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Investor Presentation:
Six months to 31 December 2009
DWS Advanced Business
Solutions Ltd
Results Released:
15 February 2010
Danny Wallis
Lachlan Armstrong
DWS Investor Presentation
Chief Executive Officer
Chief Financial Officer
Proven model > Spirited culture > Sustainable performance
H1 2010 Highlights
Strong H1 results in a continued uncertain environment
Record H1 Performance
• H1 revenue up 10%
• H1 EBITDA up 28%
• Growth in consulting staff numbers
Financial strength
• Strong balance sheet with zero debt
• Solid dividend return
• Cautious optimism about H2
Operating Highlights for H1 2010
• Completion of acquisition of Graeme V Jones & Associates
• Continued growth in both Brisbane and Adelaide
• Return to growth of Sydney operations
• Strong H1 result in Melbourne
DWS Investor Presentation
Proven model > Spirited culture > Sustainable performance
Strong H1 Operating Results
Record financial results
Increased
revenue
H1 2010
$’000
H1 2009
$’000
% Increase
Revenue from
continuing operations
48,122
43,657
10%
EBITDA
13,403
10,467
28%
28%
24%
Margin
Earnings
EPS
Dividend per share
(fully franked)
DWS Investor Presentation
9,254
7,224
28%
7.0 cents
5.48 cents
28%
5.0 cents
3.5 cents
Proven model > Spirited culture > Sustainable performance
43%
Record H1
EBITDA
Improved
margin
performance
Solid return
for investors
Strong H1 Operating Results
Continued growth in operating revenues
$100
$90
$80
$70
Revenue ($M)
$60
$50
$40
$30
$20
$10
$2007
DWS Investor Presentation
2008
2009
Proven model > Spirited culture > Sustainable performance
2010
Strong H1 Operating Results
Improved EBITDA performance
$30
$25
EBITDA ($M)
$20
$15
$10
$5
$-
2007
DWS Investor Presentation
2008
2009
Proven model > Spirited culture > Sustainable performance
2010
Strong H1 Operating Results
Maintaining a Strong Balance Sheet
Cash
Debtors
Dec 2009
$’000
June 2009
$’000
10,987
12,155
15,668
18,330
4,951
1,191
Total Assets
61,687
61,590
Borrowings
Nil
Nil
WIP
Total Liabilities
Net Assets
NTA per share
DWS Investor Presentation
8,275
9,660
53,412
51,930
20.44 cents
20.31 cents
Proven model > Spirited culture > Sustainable performance
Record H1
Revenue
Increased
revenue
Strong
delivery
pipeline
Zero debt
Continued
growth in
Net Assets
Strong H1 Operating Results
Strong cash flow
Dec 2009
$’000
Dec 2008
$’000
Opening cash balance
12,155
7,570
Cash flow from operations
12,928
12,347
Tax Paid
(5,377)
(4,200)
Capital Asset Purchases
(137)
(128)
Acquisition Costs
(800)
(432)
(7,929)
(7,316)
-
(1,325)
147
203
10,987
6,719
Dividends Paid
Share Buy Back
Interest Income & Other
Closing Cash balance
DWS Investor Presentation
Proven model > Spirited culture > Sustainable performance
Continued
growth in free
cash generation
GVJ Acquisition
Strong dividend
return
Strong H1 Operating Results
STAFF
31 Dec 09
30 Jun 09
497
488
Consulting staff
Total chargeable
Office staff
Management
11
10
BD/Sales
12
15
23
5
20
0
51
45
548
533
Other
–
DWS
GVJ
Total office
GRAND TOTAL
DWS Investor Presentation
Proven model > Spirited culture > Sustainable performance
Strong H1 Operating Results
Interim Dividend – consistent return for shareholders
Interim Dividend
Record Date
15 March 2010
Expected Payment Date
DWS Investor Presentation
$0.05 per ordinary share
6 April 2010
Proven model > Spirited culture > Sustainable performance
Stronger Internal Operations
• Additional back – office capacity created
• Management succession plan
• Improved IT platform and network
DWS Investor Presentation
Proven model > Spirited culture > Sustainable performance
Sustainable Growth
Revenue by Sector - Sustainable growth
H1 2010
DWS Investor Presentation
Proven model > Spirited culture > Sustainable performance
FY 2009
Graeme V Jones &
Associates
Acquisition
• Aligns to strategy of opportunistically acquiring
underperforming businesses where there is a strategic fit
• Major focus in SAP & PeopleSoft space
• Discard unwanted components and provide
strategic input and support from DWS
• Complementary base of clients in both
government and corporate sectors
• Strong cross selling opportunities
• Will be earnings accretive in 2011 and beyond
DWS Investor Presentation
Proven model > Spirited culture > Sustainable performance
Acquisitions
• Opportunistically acquire underperforming businesses
• Also look to make other acquisitions
• Geographic expansion
• Technology fit
• Complementary client base
DWS Investor Presentation
Proven model > Spirited culture > Sustainable performance
H2 2010 Outlook
DWS looks forward to continued success for H2 2010
• Cautiously optimistic about H2 2010
• While overall economy is showing signs of improvement we are
hesitant to suggest that the business environment has fully
recovered and there are still some concerns for H2 2010
• Caution on unrealistic expectations and predictions based solely
on H1 results
• DWS is in the very strong position of being able to fully maximise
all opportunities that may present themselves in the future
DWS Investor Presentation
Proven model > Spirited culture > Sustainable performance