Transcript XXX Corporation

ASG Group Limited
FINANCIAL RESULTS
PRESENTATION - FY2006
Geoff Lewis
MD and CEO
Dean Langenbach
Chief Financial Officer
Agenda
• Corporate Overview
• Major Contracts
• Financial Performance
• Value Strategy
• Outlook
Corporate Overview
ASX code
ASZ
Shares on issue
113.9 million
Options on issue
18.6 million
Share price (8 September 06)
$0.73
12 month trading range
$0.48 – $0.79
Market capitalisation
$80 million
FY06 Dividend yield (FF)
4.6%
1400000
0.8
1200000
Weekly volume
0.7
Share price
0.6
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0.4
600000
0.3
400000
0.2
200000
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ASG Group
• National operations
• Strong geographical spread
• Strong Government and private sector
client base
• Experienced management team
• Proven business model
Operations
Provision of IT services to federal and state
government departments and major blue chip
companies
1. Selective Outsourcing – Infrastructure & Applications
2. Systems integration
3. Specialist technical services
4. Internet and e-commerce security
Major Contracts
FY2006 – Key Highlights
• EBITDA margin increase
• Strong cash generation
Revenue
45%
EBITDA
66%
Net Profit
99%
EPS
68%
Dividend
46%
• Balance sheet continues to
strengthen
• Reaping benefits of
infrastructure investment
• Strong new business
performance
• Positive outlook for FY07
Financial Performance
Profit growth as economies of scale kick in
Revenue
NPAT
70
6.0
60
5.0
50
4.0
40
$m 3.0
$m
30
2.0
20
1.0
10
0.0
0
FY04
FY04
FY05
FY06
FY05
FY06
Year on Year Comparison
FY05
FY06
% Increase
Revenue
$ 40.8m
$59.5m
45%
EBITDA
$ 4.3m
$7.2m
66%
Profit after tax
$ 2.6m
$5.2m
99%
Operating Cash
$ 2.7m
$4.6m
70%
EPS
2.8 cents
4.7 cents
68%
Dividend FF
2.2 cents
3.2 cents
45%
Cash Flow Overview
Cash balance @ 1 July 2005
Net operating cash
Share Issue proceeds
Investments
Debt Reduction
Dividend paid
Cash balance @ 30 June 2006
$3.5m
$4.6m
$1.2m
($2.7m)
($1.0m)
($2.5m)
$3.1m
Balance Sheet Strength
FY05
FY06
Cash
$3.5m
$3.1m
Net current assets
$4.6m
$5.9m
Gross debt
$3.7m
$2.6m
Net interest
$170k
$189k
EBITDA to interest cover
27x
38x
Gross debt to equity
14%
7%
Revenue Growth
ASG Historical
Annual Revenue
70
60
50
40
$m
30
20
10
0
FY03
FY04
FY05
FY06
• Cumulative revenue model:
- Predictable cash flows
- Operating rather than
capital budget
- Approx 70% of revenue
rolls forward
- Accumulating multi-year
contract book
• Established high quality
customer base
• Strong federal and state
government emphasis
Cumulative Revenue Model
Major slice of FY07 revenue locked in at
start of year/under long-term contracts
FY04
Existing Contracts
$24.4m
New Contracts
Projects
FY05
$40.8m
$59.3m
FY06
FY07
Revenue $m
Blue Chip Customer base
Strong diversity by sector and geography
Federal
Government
Corporate
31%
Clients
40%
State
Government
29%
National Footprint
Revenue $m
Staff Numbers
WA
$26.3
225
VIC
$12.7
65
ACT
$15.4
111
NSW
$5.1
51
Growth Strategy
• Leverage national presence and
growing track record to win more
major contracts
• Pursue acquisitions that meet criteria:
- Access to profitable client-base
- Consistent with ASG strategy
- EPS accretive
Market Advantage
• Market momentum and critical mass
• Established reference sites in government
and corporate sectors
• Strong, proven delivery capability
• Australian, vendor independent
• Resistant to economic cycles
Value Strategy
• Ability to significantly leverage existing
contract base to increase profitability
• Opportunity to close major new contracts
in the immediate future
• Advanced discussions on substantial
acquisition opportunities
• Cumulative revenue model
ASG Group Limited
FINANCIAL RESULTS
PRESENTATION - FY2006
Geoff Lewis
MD and CEO
Dean Langenbach
Chief Financial Officer