Analyst Presentation
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ANALYST PRESENTATION 11 DECEMBER 2014 For personal use only AN DREW S KELTON CHIEF EXECUTIVE OFFICER For personal use only LEADING THE INDUSTRY National Full natural voice Contactless Taxi specifi c electronic IVR taxi booking payment contactless payment system terminals in payment products terminal fl eet taxis 1980 1996 1998 2002 2003 2008 2009 2010 2014 Broad based Electronic GPS in payment acceptance taxi subsidy terminals First taxi of credit cards programs for Smartphone Apple Pay in taxis governments SMS on approach booking apps transaction For personal use only Analyst Presentation 2014 3 WHY TAXIS MATTER WE PROVIDE AN ESSENTIAL SERVICE AND EQUAL ACCESS TO ALL SECTIONS OF THE COMMUNITY – YOUNG, OLD, RICH, POOR, LARGE CORPORATES, PEOPLE WHO ARE DISADVANTAGED UNLIKE PUBLIC TRANSPORT WE PROVIDE OUR SERVICES 24/7 WE PROVIDE OUR SERVICES ALL OVER THE COUNTRY Known fares regulated by Universal, multi-channel service Large number of participants Government to Balance the providing on-demand transport and stakeholders Interests of Stakeholders linkage with other modes Privately funded transport solution Drivers are trained and screened fi lling the gaps in public transport Vehicles are inspected and insured For personal use only Analyst Presentation 2014 4 OUR CUSTOMERS TAXI NETWORKS OPERATORS DRIVERS Provide network services Source a vehicle and a taxi Taxi Drivers drive taxis either such as taxi booking licence and choose a Taxi as an owner/operator or and dispatch services Network to affiliate with typically by taking a taxi on to Taxi Industry participants bailment from a Taxi Operator PASSENGERS PAYMENTS Use taxis for transport, There are several predominantly of people payment alternatives For personal use only but in some cases of parcels REGULATORS Oversee all aspects of the Taxi Industry Analyst Presentation 2014 5 OUR BUSINESS MULTIPLE BRANDS MULTIPLE TECHNOLOGIES MULTIPLE BRANDS MULTIPLE TECHNOLOGIES For personal use only Analyst Presentation 2014 6 FIRST STEPS NON-PERFORMING RECONFIGURED OUTSOURCED SOME 135UNITS ADDRESSED WORK SPACES NON-CORE ACTIVITIES INCREASED PREPARED FOR SYSTEM INCREASED 2 COLLABORATION 4 STANDARDISATION25c6 TRANSPARENCY For personal use only Analyst Presentation 2014 7 STRATEGIC TASKS INTEGRATING APPOINTMENT OF SUPPORTING APPOINTMENT NETWORKS STUART OVERELL OUR MERCHANT OF FRED LUKABYO PARTNERS COMMITTING BRAND AUDIT AND LOOKING AFTER STANDARDISATION TO A KEY BRAND CONSOLIDATION OUR CUSTOMERS OF SERVICE LEVELS COMMENCED LINKING BOOKINGS STANDARDISATION AND PAYMENTS OF BOOKING APPS UNDERWAY For personal use only Analyst Presentation 2014 8 NEW EXECUTIVE TEAM CHIEF EXECUTIVE OFFICER HEAD OF PAYMENTS ANDREW SKELTON JOHN D’ARCY CHIEF FINANCIAL OFFICER COO TAXI SERVICES CHIP BENG YEOH STUART OVERELL CHIEF OPERATING OFFICER GENERAL COUNSEL & COMPANY SECRETARY FRED LUKABYO ADRIAN LUCCHESE For personal use only Analyst Presentation 2014 9 FRED LUKABYO CHIEF OPERATING OFFICER REGULATORY FRAMEWORKS AND MERCHANT PARTNERS For personal use only Analyst Presentation 2014 STATE REGULATORY FRAMEWORKS Non Cash Payment Regulation • Non Cash Payment Regulation in NSW 5% from 12 December 2015 • Market Share implications • No dates or formal announcements around other jurisdictions Network Regulation • Network requirements remain in NSW – additional regulation of app dispatch “booking services” • Removal of mandatory affiliation in VIC has not reduced the appeal of belonging to a network • No changes flagged for SA “Ridesharing” – Unlawful in all States For personal use only • NSW and Victoria increasing enforcement activity Analyst Presentation 2014 11 LICENCES • New Licence models have grown the industry • >500 more in Victoria so far in FY15 – new Government expected to retain oversight • >100 more in NSW already so far in FY15 • IPART NSW has commenced Licence and Fares model for 2015 – highly likely more licences • Small Increase in Numbers Expected in other jurisdictions this year – Qld and SA • Mixed Effect of Taxi Number increases on service levels and participants For personal use only Analyst Presentation 2014 12 TAXI NETWORKS as MERCHANT PARTNERS • New focus on Merchant Partners • Far more active focus on servicing the Industry – New Commercial Arrangements • Broad range of On Demand transport providers including Limo and Shuttle For personal use only Analyst Presentation 2014 13 STUART OVERELL COO TAXI SERVICES TAXI NETWORKS For personal use only Analyst Presentation 2014 FLEETCLOSEUP STATISTIC OF AUSTRALIA MAPS TO COME TOTAL FLEET SIZE OF CABCHARGE OPERATED NETWORKS 6,650END OF FY14 6,986CURRENT NEW SOUTH WALES SOUTH AUSTRALIA 4,104 / 4,169 299 / 297 END OF FY14 CURRENT END OF FY14 CURRENT VICTORIA For personal use only 2,247 / 2,520 END OF FY14 CURRENT Analyst Presentation 2014 15 THE NETWORKS How do Networks generate revenue? • Subscriptions Network Services in 2015 • Driver training • Car sales • Insurance For personal use only Analyst Presentation 2014 16 TAXI TECH / STRATACOM Direction shift with growth of owner/driver model Growth in services For personal use only Analyst Presentation 2014 17 CUSTOMER INTERACTION Voice • Major users: health, education, government, courier customers IVR • Major users: general public Apps Web For personal use only Analyst Presentation 2014 18 NETWORK OPTIMISATION Operational • Staff, uniforms, stationery • Linking technology • Adaptive to change • Load sharing • Procurement • Offering all services in each network • New acquisitions can be integrated without the need for extra offices/sites Technology For personal use only • Telephone system • Dispatch system Analyst Presentation 2014 19 EARLY PROGRESS Operational Standardisation ü Contact centre re-organisation ü Service levels ü Staff training ü Adelaide office move For personal use only Analyst Presentation 2014 20 BUREAU SERVICES ZERO200 MILDURA TAXIS ASSOCIATED: 2014 CABXPRESS: 2011 GREATER SHEPPARTON TAXIS: 2014 MELTON BACCHUS MARSH TAXIS: 2014 YARRA VALLEY TAXIS: 2012 BELLARINE PENINSULA TAXIS: 2014 EMERALD TAXIS: 2012 COASTAL TAXIS: 2013 For personal use only WARRNAMBOOL: 2013 PHILLIP ISLAND TAXIS: 2013 MORWELL TAXIS: 2012 Analyst Presentation 2014 21 JOHN D’ARCY HEAD OF PAYMENTS CABCHARGE PAYMENT TECHNOLOGY For personal use only FAREWAYplus Benefits and Opportunities • Fully Integrated Passenger Experience from booking to payment • Transparency. Fares, itemised extras, tolls and trip routing • Platform for new Taxi applications for passengers and drivers • All bases covered for new forms of payment – NFC, Bluetooth For personal use only Analyst Presentation 2014 23 APPS Leverage our Strengths • Terminal fleet of 22,000 terminals • Our technical capabilities • Capabilities in the Taxi booking market Outcomes • Excel in booked payments segment • Rank and Hail phone payments • Revitalise Cabcharge account products For personal use only Analyst Presentation 2014 24 TRANSACTION SWITCH Transaction Switch Upgrade • Every Cabcharge transaction goes through the Switch • Major upgrade and moves the systems into Tier 3 data centres • Cabcharge becomes technical/operational peer with Banks and other processors • Cabcharge has joined APCA COIN Framework Outcomes • Improved transaction speed and reliability • Better business continuity and Disaster Recovery • Enhance PCI-DSS and in particular APCA compliance • Potential to lower transaction costs over medium term For personal use only • Potential business expansion into new markets • Enables 3rd parties to process Cabcharge cards Analyst Presentation 2014 25 PEOPLE and CULTURE Talented People • First Australian Booking App 2009 • Design and Build Hardware • Payments delivery to major Banks, Woolworths, Australia Post and Others What Culture Change? • Eliminate Silo thinking • Look Outward not Inward • Example – Integrate bookings and payments For personal use only Analyst Presentation 2014 26 CHIPCHIP BENGBENG YEOYEOHH CHIEFCHIEF FINANCIALFINANCIAL OFFICER OFFICER For personal use only Analyst Presentation 2014 FINANCIAL PERFORMANCE Change Revenue: over PCP • Growth in taxi related service revenue as more ($m) FY14 FY13 % taxis joined our networks Revenue1 197.3 196.6 0.3 Expenses2 (113.8) (111.1) 2.4 • Revenue from taxi service fee income impacted by limit on service fee on taxi payments to 5% in Victoria Impairment charge on CityFleet (9.7) (5.7) EBITDA 73.8 79.8 (7.6) Expenses: Depreciation & Amortisation (12.6) (12.9) • Operating expenses grew in-line with growth in EBIT 61.2 66.9 (8.6) revenue from taxi related services and taxi service fee income (from increase in turnover) Net interest (6.3) (7.5) • Impairment charge on CityFleet UK reflects that Profit before tax 54.9 59.4 its current growth outlook is below our previous Income tax (19.4) (19.2) expectations NPAT (excl. associates) 35.5 40.2 (11.8) Equity accounted net profit of associates 20.6 20.4 1.0 Margins: • Adjusted for the impairment charge, EBITDA margin NPAT 56.1 60.6 (7.4) for FY14 was 42.3% (FY13: 43.5%) For personal use only 3 EBITDA margin 37.4% 40.6% 1 Excludes interest income 2 Operating expenses excluding impairment charge on investments in associates 3 EBIT margin 31.0% 34.0% 3 Calculation excludes equity accounted net profit of associates 4 Higher effective tax rate due mainly to non-deductibility of impairment charge on CityFleet Effective tax rate (%)4 35.4% 32.3% Analyst Presentation 2014 28 BALANCE SHEET • Total net assets grew by $27.2m or 8%, ($m) 2014 2013 2012 2011 largely due to FY14 net profit of $56.1m Cash and cash equivalents 41.9 43.9 51.2 22.9 less total dividend paid of