For personal use only

Transcription

1 H1:FY 15 Results February 2015 Geoff Lewis Chief Executive Officer Dean Langenbach Chief Operating Officer Chief Financial Officer

2 Company Overview The ASG Board Ian Campbell: Chairman Geoff Lewis: Managing Director, CEO Stephen Johnston: Non Executive Director Grant Pestell: Non Executive Director Peter Torre: Company Secretary The ASG Executive Team Geoff Lewis: Managing Director, CEO ASX code: ASZ Number of Shares on Issue: 206,720,839 Share Price: $0.70 Market Capitalisation: $144.7 million Dean Langenbach: COO, CFO Gerald Strautins: Executive - Strategy 2

3 FY15 Delivering on the New World 3 EBITDA on target at $11.1m Locked in revenue continues to build Forecast stronger EBITDA in H2 New contract establishment impacts operating cash Net debt target <$10m by 30 June 2015 on track Results in line with guidance, as presented at 2014 AGM Strong underlying base for realisation of Full Year result

4 H1:FY15 Financial Summary 4 $ H1FY15 $m H1FY14 $m Movement Revenue % EBITDA 11.1# 10.7* 3.8% NPBT % NPAT 5.7^ % EBITDA Margins 13.8% 13.5% 0.3% EPS 2.77c 1.85c 49.7% *Includes write-back provision of $1.1 million #Includes $1.0 million profit on sale of Data Centre ^ $1.2m ATO credit applied to the income tax expense & $0.6m ATO interest incurred

5 $M DAYS Operating Cash Flow 5 Debtor Days Operating Cash Flow H1 FY13 FY13 H1 FY14 FY14 H1 FY Milestone delay on contract establishment transition Seasonality of debtors consistent with prior periods Future operating cash flow consistent with EBITDA less interest and tax

6 Cash Flow 6 Operating cash impacted due to debtor timing OPENING BALANCE H1FY15 $m H1FY14 $m 16.1 (2.0) Change in working capital (2.6) 3.1 Net Interest (1.4) (1.6) Data Centre proceeds applied to long-term debt Capital investment consistent with New World contracts Income tax (1.9) 0.2 Net Operating Cash (5.9) 1.7 Acquisitions - (0.5) Capital Investment (2.9) (1.7) Sale of Leased Asset Net borrowings and finance leases (11.0) 5.4 CLOSING BALANCE

7 Balance Sheet 7 Strengthened by operating performance and Data Centre sale Continued focus on debt reduction and liquidity improvement Current Assets H1FY15 $m June 2014 $m Cash Receivables Data Centre held for sale Other Current Assets Total Current Assets TOTAL ASSETS Net Current Asset improvement (excluding Data Centre sale) Bank debt restructured with NAB at reduced rates Current Liabilities Trade and other payables Borrowings Total Current Liabilities Non-Current Borrowings TOTAL LIABILITIES NET ASSETS

8 Debt Reduction Focus Net Debt ($m) FY15 Target FY16 Target FY14 Actual FY15 H1 Actual FY14 Target -40 FY14 H1 Actual Remains on track for FY15 Target < $10m Net Debt Operating cash turnaround in H2, consistent with prior years Capital investment less than 1 x D&A FY16 Target Surplus cash reserves exceed debt

9 Revenue Breakdown 9 New World the Key Driver for Growth 80% of new contracts New World

10 Locked in Revenue 10 FY FY FY FY FY $M Managed Service New Managed Service (New World) Non Managed Service New Non Managed Service $145m or 92% of FY14 Revenue is already locked in for FY15

11 New World Contracts will drive H2 Performance 11 H1 was a record period for new contract establishment Contract ramp up underpinning H2 increase, as contracts move into full Managed Service delivery Customer Contract Period Managed Service Commencement Department of Primary & Environment Industries (DEPI) Australian Transport Safety Bureau (ATSB) 3 years May-15 4 years Mar-15 AusGroup (AGC) 5 + years Dec-14 Australian Maritime Safety Authority (AMSA) years Nov-14 Lockheed Martin (Defence) 8 years Mar-15 Whilst transition project revenue in H1 was substantial, the Managed Service commencement is expected to make a greater EBITDA contribution in H2

12 Utility New World Computing 12 Traditional IT Services Utility Services Unique Solutions for few customers Standard Offerings consumed by many customers High CAPEX, and associated high recurring OPEX costs Dedicated Infrastructure and Staff High Risk for Customer Labour intensive, project based services Inflexible pricing models based on fixed capacity supply regardless of business needs OPEX based offerings, with low associated CAPEX Fully Leveraged Infrastructure & Staff Low Risk for Customer Hands-off, automated services Scalable utility, Per-User pricing models based on business needs

13 Utility New World Computing 13 Change in What the Customer Sees Efficiency, simplicity, productivity Opex rather than Capex - usage-based costs Approximately 30 40% savings, led by outcomes based business decisions rather than technology Shrinkage of internal IT departments Customers making value-based business decisions not expense-based technology decisions

14 ASG Market Position 14 Other Companies starting to move now Customers The Big 4 Peers Multi-Nationals ASG advantage is that we understand Managed Services Capability & Competency in delivering the complete solution Can take existing services & transform to New World Take the Customer on the journey o Low risk & Investment protection for the Client o Investment minimisation / maximisation for ASG Locked in long term revenue base enhanced ASG position moved from 1 st Mover to 1 st to Get it Right

15 Pipeline 15 WA $40m TOTAL $320m QLD $10m VIC $80m ACT $150m NSW $40m

16 Outlook and Guidance 16 FY15 H2 EBITDA stronger than H1 Contribution from new Managed Service entering delivery phase. Contract bid costs in H2 lower than H1 by approximately $0.5m Minimal Managed Service contract roll off impact Old World project business expected to remain flat FY16: Targeting strong EBITDA and EPS growth on FY15 Full year contribution from new Managed Services signed EBITDA margin 14% of revenue - revenue growth off a relatively fixed overhead base and offshore delivery cost base savings Contract bid costs expected to be consistent with FY15 Interest expense substantially lower than FY15 as per debt reduction plan Capital investment forecast at lower than 1 x D&A

17 Q&A