Annual Report 2019 A2B Australia Limited ABN 99 001 958 390 Contents From A FY19 Highlights 2 Our Business 4 Networks Brand Profile: 13cabs 6 Technology Brand Profile: mti 8 At A2B we have Payments Brand Profile: Cabcharge 10 a clear purpose – Letter from the Chairman 12 creating confidence Letter from the CEO 14 in people’s plans. In the Community 16 Board of Directors 18 Operating and Financial Review 20 We believe in shaping Corporate Governance Statement 34 inspiring realities for Directors’ Report 48 tomorrow, in growing Remuneration Report 52 our business and in Auditor’s Independence Declaration 70 making the world Consolidated Financial Statements 71 a better place. Directors’ Declaration 113 Independent Auditor’s Report 114 Shareholder Information 119 Corporate Directory IBC a2b Annual Report 2019 To B 6.7% REVENUE GROWTH 9.8% moving UNDERLYING NPAT GROWTH forward 8¢ PER SHARE DIVIDEND • TAXI NETWORK • PAYMENT TERMINAL PROVIDER • TAXI APP Build trust • PASSENGER FEEDBACK When I’m on the run, dashing from my flat to the city, meeting‑to‑meeting, client‑to‑client, certain factors become a business imperative for me when choosing a personal transport service. For me, that's 13cabs. Ease of use, and by that I mean, is it easy to book and pay followed by FROM: CITY reliability and consistency. TO: HOME Knowing that my taxi will be on time, and the Driver knows how to get me to my destination quickly. For a fair go 2 a2b Annual Report 2019 $16.5m $14.1m STRONG NET IMPROVEMENT IN CASH POSITION STATUTORY PROFIT Always look ahead FROM: CITY TO: BEACH • PASSENGER FEEDBACK I often travel alone or late at night to meet my BFF’s and to get home afterwards. I need to feel safe and secure, whatever the time, and not be expected to pay a premium (surge fee) for the privilege! Every moment matters 3 Business We have responded to the changing business landscape by increasing our investment in service improvements, marketing, technology and importantly, our people. 4 a2b Annual Report 2019 your journey better. NETWORKS TECHNOLOGY PAYMENTS 5 NETWORKS BRAND PROFILE: people #1 and places TAXI NETWORK IN AUSTRALIA We all have places to be, no matter who we are or where we come from. 13cabs is committed 5,317 to delivering exceptional service to Passengers NEW DRIVERS to help them get where they need to be. JOINED We are focussing on delivering a high level of customer satisfaction as the key to our continued success and we’re always looking for ways to improve the customer 2m+ experience. In 2019 we improved the 13cabs app experience by significantly APP improving its speed, responsiveness, and overall performance, getting Passengers where they need to go faster than ever before. In keeping with 13cabs’ promise DOWNLOADS – “we’ll get you there” – we also reviewed and improved the accuracy of pick-up and destination coordinates, resulting in increased certainty for our Passengers. The pursuit of a class leading app experience, ensuring that our experienced team of Drivers and Taxi Operators are connected with our brand values and our customer-centric approach, has seen a flow through to Passenger satisfaction. 13cabs is currently the #1 Taxi app in Australia with 2.4 million downloads and a class leading 4.8 Star rating in Apple's app store. Building on the momentum of last year’s rebrand, 2019 saw much of our taxi fleet taking on the highly distinctive orange logo that has become synonymous with 13cabs, showcasing a brand that is now recognised throughout Australia. In July 2019 we welcomed Gold Coast Cabs into our fleet advancing our strategy of offering services on a national basis – an aspect of taxi operations that has increased in importance in the digital age. With our strength grounded in our people – a proud, vibrant and diverse workforce – 13cabs is committed to creating a high quality inclusive service supported by A2B’s world class technologies and booking platforms. 6 a2b Annual Report 2019 "Wherever you are, wherever you're going, whatever you need, we'll get you there." 7 TECHNOLOGY BRAND PROFILE: in the 70,000 future VEHICLES SUPPORTED GLOBALLY MTI is a global manufacturer and developer of advanced and innovative SaaS dispatch and booking service platforms. Australia Canada Finland New Zealand MTI’s technology offerings include: Sweden • self-hosted and cloud-based Taxi dispatch systems; UK • a dedicated driver app with GPS navigation, traffic and route plotting, and USA Passenger ratings; • web and telephone based booking software; and • a driver management system that can monitor Driver performance, fatigue and driving skills. MTI expands A2B’s customer reach and its ability to compete with other fully integrated personal transport companies. Leveraging MTI’s technology and international customer base will accelerate A2B’s global presence and reputation as a leader in the personal transport space. Recent examples include the commissioning of new systems for clients in Canada and New Zealand, provision of new app technology to Transdev in Phoenix, and the extension of services to support Bureau expansion for leading Scandinavian players Cabonline and Taksi Helsinki. 8 a2b Annual Report 2019 "Our focus is supporting your business to make vehicles more efficient, increase Driver income, and provide excellent service to Passengers." 9 PAYMENTS BRAND PROFILE: the way +4,000 CABCHARGE PLUS USERS ONBOARDED Our payment solutions offer Passengers and Drivers fast and secure methods of paying taxi fares and deliver corporate clients with improved control, TRAVEL deeper insights and end-to-end automation. FEEDBACK Our digital payment products can be delivered instantly through app and mobile channels and improve convenience, security and traceability of in-taxi payments. We have increased the rate of automation for orders of both e-TICKETs and FastCards and integrated our Cabcharge Plus system with Concur and other expense management systems to seamlessly support the management requirements of our clients. In addition to the technical improvements to our in-car payment terminals (that are installed in almost every Taxi in Australia) we developed new terminal rental models to suit the rapidly growing numbers of independent taxis taking advantage of new licencing models in Victoria and Western Australia and saw the total payments processed via our Spotto and Giraffe handheld terminals grow by over 31%. In keeping with our proud heritage of industry leading innovation Cabcharge Payments won an AFR BOSS Most Innovative Companies Award in 2019. 10 a2b Annual Report 2019 "In a fast‑paced world, we are committed to keeping you moving, and delivering greater confidence and insight into your travel needs." 11 the CHAIRMAN At last year’s Annual General Meeting over 99% of shareholders approved the change of our corporate name to A2B. My fellow Directors and I were both delighted and invigorated by the confidence displayed in the Company’s strategy and leadership. 12 a2b Annual Report 2019 A2B is not just a rebadging of Recent examples include We have invested in our technology Cabcharge. A2B has been rebuilt the commissioning of new platforms, stepped up our from the outside looking in systems for clients in Canada marketing campaigns, are a proud focussed on the Passenger, product and New Zealand, provision Australian taxpayer, employer and user, the environment and society of new app technology to supporter of local communities in which we operate. Structurally, Transdev in Phoenix, and the through programs and initiatives A2B is a house of brands with each extension of services to support that are far removed from underlying business unit having its bureau expansion for leading the veneers that some of our own identity and united under an Scandinavian players Cabonline competitors use for the extraction overarching corporation. But A2B and Taksi Helsinki. of margins through opaque and is so much more than its structure ambiguous price surging models. – it is a new, more vibrant and Responding to Passenger Our efforts to provide personal fitter organisation that is better expectations in the ever transport solutions to rural, able to operate and compete in the increasing competitive landscape marginal and vulnerable technology, payments and personal of the personal transport sector Australians are often overlooked transport sectors. We have worked in Australia, on 1 January 2019 by regulators and governments hard to celebrate the Company’s 13cabs took a bold step to improve but we are proud of the work that heritage while modernising not the standard of the vehicles in its we do and the part that we play only the name but improving its fleets through the introduction in the everyday lives of Australians core governance, technology and of age limit requirements. by creating confidence in their marketing capabilities. Although higher standards temporarily impacted fleet plans for when and where they Our FY19 results emphasise the growth, particularly in NSW and need to get from A to B. substance of our transformation. Victoria, the policy supports the In the growing and ever evolving A2B delivered an all-time high delivery of a consistent and high technology and personal transport revenue result of $197.9m, with quality service. In July this year we sectors our commitment is to drive an underlying EBITDA of $36.4m completed the acquisition of the continual improvement through and underlying NPAT of $14.9m. business operations of Gold Coast innovation and enhancements Revenue growth is flowing to the Cabs for $2.5 million. With a fleet to the products and services we bottom line with a 9.8% increase of approximately 400 Taxis the deliver. We will develop our core in underlying NPAT in FY19 and we acquisition of Gold Coast Cabs strengths to increase the value declared a full year fully franked further advances our strategy propositions of our offerings dividend of 8 cents per share.