Annual Report
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Annual Report 2019 – 2020 We acknowledge the Traditional Owners and Custodians of country throughout Australia and their continuing connection to the land, water and community. We pay our Respect to Aboriginal and Torres Strait Island Cultures and Elders past, present and emerging. Cover: Sydney, New South Wales This page: Palm Island, Queensland At SeaLink we are dedicated to connecting people, linking communities, sharing experiences, and creating brilliant memories. SeaLink Travel Group 2 Key Results 22 Five Year Financial Highlights 3 Directors’ Report 23 Our Global Operations 4 Financial Report 28 Our Australian Operations 6 Auditor’s Report 75 Community and Sustainability 8 Auditor’s Independence Declaration 81 Chair Report 10 Remuneration Report 82 Review of Operations 12 ASX Additional Information 92 Revenue History 20 Corporate Governance 94 Adelaide, South Australia SEALINK TRAVEL GROUP SeaLink provides innovative SeaLink Travel Group is Australia’s and London underway, an electric bus largest land and marine tourism and trial currently operating in NSW, on and efficient transport public transport service provider with demand services in Sydney, and is part established international operations. of the world’s first hydrogen consortium, the H2OzBus Project. As well as solutions that link people and It is one of Australia’s most experienced operating an eco-tourism resort on and diverse multi-modal transport communities with places and the world heritage listed, Fraser Island businesses, boasting performance-driven and eco experiences and tours in capabilities across ferry, bus and light rail. experiences. With a genuine Queensland and South Australia. The Group is made up of SeaLink marine Headquartered in Adelaide since care for our customers, and tourism operations and facilities, and 1989, the business has experienced Transit Systems Group, with domestic a remarkable period of growth, the most people and the environment, and international public transport recent example being the acquisition of contracts, with operations in seven we believe in delivering safe, Transit Systems Group in January 2020. Australian states and territories, as well Together, SeaLink has emerged as a as Singapore and London. convenient and sustainable leader in both public transport and local transport that keeps The Group moves more than 280 million tourism, bringing together Australia’s customers per year, has over 8,600 most dynamic travel company and a people connected. employees and operates approximately global transport leader. 3,500 buses and 80 ferries. Noteably, the Group was awarded SeaLink is a business with a focus on the Brisbane City Council contract for innovation, and is leading the way in the the CityCat and CityFerry operation in area of sustainable transport and tourism June 2020, signifying the success of experiences, with the introduction of the acquisition and the union of the electric buses in Perth two businesses. 2 FIVE YEAR FINANCIAL HIGHLIGHTS SEALINK TRAVEL GROUP PERFORMANCE 2016 2017 2018 2019 2020 Total Revenue $m 176.8 201.4 209.4 251.3 646.5 Underlying* EBIT $m 35.3 37.5 33.6 31.5 29.9 EBIT margin % 19.9 18.6 16.0 12.5 4.6 Underlying* NPAT $m 23.1 23.6 22.1 23.4 16.4 Underlying* EPS (basic) cents 24.4 23.6 21.8 23.0 9.9 Dividend per share (100% franked) cents 12.0 14.0 14.5 15.0 11.0 FINANCIAL STRENGTH Net assets $m 137.0 147.7 152.2 157.9 600.2 NTA per share cents 89.0 100.0 101.0 106.0 5.0 Gearing % 33 31 46 36 31 NET PROFIT/(LOSS) AFTER TAX UNDERLYING EARNINGS PER SHARE UNDILUTED $25m 25 cents $20m 20 cents $15m $10m 15 cents $5m 10 cents ($5m) ($10m) 5 cents ($15m) FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Statutory NPAT Underlying* NPAT Underlying* Earnings per share (ave) – undiluted *Adjusted for significant items for the period ending 30 June 2020 on a pre-AASB 16 basis. This is a non-IFRS measure and has not been audited. 3 OUR GLOBAL OPERATIONS LONDON LOS ANGELES SINGAPORE DARWIN TOWNSVILLE BRISBANE PERTH SYDNEY ADELAIDE AUCKLAND MELBOURNE HOBART OUR PUBLIC TRANSPORT GOVERNMENT PARTNERS 4 8,600 EMPLOYEES 280M PASSENGERS / YEAR LONDON 3,500 LOS ANGELES BUSES 80 SINGAPORE FERRIES DARWIN TOWNSVILLE BRISBANE 12 PERTH SYDNEY CITIES ADELAIDE AUCKLAND MELBOURNE HOBART 14 ISLANDS OUR PUBLIC TRANSPORT GOVERNMENT PARTNERS 5 OUR AUSTRALIAN OPERATIONS Groote Eylandt Ferries Tiwi Islands DARWIN Buses Trams Palm Island Tourism Magnetic Island TOWNSVILLE Gladstone Fraser Island BRISBANE North Stradbroke Island South Moreto n Islands Rottnest Swan River Island PERTH ADELAIDE SYDNEY Bunbury Murray Busselton River Albany Kangaroo Island MELBOURNE HOBART Bruny Island 6 WESTERN AUSTRALIA VICTORIA 1561 STAFF, 12 VESSELS, 791 BUSES, 270 STAFF, 175 BUSES, 20 DEPOTS / PORTS, 10 CONTRACTS 1 DEPOT, 1 CONTRACT 25M PASSENGERS P.A. 2M PASSENGERS P.A. SOUTH AUSTRALIA QUEENSLAND 1698 STAFF, 5 VESSELS, 24 TRAMS, 863 BUSES, 654 STAFF, 36 VESSELS, 36 BUSES, 14 DEPOTS / PORTS, 5 CONTRACTS 13 DEPOTS / PORTS, 8 CONTRACTS 33M PASSENGERS P.A. 3M PASSENGERS P.A. NORTHERN TERRITORY NEW SOUTH WALES 98 STAFF, 4 VESSELS, 38 BUSES, 2132 STAFF, 19 VESSELS, 847 BUSES, 2 DEPOTS / PORTS, 4 CONTRACTS 9 DEPOTS / PORTS, 6 CONTRACTS 2M PASSENGERS P.A. 60M PASSENGERS P.A. AUSTRALIA WIDE TASMANIA 6458 STAFF, 80 VESSELS, 2750 BUSES, 24 TRAMS, 45 STAFF, 4 VESSELS, 2 PORTS, 1 CONTRACT 61 DEPOTS / PORTS, 300,000 PASSENGERS P.A. 35 CONTRACTS 125M PASSENGERS P.A. 7 COMMUNITY AND SUSTAINABILITY SeaLink’s approach to corporate social responsibility is through DIVERSITY Diversity, Reconciliation, Teams, Community and Sustainability actions. These pillars are important to our people and the communities SUSTAINABILITY RECONCILIATION in which we work and we believe by focusing on these we will make a positive impact. By providing a safe and satisfying workplace SeaLink can contribute to a healthier environment, celebrate diversity, acknowledge our role in reconciliation and improve regional economic opportunities. This is a snapshot of some of the initiatives and programs SeaLink COMMUNITY TEAMS Travel Group has embarked on over the past financial year. DIVERSITY RECONCILIATION This year, we revised our Group Diversity and Equity Policy, SeaLink’s first Reconciliation Action Plan (RAP) was launched focused on providing equal opportunities to all and fostering in 2018 to provide a framework for SeaLink Travel Group to inclusiveness. We believe that our business and the community support reconciliation and engagement with Aboriginal and Torres benefits by bringing together talented people of different gender Strait people, employees and communities. This year SeaLink and gender identity, sexual orientation, religious beliefs, age, expanded relationships with traditional owners, Land Councils ethnicity and cultural backgrounds, disability, marital or parental and Regional Shire Councils in remote communities including status, educational background and socioeconomic status. agreeing to service contracts with the Groote Eylandt Aboriginal Trust, the Anindilyakwa Land Council, the Palm Island Aboriginal Shire Council and Quandamooka Yoolooburrabee Aboriginal Corporation. With the acquisition of the Transit Systems Group, SeaLink have embarked on renewing our Reconciliation Action Plan to continue building an organisational culture that embraces and incorporates recognition, acknowledgement and understanding of Aboriginal and Torres Strait Islander peoples and culture. 8 TEAMS Connecting and engaging with our predominantly deskless workforce has always been a challenge and this year, we committed to ensuring our entire team – globally, would have access to information and a digitised employee experience through a roll out of an employee app over the coming year. Our focus on the safety and wellbeing of our staff during the last year has also enabled a significant increase in our employees capability to work from home and improved the focus on communication that has improved the integration of our teams with the acquisition of Transit Systems Group. COMMUNITY SUSTAINABILITY Our significant commitment to the local communities was best SeaLink has a strong record of innovation and is actively demonstrated this year when extreme fires burnt more than pursuing opportunities to deploy hydrogen fuel cell buses in 50% of Kangaroo Island. SeaLink staff, crew and vessels were Australia and Singapore, supported by the extensive practical immediately activated to assist with bushfire recovery and experience gained from operating a fleet of Hydrogen along with a huge staff volunteer support package more than Fuel Cell buses in London as part of the Transport for half-a-million dollars in immediate cash support for the local London-led Clean Hydrogen in European Cities (CHIC) and community was provided by SeaLink and its Directors to the 3Emotion projects. The Projects concluded earlier this year Kangaroo Island’s Mayor’s Bushfire fund. – after 7 years of successful operation in one of the world’s great cities. In May 2020, we joined forces with strategic In every community where we work, SeaLink has a bespoke partners Ballard Power Systems, BOC Limited, Palisade local content plan to capture the needs of the community Investment Partners and ITM Power (‘Consortium’), by and empower our teams on the ground to take pride in the signing a memorandum of understanding as a further step in outcomes. Support for local communities primarily takes the evaluating and demonstrating the concept of hydrogen fuel shape of charitable donations, sponsorship support and the cell electric buses for use in public bus transport in Australia. provision of in-kind services. SeaLink are highly aware of our responsibility to local residents and local services. In NSW, we also celebrated our one-year anniversary of the Transit Systems’ electric buses in Region 6; part of the Transport for NSW trial and in Tasmania we undertook a feasibility project to consider building the new Tasmanian ferries with electric power systems. 9 CHAIR REPORT Dear Shareholders, Our bus businesses have remained strong during this period with government backed revenue supporting 85% of revenue It has been a very challenging year for many Australians, from our transport businesses.