Title: FINANCIAL RESULTS
1ASG Group Limited
- FINANCIAL RESULTS
- PRESENTATION - FY2006
Geoff Lewis MD and CEO Dean Langenbach Chief
Financial Officer
2Agenda
- Corporate Overview
- Major Contracts
- Financial Performance
- Value Strategy
- Outlook
3Corporate 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
4ASG Group
- National operations
- Strong geographical spread
- Strong Government and private sector client base
- Experienced management team
- Proven business model
5Operations
- 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
6Major Contracts
7FY2006 Key Highlights
- EBITDA margin increase
- Strong cash generation
- Balance sheet continues to strengthen
- Reaping benefits of infrastructure investment
- Strong new business performance
- Positive outlook for FY07
Revenue 45
EBITDA 66
Net Profit 99
EPS 68
Dividend 46
8Financial Performance
Profit growth as economies of scale kick in
9Year 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
10Cash Flow Overview
Cash balance _at_ 1 July 2005 3.5m Net
operating cash 4.6m Share Issue proceeds
1.2m Investments (2.7m) Debt
Reduction (1.0m) Dividend paid
(2.5m) Cash balance _at_ 30 June 2006
3.1m
11Balance 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
12Revenue Growth
- 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
13Cumulative Revenue Model
Major slice of FY07 revenue locked in at start of
year/under long-term contracts
24.4m
40.8m
59.3m
Revenue m
14Blue Chip Customer base
Strong diversity by sector and geography
Federal Government 31
Corporate Clients 40
State Government 29
15National Footprint
Revenue m Staff Numbers
WA 26.3 225
VIC 12.7 65
ACT 15.4 111
NSW 5.1 51
16Growth 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
17Market 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
18Value 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
19ASG Group Limited
- FINANCIAL RESULTS
- PRESENTATION - FY2006
Geoff Lewis MD and CEO Dean Langenbach Chief
Financial Officer