinned by Strong Recurring Income
RECOVERY UNDERPINNED BY STRONG RECURRING INCOME H1/21 (£'000's) H1/22 (£'000's) H1/23 (£'000's) Smart Smart Smart Smart Smart Smart Zones Machines Zones Machines Zones Machines Turnover 2,025 2,041 3,715 2,625 4,175 3,006 Gross Profit 1,359 1,210 2,565 1,469 3,124 1,489 GP % 67.1% 59.3% 69.0% 56.0%
Slide 12: Effective Cash Management to Fund Business Growth
EFFECTIVE CASH MANAGEMENT TO FUND BUSINESS GROWTH STOCK WC MITIGATING GLOBAL SUPPLY CHAIN RISK H1/21 H1/22 H1/23 Cash Flow £'000 £'000 £'000 Operating Profit/(Loss) (1,397) (237) (29) Depreciation 309 244 243 Amortisation 837 1,050 1,170 Net Operational Cash Inflow/(Outflow) pre-WC (251) 1,057 1,384
Slide 13: Solid Financial Momentum as Sales Accelerate and Stock Converts to Cash
SOLID FINANCIAL MOMENTUM AS SALES ACCELERATE AND STOCK CONVERTS TO CASH FY21 H1/22 FY22 H1/23 Fixed Assets 27,431 27,246 27,094 26,862 Intangible 24,040 23,956 23,832 23,597 Property Plant equipment 3,391 3,290 3,262 3,265 Net Current Assets 1,744 1,050 914 705 Stock 1,431 1,530 1,573 1,846 Debtors
Slide 14: Clear Line of Sight to Accelerated Growth and Earnings
CLEAR LINE OF SIGHT TO ACCELERATED GROWTH AND EARNINGS Large addressable markets with great macro SmartVend creating opportunities trends – technology adoption, thirst for data with existing and new customers and insight, trend towards a cashless society Smart Zones growth from data driven Motivated
Slide 15: Group Strategic Aspirations - By March 2025
GROUP STRATEGIC ASPIRATIONS - BY MARCH 2025 OUR COMPELLING JOURNEY ESG ATTRACTS AND RETAINS HIGHLY RECOGNISED BY CUSTOMERS ENGAGED TALENT AND TEAMS AND STAKEHOLDERS AS ENABLING SUSTAINABILITY > 100,000 VENDING CONNECTIONS / >14,000 UK & EUROPE HOSPITALITY SITES UK & EUROPE ANNUAL REVENUE > £25M / AR
Slide 16: 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
Slide 17: Questions
QUESTIONS VIANET