Smart Parking Limited ASX:SPZ AGM Presentation CEO Paul Gillespie 10th November 2017
Business Overview World-leading technology for parking design, development & management Management Services UK Profitable and operates exclusively in the UK. Specialises in managing car parks on behalf of retail customers, land owners and managing agents and currently generates 88% of Smart Parking s revenue. Technology Global Designs, develops and specialises in on-street and off-street parking technology and software, enabling clients to manage parking efficiently and cost effectively. Critical to competitive advantage in the Services business and to the future growth of Smart Parking. 2
FY17 Highlights 3
Highlights Record FY17 results Global technology roll-out New clients & deals New R&D Smart City Platform development Expanding workforce 4
Highlights Cardiff, United Kingdom The Cardiff City Council order represents Europe s first city-wide deployment of parking bay sensor technology. Services technology expansion Smart Parking Services business continues the roll out of ANPR technology. Wilson Parking New Zealand Smart Parking wins new contract with Wilson Parking, the APAC market leader in car park operations. 5
FY17 Financial Update Adjusted Group EBITDA up 44% to $3.2 million* Adjusted Group EBITDA margin up 4% to 10.8%* Parking Management EBITDA up 47% to $7.9m* *In constant currency and before non-recurring items 6
Group financials EBITDA margin growth continues into FY17 In constant currency: 35,000 30,000 25,000 23,795 Full Year Results ($000 s) Group 31,805 29,045 24,841 Adjusted EBITDA 20,000 Up $1.0m on FY16 despite loss of Asda. 15,000 10,000 Adjusted EBITDA margin Up from 6.9% to 10.8%. Revenue $29m down 9% on FY16 following Asda contract loss. 5,000 0-5,000 ($000 s) 3,151 2,182 2,203 (2,645) Revenue Adjusted EBITDA FY15 FY16 FY17 FY17 LY FX *LY FX = Constant currency 7
Services financials EBITDA margin growth continues into FY17 30,000 Full Year Results ($000 s) Services 28,380 25,388 EBITDA 25,000 21,406 20,964 Up 21% on FY16. Up 47% in constant currency. 20,000 EBITDA margin 15,000 Up from 18.8% to 30.9%. Revenue $21.0m is down 26% on FY16 following Asda contract loss and foreign exchange movements. 10,000 5,000 0 ($000 s) Revenue 744 5,347 6,485 EDITDA 7,865 FY15 FY16 FY17 FY17 LY FX *LY FX = Constant currency 8
Technology financials Ongoing investment in technology New wins 6,000 5,000 4,000 3,994 Full Year Results ($000 s) Technology 5,580 5,146 New contract wins in the UK, New Zealand & Australia. 3,000 2,000 Continued technology investment 1,000 Delivers new Smart City technology platform in FY17. 0-1,000 Growth ahead Stronger performance expected in FY18 based on sales pipeline & order book. -2,000-3,000 ($000 s) Revenue (2,663) (2,520) FY15 FY16 FY17 EBITDA (2,734) 9
FY18 Q1 business update Management services UK services business continues to deliver earnings growth Technology New business wins and significant technological advancement 10
Q1 Revenue & EBITDA growth 10,000 Unaudited Results ($000's) for Q1 Group 8,620 8,267 Unaudited Group results for Q1 show positive revenue growth and EBITDA profitability. 8,000 6,000 6,479 Group revenue $8.3m up 28% on Q1 FY17 and up 33% in constant currency. 4,000 2,000 950 2,318 2,424 Group adjusted EBITDA $2.3m up 144% on Q1 FY17 and up 155% in constant currency. 0 ($000 s) Revenue EBITDA Q1 FY17 Q1 FY18 Q1 FY18 LY FX 11
Q1 Group cashflow Balance sheet continues to strengthen. Net operating cash inflow of $1.0m up $0.7m on previous quarter. Operating cash flows expected to continue to grow in Q2. Capex of $0.5m largely attributable to deploying technology on car parks in the UK which continues to drive improved returns. Closing cash of $14m, excludes cash held on behalf of customers. SPZ fully funded to explore and execute Corporate Opportunities. Operating cash flow & cash on hand by Quarter ($000 s) 15,000 14,086 13,728 13,542 14,000 12,000 9,000 6,000 2,474 3,000 489 293 317 1,008 0 (440) -3,000 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 ($000 s) Operating cash flow Cash on hand 12
Q1 Management services Business transformation continues following the loss of the Asda and Matalan contracts. 8,000 7,000 6,000 5,000 Unaudited Results ($000's) for Q1 Parking Management 7,124 6,814 5,304 Revenue growth Up 28% on Q1 FY17 and 34% in constant currency. 4,000 3,000 2,000 1,575 2,804 2,932 EBITDA growth Up 78% on Q1 FY17 and 86% in constant currency, demonstrating the quality of new business. 1,000 0 ($000 s) Revenue EBITDA Q1 FY17 Q1 FY18 Q1 FY18 LY FX 13
Q1 Parking breach notices 120,000 Parking Breach Notices by Quarter Growth in Parking Breach notices continues with the roll out of ANPR technology. 100,000 80,000 60,000 Q1 FY18 Up 33% on Q1 FY17. 40,000 Margin growth demonstrated whilst exiting high volume, low margin contracts. 20,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY16 FY17 Q4 Q1 FY18 Other Matalan Asda 14
Q1 Management services UK services business continues to deliver a strong and growing customer base. FY18 pipeline looking strong and supports the continued investment in ANPR technology. 15
Q1 Technology New business wins demonstrate the adoption of Smart City & IoT technology. 2000 1500 Unaudited Results ($000 s) Technology 1,965 1,845 1,460 Revenue growth Up 34% on Q1 FY17 and 26% in constant currency. 1000 500 EBITDA Loss reduced by 47% on Q1 FY17 and 41% in constant currency. 0-500 ($000 s) Revenue (395) (210) EBITDA (232) Q1 FY17 Q1 FY18 Q1 FY18 LY FX 16
Q1 Technology Firm orders and committed recurring for FY18 as at 31 Oct 17 ($000 s) Smart Parking s ongoing commitment to invest in its unique technology has resulted in increased sales and revenue growth so far in FY18. 5,000 4,000 3,000 4,093 2,596 Firm orders continue to grow Recurring revenue growth from new business wins Recurring revenue number inclusive of UK services licence fee 2,000 1,000 0 ($000 s) Firm Orders Committed Recurring Revenue 17
Q1 Technology Technology sales pipeline ($000 s) Aside from Smart Parking s firm orders and committed recurring revenue there is an ongoing pipeline of strong prospects that grows with each year. 35,000 30,000 25,000 20,000 20,350 23,742 32,867 Pipeline growth in line with technology adoption across all home markets 15,000 10,000 Total technology pipeline exceeding $30m 5,000 0 ($000 s) Nov-15 Nov-16 Nov-17 18
Strategic partnership with Telstra Smart Parking signed a sales agreement with Telstra in October 2017, which has opened up Telstra sales channels for SPZ. Telstra are now actively selling Parking as part of the Smart City/Internet of Things (IoT) offering. Five projects are already signed: City of Casey 904 sensors (scheduled for installation in Nov) Cairns Regional Council 224 sensors (set for installation in Nov/Dec) City of Greater Geelong 209 sensors (set for installation in Dec) Broken Hill City Council: 105 sensors (set for installation in Dec) City of Joondalup: 120 sensors (already installed) 19
Growing technology customer base Expanding across our key markets of UK, Australia & New Zealand & strengthening sales capacity. UK Cardiff City Council order to install 3,000 sensors Australia Coles Supermarkets order to install 1,100 sensors across 5 locations Hobart City Council order 2,100 sensors to provide real time data New Zealand Wilson Parking order to install in excess of 3,000 sensors across multiple locations Hamilton City Council installation of 1,345 sensors 20
New technology development Technology New Smart City platform New cloud based applications Global smart phone application 21
Research & development: New Smart Cities platform The new cloud-native Smart Cities platform delivers break-through advantages for our Smart Information Services for Cities and Businesses. Reduces costs associated with code development & maintenance SPZ is ready for the future of Smart Cities & the Internet of Things (IoT) New revenue opportunities open up for subscription & pay-for-use based service Modular Service Solutions Delivery Platform beyond the parking vertical Integration of leading Big Data, IoT capabilities & analytics 22
Global application delivered in Cardiff Cardiff City Council chose Smart Parking Technology to transform the parking experience across the city. Smart Parking have developed a new app to provide guidance, payment and enforcement capabilities and the SPZ App is ready for global release. 23
Outlook FY17 has been year of growth and positive investment in all areas of Smart Parking s business offerings. Strong pipeline of business in tech and services Growing client relationships Well placed to capture demand Investing in technology innovation Future ready for Smart City growth SPZ fully funded to execute strategy and explore Corporate Opportunities 24
Smart Parking contact Paul Gillespie Chief Executive Officer paul.gillespie@smartparking.com Richard Ludbrook Chief Financial Officer richard.ludbrook@smartparking.com www.smartparking.com Connect with Smart Parking 25
Supplementary information 26
Management services: How it works Parking management improving customer satisfaction and revenue generation. ANPR Automatic Number Plate Recognition Pay & Display ANPR Linked Automated Payment System Site Surveys Real-time information, analysis and trend data Parking Attendants Trained and qualified staff DPC (Disabled, Parent and Child) Protecting the vulnerable Marshaling Trained, professional and customer-friendly marshals 27
ANPR: How it works Automatic number / license plate recognition (ANPR) is a reliable, cost effective off-street parking management solution. It is proven to serve a wide range of industries including supermarkets, retail, hotels, hospitals and leisure centres. Smart Parking s ANPR solution ensures greater compliance and increased parking revenue. Ticketless, barrier-free system, parking areas managed 24/7 Automatically generated and issued parking charge notices Increased security, comprehensive reporting & account management Supply & installation at no cost to the customer 28
Technology: How it works Smart Parking s technology provides effective parking management solutions around the world. Server SmartCloud SmartRep SmartAPI SmartGuide Overhead Sensors SmartSpot SmartApp SmartTag Marshal Handheld Pay & Walk SmartEye Variable Message Signs 29
Technology: SmartApp features Search for nearby parking, see real-time data on a map receive directions to a car park and discover additional car park information. Set a timer or extend parking, receive notifications, make a payment and see a full transaction history. 30
Sydney operations: Video highlights Mosman / BridgePoint Shopping Centre Off and on-street sensor technology, overhead lights and in-ground sensors give real-time data to improve parking. Waverley Council In-ground vehicle sensors and partnership with APARC enhance parking in one of the world s most iconic coastal suburbs. Baulkham Hills Shopping Centre Improving the customer experience of parking through overhead parking guidance and real-time data on available spaces. 31
Glossary Adjusted EBITDA The Board assesses the underlying performance of the Group based on a measure of Adjusted EBITDA which takes into account costs incurred in the current period but not expected to occur in the future. EBITDA represents Earnings before interest, taxation, depreciation and amortisation. LY FX current years results presented using the prior periods average exchange rates (constant currency). 32
Smart Parking legal disclaimer The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe such restrictions. This presentation does not constitute, or form part of, an offer to sell or the solicitation of an offer to subscribe for or buy any securities, nor the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issue or transfer of the securities referred to in this presentation in any jurisdiction in contravention of applicable law. Persons needing advice should consult their stockbroker, bank manager, solicitor, accountant or other independent financial advisor. Certain statements made in this presentation are forward-looking statements. These forward-looking statements are not historical facts but rather are based on Smart Parking Ltd current expectations, estimates and projections about the industry in which Smart Parking Ltd operates, and its beliefs and assumptions. Words such as anticipates, expects, intends, plans, believes, seeks, estimates, and similar expressions are intended to identify forward - looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Smart Parking Ltd are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Smart Parking Ltd cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of Smart Parking Ltd only as of the date of this presentation. The forward-looking statements made in this presentation relate only to events as of the date on which the statements are made. Smart Parking Ltd will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation except as required by law or by any appropriate regulatory authority. Non-IFRS financial information has not been subject to audit or review. 33