ASG Group Limited. FY10 Results Presentation August Geoff Lewis Dean Langenbach. Presenter Name Date DD/MM/YYYY

Transcription

1 ASG Group Limited FY10 Results Presentation August 2010 Geoff Lewis Dean Langenbach CEO CFO Presenter Name Date DD/MM/YYYY

2 Agenda 2

3 FY10 Financial Highlights FY10 FY09 Change Revenue ($m) % EBITDA ($m) % NPAT ($m) % EPS (cps) % DPS (cps) % Net op cash flow ($m) % 3

4 Forecasting strong growth in FY11 and beyond 4

5 Track Record of Growth NPAT $m EBITDA $m EPS cents DPS cents

6 Operating Cash Strength FY09 FY10 Opening Balance $6.2m $8.8m Net operating cash $13.4m $15.9m Share Issue proceeds $0.1m $6.8m Acquisitions ($3.2m) ($7.8m) PPE & Software ($1.3m) ($2.1m) Internal Investment ($4.6m) ($6.2m) Net borrowings ($2.1m) ($2.3m) Dividend paid ($3.9m) ($6.3m) Closing Balance $8.8m $6.8m

7 FY10 - Establishing a Growth Platform ASG made 3 significant acquisitions and secured a record amount of new business in FY10 The growth initiatives underpin the continued development of ASG as a truly national, fully integrated IT services company These initiatives create a platform for significant earnings growth in FY11 and beyond Oracle Application Services Consulting Managed Services Business Intelligence Services SAP Application Services Infrastructure Delivery Services 7

8 Acquisitions to Drive Earnings Growth In H2 FY10, ASG Group executed three important acquisitions: Capiotech Ltd, Courtland Business Solutions and Dowling Consulting Key Benefits: EPS accretion in FY11 ASG enters SAP market, effectively doubling ASG s market opportunity Consolidates national footprint Provides access to high quality client base with strong expertise in growth industries: mining, oil & gas Increases capabilities in Managed Services, with specific expertise in high end consulting services Positions ASG to secure larger, multi-faceted, higher margin contracts Opportunity to cross sell SAP clients into existing Managed Services capabilities (this has been successfully achieved with Oracle to date) Consulting Managed Services Business Intelligence Services Oracle SAP Infrastructure Delivery Services 8

9 $220m in new contracts secured in CY2010 ASG secured $220 million in new contracts in CY2010 Secured contracts are consistent with ASG s approach to focus on blue chip corporate and government clients Long duration contracts offer earnings certainty New contracts to drive strong earnings growth in FY11 and beyond Contracts secured highlight the following: Broadening of relationships with ASG s existing clients in terms of revenue generation, duration of contracts and services offered ASG is a well regarded IT services provider in the Federal Government arena, there is scope for more contracts here Clients are attracted to ASG s newly enlarged, integrated product offering ASG has a strong national footprint with existing contracts secured across all Australian states 9

10 Strong Opportunity Pipeline FY11 FY12 FY13 Federal 260m 333m 300m Southern 91m 113m 150m QLD 12m 23m 35m NSW 183m 376m 467m WA 80m 100m 190m $626m $950m $1,150m Future earnings growth to be underpinned by a strong project pipeline of qualified contract opportunities

11 Data Centre Launched ASG has recently launched a Data Centre located in Perth, Western Australia Construction is due for completion in March 2011 With recent Contract wins, Data Centre will be 80% occupied, and locked in for 5 years How does the Data Centre fit into ASG s growth strategy? 11

12 Outlook ASG has sufficient transparency and confidence in the outlook to provide revenue guidance of at least 40% growth for FY11, with margins expected to remain stable Contract momentum has continued in early FY11 with ASG securing an $80m contract extension with WA Department of Treasury and Finance ASG expects the bid cycle to remain buoyant Strong earnings growth underpinned by: 12

13 ASG Value Proposition 13

14 What next? ASG is forecasting strong earnings growth in FY11 and beyond, driven by: Integrating recently acquired businesses into the ASG Group delivering upon cost and revenue synergies Securing new contracts and cross sell opportunities in recently enlarged business including across product lines (SAP/Oracle), services (Managed Services/ Consulting) Continue to pursue long term contracts delivering multi year revenue streams (converting the strong contract pipeline) Completion of construction of Data Centre in March 2011 broadens ASG s service offering, increases market opportunity Expansion into new, higher margin product and services areas 14

15 ASG Group Limited FY10 Results Presentation August 2010 Geoff Lewis Dean Langenbach CEO CFO Presenter Name Date DD/MM/YYYY